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Agenda item

Publica Review

Purpose

To consider the Human Engine Consultants report and to approve the recommendations therein.

 

Recommendations

That Cabinet resolves to:

Recommend to Full Council to:

1.    Approve the recommendations set out in the Human Engine report (that the majority of services are returned to the Council as per the detail provided on page 12 of the Human Engine report)

2.    That the Chief Executive oversees the creation of a detailed transition plan for subsequent agreement by Cabinet and Council.

3.    Endorses the approach to the further due diligence outlined in the financial implications of the report including analysis of the detailed payroll data required, which will be essential to calculate the short and long-term costs associated with the recommendations set out in the Human Engine report.

Minutes:

The Chair notified Members that this item would be taken first, and then asked Publica officers who felt that they should leave the room to do so.

 

The purpose of the report was to present the recommendations from the consultants Human Engine.

 

The Leader, who had joined the meeting remotely, was invited to introduce the report.

 

The Leader renewed his apologies to Members for not being able to be present in person due to participation in a peer review exercise at South Cambridgeshire District Council.

 

The Leader outlined the report and presented the following points;

 

  • Cotswold District Council in 2017 set up the teckal company Publica Group Ltd along with Cheltenham Borough Council, Forest of Dean District Council and West Oxfordshire District Council to create a cost-effective model for providing day-to-day services.
  • It was noted that the majority of staff in 2017 were transferred to Publica, with the savings achieved through the rationalising of staff structures and not enrolling new employees into the Local Government Pension Scheme.
  • It was outlined that the model had mostly achieved the savings it was designed for, but it was noted that the new administrations in the partner councils since its creation, and other challenges such as Covid-19 had presented pressures for the Publica model.
  • It was also noted that the Peer Review conducted in 2022 had highlighted challenges such as governance and staff identity between the Council’s and Publica as the service delivery company.
  • Following the Peer Review Action Plan agreed in January 2023, it was outlined that the consultancy firm Human Engine had been commissioned by the partner councils to look at the appropriateness of future services remaining within Publica.
  • It was highlighted that the review undertaken had concluded that only repatriating select services would not address the challenges outlined. It was highlighted the recommendation from Human Engine was to return the majority of services to the Council, and to keep a few select services within the Publica partnership.
  • The Leader noted that the recommendation from the report would require some upfront costs in the short-term as outlined within section 5.3 of Annex B. However, it was noted that the saving from reducing senior management costs, and Publica contract costs would mitigate these challenges.
  • It was highlighted that that the decision was a major change for the Council, but that it was felt to be the best for residents.

 

It was noted that the Leader was not allowed to vote on the recommendations due to participating virtually.

 

The Chief Executive was then invited to provide any further comments. The following points were outlined:

 

  • The transition plan was noted as being very important, and would be considered by Cabinet and Council in early 2024. 
  • It was noted that there was a need to work closely with Publica management to provide support to staff who may be nervous about the transition.
  • It was noted that the transition plan would be outlined as soon as possible, providing the recommendations were agreed by all the partner councils. 

 

It was noted that a Special Overview and Scrutiny Committee meeting was provisionally scheduled to take place before Full Council considers the recommendation.

 

The Cabinet wished to thank officers for their work in delivering the report, and to providing the support to staff. The Chair noted the work of staff in going above and beyond to meet the needs of the Council and provide essential services.

 

Councillor Spivey proposed the recommendations, and Councillor Hodgkinson seconded.

 

RESOLVED: That Cabinet

 

AGREED to recommend to Full Council to:

1. APPROVE the recommendations set out in the Human Engine report (that the majority of services are returned to the Council as per the detail provided on page 12 of the Human Engine report);

2. AGREE That the Chief Executive oversees the creation of a detailed transition plan for subsequent agreement by Cabinet and Council;

3. ENDORSE the approach to the further due diligence outlined in the financial implications of the report including analysis of the detailed payroll data required, which will be essential to calculate the short and long-term costs associated with the recommendations set out in the Human Engine report.

 

*Voting Record

 

5 For, 0 Against, 0 Abstentions, 3 Absent

 

*For technical reasons, the vote was taken by a show of hands.

 

 

 

Supporting documents:

 

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