Agenda item

Publica Review Report

Purpose

To consider the Human Engine report and recommendations.

Recommendations

That Full Council resolves 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. Instruct the Chief Executive to oversee 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.

Minutes:

The purpose of the report was to consider the Human Engine Consultants report and to approve the recommendations therein.

The Chair then asked those Publica officers who felt that they should leave the room to do so before Members discussed the item.

The Leader introduced the report and outlined the following points:

· It was highlighted that this report has been seen by Cabinet, an private all-member briefing, a Special Meeting of the Overview and Scrutiny Committee meeting.

· It was highlighted that in 2017, Publica as a company was set up by Cotswold District Council alongside Cheltenham Borough Council, West Oxfordshire District Council and the Forest of Dean District Council to share services and staff.

· It was outlined that savings were made with staff rationalisation, and future pension liabilities regarding the Local Government Pension Scheme (LGPS).

· It was highlighted that a Peer Review was undertaken in 2022 and provided recommendations regarding how the problems identified with the Publica service delivery model.

· It was highlighted that following the commissioning of a review conducted by Human Engine, it was recommended that the majority of services should be returned to the Council.

· It was outlined that the present structure made changes to services difficult because of the shared ownership model and the governance structures within Publica.

· The financial challenges for the Council were highlighted as a point to re-think how to deliver services efficiently and with less resources.

· It was outlined that that the concerns of the Overview and Scrutiny Committee around the detail of the transition plan, whilst not fully detailed at this point, would be finalised in due course. It was also noted that the Overview and Scrutiny Committee would be involved in the process.

· The Leader made it clear that the welfare of staff needed to be at the forefront of the work, and also stated that the proposal was not a commentary on the performance of staff. However, it was felt that the staff were being let down by the structures of Publica.

Councillor Blomefield then proposed the Overview and Scrutiny recommendations outlined in the supplementary document pack.

Recommend to Council that recommendation 1 in the report is amended to read:

‘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), subject to the completion of due diligence and the

agreement of the detailed transition plan’.

Councillor Blomefield then made it clear that the proposal did come with some risks, and would need a thorough and proper process for implementation.

Councillor Slater in seconding the amendment noted that the costs could be substantial and that a checkpoint in the transition processed was required in order to ensure it was not a blank cheque.

There were comments made regarding how this review was likely as the contracts for services were due to expire in 2024.

There was a question in regards to how coordinated the process was with the other councils in respect of decisions made. The Leader explained that the Council was sovereign over its own decisions, although the shared model would mean that the decisions of other councils would need to be accounted for. It was affirmed that the majority of the partners involved comfortable with the overall direction proposed.

There were comments made around the level detail within the Human Engine report, and how any swift reaction could have significant implications.

Councillor Evemy in seconding the original motion made the following points:

· It was explained that the period was uncertain for all staff involved and any delay as proposed may exacerbate this point.

· It was noted that the decisions being taken in the public sector were different to that of the private sector and would need to open and transparent as a local authority.

· It was outlined that the financial implications are being examined, but that the notion of a blank cheque was incorrect.

· It was noted that no other council operates or has bought into a shared service model like Publica for the majority of services.

· It was outlined that the savings proposed of £2 million over 3 years by Publica across all of the partners would be needed but would not be sufficient.

It was noted by a number of Members that there would be a degree of uncertainty with this process, but it was felt by some Members that this change would be for the benefit of the Council.

Councillor Judd wished to ask on the record the terms which Human Engine have been employed upon and if there were any guarantees given to use them for the next stages as this would affect the decision on this item. The Chief Executive confirmed that any transition process decisions would be for the partner councils to decide, and there was no undertaking given for Human Engine to be employed. Councillor Judd also wished to note for the record that any future employment of Human Engine for work would need to be examined carefully for any conflict of interests.

It was noted by some Members against the amendment that the decision needed to be taken sooner to provide certainty against a difficult financial situation.

There were comments made that the recommendations without the amendment would commit the Council to the process without a firm commitment to oversight by the Overview and Scrutiny Committee.

It was highlighted that the process for transitioning services would be complex and would require careful management with the expertise of officers.

Councillor Joe Harris as the Cabinet Member with the right to reply made the following points;

· That the Overview and Scrutiny Committee is recognised as an important part of the process, and had a through debate during its Special Meeting on 16 November 2023. However, it was noted that there was a difference of opinion at the meeting.

· It was recognised that the process would take time but that the information would become clear when the transition work is commenced as this decisions relates to individual circumstances.

· It was outlined that the recommendations from the Overview and Scrutiny Committee of a delay to the decision could cause uncertainty for those affected.

The amendment proposed by Councillor Blomefield and seconded by Councillor Slater was then put to a vote.

Voting Record

11 For, 17 Against, 2 Abstentions, 3 Absent/Did Not Vote

For	Against	Abstention	Absent/Did not vote
Chris Twells	Claire Bloomer	Angus Jenkinson	Helene Mansilla
Daryl Corps	Dilys Neill	Clare Turner	Andrew Maclean
David Cunningham	Gary Selwyn		Ray Brassington
David Fowles	Ian Watson
Gina Blomefield	Joe Harris
Jeremy Theyer	Jon Wareing
Julia Judd	Juliet Layton
Len Wilkins	Lisa Spivey
Nikki Ind	Mark Harris
Tom Stowe	Michael Vann
Tony Slater	Mike Evemy
	Mike McKeown
	Nigel Robbins
	Patrick Coleman
	Paul Hodgkinson
	Roly Hughes
	Tony Dale

*As there was a vacancy in the Lechlade, Kempsford and Fairford South Ward, the total number of Councillors was 33.

The amendment to the motion had therefore fallen and the Chair then returned the debate to the original motion.

It was noted by some Members present during Publica’s creation that staff levels had been reduced at that time, and there were concerns with the governance arrangements.

It was highlighted that there was an opportunity in returning staff to Council direct employment to recognise the hard work of staff and to explore improvements to the workplace environment and moral.

There was a question to the Chief Executive around the proposals and the view that there was no opportunity to change direction if new facts emerged. It was also asked if it could be confirmed that the Overview and Scrutiny Committee and Full Council would be consulted at strategic points. The Chief Executive confirmed a commitment to work with Members of all parties, and that the Overview and Scrutiny Committee would be involved in this process. It was outlined that this was an important process and needed to be right.

It was noted that transition support would be needed across the partner councils with a total cost of £236,000 and the individual share to the Council would be £78,000 over an 18 month period.

It was noted that the Financial Performance Reports on a quarterly basis would be an important opportunity for monitoring the implications of the process.

There was a question around the share of the costs of the transition support arrangements across all four Publica partner councils. Councillor Evemy noted that Cheltenham Borough Council only had a few select services within the Publica partnership and was not undergoing as transformative a change as the other three partner councils. The Chief Executive noted that Cheltenham Borough Council would be supporting the transition arrangements such as Legal and HR support, but the other transitions are not relevant to their councils and they were not bearing these costs.

It was noted by Members that the focus should be on providing the best services to residents.

RESOLVED: That Full Council:

1. APPROVED 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. AGREED to instruct the Chief Executive to oversee the creation of a detailed

transition plan for subsequent agreement by Cabinet and Council

3. ENDORSED 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

24 For, 4 Against, 3 Abstentions, 2 Absent/Did Not Vote

For	Against	Abstention	Absent/Did not vote
Angus Jenkinson	David Cunningham	David Fowles	Helene Mansilla
Chris Twells	Julia Judd	Jeremy Theyer	Andrew Maclean
Claire Bloomer	Len Wilkins	Tom Stowe
Clare Turner	Tony Slater
Daryl Corps
Dilys Neill
Gary Selwyn
Gina Blomefield
Ian Watson
Joe Harris
Jon Wareing
Juliet Layton
Lisa Spivey
Mark Harris
Michael Vann
Mike Evemy
Mike McKeown
Nigel Robbins
Nikki Ind
Patrick Coleman
Paul Hodgkinson
Ray Brassington
Roly Hughes
Tony Dale

*As there was a vacancy in the Lechlade, Kempsford and Fairford South Ward, the total number of Councillors was 33

Following the vote, a short break in proceedings was taken.

Supporting documents:

Agenda item

Publica Review Report

Related Pages