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Agenda item

Publica Transition Plan - Phase 2

Purpose

To consider the document Publica Transition: A Plan for Phase 2 of Council Services (“Phase 2 Transition Plan”), to note its contents and to approve the recommendations therein.

 

Recommendations

That Council resolves to:

  1. Approve the implementation of Phase 2 of the Publica Transition on the basis of the Phase 2 Transition Plan;
  2. Delegate to the Chief Executive in consultation with the Leader of the Council the decision to deal with any final detail matters arising from the Phase 2 Transition Plan;
  3. Delegate authority to the Director of Governance in liaison with the Leader to update the constitution by making any consequential changes required as a result of Phase 2 of the Publica Transition.
  4. Carry out a budget re-basing for the 2026/7 financial year so that the funding provided to Publica is proportionate to the services received.

 

Minutes:

Purpose

The purpose of the report was to consider the document ‘Publica Transition: A Plan for Phase 2 of Council Services’, known as Phase 2 Transition Plan, to note its contents and to approve the recommendations therein.

 

Councillor Harris, Leader of the Council, introduced the report, summarised its key points, and explained the purpose of the transition: to create leaner, more efficient services and improve staff management for better services to residents. He acknowledged the challenges of Phase 1 but stated that the transition had been well managed by the senior management team. Phase 2 was noted as being another step on the journey.

 

The Chief Executive then spoke to the detailed Phase 2 transition plan. Key lessons from Phase 1 had helped refine the approach, including insights from a staff engagement survey. Feedback from the 75 transferred staff was largely positive.

 

Phase 2 was expected to be more complex due to fragmented roles requiring careful restructuring. It was noted that HR would lead the transition process, ensuring smooth staff engagement.

 

The Phase 2 transition prioritised high-spend and politically significant service areas, including:

  • property and estates
  • waste and recycling
  • leisure contract management, and
  • project management.

The report presented outline costs and processes, mirroring the approach taken in Phase 1, with Phase 2 focused on improving service delivery and securing council autonomy.

 

The resolution was formally moved and opened for questions.

 

Straight Through Processing (STP) was clarified as referring to a streamlined approach to enabling decisions and actions to be executed directly without requiring multiple levels of approval or intervention from external entities. In the context of Phase 2, STP would allow direct execution of decisions, removing external approvals, reducing delays, and ensuring Council autonomy. 

 

The notion of a ‘local employee’ was also clarified. It was noted that this terminology referred to staff who lived within or near the Council’s jurisdiction. This approach aligned with Council priorities, strengthened community ties, and supported sustainability by reducing commutes.

 

Councillor Evemy seconded the report and reserved the right to speak.

 

The Chair then moved to the debate on the resolution.

 

Members of the Conservative Group raised concerns about the transition process, predicting that both costs and risks would escalate. They acknowledged the potential benefits of bringing some services back in-house but urged that these benefits be weighed against the financial impact and the risks of the process, which would ultimately fall on taxpayers.

They urged a pause in the process for risk assessment and cost estimation. They noted that the Phase 1 transition cost had significantly exceeded estimates, with the additional costs for delivering services outside of Publica projected to be £750,000 per year, five times the original estimate in the Human Engine report. The additional costs of Phase 2 were deemed unjustifiable, due to ongoing Phase 1 issues.

It was noted that there was a sense that Phase 1 had been rushed and had lacked a detailed business case and proper due diligence.

It was mooted that the main goals of the Phase 1 transition had not been fully achieved, with recruitment and staff retention issues remaining unresolved. 

 

Members of the Liberal Democrat Group noted the importance of having a skilled team, especially for planning and compliance and it was noted that the transition had allowed for better recruitment and better focus on building competent teams.

 

It was noted that some key positions, which had stayed vacant for months, were now filled. Staff turnover remained largely unchanged. It was noted that the impending local government reorganisation and devolution would also have an effect on recruitment and retention.

 

Members of the Conservative Group stated that they saw the transition as the single biggest threat to the Council’s ability to deliver a balanced budget over the coming years.

 

Councillor Evemy rose to second the resolutions and noted that the decision was an important one. Members were reminded that the administration had been in place for six years and had initially worked with Publica for four years to make the structure function, although failures were acknowledged.

The Publica model, intended as a cost-saving measure, had not succeeded.

At this point a significant disparity in pension contributions was noted, with employer contributions of 20% under the LGPS versus 5% in Publica’s scheme.

 

Phase 1 had yielded positive outcomes, particularly in planning, where officer recruitment improved efficiency and reduced reliance on costly agency staff. Councillor Evemy emphasised that reintegrating staff aligned with the corporate plan and addressed financial constraints. The transition, including redundancy and associated costs, amounted to £1.1 million, already budgeted.

 

Councillor Evemy rejected claims that the Publica transition posed the greatest financial threat, instead pointing to the potential loss of millions in government grants, which had been factored into the February budget.

Acknowledging the difficulty of the Phase 2 decision, members deemed it necessary to bring services like property, estates, waste, and leisure back in-house for better asset management and service delivery. The waste service alone cost nearly £9 million annually, and direct management was expected to improve control and savings. The transition had been carefully considered, and appreciation was expressed to the Overview and Scrutiny Committee for their contributions.

Councillor Evemy urged colleagues to support Publica transition Phase 2.

 

Councillor Stowe responded and challenged the Phase 2 figures stated, citing budget papers proposed in February. It was suggested that the transition costs had already exceeded £2 million, with transition costs having reached £1.1 million, and a further £750,000 in annual recurring costs. An explanation of the costs was requested.

 

The Chair invited Councillor Joe Harris to sum up. Councillor Harris dismissed opposition criticism as unconstructive. It was emphasised that Publica had failed to deliver savings or provide transparency, making budget planning difficult. With partner councils already moving forward, reversing course was no longer an option. Bringing services in-house was deemed to be essential for financial control, better service delivery, and value for taxpayers. Councillor Harris urged support for the transition and cautioned that abandoning the transition would be a costly mistake.

 

The Chair then moved to the vote on the Phase 2 transition report recommendations, proposed by Councillor Joe Harris and seconded by Councillor Mike Evemy.

 

Voting Record:

For 20 , Against 9 , Abstention 0.

Supporting documents:

 

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