Agenda item

(a)  That the Direction dated 7.10.2014 from the Secretary of State for Education directing the Council to set up an external provider to deliver the Council’s Children’s’ Services functions be noted;

(b)  That the Memorandum of Understanding between the Secretary of State and the Council be approved;

(c)  That the Chief Executive be authorised to make any necessary textual and other amendments following consultation with the Leader of the Council and Cabinet member and to sign the Memorandum of Understanding attached at Appendix A;

(d)  That regular updates on the progress on the externalisation of the Council’s Children’s Services functions be provided to the Cabinet.

The Commissioner for Education & Children introduced a report seeking authority to enter into a Memorandum of Understanding (MOU) with the Secretary of State for Education to enable the externalisation of some of the Council’s Children’s Services functions to a new organisation.

It was noted that the MOU was not a legally binding agreement, however, it set out what both parties were committed to undertake and the key principles for the establishment of the new organisation such as the timetabling and governance arrangements.  The alternative options available to both the Secretary of State and to the Council were noted, and remained available should the programme of work detailed in the MOU not reach a satisfactory conclusion.  A number of key issues were yet to be resolved including the specific legal form of the new organisation and the scope of services to be externalised.  The ambition was for the new organisation to achieve an Ofsted rating of ‘good’ within three years of establishment and ‘excellent’ within five.

(Councillor Sharif joined the meeting)

The Cabinet considered the risks, which included financial risks to the Council and the potential impact on the achievement of ongoing service improvements during the lengthy set up period for the new organisation.  There were significant anticipated financial costs in externalising the services and the Council were expected to fund the new organisation to a similar level as the current service.  The Secretary of State had confirmed that the Department would offset the set up and additional costs, and Officers stated that the Council would act rigorously and fairly to secure this outcome.  The Cabinet agreed the importance of ensuring the new organisation was aligned to the Council’s budget processes and that a robust approach be taken in relation to these potential additional costs.

After due consideration, Commissioners approved the MOU, delegating authority to the Chief Executive to make textual amendments and sign as appropriate.  It was also confirmed that further updates would be brought to Cabinet at each key step to ensure accountability and scrutiny during the externalisation process.

Resolved –

(a)  That the Direction dated 7.10.2014 from the Secretary of State for Education directing the Council to set up an external provider to deliver the Council’s Children’s Services functions be noted;

(b)  That the Memorandum of Understanding between the Secretary of State and the Council be approved;

(c)  That the Chief Executive be authorised to make any necessary textual and other amendments following consultation with the Leader of the Council and Cabinet member and to sign the Memorandum of Understanding as attached at Appendix A to the report;

(d)  That regular updates on the progress on the externalisation of the Council’s Children’s Services functions be provided to the Cabinet.

(Councillor Munawar joined the meeting)