Agenda item

To consider a report by the Managing Director setting out progress with the development of a shared services programme with South Cambridgeshire District Council.

(Councillor J D Ablewhite, Executive Leader, was in attendance for this item).

(At 6.30pm Councillor P G Mitchell took his seat at the meeting during the discussion on this item).

By way of a report by the Managing Director (a copy of which is appended in the Minute Book), the Panel gave consideration to the development of a strategic shared services partnership with South Cambridgeshire District Council. As part of the proposal, the Council would continue to work with Cambridge City Council and other appropriate partners where the opportunity existed.

The Executive Leader reminded Members that the Council had significant budget challenges to meet and reductions in Government grant were likely to continue well beyond the next General Election. In the long term it was the Cabinet’s aspiration for the Authority to become self-financing and whilst the Council had already begun to make good progress on delivering efficiencies, it was imperative that it continued to take all opportunities to minimise costs whilst protecting and enhancing services.

Members were advised that the report signalled the first stage of the establishment of a strategic agreement with South Cambridgeshire District Council, an authority which was similar in terms of size, priorities, challenges and political ambition. The Executive Leader emphasised that there was no intention to dilute the sovereign identity of Huntingdonshire which would remain a District Council in its own right and that the proposal did not preclude the Authority from working with other authorities should the opportunity emerge.

In considering the contents of the report, the Panel sought clarification as to the extent and scope of the proposals, the impact on the Council’s working practices and on employees and the arrangements for managing and monitoring risk connected with the partnership’s activities. In response, Members were informed that there would inevitably be changes to working practices and that in due course there also would be changes to the ways in which the Authority was structured. In terms of risk, the day to day arrangements would be overseen by a working group comprising the Head of Paid Service and Section 151 Officer of the partner authorities. Specific risks would also be addressed in outline business cases as and when they were brought forward.

In response to a suggestion by a Member that opportunities for joint working in relation to the collection of refuse should be investigated, the Panel was reminded that the RECAP partnership was looking at such collaborative arrangements and that developments between South Cambridgeshire and Cambridge City Council might be used as a platform which could be developed by the District Council at the appropriate time. However, in the first instance it was intended to concentrate on back office services.

Following an expression of concern that the Council might lose control of its services as it diversified and entered into a number of partnership arrangements, the Executive Leader reiterated that the development of a shared services approach had no bearing on the sovereignty of services which would remain under the control of the District Council. The Council was reliant upon Government grants and to continue with the current approach to delivering services was no longer viable and was considered to be riskier than the proposed arrangements.

The Panel discussed with the Executive Leader and the Managing Director how democratic control of the strategic partnership would be exercised, the reasons for deciding not to pursue an agreement with Local Government Shared Services for the provision of Legal and IT Services, the geography of potential partners, the use of any surplus funds if the Council were to succeed in its objective to come more commercial and the arrangements to terminate the partnership should this be necessary. Members were reminded that this was the first stage of the process and there would be an opportunity for them to have further involvement as the partnership developed.

In response to Members’ concerns regarding the perceived challenges associated with recruiting and retaining staff in the current environment, the Panel was informed that all employment sectors were facing similar issues. Moreover, the Council had not seen a significant increase in staff turnover and the calibre of candidates who had recently been interviewed for the new Head of Service roles had been extremely high. It was further reported that sickness levels within the Authority were now below the public sector average and it was envisaged that a shared approach to service delivery would improve staffing resilience. With regard to the outcome of a pay review, South Cambridgeshire District Council was experiencing similar issues.

RESOLVED

that the recommendations to the Cabinet, as set out in the report now submitted, be endorsed.