Agenda item

To consider an update from officers on the progress of the LGR Programme.

Note: The Shadow Executive report on this item will be published on 7 January 2019 at the following address: https://moderngov.bcpshadowauthority.com/ieListMeetings.aspx?CId=138&Year=0

The LGR Programme Director introduced the report which provided the Committee with an update on activities within the programme undertaken in the last period. He confirmed that the programme remained consistent with the plan previously agreed by the BCP Joint Committee. The governance structures in place were functioning well with constructive input from elected Members through the Phase 2 Delivery Boards, Task and Finish Groups, and Shadow Overview and Scrutiny (O&S) arrangements.

The LGR Programme Director outlined the progress of individual Task and Finish Groups, as set out in paragraphs 6 – 10 of the report. He also referred to the quarterly Budget Monitoring Statement appended to the report which indicated that the programme remained within budget. It was noted that there were no risks or issues to be escalated at this time.

Officers in attendance responded to questions and comments from Members regarding the following matters arising from the report:

• It had been agreed to reschedule the report on the proposed BCP Constitution to allow sufficient time to consider additional feedback and prepare a final draft version for submission to the Shadow O&S Committee and Shadow Executive Committee in February, prior to adoption by the Shadow Authority.
• It was confirmed that the Civic Functions Task and Finish Group was considering mayoral arrangements and protocols for all three areas of Bournemouth, Christchurch and  Poole. There would be an opportunity to consult with Members on the discretionary aspects of future arrangements before the next report to the Shadow Executive Committee in March.
• A Member referred to the budget monitoring position and asked if there were risks associated with the apparent underspend of £405,920 for infrastructure investment for ICT. The LGR Programme Director explained that although there was an element of this work which had to be done by 31 March 2019, the original project timetable, including Phase 2, extended to September 2019. There had never been an intention or commitment to complete all elements in time for April 2019. The actual spend would be drawn down over the next three months as suppliers completed the work which was required before April, and this would appear on the next budget monitoring statement. The Committee was assured that supplier relationships were in place and progressing in accordance with the project plan.
• A Member asked if the £1.5 million figure for redundancy and restructure costs was likely to be over or under assessed. The LGR Programme Director explained that this was the provisional allocation of costs until 31 March 2019 in the budget agreed by the Shadow Executive in October 2018. This was anticipated to cover costs for the initial senior tiers of the organisation. It was not possible to provide a definitive figure for the final cost of restructuring across all levels of the organisation, but it was likely to be more than the provisional figure of £1.5million. This had been highlighted as part of the original business case for LGR.
• A Member asked about the process for recharging redundancy and restructure costs to preceding authorities. The LGR Programme Director explained that the apportionment figures shown in the budget monitoring statement had been agreed by the Section 151 Officers of the preceding authorities. Every effort had been made to ensure the apportionments were equitable, consensual and clear. The percentages for Christchurch and Dorset were significantly lower than those for Bournemouth and Poole.
• It was noted that there were generic redundancy requirements which applied across local government. Each preceding authority also had its own redundancy policy which it was required to follow rigorously and fairly.
• The LGR Programme Director reminded the Committee that Phase 2 extended to the end of September 2019. Redundancy and restructuring costs as a whole up until September 2019 were included in the Financial Strategy as part of the Medium Term Financial Plan (MTPF). The MTFP was updated regularly and reported to the Shadow O&S and Executive Committees. It was understood that where redundancies as a result of restructure were committed prior to 31 March 2019 the costs would be borne by preceding authorities. The £1.5 million was intended to be set aside against an initial assessment of redundancy costs incurred by BCP after 1 April 2019. The Committee was assured that the process was open and transparent, and would be reported as part of the budget.

Officers also provided clarity on two issues raised by Committee Members in advance of the meeting:

• Human Resources spend as shown on the budget monitoring statement:-

The LGR Programme Director explained that there was a £14,000 overspend against the original estimate budgeted for the Chief Executive recruitment. This included higher than anticipated costs for advertising and external support. A more detailed breakdown of costs could be provided to the Committee if required. He confirmed that there was no actual overspend in the Assessment and Recruitment for Tier 2 posts. A higher amount had been reported in the relevant decision record, this had been made in error and had been subsequently corrected. The actual estimate for the Tier 2 appointment process reflected the fact that one of these posts, the director of children’s services, was subject to external recruitment and there were certain costs associated with this.

• Interim arrangements for planning decision making:-

The Interim Monitoring Officer confirmed that the BCP Constitution included a provision for interim arrangements from 1 April 2019 until the appointment of a new committee structure in May 2019. This would enable the three existing planning committees and other regulatory bodies to make decisions during this period if required. Arrangements were being made for additional meetings to take place before the end of March to reduce the need for this provision where possible.

With the Chair’s agreement a Member referred to the recommendation from the Tricuro Executive Shareholder Group which had been circulated with the papers for the Shadow Executive Committee on 15 January. He wished to raise a concern about the potential risks this may have in relation to social care provision and asked whether it should be included on the Committee’s Forward Plan. Members acknowledged that Tricuro was a potential area for scrutiny and discussed how best to facilitate this. It was agreed to include Tricuro as part of a ‘long list’ of items which the Committee was developing, to refer to the new BCP Council’s overview and scrutiny process for consideration. The O&S Specialist confirmed that this list could form part of a wider Scrutiny Headlines report which was on the Committee’s Forward Plan for March.

Graham Farrant, Chief Executive of the new BCP Council, gave a summary of his initial views on the LGR programme. He reported that programme management was strong, with clear purpose and intent. The decision making process was clear and responsibilities were well understood. Elected Members were strongly involved and were able to provide good direction and political leadership through a range of mechanisms. Members were working well together with examples of collaboration across the three preceding authorities. Budget preparation was well advanced. Risks had been assessed and where identified mitigated. Overall the programme was well structured and was making good progress especially given the tight timescales within which  it was operating. There was clearly still work to be done, particularly in ensuring ‘business as usual’ from Day One, but he was confident that this was embedded in the programme.

DECISION MADE:

a.       That the updates provided on the Local Government Reorganisation Programme be noted;

b.       That the Shadow Executive be advised that Tricuro will be included on the emerging ‘long list’ of items which the Committee will be referring to the new BCP Council’s overview and scrutiny arrangements as an area for potential scrutiny.