Agenda item

(Report by the Joint Strategic Officers)

Councillor Nigel Welton presented a report, which set out the case for the creation of a strategic alliance between Boston Borough Council and East Lindsey district Council, including the sharing of statutory officers, the Chief Executive, Monitoring Officer and Section 151 Officer, and set out the substantial benefits that would accrue from an alliance.

 

Each council would retain its distinct and special identity, decision-making powers and accountability.  The talent and experience of each authority’s officers would be combined to build capacity and deploy resources necessary to transform service quality across the board.

 

The goal was to deliver better outcomes for local people at a significantly lower cost than that which could be achieved if the authorities were to continue to operate separately.  Joint working on the planning and delivery of services would also mitigate pressure on the Council’s budgets and command greater influence in the allocation of resources from Central Government, the Lincolnshire Enterprise Partnership and others.

 

Joint working would also give the councils a stronger voice in any process to reshape local government in Lincolnshire, promoting a common agenda with a single voice. They would gain experience of managing strategic change quickly and effectively and there could also be a longer term possibility for the strategic alliance to grow in numbers, giving rise to promote a significant part of Lincolnshire, should the future bring consideration of alternative structures.

 

Both councils had a relatively small officer corps with limited revenue and capital resources to tackle the multitude of challenges each faced.  The financial pressures facing local government were significant, with cuts in Central Government Grants and limited opportunities to offset pressures, combined with increased demands for key services.  This pressure was likely to become more acute in the short-term due to the loss of revenue and additional unplanned expenditure caused by the need to tackle the Covid-19 pandemic.

 

One of the consequences of the financial structure imposed on councils was the pressure from Government to scale up by adopting countywide unitary and mayoral structures.  Past experience in Lincolnshire suggested this would be difficult to achieve, and a better approach would be to build alliances from the ‘bottom up’. This would allow resources to be shared quickly and effectively, reducing pressure on budgets, and giving those partners a stronger voice in the allocation of scarce resources from central government and the shaping of new unitary structures.

 

The proposal was set out clearly within the report and the details of how it would work were set out in the memorandum of understanding.  The proposals had been subject to in-depth discussions in which Councillor Welton had been involved since May 2019.  The Leader and Deputy Leader of both authorities had met to discuss the finer points of the proposal and draft the report, which had been extensively amended to suit both authorities.

 

The finances of the proposal were set out in the appendix, indicating prudent figures of year-on-year savings. There was total confidence that exit costs would be contained within the figures given. Independent financial advice and independent legal advice had been sought and were set out in the appendices.

 

The proposed alliance sought to protect the town, its funds, heritage, history and future.  The final shape of joint working and the pace of service transformation would be subject to agreement by both councils.  Members were invited to agree that the transformation should begin now, with the establishment of a Joint Statutory Officer team to advise and assist both authorities on how to ‘kick start’ change and merge workforces.

 

It was moved by Councillor Nigel Welton and seconded by Councillor Paul Skinner:-

 

(1)       To agree to enter into a Strategic Alliance for the purposes set out in Section [1.12] of this report, effective from 1^st July 2020, for the purposes and under the terms described in this report and set out more particularly in the draft Memorandum of Agreement attached to it.

 

(2)     That the Strategic Alliance will be supported by a single merged workforce. This will be overseen and implemented by the Joint Chief Executive/Head of Paid Service.

 

(3)       That the savings of £15.4m (BBC £5.1M, ELDC £10.3M) identified in the Financial Business Case are built into the Medium Term Financial Plan.

 

(4)       That Robert Barlow becomes Joint Chief Executive/Head of Paid Service of East Lindsey District Council and Boston Borough Council.  East Lindsey District Council shall formally employ Mr Barlow, who shall, for the purpose of facilitating the Strategic Alliance, be seconded to Boston Borough Council as Chief Executive and Head of Paid Service under Section 113 of the Local Government Act 1972, effective from 1^st July 2020.

            Thereafter, East Lindsey District Council will contribute 67 per cent of the cost of Mr Barlow’s remuneration and Boston Borough Council will contribute 33 per cent of the same. Consultation should commence immediately.

 

(5)       That Michelle Sacks becomes Joint Monitoring Officer of East Lindsey District Council and Boston Borough Council.  Boston Borough Council shall formally employ Ms Sacks, who shall, for the purpose of facilitating the Strategic Alliance, be seconded to East Lindsey District Council as Monitoring Officer under Section 113 of the Local Government Act 1972, effective from 1^st July 2020.

            Thereafter, East Lindsey District Council will contribute 67 per cent of the cost of Ms Sack’s remuneration and Boston Borough Council will contribute 33 per cent of the same. Consultation should commence immediately.

 

(6)       That Paul Julian becomes Joint S151 Officer of East Lindsey District Council and Boston Borough Council.  Boston Borough Council shall formally employ Mr Julian, who shall, for the purpose of facilitating the Strategic Alliance, be seconded to East Lindsey District Council as S151 Officer under Section 113 of the Local Government Act 1972, effective from 1^st July 2020.

            Thereafter, East Lindsey District Council will contribute 67 per cent of the cost of Mr Julian’s remuneration and Boston Borough Council will contribute 33 per cent of the same. Consultation should commence immediately.

 

(7)       That Michelle Sacks be appointed as Returning Officer and Electoral Registration Officer for Boston Borough Council.

 

(8)       That the exit costs are charged to the reorganisation budget shown in the financial business case. The costs of the departing Statutory Officers shall be met by both authorities.  East Lindsey District Council will contribute 67 per cent of the cost. Boston Borough Council will contribute 33 per cent.  These exit costs will be recovered quickly from savings achieved through the operation of the Strategic Alliance and as modelled in the Financial Business Plan. Consultation with both Officers should commence immediately to start redundancy proceedings.

 

Councillor Skinner commented that these were uncertain times and the proposal would maximise the Council’s opportunities. All legal and due diligence processes had been followed confirming that the proposal was deliverable. Some details could not be shared at this stage due to employment law and it was inappropriate for them to be requested.

 

Councillor Richard Austin commented that the Council had been co-operating with other local authorities for years and there was merit in the proposal. However, the proposal had been announced suddenly and with little time in order to consider what was a historic decision.

 

There needed to be proper consultation and all Councillors should be given time to consider the arrangements to ensure their soundness. In addition, Members needed to be provided with details of the costs of outgoing Statutory Officers and the opportunity to interview the proposed Joint Chief Executive.

 

In conclusion, Councillor Austin stated that Members needed to identify the best alliance for the Council, which he felt would be with South Holland District Council in terms of its geography, history, population and size. The proposal should not be progressed at this stage, further options should be explored with Scrutiny Members involved and all Councillors and residents should be consulted.

 

The Leader asserted that delaying the proposal for six months would prolong uncertainty for staff.

 

During debate, the following comments were made:-

 

Key concerns included the excessive speed of the process and lack of consultation. The Council was not at a crisis point; it was well-run, had adequate resources and would be recompensed by the Government for losses caused by the lockdown.  Other authorities had allowed a longer period for proposals to be considered; a three-week consultation period was not sufficient.  Elsewhere, auditors had stated that ambitious proposals had to be adequately planned and resourced especially when driven by a date.  The alliance of Broadland and South Norfolk Councils had been based on a feasibility study, with full details of the proposal enabling Members to make a well-informed decision.

 

The proposals had not been formulated openly; opposition Members should have been involved in the process. Unions should have been consulted; staff deserved to have their rights considered.  There would be advantages to the alliance, but full details should be provided.  There should be a six-month process with all Members involved, allowing them to take ownership of it, which was the only way to succeed.

 

The proper scrutiny process should be followed and all potential partners assessed.  The proposal need a balanced assessment, which meant considering the negatives as well as the positives. The proposal had been written exclusively by East Lindsey.

 

With respect to the proposed financial business case, there was doubt that the proposed amount of savings would be achieved, as the figures were not borne out by the business case.  It was accepted that the Council needed to make significant savings; however, the amount of savings proposed would mean job losses, possibly 36 full-time positions.  The report did not rule out compulsory redundancies and lower-graded officers could be affected.  The size of the pension contributions and the cost of outgoing officers were significant concerns.

 

There were also concerns regarding the proposed secondment of East Lindsey’s Chief Executive to the position of Joint Chief Executive.  Councillors could not appoint a Joint Chief Executive without knowing the officer concerned.  The position of Joint Chief Executive needed to be subject of a national recruitment campaign in order to secure the highest quality candidate.  Broadland and South Norfolk Councils had appointed the managing director through open competition.

 

Further concerns included foreseeing problems with the proposed agreement, particularly with respect to the resolution of disputes and the powers of the Joint Chief Executive, and a perceived loss of status for the borough.

 

The proposal was to share costs and savings in a 33/67% proportion; however, this meant that the Council might have to run on a 33% share of officers’ time.

 

When bidding for infrastructure funding, it was unclear what they would bid for, as Boston needed a bypass, and in terms of flood defences, Boston’s was nearly completed and funded.

 

In response to a question, Councillor Welton confirmed that if Members were not satisfied with the performance of the Joint Chief Executive, or there was a dispute within the alliance, the partnership could be dissolved within 12 months. Any disputes with respect to Statutory Officers could be dealt with Joint Board or the Joint Officer Appeals Panel. In addition, there was legislation relating to performance management and councils had authority to dismiss officers if there were legal and justifiable causes.

 

In response the following comments were made:-

 

The delay of six months would put an end to the proposal or at least cause six months of uncertainty for staff; it was imperative to proceed.  East Lindsey District Council might withdraw and others may not wish to work with the Council.

 

The process had been followed by many other authorities and examined and was not something new and unknown. If the Council had taken such a decision when there was opportunity 13 years previously, the Council could have benefited from significant savings and improvements.

 

This was an extremely important decision and all Members needed to be comfortable that they were making the right one.  However, Group Leaders had been informed about briefings for Members to receive the details of the proposal and they should have ensured this message was passed on. It was normal practice for negotiations to be held at the level of Leader and Deputy Leader.  The correct process had been followed; it was for the Scrutiny Chairman to call a scrutiny meeting and the Leader had welcomed the Chairman’s call for a scrutiny meeting. This was a proposal; if it was approved there would be further negotiations and all Members would be involved.

 

If the statutory officer positions were taken to open tender it could significantly increase redundancy costs.  East Lindsey had recruited its Chief Executive 12 months previously and had secured the best candidate.

 

The proposal would provide capacity in order to be in a better position to provide essential services. The peer review had highlighted the Council’s limited capacity and the alliance would remedy that.

 

Members had been assured that the figures in the report were accurate. The Council had had to carry out services with ever-decreasing budgets due to the savings that had to be achieved. If a decision was not made within three years the Council’s reserves would be diminished and frontline services would be cut.

 

In summing up, Councillor Welton urged Members who believed in the alliance in principle to vote for the substantive motion, as the amendment would spell the end for the alliance.

 

 

An amendment was moved by Councillor Stephen Woodliffe and seconded by Councillor Richard Austin:-

 

To agree to begin a six-month consultation period on the strategic alliance with East Lindsey District Council for the purposes set out in the report involving Members, staff, scrutiny and all appropriate bodies and that there be no staff appointments until approved by full Council.

 

On being put to the vote the amendment was lost on the Mayor’s casting vote.

(14 in favour, 14 against and 1 abstention.)

 

A further amendment was moved by Councillor Paul Goodale and seconded by Councillor Alan Bell that:-

 

That recommendation 4 be amended to make the appointment of the Joint Chief Executive an interim appointment so that Mr Barlow would be employed for 12 months, i.e. until July 2021, in order that Members would have the opportunity to review his performance.

 

On being put to the vote the amendment was lost.

 

It was then asserted that Councillor Edge had been unable to place her vote on the first amendment due to technical difficulties and that the vote should be re-taken, particularly as it had fallen on the Mayor’s casting vote. However, the Deputy Monitoring Officer confirmed that the vote could not be re-taken.

 

A further amendment was proposed by Councillor Anne Dorrian and seconded by Councillor Michael Cooper:

 

To agree to begin a seven-month consultation period on the strategic alliance with East Lindsey District Council for the purposes set out in the report involving Members, staff, scrutiny and all appropriate bodies and that there be no staff appointments until approved by full Council.

 

On being put to the vote the amendment was carried by 15 votes to 14 with 1 abstention, and became the substantive motion.

 

However, before the substantive motion was put to the vote, Councillor Welton asked that the item be withdrawn. In accordance with the provisions of the constitution, and with the consent of the Proposer, Seconder and of the meeting the item was withdrawn.