Issue - items at meetings - Creating a Council the City Deserves…a transformation programme for Brighton & Hove City Council (May 2010)

Report of the Chief Executive (copy circulated separately).

(1)         That Cabinet:

(a)         Approve the establishment of the new Strategic Leadership Board

(b)         Give authority to proceed to select and appoint the four new Strategic Director posts as described in paragraphs 13.2 to 13.7

(c)         Give authority to proceed to statutory consultation, on 1 June 2010 for 90 days, with those directly and indirectly affected by the proposed changes to the organisational structure as described in paragraph 4.1 – 4.3

(d)         Note that proposals are likely to be amended, in response to consultation, and will be re-presented to Cabinet in September for formal agreement

(e)         Note that a report will go to the Governance Committee to seek authority for changes to the schemes of delegation to officers and any other aspects of the constitution that require Council and/or Governance Committee approval.

(f)           Authorise the Chief Executive to take all steps necessary to progress recommendations a. to d. and any decisions necessary or incidental to the establishment of the Strategic Leadership Board.

11.1         That Cabinet considered a report of the Chief Executive concerning proposals for the council’s new organisational structure as part of the ‘Creating a Council the City Deserves’ programme.

11.2         The Chief Executive explained that the main change to the proposals since the Cabinet considered his initial report was the retention of a separate finance function in order to maintain the focus on the Value for Money Programme in response to the inevitable reduction in the council’s grant from central government.

11.3         Councillor Mitchell raised concerns around the clarity of lines of accountability and the appropriateness of the proposed salaries for the new senior posts. She also queried some of the service groupings within the proposed Delivery Units and where Sustainability and Equalities would sit within the new structure. She stated that the council must consider carefully whether it was the right time to progress the proposals given the prevailing political and economic uncertainty.

11.4         Councillor Randall stated that he believed the proposals could enable the council to be more prudent about its spending. He welcomed the opportunity for more Third Sector involvement and echoed the importance of keeping Sustainability and Equalities at centre of the council’s work. He echoed concerns in relation to the proposed salaries for the new senior posts, and advised that they did not sit well with the job losses and pay freezes taking place throughout the city.

11.5         Councillor Watkins stated that despite comments the proposals in the report were not political, he felt it important that the Cabinet also assume ownership as they had the ultimate responsibility of agreeing them. He advised that, although the proposals represented a good blueprint for change, he was concerned about the pace at which they were being progressed, given that a new government had recently been formed and their priorities were yet clear.

11.6         The Chairman explained that the structural changes were proposed by the Chief Executive in his capacity as Head of Paid Services, and that Group Leaders had been given the opportunity to raise concerns at Leaders’ Group meetings. She stated that the need for change within the organisation was first recognised some time ago and that the time had come for a more radical approach to ensure that the council could continue to deliver services for residents effectively. She added that, while she understood the concerns around proposed salaries, they had been market-tested.

In response to a question from Councillor Mitchell, the Chairman reported that the new government had made clear their intention to allow some councils to return to a committee system of governance; however, it would be necessary to wait for more detail before discussions could take place about this.

11.7         Councillor Young stated that the Value for Money Programme had been initiated more than a year ago and it was hoped the proposed changes would contribute to this and enable the council to achieve the ?45-50 million of savings required over the next three years.

11.8         The Chief Executive advised that there was a need to invest in the Community and Voluntary Sector, as well as the statutory sector, in order to work through the ‘total place’ approach and begin to tackle the difficult financial conditions; proactive change was necessary to allow the council to have an open and transparent conversation with the city in relation to priorities before decisions about savings were made. He explained that the principle behind the structure was to make the necessary links across services, both inside and outside the council, to deliver effectively for the city and that the purpose of the consultation period was to determine whether any improvements could be made to the structure proposed in the report.

In response to concerns raised by opposition Members the Chief Executive made the following comments:

§         Services would not be provided on contractual basis; the idea was to agree the specification of services jointly with those who deliver them.

§         Accountability and Member involvement would be achieved through Overview & Scrutiny of the proposals throughout the process to ensure that the needs of the city were met and through opportunities to comment on and validate the end result; the new structure offer would more in terms of accountability.

§         Sustainability and Equalities would remain firmly embedded in the ethos and working of the council.

11.9         Councillor Mitchell thanked the Chief Executive for the assurances given and added that it was important that opposition Members comment on and question the proposals in public.

11.10    In response to a comment from Councillor Watkins about Full Council involvement in the process, the Chairman reported that the Chief Executive had attended meetings of all political groups to explain the proposals and listen to the views of Members.

11.11    Councillor Simson reported that the Chief Executive had met with members of the Community and Voluntary Sector and that they had recognised the important part they would play in the future of the council and the city.

11.12    RESOLVED - That having considered the information and the reasons set out in the report, the Cabinet accepted the following recommendations:

(a)         That the establishment of the new Strategic Leadership Board be approved.

(b)         That authority be given to proceed to select and appoint the four new Strategic Director posts as described in paragraphs 13.2 to 13.7.

(c)         That authority be given to proceed to statutory consultation, on 1 June 2010 for 90 days, with those directly and indirectly affected by the proposed changes to the organisational structure as described in paragraph 4.1–4.3

(d)         That it be noted that the proposals are likely to be amended, in response to consultation, and will be re-presented to Cabinet in September for formal agreement

(e)         That it be noted that a report will go to the Governance Committee to seek authority for changes to the schemes of delegation to officers and any other aspects of the constitution that require Council and/or Governance Committee approval.

(f)           That the Chief Executive be authorised to take all steps necessary to progress recommendations a. to d. and any decisions necessary or incidental to the establishment of the Strategic Leadership Board.