Issue - items at meetings - Adult Services- Future service models

Report of the Executive Director for Adult Services (copy attached).

That committee agree not to establish a Local Authority Trading Company (LATC) for ASC services.

10.1      The Committee considered a report of the Executive Director for Adult Services in relation to Adult Services – Future Service Models. The report detailed the findings arising from the development of a business base to demonstrate whether establishing a Local Authority Trading Company (LATC) to deliver adult social care services was in the best interests of the city; following a request from the Committee in December 2013. The report also outlined the legislative and funding changes that had taken place since the decision had been taken. The Committee were asked to consider the impact of additional change; the competing priorities of management and the associated financial risks.

10.2      Councillor Randall noted he had been on the Scrutiny Workshop that had looked at local trading companies; it was noted that the unions had made make a compelling case against them; there was no overwhelming business case and other examples of failures elsewhere.

10.3      Councillor A. Norman asked some specific questions, and stated that she was concerned the decision to not progress this work was political at a time when the Council needed to change, modernise and deliver services differently, and she added that the assumptions in the report seemed reasonable over the next five years.

10.4      In response to Councillor A. Norman the Executive Director of Adult Services referenced paragraph 3.8 of the report – in relation to work around the Better Care Fund with partners, and stated that there could be some restrictions if this work ran alongside a LATC, and the current approach was to strengthen the joint commissioning agreement. The service was managing a significant amount of change; with a small senior management team. It was considered that the introduction of a LATC would be an additional pressure beyond current capacity when attention was focusing around the implementation of the Care Bill.

10.5      The Chair added that this could be revisited in a few years, but the current priorities for Officers should to focus on the Care Act and the Better Care Fund.

10.6      Councillor G. Theobald stated that services would have to change for the benefit of residents, and he felt that views of the Green and Labour Groups went against recommendations from EY, and placed Officers in a difficult position.

10.7      The Chair stated that the report contained the professional view of Officers, and reiterated the challenges in relation to the timing of this in the face of other significant changes in the service.

10.8      The Executive Director stated that Officers were of the view that modernising the service with partners through the provision of the Better Care Fund was the most appropriate way forward, and this would help to deliver efficiencies as outlined in the report.

10.9      The Chair put the recommendation to the vote.

10.10   RESOLVED: That Committee agree not to establish a Local Authority Trading Company (LATC) for ASC services.