Agenda item

11.1

The Executive Director, Resources submitted a report containing proposals in relation to the future delivery of the Revenue and Benefits and Financial Business Transactions (FBT) services.

11.2

RESOLVED: That Cabinet:- 

(a)

notes and approves the proposal for the future delivery of the Revenues & Benefits & FBT services outlined in this report and in particular that:

- these proposals would move the Council towards the delivery of those functions through an in-house service;

- this will necessitate early termination of the Revenues & Benefits and FBT elements of the Programme Agreement with Capita Business Services Ltd (Capita); and

- there may be a transfer of staff from Capita into the Council that will require a formal consultation with staff affected and the Trade Unions.

(b)

to the extent not covered by existing delegations, grants delegated authority to the Executive Director of Resources, in consultation with the Cabinet Member for Finance, the Director of Finance & Commercial Services and the Director of Legal and Governance, as necessary to:

- approve the procurement strategies and contract awards for the various procurements required to deliver transfer and ongoing delivery of the services;

- utilise the appropriate contractual mechanisms to give notice to Capita to terminate the Revenues and Benefits and FBT services and Partnership elements of the Programme Agreement; and

- take such other steps as he feels necessary to achieve the outcomes in the report.

(c)

gives approval for the budget required to cover the costs of delivering the transfer of the Revenues & Benefits and FBT services to the Council including the one-off implementation and set-up costs, as set out in the financial implications of the report; and

(d)

notes that a further report will be presented to Cabinet in due course setting out the strategy for the future delivery of the services in more detail once the proposals have been fully worked up.

11.3

Reasons for Decision

11.3.1

The detailed rationale for the recommendations is set out in the report. Insourcing the services will give the Council direct control over the delivery of Revenues, Benefits and FBT services, especially given the changing political and legal factors around Welfare Review and Universal Credit.  It will enable the Council to implement the necessary changes to transform the services to adapt to these environmental demands in the most effective way we see fit and deliver these changes more quickly and more cost-effectively than if the services were managed by a strategic partner.  This option gives us the opportunity to take back control over the future direction of the services and continue to deliver high performance through our own workforce.

11.4

Alternatives Considered and Rejected

11.4.1

Four other options were shortlisted for detailed analysis:

·         ‘Do nothing’ and allow the contract to run until 2022.

·         Reprocurement of all services.

·         Hybrid Delivery

·         Renegotiation

11.5

Any Interest Declared or Dispensation Granted

None

11.6

Reason for Exemption if Public/Press Excluded During Consideration

None

11.7

Respective Director Responsible for Implementation

Eugene Walker, Executive Director, Resources

11.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

Overview and Scrutiny Management Committee

11.1

The Executive Director, Resources submitted a report containing proposals in relation to the future delivery of the Revenue and Benefits and Financial Business Transactions (FBT) services.

11.2

RESOLVED: That Cabinet:- 

(a)

notes and approves the proposal for the future delivery of the Revenues & Benefits & FBT services outlined in this report and in particular that:

- these proposals would move the Council towards the delivery of those functions through an in-house service;

- this will necessitate early termination of the Revenues & Benefits and FBT elements of the Programme Agreement with Capita Business Services Ltd (Capita); and

- there may be a transfer of staff from Capita into the Council that will require a formal consultation with staff affected and the Trade Unions.

(b)

to the extent not covered by existing delegations, grants delegated authority to the Executive Director of Resources, in consultation with the Cabinet Member for Finance, the Director of Finance & Commercial Services and the Director of Legal and Governance, as necessary, to:

- approve the procurement strategies and contract awards for the various procurements required to deliver transfer and ongoing delivery of the services;

- utilise the appropriate contractual mechanisms to give notice to Capita to terminate the Revenues and Benefits and FBT services and Partnership elements of the Programme Agreement; and

- take such other steps as he feels necessary to achieve the outcomes in the report.

(c)

gives approval for the budget required to cover the costs of delivering the transfer of the Revenues & Benefits and FBT services to the Council, including the one-off implementation and set-up costs, as set out in the financial implications of the report; and

(d)

notes that a further report will be presented to Cabinet in due course setting out the strategy for the future delivery of the services in more detail once the proposals have been fully worked up.

11.3

Reasons for Decision

11.3.1

The detailed rationale for the recommendations is set out in the report. Insourcing the services will give the Council direct control over the delivery of Revenues, Benefits and FBT services, especially given the changing political and legal factors around Welfare Reform and Universal Credit.  It will enable the Council to implement the necessary changes to transform the services to adapt to these environmental demands in the most effective way we see fit and deliver these changes more quickly and more cost-effectively than if the services were managed by a strategic partner.  This option gives us the opportunity to take back control over the future direction of the services and continue to deliver high performance through our own workforce.

11.4

Alternatives Considered and Rejected

11.4.1

Four other options were shortlisted for detailed analysis:

·         ‘Do nothing’ and allow the contract to run until 2022.

·         Reprocurement of all services.

·         Hybrid Delivery

·         Renegotiation