Decision details

11.1

The Executive Director, Children, Young People and Families submitted a report in relation to the creation of a schools’ company.

11.2

RESOLVED: That Cabinet:-

(a)

agrees that the creation of a Schools’ Company, to be known as Learn Sheffield, is the preferred option for delivering improvements in standards and performance of schools in the City;

(b)

approves the creation of a Schools Company in the form of a Company Limited by Guarantee;

(c)

approves the Council becoming a Member of the company and providing a guarantee up to the limit of £25.00 in the event that the company is wound up and is unable to pay its debts;

(d)

approves the disestablishment of the City Wide Learning Body given the creation of the Schools Company;

(e)

delegates authority to the Executive Director, Children, Young People and Families to consent to the governing bodies of all maintained schools in Sheffield which have a delegated budget and which are not in the Ofsted “Special measures” Category to become members of the proposed new company;

(f)

approves the Council acting as the “supervising authority” for the purposes of the Education Act 2002 and the School Company Regulations 2002 and delegates authority to the Executive Director CYPF in consultation with the Director of Finance to determine these arrangements;

(g)

delegates authority to the Executive Director, Children, Young People and Families, in consultation with the Director of Legal and Governance to agree the Articles of Association of the proposed company;

(h)

delegates authority to the Director of Legal and Governance to take all necessary legal steps to incorporate the company;

(i)

delegates authority to the Executive Director, Children, Young People and Families, in consultation with the Director of Finance and the Director of Commercial Services the approval of the business case;

(j)

delegates authority to the Executive Director, Children, Young People and Families, in consultation with the Lead Member for CYPF to agree a named person to represent the Council Membership at general meetings of the company;

(k)

delegates authority to the Executive Director, Children, Young People and Families, in consultation with the Lead Member  to agree a named person as an interim non-executive director to the interim Board

(l)

delegates authority to the Executive Director, Children, Young People and Families, in consultation with the Cabinet Member for Children, Young People and Families the nomination of two persons as non-executive directors to the Board of the Company upon the full Board being elected by the members;

(m)

delegates authority to the Executive Director, Children, Young People and Families, in consultation with the Director of Human Resources as necessary, to second the identified staff to the company subject to formal consultation and agreement and at the appropriate time, commence formal consultation with Trade Unions regarding the transfer of staff from the Council into the company;

(n)

delegates authority to the Executive Director, Children, Young People and Families, in consultation with the Cabinet Member for Children, Young People and Families, the Director of Finance, the Director of Commercial Services and the Director of Legal and Governance as appropriate to:

·         Enter into negotiations with the new company for the commission of the Advocacy and Challenge services from the Company by using elements of the CYPF education budget

·         Approve the procurement strategy of awarding a contract to the new company

·         Enter into the contract for the proposed services and any other necessary legal agreements that are required in order to give effect to the arrangements

·         Create a client function within the Council that will commission, support and monitor the performance of the Company

11.3

Reasons for Decision

11.3.1

Option E has been chosen for the following reasons:

·         It maximises the impact of improvement activity on  standards and attainment

·         To increase and strengthen school partnership working and do more city-wide partnership work.  To make a firm commitment that binds schools, academies, colleges and SCC together in the interest of all children

·         The Council retains and strengthens its role in education, advocating for children and families to improve standards

·         It promotes the growth and expansion of improvement services – shifting the focus away for budget challenges

·         The school company provides a model that will potentially provide better value for money.

11.4

Alternatives Considered and Rejected

11.4.1

The option (A) to continue with the current partnership arrangements under the CWLB (maintain the status quo) was considered.  It is felt that whilst the current arrangements have delivered improvement it is unclear how the CWLB as is could accelerate improvement in line with the challenges presented.   In particular the lack of protection afforded to members in an unincorporated association would temper ambitions and hinder the development of services.

11.4.2

There is an option (B) to discontinue current arrangements and leave school improvement arrangements to the market to provide.  Whilst some schools would manage to find and procure effective school support and improvement there is a concern that other schools would not look for support and become isolated and vulnerable.   This option is also contrary to all of the evidence about school improvement being most effective when delivered in a self-improving system.

11.4.3

The third option (C) is to revert to a Local Authority led approach to school improvement. Here existing resources would be used for an expanded school improvement function.  A number of disadvantages were identified with this model, these include:

• The proposal does not support the evidence about a school led system of improvement being most effective

• The diminishing resources that the Local Authority has to put into school improvement as the Education Services Grant allocation falls

• The impact of the academies programme that means that aside from safeguarding and SEND the LA has a limited remit with many schools and this sector would be untouched.

11.4.4

A fourth option (Option D) would be to authorise the Council maintained schools to establish the schools’ company and to not join the company as a member. In order to be able to commission from this company the council would have to go out to a full EU procurement and there is no certainty that the new contract would be the successful bidder. 

11.4.5

Option E is the recommended option and is the development of the CWLB into Schools Company that would be incorporated as a Company Limited by Guaranteed.  The Local Authority would transfer its school improvement resource into the company and this would be pooled with contribution from schools to shape the overall improvement offer.

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

Jayne Ludlam, Executive Director, Children, Young People and Families

11.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

Children, Young People and Family Support