Issue - meetings

Option 1: To maintain and resource the Building Control Service in-house

Option 2: To enter into formal negotiations with another  local authority to provide Building Control services

Option 3: To tender the opportunity for another party to assist the council in  providing its Building Control services

Advantages

None, other than fitting in part with the council’s ethos of being an ensuring council (e.g. retaining core capacity, but conflicts with some aspects such as VFM). 

This would fit well with the council’s ethics as an ensuring council and potentially keep the work within the local government family.

Still fits with council’s ethos – commissioning or procuring services in the most appropriate manner, where retaining in-house capacity is not a viable option.

Private sector organisations have more capacity for marketing services and are now more likely to attract new business.

May lead to reduced costs overall.

Disadvantages

The Council cannot currently provide a viable Building Control service without further investment in staff resources resulting in a greater draw on the revenue budget as there is no guarantee that this can be recouped through an increase in fee earning income – so option would not deliver VFM and so may not meet the council’s statutory obligations.

All local authorities are facing severe budget restraints in the current environment which can affect business plans and the ability to adequately resource service provision. 

Ideally, the council may prefer to retain this business within the local government family and this option would be seen as partially outsourcing this activity, so implementation would need carefully managing and communicating.

Risks

The further extension of the deficit in the Building Control Trading Account.

Failure to meet statutory obligations for trading position and for securing VFM / continuous improvement.

Shared service being unable to secure more business from the Lancaster area and continuing losses in the Building control Trading Account.

Highly unlikely that another Local Authority will be willing to undertake a shared service provision due to Lancaster’s geographical boundary.

The cost of using a private sector provider may be higher than directly employing officers and unable to directly compete with established and emerging providers who are more flexible in responding to market forces.