19 Shared Services Agreement - Revenues and Benefits
(Cabinet Member with Special Responsibility Councillor Whitehead)
Report of Director of Corporate Services
Minutes:
(Cabinet Member with Special Responsibility Councillor Whitehead)
Cabinet received a report from the Director of Corporate Services which sought approval for the continuation of the existing shared service arrangement with Preston City Council; to establish a Joint Committee of representative members from both authorities and through delegations to that Joint Committee, to provide revenues and benefit functions for both Councils. The report was exempt from publication by virtue of Paragraph 3 of Schedule 12A of the Local Government Act, 1972.
The Chair asked that her thanks be conveyed to the Revenues and Benefits staff for the work undertaken during lockdown with regard to the distribution of grants and benefits.
The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:
Option 1: To agree the continuation of the shared service arrangements with Preston City Council, in relation to the Council’s Revenues and Benefits functions
Advantages: Strong record of business transformation
Exceeded budget savings targets with further opportunities for economies of scale Strong governance arrangements in place
Continuity of service delivery, Retain local knowledge in a critical service
Disadvantages: None identified
Risks: Government re-organisation could temporarily disrupt the arrangement at any point, but the risk is mitigated by the option of a two year notice period which can be served by either Council at any time.
Option 2: To not agree the continuation of the shared service arrangements with Preston City Council and instead instruct Officers to consider alternative options of service delivery.
Advantages: None identified
Disadvantages: Additional cost elements in unravelling existing arrangements
No continuity in service delivery
A break up of the partnership would create uncertainty and insecurity for staff within the shared service with the likelihood of losing key staff to longer term opportunities.
Risks: There are implications for the Council if the arrangement doesn’t proceed with the risk of losing key staff and the additional costs in achieving a reduction in HR resources.
The need to increase ICT support, storage capacity and infrastructure to re-establish the revenues and benefits service in the City Council environment.
The officer preferred option is Option 1, as this provides continuity and is considered the most cost effective option, retaining existing staff whilst providing the opportunity for further economies of scale.
Councillor Whitehead proposed, seconded by Councillor Lewis:-
“That the recommendations, as set out in the report, be approved.”
Councillors then voted:-
Resolved unanimously:
(1) That Cabinet agrees to the continuation of the shared service arrangements with Preston City Council, in relation to the Council’s Revenues and Benefits functions and that a further Shared Revenues and Benefits Service Agreement with Preston City Council be entered into on an outline 10 year basis, underpinned by a rolling 2- year notice period, to commence on 1 July 2021.
(2) That Cabinet agrees to the following:
(i) to establish a Shared Revenue and Benefits Service Joint Committee to carry out the delegated revenues and benefits functions on behalf of Preston City Council and Lancaster City Council; ... view the full minutes text for item 19