Agenda item

To pre-scrutinise the report concerning the future operation of Leisure Services at Redditch Borough Council.

(Report to follow)

Officers introduced the report and in so doing reminded Members that this was the final element of the Committee’s three stage approach to pre-scrutiny of this item.  For the meeting a covering report was presented, which followed detailed scrutiny of the options appraisal at the previous meeting.

It was highlighted that potential savings had been built into the Medium Term Financial Plan which were reliant upon alternative models for the provision of the leisure service, details of which were included within the report.  Members were informed that there had been limited dialogue with staff and the trades’ unions, in respect of the options available, pending a decision being made as to the next stage of the process.

Officers also drew Members’ attention to a number of limitations which needed to be fully considered by the Executive Committee should it wish to consider pursuing an alternative delivery model based on the options appraisal.  Particular attention was drawn in this respect to the scope of the services that would be included and the need for sufficient detail to be available in respect of costs and capacity required to deliver on the options.  The recommendations which were being presented for the Executive Committee’s consideration were therefore open and gave no specific steer as to a preferred option.  It was highlighted that in respect of an alternative delivery model officers would need to commission external support and advice in order to undertake a further, more comprehensive business case with an estimated cost of between £25,000 and £30,000.

In respect of the savings which had been built into the Medium Term Financial Plan, these would be met through balances for 2014-15.  However, the projected savings for future years would need to be addressed through the budget setting process which would take place later in the year.

Following presentation of the report Members discussed the following areas in more detail:

·         The potential for more detailed information to be made available in order for an informed decision to be made.

·         The mix of service to be included in any trust model and other types of model that could be considered.

·         The inclusion of £150k savings within the budget for 2014/15.

·         The external support required (and its cost) should an alternative model be given further consideration.

·         The nature of the transformation work which was referred to within the report and the impact that this could have in the longer term.  It was anticipated that the results of some of this work would be available within 3-4 months.

·         Any control which would be retained by the Council should the trust option be considered and the impact this would have on potential savings.

·         The impact on staff should the trust model be considered including the cost of such things as TUPE, pension and any redundancies.  Whilst it was understood that all staff would be transferred to a trust, there was the potential for that trust to carry out a review of staffing and any costs from that would be met by the trust.

·         Further work being carried out in respect of the “on costs” to support services, such as legal and finance, should the trust model be considered.  It was acknowledged that these had not been included within the work that had been carried out for the options appraisal and could make a significant difference to the decision which was being made.

The Committee debated in detail the different courses of action that it was able to recommend in order to assist the Executive Committee in making what Members acknowledged was a difficult decision.  After further discussion it was

RECOMMENDED that

further information should be provided on each of the following models for the management and delivery of leisure services, covering the consequences for the organisation, including staffing, before a decision is made by the Executive Committee and Council on this subject:

a)        management and service delivery by a newly established trust;

b)        management and service delivery by an existing leisure trust; and

c)        retaining a streamlined, in house leisure service.