Issue - meetings

The Executive Director of Finance and Corporate Resources presented the Leisure and Cultural Services Business Case.  During the presentation of this business case the following points were highlighted for Members’ consideration:

·                The Council had considered a feasibility study in respect of future models for the delivery of Leisure and Cultural Services and had agreed in November 2017 that a Local Authority Trading Company (LATC) would be the most appropriate model moving forward.

·                A number of services, though not all, would be included in the LATC. 

·                There was the potential for some services that would not immediately be included in the remit of the LATC to be incorporated at a later date.  This could include the BMX Track and Arrow Valley Countryside Centre.

·                A number of staff would be affected by the introduction of the LATC; 50 would remain Council employees and 62 would be subject to a TUPE transfer process together with a number of casual staff.

·                Officers had been consulting with the Trade Unions throughout the process.

·                Some assumptions had been built into the savings plan and the unions had highlighted a number of concerns in relation to these.

·                Savings of at least £220,000 were anticipated for the first year with further savings of £440,000 anticipated for year two and £480,000 anticipated for years three and four.  These figures had been identified based on savings reported where Councils had introduced LATCs in other parts of the country to deliver similar services.

·                The LATC would be able to secure savings from Non-Domestic Rates (NNDR) and would able to secure VAT savings.  In both cases the Council was unable to take advantage of these financial benefits.

·                The LATC would be a non-profit organisation.  This corresponded with feedback provided by residents in surveys completed in 2017 which called for services to contribute to addressing health inequalities, to continue to have a community focus and to be connected to the Council.

·                The LATC would be a Council company providing services to and on behalf of Redditch Borough Council.

·                Officers were assuming that the Council would continue to provide support services, such as HR and IT services, for the first 12 months in which the LATC would operate.  After this the LATC might opt to obtain these services from another provider, though would need to provide the Council with notice.

·                Subject to the Business Case receiving approval at the Council meeting on 19^th March 2018 Officers would start to work on a detailed business plan for the LATC, scheduled for Members’ consideration in July 2018.

Following presentation of the report Members discussed a number of points in detail:

·                The governance arrangements for the LATC.  Members were advised that this would consist of two parts; a Board of Directors and a Shareholders Committee, which would hold the LATC to account.

·                The appointment of the Non-Executive Directors to the Board of Directors and how they would be paid.  Members were advised that usually Non-Executive Directors were paid expenses and this arrangement was expected to be  ...  view the full minutes text for item 115