Smart Service Delivery in Challenging Times Shared services – what does it mean for you? Alan Higgins Chair, CIEH Council Director, Environmental Health Matters Ltd

What do we mean by Shared Services Can take many forms: A group of authorities agreeing to cooperate to deliver a service e.g. waste partnerships Individual or range of services provided by one authority to another e.g. stray dog service, out of hours A number of authorities sharing a service usually hosted or managed by one of them or outsourced e.g. contaminated land, building control, regulatory services The establishment of a local authority company to provide services to an individual or group of authorities The establishment of a social enterprise to provide services to an individual or group of authorities

Why Share Services? Partnership working encouraged by Government, the Audit Commission and LGA Local Government Boundary Commission consultation on Principal Area Boundary reviews Cooperate to provide expensive infrastructure e.g. waste disposal facilities Cost reductions through efficiencies – effects of CSR Cost reductions by sharing management costs, support services and other overheads Share regulatory services at different levels of government Share expertise particularly in areas of shortage or for smaller authorities

Other Potential Benefits of Shared Services Improve delivery to customers Greater resilience Economies of scale Consistent approach in service delivery across a wider area Reducing burdens on businesses by standardising performance, quality, policy & processes Business transformation improving self-service and reducing avoidable contact

Legislative Controls The Local Authorities (Goods and Services) Act 1970 Section 101 of the Local Government Act 1972 and sections 19 and 20 of the Local Government Act 2000 Section 111 of the Local Government Act 1972 Section 113 of the Local Government Act 1972 The Local Government Act 2000 Local Government Act 2003 Local Government and Housing Act 1989 and the Local Authority (Companies) Order The Local Government and Public Involvement in Health Act 2007 Section 31 of the Health Act 1999 and the NHS Bodies and Local Authorities Partnership Arrangements Regulations 2000 Local Government and Public Involvement in Health Act 2007

Governance Arrangements for Shared Services In house Public Sector Partnerships - Service level agreement - Joint Committee/Board Simultaneous Executive meetings Joint Waste Authorities Company arrangements - Wholly owned local authority company - Joint venture company Partnering Agreement/Contract Outsourcing – client arrangements in house

Employment Formats for Shared Services Provision of service by one authority to another authority – staff remain employed by provider authority Joint management by one authority – staff remain employed by original employer Management by a host authority with staff seconded from the other authority/authorities Management by host authority and staff transfer from other authority/authorities Transfer to a private organisation, a joint venture, a new LA owned organisation or a social enterprise

Employment Issues for Shared Services Transfer of Undertakings (Protection of Employment) Regulations 2006 – TUPE Staff who opt not to transfer Changes for economic, technical or organisational reasons (ETO reasons) Different terms and conditions Differing pension arrangements Differing benefits – lease cars, PRP Responsibility for redundancy costs

Other Issues for Shared Services Differing ICT systems Cultural differences Political differences Support service provisions VAT and taxation issues EU procurement requirements Customers Services Centres Accommodation and public access Power to delegate authority and enforce

Some Key Issues for Staff in a Shared Service Consideration Consultation on changes to working arrangements Contractual arrangements - TUPE Effects on pension Reductions in staffing – redundancy, filling of continuing or new posts, workload Continuing management and reporting lines Relocation – working area Delegated authority

Risks for the Shared Service Approach Insufficient funding of implementation Timing of ICT infrastructure and integration Savings and returns on investment not being realised Impact on corporate support and resilience in all participating authorities Performance levels not being realised TUPE, HR issues and staff engagement Licensing Act limitations – continuation of separate Licensing Committees

Ingredients for Success of Shared Arrangements Good existing relationships – TRUST! Experience of successfully working together in the past/on other projects (an incremental approach) Clarity about objectives Buy-in from staff and members Flexibility Honesty Same political control/unlikely to change Similar demographics and issues Services where there are national standards, e.g. H&S and food safety inspections, which are easier to integrate Similar ICT systems

Smart Service Delivery in Challenging Times Shared services – what does it mean for you? Questions

Smart Service Delivery in Challenging Times Shared services – what does it mean for you? Alan Higgins Chair, CIEH Council Director, Environmental Health Matters Ltd