Agenda item

To consider a report by Councillor Julian Thompson-Hill, Lead Member for Finance, Performance and Strategic Assets (copy enclosed) on the options for a new service delivery model for the Revenues and Benefits Service and seeking Cabinet endorsement of the recommendation to transition the service back to the Council.

RESOLVED that, having reviewed and considered the options outlined and evaluated in the report in relation to a new services delivery model for the revenues and benefits services, Cabinet endorse the recommendations made by the project team allowing DCC officers to have the authorisation to start negotiations and engagement with Civica and other parties, in order to progress the recommendation of bringing the revenues and benefits service back into the Council in an effective transformation with no adverse impact on service delivery and in an acceptable timeframe.

Councillor Julian Thompson-Hill presented the report on the options for a new service delivery model for the Revenues and Benefits Service and sought Cabinet endorsement of the recommendation to transition the service back to the Council.

Since 2014 Civica had operated the contract to deliver the Council’s Revenues and Benefits Service through a partnership style agreement which had worked extremely effectively.  However, for commercial reasons Civica wished to refocus their strategic direction and end all partnership arrangements with local authorities at the earliest opportunity.  An options appraisal had been carried out on the way forward with five options evaluated in terms of delivery cost and quality of service.  Councillor Thompson-Hill guided members through the evaluation of options and reasoning behind the recommendation that the service be transitioned back to the Council.  If Cabinet approved the recommendation negotiations would commence with Civica and a negotiated position brought back before Cabinet.  Officers added that the partnership had worked well but Civica’s decision provided an opportunity to deliver an efficient service and generate savings with no adverse impacts.

Cabinet discussed the report with the Lead Member and officers and reflected on the original decision to outsource the service and raised questions regarding the merits of that decision and change of approach to bring the service back in-house.  It was explained that the partnership had been very successful for both parties but Civica had taken a strategic decision to focus on the software element of the business going forward which had no reflection on the Council or other partners.  The contract had generated savings and had worked well for residents and staff, with Civica investing in software systems and redesigning processes resulting in an improved, streamlined service, and its effectiveness had been well demonstrated during administration of the business support grants during the coronavirus pandemic.  Given the change in circumstances and subsequent options appraisal it was recommended that the service be brought back in-house which would also result in an estimated cost saving of £341,000 in year 1.  In response to further questions Cabinet was advised that formal negotiations with Civica could not commence until a formal decision was made through Cabinet; there was confidence that a transition back in-house would receive a positive response from staff, and in terms of other customers, any contractual obligations would automatically transfer across with the service.

The Leader felt the right decision had been made to award Civica the contract in 2014 which had resulted in service improvements and benefits to customers.  He commended the clear evaluation of options set out and clear reasoning behind the recommendation to best respond to the change in circumstances which provided an opportunity to retain a quality service whilst also generating cost savings.

Questions/comments were invited from non-Cabinet members and there was broad support for the recommendation.  The Lead Member and officers responded that –

·         existing staff working under the contract would TUPE back to the authority

·         Civica had been subject to the Council’s Welsh Language policy and bringing the service back in house would further strengthen that provision

·         the contract made a saving of £200k pa in the first year and a further £100k in year 2/3 resulting in an overall saving of £300k – further savings would also be made at the end of the contract by transitioning the service back in-house

·         the service’s transition to Civica had been subject to rigorous scrutiny and any request to scrutinise the options appraisal and clear recommendation could be accommodated; members had been notified of the service position at the outset

·         the service base in Russell House would continue in the short/medium term but its future would be considered as part of the new ways of working programme

·         the timeline for bringing the service back in-house was approximately eighteen months; no extra cost to the Council was expected from early termination of the contract given Civica’s decision to withdraw from the partnership agreement.

RESOLVED that, having reviewed and considered the options outlined and evaluated in the report in relation to a new services delivery model for the revenues and benefits services, Cabinet endorse the recommendations made by the project team allowing DCC officers to have the authorisation to start negotiations and engagement with Civica and other parties, in order to progress the recommendation of bringing the revenues and benefits service back into the Council in an effective transformation with no adverse impact on service delivery and in an acceptable timeframe.