Issue - meetings

To approve the creation of a KCC wholly-owned company to deliver Education Services.

Education Traded Services Company – Public minute for Items 7 & 9

(Items 7 & 9 Report of Mr Roger Gough, Cabinet Member for Education and Health Reform, Mr Mike Hill, Cabinet Member for Community Services, Mr Peter Oakford, Cabinet Member for Specialist Children’s Services and Patrick Leeson, Corporate Director for Education and Young People’s Services)

Mr Roger Gough, Cabinet Member for Education and Health Reform introduced the item for members, he explained that there were two key drivers to the proposed establishment of an Education Traded Services Company.  Firstly, the increase in academisation, the establishment of Free Schools and the way in which those schools were commissioned had caused concern that the education environment would become fragmented and secondly that, as budgets were reduced services would not be sustainable.  These two drivers lead to the principle aims of the proposed decision; maintaining and strengthening partnerships with schools and ensuring that services were sustainable.  

It was, he continued, important that these services continued to be provided as they were valued highly by schools and had been key to improved performance and the resulting ‘Good’ and ‘Outstanding’ ratings by Ofsted.

Patrick Leeson, Corporate Director for Education and Young People’s Services spoke to the item; he added that schools supported the proposals and recognised the advantages that procurement of services in this way would bring for them and reported that the Kent Association of Head Teachers had indicated that it would be happy to be represented on a Company and/or Stakeholder Board in the new company structures.

Cabinet discussed the information contained within the exempt papers and the Corporate Director for Education Young People’s Services and the Cabinet Member for Education and Health Reform answered questions for members.

Members were advised that there would be no change to any policy or entitlement as a result of the implementation of proposed decision to establish a traded companythe new company.

It was RESOLVED that:

To consider and endorse or make recommendation(s) in respect of the proposal to create a new Education Services Company

Mr Gough, (Cabinet Member for Education and Health Reform), Patrick Leeson (Corporate Director – Education and Young People’s Services), Keith Abbott (Director - Education Planning and Access), Simon Pleace (Revenue Finance Manager) and Tim Byles (Consultant) were in attendance for this item

(1)       Mr Gough introduced the report which asked the Cabinet Committee to consider and endorse or make recommendations on a proposal to establish an Education Services Company.

(2)       Mr Leeson said: it was important to maintain the existing supportive arrangements with Kent Schools; ensure schools had access to quality, cost-effective services from KCC to support improvement in educational attainment and standards; and that the opportunities to generate income from traded services, to reinvest in supporting the delivery of education services, were maximised.

(3)       Mr Gough and Mr Leeson answered Members’ questions relating to the information set out in the exempt appendices.

(4)       Resolved that:

a)   The proposal to seek approval to create a company, in line with the business case, and to enter into such contractual arrangements as are necessary to facilitate that creation be endorsed;

b)   The legal structure of the proposed company and the delegation of authority to the Monitoring Officer to agree the final details in consultation with the Cabinet Member for Education and Health Reform, the Cabinet Member for Commercial and Traded Services, the Corporate Director for Education and Young People’s Services and the Corporate Director of Finance and Procurement be endorsed;

c)    The implementation of the shadow governance structure from April 2017 be endorsed.

There has been considerable work over the last 6 months to develop a Full Business Case to support the decision to implement a new service delivery model for Kent Education Services, via the creation of a new Education Services Company. The decision will encompass both the implementation of a new company, the commissioning of that company to continue to deliver Education Services on behalf of KCC and to recommend the legal entity type.

It is also recommended that a shadow governance structure is implemented from April 2017, to allow the governance arrangements for the implementation phase to begin and to trial these arrangements before the Education Services Company goes live later in 2017.

PUBLIC MINUTE OF AN EXEMPT ITEM

The committee received a report setting out the latest position regarding preparatory work toward establishment of a new Education Services Company and presenting the full business case for consideration.

Mr Gough, Cabinet Member for Education and Health Reform introduced the matter and sought comment or endorsement of the proposed decision of Cabinet to establish the company as set out in the report and appendices.  He emphasised the importance of delivering services that reflected national policy and local objectives, in new and innovative ways, while building on the solid and continually improving work that was already being achieved at KCC

Mr Hill, Cabinet Member for Communities spoke to the item to confirm that he was supporting the proposals, following careful consideration and having received assurances regarding the provision of services within his portfolio.

Mr Oakford, Cabinet Member for Specialist Children’s Services, also confirmed his support for the proposals having also received assurances from the Corporate Director of Education and Young People’s Services about the maintenance of facets of provision within his own portfolio which he valued highly.

Corporate Director for Education and Young People’s Services, Patrick Leeson said that it was important to maintain the existing supportive arrangements with Kent Schools; schools had access to quality, cost-effective services from KCC to support improvement in educational attainment and standards; and that the opportunities to generate income from traded services to reinvest in supporting the delivery of education services were maximised.

The Cabinet Members and Mr Leeson answered Members’ questions relating to the information set out in the exempt appendices. 

(4)       Resolved that:

(a)       The proposal to seek approval to create a company, in line with the business case, and to enter into such contractual arrangements as are necessary to facilitate that creation be endorsed;

(b)       The legal structure of the proposed company and the delegation of authority to the Monitoring Officer to agree the final details in consultation with the Cabinet Member for Education and Health Reform, the Cabinet Member for Commercial and Traded Services, the Corporate Director for Education and Young People’s Services and the Corporate Director of Finance and Procurement be endorsed;

(c)        The implementation of the shadow governance structure from April 2017 be endorsed.

All three proposals were voted on together and the votes were as follows:

For: 7 Against: 2 Abstentions: 1