Issue details

Update: November 2016 – A decision is no longer required as it was not considered desirable on review to proceed to a LATCO.  Instead the service is internally commissioned and no decision will be taken.

To seek agreement to creation of a local authority trading company (LATCo) that will enter into a commissioning arrangement with KCC to deliver Community Learning and Skills (CLS) services.

Members on the Transformation Advisory Group and the Transformation Board considered a number of options for the future of CLS. This is in line with Facing the Challenge review (Market Engagement and Service Review), which will see CLS operating as a shadow LATCo rehearsing practices and features of a legal entity, e.g. financial accounting and governance arrangements. An evaluation of this phase will inform the design elements of the final legal framework within which the LATCo will operate.

Financial Implications: Funding contracts for learning and skills from central government are anticipated to be subject to reduction for the foreseeable future. This decision seeks to give the service the freedoms and flexibilities it needs to operate in a more commercial approach, in order to maximise income generation, preserve the service and minimise financial risks to KCC.

Legal Implications: LATCO to be setup with agreed memorandum and articles of association and commissioned to deliver the CLS service. Staff would need to be TUPE’d into the new organisation.

Equality Implications:Full EQUIA has been done and will be live throughout the process.