Meeting documents
Executive (I)
Tuesday, 1st October, 2013
| REPORT TO: | 10 |
| DECISION NUMBER: | PH/97/2013 |
| EARLIEST DATE FOR DECISION: | 1st October 2013 |
RENEWAL OF AGREEMENT FOR A BLACKPOOL AND FYLDE SHARED REVENUES AND BENEFITS SERVICE | |
| Matter for Consideration: Fylde Borough Council’s Revenues and Benefits Service is administered by Blackpool Council under a shared service agreement. The original arrangement was entered into for a five year period running to the end of September 2013. This report gives details of this arrangement and recommends its extension. | |
| Information: The Revenues and Benefits Service In 2008 the Council entered into a shared services agreement with Fylde Borough Council to provide a Revenues and Benefits Service. The agreement was for an initial period of five years and runs to the end of September. Under the agreement Blackpool provides the Revenues and Benefits Service for both Councils. The Revenues and Benefits staffs of both Councils were combined into one team, sharing expertise and investment. The operation is based upon simplified, streamlined, standardised and automated processes that enable consistent, high quality service delivery. This has also resulted in this both Councils reducing their costs. The Shared Service is managed by Blackpool Council’s Assistant Treasurer- Revenues, Benefits and Transactional Services. The service delivers: • Billing, collection and recovery of Council Tax, including the localised support for Council Tax scheme • Billing, collection and recovery of Business Rates • Housing Benefit administration, assessment and payment • Billing, collection and recovery of benefit overpayments • Handling of all correspondence and complaints in line with Fylde and Blackpool Councils’ agreed corporate procedures • Data Protection and Freedom of Information issues • Performance management and monitoring, including providing regular reconciliation reports as agreed between the parties • Compilation of all Government returns relating to the service. • Scanning and indexing of all documents sent to the service (Fylde Borough Council only) • Service specific reconciliations, system controls and system administration • Interpretation and development of policy in relation to any policy changes affecting the service • Briefing for both elected members and senior officers at both councils including attendance at Management Team, Council, Cabinet /Executive and Scrutiny meetings as and when required • The provision of relevant training to members, staff, partners and stakeholders • Assessment of Free School Meals, Clothing Allowances and Student Awards (Blackpool Council only). • Financial Assessments for Social Care (Blackpool Council only). Work specifically excluded in relation to the shared service includes the provision of customer contact centres, fraud activity and corporate debt recovery. | |
| Does the information submitted include any exempt information? | NO |
| Legal Considerations: Legal Considerations As outlined in the Information section. Procurement Considerations: The value of the revenues and benefits work provided by Blackpool Council to Fylde Borough Council is greater than the threshold value for services set out in the Public Contracts Regulations 2006. This would normally mean that a contract for the work would need to be tendered in accordance with the regulations. However, this does not apply where services are carried out by one local authority on behalf of another pursuant to a genuine administrative arrangement – as opposed to a contract – between the two authorities. The arrangements that exist between Fylde Borough Council and Blackpool Council fall within that description. Fylde has arranged (and, if the recommendation of this report is accepted, will continue to arrange) for Blackpool Council to discharge the functions set out in this report. That arrangement, made by the Fylde Borough Council Cabinet under regulation 5 of the Local Authorities (Arrangements for the Discharge of Functions) (England) Regulations 2012 is a genuine administrative arrangement and is therefore not treated as a contract for the purposes of the procurement legislation. | |
| Personnel Considerations: No direct impact | |
| Financial Considerations: Both councils contribute to shared service costs in line with authorised budgets, reviewed each year and subject to consultation | |
| Performance Management Considerations: Quarterly monitoring metings are held to measure performance and discuss any other issues affecting the service. The meetings are attended by senior managers from both councils. | |
| Risk Management Considerations: Given the period of great change in the administration of welfare benefits both now and in the future it is not advisable to consider alternative service options at this time as this would be extremely disruptive. However, the eventual transfer of housing benefits administration to the DWP will obviously have a great impact on the delivery of the service and there are still many uncertainties regarding this matter. It is anticipated that the position with respect to the welfare reform agenda and its impacts will become clearer over time and certainly within the period recommended for extension of the agreement. | |
| Relevant Officer: Steve Thompson, Treasurer | |
| Relevant Cabinet Member: Councillor S. Blackburn | |
| Consultation Undertaken: Shared Service workshop with Fylde Borough Council on 12th July 2013 and subsequent staff focus groups. | |
| Background Papers: | |
| Is this a key decision? | NO |
| Is the decision required in less than 5 days? | NO |
| Recommendations: That arrangements are made for Blackpool Council to continue to discharge revenues and benefits functions on behalf of Fylde Borough Council pursuant to Regulation 5 of the Local Authorities (Arrangements for the Discharge of Functions) (England) Regulations 2012 for a three-year period with an option to renew for a further 12 -month period. | |
| Reasons for Recommendations: To maintain the mutual benefits to both councils of such a public-public partnership. | |
| Is the recommendation contrary to a plan or strategy adopted or approved by the Council? | NO |
| Is the recommendation in accordance with the Council’s approved Budget? | YES |
| Other alternative options to be considered: Given the period of great change in the administration of welfare benefits both now and in the future, combined with the good working relationship with Fylde Borough Council regarding the delivery of the revenues and benefits service, it is not advisable to consider discontinuing the arrangement at this time (which could result in Fylde taking the service back in-house, tendering the service or entering into discussions with other service providers who may wish to also consider a shared service model). Such a separation would be extremely disruptive and costly at a period of great change especially considering the good working relationship and the high service standard in delivering the service. However, the eventual transfer of housing benefits administration to the DWP will obviously have a great impact on the delivery of the service and there are still many uncertainties regarding this matter. For these reasons it is recommended that the shared service arrangement be extended for three years with an option to extend for a further year. During this period the position with respect to the welfare reform agenda and its impacts will become clearer. | |
| Policy, Overview, and Scrutiny Committee Chairman (where appropriate) Date Informed: N/A Date Approved: N/A | |
| DECLARATION(S) OF INTEREST (if applicable) None | |
| Decision: The Leader of the Council agreed the recommendations as outlined above namely: 1. To agree that Blackpool Council to continues to discharge revenues and benefits functions on behalf of Fylde Borough Council pursuant to Regulation 5 of the Local Authorities (Arrangements for the Discharge of Functions) (England) Regulations 2012 for a three-year period, with an option to renew for a further 12 -month period. 2. That the Assistant Chief Executive- Treasurer Services be authorised to make any necessary arrangements. | |
| Date: | 1st October 2013 |
| Reason for Decision: To maintain the mutual benefits to both councils of such a public-public partnership. | |
Date of Publication: | 1st October 2013 |
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