Scottish Borders Council

Agenda item

Strategic Review of SB Cares - Future Provision of Adult Social Services

Consider report by Chief Executive.  (Copy attached.)

Minutes:

There had been circulated copies of a report by the Chief Executive on the future of SB Cares.  The report explained that Scottish Borders Council transferred the majority of its adult care services to a new Limited Liability Partnership (LLP) following approval of a report which included a detailed business case on 26 June 2014.  The LLP, trading under the name of SB Cares, was established on 1 April 2015.  The LLP currently employed 570 full time equivalent staff with the same terms and conditions, including pension benefits, as staff directly employed by the Council.  SB Cares had its own Board, consisting of the Managing Director, Chief Operating Officer, Operations Director, and Chair along with two independent members. The activities of the LLP were overseen by the Council’s Major Contracts Governance Group, comprising seven Elected Members. The use of arm’s-length external organisations (ALEOs) was widespread across Scotland with a number of Councils establishing ALEOs in recent years to manage a range of Services from Culture and Leisure Services to Adult Social Care.  Given the increasing numbers of ALEOs that were being established, Audit Scotland published a report “Councils’ use of arm’s-length organisations” in May 2018 which outlined how Councils were using ALEOs.  The key messages from this report highlighted that Councils should keep their ALEOs under regular review.  Audit Scotland also noted that the operating context under which ALEOs delivered services did change, and that the original rationale for their establishment may weaken over time.  Audit Scotland also concluded that the establishment of an arms-length ALEO was a major strategic consideration for any Council.  Elected Members should therefore have a clear understanding of how their ALEOs were performing and how they fitted with the Council’s culture, its overall strategic priorities and those of the local community.  These priorities could change over the years in response to changing demographic, financial, market and political considerations.  It was essential therefore that Councils regularly reviewed their ALEOs to ensure they delivered the benefits expected and that their continued operation delivered demonstrable best value.  Where this was not the case alternatives should be considered.  The report assessed the current operational performance, the management structures, and the effectiveness of the governance mechanisms in place to monitor SB Cares.   The report evaluated the additional costs and financial benefits directly attributed to the current service delivery model, with SB Cares operating as a separately managed LLP.  It also identified and evaluated the mechanisms in place to review how SB Cares was performing, to oversee the quality and safety of its services, and how the current arrangements fitted with the Council’s culture and priorities and those of its partners and communities.  It was noted that the original financial savings envisaged from the establishment of the ALEO covered the period 2015/16 – 2019/20.  No further financial savings from SB Cares were assumed within future years of the current Financial Plan.  The report considered the changing operating context of the Council, particularly following the establishment of the Health and Social Care Partnership, and the risks which were impacting sustainability of the current business model for SB Cares. It was concluded that while the LLP had delivered financial and service benefits since inception it had struggled to realise the full potential of the model originally envisaged. After careful consideration it was the view of the Council management team that the benefits of the ALEO structure for SB Cares no longer outweighed the challenges and risks now facing the business.  These risks, which were likely to increase in future, made it appropriate for the Council to now reintegrate SB Cares LLP and SB Supports LLP into the Council.  The Chief Executive emphasised that there was no suggestion that SB Cares had failed as an organisation and that significant savings had been achieved.  SB Cares had been created in 2014 based on a business case at the time which included a requirement for a review in 5 years.  This review had started at the end of 2018, and included financial analysis as well as audits, with results reported to the Corporate Management Team.  It was clear that, over time, circumstances had changed, and given the changes to the health and social care environment and future financial challenges, it was considered this was the right time to bring this service back into Council control.  The Chief Executive answered Members’ questions including the practical aspects with regard to staff and clients. The Chief Financial Officer outlined the financial savings and confirmed that the administrative activity required to wind up the LLP would be managed from within existing resources. Members were generally supportive of the proposals.

 

DECISION

AGREED to:-

 

(a)     note the contents of the report;

 

(b)     voluntarily terminate SB Cares LLP and SB Supports LLP on 1 December 2019 and reintegrate all of the services presently directly delivered by the ALEO into the Council from that date; and

 

(c)     authorise the Chief Executive to:

 

(i)      take all necessary steps to reintegrate SB Cares within the Council management structure; including the necessary changes to personnel, financial, pensions, procurement, IT, property and legal agreements;

 

(ii)     write to the Board of Management of SB Cares informing them of this decision; and

 

(iii)    write to the Chief Officer of the Integration Joint Board informing the Board of this decision.

 

Supporting documents:

 

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