The Future of OCS and CEF support services

1. The Future of OCS and CEF support services

2. Context • Changing landscape for Local Government • What services have to be provided? • How can they be provided adequately at least cost? • Whether we like it or not OCC is not immune

3. How does that impact us • Changing relationship with schools: Increasingly influence not control • The big concerns: adult social care, safeguarding, the roads, transport, the local economy • Focus on the really core services because our capacity is limited and getting smaller • The discussion is not on who delivers, but how to deliver • Most Councils are in the same place as us

4. For Oxfordshire……primary concerns • Spending Review (25/06) means further significant savings have to be found : • £127 Million delivered already • £74 Million committed • Up to a further £61 Million now needed • Frontline services in all parts of OCC will be challenged given the size of savings that have to be found • Improving schools and early years settings remains a key council priority but we do not have the capacity in-house to meet demand • Changing education landscape including funding reductions in grants

5. What does that look like for E&E?

6. Art of the possible…from 2015 • Current delivery models won’t support savings of this magnitude • Making savings means losing posts because little further scope in non-staffing budgets • More customers/increase revenue; very limited scope to do this • Re-engineer processes, more automation requires investment – and ultimately fewer posts

7. The Status Quo is not an option • Council will continue to scale down but current delivery model cannot be flexed anymore • More savings may be required in future • If Corporate delivery model cannot run economically then neither can delivery model for schools • We need a different delivery model for Corporate back office and for school services from 2015 • CEF Schools and Learning/Foundation Years need capacity

8. Reshaping Services • Scale of savings – externalisation cannot deliver all • Must consider stopping or part stopping services • Applies to services that remain in-house or externalise • Reshaping now doesn’t preclude externalisation in the future • Difficult choices for Members

9. Soft Market Testing • Inform scope, potential new delivery models and decisions on procurement to cabinet - schedule for 15thOctober. • Range of national providers, local providers and other local authorities have provided invaluable information to form the basis for proposals • The areas in scope for soft market testing were: • OCS - Corporate Back Office Services • OCS - School Back Office Services • OCS - Oxfordshire Skills & Learning • CEF - Schools & Learning/Foundation Years (this includes Outdoor Learning and excludes Meadowbrook, and the Hospital School)

10. Key Lessons from Soft Market Testing • There will be market interest in all the service areas currently in scope, but one size does not fit all • A timeline beginning in Autumn 2013 to deliver new delivery models for April 2015 is very feasible • Providers acknowledged that the Council has already reduced costs and taken a range of savings and that further savings will be required • The Council needs to have a clear view of the Strategic client to be retained and the outputs and outcomes required of any service provider • In broad terms, providers will deliver efficiencies by end to end process re-engineering, introducing further automation where possible and through their economies of scale • Schools must be actively engaged with any procurement process and signed up to the outcomes • Competitive Dialogue is likely lead to better outcomes than a restricted procurement process

11. Different approaches and timelinesWhat we’ve already said…..

12. Recommendations to Cabinet (1) One major procurement to begin Jan 2014 • Council HR/Finance services (Outsource) • School and Learning/Foundation Years (Joint Venture…probably) • Education Support Services (Joint Venture…probably) • Final scope and delivery models will be subject to competitive dialogue

13. Recommendations to Cabinet (2) Separate actions and timelines for: • Music Service – Options to sustain service for future to be considered by December • ICT Business Delivery – Will be 50% commissioned by April 2014 and continues on to 2015 Skills & Learning • OCC to stop being the commissioner and provider of skills and learning • Seek local alternative or fall back on national providers

14. What does this mean? The way we deliver most services will change, but not overnight For staff, • Transfer to another provider • Staying in OCC but not necessarily in the same job • But there will be job losses in areas where we have to cease delivery • Job losses may mean redundancies – too early give a firm view and numbers • Where there is a move to a new provider or providers at some point – TUPE provisions may apply • Vacancies will be frozen for the time being as they occur unless there is business critical reason not to do so

15. Communications • Service Managers will follow up with Teams discussing what this means for them in more detail over the next fortnight • We will continue to keep you briefed at every stage through: • Further Briefings • Team Meetings • Web pages – OCS and CEF dedicated programme pages and email addresses • Newsletters • You can ask questions directly or anonymously via a new Question Box moderated by HR • Consultation with staff and stakeholders will take place • Unison briefed and part of this process • Staff Care is available for individuals and teams where requested

16. What next….key dates • Cabinet Discussion 15th October • Consultation with schools Oct – Dec 2013 • Staff Update Jan 2014 • Main procurement begins Jan 2014 • New delivery models in place April 2015

17. Accommodation Relocation of staff from Clarendon House for April 2014…. Customer Service Centreto County Hall ICT – keeps current space in County Hall PLUS – Base in Abingdon PLUS - Base in Unipart House

18. Questions