The Committee considered a report that outlined the Council’s response to the Secretary of State’s Directions. The Committee noted that an Action Plan in relation to Procurement had been developed and already agreed, and that work was underway on Actions Plans in relation to Grants, Property and Publicity. The main points of the discussion on this report may be summarised as follows:

The Committee:

• Was reminded that at its meeting on 6^th January, 2015 it had been agreed, in considering a referral from Council, in relation to the PWC inspection of the Council which gave rise to the Secretary of State’s Directions, that it wished its future work in relation to the issues raised in the motion to be focussed on considering and scrutinising the Council’s plans for improvement.
• Noted that the specific Direction for the Council relating to improvement and action planning is contained in Direction 1: ‘Within 3 months from the date of these Directions [i.e. 17 March 2015] to draw up and agree with the Commissioners a strategy and action plan for securing the Authority’s compliance with its best value duty (to include as appropriate complying with the specific directions and to put in place robust and transparent arrangements for grant decisions), and to submit this to the Secretary of State.’
• Was informed that the best value duty in Section 3 of the Local Government Act 1999 is drafted in broad terms.  It requires a local authority “to make arrangements to secure continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness”. Previous legislation and statutory guidance had been clear that this would need to be demonstrated by processes including the production of a Best Value Performance Plan, continuous improvement against Best Value Performance Indicators and a programme of periodic best value reviews of particular services or cross-cutting activities.  This guidance is no longer in place and since 2010 authorities have been given considerable discretion in how they meet the best value duty, with the only statutory guidance remaining being 2 pages long and focusing almost solely on the duty to consult in achieving this duty, and in particular the need to consult with the voluntary and community sector. 
• Observed that the authority had commenced discussions with the Commissioners about the nature of strategy and action plan they would expect to see and how broad its scope would be given the PWC inspection considered only four key areas of the Council’s business: grants, publicity, procurement of contracts and property.
• In considering the Council’s response to the Secretary of State’s Directions noted that an Action Plan in relation to Procurement had been agreed, and work was underway on Actions Plans in relation to Grants, Property and Publicity. 
• Requested that it should receive drafts of the four Plans and bi-annual updates on their delivery.
• Noted the Best Value Improvement Plans will consider the culture of the Council and how it might be changed so as to address the best value duty. The Committee also asked that the Head of Paid Service and Service Head for Human Resources be invited to attend O&S so as to discuss the Council’s plans for improvement in light of the Inspection’s findings
• Indicated that it would be inviting the Commissioners to attend a future meeting and that it wished to see the draft Improvement Plans prior to their agreement.

Accordingly, the Chair Moved and it was:-

RESOLVED:

1. To invite the Commissioners to attend a future O&S Committee;
2. To invite the Head of Paid Service and Service Head for Human Resources to attend O&S so as to discuss the Council’s plans for improvement in relation to organisational culture in light of the Inspection’s findings; and
3. To request that O&S consider the draft Best Value Improvement Plans prior to their agreement.

Action by:

Louise Russell (Service Head Corporate Strategy and Equality, Law Probity & Governance)