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View Detailed Report EXECUTIVE DECISION RECORDING SYSTEM : REFERENCE NUMBER <> CABINET 27TH OCTOBER 2008 BUILDING SCHOOLS FOR THE FUTURE: STRATEGY FOR CHANGE PART TWO REPORT OF EXECUTIVE DIRECTOR CHILDREN YOUNG PEOPLE AND FAMILIES 1.0 PURPOSE OF REPORT The purpose of this report is to seek approval of the draft Strategy for Change Part Two (SfC2) attached. 2.0 RECOMMENDATION(S) 2.1 To approve the Strategy for Change Part 2 and, specifically, to approve: 2.1.1 the proposed phasing for the Programme as outlined at Appendix L; 2.1.2 the financial assumptions at Section 6.2 and the Council contribution to the Programme, as set out in the Medium Term Financial Strategy 2009/10; 2.1.3 the Estate options, as set out in Section 14 of the Strategy for Change 2 report. 2.2 Cabinet are requested to exempt the report from call-in so that the Council can meet the Partnerships for Schools deadline for submission of 31st October 2008. 1. INTRODUCTION/BACKGROUND 1.1 The purpose of this report is to request the approval of the Strategy for Change Part Two (SfC2), for formal issue to the Department for Children, Schools and Families (DCSF) by Partnerships for Schools (PfS). 1.2 The SfC2 sets out, at a high level, the Local Authority’s plans for transforming secondary education in Oldham and requires submission by the end of October. The next stage of development will be the submission of an Outline Business Case (OBC), required by January 2009. 2. CURRENT POSITION 2.1 The BSF Programme is managed nationally on behalf of the Department for Children, Schools and Families (DCSF) by Partnerships for Schools (PfS), and is required to go through a series of stages. Significant progress has been made in developing and shaping the Programme locally, as set out below. 2.2 As Members will recall, Oldham submitted its Readiness to Deliver in October 2007, and its Strategy for Change Part One in January 2008, with further amendments submitted in June 2008. 2.3 Together with the SfC2 and consultation work, detailed options appraisal at the level of individual schools has commenced, which will result in feasibility studies and strategic briefs and costings for each school. These, supported by the SfC, will form the basis of the OBC, due to be submitted in January 2009. 2.4 The OBC is a critical document within the BSF Programme, which forms the basis of the procurement exercise, commencing in early 2009. This process will identify the private sector partner that will work with the Council to transform secondary education and deliver the BSF Programme. 2.5 In order for the OBC to be agreed by PfS, the Council will need to have made decisions relating to the full range of issues arising from the BSF Programme, including: • the general direction of the Strategy for Change; • detailed proposals on re-organising mainstream and special education; • statutory consultation; • estate options; and • affordability. In addition, the three academy feasibility projects will have to be completed. 2.6 The SfC2 document represents the Council’s current position in terms of its BSF proposals. The document has been appraised by PfS and meets the criteria for the Programme. This approval is essential to allow the Council to move to the next stage of the BSF process. Approval means that the SFC2 becomes the basis of the Outline Business Case. 2.7 The SfC2 document is the outcome of a significant amount of work involving key stakeholders, and consultation has been undertaken with those key stakeholders, including secondary headteachers, through the BSF workstreams, Project Board, Oldham Association of Secondary and Special School Headteachers. An earlier draft was presented to Overview and Scrutiny Committee on 24th September 2008. 3 OPTIONS/ALTERNATIVES 3.1 The BSF Programme is the only vehicle available for such significant capital investment in secondary schools, which will enable transformation on the scale planned. Given the level of investment, there are clear requirements placed upon the Council to demonstrate how we are going to accelerate and add value to the direction of travel already set by Government policy. Plans and proposals for delivering BSF therefore have to reflect the “transformation” which the Government aspires to achieving in modernising secondary education. 3.2 Effectively, the choice is between embracing the challenge of BSF or not. It is important to note, however, that not embracing BSF does not mean that the status quo can prevail. The Council continues to have a duty to make decisions about reorganising secondary education in response to a range of internal and external pressures. One option is to address the educational challenges of the Borough without BSF investment. 3.3 The other option is to work with the requirements of the BSF programme and access a significant capital investment in Oldham’s schools subject to the Authority meeting the criteria set by central government. These criteria include addressing condition and suitability of buildings, surplus places, and changes to drive up attainment and transform learning (which includes embracing changes of governance, innovation around ICT, personalised learning, 14-19 developments and integrated services). The current Strategy for Change contains the proposals for Oldham based on meeting these criteria, with an additional and very important commitment to addressing community cohesion within the wider plan. 4 PREFERRED OPTION 4.1 The preferred option is to approve the SfC2 which shows how the criteria for BSF can be applied to Oldham’s circumstances, with a view to accessing unprecedented investment in the transformation of secondary learning. 4.2 Approving the SfC2 means supporting the overall direction of change described in the Strategy, and to endorse the particular proposals contained within it, particularly in relation to: • proposals around school closures; • proposals around changing forms of governance, including academies; • proposals for special educational needs (SEN) and specialist provision; and • proposals for post-16 provision. 5 CONSULTATION 5.1 The current consultation process was launched on September 17th, running through until the beginning of November. This process is being used to inform the public of the detailed proposals within the BSF Programme, as reflected in the SfC2, and seek their views. 6 FINANCIAL IMPLICATIONS 6. 1 The current financial models are based upon and affordability envelope of: £m PfS Capital Build Funding £196.4 Capital grant and PFI credits LA contribution £25.0 Borrowing PfS ICT investment £23.8 Capital grant £245.2m 6.2 The current projections for the scheme are based upon the following assumptions: a) the build programme meets DCSF Building Bulletin 98 requirements; b) that the Academies programme will be contained within the funding provided by PfS; c) that the ICT capital costs are contained within the capital grant funding. 6.3 The Council’s Medium Term Financial Strategy 2009/10 includes a Council commitment to the BSF programme of £2.3m from 2009/10, to meet the ongoing borrowing costs associated with the programme (£1.5m) and £800k for the cost of implementation. 6.4 The Schools Forum have also made a commitment that the schools budget will earmark funding of £0.750k in 2009/10 rising to £1.9m by 2011/12 to fund the potential ongoing revenue costs for the PFI. 6.5 In summary the capital cost of the programme are £245.2m. The ongoing revenue costs being: a. £1.5m for the borrowing costs associated with the Council’s commitment to invest £25m into the BSF programme. b. £1.9m funded from the Dedicated Schools Grant to fund the projected costs of the PFI unitary charge of the 2 new schools. 7 CORPORATE HUMAN RESOURCES COMMENTS 7.1 There are no immediate direct HR implications applicable to these recommendations, however any impact for Authority staff will be evaluated and will form part of the later stages including the Outline Business Case . The detailed proposals will lead to the transfer of staff under the TUPE regulations that will require full consultation with staff and trade unions. (GW) 8 LEGAL SERVICES’ COMMENTS 8.1 The submission of the SfC2 is the first formal stage of entry into the BSF process. It sets out the Council’s strategy for delivery of its educational vision through BSF. The Council will only be able to submit an OBC once it has approval for its Strategy for Change. 8.2. The PfS guidance on SfC2 advises that authorities should confirm in their SfC2 member commitment to, and acceptance of, the Local Educational Partnership, model of procurement and delivery of BSF. On September 1st 2008, Cabinet approved its commitment to this process. 8.2. Continuation with the BSF process will require a range of further executive decisions, including authorisation to submit the Outline Business Case, the outcome of consultation, school opening/closures, acquisition and disposal of land for academies, approval to submit planning applications and at various stages of the procurement process. These will be brought forward for decision at the relevant time. (SL) 9 TREASURER’S COMMENTS 9.1 The BSF programme will require regular review to ensure the financial assumptions are monitored and any risks highlighted to members during the course of the BSF programme. 9.2 The resources contained in the affordability envelope are dependent on the Council’s and Schools Forum commitment to invest priority funding in 2009/10. These commitments being subject to agreement of the schools budget at Schools Forum on 12th November 2008 and the Council’s budget at full Council on 10th December 2008. 9.3 The SfC2 procurement strategy is based upon the preferred PfS procurement process the Authority is committed to the adoption of PfS standard documentation.
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