Future Delivery of Post 16 Education & Training in Newport
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STRATEGIC OUTLINE CASE The Future Delivery of Post 16 Education & Training in Newport Newport City Council November 2010 CONTENTS PAGE 1 EXECUTIVE SUMMARY .......................................................................................................4 1.0 INTRODUCTION.............................................................................................................4 1.1 STRATEGIC CASE.........................................................................................................4 1.2 ECONOMIC CASE..........................................................................................................5 1.3 COMMERCIAL CASE .....................................................................................................7 1.4 FINANCIAL CASE...........................................................................................................8 1.5 MANAGEMENT CASE....................................................................................................8 1.6 RECOMMENDATION .....................................................................................................9 2 THE STRATEGIC CASE .....................................................................................................10 2.0 INTRODUCTION...........................................................................................................10 PART A: THE STRATEGIC CONTEXT ..................................................................................11 2.1 ORGANISATIONAL OVERVIEW ..................................................................................11 MAP OF CITY OF NEWPORT................................................................................................12 2.2 BUSINESS STRATEGIES ............................................................................................23 2.3 OTHER ORGANISATIONAL STRATEGIES & CONTEXT............................................25 PART B: THE CASE FOR CHANGE ......................................................................................27 2.4 INVESTMENT OBJECTIVES........................................................................................27 2.5 EXISTING ARRANGEMENTS ......................................................................................30 2.6 GAPS IN CURRENT POSITION & BUSINESS NEEDS ...............................................55 2.7 POTENTIAL BUSINESS SCOPE & KEY SERVICE REQUIREMENTS........................58 2.8 MAIN BENEFITS CRITERIA .........................................................................................58 2.9 MAIN RISKS .................................................................................................................62 2.10 CONSTRAINTS...........................................................................................................65 2.11 DEPENDENCIES........................................................................................................65 3 THE ECONOMIC CASE ......................................................................................................66 3.0 INTRODUCTION...........................................................................................................66 3.1 CRITICAL SUCCESS FACTORS..................................................................................66 3.2 LONG LIST OF OPTIONS ............................................................................................68 3.3 SCOPING OPTIONS & SERVICE DELIVERY OPTIONS.............................................69 3.4 SERVICE DELIVERY OPTIONS...................................................................................79 3.5 SERVICE SOLUTIONS OPTIONS................................................................................81 3.6 IMPLEMENTATION OPTIONS .....................................................................................82 3.7 FUNDING OPTIONS.....................................................................................................83 3.8 THE LONG LIST: INCLUSIONS & EXCLUSIONS ........................................................83 3.9 THE PREFERRED OPTION .........................................................................................85 3.10 PROPOSED MANAGEMENT STRUCTURE FOR PREFERRED OPTION ................87 4 THE COMMERCIAL CASE..................................................................................................91 4.0 INTRODUCTION...........................................................................................................91 4.1 REQUIRED SERVICES ................................................................................................91 4.2 POTENTIAL FOR RISK TRANSFER ............................................................................91 4.3 PROPOSED CHARGING MECHANISMS ....................................................................92 4.4 PERSONNEL IMPLICATIONS (INCLUDING TUPE) ....................................................92 4.5 PROCUREMENT STRATEGY AND IMPLEMENTATION TIMESCALES .....................92 2 4.6 FRS 5 ACCOUNTANCY TREATMENT.........................................................................92 5 THE FINANCIAL CASE .......................................................................................................93 5.0 INTRODUCTION...........................................................................................................93 5.1 REVENUE FUNDING STREAMS .................................................................................93 5.2 CAPITAL FUNDING STREAMS....................................................................................93 5.3 EXPECTED FINANCIAL BENEFITS – PREFERRED OPTION ....................................94 5.4 ALIGNMENT WITH 21ST CENTURY SCHOOLS PROGRAMME..................................96 5.5 MANAGEMENT COSTS ...............................................................................................96 5.6 OVERALL AFFORDABILITY.........................................................................................96 6 THE MANAGEMENT CASE ................................................................................................98 6.0 INTRODUCTION...........................................................................................................98 6.1 PROGRAMME MANAGEMENT ARRANGEMENTS.....................................................98 6.2 PROJECT MANAGEMENT ARRANGEMENTS............................................................98 6.3 MANAGEMENT ARRANGEMENTS ...........................................................................101 ANNEX .................................................................................................................................108 INDEX OF TABLES ..............................................................................................................109 3 1 EXECUTIVE SUMMARY 1.0 INTRODUCTION This Strategic Outline Case (SOC) has been prepared by Newport City Council in consultation with, and on behalf of the Learning Partnership. This seeks to develop and incorporate much of the work carried out by the Learning Partnership in the Strategic Outline Programme dated 14th October 2009. The Strategic Outline Case is prepared using the agreed standards and format for business cases, as set out by HM Treasure and Welsh Assembly Government. The format is the Five Case Model, which comprises the following key components: ¾ The strategic case section. This sets out the strategic context and the case for change, together with the supporting investment objectives for the scheme. ¾ The economic case section. This demonstrates that the organisation has selected a preferred way forward, which best meets the existing and future needs of the service and is likely to optimise value for money (VFM). ¾ The commercial case section. This outlines what any potential deal might look like. ¾ The financial case section. This highlights likely funding and affordability issues and the potential balance sheet treatment of the scheme. ¾ The management case section. This demonstrates that the scheme is achievable and can be delivered successfully in accordance with accepted best practice. In its primary aim of seeking to raise standards, the Local Authority, schools and partner education providers in Newport face a particular set of considerable challenges. There is currently a wide discrepancy in the achievements of different groups of learners in Newport, especially in Key Stage 4 and Post 16. Despite significant improvements at KS4 over the last two years the overall rate of improvement has barely kept pace with national trends and the proportion of young people who become disengaged from education and training after Year 11 has been among the highest in Wales. This Strategic Outline Case seeks approval to invest an estimated £7.7m of revenue funding in “The Future Delivery of Post 16 Education and Training in Newport”. 1.1 STRATEGIC CASE The Strategic Case for transformation is presented in two parts: an updated profile of provision and the main elements of the case for change. The profile of education and training provision includes: an outline of the city’s economic and skills needs, a brief introduction to main education and training providers and predicted numbers of learners over the next five years. There are also sections outlining future strategies for developing Newport’s growing provision for Welsh medium education and arrangements for faith-based education provision. The SOC presents a compelling case for change under the general aim of