ITEM 6 FUTURE ARRANGEMENTS FOR COLLABORATION IN YORKSHIRE & HUMBER Purpose • To set out options for future arrangements based on existing work and the changing context for councils and the public sector. In particular, given the forthcoming budget reductions, to consider the most cost effective approach to collaboration. Executive Summary • Collaboration between councils, police, fire and national parks has been organised through voluntary, subscription based associations: LGYH since 2006 and prior to this LGMB and ALA from 1980s onwards. • The context for collaboration is changing; • There are new agendas of localism and decentralisation: major efficiency and public service transformation. The scale of budget cuts and the need to work across boundaries will be critical for councils, police, fire and national parks. • Do we want to continue to collaborate across the public sector and across Yorkshire and Humber in this new context? • What would we want to collaborate on? How would this be facilitated and how much would that cost? These are the key questions raised in the report. • The paper looks at what makes collaboration successful; what issues we might want to work on and especially highlights: - workforce agenda and employers organisation - political and chief executive co-ordination and leadership - transformation of public service which means working with existing organisations such as the strategic Health Authority and Police on issues of common interest to all councils. • The paper highlights three options which have been developed and have taken account of what is happening in other regions; in the medium term it recommends a small secretariat with equally small employers in the light of budget constraints. • There may be the possibility of national funding for improvement to support collaboration of councils in Yorkshire and Humber and options allow for bolting on capacity to develop as councils would wish to. • There is £500k available from previous Yorkshire and Humber Assembly reserve to potentially redistribute. • The report includes a timeline which sets out the process for making decisions. 1 SECTION 1: THE CURRENT WORK AND FUNDING BASE OF LGYH 1. LGYH was established by councils in Yorkshire and Humber in April 2006. It was established as the regional partnership of local authorities to enable them to collaborate on issues of common purpose. Since 2006, the partnership has developed both its role and membership which has grown to include Police, Fire and National Park Authorities. 2. From its inception Councils made LGYH responsible for supporting and developing the Local Government Improvement and Innovation Partnership (LGIIP), a role previously undertaken by the Association of Local Authorities. LGYH successfully managed the £4.5m of Capacity Building Funds to support councils in Yorkshire and Humber. Following national developments this LGIIP became the Regional Improvement Partnership and then to the now Regional Improvement and Efficiency Partnership, managing around £27m over the period 2008/2011. 3. Following the Government’s Review of Sub National arrangements, Councils agreed to extend the role of LGYH and in 2008 it took on the role of Leaders’ Board and created a strategic partnership with Yorkshire Forward to deliver the Integrated Regional Strategy (IRS). In addition Leaders agreed that the Yorkshire and Humber Assembly should be abolished on 31 March 2009 and that the role, functions and funding previously managed and delivered by the YHA on Housing and Planning be transferred to LGYH. 4. Comprehensive details of the activities delivered and managed by LGYH during the year 2009/2010 are shown in the Annual Report which is at Annex A. 5. Following a decision by the new Coalition Government earlier this year, the Leaders’ Board has been abolished and the Joint Regional Board partnership dismantled as the IRS has also been abolished. The funding previously provided to LGYH by CLG for the functions of Housing and Planning were withdrawn and therefore, LGYH has reduced its staffing numbers significantly to take account of this sizeable budget cut. In anticipation of a tighter budget we have also relinquished the lease on King Street. 6. LGYH has reverted to its pre-Leaders’ Board arrangements with an Executive made up of Leader representatives from each of the four functional sub-regions. We need to take the opportunity to renew and reconsider the focus and nature of local government collaboration in Yorkshire and Humber starting from answering the question whether we need to collaborate in the changed context. SECTION 2: THE CHANGING POLICY, FISCAL AND GOVERNANCE LANDSCAPE OF THE PUBLIC SECTOR 7. Leaders have requested a review of arrangements given the significant changes in the operating context. This includes the government proposals for: a) Localism and Decentralisation Agenda • Development of new local governance arrangements including creation of elected police commissioners and shift in accountability for public health and abolition of PCTs. • Forthcoming White Paper proposals developing the Big Society theme creating resilient, self sufficient and self determining neighbourhoods and communities. • New Performance Regime reflecting local accountability and sector led challenge • Significant budget challenges, reduced budgets and focus on productivity and efficiency. 2 b) Changing Regional Architecture and Focus on Sub-Regional Working in Driving Economic Growth • The closure of regional Government Office. • Closure of Regional Development Agencies and creation of Local Enterprise Partnerships (LEPs). c) Focus on Rebalancing the Economy and Deficit Reduction • Impacts on public sector spending and policy approaches on the government role in addressing issues. • Abolition of CPA and removal of Audit Commission role in performance management to reduce costs of inspection. • Focus on private sector lead role in driving growth and on building an enterprise economy. SECTION 3: CHANGING CONTEXT FOR COLLABORATION 8. Existing arrangements were geared to a different context. To be fit for purpose we need to consider what collaboration is needed in the new context and how best to organise and apply scarce resources. Responding to Structural Changes 9. The closure of Government Office for Yorkshire and Humber will leave specific functions which will require local councils and police and fire to continue to collaborate. This includes: • Resilience, Flooding and Emergency planning. • Relationships with Whitehall. • Support to policy innovation across sectors particularly voluntary and community sector. • Sustainable development including climate change. 10. The functions fulfilled by Yorkshire Forward will predominantly transfer to LEPs. Discussions are taking place with businesses regarding Cross LEP work which may still be required to be commissioned by LEPs. 11. The functions formerly relating to the Integrated Regional Plan or Regional Spatial Strategy and Joint Regional Board will move to local and sub-regional level. How much is done through LEPs is yet to be determined. There may also remain a requirement for light touch collaboration between LEPs and strategic planning between councils on planning, transport and housing issues. 12. The Strategic Health Authority will go and there will be a regional arm of the new NHS management body. PCTs will disappear and GPs will commission locally and Public Health function will transfer to councils. This has major implications for councils across the area and we are currently working with Health agencies, social care and children’s directors to manage and influence the development of this agenda. Critical issues include standards, safeguarding and maximising resources across agencies. Meeting the challenge of tackling health inequalities using knowledge transfer and networks to drive the agenda will be a priority. Place based commissioning and procurement presents a challenge and opportunity. 3 SECTION 4: KEY AREAS FOR FUTURE COLLABORATION 13. Three main areas are identified as priority opportunities. a) Ensuring Effective Public Sector Transformation and Reducing Costs • The Localism and Decentralisation Bill which will be published in the autumn will potentially require collective response from Councils both in terms of responding to the proposals and collaborating on any common areas in terms of implementation. • A renewed focus for collaborative work on improvement is needed. The drive for productivity and efficiency will need to continue both at functional sub-regional level, across functional sub-regions and between councils. • The drive to reduce costs and meet budget reductions means radical and new approaches. The strengthening of collaborative capacity to drive this would make sense. • Current proposals and work on social care, children’s services, and cultural services are in place and need to be stepped up. • The focus of the RIEP has been more on improvement rather than efficiency although it has already delivered £69.43m efficiency savings to date. It is predicted to exceed £150m by the end of the programme. • The network of Directors of Finance have recently focussed on more collaborative working and the Total Capital work and dialogue with Treasury have sought to develop practical responses to the current financial situation. • With Health collaborative working is proving critical to ensure effective cross boundary working. There are significant workforce issues to be tackled and stimulation of new markets and use of healthcare technology.