Agenda item

(To receive a report by Nigel West (Head of Democratic Services and Statutory Scrutiny Officer), which provides the Overview and Scrutiny Management Committee with the details of a Call In in relation to a decision made by the Leader of the Council (Executive Councillor for Governance, Communications, Commissioning, Finance and Property) on the Membership of the Local Government Association (Decision Reference: I013313))

A report from the Chief Executive was considered, which informed the Overview and Scrutiny Management Committee of the details of a Call In, which was referred to the Committee by the Proper Officer in accordance with paragraph 15(h) of the Overview and Scrutiny Procedure Rules of the Constitution. 

The Call In related to a decision made by the Leader of the Council (Executive Councillor for Governance, Communications, Commissioning, Finance and Property) on the Membership of the Local Government Association (LGA) (Decision Reference: I013313) on the Master Plan.  A copy of the report submitted to the Leader of the Council on 16 March 2017 and the subsequent Decision Notice were appended to the report presented.

The Chairman invited Councillor P M Dilks as the spokesperson for the Call-In, to outline the reasons for Calling-In the Leader of the Council's decision. The reasons submitted were detailed on page 14 of the agenda, which were expanded upon in the meeting as detailed below:

·       Although the basis of the decision was that the withdrawal from the LGA would produce an annual saving of £77,957, there had been no attempt to value the services delivered by the LGA, as detailed on paragraphs 3 and 4 of the decision report;

·       There were no financial details of what would be the cost of the services delivered by the LGA if they had to be bought elsewhere, in particular the lobbying of government;

·       There was no attempt to provide any evidence of the benefits to the County Council of the services provided by the LGA.  The spokesperson cited examples of such benefits, which included councillor and officer training and attendance at conferences and leadership programmes; subsidised peer reviews; the guidance and support provided on the Greater Lincolnshire Devolution Proposal; and the mentoring of County Councillors;

·       There was no evidence to support the claim that the LGA did not recognise the concerns of County Councils;

·       There was no recognition in the report of the damage to the County Council within the local government community.  It was also stated that the County Council would be seen as a 'freeloader' wanting to receive the benefits negotiated by the LGA but without paying the membership fee;

·       There was no mention in the report of the difficulties the County Council could face in future dealings with central government in getting its lone voice heard. It was also stated that the County Council would become isolated, as it would be the only Council outside of London not to be a member of the LGA.  The Spokesperson cited examples of when the LGA's lobbying had resulted in an increase in funding for local government which included the £2 billion of additional funding for adult social care services;

·       It was questioned whether the Deputy Leader of the Council would have been appointed to the important role of Children's Social Care Commissioner at Rotherham Council if she had not been a member of the Children and Young People Programme Board at the LGA; and

·       The overall lack of detail in the decision report was highlighted as a concern and it was also stated that this decision should have been subject to early engagement with scrutiny.

Members of the Committee, including Councillor M J Hill OBE, were invited to ask the spokesperson questions where the following points were noted: -

·       It was clarified why the Spokesperson had chosen to call in the decision at this stage, as the decision taken by the Leader of the Council was to serve 12 months' notice on the LGA and not necessarily to leave it.  A further decision would be required prior to 31 March 2018 to leave or to remain in the LGA.  In response, the Spokesperson stated that the report implied that this was a decision to leave the LGA;

·       The Leader of the Council advised that there were currently three London Boroughs that were not members of the LGA; and Leicestershire, Essex, and Surrey County Councils were also serving notice to withdraw from the LGA;

·       The cost of the LGA by per head of population in Lincolnshire was approximately 11p and a Councillor deemed this good value for money;

·       A Councillor questioned why Lincolnshire County Council was so poorly funded and whether the LGA should do more to support shire Councils.  In response, the Spokesperson advised that the County Council was so poorly funded owing to the national funding formula and not through a failing of the LGA;

·       A Councillor questioned whether it was the activity of the LGA that had led to Adult Social Care receiving additional funding or whether the lobbying undertaken by the Association of Directors of Adult Social Services; associated charities; the County Council Network and the national media had been responsible.

The Chairman invited the Leader of the Council to respond to the reasons for the Call-In, where the following points were noted: -

·       It was reiterated that the decision taken by the Leader of the Council was to serve 12 months' notice on the LGA and not necessarily to leave it.  A further decision would be required prior to 31 March 2018 to leave or to remain in the LGA;

·       It was clarified that the affordability of the membership fees was not the sole reason for the decision;

·       The Leader of the Council stated that the Deputy Leader's appointment at Rotherham Council was not necessarily connected to her involvement at the LGA.  It was felt that this was owing to the work the Deputy Leader had undertaken in the Children's Services department at Lincolnshire County Council which was reflected by the recent Ofsted ratings;

·       It was reiterated that Lincolnshire County Council was underfunded compared to other local authorities and it was felt that the LGA should do more to support county councils to ensure fairer funding.  The Leader of the Council cited examples where county councils were underfunded, which included the proportion of the income from new homes bonuses allocated to county councils compared to their levels of responsibility; it had become difficult for county councils to take a strategic overview of planning and waste services; and the lack of support from the LGA on the Government's requirement for elected mayors as part of devolution deals, which was deemed an unnecessary requirement by county councils.  It was stated that the LGA could do more to support the voice of county councils; and

·       It was reiterated that there were currently three London Boroughs that were not members of the LGA; and Leicestershire, Essex, and Surrey County Councils were also serving notice on the LGA and therefore Lincolnshire County Council would not be a lone voice.

Members of the Committee, including Councillor P M Dilks, were invited to ask the Leader of the Council and the Chief Executive, as the report author, questions where the following points were noted: -

·       It was hoped that the LGA would consider the funding formula and lobby the Government to ensure fairer funding across all sectors of local government, which would be undertaken by consulting all sectors.  This approach had been suggested by the Secretary of State for Communities and Local Government at a meeting, where the LGA was invited to propose a fairer funding formula for consideration;

·       A Councillor reiterated that the decision of the Leader of the Council should have been subject to early engagement with scrutiny, prior to the decision being taken.  In response, it was reiterated by the Leader of the Council that a further decision would be required by 31 March 2018 to either leave or remain in the LGA.  Early engagement with scrutiny would be undertaken on this matter during the budget setting process.  A detailed decision report would be produced for the decision maker's consideration;

·       Should the County Council take the decision to leave the LGA in 2018, there were other means of lobbying available to the County Council, such as the Rural Services Network or by funding other organisations to do so on behalf of the County Council; and

·       It was noted that the Leader of the Council had recently met with the Chairman of the LGA to outline the County Council's concerns.

The Committee debated the reasons for Call-In, together with the responses of the Leader of the Council, as well as any other additional points.  During the discussion the following points were noted: -

·       It was hoped that the LGA would make improvements in how it supported county councils, for example proposing changes to the national funding formula.  Should those improvements be made, it was hoped the County Council would remain a member of the LGA;

·       A Councillor reiterated that the membership fees of the LGA, equating to 11p per Lincolnshire resident was good value for money;

·       A decision report, including more information, would be presented to the Leader prior to 31 March 2018 to take a final decision on the County Council's involvement in the LGA.  This report would be subject to pre-decision scrutiny.

RESOLVED

That the decision of the Leader of the Council in relation to the Membership of the Local Government Association (I013313) be upheld.

NOTE: Councillor R B Parker wished his vote against the resolution be recorded.