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Life After The Council LATC - A New Solution

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Life After The Council LATC - A New Solution

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    1. Life After The Council (LATC) - A New Solution Mike Walsh and Russell Thompson Directors Care and Health Solutions Ltd www.essexcares.org www.careandhealthsolutions.co.uk

    2. www.careandhealthsolutions.co.uk

    3. Setting the Scene Policy Agenda Putting People First Self Directed Support (SDS) Commissioning Led Councils Save Money Local Authority Social Care Provider Services Community Care Act 1990 Difficult Externalisations The Future - In the context of Putting People First www.careandhealthsolutions.co.uk

    4. Setting the Context Giving a future Setting them free from Council Constraints Releasing the creative juices Commercialisation Public Sector Spending Cuts Greater accountability and performance www.careandhealthsolutions.co.uk

    5. Transfer to Market the Options Traditional Solutions Trade Sale/Tender Social Enterprise new start up The new kid on the Block Local Authority Trading Companies www.careandhealthsolutions.co.uk

    6. Local Authority Trading Companies S95(1) LGA 2003 SoS can make order allowing Authorities to do for a commercial purpose anything they are authorised to do for ordinary functions LG (Best Value Authorities) (Power to Trade) (England) Order 2009 Allows best value authorities to do for a commercial purpose anything which it is authorised to do for the purpose of carrying on any of its ordinary functions Applies conditions www.careandhealthsolutions.co.uk

    7. The Essex Experience Pre-transfer modernisation, visioning and change management Governance: stakeholder sign-up, Scrutiny and Executive sign off for the model Implementation: dedicated Programme, high level sponsorship, quality communication Time line www.careandhealthsolutions.co.uk

    8. Essex Cares Ltd 850 TUPEd Staff 33m Turnover 3 (+2) year tapering Performanced Managed Block Contract Shareholder Relationship Shareholder Liaison Group www.careandhealthsolutions.co.uk

    9. Programme Workstreams Contract, service spec, KPI regime and payment mechanism TUPE and staff communication Finance Back Office Services (IT, Finance, HR, Facilities Management, Audit) Asset Management Quality Multi-Media Communications and Change Management www.careandhealthsolutions.co.uk

    10. The Benefits Preferred solution by all stakeholder groups including Council Staff, Service Users, Trade Unions and Service User Groups. Cheaper than other transfer solutions. The Council owns the LATC and so any dividend is paid back to The Council for further investment in services, and so there is still a link for Council influence and branding. With a tapering contract it forces the services to become commercially competitive, whilst preparing for SDS, and thereby produces savings. Depending on the size of the services there are significant opportunities for further back office and corporate savings. ALMO Solution for smaller Authorities www.careandhealthsolutions.co.uk

    11. The Benefits Total financial savings in Essex will be around 10% pa of contract value. Services are free from Council constraints to become more adaptable and responsive in meeting the Personalisation Agenda. Change and clarity that comes to the relationship between the LATC and the Commissioners because of the contract. It provides an opportunity to test the value of services whilst improving their competitiveness. It provides the potential to generate a capital receipt from sale, of all or part, in the future. Allows Councils to become Commissioning led organisations www.careandhealthsolutions.co.uk

    12. Business Plan Modelling Legal requirement to evaluate options on a financial basis This will involve:- Comparators with Business as Usual Results Valuation of other Benefits to Central Overheads Provide LATC with 1st Year Performance Plan Provide Financial Analysis for Potential Funders www.careandhealthsolutions.co.uk

    13. Summary and Conclusions Opportunity for the future Retaining a controlling interest as Council Achieving efficiency, savings, profits and dividends Most cost effective solution Improving measurable service delivery Facilitating responsive services to Personalisation Becoming a market shaper and leader www.careandhealthsolutions.co.uk

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