Formation of Local Government Yorkshire and Humber
REPORT OF THE CHIEF EXECUTIVE | CABINET 22ND MARCH, 2006 |
FORMATION OF LOCAL GOVERNMENT YORKSHIRE AND HUMBER |
1. | PURPOSE OF THE REPORT |
1.1 | This report relates to proposals for the formation of a new regional local government organisation called Local Government Yorkshire and Humber (LGYH). This would be created by reconstituting and renaming the existing regional Local Government Management Board (LGMB) and transferring to LGYH the functions, assets (including staff) and liabilities of the Yorkshire and Humber Association of Local Authorities (YHALA), which would then be dissolved. |
1.2 | The City Council, as a constituent Authority, needs to decide if it wishes to agree to the dissolution of the YHALA on the basis described in paragraph 1.1 and remain a member of the reconstituted LGMB (i.e. LGYH) and, if so, to identify representatives to serve on LGYH, to agree to pay levies to LGYH for 2006/07 and to agree, in its capacity as a member of the LGMB, to the transfer of the assets, staff and liabilities of YHALA to LGYH. |
2. | BACKGROUND |
2.1 | The City Council is one of 22 Local Authorities that agreed to establish a Regional Assembly for Yorkshire and the Humber in 1996. Since that time, changes have been made in the way that the organisation operates. At present, there is a Yorkshire and Humber Assembly (YHA) that comprises the region’s 22 Local Authorities and representatives from a number of other social, economic and environmental partners from business, public sector agencies, education and training bodies, trade unions and the voluntary and community sector. |
2.2 | The YHA presents itself as the voice of the region, its aim being to work with others to improve the region’s performance and deliver a better quality of life for all. It promotes and lobbies for the best deal for Yorkshire and the Humber, in Whitehall and in Brussels. The Assembly works with Yorkshire Forward and others to develop strategies to improve the quality of life for people living and working in Yorkshire and the Humber. |
2.3 | Alongside the YHA sits the Yorkshire and Humber Association of Local Authorities (YHALA), of which all the 22 Local Authorities are members. In conjunction with the YHALA Leaders’ Group meetings and Association meetings, the YHA supports local government to improve, innovate and share best practice. |
2.4 | The LGMB for Yorkshire & Humberside is an employers' organisation for local government and is governed by an Employers' Forum that is formed by constitution, the membership of which comprises the 22 Local Authorities and 4 Fire Authorities. It is a key source of support for its constituent organisations in all aspects of management. The Council is represented on the Employers’ Forum by Councillors Jan Fiore and Keith Hill, with one vacancy. |
3. | DEVELOPMENTS |
3.1 | During 2004, Local Authority members of YHALA/YHA undertook a review of funding structures and workings of the two organisations. This review reported to YHA in February 2005. Its recommendations were that the two organisations should separate and that the YHALA should merge with the LGMB to form a new expanded regional local government body, LGYH. It also recommended that YHA/YHALA subscriptions should be reduced by 50% of the 2004/5 levels and that the aim should be to sustain subscriptions at about this level in the medium term, taking full account of the consequences on the range of services delivered. |
3.2 | The Chief Executive Designate for the proposed newly reconstituted organisation has been leading the implementation of the Review across YHA/YHALA and the activity necessary to allow LGYH to function from 1 April 2006, including developing a new constitution, arranging staffing, and preparing a Business Plan and budget for LGYH, bringing together the work of YHALA with that of LGMB. |
4 | PROCESS |
4.1 | Before 1st April 2006, three linked processes need to take place to enable LGYH to be inaugurated, as follows:-
(Note: The existing YHALA Constitution requires the approval of two thirds of local authorities in membership of the Association and the outcome of both meetings will be reported orally at the Cabinet meeting).
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4.2 | All of the Local Authorities are currently members of all three regional organisations. The plan is that there would only be two organisations from 1st April 2006, but subscriptions would reduce and there would be more openness and transparency between the organisations as to responsibilities and costs. |
4.3 | A draft Business Plan for the LGYH has been developed and a shadow budget set which allows delivery of the Business Plan priorities. This shadow budget has been agreed at meetings of the implementation Partnership Group, the Employers’ Forum and the ALA Leadership Team and Leaders’ Group. The group of staff identified as working on YHALA functions will be transferred to LGYH. This transfer will take place under TUPE–like arrangements. Priority work areas for LGYH during 2006/07 have been identified in the draft Business Plan as follows:-
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5. | EMPLOYERS’ FUNCTIONS |
5.1 | The new constitution, set out at Appendix 1, makes provision for the current Employers’ Forum to be replaced by a new Standing Committee of the LGYH to be known as the Employers’ Committee, the aim of which shall be to promote effective working between the employers and the employees, regulate relations on behalf of the employers and represent the LGYH in the Regional Joint Council for negotiation/consultation with the Trade Unions. The Council will still be entitled to have three representatives and it is suggested that the existing representatives be appointed to serve on the successor body. |
6. | LGYH RELATIONSHIP WITH YORKSHIRE AND HUMBER ASSEMBLY |
6.1 | The Formation of LGYH puts into effect the collective decisions of Member Authorities arising from the review of YHA/YHALA to separate YHA and YHALA and to merge YHALA with LGMB. YHA and LGYH will have separate business plans, budgets and management. YH Leaders have agreed that any financial contribution that they wish to make to YHA, will be collected through LGYH. The governance relationship between LGYH and YHA remains as it was under YHALA, i.e. LGYH will nominate leaders to YHA, to chair YHA and as members of YHA Regional Executive Board. |
7. | FINANCIAL IMPLICATIONS |
7.1 | Members joining LGYH will need to agree to pay levies to LGYH for 2006/07, to transfer funds, reserves and assets of YHALA and its potential liabilities, including those associated with staff, to LGYH, details of which are outlined in Appendix 2 of this report. |
7.2 | At the YHALA Leaders’ Group held on 3 November 2005, it was agreed that from 2006/07 onwards there would need to be separate budgets for LGYH (incorporating the YHALA and LGMB budgets) and the YHA. Because constitutional arrangements had yet to be amended, it was still necessary to consider a consolidated budget for formal approval by the YHALA Leaders’ Group held on 9th February, 2006. |
7.3 | A breakdown of the levies to be collected by the LGYH is attached as Appendix 3 to the report. Each constituent Authority’s proportion of the levy is assessed by reference to its size of population. Sheffield’s subscriptions amount to £114,266, which is ‘capped’ at the 2005/6 level. The existing levies are currently funded across all Directorates within the Council as detailed below:- £’000 Children and Young Peoples’ Service 9 Development, Environment and Leisure 2 Neighbourhoods and Community Care 3 Chief Executive’s 100 Total 114 Since the Council will in future receive one bill for the levies, it is proposed to centralise the budget (by way of cash limit adjustments) within the Chief Executive’s Directorate (Central Costs). |
7.4 | As to how the subscriptions represent value for money, LGYH will ensure the collective interests of Member Authorities are protected at regional and national level; will support the effective management of Authorities’ relations with their workforces and provide a range of capacity building opportunities and services. |
7.5 | If authorities do not wish to remain members of LGMB/LGYH, then arrangements for withdrawal from membership would require over 12 months’ written notice to be sent before 31 March 2006 to expire on 31 March 2007. |
8. | LEGAL IMPLICATIONS |
8.1 | Section 2 of the Local Government Act 2000 gives the City Council broad powers to promote the social, economic and environmental well-being of the City or some or all of its inhabitants. This power therefore provides the legal basis for the Council’s participation in the YHA and LGYH if Cabinet agrees that this is likely to promote one or more of these aspects of well-being. This power has, however, to be exercised with regard to guidance issued by the Secretary of State and also to the Council’s ‘community strategy’ prepared pursuant to Section 4 of the Act (in Sheffield’s case the latest City Strategy produced in conjunction with the Sheffield First Partnership). The proposals in this report are not at variance with the Secretary of State’s guidance. The City Strategy recognises the importance of Sheffield playing a role within the wider Yorkshire and Humber region, with a view to improving economic growth in the city region and the North as a whole. |
8.2 | Members should note that the new constitution prepared for LGYH governs an unincorporated association, and consequently provides for all the members of the organisation being jointly liable for any liabilities of the organisation that cannot be met out of the organisation’s own resources. The constitution also provides that, on a dissolution of LGYH, a special meeting of the members would be held which would determine the manner of disposal of any surplus funds of LGYH, and the apportionment of any outstanding liabilities between constituent organisations. |
9. | EQUALITY IMPACT ASSESSMENT |
9.1 | There are no equal opportunities implications directly arising from the recommendations in this report. In its constitution to be adopted, the LGYH states that it is fully committed to equality and opposes all forms of discrimination. It will work positively to promote inclusivity within its membership, workforce and the wider community. |
10. | RECOMMENDATIONS |
10.1 | It is recommended that Cabinet agrees that participation in the Yorkshire and Humber Assembly and Local Government Yorkshire and Humber is in the interests of Sheffield and its inhabitants and is likely to promote their economic, social and environmental well being, and that accordingly: - |
(a) approval be given to the new arrangements outlined in the report now submitted, including the proposed new Constitution of LGYH set out in Appendix 1 to the report and the transfer of the functions, assets, staff and liabilities of the YHALA to LGYH and for the Council to remain a member of LGMB/LGYH from 1st April, 2006; | |
(b) approval be given for the payment of the Council’s subscription to LGYH for 2006/07 amounting to £114,266 and that authority be delegated to the Chief Executive to approve the subscription payments to LGYH for subsequent years; and | |
(c) the Leader of the Council, or her nominee, be authorised to represent the City Council as a member of LGYH and that Councillors Jan Fiore and Keith Hill (one vacancy remaining) be appointed to the new LGYH Employers’ Committee and that the next meeting of the City Council be requested to approve these appointments. | |
Sir Robert Kerslake
Chief Executive
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