Decision details

The Committee considered a report on the financial sustainability of the Council and the proposed review of the Council's Operating and Business Model.

Members were reminded that the budget report to Cabinet in November 2015 identified the need for a review of the Council's operating and business model and proposed that external consultants be appointed in the New Year to assist the Council in scoping and undertaking the review of its operating model.  The report identified that a key part of the brief would be the development of a public service operating model for the Council to enable it to be sustainable, within its forecast financial resource envelope, by 2020/21.

The Committee was informed that the report now presented set out the context for the review, the proposed initial brief for the consultants and recommended that the remit of the Political Governance Working Group be extended to include the future public service operating model for the Council and for it to make recommendations to the Cabinet and Full Council.  It was confirmed that the Working Group would receive reports from the consultants, as well as the views of officers thereon.

It was noted that a separate report would be presented to the Leader of the Council setting out the results of the procurement exercise to appoint the consultants.  A copy of that report was presented for consideration by the Committee later in the agenda.

Several members expressed reservations about the appointment of consultants to review the Council's business model.  In response officers advised that the Council could not plan its future in isolation and it was important to develop a future public service model for Lancashire in conjunction with its partners including district councils, the health sector and a combined authority for Lancashire.  Furthermore, it was important that the Council was not constrained in its thinking and that it had the benefit of independent challenge and a breadth of knowledge and experience of alternative business and operating models to draw upon in planning its future.  The Committee was informed that the Council did not have the capacity to do that alone and it was felt that the appointment of independent consultants would help the Council to review and develop a sustainable operating model.  It would also assist the Council in presenting its response to the Treasury and DCLG review of the future needs assessment/allocation formula and on the absolute level of resources required to meet statutory services. 

Resolved:  That the recommendations set out in the report to the Cabinet be noted and that no additional comments or suggested alternative recommendations be made.