Decision details

Councillor Lucy Smith, Cabinet Member for Children and Young People provided members with an overview of the report on acquiring properties for Children’s homes in Bury.

Members discussed the costs and how this decision will result in better quality outcomes for children and keeping them within their communities.

A member raised the importance of consulting with communities in prospective areas so they nurture the children. Councillor O’Brien confirmed that political leadership is needed on this issue and good engagement is required.

Decision:

Cabinet:

1. Approved the proposal to enter into negotiations for the in-principle purchase of two 5/6-bedroomed homes to be converted as required to residential children’s homes for residential placements for up to 6 children and associated staffing sleeping and office quarters.
2. Approved capital expenditure of up to £1.5m (assuming no external grant funding becomes available) for the purchase and refurbishment of the homes in (2.0) alongside associated operational management and transformation activity within Children and Young People’s Services to implement the proposed improvements and new management model.
3. Should grant monies be identified, prior to implementation, Cabinet agreed to provide delegation to the Executive Director of Children and Young People’s Services and Director of Finance to accept any grant funding for the acquisitions should it become available following this approval.
4. Agreed to delegate authority to the Executive Director of Place in consultation with the Executive Director of Children and Young People’s Services and Director of Finance, alongside the Portfolio Holder for Children and Young People to oversee selection of property for new children’s homes and associated legal agreements.
5. Noted that the Council will undertake a procurement in respect of necessary refurbishment works at the purchased properties to appoint contractors and enter into legal agreements for the refurbishment of the premises. The value of these works is such that they may be awarded in accordance with the officers’ scheme of delegation.
6. Noted the introduction of proposed operational service changes which will require authorisation through standard HR processes alongside the implementation of the overall project. This will include creating the proposed staffing structure (subject to Job Evaluation) and resources alongside prevention-based transformation activity.

Reasons for recommendation(s)

• The purchase of a maximum of 2 new homes within the locality of Bury to accommodate placements up to 6 Care Experienced Children and enable the Council to play an active role in the lives of its cared for children and meet its duty as Corporate Parents.
• Deliver Bury’s Children’s and Young People’s plan Outcome 3 to allow Children, young people and families to get the support they need locally to where they live.
• The approach will improve quality of provision by giving more effective control to Bury Council over all aspects of service delivery, whilst also reducing the unit cost of the operation substantially.
• Reduce the dependence of Bury Council on Private Sector residential provision, whilst establishing greater competitive tension in the market more generally. It is hoped that provision of this additional capacity will influence Private Sector providers to adjust unit costs to more realistic levels and will build on activity ongoing in neighbouring Authorities and the Region.
• Support the Council’s duty to find the most appropriate care setting for each child, by diversifying the current residential offer in the market-place.
• Enable the Council to take a proactive approach to supporting Care Experienced Children as recommended by Bury’s Corporate Parenting Board and the Children in Care Council (CICC), enabling children in its care to reach their potential.
• To align Bury’s ‘LAC Sufficiency' approach to the GM Children’s Sufficiency Strategy launched in 2020 - to find the right placement for a child or young person at the right time.
• To increase placements in the locality and reduce the need to place children outside of Bury leading to better social, education and economic outcomes and improving workforce efficiency.
• Enable further improvement in the quality of plans and planning for children, and greater choice of placements for children when they come into care as recommended in the 2021 Ofsted inspection.
• Reduce dependency on Private Sector delivery of residential care recognising significant price rises in the private sector; and allow Bury to secure a stronger foothold in the market with a local solution which offers better value for money.
• Local provision will ensure a balance in securing the right placement mix for children in care with associated cost savings as recognised in the council Medium Term Financial Strategy (MTFS).
• The Capital Board have approved £1.5m (assuming no grant funding becomes available) to acquire and renovate up to two properties, subject to cabinet approval.
• To allow up to two properties for the intended use to be purchased via delegated powers and immediately secure suitable properties when they come to market.

Alternative options considered and rejected:

• Do nothing – continue to be reliant on external privately run children’s homes including out of borough placements. This option was rejected as the Council is currently dependent on and susceptible to inflated placement costs, which offer poor value for money.
• Public/Private Partnership Vehicle – Would require setting up a Joint Venture and jointly holding responsibility for purchasing / renovating suitable properties. The Council’s control would be diluted, and a JV arrangement would require complex legal agreements and greater operational oversight and management. arrangements. For these reasons the option was rejected.
• VCSE – This would require significant market shaping and thus discounted due to the time needed identify suitable providers and undertake the necessary due diligence to ensure quality in practice standards.