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:
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.