Agenda item

Cabinet’s authority was sought for the creation of a Local Authority Trading Company, to be jointly owned together with Dover and Canterbury councils. The company would deliver Revenue, Benefits and Customer Services to the three Councils, which were currently being provided under contract by Civica. The current contract with Civica would expire in January 2025 and the new Local Authority Trading Company would take on the running of those services thereafter.

The company would be known as PartnershipOne, and approving these recommendations would allow the company to be formally registered at Companies House. Work could then commence in respect of the further establishment of the company, as detailed in the body of this report.

Members were advised that updates were made to the Shareholders Agreement and Articles of Association and Articles of Association attached as annexes to the minutes.

Councillor Yates proposed, Councillor seconded Duckworth and Cabinet agreed the following:

1.  Agree to exit from the contract with Civica UK Limited for the delivery of the Revenue, Benefits and Customer Services;

3.  Approve the LATCo service delivery vehicle as the preferred option for future service delivery of Revenue, Benefits and Customer Services;

4.  Approve the Business Case at Annex 1 setting out the rationale for the delivery of the aforementioned services by a Joint Teckal Company, a Local Authority Trading Company (LATCo), together with Dover and Canterbury, pursuant to Article 2 (2)(b) of the Local Government (Best Value Authorities) Power to Trade)(England) Order 2009;

5.  Agree the updated Shareholders Agreement and Articles of Association [attached to the published decision notice and minutes to the Cabinet meeting];

6.  Authorise the East Kent Services Committee, to the extent that it is not otherwise authorised to do so, to exercise the powers and functions of the Council to form the LATCo and to enter into the contract with it, (to include but not limited to); making decisions on behalf of the Council in relation to:

  i.  Establishing the LATCo and enter into any associated shareholders agreements.

  ii.  Appointing officers to the LATCo.

  iii.  Subscribing for shares in the LATCo

  iv.  Advancing money by way of loan capital to the LATCo to finance its capital requirements.

  v.  Entering into a contract with LATCo for the delivery of the Revenue, Benefits and Customer Services on behalf of each of the councils.

  vi.  Managing the contract.

  vii.  Renegotiating the contract.

 viii.  Varying the contract.

  ix.  Assigning the contract.

  x.  Novating the contract.

  xi.  Terminating the contract.

  xii.  Enforcing the contract.

 xiii.  The doing of anything in relation to the exercise of the powers and functions under Part ll of the Deregulation and Contracting Out Act 1994 and the orders and regulations made under it.

xiv.  Authorising entry into contracts* with third parties in relation to any functions of the Council which are not the Revenues, Benefits and Customer Services Functions but which can usefully be entered into in connection with or in order to facilitate contracts entered into, or to be entered into with regard to the Revenues, Benefits and Customer Service Functions.

*the contracts shall be entered into in accordance with each local authority’s respective Contract Standing Orders.

(xv) Anything which is calculated to facilitate, or is conducive to or otherwise expedient to (i) to (xiv) above.

7.  Authorise the East Kent Services Committee, to the extent that it is not otherwise authorised to do so, to exercise the powers and functions of the Council in its capacity as a shareholder of the LATCo, including the giving of any consent, approval or permission under the provisions of any shareholders agreement, BUT NOT the giving of any approval under the shareholders agreement to carry out any matters which are specified as Reserved Matters under the shareholders agreement;

8.  Agree that a report be considered by EKSC on final contract terms and, if approved, authorisation of entry into the contract and associated documentation;

9.  Agree that a new collaboration agreement be entered into between the authorities dealing with and reflecting:

(a)  The fact that the existing collaboration agreement makes specific reference to Civica (UK) Limited;

(b)  The management of the service contract with the LATCo and the rights of liabilities of the councils (inter se) in relation to the service contract with the LATCo;

(c)  The reduced number of services now being delivered as shared services e.g. ICT and Human Resources are no longer delivered as shared services.

(d)  The changes to the procurement regime effected by the Procurement Act 2023;

(e)  Data protection matters;

(f)  Such other matters as are considered appropriate by the monitoring officer.

10.  That the terms of such new agreement be determined by the Monitoring Officer in consultation with the Leader of Council.