UNISON Analysis of Business Case for Local Authority Trading Company

Dear Councillors

RE: UNISON Analysis of Business Case for Local Authority Trading Company

Please find enclosed copy of our report here

The Council business case is 198 pages and was only released for consultation with our members and members of the public late on Monday 16 May 2011. We have prepared a brief response to highlight our concerns and proposals which I hope you will take time to read and consider. Local Authority Trading Companies are relatively new service delivery model hence our concern about rushing through a proposal which affects social care services. Earlier this week were informed that another LATC Chelsea Care has gone into liquidation. I am enclosing the full report and leave you with four key points: Value for money Value for money was not proven in the draft business plan and exclusion of the financial chapter from the published version of the plan, makes it impossible for service users, staff and trade unions to examine and challenge the viability and sustainability of the business case. Risks Risks for service users and staff have been deliberately understated because the Council is fixated with developing the LATC model so that it can “assess the commercial viability of other services before any longer-term decision is taken regarding their divestment.” The Council’s strategy is to transfer risks to service users and staff, so it can relinquish responsibility for service provision and employer obligations. We understand that Chelsea Care, a London Borough of Kensington and Chelsea LATC, has allegedly gone bankrupt! Serious shortcomings A Business Case should provide a strategic, economic, financial, operational and management case for a change in service delivery, investment or a specific project. Shortcomings identified in the trade union Interim Critique have not been addressed. Lack of market analysis A decision is being taken to establish a trading company without a clear understanding of the sector or market within which the company will operate. The Council seeks to commercialise services, yet fails to be fully prepared for the commercial consequences. Best wishes John Burgess Branch Secretary. Barnet UNISON Standing up for staff and public services Not for onward transmission in whole or part without permission

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Barnet UNISON LATC bus caseFINAL.pdf478.34 KB