Newly Created Local Authority Trading Company hits Financial Difficulties

Newly Created Local Authority Trading Company hits Financial Difficulties

The Your Choice (Ltd) LATC (colleagues in the services formally provided in Adults Services) has just revealed to the unions it is projecting a deficit for the close of the financial year of £700,000. This is over 3 times the projected deficit forecast in the Business Case. UNISON always queried the evidence for the Business Case for setting up the LATC and so this news is, whilst not surprising, is still extremely disappointing. In other words it would have been good to report UNISON’s basis for scepticism was unfounded.

There will be consultations involving our members and the unions. UNISON will want to meet with as many member groups as possible. Talk to your reps about setting up meetings.

As a result of the talks UNISON sought clarification from the senior manager responsible for Your Choice (Ltd) with regards the savings reported in the business case which went to Council committee in January 2012

The Business case reported the following:

 “6.33 Savings

6.34 There is a requirement within the Council’s Medium Term Financial Strategy (MTFS) for Adults Social Care to make a £200,000 saving in 2012/13 in respect of the Local Authority Trading Company. The analysis above shows that the Local Authority Trading Company will not generate this saving until 2013/14, so Adults Social Care will fund this cost for 2012/13, but will also make a greater surplus from 2014/15 onwards.”

UNISON is asking is asking if the £700,000 predicted shortfall solely refers to the LATC losses with additional £200,000 savings expected from adults social services as required under the Medium Terms Financial Strategy