When Barnet Council decided to embark on its mass outsourcing policy back in 2008, Barnet UNISON made a decision to enlist the support of the Professor Dexter Whitfield to help provide an analysis in order to try and engage in the process. Whilst the One Barnet mass outsourcing is now in its fifth year and the Council continues to embrace the political dogma of outsourcing, we are starting to see some of the earlier One Barnet outsourcing projects enter into difficulty. In this case it is the One Barnet Your Choice which was the first One Barnet project to be outsourced in February 2012.
The success of the Your Choice One Barnet Project was predicated on growth even though throughout the process no evidence was produced to substantiate these claims.
Below are a collection of extracts from all three reports produced by Dexter Whitfield on behalf of Barnet UNISON.
Links to the three reports are at the end.
2010
“The Adult Services option appraisal is limited in scope and depth of analysis and does not provide an acceptable evidence base on which to make fundamental decisions about the future provision of the services. The Council has a fiduciary duty to safeguard the public interest in the management of public services and assets and an obligation to maintain the integrity of the options appraisal and procurement processes. The Adult Social Care In-House Provider Services options appraisal fails to meet these obligations and responsibilities.” (ESSU Dexter Whitfield, Barnet UNISON 2010)
“If the Council intends to create the conditions for a repeat of post-transfer Fremantle style changes to terms and conditions then there will almost certainly be strident staff, trade union and community opposition.” (ESSU Dexter Whitfield Barnet UNISON 2010)
2011
“The LATC is, in effect, a cost cutting mechanism. An arms length trading company, with a proscribed budget, will be the service provider and employer, so the Council can relinquish responsibility for decisions taken by the company.” (ESSU Dexter Whitfield Barnet UNISON 2011)
“Detailed financial information has been excluded from the final version of the Business Case for no apparent reason.” (ESSU Dexter Whitfield Barnet UNISON 2011)
“Whilst it is true that in-house services cannot be purchased with a Direct Payment, this is not the case for a Personal Budget. A service user can decide to have part of the Budget used for in-house services and the rest of it paid out as a Direct Payment. Indeed a service user may wish to have none of the Budget paid out as a Direct Payment. These arrangements are already in place in the Council and we have been provided with a breakdown from Adult Social Services demonstrating that all these variations exist.” (ESSU Dexter Whitfield Barnet UNISON 2011)
“the Council intends to use personal budgets as a market mechanism to manipulate the market. They will be used to drive down costs, primarily, staffing costs, or to increase user charges so that users are forced to ‘pay more for less’.” (ESSU Dexter Whitfield Barnet UNISON 2011)
“The lack of a market analysis increases the risks for the LATC, service users and staff because a decision is being taken to establish a trading company without a clear understanding of the sector or market within which this company will have to operate.” (ESSU Dexter Whitfield Barnet UNISON 2011)
2012
“A small reduction in income or an increase in costs will result in substantial losses for Adult Services – the business plan concedes Your Choice company is financially vulnerable. There is no assurance provided on the quality or reliability of data and assumptions used.” (ESSU Dexter Whitfield Barnet UNISON 2012)
“The policy of self-sustaining services, cost reduction strategies and pressure to maximise income to achieve profits will lead to new and increased charges.” (ESSU Dexter Whitfield Barnet UNISON 2012)
“Staff will face increased pressure on staffing levels, morale, working practices and terms and conditions, potentially leading to job losses and redundancies.” (ESSU Dexter Whitfield Barnet UNISON 2012)
Barnet UNISON demand: “The block contract transitional phase for Adult Services should be extended to three years.” (ESSU Dexter Whitfield Barnet UNISON 2012)
“The business case had a number of shortcomings:
• Corporate impact and strategic risks are inadequately addressed.
• Neither a value-for-money assessment nor a sensitivity analysis has been carried out. In addition, a cost benefit appraisal that includes wider impacts (economy, equalities, sustainability, environment) and distributional impacts.
• Fundamental questions and concerns regarding risk assessment, employment issues and equalities policies remain.”
“There has been a significant change in the financial forecasts of Adult Services between the business case (approved by Cabinet Resources Committee in May 011) and the publication of the Barnet Group Business Plan in early January 2012, seven months later …… Either gross mistakes were made in the preparation of the business case, or a new series of spending cuts and/or closures are planned to achieve this level of expenditure reduction.” (ESSU Dexter Whitfield Barnet UNISON 2012)
“The response to the high risks in Your Choice consists of cost reduction programme, deliver quick wins and programme further efficiencies, and close down schemes/services that cannot support themselves financially longer term. All the action in risk management has an April 2013 deadline.” (ESSU Dexter Whitfield Barnet UNISON 2012)
Links
1. ESSU Dexter Whitfield Barnet UNISON 2010 http://www.barnetunison.me.uk/sites/default/files/barnet-adults-options-appraisal%202010.pdf
2. ESSU Dexter Whitfield Barnet UNISON 2011 http://www.barnetunison.me.uk/sites/default/files/analysis-of-business-case-for-local-authority-trading-company%202011.pdf
3. ESSU Dexter Whitfield Barnet UNISON 2012
http://www.barnetunison.me.uk/sites/default/files/latc-analysis-2012.pdf
