South West council to weigh up commissioning vs collaborating authority models amid concerns over long-term viability

Councillors at West Somerset have agreed to investigate whether the district council should become a ‘commissioning authority’ with only a small nucleus of staff or a 'collaborative authority' sharing management and services.

The decision at a full council meeting came just weeks after a report from the Local Government Association warned that the authority might not be viable in the long term. 

Councillors backed a recommendation that work commences on drafting the necessary protocols that would apply during the process of the council estabishing itself as one of the two types of authorities.

West Somerset will work with Taunton Deane Borough Council to prepare a draft business case for the commissioning or sharing of services, management and staff.

The authority's chief executive will, subject to certain approvals, work with the LGA to hire a person suitably experienced to assist the council and provide independent advice.

A report prepared ahead of last night’s meeting had recommended the 'commissioning authority' approach. It said: “There are numerous examples where two or more local authorities have successfully joined together to share services and/or management whilst retaining their individual democratic base and identity.

“However, the situation that the council finds itself in has already been described as unique and unprecedented and as such it is felt that adopting a tried and tested ‘shared services’ approach will not in itself be the complete answer. There now exists an opportunity for the council to create a new model of operation by becoming a ‘commissioning authority’ that focuses on the needs of its residents, whilst efficiently using the resources that the council and its partners have.”  

This approach would see West Somerset commission other service providers “whom would predominantly, but not exclusively, be neighbouring councils” to provide the services it wishes to deliver.

The authority would itself only retain a small nucleus of staff to manage the commissioning arrangements once in place, monitor the performance of providers and service the democratic arrangements and decision-making process.

The report said: “One of the defining principles and strengths of this model is the separation between the decision-making and delivery of services. Commissioning at an organisational level as is being suggested is not about improving or extending current procurement practices, it is making a fundamental whole system change that separates and transforms both decision-making and service delivery functions.”

The original report had considered the option of working with another council under the umbrella of shared management and services, but preferred the commissioning authority approach instead.

Other options considered and rejected by the report were a merger with neighbouring councils through a Boundary Commission review and a significant increase in council tax.

Preparation of the report followed a meeting with Local Government Minister Brandon Lewis on 13 November.

The minister commented that:

  • With a population of only 35,500 and associated funding levels West Somerset, as it is currently structured, was not sustainable. Some parish councils Lewis dealt with had a larger population.
  • The finance settlement that will be announced in late December 2012 could not be expected to solve the council’s financial problems.
  • He strongly agreed with the comments in the report by the LGA, including that a significant increase in council tax (via a referendum) was not the answer.
  • The council should be retained as a democratically elected and accountable unit of local government representing the people of West Somerset and that therefore there was no need to engage with the Boundary Commission on the subject of a merger.
  • A possible way forward could be the creation of a “virtual authority” which would involve the sharing of management and services with neighbouring local authorities within Somerset and that it would probably involve working closely with one above others. (The report said the council had subsequently thought to seek clarity on this suggestion).

A copy of the report can be viewed here.

Philip Hoult