Report by Executive Director of Resources

Further to Minute 42 of the Policy Committee held on 18 December 2024, the Executive Director of Resources submitted a report setting out a review of the performance of Brighter Futures for Children Limited (BFfC) in delivering Children’s Services and an assessment of future options.  Attached to the report at Appendix 1 was a report from CIPFA on the Assessment of Options for Children’s Services and at Appendix 2 a Statement of Support from the BFfC Board.

The report noted that, under the direction of the Secretary of State, the Council had established BFfC on 1 December 2018 as a company limited by guarantee to deliver Children’s Services (Social Care and Education) through a seven-year service contract which would expire on 1 April 2026.  The contract stipulated that BFfC would be given notice of the future for the contract by 31 March 2025 and that a review of the performance of the contract would be carried out to inform the Council’s decision.

The report explained that a review of the performance of the contract had been carried out and the Chartered Institute of Public Finance and Accountancy (CIPFA) had been engaged as an independent consultant to validate the review of performance and to complete an Assessment of Options for future delivery of Children’s Services.  CIPFA’s report recommended not renewing the contract with BFfC and bringing delivery back in house to be managed by the Council, supported by an Improvement Board (Option 2). 

The reasons for bringing the service back in house would be to provide the Council with better direct control of Children’s Services, remove a layer of governance and so increase visibility of Service performance likely leading to ‘more agile decision making’.  It would also remove duplication in reporting and pressure on Council services of maintaining Service Level Agreements, as well as improved integration and synergy with other Council services, joining up decision-making, innovation and improvement. 

The BFfC Board had considered CIPFA’s report at their meeting on 26 September 2024 and had provided a statement accepting and supporting the recommended option.  The Statement also reflected that alternative delivery models for Children’s Services were now rarely the preferred option in response to statutory intervention. 

The report noted the Company currently had a significant transformation plan in place to address cost pressures and better manage demand, as well as an action plan in place to tackle the issues identified by the latest Ofsted inspection of Children’s Services.  It was therefore recommended to establish an independently chaired Improvement Board to provide scrutiny and informed input to ensure effective delivery of these plans.

The following motion was moved by Councillor Terry and seconded by Councillor Leng and CARRIED:

Resolved –

(1)      That the contract with Brighter Futures for Children Ltd (BFfC) to deliver Children’s Services not be extended beyond 31 March 2026 when it was due to end;

(2)      That by 1 April 2026, services currently provided by BFfC, including all remaining support services, be brought in house to be delivered directly by the Council;

(3)      That the Executive Director of Resources, in consultation with the Leader of the Council, the Lead Councillors for Children and Education, the relevant statutory officers and Chair of the Board, be authorised to:

                                               i.     Transfer all staff from BFfC to the Council;

                                             ii.     Remove the secure designated pension arrangements between BFfC, the Council and the Pension Fund;

                                           iii.     Novate all BFfC contracts to the Council;

                                           iv.     Take all steps legally required to close the BFfC Company;

                                             v.     Make any changes required to the Terms of References for Committees to reflect the change of delivery model and remove reference to the Company and contract within the Lead Councillor portfolios;

                                           vi.     Make any other necessary amendments to the Council’s Constitution and Scheme of Officer Delegation to reflect the changes of the delivery model;

(4)      That the Executive Director of Economic Growth and Neighbourhood Services, in consultation with the Leader of the Council, the Lead Councillor for Children, the Lead Councillor for Education and Public Health and the Chair of the BFfC Board, be authorised to transfer all property held by BFfC under lease arrangements back to the Council and arrange for the leases to be surrendered;

(5)      That the Executive Director of Children's Services, in consultation with the Leader of the Council, the Lead Councillor for Children and the Lead Councillor for Education and Public Health, be authorised to:

                                               i.     Close the Independent Fostering Agency and transition this to a Local Authority Fostering Service

                                             ii.     Make all relevant changes to all Ofsted registrations

(6)      That the Chief Executive, in conjunction with the Chair of the BFfC Board and in consultation with the Leader of the Council, Assistant Director of Legal and Democratic Services and Executive Director of Children’s Services, set up an independently chaired Improvement Board including developing its Terms of Reference for noting at Council;

(7)      That the Assistant Director of Legal and Democratic Services be authorised to execute all legal documents that were necessary to give effect to the above resolutions;

(8)      That the cost of transition be funded from earmarked reserves.