This report seeks to authorise market engagement, procurement, and the award of a contract and lease through delegated powers to deliver a new service model.

The Committee considered a report seeking approval to procure and award a new drug and alcohol treatment and recovery contract.  An Equality Impact Assessment was attached to the report at Appendix A.

The report noted that the current Drugs and Alcohol treatment and recovery contract commissioned by the Council was scheduled to end in September 2026.  Following discussions with neighbouring Berkshire local authorities, it was proposed to carry out a procurement exercise solely for Reading, commissioning a new contract of five years with options to extend for up to another five years.

The report explained that the government had announced its 2025-26 drug, alcohol, and recovery grant funding to support local authorities in enhancing treatment and recovery services.  Several previously separate grants, including those for inpatient detoxification, rough sleeping drug and alcohol treatment, and supplemental substance misuse and recovery, had been consolidated into a single Drug and Alcohol Treatment and Recovery Improvement Grant (DATRIG).  The announcement of DATRIG allocations beyond 2025/26 was expected in December 2025.  Due to the late announcement of the allocations and the procurement timetable deadlines, it was proposed to design a specification and funding stream for a core offer and an enhanced offer until funding allocations had been confirmed.  It was intended that the enhanced offer would include the Multiple Disadvantage Outreach Team Contract, which was currently funded by the DATRIG until September 2026.  The Council would continue to commission inpatient detoxification and intensive prescribing services through subregional consortiums.

The report explained that the current drug and alcohol treatment and recovery service was delivered from 4 Waylen Street/ 127 Oxford Road a Council-owned property. It was the intention to continue to use this property and align it with the contract terms under a new lease, and the report sought authority to grant a lease to the successful provider.  The long-term plan was for the successful provider to work with the Council to identify, secure, and renovate new premises that were fit for purpose. The existing lease arrangement would ensure continuity of service and provide necessary flexibility for both the provider and service users during the transition period.

Resolved -

(1)          That a new drug and alcohol treatment and recovery contract be procured to commence on 1 October 2026, for a long-term duration of up to 10 years;

(2)          That, if the Government announced its continuation beyond March 2026, the annual Drug and Alcohol Treatment and Recovery Improvement Grant be incorporated into the contract allowing flexibility to enhance service delivery in line with grant conditions, subject to continued government funding;

(3)          That the Executive Director of Communities & Adult Social Care, in consultation with the Lead Councillor for Education and Director of Public Health, be authorised to award the contract and any subsequent extensions following completion of the tender process;

(4)          That the Council enter a contract with the successful provider for an initial period of five years, with the option to extend for a further three years and then an additional two years (5+3+2), subject to performance and funding;

(5)          That the Assistant Director of Property & Asset Management, in consultation with the Leader of the Council, the Lead Councillor for Health, the Director of Finance, the Director of Public Health and the Assistant Director of Legal and Democratic Services, be authorised to grant a new lease to the successful provider for the use of 4 Waylen Street, Reading, on terms aligned with the duration of the treatment contract, as set out in section 3.6 of the report as further required to protect the Councils interests.