Agenda item

Agenda item

Notice of Motion - Insourcing First Motion - Manchester City Council

This Council notes:-

 

·                All political parties represented on this Council are committed to democratic public services, support the principle of reversing the trend of providing Council services indirectly through outsourcing, and are committed to reversing this policy.

·                Multiple public polls that show that the UK public support public ownership.

·                Councils across the country spend hundreds of millions of pounds buying in essential goods, services and expertise from the private sector each year.

·                The Public Services (Social Value) Act was introduced in 2012. It provides a legal basis for public authorities to look for wider social, economic and environmental benefits when undertaking procurement exercises.

·                Evidence shows that insourcing public services can deliver lower costs, more efficiency, a public sector ethos, economies of scale and an enhanced level of democratic accountability to local residents.

 

The Council further notes:-

 

·                That a number of high value outsourced contracts for Manchester City Council are due to expire in the next few months.

·                The council has received numerous complaints about some of these contracts from the workforce and their union, as well as residents in receipt of services.

·                A report by Unite the union highlights how  contracts are being badly managed, resulting in a poor service for residents, mistreatment of the workforce and unacceptable waste and expenditure for the council.

·                We have a major opportunity to rebuild the council’s capacity to deliver services in-house, saving money, improving services for residents and raising terms and conditions for staff.

 

This Council believes:-

 

·                That residents are more likely to trust local councillors to take decisions on their behalf over and above private companies.

·                That public service workers and their trade unions support the insourcing of public services.

·                That investing in strengthening the council’s capacity, skills and ability to deliver services in-house will make the council more sustainable, innovative and effective for the long term.

·                That residents supporting their local councils to run services and redistribute wealth, will elect a national government willing to provide the financial resources to catalyse new social contracts and make public services local.

 

This Council therefore resolves to call on its Executive to:-

 

(1)      Run an urgent investigation into all outsourced contracts through the relevant scrutiny committee for the council.

(2)      Develop and implement a full business plan for re-insourcing the relevant contracts.

(3)      Immediately halt plans to commission the delivery of upcoming environmental retrofitting contracts and instead rebuild its direct labour organisation to deliver that work.

(4)      Develop and introduce an ‘Insourcing First’ policy that makes an assumption that all local authority services should be delivered in-house by the council, unless there are strong countervailing reasons not to, (e.g., the need for independence to prevent a conflict of interest or where local companies or the third sector are recognised as being better placed to provide the service that Manchester residents deserve).

(5)      Develop and introduce strong standards for tendering, bid evaluation and contract management for any outsourced contracts that are made with the council which evidences why this contract cannot be insourced as default and why any expiring contracts should not result in insourcing.

 

Proposed by Councillor Bayunu, Seconded Councillor Good and Supported by Councillor Johnson, Leech and Nunney

 

Minutes:

This Council notes:-

 

·                All political parties represented on this Council are committed to democratic public services, support the principle of reversing the trend of providing Council services indirectly through outsourcing, and are committed to reversing this policy.

·                Multiple public polls that show that the UK public support public ownership.

·                Councils across the country spend hundreds of millions of pounds buying in essential goods, services and expertise from the private sector each year.

·                The Public Services (Social Value) Act was introduced in 2012. It provides a legal basis for public authorities to look for wider social, economic and environmental benefits when undertaking procurement exercises.

·                Evidence shows that insourcing public services can deliver lower costs, more efficiency, a public sector ethos, economies of scale and an enhanced level of democratic accountability to local residents.

 

The Council further notes:-

 

·                That a number of high value outsourced contracts for Manchester City Council are due to expire in the next few months.

·                The council has received numerous complaints about some of these contracts from the workforce and their union, as well as residents in receipt of services.

·                A report by Unite the union highlights how  contracts are being badly managed, resulting in a poor service for residents, mistreatment of the workforce and unacceptable waste and expenditure for the council.

·                We have a major opportunity to rebuild the council’s capacity to deliver services in-house, saving money, improving services for residents and raising terms and conditions for staff.

 

This Council believes:-

 

·                That residents are more likely to trust local councillors to take decisions on their behalf over and above private companies.

·                That public service workers and their trade unions support the insourcing of public services.

·                That investing in strengthening the council’s capacity, skills and ability to deliver services in-house will make the council more sustainable, innovative and effective for the long term.

·                That residents supporting their local councils to run services and redistribute wealth, will elect a national government willing to provide the financial resources to catalyse new social contracts and make public services local.

 

This Council therefore resolves to call on its Executive to:-

 

(1)      Run an urgent investigation into all outsourced contracts through the relevant scrutiny committee for the council.

(2)      Develop and implement a full business plan for re-insourcing the relevant contracts.

(3)      Immediately halt plans to commission the delivery of upcoming environmental retrofitting contracts and instead rebuild its direct labour organisation to deliver that work.

(4)      Develop and introduce an ‘Insourcing First’ policy that makes an assumption that all local authority services should be delivered in-house by the council, unless there are strong countervailing reasons not to, (e.g., the need for independence to prevent a conflict of interest or where local companies or the third sector are recognised as being better placed to provide the service that Manchester residents deserve).

(5)      Develop and introduce strong standards for tendering, bid evaluation and contract management for any outsourced contracts that are made with the council which evidences why this contract cannot be insourced as default and why any expiring contracts should not result in insourcing.

 

Councillor Akbar moved an amendment to the motion, which was seconded by Councillor Wheeler and accepted by Councillor Bayunu (proposer). In accordance with Rule of Procedure 20.3, the amendment was incorporated into the motion.

 

The amended motion was as follows:

 

This Council notes:-

 

·                All political parties represented on this Council are committed to democratic public services, support the principle of reversing the trend of providing Council services indirectly through outsourcing, and are committed to reversing this policy.

·                Multiple public polls that show that the UK public support public ownership.

·                Councils across the country spend hundreds of millions of pounds buying in essential goods, services and expertise from the private sector each year.

·                The Public Services (Social Value) Act was introduced in 2012. It provides a legal basis for public authorities to look for wider social, economic and environmental benefits when undertaking procurement exercises.

·                Evidence shows that insourcing public services can deliver lower costs, more efficiency, a public sector ethos, economies of scale and an enhanced level of democratic accountability to local residents.

 

The Council further notes:-

 

·         Manchester’s Labour Council has a strong history and commitment to Direct Services. It had the largest Direct Works Department in the country that built thousands of council houses and has started once again to build its own homes through This City

·         That the city’s Arms-Length Management Organisation for Housing, Northwards, has been brought back in house following extensive, positive consultation with residents and staff.

·         That a review of expanding capacity to have the option to take further services back in house is already on the work programme of the Resources & Governance Committee.

·         That government’s “Best Value” legislation continues to frustrate local authorities in their work to enact the democratic demands of those they represent, and that the current guidance by central government is not fit for purpose.  

·         Manchester City Council has had its budget cut by over £420Million since 2010. Extensive cuts to council funding under both the Liberal Democrat-Conservative Coalition and subsequent Conservative governments have deeply harmed the ability of councils to build resilience, innovate and deliver.

 

This Council believes:-

 

·                That residents are more likely to trust local councillors to take decisions on their behalf over and above private companies.

·                That public service workers and their trade unions support the insourcing of public services.

·                That investing in strengthening the council’s capacity, skills and ability to deliver services in-house will make the council more sustainable, innovative and effective for the long term.

·                That residents supporting their local councils to run services and redistribute wealth, will elect a national government willing to provide the financial resources to catalyse new social contracts and make public services local.

 

This Council therefore resolves to call on its Executive to:-

 

·         To continue to work in active partnership with all relevant trade unions to ensure staff who provide services in Manchester are listened to and valued, whichever management structure they currently work under.

·         To write to the Secretary of State calling for a wholescale review of the “Best Value” legislation to give councils the freedom to respond to the democratic demands of their own citizens.

·         To continue to work with partners including the Association for Public Service Excellence, of which Manchester City Council is a founding member, to develop strategies for greater democratic control of services wherever possible to deliver better results for citizens.

·         To continue to begin with insourcing as the default option for services with clear guidance to the policy development teams within the council on this priority.

·         To continue to call out the unfair and damaging cuts to local government funding by successive Governments since 2010.

 

Resolution

 

The motion was put to Council and voted on and the Lord Mayor declared that it was carried.

 

Decisions

 

1.    To continue to work in active partnership with all relevant trade unions to ensure staff who provide services in Manchester are listened to and valued, whichever management structure they currently work under.

2.    To write to the Secretary of State calling for a wholescale review of the “Best Value” legislation to give councils the freedom to respond to the democratic demands of their own citizens.

3.    To continue to work with partners including the Association for Public Service Excellence, of which Manchester City Council is a founding member, to develop strategies for greater democratic control of services wherever possible to deliver better results for citizens.

4.    To continue to begin with insourcing as the default option for services with clear guidance to the policy development teams within the council on this priority.

5.    To continue to call out the unfair and damaging cuts to local government funding by successive Governments since 2010.