Report of the Strategic Director for Children and Education Services attached

This report outlines a set of proposals to support the continued provision of high quality Early Years settings across the City. The report specifically provides an overview of the impact of the current Early Years tendered day-care model (whereby providers offer day-care from a Council owned building), on the Council’s duty to oversee sufficient day-care for preschool children across Manchester; the Early Years Budget and ongoing maintenance of Early Years buildings which remain part of the corporate estate

The Committee considered a report of the Strategic Director for Children and Education Services, which outlined a set of proposals to support the continued provision of high quality Early Years settings across the City. The report specifically provided an overview of the impact of the current Early Years tendered day-care model (whereby providers offer day-care from a Council owned building), on the Council’s duty to oversee sufficient day-care for preschool children across Manchester; the Early Years Budget and ongoing maintenance of Early Years buildings which remain part of the corporate estate.

Key points and themes of the report included:-

·                Results of stock condition surveys;

·                Review of early years buildings within the portfolio;

·                Financial implications – revenue and capital;

·                Further actions; and

·                Support Provided to Early Years Settings During the Pandemic

The report was also being considered by the Children and Young Peoples Scrutiny Committee on 23 June 2021 and Executive on 30 June 2021.

Some of the key points that arose from the Committees discussions were:-

·                Central Government had failed to adequately fund early years provision;

·                This inadequate funding had resulted in instability across the sector and that was detrimental to both young people and their families;

·                Recognising that the report proposed to bring a level of stability to the sector, across the whole of the city;

·                Had the Council given consideration to providing direct provision using Invest to Save analysis, noting the importance of early years provision and the impact this had on other services if not adequately catered for;

·                Noting that to deliver the required stability in the market a longer term plan was required and what metrics were considered to ensure the provision was adequate to meet the needs of the population;

·                Was the reported time period for the retendering of a site commencing to the site being re-occupied typical; and

·                Welcoming the proposal that the Council would have landlord responsibilities included within the Council’s existing Asset Management Programme.

The Head of Corporate Estate and Facilities advised that the time period for the retendering of a site commencing to the site being re-occupied was typical. He commented that the decision to incorporate landlord responsibilities within the Council’s existing Asset Management Programme would strengthen the inspection regime to ensure premises were safe and compliant with all required standards. He commented that this approach would also present the opportunity to invest in and facilitate the delivery of carbon reduction initiatives through the estates management and contribute to the city’s carbon reduction ambitions. In response to a specific question regarding the future development of sites for purposes other than day care provision, he advised that there were mechanisms in place to protect those sites.

The Deputy Chief Executive and City Treasurer referred to the budget decisions that had been taken in 2011 in relation to the delivery model of day care provision in the context of austerity. She added that nationally the direct provider model is not one that was adopted by Local Authorities.

The Executive Member for Children’s Services explained that a range of metrics were used to understand the demand on the sector, including the census; the use of provision and where families accessed these from and birth rates. He commented that the report represented a significant amount of work over a period of years and represented an opportunity to strategically improve and strengthen upon the established relationships with providers across the whole of the city. He stated that the renegotiation of leases would provide an ideal opportunity to discuss and progress issues such as sustainability with providers and support the carbon reduction ambitions of the Council.  In response to a specific question regarding a breakdown by use of day care he advised that this data was obtained and could be shared outside of the meeting.

Decision

The Committee endorses the recommendations proposed to the Executive, those being:-

Executive are recommended to:

(1)       Note 17 of 37 leases have been surrendered since December 2015 and the potential impact on the council’s ability to meet its ‘sufficiency duty’.

(2)       Note the continued negative budget implications on the Early Years budget which continues even if the status quo is maintained.

(3)       Approve the recommendation for the use of each building moving forward.

(4)       Approve the re-negotiation of the current leases by corporate estates with day care providers, making clear the responsibility of the lease holder and the corporate landlord in the re-negotiated lease.

(5)       Support the proposal to include the Early Years estate portfolio in the Council’s future Asset Management Programme, at an estimated cost of £0.7m per year.

(6)       Approve a budget increase of £3m, funded by capital receipts, to fund the priority works.