In March 2020, Cabinet had considered a confidential report on Council Transformation: Stage 1 which had proposed a senior staff restructuring as the first step to transforming the Council.   

Since that time, due to the impact of COVID-19, future national uncertainty surrounding the structure of local government and the need to retain senior staff skills and knowledge, it was felt appropriate to withdraw the original recommendations and replace with a revised structure. 

The report provided the background to the proposals which included the following factors:

-       the COVID-19 pandemic and the additional consequential financial expenditure that may or may not be covered by Government funding;

-       the development of a new Corporate Plan (CP) for the Council;

-       the increased financial challenges facing the Council (predicted shortfall of £2-£3 million in 2020/21) and the savings this restructure would achieve;

-       the prospect of organisational turbulence as a consequence of Government proposals to expand unitary local government across England; and

-       the need for the officer/departmental structure to reflect the priorities of the Council, particularly the climate and environmental challenges and housing delivery programme.

Having considered the future needs and direction of the Council along with the customer journey/requirements for services, Cabinet proposed that both Executive Directors posts be deleted, and a new post of strategic Chief Executive (CE) and Head of Paid Service be created; the proposed Job Description and Person Specification was attached to the report.  It was noted that this post would be ringfenced to the existing two Executive Directors, in accordance with the Council’s redundancy and restructuring policies.  

This would enable Members to work urgently with the newly appointed CE with minimum disruption and time loss, to deliver the Council’s response to the post pandemic situation and its evolving new CP.

Whilst the salary for the new CE role was to be determined by Full Council on recommendation of the Licensing and General Purposes Committee (L&GP), for the purposes of considering the financial implications of the proposal, the anticipated saving, after costing the re-grade, would be around £111,000 per annum; this would initially cover the cost of severance of the departing Executive Director and thereafter be an ongoing revenue saving.

The Government had indicated that Regulations (Public Sector Exit Payment Cap Regulations 2019) were to be laid before Parliament soon restricting the total severance pay for any individual to £95,000, including any additional cost to the Pension Fund for early take up of benefits. Full Council would need to approve whatever is offered, and it would be unclear until September at the earliest whether these Regulations were to be enacted before the date of Full Council and whether there would be any flexibility that Council could exercise over the value of the exit package.  

Both Executive Directors and their representative body, ALACE had been appraised of this report; ALACE had made a number of points which would be reported to the L&GP, alongside a response received from the Staff Side (UNISON).

RESOLVED:  That the following  ...  view the full minutes text for item 35