Issue - meetings

Report ED14009

The Portfolio Holder introduced a report outlining options for the future delivery of day nursery provision at the Community Vision and Blenheim nurseries.  The Education PDS Committee had considered a report at its meeting on 19^th March 2013 which proposed that both nurseries be placed on a trading account basis to gain a better understanding of the operating costs to the Local Authority of the direct provision of nursery places, and that an options appraisal be undertaken around how this nursery provision could best be delivered into the future.

The two nurseries had been moved onto a trading account basis from April 2013 with separate budgets established.  The options appraisal for the future delivery of the Community Vision and Blenheim nurseries had also been completed which had explored a range of options which comprised making no change to the existing service, the closure of both nurseries and market testing of nursery provision.

In considering the report, the Chairman noted that the proposal was to undertake market testing to explore the options for future delivery of the nurseries and that there was no intention to close the provision.  It was possible that the outcome of any market testing process would recommend the existing service be retained as an in-house provision.  The Head of Schools, Early Years Commissioning and Quality Assurance confirmed that parents and staff at the nurseries had been notified of the proposal, but that a full consultation and equality impact assessment could not be undertaken until it was agreed to proceed with market testing.

Councillor Kathy Bance MBE underlined that the move to a trading account had indicated that nursery provision covered its controllable costs and operated at a surplus, based on income from free early education and private fees, together with the recharges from the social Care purchasing budget for the provision of nursery places for Social Care referrals.  The surplus also covered the majority of non-controllable corporate recharges, which would be present regardless of the provision being in place.  Non-controllable corporate recharges comprised central support costs to the Local Authority of the provision, including human resources, information technology and finance support.  The Portfolio Holder noted that a significant number of the places were funded by Children’s Social Care as part of early intervention support to prevent family breakdown, and there was also a need to review whether this arrangement was appropriate.

A Co-opted Member advised Members of the Committee that over 90% of Early Years provision in the Borough was delivered by the private and voluntary sector and that the majority of settings were rated as ‘Good’ or ‘Outstanding’.

Councillor Kathy Bance MBE requested that her opposition to the proposal to undertake market testing be recorded.

RESOLVED that the Portfolio Holder be recommended to:

1)  Note the outcome of the options appraisal;

2)  Agree the proposal to undertake market testing of nursery provision; and,

3)  Report the outcomes of the market testing of nursery provision to a future meeting of Education PDS Committee.