Issue - meetings

The Scrutiny Board is requested to note the Call-in request and to consider confidential recommendations, in the report, which were approved by Cabinet on 18^th November 2024 and which were subsequently call-in by Councillors Kenyon and Al-Hamdani.

The Calling-in Member addressed the Scrutiny Board and explained the reasons why they have called-in the Cabinet’s decision. The Calling-in Member suggested that there was not enough information provided in the report in several areas including benchmarking from other authorities and commercial providers. The Member also suggested that not enough analysis had been done on the impact of the decision on local supply chain and local wealth building. He indicated that the risk was being transferred to schools and their budgets and that no survey or analysis had been done on schools’ capacity to take on the additional responsibility.

Next, the Cabinet Member for Education addressed the Board explained the background for the decision. The Board heard that there are several issues being faced by the service including soaring food inflation, labour costs and the number of schools purchasing the service expected to reduce over the coming years. The Association for Public Service Excellence were commissioned to undertake an evidence based independent review of the Councils catering service. The outcome of the review was the recommendation of a managed transition of school catering to each individual school providing local freedom and flexibilities in how the menu is designed and service is operated.

The Director of Economy presented to the Scrutiny Board some additional detail behind the decision highlighting key points;

·       The Current Oldham Education Catering Service is a trading service there is no statutory requirement for the Council to deliver a service.  It is the responsibility of schools to deliver a catering service.

·       The recommendations associated with the catering review are underpinned by an independent service review undertaken by the nationally recognised body Association for Public Service Excellence.

·       Financial modelling shows that the retention of the traded service is not sustainable for the Council.

·       A robust and fully supported transition programme has been established and is moving forward to implementation. This includes active engagement and joint working with all key stakeholders including schools, employees and potential suppliers.

The Calling-in Member was given the opportunity to ask questions of the Cabinet Member and Director. He queried why the review had only just taken place when it was his understanding that the service had been at risk for several years. The Cabinet Member explained that current financial pressures faced by the Council encouraged innovative thinking on how to make savings and the catering service was identified as an area for review. The Cabinet Member stated that the financial situation of the catering service had deteriorated over time and although it had been profitable in the past, it was projected to make a £800k+ net loss to the council in 2025/26. In response to queries, the Director of Economy confirmed that they were not looking at redundancies of catering Staff, there would be a change of Line Management to from the Council to schools, and full support would be provided to employees throughout the transition.

Next, Members of the Scrutiny Board were given the opportunity to ask questions of the Director of Economy  ...  view the full minutes text for item 8

To consider confidential recommendations

The Cabinet considered confidential recommendations to the report detailed at agenda item 11.

Resolved:

1.    That the Cabinet approve the transition of the school catering provision from Oldham Education Catering Service to schools through a comprehensive and supportive change management process.

2.    That the Cabinet approve the withdrawal of the OECS from the school meal provider market no later than September 2025.