Community Enterprise & Community Right to Challenge Andy Perkin Development Officer Locality

Locality Members grant funding assets enterprise Locality members are moving away from reliance on grant funding and towards generating income from community-owned assets and community enterprise

Enterprise sales / retail Butchers shop – Mull and Iona Development Trust Craft sales web site – Moseley Community Development Trust Kivo-ebiz – eBay trading – Kiveton Park & Wales Development Trust

manufacturing / production Enterprise manufacturing / production Garden furniture - Colebridge Trust Public art - The Arts Factory Maps and leaflets - Stourport Forward

- Old Hall People’s Partnership Enterprise services Gardening - Old Hall People’s Partnership Training - WATCH Distribution - Colebridge Trust

BUILD BID CHALLENGE New Community Rights These are the new community rights – not lefts! CHALLENGE

Community Right to Challenge challenge and take over a council service they think can be better run

When can we submit an EOI? CHALLENGE When can we submit an EOI? At anytime. Unless… The LA specifies periods for submitting EOI (inc beginning and end dates) When can we submit an expression of interest? At any time - However, a LA may also specify periods for EOI. must publish the deadline for submitting an expression of interest and also the dates on which procurement exercise begins & ends Interestingly there’s loads of timescales on this process which the secretary of state needs to specify – so timescales specifiying mimium and maximum times for after EOI have been submitted – to when that becomes a procurement process etc. all these are to be set.

Who can submit an Expression of Interest? CHALLENGE Who can submit an Expression of Interest? charities voluntary organisations parish councils 2 or more employees of the Local Authority involved in that service Could be a national charity This is also fertile territory for spin outs – especially because social enterprises emerging from within the LA are often much better placed - because of the relationship they have with the council and the knowledge they have about the service Any orgs that distribute profits to employees to members won’t qualify (CICs and bona fide cooperatives won’t be able – which is strange considering government rhetoric about mutuals) The fact that a body’s activities generate a surplus does not prevent it from being a voluntary body so long as that surplus is used for the purposes of those activities or invested in the community. In terms of who the submit it to: (a) a county council in England, (b) a district council, (c) a London borough council, or (d) such other person or body carrying on functions of a public nature as the Secretary of State may specify by regulations.

Then what? LA must respond in writing CHALLENGE Then what? LA must respond in writing If accepted a commissioning and procurement process is triggered If not - gives reasons for rejection Rejection of EOI only on grounds set out in regulations regulations - which will be published shortly.

Challenges But what is the market? - Local Authority budgets cut Smaller contracts - Be careful what you wish for! Opening the door for others Potential for creating conflict with LA LAs dealing with what seems like contradictory policy (Localism vs Gershon) - But what is the market? - Council budgets reduced by 9.4% (and the CRtC doesn’t stop a service being cut). And the services that are being cut is the none-statutory stuff- peripheral stuff. The bits that my members and lots of you deliver but isn’t necessarily ‘essential’ services Big issue about size of contracts - small contracts can be high risk for sector – especially if you’re taking on LA terms and conditions – so if one person goes off sick you’re then delivering at a loss Interestingly there’s nothing to stop LAs from accepting EOI and then putting out services to tender on a far wider level and for a greater value ( and big contracts are often unobtainable to the sector) To be clear submitting an EOI is not an exclusivity in running that service. Potential to assist in private sector takeover of local service provision. Will private sector be circulating and getting vcs to put in a challenge on a commission or promising a proportion of delivery – more vcs/private sector collaborations? For this reason it’s critical if you’re going to do one of these you need to be both tender ready and organisationally ready to bid for and run this service Could this lead to spin outs as LAs react to this internally under threat of being ‘taken over’ High piss off factor for LAs (being issued a EOI as of right) – fearful stuff, pissed of councillors, LAs tend to move in their own time. This isn’t necessarily going to warm them up to wanting to work with you Gershon – efficiencies on procurement (so joining up to create bigger contracts). Also – recent public services white paper emphasised payment by results, prime contracting, bigger contracts – all stuff that hasn’t helped this sector

Opportunities Encourages ‘local thinking’ Co-design of services CHALLENGE Opportunities Encourages ‘local thinking’ Co-design of services Breaking down contract size A catalyst for voluntary & community sector collaboration - Encourages LAs to think local – and think about relationships with local providers. Also creates the idea of the local micro-economy – so keeping as much of the money circulating locally as possible – suggesting local contracting with people more likely to employee locally Much more engagement now as a result of this policy than previous – as LAs prepare for localism. A really consideration of barriers to involvement in procurement and how to break them down Co-design at the commissioning stage – so when procurement takes place it’s structured in a way that allows the sector to compete – a much more collaborative approach to service delivery A catalyst for sector collaboration as well You’ll notice and this is something for you to consider – I’m not sure if the opportunity is in the detail – is in the process of organisations submitting EOI. Personally I think the opportunities are in the big picture – which is a strong policy shift towards greater local delivery of local services

Community Right to Challenge any questions? A chance to ask questions before moving on.

Where to now? HELP

Where to now? mycommunityrights.org.uk

WE’d LIKE TO BUILD THERE WE’d LIKE TO BUY THAT ME TOO WE WE’d LIKE TO BUY THAT WE’d LIKE TO WE Could DO THAT Bui TH Time for a discussion.

www.locality.org.uk 0845 458 8336 andy.perkin@locality.org.uk