Agenda item

A report from the Director of Finance, Resources and Customer Services is attached. This sets out proposals for taking forward Enfield Council’s IT offer. (Report No.179, agenda part two also refers) (Key decision – reference number 4378)

(Report No.174)

(8.25 – 8.30 pm)

Councillor Dino Lemonides (Cabinet Member for Finance and Efficiency) introduced the report of the Executive Director of Finance, Resources and Customer Services (No.174) outlining proposals for taking forward Enfield Council’s IT offer.

NOTED

1.               That Report No.179 also referred, as detailed in Minute No.18 below.

2.               That the wording of recommendation 2.1.1 of the report had been amended, and an additional recommendation added at 2.1.3 of the report, as reflected in the decisions set out below and outlined at the meeting.

3.               That on 10 February 2010 Cabinet had agreed to register a limited company, owned by the Council, to leverage the IT investment made in the Enfield 2017 programme, helping to mitigate future cost pressures on the Council by generating income.

4.               The three options that had been considered in moving forward as detailed in the report.

5.               Councillor Georgiou expressed his support for the proposals which represented a good opportunity for the Council.

6.               Members were advised of the detail of the proposed business model following extensive consideration of the options available. There was considerable market interest in the Enfield digital platform (as set out in the report). The technology included the Digital Platform, and other solutions being developed in parallel, including Artificial Intelligence, Data Analytics and Systems Thinking.

7.               The detail of the recommended option, option 3, as outlined in the report, to establish an IT company that negotiated income generating agreements with commercial organisations and provided specialist services to other public bodies. The benefits of this model were outlined to Members.

8.               Members’ support for option 3 and, noted the minimal level of risk together with the potential reward to the Council in going forward. Members discussed the future development potential and noted the progress that had been made to date as set out in the report and outlined at the meeting. In response to a question raised, it was noted that there was potential for other local authorities to pursue similar models as well.

9.               Councillor Brett was pleased to note the work which had been undertaken with the voluntary sector, in particular with Age UK. In response to a question raised by Councillor Brett, it was noted that whilst the voluntary sector would not have membership on the company Board, future discussions could take place with the voluntary sector as the proposals developed further. Councillor Georgiou explained that the governance structure of the company was still to be established.

Alternative Options Considered: NOTED the alternative options detailed in section 4 of the report and summarised below:

·       Do nothing

·       Establish an IT company to build, market and support products and services

·       Establish an IT company that negotiates income generating agreements with commercial organisations and provides specialist services to other public bodies.

DECISION: The Cabinet agreed to approve

1.               Option three, summarised in paragraph 1.8 and detailed in paragraph 4.4 of the report, to establish an IT company, limited by shares and owned by the Council, that negotiates income generating agreements with commercial organisations as well as providing IT specialist services, delegating the finalisation and signature of all start-up arrangements and initial commercial agreements to the relevant Cabinet Member together with the Executive Director of Finance, Resources and Customer Services.

2.               The governance arrangements detailed in sections 3.18 to 3.25 of the report inclusive.

3.               That a further report would be brought back to Cabinet setting out the IT company governance structure in detail including documentation highlighted in 2.1.1 and 2.1.2 of the report, for approval.

Reasons: In recommending option 3, detailed in paragraph 4.4 of the report, the two key considerations were:

·       The Council had developed, as part of the Enfield 2017 programme, with the support of third parties, a reputation in local government for having a digital platform that could easily be adapted for other councils. This know-how and reputation could be leveraged to generate an income stream for the Council over the next five years. Market interest and discussions with various commercial organisations suggest that this would be possible, and negotiations with some of those organisations were under way to enable this to happen.

·       The income from referrals together with specialist IT services provided directly by the company would offset some of the future financial pressures on the Council.

(Key decision – reference number 4378)