Will local government reorganisation pose a risk to Children’s Services?

I don’t often comment on Children’s Services in local government, preferring to stick to education about which I hopefully know more. However, having served a period of time as a Cabinet member for Children’s Services in a shire county, I couldn’t resist reading the report published last week by the DfE from the commissioner put into Devon County Council to oversee the improvement oft heir Children’s services.

There were two interesting comments from that report caught my eye.

The first deal with the issue of local government re-organisation: not strictly part of the Commissioner’s brief, but an interesting and thoughtful comment

Although not in the remit of this particular piece of work it would be wrong not to highlight a second significant risk. The current round of Local Government Reorganisation (LGR) consultations is already consuming large amounts of political and operational time. However, that isn’t the main risk. The bigger concern would be for any recommendation which leads to the break up and fragmentation of Devon CC and the existing arrangements for children’s services. Given the positive improvement trajectory I have seen and identified in this report and the critical importance of having a well led and well functioning children’s services for the local population anything that breaks that model would risk stopping the existing work in its tracks with an even bigger risk that things would quickly slip backwards. As stated, this is not strictly in my brief to comment on, but the potential impact of LGR on services that are now showing signs of improvement should be appropriately considered by government as part of their decision making process.”

The second comment was, of course, interesting to me as a Liberal Democrat.

Following the recent local elections Devon now has new political leadership. The Lib Dem group have made an impressive ‘fresh start’ and they are very clear that they will be judged on the improvements they are determined to see in Children’s Services. Children’s services are undoubtedly the top priority for Devon County Council. Three cabinet members (including the Leader) hold portfolios across Children’s services – Education, Lead Member and SEND. My observations of two cabinet meetings and scrutiny alongside additional face to face meetings assures me that the Leader and his team are very serious about bringing about the improvements needed.”

Commissioner’s report on children’s services

Managing a Children’s Services is probably a much more complex task than managing adult social services in local authorities, as Children’s Services encompasses not only the whole of the remaining education functions of a local authority, but also children in care or at risk, plus youth justice, and youth services, as well as relationships with the NHS over SEND. This wide range of activities may be why so many local authorities have received adverse reports over the past few years.

Indeed, an analysis of the reports by the size of the authority may well help to support the view of Devon’s commissioner about local government review. Is there a minimum size for a Children’s Service to function effectively, and does it need good political oversight?

150 year-old Committee system to be abolished

Earlier this week the government announced the end to Council Committees as a decision-making process within local government, requiring all councils to move to a Leader and Cabinet model.  Fortunately, scrutiny committees will still be permitted. Written statements – Written questions, answers and statements – UK Parliament

So, it will be a Labour government that will finally ends the governance of state education by Committee. For over a century, the Education Committee, comprised of councillors and other persons, usually representing the main faith groups with schools in the area and ‘persons with experience in education’ was the mainstay of policy-making for the nation’s state schools, and up to the early 1990s further and public sector higher education as well.

Indeed, my first appointment to a Council was to the Education Committee, as one of the persons of experience. In that role, I was appointed to Oxfordshire’s Education Committee, and one of its sub-committees in the 1990s. I served until the County moved to a Leader and Cabinet model at the end of the decade. Some 20 years after that original appointment, I became the Cabinet Member covering the education portfolio in the same county.

This move to ban committees is a curious one at the present time when so many councils do not have a majority for one Party, and are run by coalitions. Managing coalitions in the cabinet system makes it harder for each Party to have an input into all portfolios, except at the level of cabinet. I suspect it has made cabinet meetings longer when there are differences between the Parties within the Cabinet. The alternative is that difficult decisions are dropped, rather than dealt with.   

The cabinet model is also bad news for back bench councillors, especially where there is a large majority for one Party, because other than the scrutiny function, where they may sit as the occasional substitute, they will have little or no formal role in decision-making. The committee system did allow greater participation from councillors, even if it was slower at reaching decisions.

My guess is that even when formal committees are banned, unofficial groups will still be formed to help cabinet members. They may be Cabinet Committees; task and finish groups for particular projects or even unofficial committees such as the Corporate Parenting Panel of councillors from all Parties that was revived during my time as cabinet member.

The real tragedy of this move is that it represents a further nail in the coffin or local democracy. Committees meet in public for the most part, and that means there can be public input before a decision is made. The risk now is that decisions may be scrutinised after they have been made, but less so before being agreed.

One solution is to ensure that there is widespread consultation before decisions are made, as has just taken place in Oxfordshire on whether or not to charge for SEND transport for the 16-19 age group.

Councils are businesses, but not companies.  How they manage decision-making with their democratic responsibilities is no matter to be taken lightly. But a time of political turmoil is an odd time to mandate that only one system of governance is possible.

Solve the High Needs Block statutory override issue now

June is the time of year when local authority Directors of Finance start thinking about the budget for the following April. HM Treasury is doing the same thing for the government but, with a Spending Review just announced, their task this summer should be much easier than usual as Ministers have already negotiated with the Chancellor. Directors of Finance have no such protection and are bound to produce a balanced budget for councillors to approve or face the prospect of having to issue a s114 notice and default, as some councils have already had to do in recent years.

It was very surprising not to see an announcement in the recent Spending Review about the statutory override many upper tier councils are carrying on their balance sheets,

The statutory override on council balance sheets is a result of overspends on council’s High Needs Block spending that finances the pupils and young adults with special educational needs in their local area. (SEND)

There are suggestions that a significant number of upper tier authorities with be unable to present a balanced budget for 2026/27 to councillors next February for approval unless something is done about the present statutory override that currently ends in March 2026. If nothing else is put in place, some councils will not be able to present a balanced budget and hence will default.

The simple answer would be to extend the override until March 2027 to see what the White Paper on SEND, now promised for the autumn, will bring. That move just buys time for a longer-term solution.

I wonder whether the DfE thought local government re-organisation might be a way of dealing with the deficit when new councils were being formed. After the results of May’s elections, I cannot see the present government wanting to push ahead with reorganising councils and creating new elected Mayors if such a move were to hand more victories to their opponents, and notably to the Reform Party. If reorganisation grinds to a halt that route out is no longer available for solving the issue of the override.

Another alternative is to switch the 2% precept on Council Tax from adult social services to SEND and let the NHS take the strain on funding for the mostly elderly residents currently being paid for out of the local government funding 2% precept. Such a move would not be popular but could be possible. As it wasn’t in the Spending Review it seems unlikely.

The DfE could rearrange their spending and transfer the consequences of falling pupil numbers from the Schools Block to increase the High Needs Block and do the same for the Early Years funding to keep it constant on a per child basis but recognise fewer children means less total spending. Such a move would affect funding for schools and early years setting with falling rolls.

Do nothing and councillors in Parties running councils will return from their summer breaks to be confronted with a list of serious reductions in services and personnel that might be needed in 2026. Such reductions won’t be efficiency gains, but unacceptable cuts on the level of a fire sale.

Solving the problem of the statutory override between now and the parliamentary recess for the summer should be the number one priority for all involved with education and local government. Not to do so would have consequences that are unthinkable.

The situation regarding the statutory override should not have reached the present position. In my view, it would be a gigantic failure of political will if it is not solved now.

A broken system: not just mismanagement

When searching the DfE website this morning for the latest numbers about schools and pupils to allow me to compare the number of teachers per school for different subjects, I was distracted into looking at the number of ‘open notices’ from the DfE to Councils across England. Currently they total around 30 such notices and there are others that have been closed in recent times. These notices refer to the provision of either special needs (SEND) or children’s social services.

There really must be something wrong with a system where nearly 20%, or one in five, of all upper tier local authorities have such notices that are issued to councils for ‘poor’ or ‘inadequate’ performance. I had expected the majority of such notices to be for SEND services, but in fact half are for Children’s Social Services. This raises the question of whether in some authorities, and especially smaller unitary authorities, there is the funding to cope with both SEND and Children’s Social Services?

Of the local authorities with ‘open’ improvement notices for children’s social services, most are small metropolitan districts of unitary authorities.: Liverpool, Nottingham City and the counties of Herefordshire and Worcestershire are the exceptions. The pattern for SEND notices is different, with six counties, four metropolitan districts, four unitary councils and one London borough with ‘open notices.

What is striking about both lists is the geographical split. The relative absence from the list of well-funded London boroughs – only three appear, and only one in the SEND list, compared with eight metropolitan districts really is worthy of note and discussion. Comparing the distribution with my recent report on pupil teacher ratios does suggest that funding, or the lack of it, may play a part.  

If the 16 other authorities with closed notices since 2020 are added to those with ‘open’ notices, then almost a third of all local authorities have been on the ‘naughty step’ with the DfE and Care Quality commission so far in this decade.

If that percentage and the split between types of authorities doesn’t raise questions about why and why some authorities are more likely to be faced with improvement notices than others, then I think we have a serious lack of inquiry.

The relationship between the size of an authority and competence to deliver high quality services is important, both because of the Reform Party’s pledge to cut out waste, and the Labour government’s intention to reform local government. Both need to be seen in light of this list. Is bigger better, or is local government outside London just not well-enough funded

Of course, I must declare a personal interest, since I look over as Cabinet Member for Children’s Service (excluding SEND) after Oxfordshire received a ‘notice’ in the autumn of 2023 about the quality of its SEND provision.

To some extent with SEND, authorities are at the mercy of the NHS, over which they have little power, and that relationship with SEND needs to be investigated thoroughly. Penalizing democratically elected local government for the failing of a nationally run NHS is neither fair not equitable. That the government’s funding of the High Needs Block may add to local government’s problems also needs to be taken into account. Oxfordshire is in the bottom 30% for SEND funding.