Issue - meetings

Report of the Director of Children and Young People’s Service  - To propose the unit closure of the Education ICT Team

We were asked to consider proposals for the closure of the Education ICT team. The primary reason being that the unit was no longer able to be funded by external Government grants or by the Council. The current cost of funding the unit was £516k, it had an overspend of 35k and its overheads were funded by the Council. The team of 9 staff had been formed over a period of 10 years and provided traded ICT support to schools.  They had been funded by a range of ICT Government grants and initiatives, core Council revenue budget and income from schools. It was strongly anticipated that the main Harnessing Technology Grant would no longer be available from 2011/12. We noted that the option of maintaining the service but increasing the charges made to users of the service, schools, had been explored with head teachers.  However, there had not been a strong indication given from schools that they were prepared to increase payments to continue use of this service. This was understandable as school budgets were as yet unconfirmed and only likely to be finalised at the end of March .Confirmation could only be provided in July of the services to be purchased by schools which meant funding the unit at a loss with no guarantee of income. It was widely felt that due to the economic climate and cuts in public spending it would be unlikely that schools would have the extra income to continue to purchase this service at a required increase of 28% in cost and it was unclear if there would be a ready market for the provision of this service. In essence, there was a financial risk to the Council with the continuation of the service.

In terms of responsibility for the employees and clients  that would be affected by the closure of this service, we  noted that ,since the compilation of the report , six of the total nine staff ,of the unit, had been granted voluntary redundancy. Some of these staff were contemplating setting up their own enterprise and offering private ICT support services to schools and would obtain advice and support from the directorate on this. Information on alternative providers for this service would also be provided to schools to assist them in this transition period.

Concern was expressed by some members about the withdrawal of this support service to schools when there was felt to be a need and market for this provision. Clarification was sought on what had been done previously to address the financial viability of the service and whether any benchmarking exercise had been undertaken. Also understanding was sought on whether the service could continue to be provided and the ways in which this could be achieved.   The level of communication with head teachers was queried and information sought on whether the impact of withdrawing this service had been fully acknowledged by them. In replying to the committees concerns the context around the proposals to cease this service were  ...  view the full minutes text for item 72