Best Value Review of the Joint Arrangement for Library Services to Education FINAL REPORT

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1 Best Value Review of the Joint Arrangement for Library Services to Education FINAL REPORT 1

2 CONTENTS PAGE Page No. 1. INTRODUCTION 3 2. INTERIM REPORT The Strategic Case for Library Services for Education Profile and Appraisal of the Joint Arrangement Current service provision Finance Participation and Pricing Stakeholders Views The Comparative Picture Future Needs 8 3. KEY ISSUES AND CONCLUSIONS OF THE INTERIM REPORT 8 4. OPTIONS FOR THE WAY AHEAD 9 2

3 1. INTRODUCTION 1.1 This report summarises the results of Leicester City Libraries Best Value Review of the joint arrangement covering Library Services for Education (LSE) and seeks approval on what is considered to be the most appropriate way forward. 1.2 The interim report was completed in July 2001 and provided information on the key facts, findings and issues raised as part of this Review. From the start of the Review it has been important to focus only on the terms of the joint arrangement and to keep separate those issues which are relevant to a full Best Value Review of LSE. A complete Best Value Review of LSE is not the responsibility of Leicester City, but of Leicestershire County Council as lead authority for the service. LSE has been subject to a first year Best Value Review by Leicestershire County Council. Options for future delivery of the service which are currently being considered by County Council elected members are: 1. Centralised provision offering a wide range of quality library services to schools 2. Budget service. Varied options are presented as examples designed to give schools the choice of an even more basic, and therefore lower cost option, than currently exists for a per pupil costed package (the current method of determining price) 3. Provision of an advisory service only 4. Provision of a loan service only 5. Decentralisation of the service delivery through the Public Library network 6. Discontinuation of the service At the time this report was prepared, the outcome of County Council member decision is unknown. 1.3 The joint arrangement has been subject to the Government 4 Cs of Best Value: Challenging the purpose and need of the joint arrangement and the way it is delivered currently Comparing the performance of LSE in the delivery of the joint arrangement with other providers Consulting with stakeholders about the current delivery of services and suggestions for improvement to the current service Examining the use by City schools of competition as a way of ensuring VFM and efficiency 3

4 2. INTERIM REPORT The interim report covered the following: The strategic case for the joint arrangement A profile of the current joint arrangement An assessment of how the current joint arrangement is performing A consideration of the future needs of schools in Leicester City for LSE A framework of options for the delivery of schools library services to schools in Leicester City. 2.1 THE STRATEGIC CASE FOR LIBRARY SERVICES FOR EDUCATION This section of the Interim Report challenged why schools library services such as LSE exist. The Review identified that Library Services to Schools are one way that schools can access books and other library resources to support children s learning and reading development. This Review was undertaken with the clear understanding that the responsibility and accountability for the quality and effectiveness of schools libraries lies with head teachers and governors and the relevant means of inspection is through OFSTED. The joint arrangement, which was established at Local Government Review in 1997, was made on the basis that the arrangement was at that time, an effective means of helping schools to maintain their libraries. However, the environment in which schools operate has changed considerably in the last few years the introduction of the National Curriculum, local management of schools and delegation of budgets and Fair Funding have all contributed to the schools autonomy in making budgetary decisions based on local need. There has also been an impact on the bookpurchasing pattern of schools by the ending of the Net Book Agreement, which has enabled publishers to directly market to schools offering large discounts. The impact of changes in the environment has been to increase the choice available to heads and governors, when they are considering the most effective ways of using their budgets The interim report initially looked at the strategic case for LSE in the context of: The need to raise educational attainment in Leicester City The fundamental need for children to learn to read and develop a level of competency which can underpin learning and reading for pleasure throughout their lives Key strategic documents for Leicester City including the Community Plan and Cultural Strategy The review identified LSE as one of four sources of books for children. The other three: home, the public library and the school, all provide books directly to children, whereas LSE is a provider of books loans and services which schools can purchase. 4

5 2.1.4 The public library is a statutory service which supports children s out of school learning and recreational reading, and also supports family approaches to learning by providing resources for home and library use Neither LSE nor school libraries are statutory services but the majority of schools do have some library provision. The introduction of the National Curriculum emphasised the importance of access to books within the school and classroom for wider reading for general study and for the development of information skills. Standards of provision vary but schools have two options for acquiring the books for their libraries and classrooms: To buy into a school library service such as LSE To buy books (Some schools use a combination of both) At this point in the Review it was evident that LSE is one of the means by which schools can support children s learning and can achieve strategic priorities. However the significant strategic issue for the Best Value Review was whether the joint arrangement between Leicester City Libraries and LSE was still appropriate for a service provided by a business unit, funded directly from schools own budgets, with the decision to use and purchase the services resting solely with individual schools. 2.2 PROFILE AND APPRAISAL OF THE JOINT ARRANGEMENT The Best Value Review was undertaken because of concerns around the VFM and effectiveness of the joint arrangement for City schools and for Leicester City Libraries. Consultation for the Review has identified that quality of services from LSE is not an issue for schools but value for money is because the poor link between quality and affordability has resulted in charges which a majority of primary schools perceive as too high. The key concern is to ascertain the benefit to City schools of the subsidy which is paid directly to LSE from Leicester City Libraries under the joint arrangement and whether the needs of children in schools can be met in other ways. 2.3 CURRENT SERVICE PROVISION The main services and facilities provided as agreed in the joint arrangement by LSE and which city schools can buy into are loans of books and other resources, and professional advice to school staff. LSE also provides: Seminars and user group meetings In service education and training on library issues A range of publications to support the advisory work Exhibition and stock buying facilities at the Rothley showroom 5

6 2.4 FINANCE Employee costs Within the joint arrangement Leicestershire County Council allocates no monies to staffing costs. However, schedule 6 within the joint arrangement designates 2.5 librarians (scale 6 - PO39) and 4 clerical assistants (scale 1 6) as required to provide library services for education for schools in Leicester City. This staffing ratio was negotiated before the impact of Fair Funding and now needs to be re-examined if the joint arrangement is to continue, to ensure that the staffing required represents the current level of LSE services to the city The joint arrangement charge is split by Leicestershire County Council into charges for accommodation and stock. Premises costs Books and resources 41,890 58% of total joint arrangement costs 30,790 42% of total joint arrangement costs LSE recoups less than two thirds of its total costs from charges to schools. Although its status is a business unit, the service relies on core funding from Leicestershire LEA, Leicestershire Library Service and the subsidy from Leicester City Libraries paid under the joint arrangement. In 1999, following Fair Funding, Leicester City s LEA ceased to provide funding directly to LSE, deciding instead to delegate the monies directly to Leicester s schools. Leicester City Libraries continuation of payment 72,680 each year directly to LSE is incompatible with the City LEA decision to fully delegate budgets to schools. 2.5 PARTICIPATION AND PRICING Since Fair Funding in 1999, level of usage of LSE by City schools is as follows: Primary schools 35 % Secondary schools 88% Special schools 72% LSE is established as a trading unit within Leicestershire County Council and offers a range of prices depending on the level of service a school requires. Average costs are indicated below: Primary school 200 pupils Full service 1240 per yr Basic service 770 per yr Secondary school 1,200 pupils Full service 7440 per yr Basic service 4620 per yr Full service ( 6.20 per pupil on roll) includes: loan of books, mobile visit to school, book exchange, project loan, professional advice and support personal 6

7 visit and telephone, discount on INSET training (20%), exhibition facilities at Rothley, seminars and meetings. Basic service ( 3.85 per pupil on roll) includes: loan of books, annual mobile visit to school or exchange of books at Rothley, telephone advice, exhibition facilities at Rothley, seminars and meetings Expenditure per pupil served. This figure is calculated by taking the total cost of LSE to County, City and Rutland, divided by the number of pupils in all the schools that use the service in all three authorities. Separate unit costs are not available for City schools. Total expenditure is 6.09 per pupil served Exp on staff 2.70 per pupil served Exp on materials 2.33 per pupil served Other Exp per pupil served Total 6.09 per pupil served 2.6 STAKEHOLDER VIEWS Stakeholder consultation for the whole LSE service was undertaken in 1995 and in 2000 as part of a Leicestershire County Council led Best Value Review. The consultation revealed widespread satisfaction from users for LSE staff, stock and ICT developments. Issues for improvement were high charges, better promotion and marketing and the need for improved partnership working with Leicester City LEA and Libraries Stakeholder consultation for Leicester City Best Value Review of the joint arrangement demonstrates good awareness of the range and quality of services from LSE but that the main barrier to take up is cost. 2.7 THE COMPARATIVE PICTURE This section of the interim report compared level of take up of the service, cost of the service and the use of resources (staffing and stock) with Leicester City s CIPFA family group authorities and a selected comparator group Take up of services. The take up of services from both the CIPFA family authority group and the selected comparator group, shows that LSE has a low take up of services from primary schools (bottom quartile), but that take up of the service from secondary schools is in the top quartile Cost of the service. It is difficult to assess comparative expenditure as much of the comparative information from the family and selected comparator groups is incomplete due to non return of information, an authority s wish to keep financial information confidential or an authority simply not knowing the level of information required. However, it is possible to analyse LSE s comparative costs as follows: 7

8 2 nd highest expenditure on staffing for the family group and highest within the selected comparator group 2 nd highest expenditure on materials for the family group 2 nd highest expenditure cost per pupil served within the family comparator group 2.8 FUTURE NEEDS Raising educational attainment will remain a priority for the City Council in the foreseeable future and books and library resources make a crucial contribution to raising standards. As outlined earlier in the final report, schools library services are one way in which schools can access books and library resources to support children s learning Following Fair Funding in 1999, some LEAs nationally have held back a proportion of the delegated budget to support a schools library service. In Leicester City, the LEA delegated the total budget for school libraries provision to schools, allowing headteachers and governors autonomy on how best to support the children in their care. Decisions on whether to buy books, buy the services of LSE or use the money in a different way are now made by schools. 3. KEY ISSUES AND CONCLUSIONS OF THE INTERIM REPORT 3.1 The interim report has identified that the current joint arrangement does not support the majority of City schools in raising educational attainment. In 2000/01, although 88% (14) of City secondary schools subscribe to either a basic or full service, only 35% (31) of City primary schools use the service % of City primary schools do not subscribe to LSE service and therefore receive no benefit from the 72,680 subsidy. 3.3 LSE has indicated that should Leicester City discontinue the joint arrangement, charges for City schools may rise. However the charges for the service are already considered to be too high by 21% of school governors and 67% of non-subscribing primary headteachers. 3.4 Alternative sources of supply of books are available to City schools including commercial suppliers and alternative library services to education. 3.5 There is a link between the low take up of services by primary schools and LSE s marketing and charging strategies. 8

9 4. Options for the way ahead Note: each of the options listed below assumes a total 2% saving of 5,548 from Service Areas 2-5 of the Libraries Review. Term of notice required for discontinuation of the joint arrangement is one year. Option 1 Continue the joint arrangement Advantages Disadvantages Option 1 Renegotiate JA to take into account the following issues: Breakdown of the JA charges to the City into stock, staffing and accommodation Development of an integrated strategy for public library services and LSE to ensure the most effective ways of improving services to schools Improved marketing of LSE to City schools High costs of the service to City schools Costs 67,132 Clearer joint arrangement Some primary schools may continue to choose alternative uses of their budget. Therefore there is no guarantee that this option will have an impact on the level of buy back by City primary schools. Lack of clarity remains on how subsidy from Libraries directly supports schoolchildren in City The service may still fail to represent Value for Money from perspective of primary schools. Cost of the service may still be a barrier to use of the service by City primary schools. The balance between quality and affordability of the service for City schools is still unresolved. The charge for the joint arrangement operates as a subsidy to LSE and cushions the service against competition 9

10 Option 2 Discontinue the joint arrangement Advantages Disadvantages Cease JA and redirect resources within the City library service to support children s out of school learning Please note: action and funds to support children s out of school learning have been redirected within the public library service following the Libraries Review These include: Increase in regular (at least twice a week ) out of school learning opportunities from 10 libraries to 16 Additional staff costs approximately 5,000 Refocusing of the work of Bookbus 2 to target children and young people without easy access to static library provision. Extension of the children s library at Central lending to accommodate more stock to support learning and study spaces for children Additional bookfund 10,000 Underfives strategy to include SureStart at Beaumont Leys,( 20,000 confirmed), Highfields and St Matthews Libraries (funding not yet confirmed) Books for Babies project for all babies in the City Yr ,000 Annual 2 week promotion of services to under fives Marketing 1000 Regular under fives storytelling sessions at every City library Improved services for childminders Marketing 200 Costs 67,132 The redirected budget would support the strategic objectives of the library service in providing out of school learning. However the redirection of funding would not enable public libraries to replicate LSE services for the reasons outline in the introduction to part 4 in the Interim Report. If the current costs of the joint arrangement were distributed equally throughout the City network, this would mean an additional 3,196 for each library or additional 350 books per year. Schools could still choose to buy LSE services with their delegated budgets if they so wished. It is difficult to assess how the withdrawal of 72,680 subsidy would impact on those schools who continue to buy into LSE. However, LSE may not be responsive to the market place and withdrawal from the joint arrangement may result in higher charges for City schools that choose to use LSE. Notice of withdrawal from the joint arrangement (one yr. necessary), would be made prior to the results of the County Best Value review of the whole service. (Please see final report 1.2). The County review could recommend changes to improve the service. 10

11 Option 3 Discontinue the joint arrangement Advantages Disadvantages Establish a Leicester City Library Services for Education Costs 162,625 per annum (Cost estimated from revenue costs of Leicester City CIPFA family group who operate Services for Education) City based service focused on the needs of City schools Capital and revenue costs higher than current joint arrangement Fair Funding has led to uncertainty over future developments for many school library services. Budgets are now delegated to schools and there is freedom within schools to buy school library services from any provider or to buy books. There is therefore ample chance for city schools. 11

12 Option 4 Discontinue the joint arrangement Advantages Disadvantages Cease JA and delegate the budget to City schools Costs 67,132 This action would reflect the Government intention to delegate budgets to schools as demonstrated under Fair Funding and the approach by City LEA in 1999 to delegate all monies for LSE directly to schools. Each school would have additional funding. Estimated subsidy for each City school would be an additional 643. However charge may rise (see disadvantages). It is difficult to assess how the withdrawal of 72,680 subsidy would impact on those schools who continue to buy into LSE. However, LSE may not be responsive to the market place and withdrawal from the joint arrangement may result in higher charges for City schools that choose to use LSE. Notice of withdrawal from the joint arrangement (one yr. necessary), would be made prior to the results of the County Best Value review of the whole service. (Please see final report 1.2). The County review could recommend changes to improve the service. Schools may choose not to buy books or buy LSE services with the delegated budget Leicester City will have no authority to direct how schools spend the delegated budget 12

13 Option 5 Discontinue the joint arrangement Advantages Disadvantages Cease JA and allow LSE to establish its services at market level to meet current City school requirements. Redirect savings to contribute to City Council budget strategy Contribution to City Council budget strategy Loss of 67,132 which could be redirected towards raising educational attainment for City schools Cost of the service from LSE to City schools may rise. Potential savings 67,132 Note: The joint arrangement makes full provision in the event of its termination: In respect of staff already identified as being engaged only because of the joint arrangement i.e. over and above the County s establishment for the provision of it s own services, the City and County are each to use best endeavours to redeploy such staff. If that fails the City are to indemnify the County against any reasonable costs of redundancy. The County at all times to seek to minimise such costs. In addition the agreement provides the property and equipment listed in the agreement returns immediately to the City. 13

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