East of England Region Workforce Division Update Nigel

East of England Region Workforce Division Update Nigel Carruthers Senior Adviser, Workforce Policy and Strategy Date th 14 September 2011 www. local. gov. uk

My road map for the next 30 mins… • Describe the national context • Update on ‘new’ Local Government Group (LGG) • Explain LGG’s Workforce Team’s Priorities 2011 -12 • Discuss how we can develop a stronger partnership between LGG and the region

National context – LG Workforce • New political context: The coalition government has created a new climate for public services. • 1. 2 million people employed in LG (2010) average 50% of council costs relate to employees • The biggest cuts in the public sector – 12% of grant in 2011 -12 (around £ 3. 5 bn) leading to total funding gap of £ 6. 5 bn • No pay rise for 2 years and 50% earn under £ 18, 000 pa • 140, 000 posts will be axed or approximately 1 in 10 people will lose their job • Cost of redundancies average £ 16, 000 person

National context – LG Workforce • Analysis indicates only 5% (max) of required cuts can be achieved through changes to terms and conditions • Constant pressure from community groups and media • Pay negotiations and the need for a ‘new’ approach • Pensions challenge – responding to Hutton • Pending IR climate – strikes? • Public Health Reform • Academy Schools • Talent ‘lag’ and skills deficit threatens public sector reform? • Big Society – rush to find ‘new models of working’ • Policy and legal changes – e. g. AWRs, etc

New Local Government Group • LGG formed from the existing ‘central bodies’ – LGA, LGE, I&De. A, Local Partnerships, LACORS, Leadership Centre • New Organisational ‘structure’ • New Chair – Sir Merrick Cockell (Royal Borough of Kensington & Chelsea) • New Chief Executive Carolyn Downs • 50% budget reduction and 45% reduction in staffing levels

Local Government Group and Workforce Strategy Team • A focus on maximum influence – the national pay framework • Skills innovation and workforce development • New ways of working including social enterprises • Innovative HR practice www. local. gov. uk

Local Government Group and Workforce Strategy Team A focus on maximum influence – the national pay framework – A new national concordat – a partnership for change: – A new structure for national negotiations – Reform of terms and conditions – the future of the Green Book – Top pay – the focus on senior managers pay in response to Hutton report www. local. gov. uk

Local Government Group and Workforce Strategy Team New ways of working including social enterprises – Continue to support councils to remodel, restructure, and create a coherent operating model. – Support for councils as they support employees locally to deliver social enterprises. – Transfer of undertakings: scrutinise any proposed changes to current legislation to ensure local authorities have accurate advice – Pay Structures & T&Cs : support to councils as they change existing conditions of service to configure their future workforce www. local. gov. uk

Local Government Group and Workforce Strategy Team Skills innovation and workforce development – renewed focus on managing talent – Flexible utilisation of workforce skills to drive productivity – tackle local youth unemployment as employers through apprenticeships – better ‘employer’ partnerships between councils and local private, and third sector employers – Continued support to Leadership Development – Focus efficiencies in how we can commission and deliver learning and skills development www. local. gov. uk

Local Government Group and Workforce Strategy Team Innovative HR practice – de-layering managerial spans of control providing councils with advice and guidance on how to develop organisational structures for the future. – Supporting an engaged workforce: we propose to continue to support councils in improving employee engagement – Support to the HR profession via a project initiated with SOLACE and PPMA. This project will look at the capability and capacity of HR in LG www. local. gov. uk

Local Government Group - Workforce Working with the regions Areas to work together on? • Consultation process in support of national negotiation • Developing local governments response to central govt initiatives and proposed legislation and workforce implications of policy • Research / intelligence gathering • On site support, consultancy services • Events • Provision of advice and guidance • Knowledge Hub and Communities of practice www. local. gov. uk

Thank You