Purpose

The purpose of the report is to seek agreement that the following be signed (and sealed, if applicable) on behalf of Knowsley Borough Council:

•         Inter-authority agreement – Knowsley’ entry into the STAR Procurement shared services arrangement.

•         TUPE agreement – transfer of staff and property from Knowsley Metropolitan Borough Council to Trafford Borough Council.

These decisions are being sought to facilitate the Council’s entry into a new shared services arrangements through which its procurement support services will be delivered.  This direction of travel was confirmed by Cabinet and Full Council decisions in July and August 2023 respectively after a substantive service review and is now to be underpinned by the specified legal agreements.

Decision

(i)       That, further to the Cabinet’s decision on 12 July 2023, the inter-authority agreement, attached at Appendix A to the report, confirming the terms of Knowsley Metropolitan Borough Council’s entry into the STAR Procurement shared services arrangement, be executed on behalf of Knowsley Metropolitan Borough Council; and

(ii)       That a TUPE agreement, covering the transfer of staff members and property from Knowsley Metropolitan Borough Council to Trafford Borough Council, attached at Appendix B to the report, confirming the obligations of the parties be executed by Knowsley Metropolitan Borough Council.

Alternative options considered

The details of the alternative options considered and rejected as part of the substantive service review were set out in previous decisions:

·       Decision - Procurement Service Review - Options Appraisal Outcome - Knowsley Council – Delegated decision - 20 March 2023.

·       Decision - Procurement Service Review - Entry into Collaborative Shared Services Arrangement (*) - Knowsley Council – Cabinet decision – 12 July 2023.

At this stage, the alternative to the Council entering into the legal agreements would have the effect of undermining these decisions and bringing to a halt the process of entry into the shared services arrangement - STAR Procurement.  In the circumstances, this option has been rejected as it has been determined that these arrangements are acceptable from a Council perspective and will facilitate the delivery of an enhanced procurement support service for the Council, capable of delivering on strategic priorities and key outcomes.