The Newham Council Cabinet met to discuss the Overview and Scrutiny Committee's (OSC) call-in regarding proposed changes to employee terms and conditions at Juniper Ventures, a council-owned company. The Cabinet addressed the OSC's recommendations, agreeing with some and partially or fully rejecting others. They ultimately voted to approve the Executive Response to the Juniper Ventures Call In.

Juniper Ventures Employee Terms and Conditions

The main item under discussion was a call-in from the OSC regarding a key officer decision made on 15 April concerning proposed changes to annual leave and sickness terms and conditions at Juniper Ventures. Councillor Mr Hudson presented the OSC's recommendations, which stemmed from concerns about financial stewardship, transparency, and the potential creation of a two-tier workforce.

Councillor Neil Wilson, Cabinet Lead for Health and Adult Social Care, introduced the Executive response, noting that the recommendations had been carefully considered by himself and Councillor Sarah Jane Ruiz, Deputy Mayor and Cabinet Member for Children Services and Education, and Sustainable Transport, particularly in light of the legal and financial context.

The OSC made eight recommendations, which the Cabinet responded to as follows:

1. Business Plans: The OSC recommended that business plans for all council subsidiaries, including Juniper Ventures, should be approved by the Cabinet before the main council budget is set. The Executive agreed that the council should provide continual assurance on all its local authority trading companies (LATCOs), including performance and risk implications, but did not accept the resolution in its entirety. Councillor Wilson explained that shifting the timetable for business plan sign-off would be problematic, as it would isolate LATCOs from the rest of the budget-setting process due to timescale differences. Councillor Wilson said:

   It is not overall rejection to trouble with if we have a sort of binary division, and that's why I welcome the legal guidance that we can be partially on recommendation. If it is a yes, no, it becomes either one side or another, and life is not as straightforward as that.

   Councillor Wilson also noted that accurate and up-to-date information on LATCOs is considered when the council sets its budget, and was included in the budget-setting process in February. Councillor Zulfiqar Ali, Deputy Mayor and Cabinet Member for Finance and Resources, and Environment, added that while a perfect sequence of subsidiary business plans being signed off first would be ideal, it is not always practical. He assured the Cabinet that the substantive content of the plans is known in advance of setting the council budget, and any material issues would be addressed.

2. Documentation: The OSC requested that the statutory scrutiny officer review current processes to develop an appropriate process for providing papers. The Executive agreed with this recommendation, acknowledging the need to improve processes to ensure that scrutiny has appropriate information in a timely and comprehensive manner. Councillor Wilson described the situation as frustrating and said that the executive shared that frustration.

3. Planning for Future Risk: The OSC recommended that Juniper's risk management and financial processes be robust, including ensuring that any material risk is appropriately disclosed to shareholders and considered as part of the financial underside. Due to the discussion involving exempt information, the press and public were excluded while this recommendation was discussed. Upon returning to public session, Mayor Rokhsana Fiaz OBE, of Newham, introduced an additional recommendation, 2.4, which read:

   Note that as part of the Juniper business plan that will be presented to cabinet matters as raised in exempt appendix 21 are detailed clearly.

4. School Meals Funding: The OSC made recommendations around the council improving its plan for financial risk, and also requested that the council ask the Mayor of London and the Department for Education to back the funding for school meals to cover the full cost, including the London Living Wage. They also recommended that any contractor delivering these services is required to pay the London Living Wage as part of the funding conditions. Councillor Ruiz explained that Newham is fortunate because the Capri scheme[^1] requires all providers to pay the London Living Wage and contribute to the local government pension scheme. She also noted that the changes to terms and conditions had been under negotiation since the previous October, and that without agreeing to the changes, Juniper Ventures may not have survived due to pressures on the cost of food and labour. She said that the changes had been well negotiated by the three main trade unions, Unison, Unite, and GMB, and accepted by their staff.

   [^1]: The Capri scheme is not defined in the meeting transcript.

5. Key Officer Decisions: The OSC considered that the decision should not have been dealt with as a key officer decision, given its sensitivity. The Executive responded that the decision was made in line with the Constitution scheme, but that the Constitutional Review Working Group plans to review governance frameworks for councils as they relate to externalised companies and LATCOs, which will report to the full council.

6. Financial Review: The OSC recommended that an appropriate commercial financial review of Juniper Ventures and all council-owned companies be undertaken to ensure financial viability and best value. The Executive responded that since the formation of the company in 2018, processes for oversight have been developed and refined, including matters reserved for the shareholder, monthly monitoring of financials, an internal investment oversight and advisory board, and annual company review processes. Councillor Wilson stated that the Executive believes that the current processes strike the right balance between oversight and allowing the company's leadership to drive performance.

7. Partnership Opportunities: The OSC recommended exploring opportunities for going into partnership with neighbouring boroughs as a shareholder fixed board. The Executive responded that they are actively and continuously exploring this, and that Juniper is actively working to sell its services to schools and groups of schools, including those outside the borough.

8. Transparency: The OSC recommended accountability and transparency, with referral to the Cabinet. The Executive welcomed this recommendation, stating that the papers were late because they wanted to make clear that their approach was not dismissive, but reasoned and welcomed.

Mayor Fiaz added that the challenging macroeconomic climate impacts all organisations, and that the points raised regarding the cost of food and the ongoing cost of living pressures are challenges for national, regional, and local government. She also noted that serious conversations are required regarding the future status of all externalised bodies, including LATCOs.

Councillor Ali assured the OSC that the council is doing everything it can to review the financial aspects, including the budget gap, and that they are looking at opportunities to save, invest, and be more efficient.

Following the discussion, the Cabinet voted to approve the recommendations as amended.