Andy PerkinDevelopment Officer

Locality

Community Right to Challenge

Locality is the leading nationwide network of settlements, development trusts, social action centres and community enterprises. 

Locality

Locality was formed through the merger of bassac and the Development Trusts Association, two leading networks of community owned and led organisations.

Locality members

Communi

ty ledDriving social changeCommitted

to

community

enterpriseDeveloping assets

Independe

nt

700 members

in the UK Combined income of £297mof which

£177m is

earned

income £643m community assets

5,000

staff &

23,000

volunteers

Locality Members

grant funding assets enterprise

Enterprise

sales / manufacturing

Butchers shop – Mull and Iona

Development Trust

Craft sales web site – Moseley

Community Development Trust

Garden furniture - Colebridge Trust

Enterprise

services

Distribution- Colebridge Trust

Training - WATCH

Gardening - Old Hall People’s

Partnership

New Community Rights

BUILD

BID

CHALLENGE

CHALLENGE

Community Right to Challenge

challenge and take over a council service they think can be better run

Background• Part of the Localism Act

• Changing the way public services are delivered– more choice, decentralised, fair & accountable

• Social Value Act - duty to consider social, economic and environmental wellbeing when commissioning

• Best Value – duty to consult when commissioning – actively engaging with community groups and users

CHALLENG

E

Who can use the Right to Challenge?

• voluntary and community bodies• charities• parish and town councils• 2 or more employees of the Local

Authority involved in that service

- these are called ‘relevant bodies’

CHALLENG

E

Which authorities can be challenged?

• local authorities– County councils– District councils– London borough councils

• certain fire and rescue authorities

- possibly others in the future

- these are called ‘relevant authorities’

CHALLENG

E

How is the challenge made?

The relevant body submits anexpression of interest

(EOI) to the relevant

authority

CHALLENG

E

Which services does Challenge apply to?

All services provided by, or on behalf of, a relevant authority are defined as

‘relevant services’- unless they are expressly excluded!

CHALLENG

E

The Challenge process1. Local authority specifies how and when

EOIs can be submitted – otherwise submitted at anytime

2. Relevant body submits EOI. - Must make a sound business case and show

how they could deliver or contribute to delivery of a service, better

3. Local authority accepts, rejects, or passes back for amendment - can only pass back if they would otherwise reject

4. If accepted, pause before procurement starts

CHALLENG

E

The Challenge process

CHALLENG

E

March – April 2013

Service delivery starts

Procurement procedure starts

EOI window Accepted within 5 months

September 2013

March 2014

September 2014

typical example…

18 months?

Why can a Challenge be rejected?Service reasons

– services for vulnerable people with highly complex needs

– services jointly commissioned with the NHS– plans would lead to breach of statutory duty or law

Transformation reasons - Decision already made to – cease providing the service– contract out the service– negotiate a spin-out with staff

– must be a formal, documented decision

CHALLENG

E

Why can a Challenge be rejected?Subjective reasons

– EOI is “frivolous or vexatious”– Relevant body lacks the capacity (inc consortia

member)

– Detail of plans are “inadequate or inaccurate”

CHALLENG

E

Issues• What is the market? - Local Authority budgets cut

• Smaller contracts – uneconomical?

• Opening the door for others – private sector?

• Potential for creating conflict with LA• Contradictory policy (Localism vs Gershon)

• Inappropriate windows for EOI• Requirement to provide information• Changing the shape of contracts after EOI

CHALLENG

E

Opportunities• Encourages ‘local thinking’• Co-design of services• Breaking down contract size• A catalyst for voluntary & community

sector collaboration

CHALLENG

E

Funding for CRtChallenge• available from Social Investment Business

(Community Right to Challenge programme)

• Pre-feasibility grants of £5k to £10k• Feasibility grants of £10k to £100k• can apply for 50% or 30% of contract costs

(depends if under or over £30k)

• intended for consortia building, training, expertise, business planning, market research…

• not intended for equipment, building costs or running costs

CHALLENG

E

Community Right to Challenge

any questions?

CHALLENGE

Where to now?

HELPHELP

mycommunityrights.org.uk

mycommunityrights.org.uk

Where to now?

The Contract Readiness Wheel

WE Could

DO THAT

WE’d LIKE TO BUY THAT

WE

WE’d LIKE TO BUILD THERE

WE’d LIKE TO

Bui

WE’d LIKE TO

BUY THAT

ME TOO

TH

www.locality.org.uk

0845 458 8336

andy.perkin@locality.org.uk