2016 06 30 Paul Joyce Handout BCC case overview

Birmingham City Council: case overviewPrefaceAs you will see, Birmingham City Council was at a very significant conjuncture of events and trends in the years 2014 to 2015, and one in which powerful external voices were calling for a step change in the strategic capabilities of Birmingham City Council.Paul JoyceJune 2016IntroductionBirmingham was the second largest city of the UK in 2014. Its population was over 1 million people, having risen significantly after 2001. The city centre had benefitted in preceding years from large-scale physical regeneration but the city still had serious problems in terms of povertyand more regeneration was seen as needed in central and east Birmingham.According to a 2014 review, the city’s economic performance was seen as being less than it should be,Birmingham City Council governed the city. There were 120 elected councillors to represent the people of Birmingham. In 2014 Sir Albert Bore was the Leader of Birmingham City Council. He was elected leader by the Labour Party councillors, who were in the majority on the council. He had been the political leader of the council for 15 years.An important event in the politics of Birmingham was what became known as the Trojan Horse affair. It occurred in 2014 and this led to a perception in some quarters that Birmingham City Council’s management was ineffective and that intervention in the running of the Council was needed.In 2014 an independent review was carried out into the governance and management of Birmingham City Council and published in late 2014.In 2015 Sir Albert Bore resigned and a new leader of Birmingham City Council was elected. The new leader was John Clancy, who just before he became the leader,spoke to The Guardian, a national newspaper, about his ideas for the city (Morris 2015):“…Clancy said his motto would be “every child, every citizen, every place matters”.“In the past, perhaps, the city council has been too focused on the city centre and seeing itself through the city c entre. I’m taking a view that we look at a 40-ward strategy across the city.””City situation: the state of the city of BirminghamIn the 1980s and 1990s the population of Great Britain increased. However, during the same period, Birmingham’s population declined. The downward population trend ended with the turn of the millennium. In contrast with the two previous decades, in the period from 2001 to 2013, the population of Birmingham increased by 11%.A forecast based on Census 2001 and 2011 data and Office for National Statistics population projections suggested that Birmingham might grow by another 150,000 residents (14 percent) in between the years 2011 and 2031 and that populations in areas around central Birmingham would grow by more than 30%.Table: Population data and forecastsSource: Department for Communities and Local Government (2014), page 5 Birmingham’s population in 2013 was relatively younger than the rest of GreatBritain – 46% of Birmingham people were under 30 years old. Its older residents – those who were 65 years old and older – were a relatively small proportion.Birmingham is ethically diverse. It has several big ethnic communities, with the largest being Pakistani. See Table 2.Table 2 The ethnic composition of Birmingham residents, 2001 and 2011Source: Department for Communities and Local Government (2014), page 5According to the Office of National Statistics (ONS) (2016) the recent history of Birmingham’s economy was as follows:“Birmingham’s economy grew by only 1.6% between 2013 and 2014, just failing to keep pace with inflation at 1.7%. There was strong growth in construction (15.3%), recreation and other services (9.2%), professional and business support services (9.1%) and information and communication (9.0%), offset by falls in finance (-16.5%), mining and utilities (-11.0%) and public services (-0.2). Between 2009 and 2014 the economy of Birmingham grew by 16.3%. The strongest growth was in recreation and other services (75.7%), with real estate (40.4%), professional and business support services (27.9%), construction (27.6%) and manufacturing (24.3%) also doing well. Over the same period the finance industry decreased considerably (-19.9%) and mining and utilities also fell (-8.0%).”Many of those working in Birmingham were residents of Birmingham. But the city also employed many people living outside Birmingham, in places such as Solihull, Sandwell, Dudley, Walsall and, even, Wolverhampton. Likewise, Birmingham people might be found working in Solihull, Sandwell, Coventry and elsewhere. It should be noted that Solihull bordered Birmingham on its east sideand Walsall and Sandwell bordered the city on its west side. So, economically speaking, the Birmingham City Council area was not a self-contained economy when we look at the travel to work patterns.A comparison of major cities in Great Britain reveals that Birmingham was growing quite well compared to other cities outside London but that it was not keeping up with London – it grew at just above half the rate that London was: see Table 3 (ONS 2016).Table 3 Five-year GVA growth, 2009-2014Note: GVA is the gross value added and is used in the estimation of Gross Domestic Product (GDP). According to the ONS, GDP is GVA plus taxes on products and minus subsidies on products.However, the Kerslake report (2014) concluded that the economy had underperformed and this judgment was based on comparisons of Birmingham and other UK cities, including London, Greater Manchester, Liverpool and Sheffield.According to the Kerslake review, Birmingham had a low employment rate and its population was said to have low skills.In fact, according to government data, Birmingham’s employment rate had tended to fall between 1998/99 (when the rate was over 65%) and 2011/12 (when its employment rate stood at 57%). Its rate of 57% in 2011/12 can be compared to an employment rate of about 70% for Great Britain as a whole –that is, Birmingham had a rate that was about 13 percentage points lower than nationally.Its employment rate increased a little in 2013 and 2014 - its employment rate had increased to about 60% in 2013/14, which was one of the lowest among cities in Great Britain. The employment rates of Leeds and Sheffield were much higher at just under 70% in 2013/2014.Many of the people who are economically inactive do not want a job, are students, are retired, and so on. However, part of the reason for the low employment rate in Birmingham was the existence of unemployment in the city. According to data on labour markets in Great Britain from the Office of National Statistics, the incidence of an unemployment problem in Birmingham was relatively high. See Table 4.Table 4 Unemployment as a percentage of those aged 16 and over and economically activeSource: Office for National Statistics, 2016. NOMIS. [online] [29 June 2016). https:///reports/lmp/la/contents.aspxNote: Data for Birmingham and West Midlands is for April 2012 to March 2013, April 2013 to March 2014,April 2014 to March 2015, and for January 2015 to December 2015. The data for London and the UK is for a period November to January in each row of the table.Another indicator of Birmingham’s unemployment problem waswhat is sometimes referred to as the “claimant count”. This is the people receiving benefits from government for reasons principally of unemployment.Some selected data is shown in Table 5.Table 5 Claimants as a percentage of residents aged 16-64Source: Office for National Statistics, 2016. NOMIS. [online] [29 June 2016). https:///reports/lmp/la/contents.aspxNote: Claimants are people receiving benefits principally for the reason of being unemployed. Before April 2013 this was people receiving Jobseeker’s Allowance or National Insurance credits. From April 2013 it also included people receiving Universal Credit principally for reason of unemployment.The evidence pack supporting the Kerslake review presented the data on benefits slightly differently. It showed “out of work benefits”, which also included benefits for incapacity and lone parents. It was reported that in February 2014 Birmingham had nearly 16 per cent (15.8%) of its residents claiming out of work benefits, as against 10.6% in Great Britain as a whole (Department for Communities and Local Government, 2014. p.11).Poverty and deprivation exists in most countries. According to an analysis published in 2010, Birmingham was the 9th most deprived local authority in England and deprivation was concentrated in Birmingham’s inner city and in the east of the city (Department for Communities and Local Government, 2014. p.13). This point was also picked up in the Kerslake review:“Parts o f Birmingham are among the most deprived in the country and as a result there are more poor children than anywhere else in England” (Kerslake 2014 p6).The city also had pockets of “poverty” in terms of human skills, and these included a number of areas in the east of the city. Washwood Heath, Shard End, Bordesley Green, Tyburn and Sparkbrook were all areas in the east of the city –they were also areas where many residents had no qualifications.Council performanceThe Council’s services were judged to be variable by the Kerslake report. There were some services that were seen as effective. For example, the Council’s Youth Offending Teams had cut gang crime in the city. However, some services were seen to be poor. On example was the waste management service, and apparentlythere was dissatisfaction with this service. The media had highlighted issues in some Birmingham schools and the children’s services were judged to be poor. The Kerslake report suggested that children’s services were not go od enough.The local authority run schools in Birmingham appeared to be performing relatively well. Ajudgement on school standards was made by OFSTED, a regulatory body. It said that nearly a quarter of the schools run by the local authority were “outstanding”, which was a higher proportion than England generally (England had 18% “outstanding”). The attainment levels of school children in Birmingham were good: a relatively high proportion of school children achieved good GCSE outcomes. This was an aspect that could be seen as reflecting well on the performance of Birmingham City Council.There were problems, however, in Birmingham’s schools. OFSTED, the regulatory body, had “identified the potential for the radicalization of pupils and the narrowing of t he curriculum” (Department for Communities and Local Government, 2014. p.14).The OFSTED report for the West Midlands (OFSTED 2014 p.4) stated:“The potential for the radicalisation of pupils and the narrowing of the curriculum remain key areas of concern, particularly for Birmingham schools. The ineffective governance and leadership that have been observed in a number of schools may lead to the disassociation of pupils from the wider community. Any such disassociation must be challenged and reformed through our work.”OFSTED had inspected schools in Birmingham (OFSTED 2014 p.8):“HMI [Her Majesty’s Inspectors] carried out inspections of 21 schools in Birmingham between March and May 2014. Fifteen of these schools were inspected at the request of the Secretary of State. Six were inspected because of Ofsted’s concerns about the effectiveness of safeguarding and leadership and management in these schools. Following the inspections, OFSTED published an advice note to the Secretary of State.2The evidence shows that:‘…governors have recently exerted inappropriateinfluence on policy and the day-to-day runningof several schools in Birmingham. In other schools,leaders have struggled to resist attempts bygoverning bodies to use their powers to change the school in line with governors’ personal views.Birmingham City Council has failed to support anumber of schools in their efforts to keep pupilssafe from the potential risks of radicalization and extremism. It has not dealt adequately withcomplaints from headteachers about the conduct of governors. Her Majesty’s Inspectors identifiedbreaches of funding agreements in a number ofacademies. In several of the schools inspected,children are being badly prepared for life in modernBritain.’As can be seen, Birmingham City Council was specifically identified and criticized in the OFSTED report. Immediately after this summary of what the evidence had shown, OFSTED stated that the inspections “also raise concerns about the effectiveness of the local authority to hold schools and governing bodies to account” (OFSTED 2014 p.9).In this same report OFSTED said that based on recent inspections they judged Birmingham (as a local authority with responsibility for safeguarding arrangements for children) was inadequate. They said that Birmingham would remain a focus of their work in the West Midlands region and that it had created an additional Senior HMI role in the region “to enable a more urgent and sustained focus on Birmingham schools” (OFSTED 2014 p.12). The challenge was to deliver better outcomes and “a safer learning environment for Birmingham [school] pupils” (OFSTED 2014 p.12).Trojan Horse affairBBC News provided a timeline of the events that made up the Trojan Horse affair (BBC 2015). The BBC introduced the timeline by saying, “Four major inquiries have published their findings following claims that a group of conservative Muslims are taking over a number of schools in Birmingham.The anonymous, so-called Trojan Horse letter included advice on installing sympathetic school governors.The controversy continues to prompt local and national reaction. “The following is an abbreviated version of the BBC timeline.“7 March 2014Birmingham City Council reveals it is investigating a number of schools in the city after receiving a copy of an anonymous letter referring to Operation Trojan Horse - a plot by some Muslim groups to install governors at schools. It claims responsibility for ousting four head teachers.The Department for Education (DfE) confirms it is also investigating.17 March 2014Ofsted turns up at Park View Academy - one of the schools implicated - for a snap inspection.Two years earlier the predecessor school on the site had been graded outstanding. "All schools should be like this," Ofsted chief Sir Michael Wilshawhad said in March 2012. […]9 April 2014The governors of Park View Educational Trust describe the ongoing investigations as a "witch-hunt" .14 April 2014Birmingham City Council says it is looking into allegations involving 25 schools in the city, including primaries, secondaries and academies. Council leader Sir Albert Bore says he does not believe there is a "plot".15 April 2014West Midlands Police condemn the DfE's decision to appoint a former national head of counter terrorism to carry out its investigation for the message it sends [..]4 June 2014Home Secretary Theresa May accuses Education Secretary Michael Gove of failing to deal with an alleged Islamist plot to take over schools.In a letter she asks whether it is true that the DfE was warned about the allegations in 2010 and Birmingham Council as far back as 2008.9 June 2014Ofsted places five schools in special measures and confirms that a sixth (which was already in special measures) is "inadequate".Sir Michael says there is evidence of an "organised campaign to target certain schools" and finds that some governors attempted to "impose and promote a narrow faith-based ideology" in secular schools.The schools involved deny any wrongdoing. […]15 July 2014The board of trustees at Park View Education Trust resign. Its chairman TahirAlam says the decision was made in the interests of the children.He said a "co-ordinated and vicious" attack by former Education Secretary Michael Gove and the Department for Education had left the three-member board with no choice but to step down.[…]17 July 2014A leaked copy of Peter Clarke's report for the DfE finds evidence there was an agenda to introduce "an intolerant and aggressive Islamist ethos" into some Birmingham schools.Details of the report by the former counter-terrorism chief were leaked to The Guardian newspaper.18 July 2014Birmingham City Council releases key findings from its inquiry into 25 schools, prompting reaction from head teachers and others.Written by Ian Kershaw, it finds no evidence of violent extremism, radicalisation or an anti-British agenda being promoted. However, it does warn of governanceproblems in some schools.Mr Kershaw also criticises the council's role in supporting the schools involved.[…]22 July 2014Peter Clarke's report for the DfE is officially released.Mr Clarke says his inquiry found no evidence of extremism but "there are a number of people in a position of influence who either espouse, or sympathise with or fail to challenge extremist views".24 September 2014Sir Mike Tomlinson is appointed Education Commissioner for Birmingham by the government.[…]17 March 2015The Education Select Committee [Parliament] criticises a lack of coordination between the various Trojan Horse inquiries and suggests there was no evidence of a plot. […]27 June 2015The DfEcriticises the Education Select Committee for "downplaying" the seriousness of events in Birmingham and "undermining" efforts to tackle extremism.Financial health and stabilityThe Council had made financial savings and had reduced its workforce. This was caused by austerity policies of the national UK government. It appears that these savings had been made without the benefit of a long-term strategic plan to indicate where savings might be best made.At the time of Bob Kerslake’s revie w of Birmingham City Council the national policy climate of austerity was assumed to be in place for a number of more years and in the case of the Council further budget difficulties were being anticipated.Structure and rolesIt appeared to Bob Kerslake, at the end of his independent review of Birmingham City Council, that there was a problem in relation to the roles of the elected members (councillors) and the appointed managers (officials) of the Council. The report said managers needed more space to manage. It was claimed that the roles of elected members and officers had become blurred.Management coordinating and steering capacityWith reference to the senior level of management (i.e. appointed officials), the Kerslake review diagnosed a problem of capacity (Kerslake 2014 p.7): “the Chief Executive and corporate leadership team lack the corporate support and capacity that is needed to undertake their role effectively…”.Performance management was assessed as ineffective.CultureThe Kerslake report had some harsh things to say about the culture of the Council, which is appeared to see as caused by the size of the workforce (Kerslake 2014 p.7): “Birmingham City Council’s size acts as both a badge and a barrier: it has led to a not invented here, silo based and council knows best culture.”The council’s culture was perceived by external stakeholders as follows (Kerslake 2014 p.8): “…the culture is dominant and over-controlling and … the council is complex, impenetrable and too narrowly focused on its own agenda..”.Vision for the future of the city and prioritiesYet another criticism made by the Kerslake report was that Birmingham City Council needed a more positive vision (Kerslake 2014 p.7):“Birmingham City Council too often sees itself as a victim. Whilst the financial and other challenges are considerable and must be tackled, the public and businesses are calling for a more positive vision…”.Furthermore, it was judged that the existing council vision for the future of the city “is neither broadly shared nor understood” either inside the council (the council’s officers) or outside it (the city’s residents or partner organi zations).Startegicdecision making and current strategiesThe Council ‘s current strategies were summed up as follows (Kerslake 2014 p.7): “there is a multiplicity of strategies, plans and performance management processes which lead to unnecessary complexity and confusion and are not followed through to delivery…”.Both the elected members of the council and the managers (i.e. officers) were criticized for failing to tackle difficult issues. Bob Kerslake recommended that the Council should focus on solving the important issues.Over a number of years there had, it was claimed, been a failure in strategic decision making (Kerslake 2014 p.9):“We have found that for successive administrations Birmingham City Council’s member and senior officers have failed to take collectively the big strategic decisions needed to tackle the problems the city faces and to be sufficiently clear with residen ts about the choices that need to be made.”Final WordsAs we have seen, looking at things as they appeared in 2015, the new political leader John Clancy wanted the council to have a strategic vision and strategies for the whole of the city and not just the city centre.It appears that,looking to the future, Birmingham City Council had big issues or challenges to address. There were, or included, expectations of continued fast growth of population, issues of poverty and poor qualifications in some parts of Birmingham, possible issues of social cohesion and tensions in relationships with one or more ethnic communities. There was also the view of Sir Bob Kerslake that the economic performance of the city should be better than it wasReference ListBBC News (2015) Trojan Horse ‘plot’ schoolstimeline./news/uk-england-birmingham-28370552 accessed 4 November 2015Department for Communities and Local Government (2014) The way forward: an independent review of the governance and organizational capabilities of Birmingham City Council: Supporting Analysis. Available from:https:///government/publications/birmingham-city-councils-governance-and-organisational-capabilities-an-independent-review (accessed 29 June 2016).Kerslake, R. (2014) The way forward: an independent review of the governance and organizational capabilities of Birmingham City Council. ISBN: 978-1-4098-4419-8. Available from:https:///government/publications/birmingham-city-councils-governance-and-organisational-capabilities-an-independent-review (accessed 29 June 2016).Morris (2015) West Midl ands can rival ‘northern powerhouse’ says Birmingham leader/uk-news/2015/dec/01/john-clancy-leader-birmingham-city-council?CMP=share_btn_linkaccessed 4 December 2015OFSTED (2014) The report of Her Majesty’s Chief Inspector ofEducation, Children’s Services and Skills 2013/14West Midlands regional reportThis publication is available at /resources/140189.ONS (2016) [Accessed 29 June 2016] London leads UK cities in economc recovery. [online]. [29 June 2016]. From:https:///economy/grossvalueaddedgva/articles/londonleadsuk citiesineconomicrecovery/2015-12-09.。