8. The impact of delegation on central services
8. The impact of delegation on central services
8.1 Six of the 12 LEAs which contributed to Strand 2 of the study used LA in-house
provision, and one had disbanded its schools catering service in 2000. The picture
painted by most catering services, whether with a DSO or contracting to a private
company, was that central contracts had reduced with the introduction of delegated
budgets. This section looks at the changes to central services brought about by
delegation, as described by LEA officers and catering managers.
8.2 Several DSO officers reported losing schools from the contract because they had
decided to move to private contractors or to offer in-house provision. One had lost
almost half its hundred primary schools and all secondary schools. At the other end of
the scale, one central service had lost the contract for only one secondary school and no
primary schools. Another, whilst losing a small number of schools from its own
authority was now supplying two schools in a neighbouring LEA, having been
approached for the contracts.
8.3 However, maintaining provision in some schools had been at a cost to the DSOs.
Several reported re-negotiating contracts with schools, offering up-front capital
investments and a cash percentage of the turnover. One catering officer described this
trend as one towards the establishment of partnerships with schools, with each setting
its own contractual agreement. In that LEA, several schools had formed small
consortiums to negotiate more favourable contracts with the DSO.
8.4 Most DSO officers felt that some positive developments had come directly from the
delegation of budgets. Most observed that they had had to work much harder to satisfy
their customers, which meant considering customer care and taking a wider view of the
service they offered. Under threat of more losses, providers had identified where the
service needed revision and updating to make it more competitive.
It’s obviously, we’ve got to give the schools the service they want or they may choose not to
remain with the next contract. It makes us more aware and it makes us more of a business, it
is making sure that they are aware of all the choices they can make.......If we hadn ,t had
schools go out, we would be going on unaware with the main contract. It’s given us a different
perspective when looking at it. .
8.5 One general catering manager believed that despite all the additional work that the
individual contracts made for the service, the overall benefits made the extra effort
worthwhile.
Also not tied into a long contract makes more work for us, but we have built in theflexibility
that is needed.
8.6 A Central Catering Services Manager managing individual contracts with a large number
of primary and secondary schools since delegation, described the successes and
difficulties that delegation had brought her service. Her main successes, she felt, had
been,
to actually be able to manage each school individually, and in addition, under extremely
difficult circumstances, to introduce new schemes in schools, such as 'Cool Cafe' and 'The
Diner', without any budget to do so.
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