Finance Panel noted in January 2018 that the Legal Services income target for 2018/19 was being reduced from £110k to £40k.  The Panel agreed to commission a report from the Head of Law and Governance on Legal Services income generation activities and performance.

The Panel is asked to note and discuss the report.

Anita Bradley, Head of Law and Governance, and Lindsay Cane, Legal Services Manager, have been invited to present the report and answer questions.

The Head of Law and Governance, Anita Bradley, explained that the Panel previously considered an update on Legal Services income generation in January 2018. Previously, the Service had an income target of £110,000 per annum which had not been achieved.  The current target was £40,000 and the Service was likely to receive in the region of £20,000 for the 2018/19 financial year.

The Oxfordshire Legal Hub had not provided the level of work that was expected, and Oxford City Council had picked up the majority of ad-hoc work coming from the Hub. The Council previously had a good stream of income from Milton Keynes Borough Council, but following a restructure, they had insourced much of their work leading to a reduction in income for Oxford City Council. There were also statutory marketing limitations regarding legal services which constrained the Council’s ability to promote its services.

The Legal Services Manager, Lindsay Cane, and the Head of Law and Governance were of the view that the Legal Services market was saturated locally, and that there was not a strong business case to expand its services. It was explained that some councils had moved to an alternative business structure, whereby they sold their services to the public. However, as evidenced by the failings of some local authorities, this has significant financial risks. Given the Council’s proximity to the County Courts in Oxford, there were however opportunities to secure additional work through providing services to them and neighbouring local authorities.

In response to questions, it was explained that negotiations to secure work with Reading Borough Council were ongoing, and that no extra staff were employed to support income generation. The Head of Law and Governance explained that clients did not want to provide written feedback.

The Panel discussed the merits of establishing an alternative business model, and heard that establishing such a model would have ongoing revenue costs, in addition to start-up costs.

The Chair, Councillor Fry, summarised that the market for income generation was limited, and that the Alternative Business Model was not a favoured option. He also noted the constraints in relation to marketing and the difficulties in securing work through the Legal Hub as factors that limited income generation.