Minutes - 86th GLAA Board meeting

1

Introductions

All attendees welcomed. The Chair introduced EA, Governance, Planning and Impact Manager for the GLAA and PO, Board Apprentice for the GLAA, he is being mentored by SM.

PG was nominated Board Conscience.

2

Apologies

Noted as above.

3

Declarations of interest

Julia Mulligan – Non-executive Director of the Independent Office for Police Conduct

Suzanne McCarthy - Member of the Royal Institute of Chartered Surveyors' Professional Standards Steering Group.

Keith Rosser – Non-executive Director of the Board of the Scottish Environment Protection Agency

4

Minutes of the previous meeting held on 15 November 2023

A Board member asked for the wording of the discussion around the People Strategy, to highlight the need for the People Strategy to contain more accessible language and become more aligned with Business Plan.

Decision

Approval of the minutes, following the addition of the above comments.

5

Outstanding actions

Outstanding:

BM83(8) and BM85(9) - To be picked up with KO.

BM85(10) – This will now be brought to the exceptional Board.

BM85(2) – This is a substantial item at the exceptional Board in March.

BM85(7)

BM83(4) – Paper has been circulated out of committee, Board Members to email feedback to EM.

BM83(6)

To be Closed:

BM81(3) - Under Item 10.

BM84(3) – Under Item 8b.

BM85(1) – This is BAU.

BM85(3)

BM85(4) – Under Item 10.

BM85(5)

BM85(6)

BM85(8)

Action

BM86(1)

JM, PG, DS to meet with KO to discuss the IT Risk Register, and the recent ARAC paper on IT risk registers to be circulated.

6

CEO report Elysia McCaffrey

20 years since Morecambe Bay Tragedy:

The Executive highlighted Monday marked 20 years since the Morecambe Bay tragedy, where twenty-three cockle pickers tragically drowned. To commemorate this, members of the Operations team attended a Vigil at Morecambe Bay.

Indicative Budget:

The Executive have received the indicative budget for 2024/25, which outlines a 5% cut, which the CEO noted will be significant once inflation is factored in. She went on to note that there have been two recent parliamentary reports calling for GLAA to be better funded. A budget paper.

is due to be brought to the exceptional meeting of the Board in March.

Joint Committee for Human Trafficking:

The GLAA gave evidence at the joint committee on Human Trafficking last week, which was well-received. The organisation have agreed follow up in writing about prioritisation of Modern Slavery Act’s recommendations and some detail on how the GLAA inspects and operates under it’s budget.

TOM2 Delivery:

TOM2 delivery is currently being built into the business plan which the Board will see through future performance updates.

Performance:

Performance across the organisation continues to improve which should be recognised.

Public Bodies Review:

The Executive explained that the Public Bodies Review is scheduled for October 2024, and pre-work will commence in the next couple of months.

In the event of a General Election the HO assured the Board that the work can continue.

Planning for the review will be tabled at the exceptional March meeting.

7

Home Office update

Business Planning for 2024/25:

HO thanked colleagues for early engagement on this and are looking forward to hearing more.

Finance budget for 2024/25:

HO explained that it is very unlikely there will be any change and no additional funding will be available. However, they encouraged dialog throughout the year. The HO recognised the fiscal challenges and where there are funding shortfalls, saying they would work with ALBs to ensure work delivered is aligned to each ALB’s purpose. They will test the trade-offs with Boards and Ministers.

HO explained that the Cabinet Office are undertaking a benchmarking review on corporate services. The Board questioned how beneficial this would be for small organisations like the GLAA, and stated they will push back hard on poor value for money. HO explained this is only in its preliminary stages and won’t affect the 2024/25 financial year.

HO said to expect a spending review in the 2024/25 financial year.

NED Recruitment:

HO explained that the Minister has been busy with the criminal justice bill so has not yet considered the GLAA NED recruitment. They reiterated that they would continue to work with Private Office to progress decisions. The Board highlighted the time elapsed since the interviews were concluded and stressed the financial implications of the delay and associated risks in the GLAA’s case.

Public Body Review:

HO confirmed the review has been pushed back to October but supports the proposed pre-work.

ARA:

HO thanked the organisation for all the effort in getting this completed and noted that there is ongoing broader discussion around sub-contracting with NAO.

Lack of testing of iBase and Crimson:

HO noted risks arising from the lack of testing of IT systems. The Executive confirmed that they are fully aware and said there is ongoing work to mitigate any risks identified.

Illegal Migration Act:

HO thanked the Executive for their ongoing support. They explained that there is still uncertainty on the start date. In addition, the Rwanda Bill is going through Lords currently; however, the Lords do have the mechanism to delay this. The passage of the bill is also dependent on the date of the General Election and there is lack of clarity if the bill will apply retrospectively to all illegal migrants or just to those arriving on small boats.

Home Affairs Select Committee – Human Trafficking enquiry:

The government response is imminent. It is likely to contain a mixed response but may include a commitment to a new strategy.

The new Anti-Slavery Commissioner had robust conversations during HASC. It is expected her strategy will be with HO by Easter.

The Board asked if the new Anti-Slavery Commissioner had any particular areas of interest. HO explained she is interested on exploitation of women and girls as well as British nationals and survivors. She is also keen for the Modern Slavery strategy to be rolled out across government, as well as Law enforcement holding business to account of labour exploitation.

Current Ministerial focus:

The Board asked for guidance on the new minister’s priorities ahead of the Chair and CEO’s meeting with her. HO explained that she has a strong focus on women and girls sexual exploitation. HP said she would give a further written update before the meeting.

Trafficking In-Person (TIP) report (trafficking in person report)

This is an American report, due to be published around June/July. Currently the UK is rated in the top tier but there is a high possibility of a downgrade, which could lead to a lack of credibility. HO thanked the GLAA for their contributions to this work.

8

Strategic Performance

    a) Strategic Performance, Sam Ireland

The Executive stated that regulation performance has significantly improved and is now the best it has been for six years. It is now taking a median time of 148 days to make a licencing decision. Without the backlog, the time is 123 days. 

All licence holders have now been risk assessed, with 54% of high-risk businesses having been inspected within the financial year. The Board questioned if the proposed work is sufficient. The Executive explained:

•      There are 12 full time compliance inspectors, and each inspection takes an average of 10 working days.
•      We are now taking a risk-based approach and therefore all high-risk licence holders will be inspected every 12 months, medium risk licence holders will be inspected every 18 months and 10% of all low-risk licence holders will be inspected, this would total to 25% of all licence holders having an inspection every year.
•      This approach allows resources to be prioritised on the areas with the most risk, supported by intelligence.
•      There has been a high rate of turnover due mainly to retirements in the licencing team, which the data reflects.

The Board thanked the executive team and noted that this narrative should be clear in the business plan and ARA, as it shows the effective use of resources and regulation work. The Board noted that the absolute numbers can be misinterpreted as they fail to reflect the outcomes. 

The Board asked the question of how we know licencing works. The Executive drew the comparison with the care sector which is not regulated. They highlighted the high number of prosecutions which may have been prevented if the sector were licenced. This contrasts with those sectors that are regulated where there are far fewer prosecutions. 

A Board member noted inconsistencies with data on the website.  It was clarified that this is due to waiting for the appeal period before publishing. It was acknowledged that this requires an explanation, especially with key stakeholders. 

The drop in NRM referrals has been caused by a change to the threshold. The April board meeting will include an evaluation of the victim navigator role introduced in April 2023. 

The Executive noted peaks and troughs in investigations relating to Control Strategy Priorities (CSP), which is due to recent changes. 

The Executive highlighted recent work with Regional Organised Crime Units (ROCUs), which is beneficial due to being able to access their resources. In addition, there may be an opportunity to claim funds through the Proceeds of Crime Act (POCA). The Board commended this work and suggested that the outcomes of joint working could be better recorded and reported.

A Board member asked if the KPI on operational lessons learnt is on track. It was explained that two have been completed, one is in progress and there is a potential for another on POCA money. 

The Executive highlighted a reduction in both long-and short-term sickness, which is continuing to decline. More use is also being made of occupational health referrals to support people back into work. 

A Board member raised concerns around the wellbeing of colleagues due to the increased pressure. It was explained that managers are reviewing relevant cases every three weeks, as well as workloads and ensuring plans are in place when appropriate. Flexi accrual is being reviewed every month, and when it reaches the maximum, a welfare check will be mandatory. 

A Board member asked to see data on culture. It was confirmed that this will be included in the People Strategy at the exceptional March meeting.

           b) Model Office Performance, Phil Cain

The Board welcomed Nicola Ray and Dave Stockdale and congratulated Dave on his recent promotion.

The Executive explained that the backlog is now down to nine.

A risk-based approach has been implemented and licences are granted based on documents, unless any intelligence has been gathered during pre-tasking. There has also been a focus on ensuring documents are ready prior to submission of an application. Virtual inspections have also been undertaken in instances where there is adverse intelligence.

The Model Office ways of working are now business as usual. Training is ongoing, due to the high staff turnover to build competence around inspections. The high turnover is due to internal staff moves or people leaving to pursue other opportunities.

The Executive highlighted the potential to embed the improved culture, especially around empowering colleagues to challenge long processes, across the organisation as a whole.

. The move to business as usual involved significant work, in particular, around reducing the backlog in order to allow the team to focus on adapting and embedding the new processes. 

The Executive proposed a new interim target of 60 days for the next financial year, with reviews at six and twelve months. The Board agreed, and welcomed the more stretching target, which is for internal purposes at present as it is based on a small data set at present.

Decision

The Board agreed an interim target of 60 working days for the time taken to make a licencing decision, and for this to be reviewed after six and twelve months.

The Board noted that terminology concerning the different types of inspections is confusing and asked for this to be reviewed and simplified.

Action BM86(2)

PC to review the terminology and language used to differentiate types of inspections.

9

Business Plan 2023/24 Review, Sam Ireland

It was explained the starting point is to review the current plan against progress made, to identify priority areas for the next financial year. A two-year business plan was proposed.

Of the current the ten deliverables:

·       Two are completed.

·       Six are on track to be completed.

·       Two at risk of not being fully delivered.

o   Deliver IT improvements to improve efficiency, effectiveness, and productivity.

o   Develop a structured programme of professional development opportunities.

The HO questioned the proposal for a two-year business plan, in light of ministerial expectations. The Board were supportive of longer-term thinking but agreed that the business plan submitted to the HO should focus on the coming year.

Clarification was sought on terminology; ‘moderating disruption activity’. It was explained that an internal panel is being set up to assess disruption tactics and to help provide more robust data to the NCA.

It was noted that outcomes against Strategic Goal 2 ‘Be known as experts in addressing worker exploitation’ are the weakest. This was acknowledged, as during year one, the focus had been on improving data quality and confidence internally. In addition, work has been undertaken to build networks with external organisations to improve understanding of trends and test where there are gaps. Examples include having appointed leads for the NCA on exploitation in the care sector which is helping to build capability and partnership working with police forces. The next two years will see a greater focus on externally focused activity. 

The Board noted that paragraph 5.1 underestimated the scale and impact of the organisation’s transformation and encouraged a more confident, bolder approach in future communications. The Board questioned the relevance of the KPI ‘Information recorded which results in further investigation’, due to it being heavily influenced by factors outside the GLAA’s control. It was explained that it is a measure for the quality of intelligence. Intelligence collection plans for each investigation have been introduced to ensure all sources of intelligence are maximised.

The Board noted that the current victim profile is majority male, which raises questions as to gaps in knowledge about female victims. It was noted that the care sector victim profile has a higher proportion of females. However, there are real concerns about females coming forward, as well as challenges with communicating with hard-to-reach groups which requires further work. The Board noted that having a more diverse workforce is important in this respect.

The Board formally thanked colleagues for all their work and effort this last year to continually improve the organisation.

It was noted that a clearer narrative is needed, including the impact of outcomes such as helping to ensure workers have the correct PPE or workwear. HO added that case studies have been very effective in communicating with ministers and developing policy.

10

External Stakeholder Plan, Sam Ireland

The Board noted the plan, that it was early in development and would be progressed. Concerns were raised about the proposal for multiple social media accounts which may not be an efficient use of resources and had the potential to cause confusion.

It was proposed that two of the four LU/LP webinar meetings are held face-to-face, in different parts of the country. The chair of the LU/LP explained the webinar gains over 100 attendees every meeting currently, with high levels of engagement, but that she was open to change and content for a complementary roadshow.

The Board asked HO about the possibility of changing the organisation’s name as ‘Gangmaster and Labour Abuse Authority’ is lengthy and complex. The HO explained that the Office of the Immigration Services Commissioner (OISC) is currently going through this process, so there is no barrier to the GLAA exploring options.

Action BM86(3)

For another communications plan to be brought to the April Board, and to include content, core narrative, and measurable objectives.

11

Finance, Justin Rumball

        a) Financial Position and Outturn

The outturn position is positive, and the HO was thanked for their ongoing support, in particular the ability to use capital to assist with budgeting. The positive work in licencing has also resulted in an increase in income. 

The main financial pressures have been the pay award and the cost-of-living payment. However, there have been favourable variances for IT and legal costs. It was noted that there may be a future pressure on legal costs. 

There is ongoing work in ensuring capital is being spent and assurance was sought on the confidence of this being achieved. It was explained that suppliers are being held to account for delivery and alternative suppliers are being sought in case they may be needed. 

HO explained the GLAA should be working to a 3% pay award, which is in line with the HO. The Board were concerned about the potential of under budgeting for the pay award, as every 1% increase is very significant in a small organisation and doesn’t allow for any manoeuvrability. The ability of government to be realistic about pay awards was questioned, especially in light of the current position of PCS. The HO said that if the GLAA were to make assumptions on more than 3%, this may negatively impact them as it would be viewed as the GLAA holding money unnecessarily. 

Having noted the financial impact of improved licencing performance, the Board were moving towards a more commercial way of thinking. This would encompass setting financial expectations around fee income based on licencing performance. The Board were mindful of ensuring the organisation keep the principles of ‘managing public money’ at the core of thinking.

     b)    Budget 2024/25:

There was a discussion on the approvals process for the 2024/25 budget which was imminently due to be finalised with the HO. The Board was concerned about the timescales and their ability to scrutinise proposals. The HO said there may be some flexibility in the deadline given to the GLAA.

 Action BM86(4)

For the draft budget for 2024/25 is to be circulated out of committee to all Board members prior to submission.

     c)    Finance Manual

The proposed minor amendments were noted, and the Board had no comments.

Decision

The Board approved the Finance Manual.

12

Fee Review, Phil Cain

The Board are being asked to agree the recommendations in order to agree the approach to fee changes, with the view to implement this in October 2024.

The executive team explained the Addendum notes the results of an inflationary rise and keeping the current A-D bands, which could be an interim.

The Board shared their concerns around the potential of raising this twice due to requirement to consult labour providers twice. The executive team explained no labour provider will want their fees to raise, however we are currently not meeting ‘managing public money’ principles.

The Board asked which minister would have final approval. HO explained Minister Philp will have final approval and will want to scrutinise all areas of the organisation. The executive team noted that there has been, through the TOM project, a large amount of work done around efficiencies and improving processes, such as Model Office work. However, this will need to be clearly narrated.

A Board member queried how we will know that businesses are being truthful with the amount they are turning over due to the potential increased difference in fees. The executive team explained that we currently don’t experience many problems of this kind, however we recognise the issue raised and will cross-reference data with HMRC to ensure that businesses are paying the correct fees.

The Board agreed a three-year phased implementation, as most Board members shared their experiences within other organisation of similar activity and noted a quicker change was more effective and less disruptive as it didn’t draw out the process.

The Board noted the communication of this change to licence holders is crucial to the success of this fee review, especially if we are required to hold two consultations.

Decisions   

The Board agreed the following:

    ·      the principles which determine the scope of the fee review.

    ·      the preferred option for fee recovery for regulatory services.

o   A 60/40 split of costs between the Regulated Sector and Non-Regulated Sector duties.

    ·      conducting a Compliance New Business Inspection (CNB) should be factored into the application price.

    ·      A preference to introduce new bands (A+ and E).

    ·      A preference for a 3-year phased implementation of the fee increase.

    ·      the approach to legislative change for recovering the appeal cost.

    ·      to proceed with the Board’s preferred position to the Home Office.

    ·      Following Home Office approval, agree to any required consultation.

The Board asked HO would capital still be available if we were to move to becoming more self-funding. HO explained that Capital would still be available, and the cash reserves would be to pay wages. HO assured the Board and the executive team that there would be ongoing conversations throughout the implementation.

The next steps for the fee review, is for the paper presented to the Board to be tweaked to reflect the Board’s decisions, and an accompanying short paper reflecting the work done around value for money and efficiencies, to be sent to HO. HO explained time scales are ambitious but still possible, however the sooner this can be handed on to HO the better. The executive agreed to send this to HO immediately after the recess period that starts tomorrow and lasts a week.

HO thanked the executive team and Board for their ongoing support on this project.

Action BM86(5)

The paper presented to the Board to tweaked to reflect the Board’s decisions, and an accompanying short paper reflecting the work done around value for money and efficiencies, to be sent to HO for the 16th of February.

13

Business Continuity Policy, Sam Ireland

The executive noted there was only minor changes relating to job roles following the restructure.

The Board had no comments and are content to approve the Business Continuity Policy.

Decision

The Board are content to approve the Business Continuity Policy.

14

Anti-Fraud and Corruption Policy, Sam Ireland

The executive noted there was only minor changes relating to job roles following the restructure.

The Board had no comments and are content to approve the Anti-Fraud and Corruption Policy.

Update the first sheet with data of approval and circulation.

Decision

The Board are content to approve the Anti-Fraud and Corruption Policy.

Action BM86(6)

For the policy, to be updated with approval date, and circulated to Board Members.

15

Board Conscience Feedback

PG as Board conscience noted the following:

     ·       Chair kept discussions on topic, intervening and focusing the conversation where needed.

     ·       It was nice to meet and hear from the model office team during lunch and celebrate their successes.

     ·       The tone throughout was respectful.

     ·       There was constructive challenge within the room, with good, factual explanations.

     ·       Everyone felt involved.

16

AOB

None.

Date of next meeting: 25/03/2024