Kent County Council is spinning off its legal services team into a separate company in a bid to increase its income stream.
The majority of Kent Legal Services’ (KLS) 125 lawyers will join the new venture. KCC will set up a new corporate law and assurance team, led by a general counsel in a newly-created role, which will be responsible for delivering services to the council.
The decision to spin out KLS was made today (21 March) by Kent’s cabinet.
A report produced by the council said that the new company will apply for an alternative business structure (ABS) licence. In 2014 KLS tendered for a commercial joint venture partner to establish an ABS, although the project was later put on hold.
The latest report said that the standalone business was a “viable and realistic” alternative to the original joint venture proposal. KCC will own all the company’s shares at the outset and investment is planned into technology and driving efficiency.
Target clients include other public sector joint venture partnerships, academies outside Kent, housing associations, educational institutions, the health sector and voluntary sector organisations.
Kent council director of governance and law Geoff Wild said the company would fill gaps in service provision in the county and further afield.
“The company will be able to operate in the wider market without the regulatory restrictions imposed on in-house lawyers and an increase in use of technology and new business systems will lead to more efficient and better working,” added Wild.
Kent has been a leader in innovating in the provision of legal services for some time. In 2012/13 the legal team contributed £3.7m to the council. The team has run on a zero-budget basis, receiving no internal subsidy and competing for work in the open market. According to the latest report, KLS has contributed over £15m to the council since it began looking for external instructions.