Agenda item

This report covers sets out the Council’s financial position for the next three years and potential options for bridging the gap between the expected budgetary position and the funding available and seeks endorsement of a number of longer term improvements to the financial planning and budget process to help to secure the Council’s financial position in the future.

RESOLVED:(i) That the fundamental principles of the future approach to the financial strategy and financial planning, as highlighted in paragraph 5 of the report, be endorsed;

                        (ii) That the approach to addressing the efficiency agenda, and specifically the procurement of a performance partner to develop the process, supported by an officer board who will manage the £1m invest to save efficiency fund and manage the process, as set out in paragraph 18 of the report, be endorsed;

                        (iii) That the proposed approach to balancing the budget be formally adopted and the relevant savings targets be noted.

REASON:                  To help to secure the Council’s financial position in the future.

Members received a report which set out the Council’s financial position for the next three years and potential options for bridging the gap between the expected budgetary position and the funding available, and sought endorsement of a number of longer term improvements to the financial planning and budget process to help to secure the Council’s financial position in the future.

Paragraph 5 of the report set out the following fundamental principles of the future approach to the financial strategy and financial planning:

·        It must be long term (a five year period for example), with a focus upon the strategic business objectives of the Council;

·        It must be ongoing, the process of setting one years budget should begin almost immediately after the previous one has been set;

·        There needs to be clear Member involvement;

·        It must seek to redistribute resources to ensure alignment of priorities;

·        It needs to be prudent and flexible to changes in circumstances;

·        Clear targets need to be established over a number of years, with these subject to review;

·        The strategy needs to be understood within the organisation and owned by senior managers;

·        It needs to be informed by good information and understanding of the issues facing the Council;

·        The strategy should incorporate an ongoing Corporate Efficiency Programme;

Paragraph 18 of the report discussed the need to kick start the efficiency programme and ensure it received the attention and focus required to deliver the savings. The Corporate Efficiency Programme would be led by the Director of Resources, but would require Corporate ownership throughout the organisation. Specifically it was proposed to:

·        Create an officer Corporate Efficiency Board (CEB) who would oversee the delivery of the various projects supported by a dedicated team of officers;

·        Procure an external performance partner to conduct a scoping exercise to identify areas where large efficiencies could be made, then look to implement a series of efficiency reviews. The procurement process would focus on the prospective partners’ risk and reward model with the objective of having no risk to the Council and agreeing a rebate of fees if the efficiencies were not delivered. This approach had been used with the performance partners who were undertaking the review of client transport;

·        Authorise the CEB to be responsible for the allocation of the £1m efficiency fund (subject to Council approval of the £1m being transferred from reserves).

Paragraph 23 set out the proposed approach to balancing the budget, which included:

·        Controlling growth so that only the truly unavoidable was funded;

·        Critically evaluating directorate requests for the reprioritisation of resources so that the Council’s scarce resources were focussed in those areas that had the highest impact on its priorities;

·        Requiring all Assistant Directors to identify potential efficiency savings within their areas;

·        Requiring all Directors to identify potential efficiency savings or service reductions across their areas of responsibility;

·        Bringing the achievement of additional income more clearly into the budget process;

·        Identifying invest to save opportunities;

·        Delivering on a programme of strategic efficiency reviews and strategic procurements based on that agreed by the Executive in September 2007;

·        Utilising reserves and time limited funding to support one off initiatives.

RESOLVED:(i) That the fundamental principles of the future approach to the financial strategy and financial planning, as highlighted in paragraph 5 of the report, be endorsed;¹

                        (ii) That the approach to addressing the efficiency agenda, and specifically the procurement of a performance partner to develop the process, supported by an officer board who will manage the £1m invest to save efficiency fund and manage the process, as set out in paragraph 18 of the report, be endorsed;²

                        (iii) That the proposed approach to balancing the budget be formally adopted and the relevant savings targets be noted.³

REASON:                  To help to secure the Council’s financial position in the future.