Agenda item

This report sets out the initial findings of the recent review of the Council undertaken by the Council’s efficiency partners, Northgate Kendric Ash, together with proposals from the Corporate Management Team for a broad-based programme of work to ensure the Council continues to provide efficient and effective services and to build upon its successful transformation programmes.

RESOLVED: (i)         That approval be given to commence the year 1 Efficiency projects set out in paragraph 25 of the report.

                        (ii)        That the proposed Programme governance arrangements set out in Annex 3 be noted.

                        (iii)       That authority be delegated to the Director of Resources to agreed financial commitments to Northgate Kendrick Ash (on the basis of the risk reward model), and agree allocations from and to the Efficiency Reserve, to enable the delivery of the Efficiency Programme.

                        (iv)       That authority be delegated to the Executive Board to manage the programme of efficiency projects and to develop further detailed proposals for years 2 and 3.

                        (v)        That progress on the Efficiency Programme be reported at least quarterly to the Executive, and to an all-party meeting of Group Leaders.

REASON:      To enable the Council to commence work on delivery of the strategic objective to be an Effective Organisation, to deliver service improvements and create efficiency savings of £15m over the next three years.

Members considered a report which set out the initial findings of the recent review undertaken by the Council’s efficiency partners, Northgate Kendric Ash (NKA).  It also presented proposals from the Corporate Management Team (CMT) for a programme of work to ensure that the Council continued to provide efficient and effective services and to build upon its successful transformation programme.

The Efficiency agenda was crucial to the objectives of the eighth theme of the Corporate Strategy – Effective Organisation.  NKA had been commissioned in December 2008 to carry out a 12 week review examining the potential to deliver £15m savings (net of fees) across the Council.  The summary of their review was attached as Annex 1 to the report.  The main finding was that NKA were confident that the £15m target could be achieved within three years.  The change programme being championed by CMT to deliver Effective Organisation included the easy@york programme, the Improvement Plan, the Workforce Development Plan, delivery of the Customer Strategy and Engagement Strategy and a series of efficiency projects, details of which were set out in paragraph 25 of the report.  It was estimated that these projects could achieve savings totalling over £17.1m by the end of the programme.

Although NKA’s fees were subject to the achievement of the identified savings, there would be a need for payments in advance of the full savings coming through.  It was recommended that approval be delegated to the Director of Resources to meet these and any other costs of the programme, from the Efficiency Reserve.  Approval was also sought for the establishment of governance arrangements for the programme, as set out in Annex 3 to the report. 

In response to the comments made under Public Participation / Other Speakers, Officers confirmed that the intention was to achieve efficiencies through a variety of means, not just ‘privatisation’.  There was a commitment to engaging with all affected parties during the process and all decisions taken must comply with the Council’s Constitution.  Members supported these observations and added that, whilst the efficiencies must be achieved, the involvement of staff was crucial to the success of the process.  Regular all-party briefings would also be needed, to ensure democratic accountability.

Having noted the comments of the Shadow Executive on this item, it was

RESOLVED: (i)         That approval be given to commence the year 1 Efficiency projects set out in paragraph 25 of the report.¹

                        (ii)        That the proposed Programme governance arrangements set out in Annex 3 be noted.

                        (iii)       That authority be delegated to the Director of Resources to agreed financial commitments to Northgate Kendrick Ash (on the basis of the risk reward model), and agree allocations from and to the Efficiency Reserve, to enable the delivery of the Efficiency Programme. ²

                        (iv)       That authority be delegated to the Executive Board to manage the programme of efficiency projects and to develop further detailed proposals for years 2 and 3. ³

                        (v)        That progress on the Efficiency Programme be reported at least quarterly to the Executive, and to an all-party meeting of Group Leaders. ⁴

REASON:      To enable the Council to commence work on delivery of the strategic objective to be an Effective Organisation, to deliver service improvements and create efficiency savings of £15m over the next three years.

Note:  The above decisions have now been revised, following re-consideration of this item at a meeting of the Executive (Calling In) on 14 July 2009.  The minutes of that meeting, incorporating the revised decisions, can be viewed by clicking on the link below.

http://democracy.york.gov.uk/ieListDocuments.asp?CId=601&MId=4341&Ver=4