Decision details

Achieving financial stability for the Council was one of the key objectives within the draft Corporate Plan which was currently out for consultation.  To support the objective of financial stability and ensure organisational focus was maintained, it was proposed that a Financial Stability Programme (FSP) be established to manage the programme of work, in turn this would be overseen by a Board of key Members and officers.

The report provided an overview of the key areas required to deliver savings and income over the next five years and how progress would be managed.  In preparation for the creation of the FSP, Heads of Service met with relevant Cabinet Members to review budgets and discuss services.  Four themes had been identified to achieve reduced revenue spend and increased income:

·         Devolvement: To devolve discretionary services to the Parish and Town Councils.  It would be essential to create a dedicated team to undertake this work which was anticipated could take a minimum of two years to complete.

·         Invest to Save: To invest in digitalisation (including artificial intelligence technology) and business processes of which some key projects were underway or ongoing.

·         Service Prioritisation: It was proposed that a combined target for Invest to Save and Service Prioritisation be set for each service area.  This was allocated on an arbitrary 10% discretionary spend.  Set targets would drive the Council to identify projects and income generating ideas in order to minimise the amount of service reductions required.

·         Income Generation: A number of income streams had been identified and required investigation.  It was proposed that a small team be established to support service areas with this work.

The Assistant Director Resources advised that it would be sensible to establish an Invest to Save fund to meet any one-off costs required to secure an ongoing revenue saving/income.  It was proposed that delegated authority for spend approval of up to £750,000 be granted to the Chief Executive in consultation with the Cabinet Portfolio Holder for Finance and Performance Management.  Members would be kept abreast of approved expenditure.

Appendix A to the report identified the proposed timetable for the first year of the FSP and key activities.  It was proposed that between April 2021 and August 2021, each service area supported by the finance team conducted its own initial review based on work streams identified in Appendix B to the report and produced a proposal report for the Financial Stability Board (FSB) to consider.  Quarterly progress reports would be reported to the FSB and Cabinet.  As a result of income generation opportunities and the redirection of staff into priority areas, Cabinet was reassured that compulsory redundancies were not envisaged.

RECOMMENDED: That up to £750,000 be earmarked from releasing existing reserves for Invest to Save projects and that the Chief Executive be given delegated authority to authorise expenditure against this reserve in consultation with the Cabinet Portfolio Holder for Finance and Performance Management.

AND

*RESOLVED: That:

1)    a Financial Stability Programme be established, supported by a Financial Stability Board of key Members and officers;

2)    the approach and process to achieving financial stability as set out in this report be approved; and

3)    two dedicated officer teams to deliver the work themes for devolvement and income generation be established.

*The RESOLVED parts of this minute are subject to the call-in procedure under Rule 16 of the Overview and Scrutiny Procedure Rules.