Agenda item

To pre-scrutinise the content of the Efficiency Statement and to determine whether to make any recommendations on this subject for the consideration of the Executive Committee.

(Report to follow)

Officers presented the Efficiency Plan for 2016/17 – 2019/20 and provided Members with background information in respect of this.  During the presentation of this report the following areas were highlighted:

·                The opportunity to secure a minimum level of funding for the four years commencing April 2016.

·                There had been no legislation or guidance provided by Central Government in respect of the format of an Efficiency Plan.

·                A four year settlement would provide an element of certainty in relation to the Revenue Support Grant.

·                The response from Government in respect of the New Homes Bonus consultation had not yet been received.

·                There was no guarantee that the settlement offered would not change over the next four years.

·                The inclusion of a “negative grant” system to repay Government was not anticipated and had resulted in additional financial pressures for the Council.

·                The Efficiency Plan was not purely about the funding, but should include key actions within it and reference to the Council’s Plan.

·                The narrative of the plan clearly stated that the Council did not accept the methodology used for repayment to Government, which would offset any financial benefits associated with the localisation of Business Rates.

·                Key themes had been identified to enable officers to manage the shortfalls in funding, including increasing income and growth, identifying further efficiencies and assessing the value for money of the services provided.

·                Officers informed Members that other authorities had been approached to get their views on what was being included in their efficiency plans and what format was being used.  The format presented to Members was similar to those used by other Councils.

Further detail was provided in respect of the actual figures within the report, including the efficiencies which had already been approved for 2016/17.  Officers then gave a detailed explanation of each item relating to the proposed efficiencies for 2017/18 – 2019/20.  Each Head of Service had been asked to provide information in respect of efficiencies, but were also being asked to prepare a more detailed template of how those efficiencies would be met.  These would then be presented to and scrutinised by the Council’s Executive Directors to ensure that the options put forward could be carried through.   

Officers explained to Members that there was a significant shortfall in funding particularly in 2019/20 when the negative grant was activated and it was appreciated that there were some difficult decisions which would have to be made by Members.  There would be a variety of options put forward for the Executive Committee’s consideration in respect of efficiencies, including the potential to outsource some services.  The Council needed to look at new and innovative ways of continuing to both maintain the services it provided and, where possible, raise additional income.  Examples of how alternative models of service delivery could be beneficial were given together with examples of how additional income could be raised.  The use of balances was also highlighted and the lower limit for this was confirmed at £750k.

Following the detailed presentation of the report, Members discussed a number of areas, which included:

·                Whether Heads of Service had been asked to look at every option available in order to make savings.

·                Concerns around the option of outsourcing services. Officers assured Members that this would simply be an option and that the decision would remain with Members themselves.

·                Whether there was further scope for further shared services.  Officers informed Members that the only area which was not currently shared with Bromsgrove District Council was the Planning Department and it was anticipated that a business case for this would be brought before the Shared Services Board in the near future.

·                The impact on the Voluntary Sector and whether the grant funding available to the sector would be impacted by the national decision to leave the EU.

·                The removal of “waste” in processes to make areas more efficient and why such steps had not been taken at an earlier stage.

·                The potential for redundancies having to be made and whether the cost of this had been taken into account.

·                The possibility of reviewing staff terms and conditions.

After further discussion it was

RESOLVED that

the Council’s Efficiency Plan for 2016/17 – 2019/20 be noted.