AGENDA ITEM 17
BOROUGH OF POOLE
CABINET
3rd APRIL 2007
FORWARD ANNUAL EFFICIENCY STATEMENT 2007/08
PART OF THE PUBLISHED FORWARD PLAN : YES
1.Purpose & Policy Context of Report
1.1In line with the Government’s Efficiency Review each Local Authority is required to submit a Forward Annual Efficiency Statement for 2007/08 to demonstrate how the Council is progressing against its efficiency targets.
1.2This Forward Annual Efficiency Statement must be submitted to the Department for Communities and Local Government (DCLG) by 12th April 2007 and requires the approval of the Leader, the Chief Executive and the Head of Financial Services.
1.3Financial Services has compiled the Statement primarily by reference to Service Unit Heads.
2.Recommendations
Cabinet is asked to:
2.1Note the Forward Annual Efficiency Statement 2007/08 (Appendix A).
- Background
3.1The Council had originally been presented with an annual efficiency gain target of £2.5m for each of the three years under the period of review, which by 2007/08 should have cumulatively equalled £7.5m of efficiency gains against a 2004/05 baseline of £100m. This target had been based on estimated expenditure for 2004-05.
3.2This target has since been revised by the DCLG, based on 2004-05 outturn expenditure of £88m. The Council’s revised efficiency gain targets are now presented as follows:-
- 2005/06 efficiency target £2.5m (Year 1)
- 2006-07 efficiency target £4.4m (Year 2)
- 2007-08 efficiency target £6.6m (Year 3)
These targets relate to the Council’s cumulative achievement of efficiency gains since 1 April 2004. By the end of each given financial year, the Council must have achieved efficiency gains of at least the value shown. In addition, at least half of the gains must be cashable.
3.3The Council has identified cumulative efficiency gains of £5.3m by the end of Year 2 of the review period, of which £3.2m are cashable.
3.4Subject to the above being achieved, this would leave approximately £1.3m of the Government-set cumulative target of £6.6m of efficiency gains to be delivered during the course of 2007/08.
3.5Given that Appendix A shows planned efficiency gains for 2007/08 of £1.8m, the cumulative efficiency gains for the whole review period are expected to amount to £7.1m, of which £4.5m are cashable, i.e., an over-achievement against the Government-set target.
3.6The work undertaken includes the identification of qualitative checks to ensure the efficiencies are gained without any adverse effects on performance.
3.7An explicit overarching corporate strategy for the delivery of organisational efficiency improvements will be required for future years, given that a tougher 3% annual efficiency target is expected to be applied to Local Government from 2008/09 solely through the achievement of cashable gains.
- Financial and Legal Implications
4.1Financial implications are as outlined within the report.
4.2There are no legal implications.
R L Jackson - Head of Financial Services
Background Papers:-
Delivering Efficiency in Local Services: One Year On
Measuring and Reporting Efficiency Gains
Tel: 01202 633105 – 15 March 2007
Appendix A
Forward Annual Efficiency Statement 2007/08
Strategy for period to 2007/08
Underpinning the Council’s Corporate Strategy is the Medium Term Financial Plan. The Council’s budget strategy includes an efficiency programme to ensure the Council continues to review areas where efficiencies can be achieved and delivers affordable levels of Council Tax.
Key actions in 2007/08 / Expected annual efficiency gains (£) / …of which cashable (£)Adult social services
Significant efficiency gains will be achieved in the supported living service with improved staffing rosters and post re-designations. Additionally, maximising the use of existing homecare block contracts will produce efficiencies. / 211,000 / 211,000
Children’s services
The Service Unit has been subject to a fundamental staff re-structure, which will be delivering significant efficiency gains for 2007/08. / 153,000 / 153,000
Culture and Sport
The transfer of the management of the Council's leisure centres to a private company should result in increased visitor numbers and better customer satisfaction.
A Business Support Officer post has been deleted from the Cultural Services staffing structure on grounds of efficiency.
Negotiated a below-inflation price rise on a major grounds maintenance contract, thereby achieving an efficiency gain. / 105,000 / 83,000
Environmental services
Renewed terms on a metals contract, leading to a significantly higher income stream.
Higher levels of recycling are leading to a lesser extent of Landfill. / 55,000 / 40,000
Key actions in 2007/08 / Expected annual efficiency gains (£) / …of which cashable (£)
Local transport (highways)
A staff re-structure has enabled the deletion of a Maintenance Manager post. / 25,000 / 25,000
LA social housing (other)
Negotiated a management fee cashable efficiency contribution saving from PHP. / 126,000 / 126,000
Non-school educational services
Reduction in advisory service, whilst maintaining school performance standards. Additionally, improved service support will lead to a higher level of ‘buy in’ from schools. / 182,000 / 182,000
Supporting People
Negotiated price reductions, below-inflation price rises and a rationalisation to the service provider base will achieve significant efficiencies. However, a lower Supporting People Government grant will mean that such efficiencies will be non-cashable from the Council's perspective. / 363,000 / 0
Homelessness
Replacing Bourne leased scheme with a more efficient service provision alternative. / 70,000 / 70,000
Corporate services
Miscellaneous planned efficiency gains within corporate support services, i.e., Finance, ICT, Legal & Personnel. / 192,000 / 182,000
Procurement
Savings arise from re-letting the Council’s building cleaning contract with effect from 1 April 2007.
ICT are planning to achieve approximately 25% of telephone line rental and call charges by moving to a framework contract arrangement.
Personnel have negotiated below-inflation price rises on the Council’s corporately procured agency staff contracts, thereby realising efficiency gains. / 100,000 / 100,000
Key actions in 2007/08 / Expected annual efficiency gains (£) / …of which cashable (£)
Transactions
A greater promotion of the use of procurement cards for low value transactions, together with actively encouraging suppliers to consolidate the number of invoices issued to the Council and to transact electronically will deliver significant administrative transactional efficiencies. / 80,000 / 20,000
Miscellaneous efficiencies
Efficiency gains will be achieved through negotiating above-inflation enhanced returns on property-based investment assets and from the disposal of land and buildings which have been declared surplus to operational requirements and entail no loss of service outputs or quality. / 115,000 / 115,000
Totals for 2007/08 / £1,777,000 / £1,307,000
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