THE CABINET

16 OCTOBER 2017

Subject:Strategic Review Final Report

Lead Officer:David Buckland/Dave Webb

Contact on 01789 260425/260100

Lead Member: CouncillorC Saint

Summary

This report presents the findings of the Council’s Strategic Review process. The output from this review will help shape the priorities of the Council for the next decade and transform the way in which the Council operates. Following consideration and approval from The Cabinet and Council detailed implementation plans will be developed to ensure that momentum is maintained and that the Council can help deliver “A District fit for our Future”.

Recommendations to Council

1)That the proposed Vision for the Council identified in paragraph 3.5 is approved;

2)That the Strategy for Stakeholder Engagement identified in Section 4 of the report is approved;

3)That the findings from the individual Work Streams identified in Section 5 be received and provide guidance for the Council’s Policy and Budget Framework; and

4)That the proposed delivery mechanism identified in Section 6 be approved.

1Background/Information

1.1The Strategic Review is an opportunity for the Council to fundamentally assess the current service provision and to determine the future direction of the Council. The Council has reset its corporate objectives through the newly adopted Corporate Strategy that runs until 2019. The Strategic Review is being undertaken to ensure that the Council can remain financially sustainable in to the longer term and will cover a period of around 10 years.

1.2The Council is facing unprecedented financial pressures. Government has published a four year funding settlement which removes all of the Council’s Revenue Support Grant by 2019/20. In February 2017, Council approved the latest version of the Medium Term Financial Plan (MTFP) which incorporates these reductions in funding, a summary of which is shown below:

Table 1 : Medium Term Financial Plan 2017/18 to 2021/22

2017/18
£ / 2018/19
£ / 2019/20
£ / 2020/21
£ / 2021/22
£
Net Expenditure / 13,271,552 / 13,645,501 / 13,633,736 / 13,704,731 / 14,250,026
Contribution (to)/from Reserves / (818,403) / 613,661 / 823,738 / 1,317,871 / 1,602,066
Net Budget Requirement / 14,089,955 / 13,031,840 / 12,809,998 / 12,386,860 / 12,647,960
Less
Revenue Support Grant / 491,400 / 111,545 / 0 / 0 / 0
Rural Services Delivery Grant / 240,031 / 184,639 / 240,031 / 0 / 0
Transition Grant / 61,228 / 0 / 0 / 0 / 0
Business Rates Retention / 2,833,000 / 2,861,330 / 2,576,940 / 2,602,710 / 2,628,740
New Homes Bonus / 3,328,934 / 2,539,756 / 2,436,867 / 2,000,000 / 2,000,000
Collection Fund (Deficit)/Surplus / 15,582 / 0 / 0 / 0 / 0
Council Tax Income / 7,119,780 / 7,334,570 / 7,556,160 / 7,784,150 / 8,019,220
SDC Council Tax increase 2% pa / £135.71 / £138.42 / £141.19 / £144.01 / £146.89

1.3The net position for the Council for the five years incorporated within the MTFP shows a contribution to reserves is allowed in 2017/18, however, for each of the following four years reserves will be required in order to support the budgetary position. The Council currently has a high level of reserves and by 2021/22 these would still be in excess of the £2m specified minimum level. This is shown in the table below:

Table 2 – Revised General Fund Reserves Statement 2017/18 to 2021/22

Reserves Statement / 2017/18
£’000 / 2018/19
£’000 / 2019/20
£’000 / 2020/21
£’000 / 2021/22
£’000
Reserves as at 1 April (*) / 6,676 / 7,494 / 6,880 / 6,057 / 4,739
Contribution to/(from) Reserves / 818 / (614) / (824) / (1,318) / (1,602)
Reserves as at 31 March / 7,494 / 6,880 / 6,057 / 4,739 / 3,137

(*) – The reserves figure shown was at the point the MTFP was approved, the actual brought forward figure for 2017/18 was £7.476m following the closure of the 2016/17 accounts.

1.4It should be noted that an assumed level of saving has already been included within the MTFP related to the Strategic Review process. The table below identifies the savings requirement. £108,000 of recurring savings were delivered in 2017/18 as a result of changes to the Council Tax Reduction Scheme and restructuring of the Environmental Health section, further recurring savings however are also assumed as follows:

  • 2018/19 - £100,000
  • 2019/20 - £200,000 (additional £100,000 over 2018/19)
  • 2020/21 - £300,000 (additional £100,000 over 2019/20)
  • 2021/22 - £400,000 (additional £100,000 over 2020/21).
  • At the meeting of Council on 25 April 2016 the Terms of Reference (ToR) for the “Strategic Review” was presented following the Leader’s decision. The ToR included the overall aim and objective of the review and a copy is attached to this report atAppendix 1.
  • To ensure that the Strategic Review was considered in a managed way a number of discrete Work Streams were established to undertake the exercise. From the outset it was agreed that a key component of the review was to determine the future vision of the Council (i.e. what the Council does) and its services before investigating how such services should be delivered.
  • It was agreed that findings from the Strategic Review were made available to help inform the next iteration of the MTFP. However, since the review commenced, it was quickly identified that it would not be possible to complete the review in this period. As a result interim findings will be incorporated into the budget for 2017/18, with the review being concluded by October 2017. Given the scope of the review it will not be possible to implement all of the findings within this period, but an action plan will be formulated.
  • Five individual Work Streams were set up and have been meeting on a regular basis since June 2016, providing updates to the main Strategic Review Group. For reference, the Work Streams, including main areas of focus are as follows:-
  • Work Stream 1 - Future Vision of Service Provision
  • Corporate Strategy Priorities
  • Political Priorities - manifesto commitments
  • Public Priorities
  • Business community priorities
  • Discretionary/ Statutory split.
  • Work Stream 2 - Cost comparison and benchmarking
  • Identification of costs of delivering current services
  • Identification of savings already delivered
  • CIPFA benchmarking exercise
  • Central Government
  • LG Inform plus.
  • Work Stream 3 – Ways of Working
  • Sourcing Strategy Shared Services/contracting
  • Homeworking options – link to Elizabeth House
  • Public/Private Partnerships
  • Development of Teckal company approach.
  • Work Stream 4 - Income Generation and Asset review
  • Accommodation review of the Council – Elizabeth House
  • Council Tax Reduction Scheme
  • Fees and charges review
  • Review of Asset Strategy.
  • Work Stream 5 - Strategic and Policy Issues
  • Emerging Government Policy issues
  • Implementation of Core Strategy/Community Infrastructure Levy
  • Review of Terms and Conditions
  • Policy in relation to Council Tax.

1.9It was intended that the results of the Strategic Review would feed into the budget process for 2017/18. The savings required to be provided for the 2017/18 were identified, and it was agreed that a deadline of October 2017 would be set.

1.10From the outset, the SRG committed to include the views of stakeholders and residents to inform the review and to help formulate priorities as part of progressing Work Stream 1.

1.11During the course of the review residents and over 40 stakeholders have been consulted over priorities and emerging projects. The Council’s current financial position which includes a level of reserves far greater than the minimum acceptable level aligned to the prospect of continued austerity measures and reduced levels of Government grant funding have placed a significant degree of importance on the Strategic Review to make recommendations which will help secure the longer term viability of the Council.

1.12In addition, expectations have been raised amongst stakeholders who are looking to the Council to set a direction which will support the economic prosperity of the District and address increasing health and wellbeing issues. In summary, the Strategic Review is fundamental to identifying solutions to help secure the long term financial sustainability of the Council and can therefore be considered as a once in a lifetime opportunity which will benefit residents and businesses.

2.Results of Consultation with Stakeholders

2.1A significant amount of information was gathered and stakeholders were generally very appreciative that the Council had invited them to contribute to the review. A complete set of the evidence is available on the Council’s website. Through these discussions emerging issues included:-

  • A range of infrastructure ideas covering transportation, the local economy, housing and health and wellbeing;
  • More engagement with Parish and Town Councils;
  • A requirement for more skills/training; and the need to communicate more with Warwickshire County Council (WCC) and other partners;
  • Reference was made to the importance of adhering to the Warwickshire Local Council’s Charter;
  • A need to improve engagement and communication with key stakeholders to discuss the issues they face and how the Council could possibly assist and provide their expertise and support.

2.2In addition to the feedback received via the stakeholder meetings, the SRG has also considered information arising from the Customer Satisfaction Index results.

2.3These sources of information gave a broad indication of the priorities for both residents and businesses together with other organisations which operate within our District. In an attempt to determine a number of key objectives and projects for the Council to progress a questionnaire has been developed which has been sent to the c.1,200 members of the Council’s Citizens’ Panel, a copy of which is attached at Appendix 2, along with the results of the consultation.

2.4As a result of this exercise a number of key priorities were considered by The Cabinet at the meeting held on 3 July 2017.The Cabinet was presented with a report that set out the progress that had been made towards the development of a programme of infrastructure projects underpinned in a report from the Council’s consultants, ATI Projects Limited. The report:-

  • Set out a long list of potential infrastructure projects that had been identified through a range of different sources including the Strategic Review and draft Stratford Area Transport Strategy; and
  • Identified the following potential projects which The Cabinet was asked to consider whether further more detailed work should be undertaken to take them to ‘shovel ready’ status.

2.5Following consideration four key projects were identified which would direct the Council’s activities in relation to strategic projects:

  • Upper Avon Navigation – a joint initiative between Stratford-on-Avonand Warwick District Councils working with the Avon Navigation Trust(ANT) to open up the Upper Avon for navigation between Stratford-upon-Avon and Warwick and connect to the Grand Union canal forming the‘South Warwickshire Waterway’.
  • Studley Enterprise Centre – the opportunity to boost business growthand jobs in the town through the redevelopment of a County Councilowned building into a Venture House styled business centre.
  • Wellesbourne Innovation Campus – an opportunity to build a strongpartnership with Warwick University in developing facilities for a newhigh technology campus at Wellesbourne - attracting inward investmentand stimulating economic growth and jobs.
  • Priory Square Regeneration, Studley – the next phase ofdevelopment of a disused site in the centre of Studley, working withprivate developers to create an innovative live/work scheme on theformer Co-op site.

2.61616 was the year in which three world famous playwrights died. Miguel de Cervantes, William Shakespeare and Tang Xianzu. This has led to civic visits to Fuzhou, China in 2016 and again this year. Fuzhou is working fast on a significant scale to exploit the cultural and tourism opportunity. The Council will work hard with partners to exploit this opportunity to the full.

2.7The changes in technology in the motor industry toward hybrid and electric cars have been noted. It is apparent that Jaguar Land Rover and Aston Martin Lagonda Ltd will need new skill sets to adapt. The District Council will seek to help and support this and seek to maximise the benefits for the District.

3Development of future vision for the Council

3.1The existing vision for the Council contained with the Corporate Strategy approved by Council in February 2015 is as follows:

Corporate Strategy 2015-19 - Vision

Stratford-on-Avon District will be recognised as a place of opportunity and economic prosperity in order to provide a better quality of life for all who live, work and visit.

3.2In establishing the Vision three key priorities were also established which were:

Key Objective 1 – A flourishing Local Economy;

Key Objective 2 – People and their Environment;

Key Objective 3 – Responsible Community Leadership.

3.3This vision has now been reviewed, by Work Stream 1 assisted by the LGA through a facilitated workshop session. In considering the overall vision using evidence from various consultation exercises, manifesto commitments and discussions from stakeholders, the following range of priorities were identified:

  • A strong local economy;
  • Meeting our housing requirements;
  • Improving the health of residents;
  • Ensuring that our high quality environment is maintained;
  • Robust infrastructure to serve our rural residents, including public transport and digital;
  • Strong relationships with key partners to work together;
  • Ensuring our residents areaware of the position of the Council in relation to providing value for money.

3.4It was agreed that the Council should have a positive vision for the future, and one which could be easily recalled. The existing vision could be criticised for not being easily understood by our residents and businesses. Following consideration, the following vision is suggested to help guide the future direction of the Council:

Stratford-on-Avon District will develop “A District fit for our Future”, and is supported by three key objectives:

Contribute towards a flourishing local economy, enhancing our environment and infrastructure;

Promote healthy, safe and strong communities and individuals;

Be an efficient Council that works closely with partners.

3.5The vision for the Council is underpinned by key objectives which are fundamentally in line with the existing Corporate Strategy items shown above in 3.2; however, include specific reference to the health of our residents and infrastructure of the District. These key objectives will be further developed as part of the work supporting the Corporate Strategy 2019 – 2023.

4Stakeholder Engagement

4.1The Council operates in a very complex geography where a network of partnership relationships exist which impact on the District but are not conterminous with each other.

4.2The feedback from stakeholders that agreed to take part in the review presented a mixed picture. There was a strong consistent message from all partners that the Council should build upon its new approach of engagement but on a consistent level and at an earlier stage so that both can work together to achieve a common purpose. It was also recognised that the Council should continue to influence strategy in the wider region.

4.3Stakeholder engagement continues to take place across the Council and effective relationships have been forged with a range of major organisations. This work has helped progress many initiatives including major infrastructure projects arising from the Core Strategy and providing coordinated support to vulnerable residents. The evolvement ofthe West Midlands Combined Authority has also added a further dimension to the complex landscape the Council operates within.

4.4However, given the complexities a more formal approach to stakeholder engagement is now advocated to ensure resources are deployed in the most effective way and that engagements add value.

4.5Whilst one to one meetings and ad hoc engagements are encouraged as and when appropriate, for those organisations that regularly interact with the Council and that have the biggest impact on the Council’s businesses, some form of key account management should be applied.

4.6A key account management approach requires an in depth understanding of the importance of strategic relationships.It also focuses upon analysing/prioritising relationships and making decisions about which contacts will be in scope.

4.7The four key actions involved with effective key account management are: -

  1. Identification (consider what relationships the Council manages externally, what the nature of interactions are and where they might be found locally).
  2. Prioritisation(identify the key characteristics of each partner and consider how to prioritise both their relative importance and the resource available to engage with them).
  3. Engagement(explore ways of building relationships with prioritised organisations, identify actions needed to successfully forge contact and implement work to progress).
  4. Management (cascade protocols both proactively & reactively engage, record & share information, work as a team, ensure consistency).

4.8In addition, given the range of organisations the Council deals with it would be useful to group key stakeholders as follows: -

  • Health and wellbeing
  • Infrastructure and development
  • Culture and tourism
  • Jobs and skills
  • Business and enterprise.

4.9These groups will not only service to underpin the vision of the Council, but also align to the priority areas set out by Coventry and Warwickshire Local Enterprise Partnership and the West Midlands Combined Authority.

4.10Although there will be organisations which cover some or all of the groups, the concept provides a framework to the Council’s engagement approach. It is proposed that a lead from The Cabinet for each group is identified.

5Findings from Individual Work Streams

5.1The Strategic Review Group has received a range of findings from Work Streams 3, 4 and 5. These findings were underpinned by Work Stream 2 where a significant amount of benchmarking and evidence gathering was carried out to help inform the direction of the other Work Streams. These findings were discussed, evaluated and in the main supported. In some cases no further action was necessary and in others it was agreed that the Council should take a longer term view. The remaining findings are presented to The Cabinet for consideration, as follows:-

Work Stream 3 – ‘Ways of working’

The main focus of the work of this group related to the arrangements that the Council has in place for the delivery of services. The group considered an objective review of how services are delivered including, in-house provision, contracted out services, working in partnership and establishment of Council owned companies. This will build upon successes for the Council and the lessons learnt from recent experiences with Cherwell and South Northants Councils. Including:-

  • Homeworking options – link to Elizabeth House
  • Sourcing Strategy Shared Services/contracting
  • Public/Private Partnerships
  • Development of Teckal company approach.

It was recognised by the group that the Council could, through the utilisation of new and existing technologies, significantly improve the way in which the Council operates. The advantages to the Council being increased productivity and reduced accommodation requirements.A presentation was provided which identified the following key messages: