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AGENDA ITEM: 9 Meeting Date Subject Report of Summary

Page Nos. 101 – 124 Cabinet 20 October 2010 Financial and Business Planning 2011/12 – 2013/14 Leader of the Council Cabinet Member for Resources and Performance
This report sets out the impact of recent announcements on the medium-term financial strategy, sets out high level budget options to enable consultation with the public and stakeholders, and proposes next steps in Cabinet’s consideration of the financial and business planning process.

Officer Contributors

Andrew Travers, Deputy Chief Executive Zina Etheridge, Assistant Chief Executive Assistant Directors of Finance Public All Appendix 1 – Leader’s letter to Secretary of State Appendix 2 – Service budget savings options for consultation Cabinet Executive N/A

Status (public or exempt) Wards affected Enclosures For decision by Function of Reason for urgency/exemption from call-in

Contact for further information: Andrew Travers, Deputy Chief Executive, 020 8359 7850

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1. 1.1 1.2 1.3

RECOMMENDATIONS That the impact of the Emergency Budget, the consultation on formula grant, and the revised medium-term financial strategy are noted. That consultation on the 2011/12 to 2013/14 budget options commences on the basis of the proposals set out at Appendix 2. That Cabinet consider consultation responses in setting budget headlines at a further meeting to be held on 13 December 2010, following the local government finance settlement. RELEVANT PREVIOUS DECISIONS Cabinet on 21 June 2010 considered the strategic outlook and likely severe resource constraint, and agreed a financial and business planning process covering the period 2011/12 to 2013/14. CORPORATE PRIORITIES AND POLICY CONSIDERATIONS The financial and business planning process is designed to enable Members to set the strategic direction of the Council, and for that direction to be reflected in the Corporate Plan, the budget, and business unit and individual staff plans. The process is designed to dovetail with the current Corporate Plan, ensuring resources are most effectively focussed on the priorities set out in the plan of Better Services with Less Money, Sharing Opportunities, and Successful London Suburb. The severe pressure on resources through the business planning period will require targeting on service areas of the greatest need. RISK MANAGEMENT ISSUES Severe resource constraint represents the most significant risk to the Council fulfilling its strategic objectives. The One-Barnet (formerly Future Shape) programme potentially mitigates this risk, but needs to be taken forward in a timely fashion and integrated into the financial and business planning process. The Council has recently taken steps to improve its risk management processes, in particular integrating the management of financial and other risks. Risk management information is reported quarterly to Cabinet Resources Committee, along with other performance management information, and will be reflected as appropriate in financial and business planning. The Catalyst arbitration, reported to Cabinet Resources Committee on 19 October, resulted in an additional cost estimated at £7m, which has had a significant impact on the earmarked risk reserve which now stands at £11.4m. The outcome of Icelandic Bank litigation remains the single most important financial risk facing the Council. The latest position is that hearings in the Icelandic courts are not likely to take place before January 2011. Authorities affected are continuing to work with the Local Government

2 2.1

3. 3.1

3.2

4. 4.1

4.2

4.3

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Association to achieve the best possible outcome. Regular progress reports are provided to the Cabinet Resources Committee. 4.4 The financial challenges facing the Council and set out this report will require fundamental change in the way Council services are delivered which in turn will impact on the human resources of the organisation and related policies and practices. Managing this process in conjunction with Trade Unions and staff is a key risk which will be mitigated through the people and culture workstream within the One-Barnet programme. The delivery of savings of the likely magnitude required will necessitate robust monitoring and financial control through the performance and risk management processes. EQUALITIES AND DIVERSITY ISSUES The projected increase in the borough’s population and changes in the demographic profile will be key factors that need to be considered when determining both the corporate strategy and service responses. Both of these need to also reflect the aspirations and contributions of current residents. Consultation following publication of this report is a key part of the consideration of equalities and diversity issues. All specific proposals emerging from the financial and business planning process will need to be fully considered in terms of equalities and diversity issues as set out in the current Corporate Plan, including the requirements for specific consultation and equality impact assessments where necessary. The equalities assessment of the budgetary implications will be presented to Cabinet for consideration. Similarly, all human resources implications will be managed in accordance with the Council’s Managing Change policy that supports the Council’s Human Resources Strategy and meets statutory equalities duties and current employment legislation. USE OF RESOURCES IMPLICATIONS (Finance, Procurement, Performance & Value for Money, Staffing, IT, Property, Sustainability) This report is concerned with the Council’s medium-term financial strategy and budget process. It anticipates severe resource constraint and proposes a process designed to maximise the Council’s ability to pursue its strategic agenda through an extremely challenging period. The Government has decided to discontinue the national performance management mechanism overseen by the Audit Commission. As part of this business planning process, the Council will therefore need to determine even more clearly its own strategic objectives and the metrics which can be used to measure success. Similarly, the demise of the Use of Resources assessment means that the Council must ensure that the normal business planning cycle will deliver the strong governance and corporate capacity necessary to ensure that resources are utilised effectively.

4.5

5. 5.1

5.2

5.3

6. 6.1

6.2

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7. 7.1

LEGAL ISSUES All proposals emerging from the financial and business planning process will need to be fully considered in terms of legal implications for the Council and, where appropriate, mechanisms put into place to mitigate legal risks. CONSTITUTIONAL POWERS Constitution, Part 3, Responsibility for Functions – Section 3, Responsibilities of the Executive. BACKGROUND INFORMATION Strategic approach The Cabinet on 21 June 2010 considered the strategic policy context for the financial and business planning process paying particular attention to:    planned housing development in the Borough the consequent population increase (making Barnet the most populous London Borough) changing roles and expectations for public services and local government.

8. 8.1

9. 9.1 9.1.1

9.1.2

Although the Government’s emergency budget had not been announced at that point, very significant reductions in government support to local authorities were anticipated. Barnet’s response to the changing strategic agenda is the One-Barnet transformation programme built around the principles of a new relationship with citizens, one public sector in Barnet, and a relentless drive for efficiency. Emergency budget The Government’s emergency budget was announced on 22 June. The headlines were:      25% cuts over four years for non-protected public services, increasing to 33% if there is protection for schools and defence; ‘help’ from government to enable Councils to freeze council tax in 2011/12; the very significant reductions in capital spending announced by the previous government remain in place; a spending review to report on 20 October; a public sector pay freeze for two years, likely to be adopted by local authority employers, giving a three-year freeze for local government (given the zero offer for 2010/11); public sector pensions to reviewed by the (John) Hutton enquiry; senior public sector pay to be reviewed by the (Will) Hutton enquiry; significant reductions in entitlement to housing benefit.

9.1.3

9.2 9.2.1

  

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9.2.2 The impact on our budget plans can be summarised as follows:
2011/12 £m Gap Cabinet 21 June Revised Gap - Emergency Budget 25% reduction in government support Revised Gap - Emergency Budget 33% reduction in government support 10.0 10.2 13.2 2012/13 £m 8.2 8.0 10.7 2013/14 £m 5.0 7.3 9.6 Total £m

23.2 25.5 33.5

9.2.3 The above figures are based on 2.5% per annum council tax increases. If the additional financial support indicated by government becomes available, and is provided on an on-going basis, it would be possible to set a zero percent increase in council tax for 2011/12. 9.3 Spending review and local government finance settlement 9.3.1 The results of the Government’s Spending Review will be announced on 20 October. Cabinet will be provided with a verbal briefing at this meeting and a full report following publication of the local government finance settlement expected in late November/early December. However, the Spending Review is, in line with the budget, expected to set out very significant reductions in public expenditure including for local Government and other services which impact directly on Barnet’s residents (such as policing and health). In line with this, business planning options will propose significant changes to the Council’s services. Should the Spending Review imply significantly greater reductions in Government support than currently anticipated, then the timetable will need to be amended to allow for the identification of further savings options. 9.3.2 The Government is consulting on changes to the distribution of formula grant. The Secretary of State has indicated that there will be two two-year settlements (for 2011/12-2012/13 and 2013/14-2014/15), with the more significant change taking place in the second settlement following the review of local government finance which is due to report in 2012. 9.3.3 The consultation document sets out a number of potential changes which could have a significant distributional impact. Of most concern is the potential change to the calculation of the area cost adjustment which would reduce the proportion of labour costs included within the formula This would have an adverse impact on London where labour costs are significantly higher – the potential cost to Barnet is £2.2m. The Leader has written to the Secretary of State setting out the Council’s concerns regarding this and other financial matters. The letter is attached as Appendix 1. 9.4 Medium-term financial strategy  the 2010/11 budget included £3m for Future Shape savings. A shortfall of savings this year of £1.6m has been reported to Cabinet Resources Committee, therefore this sum needs to be added to the budget gap for 2011/12 to be met by the full-year effect of the savings identified; 9.4.1 The medium-term financial strategy requires updating for the following factors:

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the pressure on primary school places has been reported to Cabinet. The Council continues to seek government support for this unavoidable requirement and a corporate asset disposal programme is being considered to generate capital receipts. In the circumstances, it is, however, prudent to increase capital financing provision by £1m in each of 2012/13 and 2013/14; Transport for London has announced that it is withdrawing from the previously agreed five-year deal in respect of the financing of the Freedom Pass. The estimated impact on Barnet in 2011/12 is £1m.

9.4.2 The impact on our budget plans of these changes is as follows:
2011/12 £m 13.2 1.6 1.0 1.0 15.8 11.7 10.6 1.0 2012/13 £m 10.7 2013/14 £m 9.6 Total £m 33.5 1.6 2.0 1.0 38.1

Gap - Emergency Budget 33% reduction in government support One-Barnet saving shortfall Primary places prudential borrowing Freedom Pass Revised Gap

9.5

Financial and business planning process

9.5.1 The financial and business planning process has progressed as agreed by the Cabinet in June. Services have been asked to generate net savings options of 20% of the 2010/11 base budget over the three-year period. Savings options are set out at Appendix 2. In addition to reductions in mainstream budgets, the schedules also reflect the potential impact of reductions in specific grant and other specific funding which would result in equivalent cessation or reduction in the relevant service areas. 9.5.2 Budget options are released for consultation at this stage and work will continue to verify detailed proposals and consider further savings opportunities, including those generated through consultation and staff engagement. 9.5.3 The consultation and engagement programme will be as follows:  a ‘budget ideas’ website has been available from 22 September – www.ideas.barnet.gov.uk to encourage residents to submit ideas of where we can save money through simplifying processes, stopping doing things, or charging; the Civic network met on 7 October to consider some of these ideas; the budget savings options set out in appendix 2 will be added to the budget website for residents to express any views. The budget headlines will be added to the website when they go to Cabinet in December; there will be three public meetings within the Borough in late October/early November to enable residents to hear from the Cabinet Member for Resources and Performance about the context within which the budget setting is taking place, the level of savings required and the high level options;

 

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   

non-domestic rate payers will be consulted on the budget headlines (as statutorily required) from January to February 2011; staff engagement will continue through budget savings suggestions and a rapid improvement project; engagement with partners will; be progressed through a post-Spending Review Summit; there will be consideration of budget options by the Budget and Performance Overview and Scrutiny Committee.

9.5.4 The human resources implications of the process will be further considered at General Functions Committee on 25 October 2010. Specifically, the Committee will consider revised severance and management of change policies, and the practical steps for the implementation of a redundancy programme. 9.5.5 An initial review of the budget options to be released for consultation shows the following potential post reductions and redundancies in 2011/12 and later years:
2011/12 Staff FTE redundant 160 180 240 250 400 430 2012/13 FTE 80 80 2013/14 FTE 120 120

Mainstream funded services Specific grant/other specific funded services at risk Total

Finalisation of budget proposals in the period to December will enable formal proposals for headcount reductions to be prepared and for the necessary consultation to take place. 9.5.6 The financial and business planning process will continue as planned. The next steps will be to consider the budget package following the publication on 20 October of the Spending Review and the Local Government Finance Settlement expected in late November/early December. It is recommended that the special meeting of Cabinet provisionally planned for December is now confirmed. 10. 10.1 LIST OF BACKGROUND PAPERS None.

CFO: AT Legal: MAM/JEL

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CABINET 20th OCTOBER 2010

APPENDIX 2

Summary Sheet 1 Adult Social Services 2 Chief Executive’s Service 3 Children’s Services 4 Commercial 5 Corporate Governance 6 Revenues and Benefits 7 Customer Services, Libraries, Registrars 8 HR 9 IS 10 Finance 11 Environment & Operations 12 SPA 13 Planning Housing & Regeneration

111 112 113 114 115 116 117 118 119 120 121 122 123 124

110

FINANCIAL AND BUSINESS PLANNING 2011-13 SAVINGS SUMMARY - GROSS SAVINGS

Service

Original Budget £'000

2011-12 Gross Savings £'000

2012-13 Gross Savings £'000

2013-14 Gross Savings £'000

All Years
£'000

Adult Social Services Chief Executive's Service Children's Service Commercial Services Corporate Governance Corporate Service Benefits & Local Taxation includes Revenues Customer Service & Libraries, Museum & Local Studies, Registration & Nationality HR IS Corporate Service Total Environment & Operations excluding Special Parking Account Special Parking Account Finance Planning, Housing & Regeneration

96,321 4,008 49,169 8,202 6,010

(7,917) (897) (3,894) (521) (604)

(5,957) (150) (1,194) (1,063) (205)

(4,144) (150) (4,553) (732) (216)

(18,018) (1,197) (9,641) (2,316) (1,025) 0

5,820 8,404 2,017 6,609 22,850 28,443 5,092 3,446 1,996 225,537

(1,390) (428) (170) (357) (2,345) (2,415) (739) (595) (901) (20,828)

(256) (1,364) (150) (1,020) (2,790) (1,010) (239) (403) (205) (13,215)

0 (355) (300) 0 (655) (1,065) (381) 5 (230) (12,121)

(1,646) (2,147) (620) (1,377) (5,790) (4,490) (1,359) (993) (1,336) (46,164)

SERVICE TOTAL

1 111

Savings Options
Service: Adult Social Services Expected Revenue Savings (pa)
£000's

Service Area

Description

2011/12

2012/13

2013/14

Strand A (Income ) Amend Fairer Charging Policy to ensure compatibility with Personal Budgets. The proposed changes will generally 1 Revenue Income Optimisation (existing services bring Barnet in line with comparable London authorities. Strand B (Efficiencies ) 2 Transport 3 Cross Directorate Reduce cost of Transport for Adults arising out of better route planning, amending attendance times and more efficient use of vehicles as part of the One Barnet programme Reduction in Back Office and Management Overheads and training budgets across the Directorate gained from efficiencies in staffing and running costs. Efficiencies through more joined up working with Health. This covers sharing more costs with health on commissioning, social work staffing and enablement in addressing a more joined up approach to meeting health and social care needs. Savings accrued through remodelling inhouse services to promote independence and inclusion for disabled people and enabling the services to trade and increase income through moving to an alternative service delivery model via a Local Authority Trading Company as part of the One Barnet programme Savings gained through re-tendering core services providing homecare, equipment and meals.

-897

-212

-40

-196 -489

-55 -200

0 -787

4 Partnership with Health

-798

-160

-380

5 In House Service Savings 6 All Adult Social Care Strand C (Reducing Provider Spend ) 7 All Care Groups

-517 -1263

-85 -440

-200 0

Reducing the costs of the most expensive care packages to achieve best value for money through improved market management, and detailed negotiations with providers

-1817

-1920

-1300

Strand D (Improved Targeting of Services ) 8 All Adult Social Services Care Groups Reductions in care package costs through recognising the council priority of sharing opportunities and sharing responsibilities. This takes into account the contributions families and communities make to supporting service users. Improved targeting of spend on preventative services to focus on the highest priorities and to deliver voluntary sector services in the most efficient way. Lower priority services will cease. Reduction in block contract of floating support preventive services. Reviews of current packages to ensure that the most appropriate support is given at the right price. Working with health to ensure health funding is secured for health needs. -150 -615 -465

9 Supporting People and Voluntary Sector

-942

-1842

-342

10 All Care Groups
Total

-848
-7917

-428
-5957

-630
-4144

2 112

Savings Options
Service:
Chief Executive Expected Revenue Savings (pa) £000's

Service Area Reducing the Cost of Senior Management 1 Executive Directors

Description

2011/12

2012/13

2013/14

Efficiency saving from restructure of Director's Group

-596

0

0

Rationalisation of the communications team and Mayor's Office 2 Mayor's office 3 Comms Reduction in civic events supported by the council Reduction of communications team -33 -62 0 -1 0 0

Refocusing of the third sector grants programme 4 Grants End small grants programmes - will lead to specific reductions in service Reduce funding for large grant contracts - may lead to closure of some facilities and will lead to reductions in service -128 0 0

5 Grants

-78

-149

-150

Total

-897

-150

-150

3 113

Savings Options
Service: Children's Service Expected Revenue Savings (pa) £000's 2011/12 2012/13 2013/14

Service Area

Description

Strand A Schools and Learning 1 Schools Improvement and support service 2 Educational psychology and behavioural support service 3 Building Schools for the Future 4 Children excluded from school Strand B Youth Services 5 Integrated Youth Services, arts, play and sports (1) Reshape and reduce youth support services through increased commissioning of delivery, seeking efficiencies through integrating services and income generation, reducing local authority directly provided activities and youth centres, reducing universal information advice and guidance located in schools and reducing commissioning of arts, play and sports provision. In addition to the reduction in budget above, further cut financial support for youth related services to further reduce activities and commissioning budgets. In addition to the reductions above, further cut financial support for youth related services leaving a residual minimal service in place. -1651 Reduce school improvement support service for primary and secondary schools (including support for developing the 14-19 curriculum), leaving a residual service to monitor and challenge under performing schools. Reduce the educational psychology and behavioural support service, reducing the training and support for schools and teachers and in year 3, reducing individual work with children Building Schools for the Future programme discontinued Reshape provision for children excluded from school to reflect reduced need, as a consequence of investment in early intervention and prevention -683 -67 -250 -250 -37 -150 -103 -233

6 Integrated Youth Services (2) 7 Integrated Youth Services (3)

-500 -1108

Strand C Early Intervention and Prevention 8 Early years and children's centres Reduce the level of teaching resource funded in children's centres located in the less deprived areas of Barnet and reduce staffing costs within the early years delivery programme. Invest in early intervention and prevention services to improve the timely support for children and families experiencing difficulties in order to reduce the number of children coming into care or requiring expensive high cost interventions. This saving is based on current levels of known demand. -285

9 Children's Social Care

-2180

Strand D Social Care and Safeguarding 10 Children's Social Care Reduce support for children in care, provided to support their educational achievement and to promote good health and healthy lifestyles, review adoption and other allowances and cease specialist social work around emotional and mental health needs. -210 -249

Strand E Complex Needs 11 Children with Complex Needs Strand F Support Functions and Other 12 Cross Departmental 13 Cross Departmental 14 Cross council
Total

Reduce costs by recommissioning, reconfiguring and developing new models of services

-400

-127

-280

Reduction in back office and management overhead across the Directorate, improving efficiency and increasing income through raising fees and charges across a range of activity Potential staff redundancies identified in worst case scenario of 100% of central government specific grants of approx £14m currently received within the Children's Service are cut (excluding schools) Potential estimated staff redundancies identified as a result of schools converting to Academy status (2 schools converted Sept/Oct and 2 actively preparing for conversion); any further conversions will have a further staffing impact
-3894

-558

-170

-150

-1194

-4553

4 114

Savings Options
Service:
Commercial Expected Revenue Savings (pa) £000's

Service Area Strand A One Barnet Service Transformation 1 Commercial Strand B Procurement Savings 2 Procurement Strand C Estates consolidation & improvement 3 Property Services 4 Property Services 5 Property Services 6 Property Services 7 Property Services Strand D Commercial Rents 8 Property Services Total Increased commercial rents income

Description

2011/12

2012/13

2013/14

Alternative service delivery model: estimate of savings available

-101

-147

Savings from renegotiating video contract and post room contract

-45

Reduction in use of external asset management resources Cost of maintaining properties pending sale Removal of essential car allowances Council offices utilisation and efficiency savings Facilities Management saving in relocation of depot

-100 -120 -32 -193 -746 -462 -150 -120

-50 -521

-50 -1063 -732

5 115

Savings Options
Service:
Corporate Governance Expected Revenue Savings (pa) £000's

Service Area Strand A One Barnet 1 Cross directorate E-recruitment

Description

2011/12 -1

2012/13 -1

2013/14

Strand B Re-organisation - No Significant Service Reduction 2 CAFT/Electoral registration/Perf & OD 3 CG Directors Strand C Re-organisation - Service Reductions 4 Democratic Services / Legal Services/Elections Team Re-organisation of these teams resulting in some service reductions Strand E Members Allowances 5 Democratic Services -266 -180 -100 Re-organisation of the staffing within these teams as an efficiency resulting in no significant service reduction Reorganisation of staffing arrangements as an efficiency resulting in no significant service reduction -151 -35 -9 -36

Revision of Members allowances

-100

Strand F Cross Directorate Efficiencies and Reductions in Expenditure 6 Civil protection/Legal Services/ Democratic Services General reductions in expenditure 7 Insurance 8 Cross-directorate Total Efficiency saving from reorganisation of service arrangements Expenditure reduction & Rationalisation -30 -11 -10 -604 -10 -205 -50 -216 -5 -30

6 116

Savings Options
Service:
Revenues and Benefits Expected Revenue Savings (pa) £000's Description Alternative service delivery model: estimate of savings available 2011/12 2012/13 -256 2013/14

Service Area Strand A One Barnet 1 Revs & Bens Strand B Efficiencies within Benefits Service 2 Benefits 3 Benefits

Efficiencies through new IT system Efficiencies from reduced management costs

-92 -70

Strand C Local Tax and Control Service Savings 4 Local Tax & Control 5 Local Tax & Control 6 Local Tax & Control / Benefits Strand D Student Finance 7 Student finance Total Transfer of function of student finance to Student Loan Company -158 -1390 -256 0 Removal of 50% Long Term Empty Discount Removal of payment booklets Refunds to be issued via BACS -1000 -50 -20

7 117

Savings Options
Service:
Customer Services, Libraries and Registrars Expected Revenue Savings (pa) £000's

Service Area Strand A (One Barnet programme) 1 Customer Services 2 Customer Services 3 Libraries

Description

2011/12

2012/13

2013/14

Alternative service delivery model: estimate of savings available Customer Service Organisation Programme - consolidation of telephone contact staff and technology into a single service and encouraging significant increase in use of the web for customer contact Reduce building maintenance costs and increase revenue streams -105 -10

-300 -170 -60 -30

Strand B (Service review, reorganisation, or reduction) 4 Customer Services 5 Registrars 6 Libraries 7 Libraries Consolidation of management roles. End Saturday opening and reduce advertising expenditure at Burnt Oak Customer Service Centre Relocate registry office to Hendon Strategic Review of Libraries to provide a modernised service to meet local need, delivering a better service for less money. Estimate of savings required. Review operation of mobile library and home library service to better meet the needs of vulnerable residents; and review of museums -90 -68 -50 -635 -125 -275 -50

Strand C (Reduce spend, reduce service, or increase income) 8 Registrars 9 Libraries Further develop income generating services - e.g. nationality and settlement checking Reduction of spending on supplies and services -44 -111 -14 -10

Strand D (Grant reduction) 10 Libraries 11 Libraries Total Pending decision on reduced Bookstart grant. Reduction of all grant would cease service Pending decision on Children's Centre. Reduction of all grant would cease service -428 -1364 -355

8 118

Savings Options
Service:
HR Expected Revenue Savings (pa) £000's

Service Area Strand A - HR One Barnet 1 HR 2 HR 3 HR

Description

2011/12

2012/13

2013/14

E Recruitment will provide process savings and reduced advertising costs. Alternative service delivery model: estimate of savings available HR efficiency, post implementation of One Barnet

-81 -150 -300

Strand B - HR Savings 4 HR 5 HR Total Workforce saving as part of e recruitment Changes to Trade Union Facilities Agreement to bring in line with other London boroughs -45 -44 -170 -150 -300

9 119

Savings Options
Service:
Information Systems Expected Revenue Savings (pa) £000's

Service Area Strand A - One Barnet 1 IS 2 IS

Description

2011/12

2012/13

2013/14

Alternative service delivery model: estimate of savings available Consolidation of IS from service areas -96

-600 -224

Strand B - IS service efficiency 3 IS 4 IS Total Procurement savings from the supply and delivery of IT related products and services Consolidation of Libraries IS support staff -226 -35 -357 -174 -22 -1020 0

10 120

Savings Options
Service:
Finance Expected Revenue Savings (pa) £000's

Service Area Strand A Alternative Service Delivery Model 1 Finance 2 Internal Audit

Description

2011/12

2012/13

2013/14

Alternative service delivery model: estimate of savings available Savings resulting from alternative service provision of the Internal Audit Service and changes in scope of the audit coverage -144

-345

-120

Strand B Efficiency Improvements 3 Accounts Payable 4 Strategic Finance 5 Income Procurement / SAP Optimisation savings - In supplies and services e.g. Office Supplies and invoicing Income recovery resulting from successful VAT claims Move to new initiatives involving less cash e.g. prepaid cards and cashless working -60 -337 37 -40 300 -175

Strand C Staffing Reductions 6 Financial Services Restructure of Finance teams and rationalisation of vacant posts to streamline -54 -55

Total

-595

-403

5

11 121

Savings Options
Service:
Environment & Operations (Non SPA) Expected Revenue Savings (pa) £000's

Service Area Strand A 1 Highways Strand B 2 Environment & Operations Strand C 3 Greenspaces 4 Greenspaces Strand D 5 Refuse & Street Scene 6 Waste & Sustainability Strand E 7 Highways Strand F 8 Community Protection Group 9 Community Protection Group Strand G 10 Environment & Operations Total Revenue Income Optimisation Charging for parking in all borough car parks One Barnet

Description

2011/12 -125

2012/13

2013/14

Alternative service delivery model: estimate of savings available Greenspaces efficiencies and service reductions Efficiencies from changed working practices in greensapces and service reductions including changes required as part of the Big Society agenda Leisure contract savings following contract review Efficiencies and service reductions in Waste and Street Scene Services Efficiencies and service reductions in refuse fleet and refining service provision Efficiencies and service reductions in publicity and rationalisation of corporate functions to reduce duplication. Efficiencies and service reductions in Highways Efficiencies and service reductions in Highways contracts and changes in highways priorities Community Protection Group CCTV mobile unit to be operated and deployed by metropolitan police Efficiencies within Community Safety Service-wide efficiencies from changed working practices Change to working practices and move to area based working to make more efficient use of resources

-138

-13

-122 -133

-30 -70

-417 -62

-293 -83

-111 -71

-124

-737

-430

-200

-67 -57 -37

-660 -2415

-285 -1010

-225 -1065

12 122

Savings Options
Service: Environment & Operations (SPA) Expected Revenue Savings (pa) £000's

Service Area Strand A 1 Highways Strand B 2 Highways
Total

Description Revenue Income Optimisation Improving compliance with parking regulations One Barnet Alternative service delivery model: estimate of savings available

2011/12 -739

2012/13

2013/14

-239
-739 -239

-381
-381

13 123

Savings Options
Service: PHR
Expected Revenue Savings (pa) £000's

Service Area Service & LEAN efficiencies 1 Housing 2 PHR

Description

2011/12

2012/13

2013/14

LEAN Review - Phase 2 i.e. next step of Housing restructuring to improve customer service through improving processes Senior management delayering and Business Support staff consolidation. The aim is to have minimal impact on frontline services.

-200 -142

One Barnet 3 PHR LEAN Review and consolidation of Planning & Regulatory services with associated restructure and efficiencies to improve customer service through improving processes. One Barnet Programme - Alternative Service Delivery Model for Planning & Regulatory Services: estimate of savings available -200

4 PHR

-104

-205

-230

Income generation 5 Regeneration 6 Environ Health / Hendon Cem/Crem Total Private Sector Leasing Properties on regeneration estates - additional income from properties purchased ready for Regeneration. Improved Business Planning and additional income from competitive charging at Hendon Cemetery and Crematorium. -200

-55

-901

-205

-230

14 124