Agenda item

This report provides the Council not only with details of the key components of a strategy to deliver the transformation of the Council’s financial position but also proposals for the re-organisation and reduction of the Senior Management Team.

The Interim Joint Chief Executive and Director of Environment and Communities presented the Financial Strategy for 2024 to 2028 following two briefings provided to Members on 14 December and 4 January 2024.  The Strategy provided the Council not only with details of its key components to deliver the transformation of the Council’s financial position, but also proposals for the reorganisation and reduction of the Senior Management Team.

The Committee was reminded that it was a legal requirement to set a balanced budget each year and that although reserves were a legitimate way of balancing the budget, this was not sustainable in the longer term. The report set out the Council’s approach to achieving a balanced budget over the next 4 years and proposed actions to address the net revenue budget shortfall. It was explained that these proposals were subject to consultation to achieve savings in excess of £2m. The Strategy was based on undertaking a number of key tasks in each of the next four years and these had been detailed within the report.

            It had been the Council’s intention to secure in year savings in 2023/24 and an anticipated £2.5m reduction in the budget gap for 2024/25. Progress on starting this work had been delayed  due to the resignation of the previous Chief Executive. This meant that the potential savings identified for 23/24 would now be largely realised in 2024/25.  Service Group Heads  had been asked to identify cost reductions and income generating opportunities, the details of which had been set out in the report. Members were alerted to the fact that the Council currently had no general fund debt (although the Committee was aware that some capital schemes were planned to be funded from borrowing) and that it had a reasonable level of reserves, meaning that it was in a strong position to address the financial challenges highlighted in a measured and planned way.

Within this context of significant financial constraint, the Council had a strong updated Vision based on four key themes in terms of how it wished to move forward for the benefit of residents, businesses, visitors and the environment. To deliver these key themes during a time of financial challenge required the Council to improve its efficiency and effectiveness, transparency and communications  and required it to explore new ways of delivering services and possibly cease some too.

Progress on how the Council proposed to achieve this had been set out in paragraphs 5.1 to 5.10 of the report. Paragraph 6 set out an action plan covering the next four years to achieve the required reduction in the funding gap.  This included a restructure of the senior management team; use of different service delivery models; a. review of the 23.24 budget; maximising cost recovery; completing an asset review; undertaking an electoral review; reviewing the council’s future accommodation requirements; and the retendering of the waste contract.  This work would help the Council in moving forward in addressing its financial challenges.

The appendices to the report were explained. Appendix A set out the potential areas for savings examined subject to periodic review. Appendix B featured the issues for Members to determine through individual Committees. Appendix C set out the detail of the Senior Management Team structure which was subject to consultation and Appendix D listed the vacant posts to be deleted in addition to Senior Management posts which were again subject to consultation.

Before inviting debate on the report, Councillor Walsh proposed the recommendations which were then seconded by Councillor Oppler.

Comments made were that what had been presented to Members was an action plan rather than a strategy as the report did not confirm the overall principles of saving money. It was also felt that there had been a complete lack of Member involvement in getting to this point. Questions were then asked about the consultation undertaken regarding the proposed savings in terms of what had been delivered already. Questions were also asked surrounding the 18 posts to be deleted as not all of these posts had been listed in the appendix. In response, Members were advised that consultation regarding the proposed saving of posts also included consultation with the staff union and staff which was underway as initial informal consultation had taken place ahead of this meeting. The formal consultation would take place following the Council meeting on 10 January 2024. The aim of the Strategy was to demonstrate how the Council was going to save the money that it needed to save whilst at the same time managing the work that had to be done within remaining resources and in a way that would protect services.

Discussion then focused on the proposed actions identified to achieve the required reduction in the funding gap especially around the restructure of the Senior Management Team and the vacant posts listed in Appendix D for deletion.

The Committee then

RECOMMEND TO FULL COUNCIL – That

(1)          The Financial Strategy 2024 to 2028 be approved; and

(2)         The proposal to reduce the Senior Management Team as part of an organisational restructure be noted.

(The meeting concluded at 6.44 pm)