Agenda item

Report of the Strategic Leadership Team (CEX/23/1) on how the Council must work for a sustainable future, attached.

RESOLVED that the challenges being faced by the authority and the steps being taken to secure Best Value are noted.

(Councillors Biederman, Brazil, Dewhirst and Whitton attended in accordance with Standing Order 25(2) and spoke to this item).

The Cabinet considered the Report of the Strategic Leadership Team (CEX/23/1) on how the Council must work for a sustainable future. The Chief Executive and Director of Finance and Public Value gave a presentation to accompany the Report which set the context of the current position of the Council.

The Report highlighted the significant change and opportunity for English local government, but a combination of high inflation and rising demand had left local authorities facing some of their toughest budgetary decisions to date.

The next financial year would be critical and the Council had agreed that it must improve the current arrangements for decision-making and governance, achieve, as far as possible, financial sustainability and support and empower staff to deliver the best outcomes.

Cabinet had previously agreed six corporate priorities, one of which was value for money and financial sustainability covering: staffing; contract management; efficiency of services; income generation and full cost recovery; and use of assets and buildings, which was the focus of the Report.

The background of the Report referred to the cost-of-living crisis and geopolitical situation as well as growing demand with increased complexity and inflationary pressures. The health system in Devon continued to face operational and financial challenges as well as fiscal pressures within the Dedicated Schools Grant.

The authority’s workforce had also increased by over 1,400 since 2018/19, and a team working on the matter had identified duplication with corporate roles and functions including contract management and commissioning, HR, data, project management and business support.

The areas of focus moving forward were:

·       Property - officers had been conducting visits as part of a Property Change Programme to review the estate and identify buildings which could be relinquished as part of a ‘rolling’ change programme. The first of a series of reports from this workstream would be presented to Cabinet in October.

·       Contracts - Directorates had been working to review all external spend. Early signs were positive that a plan for the reductions would prove achievable, albeit not straightforward to achieve.

·       Staffing - a number of workstreams were underway to reduce spend, which included a pay and allowances review, benefits platform, and recruitment approval processes.

·       Agency – continued focus was required to address the high proportion of agency staff in use.

·       Transformation and Best Value – some service areas had dedicated resource in relation to some areas such as project management, data, administration, recruitment, and learning and development. Work was underway to scope staff who delivered this work and reshape them into central areas to streamline activities.

The Report also updated on SEND and Safety Valve progress, with the Council carrying a significant financial risk in the form of the SEND accumulated deficit. A second round of discussions with the Department for Education (DFE) were underway as part of the Safety Valve Intervention programme, with final submission taking place in the Autumn.

In summary, extensive work was underway in line with the ‘One Council’ approach to ensure a sustainable and stronger council was achieved. It was also positive that work was underway early in the current year to ensure the organisation was as well placed as possible to address the challenges faced.

A variety of options were being considered and those requiring Cabinet endorsement would be presented for consideration as part of the budget setting process, or as a separate report and at this time full consideration would be given to the options available, consultation processes, how the proposal aligned with the Strategic Plan, further financial and legal considerations, environmental impact and equality considerations as well as identifying risks and mitigation.

It was MOVED by Councillor Hart, SECONDED by Councillor McInnes, and

RESOLVED that the challenges being faced by the authority and the steps being taken to secure Best Value are noted.