Agenda item

            The Committee considered the undernoted report:

 

“1        Relevant Background Information

 

1.1       Members will be aware that to date the corporate efficiency programme has delivered savings of some £12m across the Council. At the Strategic Policy and Resources Committee on the 15 April 2011, it was agreed that a further indicative efficiency target of £2m per year for 2012-13 and 2013-14 should be achieved with a further report to be brought back in June.

 

1.2       Based on further work and in liaison with the Trade Union Efficiency Sub Group a break down of the efficiency programme for 2012/13 has been developed for Members consideration.

 

2          Key Issues

 

2.1       In developing the programme, Members should be aware that we have used the same efficiency theme headings as previously agreed by SP&R Committee in May 2010. These cover the areas suggested by the HM Treasury as the fundamental key drivers for developing successful efficiency programmes.

 

2.2       These themes are:

 

·         Assets and Land

·         Procurement

·         Budgetary Challenge

·         ICT

·         Service & Employee Costs Reviews

·         Income Generation

 

2.3       The proposed split of the £2m efficiency target across these headings is set out in Figure One below.

 

Figure One

 

Efficiency Theme	Estimated Savings £k
Assets & Land	150
Procurement	175
Budgetary Challenge	500
ICT	175
Service & Employee Costs Review	550
Income Generation	450
Totals	2,000

 

2.4       A summary of the types of projects included under each theme within the proposed 2012-13 programme has been included in Appendix 1.

 

2.5       Next Steps

 

            Work will be ongoing with departments over the coming months to provide support and assistance in the delivery of the projects identified. The projected cash savings will then be removed from budgets as part of the 2012-13 estimates process.

 

2.6       Councillors will wish to keep the efficiency target for 2012/13 under review during the rates setting process in the autumn. Work will also continue with departments on the efficiency programme for 2013/14.

 

3          Recommendations

 

3.1       Members are requested to:

 

·         Note the contents of the report.

 

·         Agree that the efficiency programme for 2012/13 should achieve a minimum of £2m in the areas outlined within the report.

 

·         Note that the final efficiency target and programme for 2012/13 will be agreed as part of the rates setting process in the autumn.

 

4          Decision Tracker

 

            Responsible Officers:

 

            Director of Finance & Resources and

               Head of Finance & Performance

 

5          Documents Attached

 

            Appendix 1 – Efficiency programme 2012/13

 

Appendix 1

 

Breakdown of Indicative Efficiency Target for 2012/13

 

Assets and Land

 

      The types of projects included under this theme include reviewing accommodation requirements, energy conservation type projects and cash savings from our Fleet in advance of the wider review into Fleet across the Council.

 

Procurement

 

      Under this theme a review led by the Procurement Unit was conducted of the tenders that departments where putting out during 2011-12 to identify scope for realising further efficiencies and potential savings of approximately £159k have been identified as a result of this exercise. Savings are proposed within cleaning contracts, supplies and services, catering franchises and cash collection contracts.

 

Budgetary Challenge

 

      Departments have completed a review of their budgets, taking into account the actual spend in 2010/11 in order to identify the scope for further efficiencies. Savings have been identified in a wide range of areas including reductions in consultancy expenditure, supplies and services, facility costs, training budgets, printing costs and utility costs.

 

ICT

 

      A corporate ICT programme has now been agreed under the Council’s ICT governance arrangements. Some of these ICT projects have identified potential efficiency savings, for example from reducing the number of printers, use of VOIP to reduce telephony costs, and a review of ICT licenses.

 

Service & Employee Costs Reviews

 

      Under this theme there has been a wide range of projects identified including reviews of overtime and agency usage, reducing employee costs from vacancies or unfilled posts and conducting service reviews leading to better staff utilisation. A corporate exercise is underway to consider the use of agency, overtime and any impact on/from vacant posts across the council and this will be an important workstream within this area. This will also include considering areas such as the use of freeze and catch?up arrangements in conjunction with the trade unions. Service and staffing implications, if any, will need to be politically acceptable.

 

Income Generation

 

      This theme has seen significant growth from the 2011-12 year as departments have been seeking more innovative ways to maximise their income which in turn will reduce the need for budget cuts. The types of projects include managing vacancy advertising for the NI local government sector, selling council professional services such as Legal Services to other organisations, rent reviews and increases in the use of fixed penalty notices for dog enforcement.”

 

            The Committee adopted the recommendations.