Five-year Business Plan 2014/15 – 2018/19 1 Contents 1. Executive summary......................................................................................................................................................................3 2. Vision and strategy ......................................................................................................................................................................4 3. Sector analysis .............................................................................................................................................................................8 4. Communication and Community Engagement ....................................................................................................................... ..9 4.1 Background to our approach to communication and community engagement ............................................................................ ..9 4.2 Putting principles into action ........................................................................................................................................................ ..9 5. Service Overview ....................................................................................................................................................................... 11 5.1 Service overview summary.......................................................................................................................................................... 11 5.2 Education..................................................................................................................................................................................... 12 5.3 Social Services ............................................................................................................................................................................ 13 5.4 Environment ................................................................................................................................................................................ 14 5.5 Housing and Customer Service ................................................................................................................................................... 15 5.6 Economy, Planning and Regulation............................................................................................................................................. 16 5.7 Assets and Support ..................................................................................................................................................................... 17 5.8 Governance and Resource.......................................................................................................................................................... 18 5.9 Chief Executive’s Office............................................................................................................................................................... 19 6. Financial plan............................................................................................................................................................................. 20 7. How will we measure our performance? ................................................................................................................................. 25 8. How do we manage risks that may impact on the delivery of the business plan?.............................................................. 28 Appendices……………………………………………………………………………………………………………………………………….29 2 1. Executive summary Stirling Council is committed to improving the lives of everyone who lives, works and visits the Stirling area through the 18 key priorities agreed by the Administration in 2012. The Council is also committed to improving the way it engages with employees, residents and other key stakeholders from the public, private and voluntary sectors, and to developing and modernising the way we deliver services. The key priorities include areas such as; Education, Families, Housing and Regeneration. These are outlined in more detail within the plan. Johanna Boyd Council Leader Bob Jack Chief Executive Overall, the Council will invest in the region of £200m per annum across services throughout Stirling city and surrounding area. This rolling five-year plan also identifies the different factors that impact on the development and delivery of services. It also outlines the activities and initiatives the Council plans to undertake to achieve our strategic vision for the Stirling area. The plan highlights that alternative ways of delivering services need to be explored which are tailored to communities’ needs. The business plan will be reviewed every year and updated in line with changes in the Council’s priorities and any relevant external factors. It is supported by our priority-based approach to budgeting. Progress on the delivery of the business plan will be regularly reported to the Council and relevant committees and will form a key part of the Council’s public performance reporting from 2014/15 to 2018/19. 3 2. Vision and strategy A Single Outcome Agreement (SOA) for Stirling With our community planning partners, Stirling Council is committed to ensuring the best possible outcomes for everyone who lives, works and visits the Stirling area. We do this through the 18 key priorities, which, in turn, reflect the national priorities set by the Scottish Government, the Concordat and the Single Outcome Agreement (SOA). The SOA has been jointly developed by the Council and our partners and aims to provide the framework that six key outcomes are delivered against. These are: • Improved outcomes in children’s early years; • Improved support for disadvantaged and vulnerable families and individuals; • Communities are well served, better connected and safe; • Reduced risk factors that lead to health and other inequalities; • Improved opportunities for learning, training and work; • A diverse economy that delivers quality local jobs; • Improved supply of social and affordable housing. A list of the community planning partners is included in Appendix 1. 4 Stirling Council – Key Priorities To deliver these six key outcomes, the Council has set out a number of key priorities. These are: Welfare Reform Partnership Developing advice services that are fit to support people through the Building a community planning partnership that is democratically led current round of welfare changes by establishing an integrated service with an engaged community and that works towards positive outcomes with voluntary sector leadership for Stirling Families Increasing the focus on early intervention to help families in need Regeneration Regenerating our most in-need communities to deliver a full range of positive social, environmental and economic outcomes Education Improving the outcomes for the lowest performing 20 per cent of children in nurseries and schools Education Providing additional nursery and out of school care places throughout the Stirling area to support working families Social Services Being a good corporate parent Elderly Improving care for our vulnerable people at home Sport Promoting opportunities and support access to physical activity and sport for all Enforcement Ensuring enforcement action is taken across all areas of Council activity and making full use of Council policy to combat anti-social behaviour Service Delivery Examining and delivering more opportunities for improved models of service delivery Environment Adopting a pragmatic approach to sustainability that protects and enhances the local environment Roads Making resurfacing roads, paths and pavements the service priority across the whole Stirling area Housing Building more socially rented housing Digital Connectivity Delivering and improving upon access to and speed of internet access across the Stirling area Economy Streamlining business support under the leadership of the business community Business Pursuing a diverse high wage economy that delivers local jobs for people across Stirling and a procurement policy that supports this Finance Our financial strategy will reflect the current economic challenges by saving £24M while ensuring the delivery of quality services 5 In order to deliver these priorities, we will adhere to a set of guiding principles: • make best use of the financial resources available to us, ensuring best value for the public purse; • have a flexible, skilled and motivated workforce; • be responsive to our customers and communities shaping our services around their needs; • focusing our resources where they are most needed; and • work closely with our partners to deliver the seven key outcomes. 6 The next five years There is likely to be significant change over the next five years that will impact the way the Council operates. These changes will be driven by financial, policy, legislative and demographic factors. Financially, the Council will continue to operate under tight constraints, with funding prioritised and allocated as outlined in section six. Capital investment by the Council is important in facilitating further investment in the area and thereby contributing to economic growth. The Council intends to broaden its outlook on alternative means of financing and funding investment, and aims to leverage additional investment where appropriate. Alternative models of service delivery may emerge that complement and enhance what we currently do. Any developments will be considered in the context of current service provision and delivery, the requirements of the people who use the services and the changing expectations of the wider public. It is important that the Council is clear about how services will be structured and managed. The rolling five-year plan allows us the flexibility to adapt to these changes and taking this strategic approach enables us to continue to deliver high quality services, and ensure that only the most appropriate savings are made. How we deliver this plan reflects the Council’s priorities, political imperatives and local circumstances. Councillors will determine the principles and direction of this plan, and the Chief Executive and Senior Management Team are accountable for its detail and delivery. In summary, our five-year plan is informed by our strategic vision and by the SOA. However it is not set in stone and will change and evolve as the Council’s priorities do. Over time, the Council will tailor its services to better meet the needs of different communities, where appropriate, and always with a sharp focus on our customers. As such, the Council will evolve and become more flexible and better prepared to take on the financial challenges it is likely to face over the next five years. The Council should also recognise the different roles that our urban and rural communities play, acknowledge that there isn’t a “one size fits all” approach and cater services to better meet these different needs. The Council need a more tailored approach to deliver this opportunity, acknowledging that the scope for refining services may be more limited for some than others. The Council will be structured and managed accordingly and will operate with a new set of values and ways of working, and our employees will play a key part in this. 7 3. Sector analysis: Major influences on Stirling Council over the next five years. Financial Influences • • • • • Political Direction and Public Policy Continued financial pressure on grant anticipated. Continued Council Tax freeze limiting ability to raise additional funds. Increasing service delivery costs. Increasing pension and salary costs. Protection of teacher numbers in national agreement will limit savings potential. • • • • • European election and Referendum in 2014, UK Parliamentary and Scottish Parliamentary elections in 2015 and 2016. Scottish local government elections in 2017. Public service reform with expectations on the public sector to share budget and resources. Likely integration of adult health and social care services with NHS in 2015. Child health will also be subject to review and closer integration. Proposed Community Empowerment Bill aims to recognise communities' talents and allow them to be more involved in shaping and delivering better outcomes. Other significant developments expected in self-directed support, children and young people, community learning, early years and community justice. Technological Influences • • • Stirling has one of the highest levels of internet connectivity in Scotland and will benefit from the roll-out of basic broadband to 94% of households and super-fast broadband to many areas. Around 18% of households in the Stirling Council area remain disconnected from the internet. More flexible and mobile ICT solutions as well as greater security and infrastructure demands of the national Public Service Network. Local Partnership and Community Planning • • • There is an expectation that effective community planning arrangements will be at the heart of public service reform. Stirling’s 10 year Single Outcome Agreement commits main community planning partners to an evidence-based approach to determining priorities, matched with a long term, outcomes focused delivery. Early intervention over the long term will achieve both financial stability and improved outcomes and will be challenging. 8 4 Communication, Community and Employee Engagement 4.1 Background to our approach to Communication and Community Engagement The Council’s approach to communication and community engagement has been shaped by “Increasing Engagement and Participation: A Framework for Change”, which was published by the Council in April 2013. The framework identifies the following ways to improve our knowledge, skills and practice: • • • Share our beliefs and understandings about good engagement and participation in practice across the organisation and with communities and with community planning partners, with a view to seeking endorsement of this framework by all partners to the Single Outcome Agreement 4.2 • Promote and enhance opportunities to increase engagement and communication between people, communities and the Council through the use of new technologies and social media. • Implement the whole authority approach that is designed to support opportunities for volunteering, a key way in which we can increase engagement and participation with and between people and groups. Putting Principles into Action Priority Based Budgeting has given us an opportunity to put into practice the principles contained within Increasing Engagement and Participation: A Framework for Change. The five-year budget that supports this business plan, takes account of extensive communication and community engagement including: • The early publication of a draft report in November, which allowed greater time for comment and feedback Review the organisation and support arrangements for our strategic engagement process, including community councils and Area Community Planning forums, to create more collaborative partnerships between the Council and the community and its community planning partners • Two corporate stakeholder briefings with around 54 key stakeholders, and a series of service-based stakeholder briefings • Whole Council and service-led workforce briefings with employees Enhance our collective leadership, facilitation and negotiation skills, by developing and implementing a modular training programme for all key personnel, services, community organisations and community planning partners • Four Area Forum meetings and seven public meetings in November and December 2013 to share options and gather comments, questions and suggestions • A public survey that asked people what they thought the Council could do differently 9 • A contact point at [email protected], where people could provide comment, questions and suggestions on our budget process • Three public feedback meetings in January 2014 • The production of a comprehensive communication and engagement report. The desire throughout the communication and community engagement exercise has been to connect communities and individuals and to ensure they have sufficient opportunity to influence the budget process. The Council will continue to have open and meaningful dialogue with employees, residents and key stakeholders throughout this process. We will also work hard to improve awareness and understanding of all of the Council’s activities and services and encourage increased participation and engagement across the board. The Council will build on this engagement with city and rural communities, our partner organisations and staff. The Council has a wide range of stakeholders and some of those are outlined in Appendix 2. 10 5. Service overview 5.1 Service Overview Summary The Council services manage the following annual budgets (2013/14 figures) Around 4240 staff members (3525 full time equivalent) are employed across the Council’s eight service areas. These include: • Education • Social Services • Environment • Housing and Customer Service • Economy, Planning and Regulation • Assets and Support • Governance and Resource • Chief Executive £,000 General Fund - Revenue Budget £201,600 General Fund - Capital Programme £29,9001 Housing Revenue Account - Revenue Budget £18,900 Housing Revenue Account – Capital Programme £17,000 The Housing Revenue Account is a ring fenced budget covering the Council’s management of its housing stock and is funded through rental income. The General Fund covers all other services. Stirling and Clackmannanshire Council’s jointly deliver Education and Social Services, with Stirling taking the lead authority role on Education, and Clackmannanshire on Social Services. 1 (includes core capital, prudential borrowing and b/f of previous year slippage) 11 5.2 Service Overviews Education The vision of the Education Service is one of high achievement, attainment and excellence and ambition for all. This vision will be realised through a continued focus and commitment to the principles that underpin Curriculum for Excellence, Getting it Right for Every Child and the Early Years Framework. Our strategic priorities reflect the national priorities set out by the Scottish Government, the Concordat and the Single Outcome Agreements. They encompass the activities and initiatives that we will undertake in order to achieve the councils’ key strategic objectives. David Leng Head of Service Service overview Over the next five years the shared Education Service will see considerable development in order to provide the best possible educational outcomes for all our children, young people and adult learners. Building on existing strategies and further developing the innovative shared service approach we will work to provide highquality education in all establishments, deliver effective youth and adult services and promote health and wellbeing in our communities. 12 5.3 Social Services The promotion of independence and personal choice underpins the Social Services vision as we move forward and we will achieve this through improved and ongoing collaboration with both service users and their families. Improved partnership working and a truly joint approach to strategic commissioning will support greater choice and knowledge of resources available. Val De Souza Head of Service Social services has a clear responsibility to ensure it meet the needs of those who are most vulnerable and that their rights and wellbeing are protected. To this end we will be working more closely with individuals and communities to design the most effective and innovative response. Positive and transformational change as we move forward, will not only position the service to meet future demand, but do so more effectively. Service overview Social Services aim to transform the way care is delivered over the next five years, to ensure the continued provision of good quality, individualised support. To achieve this we will actively focus on the principles of prevention and early intervention ensuring where possible support is offered within a person or families own community and in a manner that meets their specific needs. Service users have stated to us their preference to remain in their own homes for as long as possible and we are committed to assist them in achieving this. 13 5.4 Environment Services The service plays a leading role in keeping our streets and open spaces clean, attractive and safe, and to supporting sustainable lifestyles. Environment Services also assists in increasing opportunities to recycle and reduce the amount of waste produced and diverting waste from landfill. Les Goodfellow Head of Service Service overview In developing an effective business strategy for the next five years, Environment Services will be reshaped to meet the needs of residents, communities and businesses within the available resources. Environment Services aims to ensure that the Council’s built and natural assets are properly managed and maintained and that all available resources are focussed on maximising value-for-money. Environment Services is also committed to protecting and enhancing our assets and resources in a sustainable manner, which will minimise the impact of our activities and protect our natural assets for future generations. 14 5.5 Housing and Customer Services However, whether you are asking for a repair, worried about keeping your home or seeking to register the birth of a child you are entitled to expect an efficient and effective response that delivers on the commitments we have made. And this applies in exactly the same way whether you choose to phone us, call in at the Customer First shop or go on line. Over the next five years we will be working to improve access to all our services; to offer more opportunities to do business with us on line; improve access for those that prefer to speak to us face to face, or, if you chose to use the phone, to ensure that where ever possible you have to make a single call to get the service you need. Tony Cain Head of Service We will also be working with Police Scotland to improve our work to combat antisocial behaviour and improve community safety as well as ensuring that private landlords meet all their obligations to their tenants and the local community. Service overview Housing and Customer Service is a diverse portfolio including services to our tenants, the prevention of homelessness, planning to meet future housing needs, responding to antisocial behaviour, the regulation of private landlords, the Council’s main public contact points (phone, web and local offices) as well as our Registrars service, libraries and archives and our Advice Service. The common theme is that these activities are all focussed on customers and the quality of our response when people come to us for advice or assistance across all the Council’s services. Service to tenants funded from house rents aren't covered by the Priority Based Budgeting process. We have a separate but similar consultation exercise underway with our tenants. The results of this and the proposed rent rise will be reported to Council along with the other budget decisions. 15 5.6 Economy, Planning and Regulation Kevin Robertson Head of Service Service overview Over the next five years, Economy, Planning and Regulation Services will be re-shaped to better meet the needs of residents, communities, visitors and businesses within the Stirling area. The local economy is a key priority, and delivery of a broad range of support services to our local businesses has recently been integrated within Stirling Enterprise (STEP), to provide a single access point for advice, training, property, funding and management services. Building on the key objectives and aspirations of our refreshed economic strategy and action plan, we will continue to work in collaboration will our local business community to jointly develop, fund and implement projects and initiatives to promote diversification and sustainable growth of Stirling’s economy, thereby creating greater job opportunities. 2014 will be a catalyst for significant investment in the tourism product in Stirling. Through our tourism development strategy and action plan we will work with local businesses and providers to enhance the visitor experience and, in collaboration with Destination Stirling, will raise the profile and marketing of the city and surrounding area to encourage inward investment. Recognising that Stirling city centre is the key hub of our local economy, through collaboration with commerce and business, we will jointly support and deliver the economic, social and environmental improvements to our retail, hospitality and heritage provision. Through this, we aim to attract greater numbers of visitors and thereby increase economic benefits. This will be achieved through re-shaping the management and development of our city centre, led by the private sector. Stirling has a rich cultural heritage. Culture is an essential and visible expression of our local identity, and plays an important role in the well-being of our communities of Stirling through education, personal development, creativity and entertainment, and adds significant social and economic value to the area. We will develop and implement a partnership model for delivery of effective and valued cultural activities and venues that meets the wider social, educational, artistic and economic outcomes in a manner that is viable and sustainable. We will move the delivery of our regulatory services, including Environmental Health and Building Standards into joint-working arrangements with other partners to share expertise and achieve efficiencies, with a focus on customer service. We will also rationalise our service delivery where these are provided by other agencies or, private sector, to avoid duplication of effort and cost. 16 5.7 Assets and Support Service While the Council will need buildings from which to deliver services we will need less of them, and we will be working with other public sector agencies to establish how accommodation and facilities can be further shared in order to save costs. There is also likely to be growing interest from communities in the transfer of assets from the Council to community groups, which may be better placed to operate the properties and have sound business cases for doing so. This will help empower local communities and encourage enterprise, as well as helping to reduce Council costs. John Risk Head of Service Service overview For employees, the changes during the period of the business plan will provide great opportunities to learn new skills, and develop. At the same time, there will be change for the workforce. It is, therefore, vital that we work together with employees and their representatives to ensure better engagement and understanding so that we deliver the best possible outcomes for our citizens. The Assets and Support Service delivers a range of support services to the rest of the Council, including Property, ICT, HR, FM Cleaning and Catering Services. It also provides services direct to the public such as School Crossing Patrols, Community Centres and public conveniences. The way most services are delivered will change during the period of the business plan as the needs of the Council change and develop, and to improve efficiency. A key issue going forward will be how the Council ensures best value from its portfolio of properties and whether its strategy should be to reduce its portfolio of properties and realise the capital value for other investment purposes. 17 5.8 Governance and Resources Willie Watson Head of Service Service overview Governance and Resources supports other council services as well as the public through services such as housing benefit and council tax benefit and collection. As the services that the Council provides change in response to significant financial challenges, so too will the range and delivery methods of many of the Governance and Resources services. We will support services through customer requirements and to continue to deliver more efficiencies, while developing and improving. Harnessing the benefits of new technology and working more closely with partners will be important considerations. Together with other support services throughout the Council, there will be a need to examine and consider alternative service delivery models. Governance and Resources is integral to the work being undertaken on the development and implementation of PBB to set an agreed financial strategy and business plan for the next five years. This will be developed and embedded into future ways of working and engaging with stakeholders. A key issue is the impact of welfare reform. This has already been significant, with changes to council tax support, the new Scottish Welfare Fund, under -occupancy subsidy changes and Discretionary Housing Payments. There is still however much to do in preparation for further welfare reform changes over the next few years, including the migration of Housing Benefit to Universal Credit. The Revenues and Benefits service will be at the forefront of this, working closely with other council services and external partners. There are also a range of other statutory changes that will impact on service provision including the new EU Public Procurement Directive, the Procurement Reform Bill, The Local Authority Accounts (Scotland) Regulations 2013 and the implementation of revised risk and resilience structures with a wide range of partners. Implementation of these changes will need to support the new ways in which the council will deliver services in the future. A key aspect of the service is to support elected members in establishing and operating the new decision -making structure of the Council. Looking further ahead, there are significant elections in each of the next four years. Arrangements for the delivery of forthcoming elections (European and Independence Referendum in 2014, General Election in 2015, Scottish Parliament in 2016 and Local Government in 2017) will be required and the impact of policy changes on future service provision must be considered. 18 5.9 Chief Executive’s Office The Chief Executive’s Office provides support in a number of key areas: • The high-level strategic capacity to share some elements of the Chief Executive’s workload and to support the testing of proposals and ideas with Elected Members. • Support to Elected Members, in particular portfolio holders, to review standards and approaches to service delivery. • Support the delivery of the Council’s communication strategy to ensure that we reach and engage with employees, citizens, communities and partners. • Promote an approach that focuses on engagement and participation in the Council and with citizens, communities and partners, to support the delivery of more effective local outcomes. • Support the effective development and organisation of the community planning process and partnership, and the framework to support the delivery of the Single Outcome Agreement. • Promote collaboration across the organisation, with the Council Management Team, Elected Members and Community Planning Partners to ensure the co-ordination and alignment of strategic policy planning and outcomes. • Design and implement a range of initiatives, programmes and approaches to support the Council’s business needs, including the modernising and best value agendas. • Develop and implement effective performance and reporting measures with the aim of supporting the Council’s Business and Improvement Plans. Bob Jack Chief Executive Service overview Stirling Council aspires to be an efficient, effective and agile organisation. This requires arrangements and structures that support a collaborative, enabling approach to strategy, corporate development, service management and delivery. The Chief Executive’s Office will support an approach focused on delivering outcomes during a period of change and reduced resources. It will support the Council to help people and communities become more resilient and self reliant in achieving better local outcomes. We will also ensure that we have flexibility, the right skills mix and capacity for change, as well as continuing to improve the quality and impact of core service provision. 19 6. Financial plan 6.1 How we are funded The Council receives funding through a number of sources, which include: • General Revenue Grant from the Scottish Government • Non-Domestic Rate income levied on local businesses and other organisations • Council Tax income from local residential properties • Fess and Charges from a range of services where a direct charge is made at the point of use The split between the various main sources of funding is shown in the figure below. General revenue grant Non - domestic rates income Council tax tax Fees & charges 20 The figure shows the percentage of Council funding by source for 2014/15. For 2014/15 the Council aims to raise a total of £212 million from four main sources. The Council’s income from central government, including the non-domestic rates income that is levied nationally, equates to 76% of overall income. The remaining 24% is generated from local residents, visitors to our area and others who consume services within the Stirling Council area. 6.2 Assumptions The following assumptions have been made (and are by no means exhaustive) within the 5-year business plan. • The grant from central Government, which accounts for almost 80% of the Council’s funding, is likely to fall in cash terms from 2016/17 onwards. This is due to the UK Government’s intention to reduce the overall level of national borrowing over the coming years, and the consequent reduction on public spending that will be necessary to achieve that aim. The business plan has factored in an assumed cash grant reduction of 1% per year from year three onwards. General Revenue Grant & Non-Domestic Rates 2014/15 No change 2015/16 No change 2016/17 -1% 2017/18 -1% 2018/19 -1% • Council tax continues to be assumed frozen at 2013/14 levels for the duration of the 5-year planning period. This is in line with the Scottish Government’s policy of freezing tax since the financial year 2008/09. Should that policy change in future years, then this assumption could be revised. A small increase in the number of council tax properties is assumed of approximately 100 per annum. • It is assumed that the funding being made available to the Council for 2014/15 is in line with the settlement letter received from the Scottish Government in December 2013, which sets out the funding for 2014/15 only. Funding for subsequent years is based on assumptions that are derived from the UK Government’s economic strategy, as well as academic and practitioner analysis of the likely impact on public spending in the coming years. Spending reviews at UK and Scottish level are likely to have a bearing on these assumptions, and they will be adjusted as further information becomes available. • Pay awards have been built into the business plan at 1% per annum for all staff groups (teaching and non-teaching staff) for 2014/15, with an assumed rise of 2% per annum for the years 2015/16 to 2018/19. Pay awards are currently subject to a national bargaining and negotiating process, and progress on those discussions will inform future pay award assumptions. • Demographic changes in the population have been included within the model. • Additional cost pressures and reductions for additional waste disposal costs and landfill allowance / tax net impact is estimated based on current legislation. 21 • A cost increase has been factored in from 2016/17 relating to the increase in the employer’s national insurance contribution rate, resulting from the UK Government’s reform of the state second pension. This will result in the removal of the current rebate for those employers that opt out of the state second pension, as all Scottish councils do, and will result in an increase in the National Insurance bill of 3.4% from 2016/17 onwards. • The Council must provide for auto-enrolment of pensions and a provision of approximately £0.5 million has been made for this. • The Government plans to begin the roll out of the Welfare Reform Bill, which will potentially impact on the Council and a provision has been made for the estimated cost of this. • Provisions and specific allowances are captured within the model for items such as non-domestic rates, capital financing charges, utility bills etc. • A gross capital programme of approximately £15 million will be delivered in 2014/15 and, during that financial year, a fundamental review of capital investment needs will be carried out with a view to setting a revised programme for the following four-year period. • The Council has taken a risk-based approach to setting the 2014/15 budget such that a risk fund will be set to mitigate against future cost pressures which services will, in the first instance, be expected to try to meet before any call is made on the risk fund. • An average loans pool rate of approximately 5.2% has been used over the period of the business plan. Providing a future projection of the financial requirements of an organisation that provides wide-ranging public services, at a time of economic uncertainty within the Scottish, UK and world economies, requires a great deal of estimation. The business plan balances the fact that some of the key factors are uncertain at present against the need to take a responsible view of planning for what undoubtedly will be a very tough set of economic circumstances for councils. However, should any of the key economic assumptions change, the business plan will be updated accordingly. 22 6.3 Funding, spend and savings The Council’s expected funding, spending and savings, based on these assumptions, are: Funding Net Forecast Expenditure Surplus/(Deficit) Year 1 2014/15 £000 (201,720) 203,922 (2,202) Year 2 2015/16 £000 (201,909) 208,538 (6,630) Year 3 2016/17 £000 (200,553) 216,311 (15,759) Year 4 2017/18 £000 (199,214) 221,860 (22,647) Year 5 2018/19 £000 (197,891) 226,950 (29,060) Service options accepted: Education Services Social Services Environment Services Economy, Planning and Regulation Services Housing and Customer Services Assets and Support Governance and Resources Chief Executive’s Office Total Proposed Service Options Corporate Options Total Proposed Options 2014/15 £000 573 1,237 844 2015/16 £000 1,202 2,545 1,713 2016/17 £000 1,612 3,085 2,080 2017/18 £000 1,725 3,750 2,432 2018/19 £000 1,873 3,900 2,715 155 342 225 214 74 3,664 733 4,397 628 438 603 378 383 7,890 809 8,699 705 582 1,180 389 675 10,308 891 11,199 706 606 1,266 419 734 11,638 874 12,512 706 630 1,316 424 746 12,310 849 13,159 23 6.4 Risk-based approach: risk fund The Council operates a policy in the General Fund Revenue Budget of maintaining a level of reserves of at least 2% of budget, and preferably 2.5% of budget. In 2012/13 there were reserves of 3.4% of budget. With this in mind the Corporate Management Team has applied a risk-based method to the 2014/15 priority-based budget approach for future years. While some additional funding has been put in place within the base budget for 2014/15 and in subsequent years, there were still be other potential cost pressures. The Council will therefore create a risk fund to meet these potential cost pressures. The risk fund will be set aside from any service underspends or other contributions to reserves, but access to the funding will be subject to strict governance arrangements. 6.5 Sensitivity analysis The table below illustrates how the cost base would vary annually given a different set of assumptions: 2014/15 £000 (2,202) 2015/16 £000 (6,327) 2016/17 £000 (15,450) 2017/18 £000 (22,451) 2018/19 £000 (29,060) Improvement of 1% per year in grant assumption Grant assumption (2,202) 0% (4,727) +1% (12,250) 0% (17,651) 0% (22,660) 0% Deterioration of 1% per year in grant assumption Grant assumption (2,202) 0% (7,927) -1% (18,650) -2% (27,251) -2% (35,460) -2% Pay award assumption reduced by 1% (years 2-5) (2,202) (5,057) (12,881) (18,553) (23,802) 1% 1% 1% 1% 1% (2,202) 3.31% (5,669) 2% (14,347) 2% (21,067) 2% (27,394) 2% Base Position Pay award assumption Non-pay inflation assumption reduced to 2% per annum Non-pay inflation assumption Variations to other assumptions could be made, but the above would have the greatest impact on the overall financial scenario. 24 7. How will we measure our performance? 7.1 Outline of report 7.2 7.1.1 Public sector spending will be challenging for the foreseeable future. This means that the Council requires a more programmed approach to ensure that whilst savings must be made, prioritised, quality services continue to be delivered. 7.1.2 The Council’s Performance Management Framework needs to align with, and support, this new approach. 7.1.3 This report outlines details of the development of Council’s performance framework. The framework will be used to measure the Council’s performance and the impact of delivery of the business plan. The report is divided into the following sections: • What does the Council’s performance framework currently look like? • What do we want the Council performance framework to look like? • How do we get there? What does the council’s performance framework currently look like? 7.2.1 The Council’s current Performance Framework is based around 3 themes i) Planning and Prioritising ii) Reporting and Managing iii) Reviewing and Improving. Each of these themes can be considered to take place at a Community Planning Partnership Level, Stirling Council / Corporate Level and Service Level. Planning and Prioritising Community Planning Partnership Level 7.2.2 The Stirling SOA brings together the Stirling Community Planning Partners to agree a vision for the Stirling area that will make a difference to the lives of its citizens and communities. The SOA sets out the strategic priorities that need to be addressed to achieve this vision. Those priorities are expressed as outcomes to be delivered by the partners, both individually and jointly. These local outcomes also make a contribution to the Scottish Government’s national outcomes. 25 7.2.3 After workshops with communities, community-planning partners, equalities groups and joint workshops in 2012, a draft SOA was produced and submitted to the Scottish Government in April 2013. Following a period of consultation amongst Partners, Councillors and Community Members a final version has now been agreed. This Agreement will form the basis of Partnership working over the next decade. Stirling Council / Corporate Level 7.2.4 Council key priorities - Following the local elections in May 2012, Stirling’s new political leadership set out its key priorities for the next three years – ‘Serving Stirling’. 18 Key Priorities were subsequently identified. Service Level 7.2.5 At a Service Level the 18 Key Priorities are delivered through a set of Senior Management Objectives, which form the basis of service planning and prioritisation arrangements. Reporting and Managing Community Planning Partnership Level 7.2.6 The Community Planning Partnership Leadership Group has agreed governance arrangements and a new outline CPP structure to deliver the SOA. This includes: • A Leadership Group which carries out the functions of the CPP Board, leads the Partnership and is responsible for its effectiveness • A Partnership Group which is a wider reference group and provide a vehicle for wider advice, consultation, involvement and communication; some meetings are held as community conferences • Task Groups which are responsible to the Leadership Group for delivery of action plans for intervention and prevention areas; members of the Leadership Group act as strategic leads for each of these areas. Stirling Council/ Corporate Level 7.2.7 Stirling Council has established a set of decision-making committees who have responsibility for different areas of the Council’s work. These committees receive regular reports on the Council’s performance in its areas of responsibility, and its progress towards its key priorities. 7.2.8 The Council’s Annual Report provides an overview of progress and performance over the previous year. 26 7.2.9 Performance indicators have been established to enable monitoring of performance in relation to key areas of council activity. Performance reports are updated on a regular basis and performance information is available publicly via the Council website. Reviewing and Improving 7.3 7.2.10 A range of external scrutiny and audit and internal self-assessment processes are used to identify areas for improvement. 7.2.11 We aim to undertake an appropriate level of self-assessment that can give assurance both internally and to the various external scrutiny and inspection bodies that we are aware of the areas that we need to improve, and that we are taking effective steps to address these. What do we want the council’s performance framework to look like? 7.3.1 The Best Value Audit published in November 2011 stated that the Council should continue to develop performance management throughout the organisation to include reporting against outcomes, and service quality and value for money indicators. The agreement of the new SOA and PBB gives further impetus to developing the outcome focus of our performance framework. 7.3.2 Measuring public service value focuses both on the public investment in services and on the delivery of improved results for citizens and communities. Through the development and evaluation of meaningful and robust outcome measures we will demonstrate the impacts, benefits and consequences of the activities driven through the business plan. 7.3.3 Appendix 4 shows the updated framework. 27 8. How do we manage risks that might impact on the delivery of the business plan? The Council Risk Register contains strategic risks and is managed by the Council Management Team. The Council Management Team provides assurance through scrutiny and challenge at a senior level and ensures that the significant risks facing the Council have been identified and effective treatment actions implemented that reduce these risks to acceptable levels. It is maintained by the Resilience and Risk Manager and submitted to the Council Management Team, prior to Audit Committee, for discussion and monitoring. The Service Risk Registers contain operational risks and is managed by each Head of Service and Service Management Team. A copy of each Service Risk Register is submitted to the Resilience and Risk Manager quarterly, or when amendments are made. Significant risks can be escalated to the Council Risk Register. The Council Risk Register is reported to each Audit Committee (currently five times a year), which provides effective scrutiny and challenge as part of the Council’s corporate governance arrangements. The overall governance arrangements for risk management are shown in Appendix 5. . 28 APPENDIX 1 List of Community Planning Partners • NHS Forth Valley • Scottish Fire and Rescue Service: Stirling and Clackmannanshire Division • Police Scotland: Forth Valley Division • Stirlingshire Voluntary Enterprise • Forth Valley College • Scottish Government • TACTRAN • Loch Lomond and the Trossachs National Park • Scottish Environmental Protection Agency • Scottish Natural Heritage • University of Stirling • Skills Development Scotland • Jobcentre Plus • Scottish Enterprise • Historic Scotland 29 APPENDIX 2 Who are our customers/service users? A representation of many, but not all, of the Council’s customers/service users. 30 APPENDIX 2 Partnership Working A representation of many, but not all, of the Council’s partners. 31 APPENDIX 3 Education Service Portfolio Housing and Customer Services Portfolio • Housing and community safety • Children, Young People and Families Curriculum, Youth and Adult Learning • Homelessness • • Performance, Sports and Culture • Services to private homeowners • Libraries and Archives • Customer Service Social Services Portfolio • Children and Young People • Adults • Older People and rehabilitation Environment Services Portfolio Economy, Planning & Regulation Services Portfolio • Economy • Culture, Events and Tourism • City Centre Management • Planning • Building Standards • Fleet Management • Land Services • Licensing Roads Maintenance • Environmental Health • • Trading Standards • Roads Improvement and Development • Animal Health and Welfare • Business Support and Public Transport • Waste Services 32 Assets & Support Service Portfolio Governance and Resources Service Portfolio • Strategic Asset Management • Accounting • Facilities Management • Governance • Landlord Services • Revenues & Benefits • Office Services • Internal Audit Human Resources and Employee Development • Procurement • ICT Services • Risk and Resilience • • Emergency Planning • Administration Support Services • Business Continuity • Risk Management 33 APPENDIX 4 Stirling’s Performance Management Framework(REVISED) Planning & Prioritising Community Planning Partnership Level Single Outcome Agreement Long term outcomes for residents relating to quality of life and opportunities Stirling Council Corporate Level Stirling Council – Service Level Stirling Council Business Plan Strategic objectives and priorities covering delivery of: i) The council’s elements of the Single Outcome Agreement ii) The Council’s 18 Key Priorities from ‘Serving Stirling’ iii) Agreed Priority Based Budgeting projects Service Plans Service level priorities and actions activities that support the delivery of long term outcomes and strategic objectives Reporting & Managing Reviewing & Improving Single Outcome Agreement Progress Report Annual report on outcome indicators and progress made across the partnership Best Value 2 External audit focusing on the difference the council and its partners are making for local communities Council Annual Report Public facing report on progress towards strategic objectives as well as overall council performance including statutory performance indicators and key service standards Council Scorecard Key indicators reflecting progress on the strategic outcomes and priorities Corporate Scorecard Key indicators related to operational management of the organisation considered by Council Management Team Committee Scorecards Regular reporting on progress towards strategic and improvement priorities based around Senior Management Objectives Service Scorecards Service level scorecard used in management of Services Community Planning Partnership Self-Assessment Assessment of the partnerships strengths and area for improvement Corporate Self Assessment Internal review using the Public Service Improvement Framework (PSIF) Stirling Council Improvement Plan Three-year plan of improvement priorities reflecting the Assurance and Improvement plan compiled by the external inspection bodies and also the improvement actions arising from self-assessment activities. Service PSIF Self Assessments Inspections Audits Scrutiny Panels Service Improvement Plans 34 APPENDIX 5 Risk Management and Reporting Audit Committee Risk and Resilience Manager Council Management Team Council Risk Register Service Risk Registers Education Social Services Environment Economy, Planning and Regulation Housing and Customer Services Assets and Support Governance and Resources Chief Executives 35
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