Issue - meetings

To receive a report by the Head of Resources to provide an update on the Zero Based Budgeting process in preparation for the 2016/17 Budget and Medium Term Financial Strategy.

The Cabinet considered and commented on the progress of the ZBB programme to date and the Tranche 2 savings proposals noted in Appendix 1 of the Officer’s report. 

The Cabinet was provided with an update report (a copy of which is appended in the Minute Book) by the Head of Resources on the Zero Based Budgeting (ZBB) process in preparation for the 2016/17 Budget and Medium Term Financial Strategy (MTFS).

As part of the budget setting cycle for 2016/17, the Council was continuing with the ZBB exercise that commenced during the last financial year in preparation for the 2015/16 budget. The ZBB process was split into a number of Tranches, with Tranche 1 having been undertaken during the autumn of 2014 (in which £1.8m was removed from the Council’s 2015/16 budget) and Tranches 2 and 3 were being undertaken during 2015/16.

In preparation for 2016/17 budget setting, Tranche 2 commenced in April 2015 and concluded with a Cabinet led Star Chamber in mid-July 2015.  Tranche 3 commenced in August and the associated Star Chamber was scheduled for November 2015

In addition to the above ZBB reviews, other budget activity being undertaken included a:

•  series of ZBB ‘light’ reviews for those services that were ‘heavy’ reviewed during Tranche 1 in the last financial year; and

•  two cross-cutting ZBB review’s, namely administration support and design service.

The confirmed 2019/20 savings accumulated from Tranche 2 of the ZBB process included in the budget savings for 2016/17 was £1.372m.  In the absence of the Head of Resources, the Accountancy Manager explained that there was potential for a further £12,000 to be secured once a lean review was completed within the Licensing Service, which would give a total ZBB Tranche 2 saving of £1.384m. The conclusion of this review would be reported to the November 2015 Star Chamber and Cabinet thereafter.  The detailed service changes as a result of Tranche 2 were detailed in Appendix 1 of the Officer’s report.

The Cabinet agreed that the benchmarking information provided by Pixel Financial Consulting had been useful in the process as a comparison against other Authorities.

The Cabinet expressed appreciation to the Executive Councillors and Officers that had been involved in the ZBB process.

Having considered the comments of the Overview and Scrutiny Panel (Economic Well-Being) it was

RESOLVED

That the Cabinet considered and commented on the progress of the ZBB programme to date and the Tranche 2 savings proposals noted in Appendix 1 of the Officer’s report. 

To consider a report on Zero Based Budgeting, presented by the Head of Resources.

The Zero Based Budgeting (ZBB) Report was presented to the Panel by Jonathan Gray, the Executive Councillor for Resources.  Councillor Gray provided a brief background to explain the basics of ZBB to the Panel, informing Members that the process has been broken down into three different strands (Tranches).  By the conclusion of Trance 3 in November 2015, all services will have been subject to the detailed ZBB process. 

The Head of Resources, Clive Mason, referred the Panel to Appendix 1 of the report, which lists the projects that Heads of Service presented to the ‘Star Chamber’.  The Appendix lists a range of innovative projects such as:

·  Relocation of the Call Centre;

·  ‘One Stop Shop’ multi-agency customer service’ hub and

·  procurement of IT systems

The Panel were informed that Officers have endeavoured to create progressive plans to deliver savings. There is more work to do to identify savings but the Council is moving in the right direction.

The Chairman of the Panel took this opportunity to acknowledge that work completed, and congratulated those staff members involved for being part of the ZBB. 

Panel members queried the reductions in repairs and maintenance and were advised that these charges will now be payable by tenants as the additional charges currently in the terms and conditions, which should yield an income rather than a reduction in expenditure. The transformation work will deliver better outcomes for less money, making the Council more effective.

The Panel were informed that consultancy costs in Planning Services would be reduced through a wider range of expertise as a result of sharing services.