Agenda item

Cllr Wright handed over to Cllr Connor as Chair for Items 8 and 9 on Budget Scrutiny, as per Paragraph 7.4 of the Overview and Scrutiny procedure rules.

The Assistant Director of Transformation and Resources gave an update on Priority X to the Committee. The following points were noted:

a.    Priority X included a range of services across enabling functions such as the Shared Service Centre which included; Revenue and Benefits, Customer Services, Transformation and Resources, the Corporate Delivery Unit, IT and Libraries. Priority X also included the Chief Executive’s Office as well as the Communications team. The Committee was advised that the total budget for Priority X was £34.5 m.

b.    Over the last three years there had been an around 30% reduction the budget for the Shared Service Centre, with another 30% reduction being sought over the next 5 years.

c.    The majority of the savings agreed in Priority X for the MTFS period were agreed last year and the AD Transformation and Resources commented that this was reflected in the fact that there were only 3 savings put forward for 2018/19-2022/23.

d.    The Committee sought clarification on the progress received to date on the pre-agreed savings within Priority X. In response, Richard Grice advised that a detailed business case was being developed around the £3.2m savings within Shared Services and the additional £1m saving within Customer Services. It was anticipated that the business case would be available by the end of March. The AD Transformation and Resources advised the Committee that a lot of the savings within Priority X related to technology based investments and that they were seeking to bring about an increased level of online customer contact.

e.    In response to a question, the AD Transformation and Resources advised that the savings in relation to the Shared Service Centre and Customer Services from last year’s MTFS were on track, however given the size of the savings involved the Committee was advised that the risk rating was amber instead of green.

f.     In response to a request for clarification on potential staff losses, the Committee was advised that £3.2m saving in the Shared Service Centre equated to around 70 posts in 2019/20. However, the AD Transformation and Resources advised that it was not possible to give a robust assessment of the reduction in the number of posts as a significant proportion would likely be made up of contractors, as well as savings from the shared ICT service.

g.    In response to a request for further clarification, the Committee was advised that staff would be TUPE transferred to Camden as part of the shared ICT service and that they would remain on Haringey terms and conditions when transferred over, but would likely be integrated into Camden’s terms and conditions at a subsequent point in time. The Committee was advised that all ICT staff employed by Haringey on the last 18 months had been employed according to Camden’s terms and conditions of employment, in preparation for a transfer over of staff.

h.    In relation to the proposed saving from vacation of Alexandra House, the Committee was advised that a number of staff had been relocated to River Park House, however the building would not be vacated entirely as the Customer Service Centre would remain there.

i.      In response to a query around the future lease arrangements of Alexandra House, the AD Transformation and Resources advised that he was not sure of the exact details but that re-leasing of empty floors was permitted. The Committee was advised that the savings identified could not be realised until individual floors were re-leased to other organisations.

j.      In relation to the proposed saving related to the closure of the internal print service, the Committee queried whether the saving was contingent on reducing output of hard copies of agenda packs. In response, the Cabinet Member for Corporate resources advised that the saving was part a wider strategic shift towards digitalisation and that tablets were being trialled by some Councillors as part of a move to reduce paper usage. The Committee commented that, in principle, it welcomed a reduction in demand for paper copies of agenda packs and other committee papers.

k.    The Committee requested that further information be provided on the savings proposed within each area of the Shared Service Centre; the impact in 2019/20 on staffing posts as a result; and the capital costs. (Action: Richard Grice).

RESOLVED

That the Committee considered and provided recommendations to the 29^th January Overview and Scrutiny Committee, on the Medium Term Financial Strategy 2018/2019 to 2022/2023 and savings proposals relating to Priority X.