Agenda item

This is a verbal update from the Director of Finance on the Budget, which was deferred from the last meeting.

Jess Crowe discussed the Savings Tracker and digital transformation during the meeting. She explained that the savings related to digital transformation had been reprofiled and allocated to individual directorates to encourage engagement and ownership of the savings targets. Specifically, she mentioned a saving of £145,000 related to the replacement of the Respond system, which is used to manage member inquiries, complaints, and Freedom of Information requests.

She noted that the current Respond system which was used to manage member inquiries, complaints, and Freedom of Information requests was outdated and inefficient. The plan was to replace it with a new system that is not only cheaper but also offers better automation for various processes. She acknowledged that the implementation of this saving had slipped but expressed confidence that it would be delivered in the subsequent financial year, thanks to mitigations being identified in other systems used by her directorate. Overall, she emphasized the importance of a structured approach to digital transformation, which includes developing a roadmap for each directorate to ensure that savings are achievable and that there is accountability for delivering those savings. There would be an all-member briefing organized to discuss the digital transformation and changes within the digital service. This briefing would provide an opportunity for all councillors to ask questions and learn more about the new approach to digital services, including the plans for replacing the Respond system.
The briefing aimed to ensure that members were informed about the digital transformation efforts and the improvements being made to enhance service delivery and efficiency. Jess emphasized the importance of this communication to keep all members updated and engaged in the digital transformation process.

Contracts review –

During the discussion on the contracts review, it was noted that there was a target of £250,000 in savings, but this was marked as a red risk in the savings tracker. Taryn explained that this saving was initially included in the budget without a clear plan for how it would be delivered. As a result, it was determined that the saving would not be achieved this year.

Taryn indicated that the approach taken for this saving was similar to that of the digital transformation savings, where the responsibility for delivering the savings was expected to be passed on to various directorates based on their contract spending. However, since the directorates were already struggling to meet their own savings targets, Taryn decided to look for alternative savings within her own directorate instead.

The discussion highlighted the need for a more structured approach to managing contracts and identifying savings, as well as the importance of ensuring that any savings targets set are realistic and achievable. The red status indicated that the saving was unlikely to be delivered, and Taryn planned to incorporate this shortfall into the overall budget gap for the upcoming year.

Open banking –

The discussion on open banking being marked as a red risk indicated that the projected saving of £300,000 related to open banking was deemed unachievable. Taryn explained that this saving was based on the expectation of reducing bank charges by shifting to open banking methods for payments, which would not incur the same fees as traditional card payments. However, after reviewing the current situation, it was found that the level of bank charges was not as high as anticipated when the saving was initially proposed. As a result, Taryn stated that the saving could not be realized in its current form. She emphasized the importance of being honest about this situation rather than continuing to carry it forward as a target that could not be met.

Taryn mentioned that she would need to find alternative savings to offset the £300,000 shortfall created by this unachievable saving. The discussion highlighted the need for realistic assessments of savings proposals and the importance of identifying viable alternatives to ensure the budget remains balanced.

Recommendation – the committee acknowledged and noted that this would not be achievable.

Additional commercial advertising opportunities and covert static advertising to digital –

During the discussion on advertising target savings, it was noted that there were two specific savings targets related to advertising: one for additional commercial advertising opportunities and another for moving advertising to digital platforms. Both of these targets were marked as red risks.

The initial savings targets were considered optimistic and had not been met. The advertising income from these initiatives had not materialized as expected, primarily due to challenges in identifying viable opportunities and generating the anticipated revenue. To address this, the team had commissioned a piece of work to look at income generation across the council in a more coordinated manner. Instead of individual services working in isolation to meet their advertising income targets, the plan was to consolidate efforts and explore advertising opportunities across various departments and assets of the council.

The discussion emphasized the need for a more strategic approach to advertising income generation, recognizing that simply expanding existing advertising arrangements might not be sufficient. The aim was to develop a comprehensive strategy that would allow for better utilization of council assets for advertising purposes, ultimately leading to more sustainable income generation in the future. One specific example raised was that to improve income generation for libraries, it was necessary to improve the booking system.

The mitigations that the team were trying to put in place to manage the overspend was looking at staffing and reducing the number of agency staff.

Recommendation – mitigations in the term of trying to find the money from that position rather than the actual savings that have been identified in the report.

CE SNR savings –

This referred to the restructure that the Chief Executive had been carrying out, there had been a consultation to make permanent savings and changes to senior management. That consultation is now closed, and the restructure would go ahead as proposed.

Recommendation – The committee understood that this would be reprofiled, there would be different descriptions of the savings and that would be around the different posts. An Iteration of this would be done for the next tracker.

Application and infrastructure review –

The team had been doing a piece of work with an organisation called Gartner, who provided advice on benchmarking and looked at contracts. The team were confident that they would meet that savings target. This was projected to be delivered but hadn’t been realised yet.

Recommendation - Note that it is amber and heard the plans are in place for this to materialise.

Reduce library opening hours –

During the discussion on reducing library opening hours, it was noted that there was a target saving of £675,000 associated with this proposal. However, the projection indicated that only £175,000 would be delivered, resulting in a shortfall of £500,000. Jess explained that the saving was intended to come from reducing the hours that libraries were open, which would subsequently lower staffing costs. However, the implementation of this saving had faced delays due to the need for staff consultations and the restructuring process.

Despite the shortfall, it was mentioned that the library service had been able to mitigate some of the financial pressure by holding vacancies and managing staffing levels more effectively. The representative expressed confidence that the restructuring would allow for the delivery of the full savings in the following financial year. Additionally, it was highlighted that the decision to reduce opening hours was part of a broader strategy to ensure the sustainability of library services while still providing access to the community. The conversation emphasized the importance of balancing cost savings with the need to maintain service quality and accessibility for library users.

Replace 3 PO3 team leader posts with two PO5 posts –

During the discussion on reducing PO3 roles, it was mentioned that this was part of a broader effort to achieve savings within the organization. The representative explained that the reduction of these roles was linked to the restructuring process aimed at streamlining operations and improving efficiency.

The conversation highlighted that the decision to reduce PO3 roles was made in the context of needing to manage budget constraints while still ensuring that essential services could be delivered effectively. It was emphasized that the restructuring would involve careful consideration of how to maintain service levels despite the reduction in staffing. Jess also noted that the impact of these reductions would be monitored closely to ensure that any potential negative effects on service delivery were addressed promptly. Overall, the focus was on achieving necessary savings while still prioritizing the quality of services provided to the community.

Events income increases –

During the discussion on events income increases, it was noted that there was an effort to generate additional income from events held in the parks, particularly outside of Finsbury Park. The goal was to diversify the types of events and activities offered in various parks to attract more visitors and generate revenue. It was mentioned that a new Parks Events Officer had been recruited to help facilitate this initiative and to develop a program of events that could be held in the parks. The focus was on creating smaller community events that would not only enhance the use of the parks but also provide opportunities for local engagement.

Officers acknowledged that Finsbury Park had been the primary focus for events due to its popularity and transport links, but there was a desire to promote other parks as well. The strategy included working with local community groups and the Friends of the Parks to ensure that events were well-received and aligned with community interests. Overall, the discussion highlighted the importance of increasing events income as a way to support the parks financially while also enhancing community involvement and enjoyment of the green spaces

Finsbury Park Income –

During the discussion on events income increases, it was noted that there was an effort to generate additional income from events held in the parks, particularly outside of Finsbury Park. Officers explained that the goal was to diversify the types of events and activities offered in various parks to attract more visitors and generate revenue. It was mentioned that a new Parks Events Officer had been recruited to help facilitate this initiative and to develop a program of events that could be held in the parks. The focus was on creating smaller community events that would not only enhance the use of the parks but also provide opportunities for local engagement.

Officers acknowledged that Finsbury Park had been the primary focus for events due to its popularity and transport links, but there was a desire to promote other parks as well. The strategy included working with local community groups and the Friends of the Parks to ensure that events were well-received and aligned with community interests. Overall, the discussion highlighted the importance of increasing events income as a way to support the parks financially while also enhancing community involvement and enjoyment of the green spaces

Customer service and library service review –

During the discussion on the customer service and library service review, it was noted that this was a historic saving that had been included in the budget for a couple of years. The savings were related to a small team that supported service improvement work in customer services and were intended to be achieved through a minor management restructure. Officers explained that the library service had successfully delivered its part of the savings by integrating the home library service into the main library management structure, which streamlined operations and reduced costs. However, the customer service aspect of the savings had not yet been fully realized.

It was indicated that the two savings targets were somewhat intertwined because they were originally part of the same directorate. The representative acknowledged that while the library savings were on track, the customer service savings were still pending and would require further updates from the customer services team. Overall, the discussion highlighted the need for ongoing monitoring and management of these savings to ensure that both the library and customer service areas could meet their financial targets while continuing to provide quality services to the community.

Additional library income opportunities –

During the discussion on additional library income opportunities, it was noted that the library service was exploring various ways to generate more revenue. The focus was on leveraging the improvements made to library facilities and services to attract more users and increase income. The library service had identified potential income streams, such as renting out spaces for events or activities, offering paid workshops, and enhancing the marketing of existing services. The aim was to maximize the use of library resources and facilities to create additional income without compromising the accessibility and quality of services provided to the community.

It was also highlighted that the library service had been proactive in holding discussions with staff and stakeholders to gather ideas and feedback on how to effectively implement these income-generating strategies. The representative expressed optimism about the potential for increased income through these initiatives, which would help support the library’s operational costs and contribute to its sustainability. Overall, the conversation underscored the importance of innovation and community engagement in identifying and capitalizing on additional income opportunities within the library service.

New river –

During the discussion on New River Sports and Leisure, officers mentioned that there had been a focus on generating income through various initiatives at the facility. The conversation highlighted that the centre had been successful in increasing participation and diversifying its offerings, which contributed to a net cost reduction of £53,000.

Officers explained that part of the income generation strategy included improvements in energy efficiency, such as switching to LED lighting, which would help reduce operational costs. Additionally, they emphasized the importance of maximizing the use of the facility to attract more visitors and events. The overall message was one of optimism regarding the potential for continued income generation at New River Sports and Leisure, with plans to further enhance the facility’s offerings and improve its financial performance in the coming years. Officers expressed confidence that these efforts would contribute positively to the budget and help meet the council’s financial targets.