Agenda item

As detailed in the recommendations.

Councillor Johnson introduced the report which sought approval for i) the criteria for selecting transformation projects; ii) the democratic governance structure for the transformation programme; and iii) endorses the allocation of reserves to fund the additional capacity required to support the programme.

The Council has a duty to set a legal and balanced budget each year.  That annual cycle has meant that the Council tends to focus its attention on making savings that can be achieved within a short timescale.  There were potential savings that the council could explore which would not deliver inside the usual annual budget cycle.  Such savings would typically involve looking at either larger scale projects such as a shared/collaborative service arrangement with another council or would involve redesigning internal working processes (probably aligned to a change of software).  Such changes were typically referred to as transformational.

The Council needs to set up a programme to explore such transformational changes if it is to reduce costs without reducing/stopping services.  The governance of such a programme could be fitted within existing reporting structures in the Council.  The capacity required to explore and manage a parallel programme of savings did not exist within the council at the present and would need to be recruited, probably temporarily, on an invest to save basis.

            Councillor Johnson outlined the feedback from the Corporate Resources Overview & Scrutiny Committee, which supported the need for a transformational programme but was concerned around the costs associated with staffing.  The Committee agreed to the first year costs but would review and scrutinise progress prior to any further expenditure being agreed. 

            The Chief Officer (Governance) outlined the governance structure, as shown at Appendix 1 of the report and the role of the Corporate Resources Overview & Scrutiny Committee, with the Committee fulfilling a collating role where it would bring together the results of such recommendations made by Overview & Scrutiny/decisions by Cabinet to assess their impact on the Council’s ability to fulfil its MTFS.  It would not be a forum for taking a second look at the detail of proposals which were properly the remit of another Overview & Scrutiny Committee but would be focussed on the effect or impact of the work on the overall programme.

            The Chief Officer also addressed the comments/concerns made by the Corporate Resources Overview & Scrutiny Committee around financial resources. 

            The Leader thanked Councillor Richard Jones, Chair of the Corporate Resources Overview & Scrutiny Committee for his input in the development of the Transformation Programme. 

            Councillor Bithell asked how the budget gap figures outlined within the report for 2026/27 and 2027/28 had been calculated.  The Corporate Finance Manager explained that these were initial assumptions based on current known cost pressures to the Council, if a ‘cash flat’ settlement was provided by Welsh Government. 

RESOLVED:

That Cabinet approves the:-

1. Criteria for selecting transformation projects;
2. Democratic governance structure for the transformation programme, and
3. Endorses the allocation of reserves to fund the additional capacity required to support the programme.