Document 6488320

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
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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.
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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.
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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
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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.
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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.
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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.
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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
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•
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.
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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)
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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•
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