LGA Conference29 June 2011

Protecting front line services by developing new models of service delivery

Cllr Tony ArbourCabinet Member for Performance LB Richmond upon Thames

Background

Small London borough – 1800 employees Net revenue expenditure £146m and high third party payments -

£90m Lowest Formula Grant per head in London at £157.70 - just under

80% of Council’s revenue spending is paid for through Council Tax Budget gap of £33m Back office reductions and marginal savings from individual

services already been exploited and set to achieve £20m New administration in may 2010 looking for both efficiency and

transformation to achieve both additional savings needed and a long term solution to quality services

The first year

No increase in Council Tax Efficiency Programme on track to deliver £20m

efficiency savings Tighter planning policies - Development Plan

Document will be examined in public May 2011 New fair parking policy 13,500 responses to All in One survey and a

new approach community engagement through Village Planning

Education policy review

All in One – A new relationship with residents

‘the people who pay should be the ones who have a say’

13,500 residents responded to a borough wide survey in November 2010 to find out about local priorities

6,000 wanted more involvement Village planning events to explore how to work with

communities to make areas better Not just a survey – this is about enabling residents to

input into decision-making and encourage people to take action themselves

Impact for services – prioritising what the council does, what residents might do, including different services in different villages

Efficiency and transformation

Three phases Summer 2009 – improving back office processes –

financial management, procurement, administration Summer 2010 – Zero Based Budget Review 2011 - Service Transformation – a radical look at all

services to find savings and new ways of delivering to support the Council’s vision of becoming a commissioning council

Outcomes so far Planned savings of £20m pa from leaving gap still of

£13m Centralisation of financial management, procurement,

administration, customer services – web and contact centre

Service transformation

Process of service reviews asking two fundamental questions: What’s the need for the service, from us or at all? What are the options for alternative delivery

vehicles? Each service has been identified for review based on

potential for savings, customer impact, opportunity for delivery transformation

In practice we are looking at a establishing new ways of delivery – Trusts, ALMOs and trading companies alongside a new wave of procurement activity

A joint Children’s Service with LB Kingston Shared Legal, HR and Audit

The commissioning model

Alongside the review of services, we are designing a new Council based not on service delivery but on:

Providing public services through partnership and collaboration to commission the services that meet local community needs.

Building community capacity to enable residents and communities to take greater control over their lives and to shape, and where appropriate deliver, local services.

Acting primarily effective community leadership, transforming local as a strategic commissioning body with a reduced role in service delivery.

The commissioning model – what the future council will do

Governance – supporting members and decision-making

Local Leadership – galvanising the efforts of local partners

Community capacity building – enabling residents to shape and deliver services

Strategic resource management – getting best value for our money

Commissioning – assessing need for, specifying and procuring services

Customer/citizen engagement – involving services users in the deign and delivery of services

There is a lot of detail to shape…

Engaging with residents - To what extent do we want to providers to be responsible dealing directly with customers?

Co-ordinating the big picture and getting the best from service providers - How we will manage our information so that we provide joined up coherent services and are able to commission and manage contracts effectively.

Maximising savings and social benefit – and particularly being able to specify for social benefit

Making our own systems and estate work – With fewer staff and services to run, understanding the impact on support services such as HR, IT.

The next year

Implementation of existing efficiency programmes Delivering service transformation programme and

designing the commissioning council Making the All in One live through the development and

implementation of Village Plans

And at the same time… Maintaining delivery of quality services Specific service challenges Maintaining staff morale