Annual Report 07/08: Value for money
What have we done in 2007/08 to improve Value for Money?
Re-engineered services to achieve consistently high levels of performance, quality and satisfaction
An example:
Development Control (Planning Services) - We took the opportunity to re-engineer this service following staff resignations; resulting in "flatter" structure with clearly defined responsibilities. The driver for this action was a clear vision to improve delivery and quality of the service provided in North Shropshire.
Supporting this re-structure, officers and members of the Development Control Committee have undergone specialist training to equip them with enhanced skills and knowledge necessary to make informed decision and improve their knowledge of this technical area of expertise.
The improvement in performance released increased Planning Delivery Grant from the Government (£500,000 over 2006/07 and 2007/08). This has enabled us to invest in a computer system which facilitates on-line access to planning and Building Regulation applications information via the Council's website; vastly improving customer access to the service.
The cost of providing the Development Control service has fallen from £250,000 in 2006/07 to £164,000 in 2007/08; alongside this saving, performance has improved. National indicators measuring the turnaround time for major planning applications has improved by 9.84% on 2006/07 (BVPi109a); minor planning applications (BVPi109b) by 7.31% and other applications (BVPi109c) by 4.01%. A further local measure; the percentage of major applications for inward investment (commercial) that are dealt with within 13 weeks, is 100%.
This is not an isolated case; every opportunity is taken to deliver services in a more cost effective way without compromising on quality. This is achieved by smaller scale re-structures, challenges and re-distribution of duties. Other service examples include, Leisure; Accountancy; Street Scene, Legal and Organisational Development.
Ensured that the acquisition of goods and services is carried out in accordance with the approved Procurement Strategy
During the year, our procurement service has re-negotiated various revenue contracts achieving cashable savings of £109,000, in addition, efficiency savings of £5,014 have been achieved by changing the process of operating vending machines in Edinburgh House and Whitchurch Swimming Centre. A further £2,414 has been achieved by re-negotiating clauses in existing contracts. The e-planning system was procured through the service in accordance with the procurement strategy adopted in 2007 which met stringent quality criteria at a competitive cost.
Compared performance and VFM with other organisations
The Council was the highest spending council on services per head in 2006/07. We publicly declared that our costs per head of service would reduce. This was reflected as a priority outcome in the refreshed Corporate Plan which was approved by members during 2007. The following analysis of our "nearest neighbours" reflects how our service costs per head of population have reduced:
Value for Money charts
Below you will find charts which measure the movement in costs against the movement in performance indicators that measure "performance", "quality" and "satisfaction." Using 2004/05 as the base year, the charts plot overall VFM performance over time on a percentage basis. Services are categorized into appropriate groups, e.g. all housing matters are included in the housing group.
The charts assist in a VFM assessment by demonstrating relative performance given the resources available.
Chart 1 - Overview
This chart gives an overview of all the groups to show the Council's overall position. It is demonstrated that there is increased investment in services but quality and performance are relatively higher than the investment made, therefore showing a positive outcome. Satisfaction however, is demonstrating almost a straight line and therefore requires further investigatory work. In response to this trend during the year, a satisfaction survey was commissioned to specifically target areas where baseline information was insufficient and for 2008/09 local performance indicators have been reviewed and the number of indicators measuring satisfaction has been increased.
Chart 2 - Feeling Safe
The performance indicators lend themselves to quality of life rather than performance and this demonstrates relative achievement over investment with crime in the district reducing significantly. This outcome is the result of a successful "Crime and Disorder Reduction Partnership" which includes members from the Police, the voluntary sector and other regulatory agencies. In the residents' survey of September 2007, 84% of residents said that they were satisfied with their local area as a place to live; this represents an increase from 77% in the previous year.
Chart 3 - Street Scene
There are a substantial number of performance indicators supporting this area. Relative investment is declining whilst all performance measures are improving. This outcome is reinforced by the outcome of the residents' survey where it was reported that 69% of residents were satisfied with the cleanliness of local streets and pavements (up 4%), 64% reported that they were satisfied with the cleanliness of footpaths (up 5%). 56% of residents were satisfied with the cleanliness of grass verges (up 5%) and 54% were satisfied with the cleanliness of hedgerows (up 4%).
Chart 4 - Waste Collection
Recognising that this is a high cost area for the Council, an action to achieve efficiency savings was put into place during the year. From 2006/07 to 2007/08 relative costs decreased. Performance was exceptionally good, whilst satisfaction improved on the previous year, quality remained relatively static. Overall satisfaction and quality measures fall below investment levels. There is therefore more work to be done in this area. Our residents' survey indicates that satisfaction with recycling is commendable, e.g. satisfaction with the green waste collection has hit an all time high of 81% compared to 73% in 2005. Our dry recyling initiatives are also well received as 79% registered their satisfaction which is the highest level recorded over the course of five surveys. Household waste satisfaction rose significantly from 59% in 2005 to 77% in 2006 however the latest survey shows this has fallen to 71%.
This area was removed from our Corporate Plan priorities as consultation undertaken earlier in the year revealed that residents would rather that the Council reduced its efforts in this service area.
Chart 5 - The Economy
Investment in this area for 2007/08 has been substantial; a partnership scheme at Tern Valley, Market Drayton will provide business units and our highly successful business grants initiative provides support to fledgling and other small businesses.
Local indicators introduced in 2005/06 illustrate that performance has improved and quality is relatively static. Performance improvements relate to the creation of additional jobs and business and initiatives for new businesses and training and education opportunities created through partnership working.
Chart 6 - Built Environment
As reported in re-engineering of services above, staffing restructures reduced the costs of service significantly during 2007/08. The chart reflects this reduction, together with a substantial improvement in performance and improvements in quality. Satisfaction is static as the indicators used achieved 100% in 2006/07 and 2007/08. This demonstrates a need to research and establish alternative satisfaction measures.
Chart 7 - Meeting Housing Needs
The costs of this area show a relative increase in 2005/06 which reflected investment in homelessness as a priority area and this level has increased marginally thereafter. Quality and performance indicators are improving although they remain below relative costs. Satisfaction is a relatively recent introduction and has achieved 100% and therefore is shown as a straight line.
The Audit Commission "toolkit" records our housing costs per head of population reducing over 2006/07 to 2007/08.
Chart 8 - Accessibility
This demonstrates that with the exception of 2007/08 when we invested significantly more in our concessionary fares scheme, costs overall since 2004/05 are reducing. This is profiled against a significant rise in quality and a marginal improvement in performance. Whilst our investment in concessionary fares in 2007/08 was largely discretionary, a new national scheme is now in operation which may require a review of the measures used.
Chart 9 - Leisure
The profile of the service is distorted by an insufficient number of indicators and a redirection of resources to this area from efficiency savings elsewhere to enhance two of the eight priorities. Additional local indicators have been established for 2008/09.
Chart 10 - Public Heath
Relative costs continue to reduce whilst performance has improved dramatically. There is also an improvement in quality though less marked. There have been no satisfaction indicators established at this time although 2008/09 satisfaction will be measured by new local indicators.
Chart 11 - Central Services
This chart reflects the reduction in costs during 2006/07 due to increased income from land charges and efficiency savings in Local Taxation. Costs are returned to their normal levels in 2007/08. Performance is rising steadily over the period and quality has improved following a dip in 2006/07. In recognition of the lack of satisfaction data, new local indicators for elections have been introduced for 2008/09.
Chart 12 Corporate Management
This chart reflects an increase in costs during 2006/07 which was mainly due to investment in corporate governance improvements. Costs during 2007/08 returned to normal levels. Performance has remained high but static since 2005/06 whilst quality has improved steadily. Satisfaction has followed an even course largely however below the cost line. On the basis of this, satisfaction indicators require review. This chart contains the investment required to bring this Council's CPA rating up to a "good".
Promoted prudent financial management and improved efficiency
Our business planning cycle is revised annually. It clearly sets out the process for setting, reviewing and implementing the Council's priorities which were set following public consultation and have strong links to corporate and partnership targets. The council has put in place a financial strategy which is linked to local and national priorities.
The financial strategy and individual service plans inform the budgetary process and following budget consultation on our "Worth the Tax" Tour the budget for 2007/08 was set based on realistic projections about pay, inflation, and known service and capital development plans.
The financing of expenditure is transparently explained in budget summaries and reports.
Detailed quarterly financial reviews are submitted to Cabinet and a scrutiny committee after consideration by the Corporate Management Team. This enables the redirection of unused budgets or efficiency savings to other priority areas. Since 2004/05 significant efficiency savings have been achieved. During 2007/08 these savings have been re-invested into the Council's priority areas to benefit local people.
During the recent CPA review, the Audit Commission reported that the Council "is well-run financially and has secured a strong financial standing which has enabled it to set Council Tax increases at two and a half percent for the last two years."
Developed partnerships to create greater capacity and commitment to shared goals
The Council is committed to engaging with partners that share a common vision; indeed our partnership arrangements are key to the delivery of the Corporate Plan priorities. Our principal partners are:
- Shropshire Waste Partnership - this partnership agrees, controls and monitors waste collection activities / aspirations throughout Shropshire for the next 27 years; enables economies of scale and the ability to meet future sustainability requirements that are prohibitively costly for a single council to deliver.
- North Shropshire Partnership - following a scoping day, the responsibilities and remit of specific delivery groups were re-defined in accordance with the Community Strategy and Corporate Plan priorities. Feedback on achievement and performance on meeting community aspirations is reported to the meetings. This is an efficient and effective mechanism for delivering outcomes for local people by co-ordinating public sector, private sector and voluntary sector organizations. The Council has accessed grant funding (Childrens Fund etc.) via the Young People Delivery Group to deliver enhanced activity for North Shropshire Children and Young People, for example the play area at Manor Place, Prees. Equally, close working relationships with the voluntary sector element of the NSP, has resulted in a successful "Big Lottery" bid which will fund numerous activities across the district and is currently funding a three year Play Co-ordinator based at the Council.
- Merseyside Fire and Rescue Service - this partnership has enabled improvements to the Council's procurement arrangements which have contributed to efficiency savings by the Council learning from the "Best in Class"
- Crime and Disorder Reduction Partnership - working alongside the NSP, the delivery group on CDRP is strengthening partners' common vision to reduce crime and disorder throughout the district (30% lower than it was four years ago). The Council's financial contribution to this partnership demonstrates exceptional value for money given the outcomes of the partnership relative to the funding provided. There has been a 30% decrease in crime and disorder in the North Shropshire area since 2005.
- Advantage West Midlands - using match funding from the Council, the partnership with AWM and other organisations has provided numerous economic development schemes, currently arrangements are in place to deliver a market towns programme in Ellesmere and further development at Tern Valley Business Park, Market Drayton. These more recent schemes, together with various schemes delivered in past years demonstrate the support that the AWM has for the Council's aspirations.
