Agenda item

Report of The Town Clerk & Chief Executive and The Chamberlain.

The Sub-Committee received a Joint Report of the Town Clerk and the Chamberlain concerning the Target Operating Model “flightpath” savings.

After the Chamberlain provided an overview, there followed a discussion and several points were made.

In response to a query, the Chamberlain, whilst recognising the initial TOM costs of £6.6m, stressed that this was a one-off sum; the key focus will be on scoping out the permanent savings as part of our delivering on the 12% overall target; achieving this savings target (approx. £15m per annum) is vital to set the Corporation’s finances on a long term sustainable footing.   

The Chamberlain informed Members that the Fundamental Review savings was separate to the 12% savings target.

The Deputy Chairman remarked that the TOM work was core for the Sub-Committee over the upcoming year.

He added that the presentation in the Report could be sharper for future iterations; for instance, a barometer would be a useful illustrative device to indicate progress achieved and what still needs to be done.

Given that the savings targets have, ultimately, been set by the Town Clerk, the Deputy Chairman requested that the Town Clerk or a senior representative from the Town Clerk’s team (e.g. the COO) be invited to attend future meetings of the Efficiency & Performance Sub-Committee when TOM related papers are considered. The Chairman asked the Committee clerk to liaise with the Town Clerk on this point.

In response to a query, the Chamberlain confirmed that officer-to-officer accountability was robust. Departmental proposals went through the (the officer composed) Design Authority Board, the Chamberlain held regular meetings on progress with Chief Officers (and their senior teams) and the respective departmental Heads of Finance (and information was shared in a timely manner); in addition, the newly established Executive Board would be examining the departmental financial information as a part of their regular broad overview of the City’s finances.

In response to a query, the Chamberlain stressed that achieving the savings would need careful consideration; for instance, top slicing could, ultimately, result in increases to the cost base for several departments. Fundamentally, we needed to adopt a nuanced approach that took account of the differing pressures across different departments. It was also vital to not fall into the trap of cost shunting.

The Chamberlain and the Chairman reiterated that the Efficiency & Performance Sub-Committee and the Resource Allocation Sub-Committee had major roles to play in ensuring Members were aware and involved in this process over the coming year.

The Chairman thanked Members for their very useful contributions and looked forward to future updates on this critical area.  

RESOLVED – that the Sub-Committee noted the Report.