Meeting documents

CORPORATE PLAN

2003 - 2007

1 LIST OF CONTENTS 2

2 GLOSSARY 4

3 EXECUTIVE SUMMARY 5

3.1 Introduction 5

3.2 Improvement Priorities 5

3.3 Strategies for creating financial and organisational headroom and capacity to achieve this Plan 5

3.4 Risk and constraints 6

3.5 Financial Strategy and Financial Plan 6

3.6 Implementation Plan 7

3.7 Monitoring and review of the Corporate Plan 7

4 INTRODUCTION 8

5 NATIONAL, REGIONAL, LOCAL AND FUTURE ISSUES 8

5.1 National issues 8

5.2 The Community Strategy, regional and sub-regional issues 8

5.3 Local issues 9

5.4 Future issues 9

6 IMPROVEMENT PRIORITIES 10

6.1 Developing Improvement Priorities 10

6.2 Improvement Priorities 10

7 STRATEGIES FOR CREATING FINANCIAL AND ORGANISATIONAL HEADROOM AND CAPACITY 15

7.1 Organisational Improvement Actions 17

7.2 Risks and Constraints 17

7.3 Financial Strategy and Financial Plan 18

7.4 Implementation Plan 21

8 MONITORING AND REVIEW OF THE CORPORATE PLAN 21

8.1 Key performance indicators 21

8.2 Key targets for services 21

9 LIST OF APPENDICES 23

APPENDIX 1 - IMPROVEMENT PRIORITY PLANS 24

APPENDIX 2 - FINANCIAL PLAN COMMENTARY 40

Annexe 1 - Capital Planning 2005/06 & 2006/07 42

Annexe 2 - Revenue Financial Planning Targets 43

This document populates the Corporate Plan Framework (published and approved in November 2003) with the key actions and targets that need to be achieved to enable the Council to realise its Community Strategy, Improvement Priority, performance and financial objectives. The issues that informed the development of these actions and targets were well documented in the November framework and are not repeated in full here

(see http://intrasrv/intranet/committee_papers/Council/co031120/10zannex.htm).

The adoption of this, the Council's full Corporate Plan, is a result of merging the Framework document (approved November 2003) with this more detailed Plan. When Council approves this Plan in February 2004, it will be made available in summary format to allow effective communication of the Council's plans and Improvement Priorities to all employees in the organisation, the public and key partners.

In the framework document approved November 2003, Council agreed a set of eight "community-focussed" improvement priorities together with four "organisational" (or internal) ones. Improvement Priorities are those issues and consequent activities upon which the Council decides to focus its energy and resources, in order to ensure that overall Council objectives are achieved.

In developing the action plans, it was determined that it is unhelpful to distinguish between "community focussed" and "organisational" Improvement Priorities and so a single set of ten Improvement Priorities is now proposed. These are supported by an integrated set of organisational actions necessary to provide the capacity and infrastructure to ensure delivery and achievement of the Improvement Priorities. Section 6.2 is structured around this proposal.

The Improvement Priorities are:

B7 Increase availability of affordable housing

B7 Promoting the independence of older people

B7 Reducing the fear of crime

B7 Improving the environment for learning

B7 Improving the life chances for disadvantaged teenagers, through improvements to their education, training and support

B7 Improving the quality of public transport, roads and pavements and easing congestion

B7 Reducing landfill

B7 Improving the urban public realm (`liveability')

B7 Improve customer satisfaction

B7 Develop a sustainable economy for Bath and North East Somerset

The resources (e.g. money, time) needed to achieve the outcomes of the Improvement Priorities will not materialise by themselves. Through the Corporate Plan strategies have therefore been devised to create the financial and organisational headroom and capacity needed to ensure that resources can be directed towards its priorities. These strategies involve:

Successfully achieving these strategies will create headroom and capacity without significant reductions in service levels. Given the timescales available to develop and implement these strategies and the need to target resources most effectively, it should be recognised that it will also be necessary to consider the redirection of funding from other services, which may involve the diminution of service scope or standards.

The Council does not operate in isolation - neither is everything certain to go according to plan and it is important to recognise from the outset the risks and constraints upon this Plan. Each year the Council carries out risk assessments to identify key risks facing the Council and the actions needed to manage those risks.

The most recent risk assessment highlighted the following top three risks:

To manage these risks a number of mitigation actions and strategies have been implemented.

B7 Recognising inherent financial risks, the Council will continue to build balances over time to a level which matches its risk assessment (see 93risks and constraints94 above); active management of budgets will continue to ensure financial control and avoid budget pressures and overspending subverting the overall Corporate Plan.

Following the approval of the Corporate Plan Framework Document, a Financial Plan for the period 2004/05 - 2006/07 has been devised, based on the above financial strategy. This is detailed at section 7.

The Corporate Plan document of itself will not deliver improvement. To deliver improvement it is intended that the Plan will be developed and implemented through a series of phases extending to May 2007. These phases are detailed at section 7.4.

Key Performance Indicators (KPIs) will be used to ensure that any deviation from our plans to implement improvement priorities is highlighted so that prompt corrective action can be taken KPIs will supplement existing performance measurements so that priorities for action can be set. The Council's existing performance management framework has been recognised by external inspectors as an excellent system, and we intend to maintain this strength.

This document populates the Corporate Plan Framework (published and approved in November 2003) with the key actions and targets that need to be achieved to enable the Council to realise its Community Strategy, Improvement Priority, performance and financial objectives. The issues that informed the development of these actions and targets were well documented in the November framework and are not repeated in full here

(see http://intrasrv/intranet/committee_papers/Council/co031120/10zannex.htm).

Completing this, the Council's first Corporate Plan, marks the beginning of a new process which over time will link the Council's focus on priorities, services delivery, resource and finance plans together. Achieving this objective requires the Council to plan and do things differently. Significant progress in developing plans has been made in a very short space of time and lessons learned are being developed to improve processes for the annual review of the Corporate Plan, which begins in autumn 2004.

The purpose of reviewing the Corporate Plan is to take account of changing circumstances, ensuring that the targets in it are still appropriate and that resources are in place to deliver those targets. Service Plans and the annual Best Value Performance Plan will provide the detail of what is to be delivered year by year and the framework for monitoring performance will continue to develop.

The adoption of this, the Council's first Corporate Plan, is a result of merging the Framework document (approved November 2003) with this more detailed Plan. When Council approves this Plan in February 2004, it will be made available in summary format to allow effective communication of the Council's plans and Improvement Priorities to all employees in the organisation, the public and key partners.

The national issues identified as having an effect at local level highlighted in the Corporate Plan framework document such as perceived levels of crime, health services, decent affordable housing and transport issues (such as public transport and reducing levels of traffic congestion) are being addressed as part of specific improvement priority action plans. Broader issues which have an effect at national and local levels include sustainability issues such as climate change policies and legal regimes governing waste disposal.

Bath and North East Somerset's Community Strategy (Strategy) was approved by the Council and Local Strategic Partnership (LSP) in November 2003. The Strategy sets out a series of ambitions for the area over the next ten years, as well as a framework for how these can be delivered through partnership working. For each ambition, there is a series of indicators by which success can be measured, as well as a set of key early actions to unlock improvement. This Corporate Plan includes actions the Council intends to take to help deliver the Community Strategy over the coming four years.

The Strategy was developed through extensive consultation with local communities using an inclusive approach called "Be Better for Everyone". This involved a series of community road shows and other consultation events designed to encourage local communities to come forward with their views. Postcards and websites were also used to ensure there were plenty of opportunities for people to have their say.

The Community Strategy seeks to address key issues for the Bath and North East Somerset area, many of which can only be tackled through partnership working, often at sub-regional and regional levels. For example, the Corporate Plan Framework document approved in November 2003 identified house price to income ratios and skills levels as particular issues for this region. At a sub-regional level, Bath and North East Somerset has three structural issues - Housing, Transport and Skills shortage - which the Council does not have the capacity to resolve on its own. Improvement in these areas will require the Council to invest in partnership working with other organisations, local and national government agencies.

The Community Strategy identifies early actions which LSP members will contribute towards, in order to address these issues. Examples include, on the issue of affordable housing, LSP partners will facilitate the Health Key Workers Housing Partnership and support the National Housing Federation campaign to make the case for additional funding for affordable housing in the South West. Other actions include finding ways to improve recruitment and retention of staff and working to ensure a better understanding of the role of the Local Plan in promoting sustainable development.

The Council will work closely with partners to contribute to the ambitions contained in the Strategy. Actions include developing our Citizenship in Action project to link more closely with young people, reviewing and improving the accessibility of services to disabled people and the accessibility of information and services in community languages, including translation and interpretation services'.

In particular, the Council will focus on improving the effectiveness of its partnership working so that the Community Strategy's ambitions can be delivered and will work with others to establish effective key partnerships for Transport and Culture, encouraging partnerships to work together to promote the "liveability" agenda which includes tackling litter, graffiti and anti-social behaviour.

The Council's Improvement Priority and service plans detail further actions to contribute to resolving these issues.

Issues at local level that reflect national issues and which the authority can progress include concerns about community safety, facilities for youth, cleanliness of the environment, local industry, jobs and the consequences of an ageing population. Actions the Council will take in regards to these issues are detailed in Improvement Priority and service plans.

Future issues are those things the Council needs to be aware of in developing any long term plans. Many are documented in the Council's key plans and strategies and include the increasing focus on more joined up Health and Social Services provision, the future effects of the ageing population on the local economy, single status in employment and advances in technology and communications, environmental factors such as the issue of waste disposal, lack of available affordable housing and threats to the local economy from international disasters such as September 11^th.

The achievement of the Community Strategy and Improvement Priority action plans is expected over time to make a significant contribution to ensuring that future issues can be managed. Actions range from further joint working between the Councils own Social Services and the Primary Care Trust on health care services particularly for the more vulnerable people in our society, to using technology to improve access to services and increasing the availability of affordable housing. Other initiatives such as the development of the Waste Environment Park are all designed to mitigate the impact of issues already identified as possible threats to the economy and viability of Bath and North East Somerset.

Work to identify and plans to address future issues will continue to be a part of the activity that underpins the development of this Plan.

In the framework document approved November 2003, Council agreed a set of eight "community-focussed" improvement priorities together with four "organisational" (or internal) ones. Improvement Priorities are those issues and consequent activities upon which the Council decides to focus its energy and resources, in order to ensure that overall Council objectives are achieved.

Since November, proposed actions have been developed for each Improvement Priority, led in each case by a "sponsor" Executive Member and Director.

In developing the action plans, itwas determined that it is unhelpful to distinguish between "community focussed" and "organisational" Improvement Priorities and so a single set of ten Improvement Priorities is now proposed. These are supported by an integrated set of organisational actions necessary to provide the capacity and infrastructure to ensure delivery and achievement of the Improvement Priorities. Section 6.2 is structured around this proposal.

The development of the statedImprovement Priorities was informed by a number of sources including:

Sections 3 to 5 of the Corporate Plan Framework document approved by Council in November 2003 (http://intrasrv/intranet/committee_papers/Council/co031120/10zannex.htm) set out further background and context.

A consistent theme which needs to be noted and that is common throughout the detailed action plans, is that for the Council to be successful in achieving its Improvement Priorities, the Council must work in partnership with others.

Further information on the actions planned to be taken in regards to the Improvement Priorities is shown at Appendix 1.

For each Improvement Priority, the text below sets out the Council's goal for achievement by 2007, existing initiatives which are already realising improvement, further actions now planned and related initiatives from individual Service Plans. Summary financial information is also highlighted in the appendix.

An overall increase in the amount and range of affordable housing is a long term goal (10-20 years) requiring some large and far reaching decisions e.g. in relation to spatial planning, housing density and resource allocation. By 2007 we will have established and be working on an affordable housing strategy that will be complemented by an agreed Local Plan, which will enable the Council to identify proactively suitable residential sites and work with a range of partners to develop a variety of housing tenures. It is envisaged that in the lifetime of this Corporate Plan, actions undertaken will seek to minimise the growing gap between affordable housing and demand/need.

Initiatives already underway to achieve this improvement priority include completing a 6 year investment strategy to build 600 new homes by the end of 2005, a target of 30% minimum affordable housing as part of the Western Riverside project, work with Bath University and Bath Spa University College to manage student housing needs and work with the Local Strategic Partnership to develop key worker housing by bidding for additional funds at regional level.

Further actions we plan to take to achieve this improvement priority include developing an affordable housing strategy to optimise the potential for affordable housing in the area by setting out clear, agreed priorities for action and investment. Plans are being developed to optimise the use through the planning system of contributions to affordable housing from developers, by ensuring that affordable housing is a key feature within the Local Plan. The Council is also managing the development of additional extra-care affordable housing as part of its provision of three Community Resource Centres for older people, to achieve an increase in affordable housing options for older people.

By 2007 we are aiming jointly with the Primary Care Trust and other NHS Providers to deliver services in an integrated and timely way that will promote, retain or restore the maximum level of independence possible for individuals, with the least intervention necessary (i.e. the right service, in the right place, at the right time).

Initiatives already underway to achieve this improvement priority include improving speed of response in assessing the needs and provision of services to more vulnerable older people and joint working with the Primary Care Trust and voluntary sector partners to devise a whole system approach to older peoples care.

Further actions to achieve this improvement priority include helping more, older people, to remain in or return to their own homes following hospital admission by regaining and / or improving their independent living skills by reconfiguring the home care service. The Council will also work to ensure a flexible approach to transport to provide for the needs of older people encouraging greater use of public transport through provision of Dial-a-Ride schemes, concessionary fares and supported bus services.

Service plan developments that underpin this improvement priority include reducing the number of delayed discharges from acute beds attributable to Social Services by improving intermediate care services, providing an efficient single assessment process for older people and increasing the number of people in all client groups receiving a direct payment in lieu of services which will promote independence of older people through offering more choice and control.

Working closely with our partners in the Community Safety Partnership such as the Police, we aim by 2007 to increase public confidence and see a reduction in the fear of crime. This will be achieved by the Partnership improving and maintaining the public environment or `street scene', reducing the level of vehicle crime and burglaries and by working positively in a preventative way with young people to avoid their involvement in youth crime and disorder.

Initiatives already underway to achieve this improvement priority include implementing a vehicle crime action plan, Community Warden Scheme (which we will keep under review, together with police schemes), graffiti removal schemes, litter and cleansing enforcement, incremental change in the expansion of street lighting and support for voluntary organisations including Victim Support and Support against Racist Incidents (SARI).

Further actions to achieve this improvement priority include supporting a range of initiatives for people who may be more vulnerable to crime or fear of crime including older people, black and ethnic minority communities, disabled people and survivors of domestic abuse and develop and implement an anti social behaviour action plan to ensure a rapid response to incidents of anti social behaviour.

Service plan developments that underpin this improvement priority range from drawing up a management plan for Abbey Churchyard Bath in partnership with local stakeholders and providing a security presence at Parade Gardens, to introducing a Town Ranger scheme for Norton Radstock, enforcing litter fines and implementing Council responsibilities in regards to the new Licensing Act 2003, aimed at preventing crime and disorder, improving security in car parks, safe guarding public safety, preventing nuisance and protecting children from harm.

By 2007 we aim to have secured additional capital to invest in improving the quality of learning in classrooms and schools. This, together with more effective management of capital resources, will also enable us to meet our Schools' Asset Management Plan targets and ensure sufficient resources to successfully implement changes arising from area reviews.

Initiatives already underway include securing maximum capital available through Government initiatives - recent successes include Targeted Capital Grant and Teaching Environments for the Future, securing developer contributions through Section 106 agreements to reflect impact of housing provision on local schools and match funding the DfES Seed Challenge grant and give priority to school bids which are aimed at improving standards.

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Service plan developments that underpin this improvement priority include a joint review of primary school meals service as part of a Government initiative on health in schools and develop kiosk libraries which should result in wider participation and usage of library service aimed at pupils & adult education students and improve and modernise the provision of secondary education, by investing in school accommodation.

By 2007 we aim to ensure that no teenagers are without employment, education or training placement after the end of compulsory schooling. We also aim to increase school attendance rates, increase the numbers of children supported within schools without the need for a statement of special educational need, reduce the numbers of pupils leaving schools with no qualification and increase the performance at GCSE of pupils being looked after by the Local Authority.

Initiatives already underway include improving management and provision for Key Stage 3 & 4 pupils at the pupil referral unit, achieving the LEA's PSA target for raising secondary school attendance, a review of child protection practice and procedures within education and putting in place a strategy for future special school provision.

Further actions we will take to achieve this improvement priority include developing systems for monitoring the effectiveness of provision thereby improving performance management, improving information sharing on identified vulnerable individuals and raising the profile of vulnerable children.

The current levels of funding for Transportation will not make a discernable difference to the quality of roads, pavements or the development of real alternatives to improve access and tackle congestion. This situation has developed incrementally over many years and comprehensive solutions cannot be delivered in the short term.

Recognising this situation, by 2007 we will have in place a medium term, resourced plan to recover the maintenance backlog. The Council will also have completed a 20 year Vision for Transport which will identify local and sub-regional projects to deliver real alternatives that improve access and we will have started implementing the first five years of the plan.

Initiatives already underway to achieve this improvement priority include the procurement of a Strategic Transport Partner to work across all areas of transportation, bringing new approaches and perspectives, the implementation and monitoring of pilot community transport initiatives and the identification of Section 106 (Planning Conditions), where justified to improve the traffic network infrastructure.

Further actions we plan to take to achieve this improvement priority include procuring a Commercial Partner to develop over 20 years the Park and Ride Service and a Rapid Transit principal network and have completed a fundamental review of existing transportation revenue expenditure, including carrying out an analysis exercise to highlight needs for additional revenue that will deliver required outcomes.

Service plan developments that underpin this improvement priority include pursuing opportunities to utilise council vehicles on public service routes and increasing investment in public transport provision, bus subsidy & concessionary fares investment. Traffic congestion will be reduced by improving road safety, reducing the effects of traffic bottlenecks and looking at suitable longer term alternatives.

By 2007 we aim to have reduced waste to landfill from current 58,000 tonnes to 52,000 tonnes per annum by a combination of domestic waste reduction and recycling measures as part of the Council's Zero Waste Strategy.

Initiatives already underway include the development of an Environment Park, a new Waste Strategy incorporating Zero Waste and comprehensive door-to-door recycling collections.

Further actions we will take to achieve this improvement priority include a phased review of domestic waste collection regimes (methods and frequency), detailed planning and development for the transformation of Civic Amenity Sites to Recycling Centres and investment in continuing door to door collections for plastics, cardboard and composting to mitigate future Landfill Tax increases.

Service plan developments that underpin this improvement priority include recycling leaves from road sweepings, a campaign to extend consumer understanding of recycling issues and opportunities through the Change 21 Partnership and ensuring relevant partners are involved in the Community Strategy BE GREEN key partnership, which will engender a culture of responsibility for waste and recycling and various initiatives to reduce landfill.

By 2007 we aim to improve, in a tangible way, the quality of urban public realm in a considered, coherent and planned manner. In the first instance through targeted transformations of spaces and initiatives focussed on street scene improvements.

Initiatives already underway include development of a Public Realm Policy, new city centre governance arrangements to tackle cross-cutting issues such as a delivery regime for commercial vehicles, access and traffic flows in and around the core city centre and the development of the Western Riverside master plan and design policies.

Further actions we will take to achieve this improvement priority include encouraging Housing partners to focus on improvement of the public realm in the management of their estates, developing a coherent advertising regime in Bath city centre and investing in improvement projects that transform areas. The Council's objectives in improving the quality of the urban public realm in the Bath and North East Somerset area will be developed having regard to improving the social, economic and environmental value in areas, whether they are urban or rural.

Service plan developments that underpin this improvement priority include development of parks & green spaces through a strategic review of Open Space management, improved environment through provision and management of street furniture, improved footways and ensuring a co-ordinated approach to delivery improvements to the urban public realm.

By 2007 we aim to improve customer satisfaction through a number of initiatives such as integrated access channels to services (kiosks, service access shops, contact centre, mobile workers, web), which will mean customers are dealt with at their first point of contact with the Council. Information and services will be integrated, holistic and delivered with, by or for partners.

Initiatives already underway include a Customer Access Programme to co-ordinate and deliver projects such as kiosks on street, an HR improvement strategy which will deliver flexibility, skills and introduce workforce planning to make this possible, co-location of libraries with other services and increasing services available to customers electronically.

Further actions we will take to achieve this improvement priority include the delivery of an IT infrastructure that supports initiatives such as better telephone services, on line payments and on line booking facilities (both public facing and internal), paper archives changed to paperless via scanning and digitisation and an accommodation strategy which will reduce current reception areas and provide spaces for service access shops and a call centre.

Service plan initiatives which underpin this priority include developing single assessment processes for people needing care and/or housing services and integrating our services with those of other agencies. The Community Warden scheme will be developed to increase the range of queries and requests that can be dealt with on the spot. Generally we will improve the range of information available to our customers, and make it easier to access that information. The internet will be used to increase the numbers of services and facilities that can be accessed on-line from home PCs, on-street kiosks and/or PCs in Libraries and other public buildings. We will be implementing the Community Strategy and effective partnership working, encouraging partnerships to work together to promote the "liveability" agenda, including tackling litter, graffiti and anti-social behaviour.

(Previously Deliver improvements through project working)

The Council wishes to develop partnerships and drive projects to generate a sustainable economy with a more balanced mix of employment, in line with the Sustainable Economic Development Plan `Towards 2013'. Pursuing this as an improvement priority will have a significant impact on the full range of improvement priorities such as improving urban public realm, increasing affordable housing and improving traffic congestion. To pursue this long-term goal, the Council will provide the leadership and drive on a selected number of key development sites.

Towards 2013 contains actions to ensure a better balance and a reasonable span of employment opportunities across a variety of different business sectors, adequate access for the workforce needed to sustain this range of business and employment opportunities, and affordable housing for the future. This will make the area less reliant on its current income streams derived from the service and retail sectors and will ensure that Bath and North East Somerset has the flexibility to sustain impacts that could otherwise have an adverse effect, such as changes arising from world events or economic downturn. The strategy will be implemented in partnership with key organisations and businesses.

Developments need to be prioritised and managed carefully. The Council's objectives in regards to this priority are to facilitate and enable projects which will contribute to building a sustainable economy. Examples of how the Council will do this include partnering with good development partner(s), making investment as appropriate, supporting infrastructure development, ensuring that all developments the Council is involved with support the achievement of the Council's objectives and ensuring effective scrutiny of the management of major projects.

Within the period to 2007 the Council will focus its energy on the Western Riverside development which is key to achieving the objectives above.

An action plan to deliver this improvement priority will be developed with stakeholders and partners by the end of April 2004.

The resources (e.g. money, time) needed to achieve the outcomes of the Improvement Priorities will not materialise by themselves. Through the Corporate Plan strategies have therefore been devised to create the financial and organisational headroom and capacity needed to ensure that resources can be directed towards its priorities. These strategies involve:

The Council has for some time had targets of continuous improvement across all services and has negotiated a Public Service Agreement with central government that requires an overall improvement in cost-effectiveness. For the period to 2007 there are some key projects which are central to achieving greater cross-Council productivity as follows.

B7 Through the long-term office accommodation project the Council will work to get better value from its investment in office accommodation and internet technology by introducing some shared use of office space (via hot-desking), reducing the number of different office locations for archives by moving to electronic records where possible and introducing further flexible working initiatives. The Council Executive is due to agree its preferred location for a new office building at its February meeting, and commit to progressing the project with urgency.

B7 By implementing the agreed HR Strategy action plan, the Council will identify and make the changes needed to its workforce to deliver Council priorities and will develop increased flexibility in the deployment of staff and ways of working with partner organisations. The Council will use retraining and redeployment to reduce overall ancillary staffing costs of changing priorities.

B7 The Council will co-ordinate its work to attract external funding and maximise the impact of resources put into bidding processes, including those with partners. It will continue to 93invest to save94 in order to achieve sustainability for future years.

B7 Opportunities to reduce overhead costs will be explored through new approaches to procurement, sharing specialist resources between agencies and eliminating internal duplication of effort.

B7 New opportunities offered by the Local Government Act will be explored, for example the discretionary charging power. The option to remove existing Council Tax discounts on second homes has already been agreed by Council and will be implemented from April 2004.

All of the above require changes to organisational culture. The Council will invest in management and staff to develop the culture needed to manage change well and to deliver continuous improvements to efficiency and effectiveness. Current custom and practice in the way the Council works will be scrutinised to identify areas where new ways of doing things can free up staff resources without loss of service.

In addition to the above cross-Council initiatives, all Services will investigate ways to improve productivity. The Council's Service Planning process enables Services to focus on the changes needed to deliver the Council's Improvement Priorities within its financial constraints. It provides the means for Service Managers to work through with elected Members the detailed implications for services, including implications on resources - workforce, technology and property. Some specific examples detailed in service plans include:

B7 removing surplus spaces in schools, thereby releasing funds currently locked into fixed costs and potentially freeing up land for sale or alternative use.

B7 implementing new technology systems in Planning, to improve customer access to information, streamline the administration associated with planning applications, improve turnaround time and free up expensive storage space.

B7 the recent replacement of the financial management system and the current upgrade of personnel and payroll systems provide the opportunity for better management information and a significant reduction of manual input and re-keying of data.

In some services, the need to redirect resources may mean that previous levels of service cannot be maintained. The Council can not afford to do everything to the highest standard. The implications of any changes will be properly analysed through the Service Planning process prior to implementation of these projects. Service Plans for 2004/05 are available in an advanced draft form, and are available as background papers to this Corporate Plan. Following approval to this Plan and the Budget for 2004/05, Service Plans will be finalised and subject to approval by Executive Members via the Weekly Decision List in March/April 2004.

The Council aims to increase public awareness of and confidence in the Council and its various roles: Community Leadership, representation, policy development, decision-making, scrutiny and regulation. In order to achieve this, actions focusing on the development of the Council's organisational processes include:

B7 improved consultation with the public and market research to support strategic and operational decisions

B7 improved access to information, communications and training and development for councillors to improve councillors' performance, motivation and satisfaction

B7 developing an enhanced Community Leadership role for the Council as well as improved strategic planning and operational co-ordination. There will also be improved partnership working through the development of key partnerships for transport and culture, and the streamlining of existing partnerships.

B7 through the implementation of the HR strategy, use of workforce planning and management development to extend the skill base and adaptability of the workforce at all levels to meet corporate priorities effectively

B7 information technology will be optimised to improve services

B7 continue to develop our risk management and project management processes across the organisation

The Council does not operate in isolation - neither is everything certain to go according to plan and it is important to recognise from the outset the risks and constraints upon this Plan. Each year the Council carries out risk assessments to identify key risks facing the Council and the actions needed to manage those risks.

The most recent risk assessment highlighted the following top three risks:

To manage these risks a number of mitigation actions and strategies have been implemented as follows.

B7 Option appraisal, project and risk management

B7 Effective and integrated corporate, service and financial planning

In budgetary terms, the Council protects itself against risk through the holding of balances and reserves. The current target, based on risk assessment, is to hold around A37M revenue reserves plus A35M capital in reserves and high liquidity assets. As actual levels are below the target level, it is necessary to continue to build up balances and reserves over the period of the Corporate Plan.

B7 Recognising inherent financial risks, the Council will continue to build balances over time to a level which matches its risk assessment (see Risks and constraints in section 7.2 above). Active management of budgets will continue to ensure financial control thereby avoiding budget pressures and overspending from subverting the overall Corporate Plan.

Following the approval of the Corporate Plan Framework Document, a Financial Plan for the period 2004/05 - 2006/07 has been devised, based on the above financial strategy.

As a crucial element of the strategy is to create financial headroom - funds which can then be invested to pursue the Improvement Priorities - a framework of revenue financial planning targets has been set in order to generate headroom over the 3-year period. Once achieved, headroom can be allocated (likely to be in years 2 and 3 of this Plan) towards costed proposals which emerge through the service planning process and which demonstrate a significant contribution towards achieving the Improvement Priorities. This framework links finance and performance and service standard targets and is shown in the following table.

The application of Services to this framework is shown in Annexe 2 to Appendix 2. The application and the percentage changes will be reviewed annually in the light of changing circumstances.

The current draft financial plan incorporates the above revenue targets and can be summarised as follows:

Further detail on the proposed Financial Plan is shown in Appendix 2.

It should be noted that no allowance has yet been made within the Plan for the likely increase in employers' pension's contributions in 2005/06. This is a national issue and will affect all local authorities, with a potential impact of up to A33M. Given that there is considerable uncertainty regarding the precise financial impact of the revaluation and any extra funding from Government, it has been excluded. However, Members should be aware that it may impact either on headroom or on Council Tax. Further information will not be available until autumn 2004.

The table shows that if the Financial Plan targets are achieved, then there is sizeable financial headroom in 2005/06 and 2006/07 (A3800k and A31.6M respectively) but little in 2004/05, when the targets mainly achieve containment rather than headroom. In 2005/06 and 2006/07, therefore, there will be the opportunity to use headroom for investment in Improvement Priorities. Potential schemes will be developed during 2004/05 for consideration and approvals, as part of the annual Corporate Plan review and update process. It should also be noted that the Council is committed to finding more headroom than has been identified so far in order to fund improvements.

This however can only be the case if financial plan targets are fully achieved and all new pressures are contained. There is no contingency provided for 2005/06 and 2006/07 so any extra cost pressures and/or unachieved financial plan targets will eat directly into the projected headroom figures. Some 93leakage94 is therefore inevitable and extra effort will be needed to create additional headroom.

On capital, the Financial Plan is based upon:

B7 the relevant service Government capital guidelines (applies to Education, Housing and Transport) as in previous years

B7 additional earmarked Government and other 3^rd party capital grants and borrowing permissions

B7 existing financial plan allocations, subject to review.

In addition the draft financial plan assumes that around an additional A35M will be raised each year as unsupported borrowing under the new Prudential Code arrangements. As a broad planning guideline, it is intended that the A35M is allocated as follows.

B7 To assist in achieving the Improvement Priorities (cA32.5M pa)

B7 To create headroom through productivity improvement, notably through the Business Improvement Partnership with HBS but also possibly through other invest-to-save mechanisms (up to A31M pa)

B7 To assist the sustainability of the Council's key income streams (up to A31M pa)

B7 To assist the progress of the Council's major projects (around A30.5M pa)

B7 To provide sufficient contingency and protection against risk (min A30.5M pa)

Annexe 1 to Appendix 2 provides further indicative allocations within the 93improvement priority94 block above, showing minimum and maximum indicative allocations. These will be reviewed annually and allocations made within the Budget and Service Planning processes. In considering allocations, it will be important to weigh up the relative impact and value for money of spending on each of the key priorities. There are major capital spending needs on affordable housing, schools, transport as well as on major projects and other improvement priorities, and it is not possible to meet all needs fully. In achieving a balanced programme, the Plan does indicate a continuation, beyond 2004/05, of the level of annual investment in affordable housing currently being financed from the 1999 stock transfer receipt, at around A33M pa (total housing programme cA34M pa).

In providing the A35M unsupported borrowing, it is stressed that borrowing should not be seen as an easy option and it is required that:

B7 all proposals will be subject to rigorous justification and quantification of targets for outcomes (whether financial, performance or service outcomes). It is expected that the justification will take the form of a detailed business case

B7 all agreed schemes will need clear project plans, timescales and monitoring arrangements prior to commencement

B7 any invest-to-save allocations will result in automatic adjustments to the relevant revenue budgets. Invest-to-save schemes will need to demonstrate rates of return significantly in excess of the cost of borrowing (i.e. hurdle rates) in order to provide protection against risk. The current cost of borrowing within the overall Financial Plan is 9.5% pa (4% principal repayment and 5.5% interest);

B7 asset holding should be reviewed and challenged proactively to provide future capital receipts and minimise the need for Council borrowing, where those assets do not generate sufficient financial or service benefit.

The Corporate Plan of itself will not deliver improvement. To deliver improvement it is intended that the Plan will be developed and implemented through a series of phases. Phases 1 and 2 (which were set out in the Framework Document) are now largely complete, but development will continue, as follows.

Phase 2 (remainder) - to spring 2004

B7 Final sign-off of Service Plans. This work to include critical review of draft service plans by Executive Members, Directors and Heads of Service to ensure that plans and resources are fully aligned with the Corporate Plan - March 2004

B7 Identification of key targets for performance management arrangements

Phase 3 - Mar 04 to Feb 05

B7 Performance Management arrangements to ensure monitoring and review of Corporate Plan implemented

B7 Headroom strategies delivering initial savings

B7 Improvement Priorities being implemented - emphasis on low revenue cost quick wins and targeted capital investment

B7 Corporate Plan reviewed in light of year 1 progress

B7 Budget & Performance Indicator targets for all Improvement Priorities 2005/06 set

B7 Service planning further developed

Phase 4 - Mar 05 to May 07

B7 Headroom strategies delivering more savings, enabling revenue reinvestment

B7 Improvement Strategies developed to completion - revenue investment as well as capital

B7 Corporate Plan reviewed and updated annually in conjunction with annual Service Plans.

Key Performance Indicators (KPIs) will be used to ensure that any deviation from our plans to implement improvement priorities is highlighted so that prompt corrective action can be taken. KPIs will supplement existing performance measurements so that priorities for action can be set. Our existing performance management framework has been recognised by external inspectors as an excellent system, and we intend to maintain this strength.

KPIs have been in development since June 2003, when an initial set was selected by Directors in response to requests from Overview and Scrutiny panels. They will be developed by a combined Executive member and Officer Steering Group to ensure they reflect Council priorities as they change over time.

Other Performance indicators will continue to be monitored to ensure "business as usual" responds to community needs.

The detail of how these targets will be achieved is contained in service specific plans. The targets shown here are in addition to those set out in the rest of this plan.

Transport

B7 2* rating achieved and maintained with improving efficiency

B7 Planned improvement in PI's achieved

B7 Improved Community Satisfaction (relative to other Councils) to 2^nd quartile

Social Services

B7 Maintenance of 2* rating for overall service with improved efficiency

B7 Main area for improvement is Adult Services

Housing

B7 Achievement and maintenance of 2* rating for overall service with improved efficiency

Education

B7 Maintenance of 2* standard for overall service with improved efficiency

B7 Improvement in numbers continuing in Education/Training post 16

B7 Exclusion rates reduced

B7 Improvement in Post 16 education

B7 Improvement in fabric of school buildings

B7 Public Service Agreement targets delivered

Community safety

B7 Proposals for joint service/police working to address day-to-day community concerns

B7 Relative to other Councils, an improvement in the communities' perception of their safety.

Appendix 1 - Improvement Priority Plans

Appendix 2 - Financial Plan commentary

B7 Annexe 1 - Capital Planning 2005/06 & 2006/07

B7 Annexe 2 - Revised Financial Planning Targets

APPENDIX 1 - IMPROVEMENT PRIORITY PLANS

1. The draft financial plan is currently based on the following key planning assumptions:

2. The draft financial plan produces the following key outputs:

Capital allocations for 2004/05 are shown in the Budget report. The Financial Plan assumes that around an additional £2.5M pa is allocated to assist the Council in achieving its improvement priorities.

It should be noted that the following allocations are indicative only, and will be subject to annual review.

Minimum and maximum figures in the table below are expressed are annual amounts. In practice these could be averages over the two years. There is no presumption towards equal phasing. It should be noted that the total of maximum figures exceeds the total available for this block by approx 50%.