Manchester City Council Report for Resolution. Budget Proposals for the Corporate Core (Chief Executive s and Corporate Services)

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1 Manchester City Council Report for Resolution Report to: Executive 23 January 2013 Subject: Report of: Proposals for the Corporate Core (Chief Executive s and Corporate Services) The Chief Executive, the Deputy Chief Executive, the City Treasurer, and the City Solicitor Summary This report provides Members with information on the proposed changes to the Corporate Core as part of the proposals for the budget and Medium Term Financial Plan. This report forms part of a suite of reports to the Executive and Scrutiny Committees for consideration in reaching decisions on the level of the budget and level of Council Tax. Subject to decisions on the Council s budget and Medium Term Financial Plan, the proposals in this report will be built into the business plan for the Corporate Core. Recommendations Executive is recommended to: 1. Note that following public consultation on the Council s budget, the proposals for service and expenditure changes included in this report will be considered by Council in March Note that if the proposals outlined in this report are agreed by Council, further reports will be submitted to the Executive as specified in the body of the report. Wards Affected: All Community Strategy Spine Performance of the economy of the region and sub region Reaching full potential in education and employment Individual and collective self esteem mutual respect Summary of the contribution to the strategy Supporting growth, turning growth into jobs and getting more Manchester people into those jobs. Delivering radical public service reform to reduce dependency on expensive public services and so reduce costs by reducing demand

2 Neighbourhoods of Choice Focusing on place, securing the continued regeneration of our City Centre and neighbourhoods so that as people achieve their potential, they choose to stay in the City Providing leadership to influence local partners and Whitehall to secure the capacity to match our ambitions. Implications for: Equal Opportunities Policy: Yes Risk Management: Yes Legal Considerations: Yes Financial Consequences for the Capital and Revenue s The proposals set out in this report form part of the draft budget submitted to the Executive, Finance Overview and Scrutiny Committee and Council. Contact Officers: Name: Sir Howard Bernstein - Chief Executive Telephone: h.bernstein@manchester.gov.uk Name: Richard Paver - City Treasurer Telephone: r.paver@manchester.gov.uk Name: Geoff Little - Deputy Chief Executive (Performance) Telephone: g.little@manchester.gov.uk Name: Susan Orrell - City Solicitor Telephone: s.orrell@manchester.gov.uk Name: Carol Culley - Assistant Chief Executive (Finance and Performance) Telephone: c.culley@manchester.gov.uk Name: Sara Todd - Assistant Chief Executive (Regeneration) Telephone: s.todd@manchester.gov.uk Name: Sharon Kemp - Assistant Chief Executive (People)

3 Telephone: Name: Sara Tomkins - Assistant Chief Executive (ICT and Communications) Telephone: s.tomkins@manchester.gov.uk Background documents (available for public inspection): None.

4 1. and Service Overview of the Corporate Core 2012/ In 2012/13 the Corporate Core has a gross budget of 449.3m and a net budget of 74.5m and currently employs 2,382.4 FTE 2012/13 Business Plan Area Gross 000 Net 000 FTE Chief Executive s 83,904 59,798 1,423.9 Corporate Services 365,399 14, Total 449,303 74,523 2, /14 and 2014/ Over the last eighteen months, the Corporate Core has delivered 29m savings and a reduction of 426 posts. This has been a 30% reduction. For the Corporate Core will need to achieve further savings of circa 15m The proposed budgets within the Corporate Core for 2013/14 and 2014/15 are shown in the table below and include a staffing reduction of 148 FTE over the two year period as follows: Business Plan Area 2013/ /15 Gross 000 Net 000 FTE Gross 000 Net 000 FTE Chief Executive s 75,589 53,884 1, ,883 50,858 1,329.7 Corporate Services 363,982 13, ,345 10, Total 1 439,571 67,380 2, ,228 61,644 2, Includes c 1.9m of savings for relating to City wide budgets

5 1.4 The movement in the net budget position from 2012/13 to 2014/15 is shown in the table below: Business Plan Area 2012/ / /15 Growth and Other Changes Growth and Other Net 2012/13 Savings Net 2013/14 Changes Savings Net 2014/ Chief Executive s 59, (6,524) 53, (3,385) 50,858 Corporate Services 14, (2,146) 13,496 (113) (2,597) 10,786 Total 1 74,523 1,527 (8,670) 67, (5,982) 61, The Corporate Core is responsible for the strategic leadership, governance and management of the organisation and works in partnership with other directorates and partners to deliver the City s ambition for Manchester to be a world class city with sustained economic growth and better lives and opportunities for residents. The Strategic Management Team are all part of the strategic leadership role of the Corporate Core. 1.6 The organisation of many of the Corporate Core's functions is based on centres of excellence which bring together support across all directorates and strategic business partners who work with directorates to ensure effective support is provided on a bespoke basis. This removes duplication and provides leadership to align the financial, human and other resources of the Council behind its strategic objectives. 1.7 The Core also provides support to the Council to operate as a democratic organisation and to ensure there are robust governance arrangements in place across behaviours, values, systems and processes. Legal and Democratic Services will continue to ensure lawful changes occur and that governance and accountability processes and procedures are robust and transparent. 1.8 Of increasing relevance is the support the core provides for financial management and legal advice to the Combined Authority and the leadership and management of the AGMA Wider Leadership Team. 1.9 The Core also has responsibility for the delivery of key services to a range of customers and stakeholders, including residents, businesses, and government agencies, for example the collection of Council Tax, business rate billing and the administration of various benefits including Council Tax Benefit and Housing Benefit.

6 2. Key Objectives and High Level Business Case 2.1 Responding to the significant reductions in resources available over the last two years the Council has reduced its Corporate Core at to a greater extent than the directorates which are mainly responsible for services. The challenge facing the Core is to continue to reduce is size and at the same time increase its impact on delivery of the Council's priorities. The Corporate Core now needs to develop new skills to develop new models for prioritising both economic growth and reform which will help more Manchester people to be part of and get more out of the City's economy. The high level objectives are therefore:- To continue the Council s leadership role in relationship to AGMA and the Combined Authority, remaining focused on supporting growth and job creation, with a more sharply focused strategic planning, housing and regeneration capacity. Also to lead exemplar activity in partnership with Whitehall to achieve a bespoke deal for GM on public services reform to complement the deal for GM on growth To support the team of Assistant Chief Executives to both lead core functions and support Strategic Director portfolios for integrated delivery, integrated commissioning and neighbourhoods and continuing to build capacity around these key roles. An organisation-wide approach to behaviour change to underpin the next phase of transformation and cultural change. A general approach to behaviour change across the workforce and within communities will be coupled with an acceleration of behaviour change in the priority areas of the Whole Family Lead role, the switch to digital in customer services, increasing recycling and integrated assessments and case management for targeted and specialist services. The focus will be on behaviours such as independence and resilience. The further development of centres of excellence which are drawn into Directorates through a Strategic Business Partner and to neighbourhoods through Regeneration Teams. Streamlining and applying the Centre of Excellence model more fully across more functions to drive the public service reform agenda, new investment models and strategic development The automation and integration of transactional services to increase efficiency and reduce the amount of administrative, business and technical support. The protection of frontline services which necessitates reduction in the back office staff Developing the skills to support growth, public service reform and the focus on neighbourhood. Reducing layers of management.

7 3. Key Changes and Savings to be delivered A. Leadership for Reform 3.1 Manchester aims to be a world class city as competitive as the best international cities. Using Manchester s role as an engine of growth with its considerable economic assets, the City aims to be enterprising, creative and industrious. The city needs highly skilled and motivated people living in neighbourhoods which work well environmentally, economically and as communities. This has to apply to the whole city so that all Manchester residents can meet their full potential in life and all of Manchester's diverse communities are successful. 3.2 The Corporate Core is the engine for driving this agenda. The Core provides leadership for Greater Manchester as well as the City, developing propositions which make Manchester an attractive place for people to invest and to do business in an ever more complex global market. The Core takes a leadership role in stimulating business growth and connecting business to international markets, strengthening the depth and breadth of the City's labour markets and drawing the connection between infrastructure, products and people. 3.3 The Corporate Core also provides leadership for the radical reform of public services (across all sectors that serve Manchester people, not just the Council) to reduce the dependency on expensive public services. This is essential to increase productivity and therefore unlocking the potential for growth, as well as reducing the need for spending on expensive targeted services 3.4 The Core also provides the leadership of place through the continuation of the regeneration journey for the City and all of its neighbourhoods. 3.5 The Core is providing the leadership to influence the private and voluntary sectors locally as well as national Government to secure more of the resources and powers to match our ambitions for Manchester. 3.6 The key management and leadership task for the Core is to keep developing the culture of the whole of the organisation; to shape the behaviours of all of our staff and of our partners and to maintain a focus of the whole of the City's public service workforce on growth, people and place. B. Core 3.7 The work of the core on growth and public service reform will increasingly link to activity at a Greater Manchester level. Key to this will be continued progress on securing and delivering bespoke deals for Greater Manchester with government, including the City Deal process and, arising from the Greater Manchester Whole Place Community pilot, the submission of proposals to Government for a bespoke budget settlement for Greater Manchester. Key priorities on growth include the earnback model and support

8 to the skills agenda by embedding work and skills within the new service delivery models for specialist and targeted services to reduce dependency and to respond to welfare reform. A detailed report on the Council s growth agenda relating both to the city as a whole and to individual localities, alongside practical proposals on securing effective delivery, will be provided to the Executive on 13 February A restructure centre of excellence for Policy, Research and Partnerships led by the Head of City Policy will underpin this focus on development, new investment models and reform with a focus on developing capacity for economic analysis and strategy development. It is proposed that the Environmental Strategy Team will move from the Neighbourhoods Directorate into the new centre of excellence to ensure an on-going focus on sustainable economic growth along with the responsibility for partnerships from Performance. There is a savings target of 703k in 2013/ Regeneration will remain a priority with the development and use of new investment tools across all regeneration functions. The delivery of development priorities and maximisation of income will be progressed through the Strategic Development function. A savings target for the Economic Development Unit and Regeneration including City Centre Regeneration has been set at 1.370m in 2013/ Planning and Building Control are key to the continuing development and economic growth of the City and are an integral part regeneration. Through the review of the fees structure, savings of 150k are forecast for Housing is a fundamental part of the growth strategy for the City. Given the increasing population of the city and the needs of particular demographic groups, the housing offer needs to change to support the city as it grows by catering for different tenures across the salary ranges. Interventions to support the creation of effective housing markets will therefore continue, building on the progress in parts of the conurbation core. A response to market failure is critical, as is the need to make the case to Government for the tools to do this. The Strategic Housing function will focus on these priorities and make savings of 180k in 2013/ Legal and Democratic Services and Executive will continue to ensure lawful changes occur and that governance and accountability processes and procedures are robust and transparent. Support will be provided to the significant change programmes particularly public service reform and regeneration. Support to the Combined Authority and delivering the Council's statutory democratic functions including elections will remain core functions. Savings of 300k are proposed through Legal Services for predominantly from income maximisation and changes to staffing. Further savings of 198k are currently proposed for Democratic Services for and 60k for Executive in 2013/ The core will continue to prioritise the integrated Strategic Finance and Performance support to deliver new investment models and evaluation for

9 public service reform. Existing functions will be reorganised into a new centre of excellence for integrated commissioning which will be pivotal in enabling public service reform, particularly integrated commissioning of targeted and specialist services as set out in the report on those services appearing elsewhere on this agenda. The reorganization of services into the centre of excellence for integrated commission will contribute to the savings in performance and financial management set out below It is proposed that the third sector team form part of the integrated commissioning centre of excellence. Proposals will also be developed to create an intelligence hub for public service commissioning. Provision of 500k has been made for third sector costs as the last tranche of mainstreaming provision which was previously funded from Area Based Grant. As this replaces funding from external grant, it does not increase in the budget of the core. As part of developing the centre of excellence for integrated commissioning we will specify the task of influencing commissioning from neighbourhoods upwards and identify the skills and people to undertake this. Savings for the Performance function are 990k over Financial Management will continue to develop into a streamlined professionalised function. Capacity will be prioritised to deliver strategic financial advice and information, alongside the development of career paths and training and support. The focus will be on: Further developing the Finance Business Partner role - financial advice role and added value The growth of in-house commercial skills on an invest to save basis to support the Core Investment Team, commercial projects that the Council is involved in and the modelling and development of Investment Agreements required for the public service reform work. This will include the creation of a small number of posts to increase current capacity to resource the increasing the demands for commercial finance modelling and enable a skills transfer into mainstream finance activity. The links with the PPRI centre of excellence will be maintained and developed. A focus on volatile and high risk budgets with improved modelling in these areas but less support on lower risk areas. The maintenance of a strong core accountancy function that can support the effective closure of the accounts, capital and revenue budget process (and complex modelling of business rates that supports this), Treasury Management and VAT. This includes the capacity to carry out some of the financial research and modelling for GM as well as for Manchester. A small team that directly supports the City Treasurer is his role as Treasurer for the Combined Authority and AGMA Treasurer The transfer of residual Directorate invoicing, payment and debt collection functions to the Shared Service Centre. The creation of a new streamlined, web based financial assessment process for Income and Assessments and the likely transfer of responsibility to Revenues and Benefits. Further centralisation and streamlining performance management.

10 3.16 Savings relating to financial management over are 1.1m There will be further development and streamlining of the strategic HR/OD and Transformation functions through the integration of the HR/OD Business Partner roles and the Strategic Business Partner role. This will ensure the coordination of corporate functions being drawn into directorates. Organisational and workforce transformation will be integrated and combined reporting to a Strategic Business Partner will ensure that service changes are supported by effective workforce planning and skills development. Equalities will be embedded within HR/OD and Transformation to ensure that service and workforce changes are underpinned by the equalities framework and legislation. Career pathways, workforce flexibility, support for change and transferable skills will continue to be prioritised and lead by a Strategic Business Partner. The changes to HR/OD related services and Transformation will release savings of 1.309m in To support the further delivery of the m people principles, Employee Self Service and Manager Self Service systems will provide staff with the tools to effectively manage performance. As a consequence the HR/OD teams will be able to align their resources to provide effective on line advice and guidance with access to up to date policies and case studies. Managers will have much better information about their teams. The HR/OD Helpline will provide advice on more complex cases enabling managers to become more confident and independent. This approach will include a strong quality assurance function to further develop consistency and where required individual back up will be assigned to support managers. The Employee Relations function will continue to lead on policy development and relationship management with regard to industrial relations The Shared Service Centre which delivers most of the transactional or administrative functions for HR/OD and finance will become more streamlined and efficient as managers and employers will be directly entering information themselves. This will reduce the paperwork and manual /double handling of information. Savings of 300k are proposed for Audit and Risk is undertaking a major piece of work to assess our insurance liabilities which may release one-off funds currently held to finance self insured risks. The need for Audit expertise to support high level investigations and assurance work will continue. Savings proposed for are 487k for the Service and costs associated with the Insurance Fund Procurement will support the establishment of the centre of excellence for integrated commissioning and continue to improve contract management across the Council. A key priority will be to integrate the considerable contracts related to Public Health and support the delivery of the assumed contract savings in directorate plans. Savings relating directly to the Procurement Service are set at 96k in 2013/14.

11 3.22 Customer Services are essential to supporting single assessments for specialist and targeted services and in supporting the response to welfare reform. Customer Services are also proposing to embed CRM into mainstream budgets to manage ongoing support for this key application hence absorbing growth of 261k. Savings of 717k are proposed for which includes 500k relating to digital by default Proposed savings for Communications including events will reduce overall spend by 1.832m for There are savings from efficiencies, including reducing events contributions, staffing changes, and maximising income. The savings reductions will be balanced by a streamlining and strengthening the way the centre of excellence model works for the communications function, particularly how directorate commissioner communications. We will further integrate the communications and media services so that we can focus more on social marketing and digital media which is where our reduced resources will deliver the greatest return In ICT, further savings of 1.44m will be achieved for via application rationalisation, self service, increased contract savings and income generation. ICT is sharpening its commercial opportunities by driving revenue in servicing non-council activity currently undertaken and reducing the costs of mobile and telephony services. However, ICT also requires ongoing investment in capacity to deliver technological changes for public service reform and to increase automation and digital customer transactions. To meet the need for further capacity on areas such as troubled families, integration, mobile, corporate case management and self - service there will be investment in skills as well new systems. There will also be investment in ongoing maintenance and an upgrade strategy for a sustainable ICT support service. The ICT investment strategy will include proposals to be brought forward as part of the Capital process It is proposed that the Capital Programmes division becomes entirely self financing with no mainstream Council funding. The focus will be on continuing to deliver major projects such as the Town Hall Complex to high environmental standards, finalising Building Schools for the Future and delivery of Highways consultancy and construction. A savings target of 320k has been set for 2013/ Corporate Property will continue to focus on creating the conditions for economic growth in the way it manages the Council's estate. The budget is also facing some pressures with an increase in service charges for some office accommodation and a reduction in surveyors fee income which have been reflected in the budget ( 334k). The move back to the Town Hall Extension and further property rationalisation will be priorities for the year ahead. The savings target for is 460k The Energy Management Unit will work along side colleagues in the Environmental Strategy to support the Council to reduce its own carbon emissions and reduce costs to the Council. This will be accompanied by work with staff to encourage more energy efficient behaviour. Together this will

12 mitigate potential costs from inflation. There is also scope to generate small amounts of income through selling the Unit's expertise to other public bodies The Core will identify a further 325k of savings over through a review of the Business Administration function ( 100k) and further efficiencies across the core ( 225k) There will also be a major exercise to design and implement a Council wide facilities management function designed to deliver consistent standards and efficiency savings. There is a potential of 1.5m of savings linked to this approach in 2014/15. These are cross-cutting savings. C. Targeted and Specialist Services 3.30 The Corporate Core will continue to play a leading role in integrating targeted services for those individuals and families with multiple problems or complex needs. The Core has responded to the challenging economic climate by instigating radical reform of specialist and targeted services to improve outcomes for people's lives and to tackle the cost pressures on public services The focus going forward will be to play a leading role within Greater Manchester and within Manchester on implementing the outcomes of the GM Whole Place Community pilot, specifically new delivery models and new investment models for targeted early years interventions to stem the flow of future dependency, and reducing existing dependency by expanding the reach of the troubled families programme and linking more directly to DWP services and the Work Programme to reduce low skills and worklessness and reducing offending and reoffending. The Core will also prioritise support for the integration of health and social care services at GM level and within each of the Manchester CCG areas Phase one of the Manchester Investment Fund (MIF) for Troubled Families has been underway for over a year in Longsight, Gorton and Wythenshawe. This has been a test bed for the operation of a Community and lessons from feedback from families, neighbours and front line staff and the interim results from evaluation have informed the improvement and scaling up of the Troubled Families programme by working with 1,000 troubled families in North Manchester. The work will be further expanded into other areas of the city and across a wider range need so that we are intervening earlier. The principles and evaluation of the work with troubled families is helping to shape future provision specialist and targeted services within the Councils Adults and Children's social care services and with our partners in the third sector and agencies such as housing providers, GMP, schools, health services, the Probation Service, Job Centre Plus and Work Programme providers The Core will now focus its support on the scaling up of new delivery models into integrated mainstream delivery across children s, adult social care and health services. This will include the development and leadership of behavioural change tools and techniques which support increasing

13 independence and reducing dependency on public services. The core will also focus on scaling up of new investment models by applying the lessons from the Manchester Investment Fund to the development of an Integrated Commissioning hub Communications, Customer and ICT services will all have important contributions to enabling the reform of specialist and targeted services through technical solutions such as a "single front door" to join up and manage access to services, integrated assessment processes and single case management systems. The reductions across these three services detailed in paragraphs 3.22 to 3.24 above have been planned to minimise any impact on the public service reform priorities and to accommodate increasing specialist skills in these areas. D. Neighbourhood Delivery 3.35 Ward Co-ordination will continue to enable Members to ensure that the resources of the whole Council and of other public services are focused on reducing deprivation and dependency at neighbourhood level Cash Grants provide funding for community groups to take on projects which make their neighbourhoods cleaner, safer and better places to live in. Over 900 voluntary organisations received cash grants between 2009 and Each ward has an allocation of either 35k, 40k or 45k depending on the level of deprivation. This will be replaced by an allocation of 30k per ward generating an overall saving of 300k. At the same time, in 2013/14 the administration of the scheme will be simplified through: Increased marketing of cash grants through the Council s and other websites and encouraging on-line applications Simplification of eligibility criteria Improved transparency in the administrative process 3.37 Neighbourhood Regeneration Teams are leading and co-ordinating the economic, social and physical transformation of neighbourhoods and investment priorities. They are overseeing neighbourhood and community development and will work with other functions to provide leadership and coordinating for integrated commissioning A top priority will also be coordinating action at neighbourhood level in response to welfare reform and supporting residents and the Revenues and Benefits Service through the Housing Benefit and Council Tax Benefit Changes A Centre of Excellence for Technical Services drawing together existing functions such as property, capital programmes, building control and other areas is being explored. This would provide stronger strategic direction and co-ordination for decisions on planning, property and housing. Proposals for this new centre of excellence are currently being developed by the Chief Executive. See also sections 3.25 and 3.26 for further proposals relating to

14 Capital Programmes and Corporate Property. Savings of 150k will be achieved in E. Universal There will be a year of unprecedented change for the Revenues and Benefits Service with the introduction of welfare reform, the localised Council Tax support scheme and localised business rates. Increasing Council Tax bills for 65,000 households including 38,600 who currently pay nothing is anticipated to create large scale collection problems. The Government has also announced possible changes to the Council Tax Support Scheme arrangements which will add further to this complexity. The focus has to remain on dealing with increasing and ever more complex caseloads and collecting the maximum sums for the Council. Processes relating to the financial assessment of clients for Adult Social Care Services are likely to transfer from Financial Management following the success of a similar transfer for Adults debt recovery. The service will deliver savings of 65k in 2013/14. Additional income as a result of the application of charges is estimated at c 200k in 2013/ Manchester Adult Education Service (MAES) delivers and commissions first step and vocational courses and employment support programmes to enable adults to acquire the knowledge, skills and qualifications to secure and sustain employment. It also supports the well being of individuals, families and communities. MAES will work with Manchester College to make sure the skills on offer link to the City s growth sectors. This will also include work to ensure that there is a skills escalator in place so that once in work residents can continue to enhance their skills and qualifications and to increase productivity for businesses and the economy. A savings target of 100k for MAES over is being proposed. The role of MAES will be considered by the Director of Education and Skills when he takes up his role in February. This will then be addressed in a report on the goals for the City s skills commissioning and provision. 4. Partnerships 4.1 The Corporate Core provides the corporate focus for maintaining our relationships with the business community and the capability to create the conditions for private sector led growth. The Core will also continue to support our leadership of public service reform so that we are creating the conditions in which the public sector as a whole can lead the reduction of dependency. Our partnerships with the private, public and third sectors will encourage a new focus and alignment of total resources behind the priorities of growth and reduced dependency. This is the key to securing the best possible value for Manchester people. 4.2 The Chief Executive s Directorate will also build a stronger relationship with the third sector and support volunteering and community groups. We will ensure strong and integrated partnership arrangements with private, public

15 and the voluntary sector, and that these become intrinsically linked to the reform agenda. 5. Growth 5.1 As indicated above proposals will be submitted to the capital budget process for investment in ICT systems essential to the reform of specialist and targeted services to reduce dependency. The revenue proposals for savings in this report will also create the capacity needed to invest 2.165m over in the development of key skills and ICT particularly commercial financial modelling and market analysis, stronger commercial legal skills, ICT development skills, strategic research and policy development skills and data and intelligence analytical skills. 6. Impact on Residents, Communities and Customers 6.1 There will be a general impact on residents, communities and customers from the action to generate the conditions for growth and to continue regeneration and investment in housing. 6.2 The way that the core supports people-based reform and service transformation will have a positive impact on those residents in receipt of specialist and targeted services and their neighbours. 6.3 The more immediate impacts will be felt in customer services as we accelerate the switch to digital contact and in Revenues and Benefits as the welfare reforms start to roll out. 7. People Impact 7.1 It is anticipated that the Corporate Core proposals will result in a workforce reduction of circa 148 FTE and deliver a workforce saving of 5.289m. The reductions will be across the majority of areas within Corporate Services and Chief Executives. 7.2 The full extent of the impact on specific roles will be identified as proposals are developed and engagement with staff and trade unions takes place. There are robust workforce planning arrangements in place to ensure that as the functions and roles within the Corporate Core change, the workforce have the skills required to ensure effective service delivery. 7.3 The below provides an overview of the breakdown of the staffing reductions of circa 148 FTE by service: The development of a new centre of excellence for Policy, Research and Partnerships will underpin the focus on development, new investment models and creating capacity for economic analysis and strategy development. This will result in a reduction of 1 FTE in City Policy and the movement of some functions into this area with reductions of approx 21 FTE in Performance

16 A further review of the HR/OD and Transformation Centre of Excellence will take place to ensure alignment to the transforming organisation. This will result in further integration of HR/OD and transformation and a workforce reduction of approx 21 FTE. The Equalities function will transfer under the leadership of the Deputy Chief Executive, Performance with the management being undertaken by the ACE, People. ICT will go through further changes to keep abreast of changing technologies and ways of working, this will result in a reduction of circa 15 FTE. Communications will further develop the Centre of Excellence model through integration of services, across the division this will result in a reduction of 3 FTE. The Customer Service Organisation will reduce by 22 FTE. Financial Management will increase focus on new investment models and developing commercial finance skills, whilst reducing by approx 21 FTE. The Shared Service Centre will see further changes and streamlining of process through the implementation of ESS/MSS, this will result in an approx reduction of 12 FTE. Across the remaining areas of Corporate Services, Revenues and Benefits will reduce 2 FTE, Corporate Property will reduce by 6 FTE, Internal Audit, Risk and Resilience will reduce by 2 FTE, Corporate Procurement will reduce by 1 FTE and Capital Programmes will reduce by 3 FTE. Across the remaining areas in Chief Executives there will be a reduction of 5 FTE from Regeneration and Legal and Democratic Services. Further reviews across the Core will be undertaken to identify a further reduction of circa 13 FTE. 8. Implementation and Risk Management 8.1 This report sets out a detailed response to the proposals developed in response to the budget settlement. The Core s commitment to the vision of an effective, responsive and integrated directorate delivering high quality core services to Manchester residents and providing leadership to the Council remains absolutely central to how the Corporate Core proposes to implement the savings and any service reduction proposals. 8.2 The proposals, as well as being subject to equality analysis and Equality Impact Assessments, will be supported by the Corporate Core Business Plan. 8.3 The risk register being developed as part of the business planning process will incorporate the risks associated with delivering these savings proposals.

17 Manchester City Council Appendix - Item 8 Corporate Core Savings Schedule Savings Proposal City Policy City Policy EDU/Regeneration EDU/Regeneration City Centre Regen Description of Saving Increased income and delivery of efficiencies through reductions in staffing and running costs Reductions in staffing and running budgets across the Service and delivery of further efficiencies including realignment of development budget. Delivery of efficiencies with further reductions in staffing and running costs Amount of Saving 2013 / / 15 Total,000,000,000 FTE Impact (Indicative) ,310 1, Total 1, ,370 3 EDU/Regeneration Allocation of 30k per ward Cash grants Planning & Building Control Planning Increase in Planning Fees Building Control Increase in Chargeable Building Regulation Fees Total Strategic Housing Manchester Move Legal Reduced costs/income Maximisation Charged to GF - can be charged to HRA re: letting of social housing Staff changes and increased income/ Recovery of insurance costs Democratic & Statutory Services

18 Manchester City Council Appendix - Item 8 Savings Proposal GSSU - introducing a charge Description of Saving Charge for School Admission and Exclusion Appeals, Voluntary Controlled Schools and Academies raising potential additional income of 20k Increased income re discretionary charges and continuing increased demand Amount of Saving 2013 / / 15 Total,000,000, FTE Impact (Indicative) Registrars - Increased Income Elections A review of polling stations Elections (ONE OFF) One off savings as no election scheduled for /14 Total Executive & GMIST Reduced Costs Reduction in running costs across Service Performance Performance Review of staff and non staff related costs Financial Management Financial Management HR/OD and Transformation HR/OD Maximisation of external funding and delivery of efficiencies with further staffing reductions , Review of staffing related costs and renegotiation of contracts Reduction in Staffing Staffing reductions and Service Review Total , Shared Service Centre Reduction in Staffing Reductions in Finance Office, Cash Counter Services, Payroll team & SAP Training team Internal Audit Reduction in Staffing Staffing reductions Increased Income/Reduced Costs Increase income targets, particularly schools/ Reduction in costs to be identified including consultancy budgets

19 Manchester City Council Appendix - Item 8 Savings Proposal Description of Saving Amount of Saving FTE 2013 / / 15 Total Impact,000,000,000 (Indicative) Reduced charge Reduced costs against the Insurance fund Total Procurement Procurement Customer Services Digital by Default Reduction in staffing and supplies and services budgets Savings via the Customer Contact Centre for channel shift. Reduction in Staffing Reduction in staffing and integration of CRM team into mainstream budget Total Communications Collaboration Review of Print Unit with Greater Mcr Police (GMP) Reduction in Supplies and services Reduction in Staffing Marketing Co-Ordination Unit - Marketing Manchester Increased Income Christmas Lights and Tourist Information Centre - Visit Manchester Reduction in Communications budget and Print and mail efficiencies. Reduction in Events Reduction in staffing and service delivery budget in press office. Support for Marketing co-ordination unit efficiencies Increased sponsorship of events and maximisation of commercial income Renegotiation of costs of festive lights and efficiencies in the visitor information centre Total 1, ,832 3 ICT Reduction in Staffing Reduction of FTE over the two years Reduction in Supplies Contract Savings and Services Income Maximisation Income for services

20 Manchester City Council Appendix - Item 8 Savings Proposal Description of Saving Amount of Saving FTE 2013 / / 15 Total Impact,000,000,000 (Indicative) Contract savings (SIP) Savings as a result of new ways of working Total 1, , Capital Programmes Reduction staffing and Reductions in staffing and efficiency savings running costs Corporate Property Reduction in Staffing & Running s Review of the Staffing Structure ( 155k) and reduced costs associated with Building Surveying function ( 37k) Reduction in CP Landlord Liabilities budget CP Landlord Liabilities budget Total Other Savings Reduction in Staffing Savings to be derived from Business Admin Reduced Costs FM Redesign Reduced Costs Technical Services Reduced Costs Review (next stage) Other Savings to be confirmed - work programme underway to determine Total Redesign and potential centralisation of FM function Savings to be derived from current work being undertaken on redesign of Technical Services and further reductions from Core 1,500 1, Revenues and Benefits Revenues and Benefits Reduction in staffing Income Maximisation Additional Charges Total

21 Manchester City Council Appendix - Item 8 Savings Proposal MAES Reduction in budget requirement for Running Costs Description of Saving Reduction in budget requirement for service running costs Amount of Saving 2013 / / 15 Total,000,000, FTE Impact (Indicative) Total Savings Proposals Core Services 8,670 5,982 14,