Commissioning and Financial Plan Guidance 2013/14

Transcription

1 Page 127 Agenda Item 6 Appendix C Commissioning and Financial Plan Guidance 2013/14

2 Agenda Item 6 Page 128 INTRODUCTION 1. This document sets out the formal guidance to the London Borough of Sutton for the 2013/14 business and financial planning round. This guidance was approved by the Strategy and Resources Committee on 2 July 2012 and is the guidance that all staff must follow. The purpose of the business and financial planning round is to ensure that Members priorities and objectives are translated into practical plans for delivery and that there are sound financial plans for these within the resources available. The overall timetable to be followed is at the end of this document. 2. This guidance continues the integrated approach to business and financial planning over the past three year. As the London Borough of Sutton moves towards being more of a commissioning council the guidance builds on previous approaches so the intention is that by February 2013 we will be able to set out commissioning intentions at a council-wide and a Directorate level. Each Directorate will produce a one year Commissioning and Financial Plan, where the commissioning intentions should reflect the core business of the directorate. This guidance sets out the process and timetable that will culminate in March 2013 with the final agreement at Council of a council-wide Commissioning and Financial Plan for 2013/14 that will be made available on the website. 3. The Council's financial outlook is extremely challenging both in the current year and over the period of the Medium Term Financial Plan. The approach for the coming year and beyond is to ensure that business planning and financial planning are integrated into Commissioning and Financial Plans and that these are driven by business need, and that resources are allocated in line with the council's strategic objectives. In particular Strategic Directors will need to ensure that not only do plans meet any current financial targets, but they are also starting to plan now for the greater challenges ahead in 2015/16 and 2016/ The key elements of the approach are: Production of this joint commissioning and financial planning guidance together with a timetable that s approved by the Strategy and Resources Committee All Directorates following the same timetable. Early production of first draft Directorate Commissioning and Financial Plans in September. Internal challenge by CMT, SMT and Members in September. Public engagement November/December Final draft plans in January 2013 Budget approval in March 2013 Publication of Commissioning and Financial Plans on the Internet by the end of the financial year Freedom for Directorates to develop service and team commissioning and financial plans in a format that best suits their needs and that demonstrates the 'golden thread' from the council s strategic objectives to individual work objectives. 5. As a result of this approach we intend to achieve: A set of council-wide commissioning intentions for 2013/14. 2

3 Page 129 Agenda Item 6 Directorate Commissioning and Financial Plans for 2013/14 including risk registers and People Plans A clear focus on Directorate-level commissioning intentions (around 7 to 10) against which Strategic Directors will be accountable through our in-year performance management arrangements. 6. The Commissioning and Financial Plans will need to reflect the existing corporate plan, 2013/14 priorities as set out by the Leader, the updated Medium Term Financial Plan, the savings required from Smarter Services Sutton and the recently agreed Smarter Council programme of change. 7. The Council continues to face a number of significant financial challenges for the coming period. Further reductions in government funding are likely after the end of the spending review period in 2014/15 in view of the overall public expenditure plans announced in the Chancellor s 2012 budget. Current NHS funding for social care that benefits health is not guaranteed beyond 2014/14 either and a further reduction in funding due to the conversion of schools to academies is expected. Additional provision for pay inflation will be required from 2015/16 when the government s policy of a pay freeze followed by two years of 1% increases expires. Also provision needs to be made for additional pension costs and for general growth and to fund revenue investment in Council priorities. 8. These challenges suggest a funding gap in excess of 30m by 2016/17 before allowing for the impact of new savings initiatives. Measures outlined in the joint report of the Strategic Director - Resources and the Executive Head of Policy and Customer Services to the Strategy and Resources Committee (2 July 2012) reduce this gap to about 23.5m, equivalent to a 15% saving against net service budgets over a four year period, on top of any SSS savings that have still to be delivered. By Directorate this is provisionally equivalent to the following sums (before adjusting for uncontrollable items): Adult Social Services, Housing and Health Chief Executive s Children, Families and Learning Environment and Neighbourhoods Resources 9.7m 1.4m 5.2m 5.1m 1.6m 9. It is crucial that the Council has robust arrangements in place that ensure commissioning and financial planning is fully integrated through the production of Commissioning and Financial Plans. While taking more of a commissioning approach to the delivery of internal and external services will go some way towards achieving the required savings, this alone will not be enough to close the medium term budget gap. It is also essential that Directorates continue to implement the savings identified from Smarter Services Sutton reviews. While Strategic Directors will mostly need to focus on 2013/14 commissioning intentions and financial proposals, it is essential, given the medium term financial pressures that these commitments are sustainable and that plans have regard to the need to make savings by 2016/17 of the order of the amounts set out above. Given the time needed to identify and analyse options and take proposals through necessary consultation and decision-making processes it is expected that the 2013/14 plans will include initial preparatory work to achieve the necessary budget savings. The report to the Strategy and Resources Committee (2 July 2012) sets out the integrated approach to business and financial planning. The report provides key background 3

4 Agenda Item 6 Page 130 information that will inform the Commissioning and Financial Plans for 2013/14 and should be read in conjunction with this guidance. 10. The process itself is similar to last year and will run to the same timetable. The key changes are: The change from Delivery and Financial Plans to Commissioning and Financial Plans The requirement to identify a high level, indicative cost of delivering each key commissioning intention The requirement to consider the impact on the cross cutting areas of Equalities, Health and Sustainability via Integrated Impact Assessments, (where relevant) Directorate People Plans being mandatory rather than discretionary and drawn from the council-wide People Plan. 11. There are a number of key milestones that need to be met to ensure the above is achieved. The full timetable is at Appendix A. They are: What First draft Directorate Commissioning and Financial Plans to be sent to Abigail Macklin for dispatch to CMT on 12 September. (All sections of the template should be completed in draft form). Presentation of draft Commissioning and Financial Plans by Strategic Directors to a meeting of the Extended Management Team Final drafts of Directorate Commissioning Plans sent Abigail Macklin for dispatch to CMT on 16 January 2012 When By 3 September September 2011 By 4 January 2012 Publication of Commissioning Plans on the Internet By 30 th March The overall process will be managed jointly by the Finance Unit and the Policy and Customer Services Division on behalf of CMT. The key contacts are: Policy and Customer Services Division: Rebecca Escott-New x 6880 Abigail Macklin x 5147 Finance and Procurement Unit: Phil Butlin x 4949 KEY ELEMENTS OF THE COMMISSIONING APPROACH 13. Commissioning is the process of specifying, securing and monitoring services to meet people s needs at a strategic level. This applies to all services, whether they are provided by the local authority, NHS or other public agencies or by the private or voluntary sectors - (Sutton s Residents First Implementing the Smarter Council, October 2011) 14. As set out in Sutton s Residents First Implementing the Smarter Council, the new approach to commissioning will be applied across all services whether they are provided for internal or external customers. Importantly, the approach to commissioning does not mean that services will be automatically outsourced nor does it mean that services will necessarily be directly provided by the Council. Rather the approach will lead to more mixed methods of service delivery including in house, mutualisation, social enterprise and 4

5 Page 131 Agenda Item 6 management buy-out proposals, for example, as well as more traditional out sourcing solutions. 15. The four key stages to the commissioning cycle can be summarised as follows: Analyse What do residents, partners, similar authorities, and our data and learning tell us is needed locally? Plan What would any services need to provide, to whom, and how will we know they have succeeded? Do Who should provide a service, for how long and how much will it cost? Review Was what we commissioned successful and what can we learn for future commissioning? Review new service and lessons learned to inform future commissioning activity Evaluate Initiate Begin commissioning activity Gather data/information to review effectiveness of new service Consolidate Review Analyse Investigate Analyse data, stakeholder opinion and market potential Begin service delivery Activate Do Plan Collaborate Draw up outcomes/success criteria/service specification with key partners Begin procurement process, choose provider, agree costs. The 8 Steps to Commissioning Negotiate Incubate Liaise with stakeholders to refine initial ideas and agree final output. 16. At a corporate level the approach to business and financial planning for 2013/14 fits into a strategic commissioning cycle, spanning both the analyse and review stages. The Directorate Commissioning and Financial plans will set out annual directorate level commissioning intentions, the core business (i.e. outcomes) the directorate will be accountable for through the Council s performance management framework. Intentions may take longer than one year to deliver and so it is perfectly possible for them to carry forward, however it is expected that outputs that underpin those intentions would fall within the relevant calendar year. 17. As in previous years the individual Directorate s commissioning intentions will need to demonstrate how they contribute to Members high level community priorities for 2013/14 (set out together on page 7 of this document). It is 5

6 Agenda Item 6 Page 132 crucial at an early stage that the first drafts of commissioning intentions are discussed with the relevant lead Member(s). 18. The council-wide People Plan will be a key document to set out the changes we need to make to our internal staffing arrangements to support the transition to a commissioning council. It will focus on three main areas: the development of skills; the further development of leadership behaviours and the future development of our approach to pay and rewards. As part of the production of the Commissioning and Financial plans, each Directorate will be required to work with the relevant HR business partner to develop a short Directorate level People Plan setting out the key workforce implications for the delivery of the commissioning intentions. PRIORITIES TO INFORM DIRECTORATE COMMISSIONING INTENTIONS AND CORPORATE CORE SUPPORT 19. The commissioning and financial planning development process is designed to ensure that the budget proposals are an accurate reflection of Members priority aims and objectives. These balance manifesto commitments with statutory responsibilities and priorities arising from national, regional and local policy agendas including the overall financial context for public services. The table below shows the high-level long term priorities grouped into themes that the residents of Sutton can expect to see over the lifetime of the current corporate plan to 2014/15. Safer Fairer Greener Smarter Reduce crime Improve educational Maintain resident Review of all council attainment for those most satisfaction with street services to reduce in need cleaning and road costs by 30 million maintenance (now 35 million) Reduce fear of crime Safeguard children, young people and adults High quality services for looked after children Increase the number of young people who are in education, employment or training Fewer children with special needs placed outside the borough Support more adults to live independently Increase the amount of recycled waste with less being sent to landfill Reduce congestion on roads with fewer people using their cars Maintain the quality of the public space in parks, playgrounds and district centres Reduce health inequalities Improve resident understanding of the impact of their behaviour on the environment Improve the quality of social housing and number of affordable homes Support growth in the local economy Maintain resident satisfaction with Sutton as a place to live Reduce costs on council accommodation Provide more council services and on line 20. The Commissioning and Financial Plans should include information on any resources required to deliver the plans, highlighting where these cannot be funded from within existing revenue budgets and showing how any funding shortfall will be managed. 21. The key building blocks for the Directorate and Commissioning and Financial Plans are the priorities that have been agreed by members for 2013/14 as set 6

7 Page 133 Agenda Item 6 out below, and these priorities should be directly reflected as corporate commissioning intentions in the plans. Safer Reducing crime and fear of crime with a focus on the link to drug and alcohol misuse Ensuring vulnerable adults and children are safe with a focus on prevention and the development of multi-agency approaches Zero tolerance on all kinds of anti-social behaviour including litter, graffiti and dog fouling. Fairer Economic prosperity through inward investment, local employment and a skilled workforce Working with our residents and business to build capacity and capability to improve the quality of life and well-being of local communities. Increased provision of new social housing and improving the standard of existing housing Reducing health inequalities and improvements to public health Greener Continued delivery of One Planet Sutton priorities Maintain satisfaction with street cleaning services, waste collection and disposal and recycling Implementation of sustainable transport measures Smarter Increase opportunities to deliver savings through smarter commissioning and continued implementation of Smarter Services Sutton savings THE HALLMARKS OF HOW WE DELIVER THE PRIORITIES 22. Our councillors are keen to ensure that the ways in which these priorities are achieved reflects their ambitions for creating a creating a community in which all can take part and take pride. To reflect this there are three key areas they want us to focus on: 7

8 Agenda Item 6 Page First, to reflect the importance of meaningfully involving and engaging residents and businesses at every stage of the commissioning cycle. In particular in assessing needs and in the ways in which performance is managed. Councillors expect to see practical ways in which we intend to build the social capital of the borough through our delivery of services and be clear about how we will know if that is being achieved. 24. Second, to reflect the importance that members attach to the work of local committees and for the active engagement of residents through them. This means that you need to consider and demonstrate the role of the local committee through the commissioning cycle, including the opportunities for local committees to be involved in assessing need, making decisions about funding allocations, managing performance etc. 25. Third, to ensure that in everything we do we are clear about the need to continue to cut costs, transform services and maintain resident satisfaction. This includes a continued focus on the implementation of Smarter Services Sutton savings. There are also three cross-cutting impacts that plans are expected to address in relation to equality and diversity, sustainability and the promotion of health and wellbeing. The council s priorities in relation to these cross-cutting issues are set out at the end of this guidance SUPPORT AVAILABLE FOR DIRECTORATES 26. A wide range of support is available to Directorates in order to guide and assist you through the process. Two Workshop Sessions to explain the new approach, guidance and template, including finance support around savings and HR support on the requirement for the Directorate level People Plan. (aimed at Directorate Plan and Directorate Finance leads). When: mid June 2012 Four Workshop Sessions, a summary version of the above, explaining the overall approach and to support you in working through the commissioning intentions (aimed at EMT) When: by early July 2012 Support from your lead Member(s) When: early drafts of the Commissioning and Financial Plans must be discussed with the relevant lead Member(s) and at all key stages of the planning process Guidance and support from HR business partners on People Plans Guidance, template and support on Integrated Impact Assessment Four tiered quality assurance feedback provided to Directorates and Members. When: September January 2013 through Policy & Finance Teams high level quality assurance throughout the year at the key 8

9 Page 135 Agenda Item 6 stages, EMT challenge of draft plans in September, CMT to review of draft plans in September and ongoing member review 9

10 Agenda Item 6 Page 136 BUSINESS AND FINANCIAL PLANNING 2013/14 OVERVIEW TIMETABLE DATE MEETING/ ACTIVITY 2 July 2012 Strategy and Resources Committee 3 September September September 2012 Directorates Extended Management Team CMT NOTES/COMMENTS Report to agree business and financial planning framework including Commissioning and Financial Plan guidance and timetable First draft Directorate Commissioning and Financial Plans (to include commissioning intentions, risks and finance sections) submitted and reviewed by CMT on 12 September. Capital bids also submitted for early review by members. Presentation of draft Directorate Commissioning and Financial Plans by Strategic Directors to the Extended Management Team Review overall position and first draft of capital programme and finalise draft proposals for Strategy and Resources Committee Early October Members Member challenge of Commissioning and Financial Plans. 15 October 2012 Strategy and Resources Report on progress and to agree proposals for resident engagement. Committee November/ December 2012 Early December January February 2013 Budget Engagement Final Grant Settlement announcement CMT Strategy and Resources Committee Resident, staff and business engagement process. Final drafts of Directorate Commissioning and Financial Plans (to include in addition People Plans and Capital finances) sent by 4 January 2013 Agree commissioning intentions, Budget and recommend council tax level to full Council. March 2013 Council Agree commissioning intentions, Budget and Council Tax for 2013/14 31 March 2013 Internet Publish final council-wide and Directorate Commissioning and Financial Plans. 10

11 Page 137 Agenda Item 6 One Planet Action Plan Aims Zero Carbon Buildings- Our aim is to eliminate carbon dioxide emissions from energy use within buildings, becoming a Zero Carbon council by 2017 and a Zero Carbon-enabled borough by Zero Waste- Our aim is to reduce the waste that we create, reusing where possible, and ultimately sending zero waste to landfill. Eventually we want to create a culture where everything is reusable and recyclable. Sustainable Transport- Our aim is to make getting around the borough as environmentally friendly and fuel efficient as possible, making Sutton a cleaner, greener and healthier place to live. Local and Sustainable Materials- Our aim is to reduce the impact of the things we buy, using products made from sustainable supplies that have a low or positive impact on the environment. Local and Sustainable Food- Our aim is to create a borough where communities are involved in growing local produce from leafy window boxes to a fully fledged community farm; where residents can walk to buy fresh, affordable produce, and have the skills to grow and prepare healthy sustainable meals. Natural Habitats and Wildlife- Our aim is to protect and expand existing natural habitats and create new spaces for wildlife. Sustainable Water- Our aim is to use water more efficiently in buildings and in the products we buy, tackling water stress, local flooding and water pollution. Culture and Heritage- Our aim is to increase participation in community life, encouraging residents to take part and take pride in local culture, sports and recreational activities. Equity and Local Economy- Our aim is to make Sutton fairer, creating an inclusive borough where residents feel empowered in their communities. We want Sutton to have a thriving, diverse and resilient local economy that supports fair employment and international fair trade. Health and Happiness- Our aim is for everyone living in Sutton to be able to improve their health and wellbeing. Climate Change Adaptation- Beyond the ten One Planet Living principles, our aim is to make plans so that we are prepared and able to adapt to changes in climate. Equality and Diversity Priorities 1. Embedding and mainstreaming equalities, so that it s everyone s job 2. Improving how we communicate equality information and outcomes to give the work more external and internal profile, and so that residents can hold us to account 3. Improving the quality and relevance of Equality Impact Assessments 11

12 Agenda Item 6 Page Building a workforce that is representative of our local communities 5. Involving equality and diversity groups in decision making Health Priorities Improving and protecting health and wellbeing Improving the health and wellbeing of those who have an illness or disability Improving mental health and wellbeing Empowering communities and individuals to lead healthy lives 12