Decision

A report was presented which covered:
 

·          
the timetable and anticipated process (including
Member consultation) for preparing the 2025/26 budget and
Medium-Term Financial Strategy (MTFS) to 2026/27, culminating in
the submission of a proposed 2025/26 budget and updated MTFS to the
Committee on 30th January 2025

·          
a review of the progress with the overall Future
Tandridge Programme (FTP), covering achievements to date, elements
still to be delivered and risks
 

·          
a final update on service review savings delivery
for 2023/24.
 
The report confirmed that, since February
2024, work on the MTFS had focused on re-setting the estimates of
budget pressures and funding. Projected annual pressures had
reduced from £1.3m to £1m, primarily due to falling
inflation, while funding was predicted to remain constant at
£12.8m over the MTFS period. These changes resulted in a
proposed savings requirement of £2m over the two years to
2026/27. This was £1m less than the corresponding estimated
budget gap presented to Full Council in February 2024, but
nevertheless challenging, especially as the more achievable savings
opportunities had been exhausted. Furthermore, continued funding
reductions were predicted from 2027/28 onwards. 
 
The FTP review had identified areas where:
 

·          
key results had been delivered for completed areas
of work, including savings (with greater proportions of the budget
now allocated to front line services and a smaller directly
employed workforce) with a raft of other achievements

·          
the foundations for further work had been laid and
could now be managed as ‘business as usual’ (although
Officers emphasised the importance of ensuring the effective,
on-going  delivery of such work as an
essential aspect of the Council’s operation)

·          
further progress is required as part of a refocused
‘FTP2’ (to be overseen by the Chef Executive, working
with the Transformation Programme Director and other senior
officers) comprising the following themes and to be aligned with a
savings and productivity plan to address medium term
challenges:
 

1.   review of the role and purpose of the
Council

2.   attracting talented employees, and
staff development / management 

3.   digital ways of working, including
‘customer experience’

4.   modernising and improving services
through empowered business units.
 
The report explained the content and
objectives of each theme, along with resourcing requirements.
 
The Transformation Programme Director
explained that, while the Council would face difficult choices
about which discretionary services it could afford
to retain, the ‘statutory / discretionary service’
review was at an early stage, with no firm proposals to date. In
that respect, the Chair confirmed that Member level discussions
about future savings options would need to involve all political
groups.
This prompted discussion about
the reference in 4.7 of the report to a ‘steering group of
senior members from the Residents’ Alliance and senior
officers’. The Chief Executive accepted that the
term’ steering group’ was misleading and that it
related to a recent meeting convened with the sole objective of
addressing immediate, high priority challenges (Minute 61 also
refers).
 
In response to other aspects of
the debate, Officers acknowledged:
 
·          
that work to develop a commercial strategy had not
proceeded as originally planned and, while pursuing a more
commercial approach would remain part of FTP2, its role in
transforming the Council may be more limited than previously
envisaged
 
·          
the need to strike an appropriate balance between
the advantages associated with staff being able to work remotely
and the need to be in the office when situations
required
 
·          
that the headline budget estimates (pressures,
saving requirements and funding) for 2025/26 and 2026/27 were
indicative at this stage
 
·          
concerns regarding the potential costs of developing
a new Local Plan, notwithstanding the 
£511k provision within the Planning Policy Committee’s
revenue budget for this purpose.  
 
           
R E S O L V E D – that:
 

           
In respect of the 2025/26 budget process:
 

A.    the proposed
process and timescale for setting the 2025/26 budget and
Medium-Term Financial Strategy be approved;
 

B.   
the approach to be used to develop the 2025/26
savings plan, and the financial context in which it will be
prepared, be noted;
 
           
In respect of the wider Future Tandridge Programme:
 

C.  
the progress to date with delivering the FTP be
noted;
 

D.  
the proposed direction of travel for the future
development of the FTP be noted;
 

E.   the following resources,
to be funded from the previously agreed FTP budget, be approved
(section 4.6 of the report refers):
 

(i)     £10k -
expert support for developing the digital business case

(ii)    £30k -
talent attraction / management (for support to develop and deliver
the new approach in line with Theme 2)

(iii)  
£25k – external training and support for a cohort of
TDC staff to facilitate change and improvement

(iv)  
£65k – to develop and manage the Change Improvement
Network

(v)    £65k - transition funding for a
role to develop business management
 

(vi)    £20k -
external support in discrete specialist areas such as revenue
generation / potential savings to support the service led
approach.