The Finance & Performance Scrutiny Panel met on Tuesday 16 January 2024 to review customer service performance, discuss legislative changes in procurement, and receive updates on council companies and financial monitoring reports. Key discussions included improvements in customer service channels, the implications of the new Procurement Act 2023, and the financial performance of council-owned companies.

Customer Service Performance

The panel received an update on customer service performance, highlighting improvements in digital channels and customer satisfaction. Eleanor Brown, Acting Director of Customer & Communications, and Lee Shelsher, Head of Customer Solutions, presented data showing increased library usage, a rise in online interactions, and a decrease in telephony enquiries. The introduction of a new chatbot has improved agent efficiency, allowing them to focus on more complex enquiries. Customer satisfaction ratings for the contact centre have increased, and the council's website has seen improvements in user experience, with a reduced bounce rate and increased online case submissions.

Despite the positive trends, officers acknowledged that further investment in technology, processes, and staff is required to meet customer service ambitions. The report detailed successes in library and community hub engagement, including initiatives to support residents with the cost of living crisis and the development of new facilities like a makerspace. The library service is currently undergoing a review, with public engagement ongoing until March 2024. Officers also discussed plans for future improvements, including the potential implementation of a Library of Things service and the ongoing development of AI and automation within customer relationship management systems.

Procurement Legislative Changes

Michael Sprosson, Head of Procurement Services, provided an overview of the new Procurement Act 2023 and the NHS Provider Selection Regime (PSR). The Procurement Act, which received Royal Assent in October 2023 and is expected to be implemented in October 2024, aims to simplify and increase flexibility in public procurement processes. Key changes include a focus on value for money, maximising public benefit, and transparency, with new requirements for publishing notices throughout the procurement lifecycle and contract management. The Act also introduces a central Debarment List for excluded suppliers and allows for greater discretion in choosing procurement procedures.

The NHS Provider Selection Regime, expected to come into force on 1 January 2024, will replace existing procurement rules for healthcare services. It introduces three selection processes: direct award, most suitable provider, and competitive process, aiming to encourage collaboration and reduce bureaucracy. Officers outlined the council's preparatory work, including developing a local implementation plan, stakeholder engagement, and training analysis. They also offered to provide training to councillors on these significant legislative changes.

Quarterly Revenue Monitoring Report

Members agreed to move straight to questions regarding the Quarterly Revenue Monitoring Report, having read the documentation. Officers provided an update on the council's revenue forecast position for 2023/24, noting a projected adverse variance of £27.452 million after in-year savings and mitigations. The primary driver of this pressure is the increased cost of temporary accommodation, which accounts for a significant portion of the overspend.

Officers explained that departments are actively identifying in-year savings and undertaking deep dive reviews to manage expenditure. A task force has been established to address the temporary accommodation variance. The report also highlighted a projected overspend on the Dedicated Schools Grant of £2.623 million, leading to a cumulative deficit. Members discussed the use of reserves, noting that risk reserves are reducing rapidly and that significant action is needed to maintain financial resilience. The report also detailed progress on savings targets, with a projected shortfall in delivery.

Quarterly Capital Monitoring Report

In response to members' questions about the capital budget, officers confirmed that the total capital budget for 2023/24 is £283.1 million, with a forecast full-year outturn of £283.1 million. They explained that line-by-line monitoring reviews have taken place and that each director must present their spending to the Executive Management Team. Saving proposals totalling £17.4 million have been achieved.

Regarding the Journeys and Places programme, officers clarified that of the £4.2 million planned spending, £3.8 million would be funded by grants, £0.4 million from Section 106 and Community Infrastructure Levy (CIL) contributions, and £0.1 million from borrowing. Concerning the schools' capital programme, spending has been lower than anticipated, but this is not council-funded, and expenditure is based on assessed needs for building maintenance. Officers also explained that pipeline projects are subject to business case approval, that council borrowing is being reduced, and that spending is prioritised based on need and is subject to ongoing review.

Council Companies

Olga Bennet, Director of Finance: Capital & Commercial, introduced the report on council companies. Officers responded to members' queries regarding the performance and operations of Energetik, Enfield Lets, and Montagu 406 Regeneration LLP.

Work Programme 2023/24

Members noted the Finance and Performance Scrutiny Panel's work programme for 2023/24. The Chair requested that Cllr Savva, Cabinet Member for Social Housing, be invited to the next meeting. Cllr Georgiou asked for officer presentations to be kept brief.

Dates of Future Meetings

Members noted the dates of future meetings.