The Transformation Advisory Board met on Monday 19 February 2024 to discuss the LGA Corporate Peer Challenge Action Plan, the Medium Term Financial Strategy, and income generation. The Board reviewed progress on the action plan, noting that significant steps had already been completed, and discussed the council's financial strategy, including identified savings and risk mitigation measures. They also explored opportunities for increasing income generation across council services.

LGA Corporate Peer Challenge Action Plan

The Board reviewed the action plan developed in response to the Local Government Association's Corporate Peer Challenge. Kirsty Roberts, Strategy and Improvement Lead, presented the plan, highlighting that the Peer Review had been a wide-ranging and rigorous process. Significant actions, such as those concerning council accounts and the Annual Governance Statement, have already been completed, alongside initiating a review of the Mayor's Office structure. Key longer-term findings focus on the Medium Term Financial Strategy, a workforce strategy, improving relationships with partners, and accelerating the People First transformation programme. The Board discussed the importance of keeping the action plan as a live document to monitor progress and suggested that housing, homelessness, and the Housing Revenue Account (HRA) would be important areas for future review. Board members were asked to provide feedback on specific areas they would like to see discussed in more detail, particularly where their expertise could be valuable, to help plan future agendas.

Medium Term Financial Strategy

Julie Lorraine, Corporate Director of Resources, presented the Medium Term Financial Strategy (MTFS), outlining its headlines, which included a balanced budget position across the next three years, protection of statutory services, and risk mitigation measures. The Council has identified significant savings of approximately £43 million, with a particular focus on third-party contracts as a potential area for savings. Income generation is a key priority, with risk weighting mechanisms in place to balance opportunities against the risk of under-delivery. The budgeted use of reserves for the current financial year has been reduced from £20 million to £1 million. The strategy identifies commercial income, delivering the plan and agreed savings, and housing/homelessness as the three key risk areas. The Mayor, Lutfur Rahman, thanked officers and members for their work on the report. During the discussion, the Board noted that the council's technology strategy had not yet been fully explored and suggested caution regarding the success of income generation initiatives, emphasizing the need for adequate capacity to support these. Updates on the MTFS, particularly concerning high-risk areas, will be brought back to the Board.

Income Generation

The Board received an update on income generation, which was highlighted as a key priority for the Council's Medium Term Financial Strategy. The Council plans to implement a commercialisation strategy, with an early focus on venues such as the Registrars at St George's, Idea Stores, better utilisation of the Town Hall and other property assets, and arts, parks, and events. The Board was asked for advice based on members' experiences. Discussion points included the need for a clear list of high and low-risk income generation ideas, the potential of leisure centres as a significant income stream, and the importance of driving best value for the community rather than solely focusing on profit. Concerns were raised about administrative delays hindering new income generation ideas and the need to ensure support services are agile. It was also stressed that income generation should be a priority for all officers and that council members should understand its implications for council operations. Officers will provide more information on the income generation project, particularly regarding high-risk areas, and further reports on key areas like leisure will be presented.