Agenda and draft minutes

To consider any appeals in accordance with Procedure Rule 25* of the Access to Information Procedure Rules (in the event of an Appeal the press and public will be excluded).

(* In accordance with Procedure Rule 25, notice of an appeal must be received in writing by the Head of Governance Services at least 24 hours before the meeting).

There were no appeals.

1  To highlight reports or appendices which officers have identified as containing exempt information, and where officers consider that the public interest in maintaining the exemption outweighs the public interest in disclosing the information, for the reasons outlined in the report.

2  To consider whether or not to accept the officers recommendation in respect of the above information.

3  If so, to formally pass the following resolution:-

RESOLVED – That the press and public be excluded from the meeting during consideration of the following parts of the agenda designated as containing exempt information on the grounds that it is likely, in view of the nature of the business to be transacted or the nature of the proceedings, that if members of the press and public were present there would be disclosure to them of exempt information, as follows:

  No exempt items have been identified.

There was no exempt information.

To identify items which have been admitted to the agenda by the Chair for consideration.

(The special circumstances shall be specified in the minutes.)

There were no late items.

However, member’s attention was drawn to the supplementary information on Item 7 Medium Term Financial Strategy, the latest in year financial health report was circulated as supplementary information due to publication deadlines for this meeting in relation to similar papers being considered by Executive Board on 16 October 2024.

To disclose or draw attention to any interests in accordance with Leeds City Council’s ‘Councillor Code of Conduct’.

There were no declarations of interest.

To receive any apologies for absence and notification of substitutes.

Apologies received from:

Cllr Andrew Carter with Cllr Simon Seary attending as substitute

Cllr Wyn Kidger

To confirm as a correct record, the minutes of the meeting held on 16 September 2024.

Resolved - That the minutes of the previous meeting held on 16th September 2024 be approved as a correct record.

To consider a report from the Head of Democratic Services that sets out the Council’s Medium Term Financial Strategy 2025/26 to 2029/30 and also provides the month 5 in year financial health monitoring report.

Appendix 2 – Financial Health Monitoring Month 5 – to follow as supplementary information

The Board considered a report from the Head of Democratic Services that set out the Council’s Medium Term Financial Strategy (MTFS) 2025/26 to 2029/30 and also provided the month 5 in year financial health monitoring report.

In attendance for this item were:

·  Cllr Debra Coupar Executive Member for Resources

·  Victoria Bradshaw, Interim Assistant Chief Executive – Finance, Traded Services & Resources

·  Andy Dodman, Interim Assistant Chief Executive – People, Digital & Change

To support this item a presentation was made covering the following key points:

·  The projected budget gap over the next three years which is a total of £194.5m of which £106.7m relates to 2025/26 which is largely caused by demand and inflationary led pressures in children and families and adults and health budgets. The current financial challenge is the largest the Council has faced in recent years.

·  A summary of the assumptions contained in the MTFS such as core government funding remaining frozen, assumptions around business rates growth and council tax non-collection rates and planned increases in Council Tax rates which are assumed at 2.999% for the core increase and 1.999% for the ASC precept.

·  Other assumptions for 2025/26 include the staff pay award at 3.5% and Real Living Wage +£0.88/hr totalling a pressure of £18m and a further £49.1m in demand and demography pressures.

·  Details on £37.4m of savings proposal for 2025/26 that were recommended to Executive Board on 16 October for consideration and approval. These proposals include further saving proposals for future years to assist with planning over a 3 year period.

·  In the current financial year the position has stabilised with the projected overspend at £22m, a small reduction on the previously reported £22.2m. Work continues within directorates to continue to find savings and mitigate pressures with a focus on Staffing and critical spend only.

·  If the existing staff pay award is accepted there would be an additional budget pressure of £2.3m.

Responding to comments and question from Board members the following issues were discussed:

·  On the staff pay award the Board asked about how much each percentage point increase costs the authority. The Board were informed that 1% equates to £4m cost to the Council so £400K per 0.1% in salary increase. The proposed pay award for 2024/25 is actually a lump sum offer of £1,290 per staff member so the percentage increase can vary based on the existing salary.

·  The Board asked about the difference between the saving plans set when the budget was set and the pressures that have emerged which are in year pressures. The Budget is set each year in December and in between that time and the start of the financial year further pressures emerged which create in year pressures to be mitigated with further savings.

·  The Board heard that if savings are not achieved on the in year pressures in 2024/25 these will be funded through the strategic contingency reserve which was established to manage unforeseen budget pressures. If the strategic contingency is fully utilised in year then there will  ...  view the full minutes text for item 42.

To consider a report from the Head of Democratic Services which provides an update on the progress of the Core Business Transformation Programme - a programme which aims to transform and modernise ‘back office’ services and is underpinned by a technology refresh; replacing essential, business-critical corporate systems that have reached ‘end-of-life’ in terms of contractual arrangements, support and maintenance.

The Board considered a report from the Head of Democratic Services which provided an update on the progress of the Core Business Transformation Programme - a programme which aims to transform and modernise ‘back office’ services and is underpinned by a technology refresh; replacing essential, business-critical corporate systems that have reached ‘end-of-life’ in terms of contractual arrangements, support and maintenance.

In attendance for this item were:

·  Cllr Debra Coupar, Executive Member for Resources

·  Victoria Bradshaw, Interim Assistant Chief Executive – Finance, Traded Services & Resources

·  Andy Dodman, Interim Assistant Chief Executive – People, Digital & Change

·  Suzanne Hopes, CBT Programme Manager

The Core Business Transformation Programme Manager introduced the report setting the overall aims and ambitions and phases and timescales associated with the programme.

In response to comments and questions from board members the following issues were considered:

·  In response to a question on the £3m contingency budget and the reasons why this has been needed the Board heard that due to the complexity of the programme, particularly around the new finance system, there has been a need to integrate over 50 other existing systems into one and as a result there has been a requirement for additional resource to make sure that the solution meets the business needs of the Council. This has also led to a need for more time to deliver the new system and a review of the timeline for the programme which has gone beyond the initial plan to deliver the finance system within 12 months.

·  In addition, there has been wider workload pressures within financial services linked to audit deadlines and the wider requirement to meet the budget challenge being faced by the Council. There has been a commitment to getting the solution right and that it delivers what is needed for the Council.

·  The Board asked about workload pressure and wider plans to reduce staff. The new systems will enable the Council to streamline processes and reduce overall workloads through a reduction in manual processing. The efficiencies from the new system are not expected until the system has gone live once this is operational, efficiency savings will be possible through review of workflows and a focus on efficiency.

·  The Chair asked about savings that might be delivered once the new systems are operational. In response the Board were informed that the savings have not yet been fully isolated and are expected to be identified after the new systems are operational and improvements in how people work can be fully identified. It is expected that once quantified the savings will be reported through the directorate savings proposals that come through the budget setting process. The Board noted that the programme is about savings and also about the need to modernise and deliver new systems particularly in finance where the existing system was considered to have reached ‘end of life.’

·  Members asked about the well-being of the project team and the workload pressures they have faced. The Board were informed that this has been a focus of  ...  view the full minutes text for item 43.

To consider a report from the Interim Assistant Chief Exec Finance, Traded and Resources on the Council’s new procurement strategy setting out progress to date and next key steps.

Members considered a report from the Interim Assistant Chief Executive Finance, Traded and Resources on the Council’s new procurement strategy setting out progress to date and next key steps.

In attendance for this item were:

·  Cllr Debra Coupar, Executive Member for Resources

·  Victoria Bradshaw, Interim Assistant Chief Executive – Finance, Traded Services & Resources

·  Andy Dodman, Interim Assistant Chief Executive – People, Digital & Change

·  Lewis Sinkala, Head of Procurement

To introduce this item a presentation was made by the Head of Procurement which covered the following points:

•  Key principles of the existing procurement strategy which are Value for money and efficiency, Governance, Social Value, Commercial Opportunities, Strategic Supplier Engagement and Contract Management. These are underpinned by Procurement Enablers such as training and support for staff through qualifications, exploiting digital technology such as the procurement system and P2P, embracing innovation in procurement and embedding change into the organisation.

•  The work done to date on reviewing the procurement strategy including an assessment of progress made since the current strategy was launched in 2019. The assessment has identified that there has been progress in key areas since the launch of the existing strategy.

•  A SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis on the team and the new procurement strategy.

•  The new procurement strategy will build on key areas from the existing strategy but is likely to include key principles such as continuous improvement and culture, recruitment and retention.

•  The timelines for the new strategy with rollout planned for May-June 2025 which will include an opportunity to review and reflect any adjustment made to the new Procurement Act by the new Government.

In response to comments and questions from the Board the following issues were covered:

·  Members asked about training for staff on contract management and procurement and the need to increase professional training for those doing contract management. It was agreed that this would come back and feature in follow up reports to the Board. In addition, the board is developing contract management training to support staff which will cover all contract managers.

·  The Chair asked about the delay in the implementation of the Procurement Act and what impact that will have on the service. In response the board heard that the Council is moving ahead with plans to respond to the Act and although there is now a four month delay the service is still working on it and is on a par in terms of comparison with other local authorities in the region in terms of being prepared.

·  A member raised concerns about the contracts for street lighting and Christmas tree provision through community committee funds. It was agreed that this would be picked up outside the meeting to get the specifics of the concern.

·  Members asked about savings targets given that external procurement totals approximately £1bn annually. In response the Board were informed that work is ongoing with directorates on contracts and there is an estimate that a 1% saving would generate £11m in savings. The  ...  view the full minutes text for item 44.

To consider the Scrutiny Board’s work programme for the 2024/25 municipal year.

The Board considered the Scrutiny Board’s work programme for the 2024/25 municipal year.

The Principal Scrutiny Adviser introduced the report setting out the Work Programme at Appendix 1 and September Executive Board minutes at Appendix 2.

In addition, a budget working group has been set up for 9 December 2024 to follow the next public meeting of the Board on the same day.

Resolved - Members noted the Board’s work programme for the 2024/25 municipal year.

The next public meeting of the Board will take place on 9 December 2024 at 10.30am. There will be a pre-meeting for all board members at 10.00am.

The next public meeting of the Board will take place on 9 December 2024 at 10.15am. There will be a pre-meeting for all board members at 10.00am.