Item 07 Budget Strategy by 9ZdMKlU

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									                                       Report for:
                                       DECISION

                                       Item Number:        07

Contains Confidential or No
Exempt Information
Title                    Budget Strategy including Proposals affecting
                         Employees across Several Service Areas
Responsible Officer(s)
                         Simon George
                         Director of Corporate Finance and Audit
                         Tel 020 8825 6193

                          Jacqueline Wiltshire, Director of HR & OD
                          Tel 020 8825 6250
Author(s)
                          Sonia Khan, Financial Strategy Manager
                          Tel 020 8825 6949

                          David Veale, Head of HR Consultancy
                          Tel 020 8825 7359
Portfolio(s)              Finance and Performance - Cllr Yvonne Johnson
For Consideration By      Cabinet
Date to be considered     29th November 2011
Implementation Date if    12th December 2011
Not Called In
Affected Wards            All
Area Committees           All
Keywords/Index            Savings, Budget, Revenue, organisational effectiveness,
                          cost-effectiveness, consultation, service improvement,
                          redundancies

Purpose of Report:

1.    To seek approval from Cabinet for budget proposals, relating to 2012/13 and
      2013/14, which were proposed as part of the 2011/12 budget review process
      and contribute to balancing the budget for those years.

2.    To seek approval from Cabinet for budget proposals, relating to 2012/13,
      2013/14 and 2014/15, which are proposed as part of the 2012/13 budget
      review process.

3.    To provide Cabinet with an overview of the numbers and types of posts
      affected by budget proposals for 2012/13.

4.    To seek authorisation from Cabinet to reorganise and/or reduce posts in
      service areas arising from budget proposals for 2012/13.




                                        1
1. Recommendations: It is recommended that Cabinet note or approve the
   following:

        2011/12 Budget Review Process
1.1.    Notes Adult Services savings proposals of £1.45M in 2012/13 which were
        part of the 2011/12-budget review process and were agreed by Cabinet on
        26th July 2011. They are being presented in appendix 1 of this report as part
        of a schedule of savings which feed into the budget model so the cash limit
        can be reduced accordingly (see para 4.1.3 and appendix 1).

1.2.    Approves savings proposals totalling £3.360M over the two-year period
        2012/13 – 13/14 (£2.512M in 2012/13 and £0.848M in 2013/14) as part of the
        2011/12-budget review process (see para 4.1.3 and appendix 1).

1.3.    Notes remaining proposals in development of £3.728M from the 2011/12
        budget review process (see para 4.1.6 and appendix 3)

        2012/13 Budget Review Process
1.4.    Notes that £29.9M savings were submitted as part of the 2012/13-budget
        review process. Of this, £5.539M savings were re-submitted proposals in
        development from the 2011/12 budget review process and contribute to the
        £55M target set by Cabinet as part of the 2011/12 budget review process
        over 2011/12 – 13/14. £24.360M were new savings and invest to save
        proposals which contribute to the additional £30M target set by Cabinet in
        June 2011 over the period 2012/13 – 14/15 (see para 4.2.2, table 4).

1.5.    Approves savings proposals totalling £27.429M over the three-year period
        2012/13 – 14/15 as part of the 2012/13-budget review process (see appendix
        1). Of this £5.539M relates to the re-worked proposals in development from
        2011/12 budget review process (see recommendation 1.4), £21.316M relates
        to new savings (total of £26.855M savings to be approved) and £0.574M to
        invest to save proposals (see para 4.2.2 and appendix 1).

1.6.    Notes remaining proposals in development of £2.470M from the 2012/13-
        budget review process (see para 4.2.4, table 3 and appendix 3).

1.7.    Approves savings proposals of £2.775M in 2012/13, which contribute to
        achieving savings on grants rolled into the formula grant as part of the
        2011/12 financial settlement (see para 4.3 and appendix 1).

1.8.    Approves growth proposals of £3.032M in 2012/13 as part of the 2012/13-
        budget review process (see para 4.5 and appendix 1).

1.9.    Notes savings already approved by cabinet (see para 4.1.2 and appendix 2).

1.10.   Notes that savings identified can be revisited if necessary, for example if
        additional information comes to light which is relevant to the Council’s
        equalities duties. If as a result of any consultation it is not appropriate to
        proceed with any proposal then alternative proposals will be considered in
        due course.


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        Staff savings from 2011/12 and 2012/13 budget review processes

1.11.   Notes the information on numbers and types of staff posts affected across
        service areas by budget proposals for 2012/13.

1.12.   Notes the proposals and rationale set out in addendum 1 and authorises the
        Director of Adult Services, to re-organise and/or delete posts arising from
        budget proposals in the Adult Services directorate and to make any
        amendments to the proposed staffing structures and/or the timetable for
        implementation as necessary arising from the consultation process.

1.13.   Notes the proposals and rationale set out in addendum 2 and authorises the
        Director of Children’s Services to re-organise and/or delete posts arising from
        budget proposals in the Children’s services directorate and to make any
        amendments to the proposed staffing structures and/or the timetable for
        implementation as necessary arising from the consultation process.

1.14.   Notes the proposals and rationale set out in addendum 2 and authorises the
        Executive Director of Children and Adults to re-organise and/or delete posts
        arising from budget proposals in the Children and Adults executive
        directorate and to make any amendments to the proposed staffing structures
        and/or the timetable for implementation as necessary arising from the
        consultation process.

1.15.   Notes the proposals and rationale set out in addendum 3 and authorises the
        Director of Regeneration and Housing Finance to re-organise and/or delete
        posts arising from budget proposals in the Regeneration and Housing
        Finance directorate and to make any amendments to the proposed staffing
        structures and/or the timetable for implementation as necessary arising from
        the consultation process.

1.16.   Notes the proposals and rationale set out in addendum 3 and authorises the
        Director of Corporate Finance and Audit to re-organise and/or delete posts
        arising from budget proposals in the Corporate Finance and Audit directorate
        and to make any amendments to the proposed staffing structures and/or the
        timetable for implementation as necessary arising from the consultation
        process.

1.17.   Notes the proposals and rationale set out in addendum 3 and authorises the
        Director of Human Resources and Organisational Development re-organise
        and/or delete posts arising from budget proposals in the Core HR directorate
        and to make any amendments to the proposed staffing structures and/or the
        timetable for implementation as necessary arising from the consultation
        process.

1.18.   Notes the proposals and rationale set out in addendum 3 and authorises the
        Director of Business Services to re-organise and/or delete posts arising from
        budget proposals in the Business Services directorate and to make any



                                           3
        amendments to the proposed staffing structures and/or the timetable for
        implementation as necessary arising from the consultation process.

1.19.   Notes the proposals and rationale set out in addendum 3 and authorises the
        Director of Legal and Democratic Services to re-organise and/or delete posts
        arising from budget proposals in the Legal and Democratic Services
        directorate and to make any amendments to the proposed staffing structures
        and/or the timetable for implementation as necessary arising from the
        consultation process.

1.20.   Notes the proposals and rationale set out in addendum 4 and authorises the
        Executive Director of Regeneration and Housing to re-organise and/or delete
        posts arising from budget proposals in the Regeneration and Housing
        Executive directorate and to make any amendments to the proposed staffing
        structures and/or the timetable for implementation as necessary arising from
        the consultation process.

1.21.   Notes the proposals and rationale set out in addendum 4 and authorises the
        Director of Safer Communities to re-organise and/or delete posts arising from
        budget proposals in the Safer Communities directorate and to make any
        amendments to the proposed staffing structures and/or the timetable for
        implementation as necessary arising from the consultation process.

1.22.   Notes the proposals and rationale set out in addendum 5 and authorises the
        Director of Customer Services to re-organise and/or delete posts arising from
        budget proposals in the Customer Services directorate and to make any
        amendments to the proposed staffing structures and/or the timetable for
        implementation as necessary arising from the consultation process.

1.23.   Notes the proposals and rationale set out in addendum 5 and authorises the
        Director of Environment and Leisure to re-organise and/or delete posts
        arising from budget proposals in the Environment and Leisure directorate
        and to make any amendments to the proposed staffing structures and/or the
        timetable for implementation as necessary arising from the consultation
        process.

1.24.   Notes the proposals and rationale set out in addendum 6 and authorises the
        Director of Marketing and Communications to re-organise and/or delete posts
        arising from budget proposals in the Marketing and Communications
        directorate and to make any amendments to the proposed staffing structures
        and/or the timetable for implementation as necessary arising from the
        consultation process.

1.25.   Notes the proposals and rationale set out in addendum 6 and authorises the
        Acting Director of Policy and Performance to re-organise and/or delete posts
        arising from budget proposals in the Policy and Performance directorate and
        to make any amendments to the proposed staffing structures and/or the
        timetable for implementation as necessary arising from the consultation
        process.




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1.26.   Notes that in respect of recommendations 1.12 to 1.25 inclusive, the relevant
        officers will consult on any significant alternative or amended proposals put
        forward as a result of consultation, with the Leader, the Portfolio Holder for
        Finance and Performance and the appropriate Portfolio Holder for the
        relevant service area.


        Other Factors affecting Medium Term Finance Strategy
1.27.   Notes the Governments proposals to localise support for council tax benefit
        from 2013/14 (para 4.6.3)

1.28.   Notes the Government has announced that they will provide a Council tax
        freeze grant to local authorities who freeze their 2012/13 Council Tax at
        2011/12 levels, providing additional funding of £3.1M for one year only (para
        4.6.4)

1.29.   Notes the New Homes Bonus allocation of £1.12M in 2011/12 (para 4.6.1)
        and to approve that this income stream (including future year’s allocations)
        be included within our overall revenue grant allocation.

1.30.   Notes the proposal of using savings in advance towards capital funding in
        2012/13 and 2013/14 as set out in Section 4.2.8.

Table 1 Summaries of Proposals can be found in relevant addenda as detailed
below. Addenda 1 – 6 are attached to this cabinet report. Equality Analysis
Assessments (EAA) can be found in Addenda 1a – 6a which are attached to this
cabinet report.


                                                  Addendum to      Cabinet
        Relevant service area
                                                  Report           Recommendation
        Adult Services
         Re-design of Older Persons
          Locality and Hospital Care
          Management Service                             1
         Reorganisation of Older Persons
1         Dementia Services                          EAAs for             1.12
         Reorganisation of Social Work            proposals in
          Team at Broadmoor                       Addendum 1a
         Forensic Mental Health – Wells Unit
         Disabilities – Reorganisation of Day
          Care Services
        Children’s Services
         Re-organisation of Social Work                 2
           Assistants in Leaving Care, Referral
2          & Assessment, Children in Need            EAAs for          1.13 & 1.14
           and Family Response                     proposals in
         Social Care Training &                  Addendum 2a
           Development

                                          5
         Gypsy, Roma & Traveller
          Achievement Team
         Reorganisation of Early Support
          /Key Worker Service and Portage
          Service
         Children’s Commissioning
          Performance Management


      Corporate Resources
       Core HR & OD
                                                       3
       Legal & Democratic Services –
        Transport
3                                                   EAAs for         1.15 to 1.19
       Legal & Democratic Services –
                                                  proposals in
        Litigation & Contracts
                                                 Addendum 3a
       Corporate Finance & Audit
       Regeneration & Housing Finance

      Regeneration and Housing                         4
       Asset Management
4                                                   EAAs for         1.20 & 1.21
       Landlord Services
                                                  proposals in
       Safer Communities                        Addendum 4a
                                                       5
      Environment & Customer Services
5      Customer Services Operations                EAAs for         1.22 & 1.23
       Leisure Services                          proposals in
                                                 Addendum 5a
                                                       6
      Chief Executive
6         Marketing & Communications               EAAs for         1.24 & 1.25
          Policy & Performance                   proposals in
                                                 Addendum 6a

2. Reason for Decision and Options Considered

2.1   This is the latest update for Members on the 2012/13 budget strategy and
      Medium term financial strategy, which details further savings and efficiencies
      that have been identified and reflects the impact of the government’s
      Spending Review, to enable Cabinet to develop and initiate budget proposals
      before finalising the budget and setting council tax levels in February 2012.

2.2   This report enables Cabinet to consider further budget proposals relating to
      2012/13 and 2013/14 which were proposed as part of the 2011/12 budget
      review process and contribute to balancing the budget for those years.

2.3   This report also enables Cabinet to consider budget proposals relating to
      2012/13, 2013/14 and 2014/15, which are proposed as part of the 2012/13
      budget review process and contribute to balancing the budget for those years.

2.4   The requirement to reduce budgets for 2011/12 to 2014/15 has driven service
      reviews that are still ongoing. The proposals in this report, which were

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          previously in development, will contribute to the savings agreed in the budget
          strategy.

2.5       Consultation with employees and the recognised trades unions, UNISON and
          GMB, commenced on 16th November 2011. Statutory consultation will
          continue for at least the minimum statutory consultation period of 90 days.

2.6       Any matching, assimilation and appeals should have been completed by mid
          February 2012. It is anticipated that any employees who are given notice of
          redundancy and have not been re-deployed would leave the Council from 16th
          May 2012 onwards. It is anticipated that service areas will implement
          proposals from 17th May 2012 onwards.

2.7       To achieve the challenging savings, the Council:

         Is looking at every service in the search for savings.
         Is considering all budgets and all sources of spending and income.
         Will realise "cross-cutting" corporate savings.
         Will invest where it will generate greater efficiency.
         Is conducting a review of management structures.


3. Key Implications

3.1.      Council Priorities

3.1.1 The budget process is designed to ensure that it is priority led so that
      resources are aligned with council priorities and the budget being set for
      2012/13, 2013/14 and 2014/15 are being prepared in line with the
      administration’s principles for the budget process set out at Council on 19th
      October 2010 as follows:

          Administration’s principles for the budget process

3.1.2 The Council must be responsible and balance our budget and to do this we
      must find savings from within our budgets. Whilst doing this we promise to
      prioritise the following principles:

3.1.3 The Council will make every effort to protect elderly, disabled, children and
      young people who are the most vulnerable residents of the borough;

3.1.4 The Council will make every effort to protect front line services by seeking to
      cut out waste, we will also seek to share services and share procurement;

3.1.5 The Council will consult on difficult decisions

3.1.6 The Council will seek to mitigate the impact any savings will have on
      employment within the council and the borough by reducing the use of
      agency staff and contractors and offering voluntary redundancy to our staff.


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    3.1.7 The Council will seek to distribute any cuts as equally as possible so that no
          one group has to unfairly bear the burden.


           Budget Challenge meetings

    3.2.   A series of confidential meetings were held in October with services to
           challenge existing base budgets and scrutinize budget savings and
           pressures. These meetings were led by the Leader of the Council, along with
           the Portfolio Holder for Finance and Performance, Chief Executive, the
           Executive Director of Corporate Resources and other Chief Officers. Cabinet
           Members and Executive Directors presented budget ideas for their services,
           some of which are now presented in this report for formal consideration and
           approval. Work continues on refining budget proposals within the context of
           reducing resources. The Council has a duty to produce a balanced budget
           and is currently on track to do so.

    3.3.   Members should note that the savings and growth proposals for 2012/13,
           2013/14 and 2014/15 are presented as incremental changes to 2011/12.

           For example a savings option that saved £200k in 2012/13, £250k in 2013/14
           and £250k in 2014/15 all relative to 2011/12 would be shown as:

               £k                2012/13                2013/14          2014/15
               Saving Option           200                    50                   -

    3.4.   A headline summary for staff savings proposals is given below in table 2.

    3.5.   Headline summaries of specific proposals related to staffing can be found in
           the addendums at the end of this report. An addendum list is summarised in
           table 1 above.

    Table 2 (Please note numbers below not yet finalised and subject to change)

                                             Proposed        Proposed     Proposed Post
                                             numbers         Posts        deletions covered
      Relevant service area
                                             of post         created      by agency staff or
                                             deletions                    vacant
1     Adult Services                              85.5             57                  9

2     Children’s Services                          24              9                   3

3     Corporate Resources                          31              21                  2

4     Regeneration & Housing                      141              128                 31

5     Environment & Customer Services              7               2                   2

6     Chief Executive                              22              14                  8

      Total                                       310.5            231                 55


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There are 300 employees “at risk” of redundancy.

Posts that are vacant or covered by agency staff and post creations will reduce the
number of compulsory redundancies. This is because it is anticipated that newly
created posts will be filled by employees at risk of redundancy once matching and
assimilation processes have been completed. Therefore, the actual number of
dismissals is anticipated to be a lot fewer than 300.

Headline summaries of specific proposals can be found in the addendums at the end
of this report. An addendum list is summarised in table 1 above.


4. Budgets and Business Plans 2011/12 to 2014/15

4.1.    Savings Proposals from the 2011/12 budget review process

4.1.1 Council set the 2011/12 budget on 1st March 2011 on the basis of £55M of
      savings being delivered over the 3 year period 2011/12 to 2013/14. On 7th
      June 2011, Cabinet set an additional budget savings target of £30M for the
      period of the Medium Term Finance Strategy, rolled forward one year to cover
      the three-year period from 2012/13 – 14/15. Thus, a total savings target of
      £85M has been set.

4.1.2 Of the £55M savings identified from 2011/12 – 13/14, £41M have been
      agreed by cabinet to date (appendix 2) with a further £14M of savings
      identified.

4.1.3 Of this £14M, Cabinet today are presented with £4.810M of savings (see
      appendix 1). Of this, Cabinet are requested to note £1.45M savings related to
      Adult Services, which have already been agreed by Cabinet but are
      presented for noting in this budget report so the cash limit will be reduced
      accordingly. Cabinet are also requested to approve £2.512M of savings and
      £0.493M of invest to save proposals, which totals £3.360M from the 2011/12
      budget review process (see table below).


       (Rec 1.1) Savings to be noted as they have already been
                                                                     £1.450M
       approved by Cabinet


       (Rec 1.2) Savings to be approved by Cabinet:
                                                                     £3.360M
       Savings £2.512M + Invest to save £0.493M = £3.360M

       TOTAL                                                         £4.810M


4.1.4 The £493K invest to save proposals is an increase to an Adults Invest to save
      proposal on placement reviews, which was originally approved on November
      30th 2010. The details are set out in Appendix 1.


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        4.1.5 Cabinet are also requested to note that £5.539M proposals from the 2011/12-
              budget review process are being completely revised and re-submitted as part
              of the 2012/13-budget review process.

        4.1.6    Cabinet are requested to note this leaves £3.728M remaining proposals in
                development from the 2011/12-budget review process which will be brought
                to Cabinet for approval at future dates (appendix 3). See table 3 below for a
                breakdown of these figures by years.

Table 3                                    2010/11       2011/12   2012/13     2013/14    TOTAL
                                            £'000         £'000     £'000       £'000      £'000
Savings & Invest to save approved by
                                              522        22,366     10,835      7,229     40,952
Cabinet to date already
Savings & Invest to save to be noted/
                                               -            -       3,962        848       4,810
approved by Nov 29th Cabinet
Total                                         522        22,366     14,797      8,077     45,762
Proposals in Development revised for
                                                                    1,168       4,371      5,539
2012/13 budget review process

Remaining Proposals in Development             -            -       1,160       2,568      3,728
Savings 11/12 budget review
                                              522        22,366     17,125     15,016     55,029
process

        4.1.7 Table 6 (para 4.2.5 below) summarises the savings approved by Cabinet to
              date and the savings put forward in this report from the 2011/12-budget
              review process by savings type.


        4.2.    Savings Proposals from the 2012/13 budget review process

        4.2.1 On June 7th 2011, an additional £30M target was set as part of the 2012/13
              budget setting process.

        4.2.2 Cabinet are requested to note that £29.9M of savings have been submitted
              during the 2012/13 budget review process. This includes £5.5M reworked
              proposals in development from the 2011/12-budget review process (see table
              3). Therefore, the net savings of £24.4M go toward the £30M target. See
              table 4 below.

        4.2.3 This report seeks Cabinet approval for a total of £27.429M which is £26.855M
              savings (that is £5.5M reworked proposals from 2011/12 budget review
              process and £21.3M from this year’s budget review process) and £0.574M of
              invest to save proposals as part of the 2012/13 budget review process (see
              appendix 1).




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    Table 4: Table to show savings submitted

                                                  To be        Proposals in         Total
Table 4
                                                approved       Development        Submitted
                                                 £’000            £’000             £’000
New Savings submitted                              21,316              2,470          23,786
New Invest to Save                                       574                  -             574
Total New savings                                  21,890              2,470          24,360
Reworked savings from 2011/12 budget
                                                    5,539                     -          5,539
review process
Grand Total                                        27,429              2,470         £29,899


    4.2.4 Cabinet are requested to note the £2.47M proposals in development from the
          2012/13 budget review process which will be brought to Cabinet for approval
          at future dates (see table 4 above and appendix 3).

    4.2.5 Table 6 on the next page summarises the savings for approval by savings
          type.


    4.2.6 Table 5 below summarises the savings for approval by Value for Money
          Programme Workstream.

                                                                     Total
    Table 5
                                                                2012/13 – 14/15      %
    Value for Money Workstream                                       £’000
    Managerial Reviews (M)                                           2,506           9%
    Lean Process Reviews (L)                                          142            1%
    Shared Service and Collaboration (SSC)                           3,118          11%
    Subsidy analysis ( I )                                           3,708          14%
    Channel Shift (CS)                                                339            1%
    Service Review (eg: Finance Review, procurement
                                                                     545            2%
    review.) (SR)
    Sub-total                                                       10,358          38%
    Do not fall into a Value for Money Workstream                   17,071          62%
    TOTAL                                                           27,429         100%




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                          Management      Increased    Contract   Efficiency   Service
Table 6                                                                                   TOTAL
                            savings        Income      Savings     Savings     Changes
                              £’000         £’000       £’000       £’000       £’000      £’000
                               (M)            (I)        ( C)        (E)         (S)      TOTAL
2011/12 budget review
Savings already
                              3,703         4,040       2,741      16,912      13,556     40,952
approved by Cabinet

Savings & Invest to
save to be noted/              640            -          100        1,641       2,429      4,810
approved by Cabinet

Proposals in
Development to be              680            -         1,160        802        1,086      3,728
noted by Cabinet

Sub-total                     5,023         4,040       4,001      19,355      17,071     49,490

Sub-total %                   10%            8%          8%         39%         35%        100%

2012/13 budget review

Savings to be approved
                              2,735         4,128       2,432       9,657       7,903     26,855
by Cabinet

Invest to Save to be
                                                                     574                       574
approved by Cabinet
Proposals in
Development to be              130            -         2,000        110         230       2,470
noted by Cabinet
Sub-total                     2,865         4,128       4,432      10,341       8,133     29,899
Sub-total %                   10%           14%         15%         34%         27%        100%

TOTAL                         7,888         8,168       8,433      29,696      25,204     79,389

% of total                    10%           10%         11%         37%         32%        100%


      4.2.7 Savings proposals identified for particular directorates can be revisited if
            necessary, for example, if further information arises that is relevant to the
            Council’s equalities duties.


      Implications of the £30M savings requirement

      4.2.8 Section 4 of the budget report to Cabinet 7 June 2011 sets out the value of
            the additional savings target of £30M required for the next 3 financial years to


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       March 2015 to balance the budget over the medium term. Members approved
       that officers be tasked to identify savings to achieve cash savings targets of
       £20M in 2012/13 and £10M in 2013/14 (see table 7).

       Table 7                                  2012/13      2013/14       Total
                                                Savings      Savings     Savings
       Directorate                               Target       Target      Target
                                                 £’000        £’000        £’000

       Children and Adults                       8,200        4,100       12,300

       Environment and Customer Services         5,200        2,600        7,800

       Regeneration and Housing                  1,400         700         2,100

       Corporate Resources                       4,800        2,400        7,200

       Chief Executive                            400          200          600

       Total                                    20,000        10,000      30,000
       The consequence of the strategy agreed by Members on 7 th June 2011 to
       achieve savings in advance of 2014/15, by March 2014, will give rise to
       surplus savings in 2012/13 and 2013/14 that can be deployed as Revenue
       Contributions to Capital in those years, addressing the Governments cut to
       capital grant funding, for example on the funding of additional school places.

       This opportunity of additional support for capital saves on borrowing costs,
       allows better planning in a climate of risk (e.g. funding beyond 2012/13) and
       provides a measure of budgetary stability to the Council, its residents and
       staff through a very difficult period.

4.3.   Savings for 2012/13 on grants rolled into Formula grant in 2011/12

4.3.1 In 2011/12, £20.461M of previously specific grants were rolled into the
      Formula grant. On 22nd February 2011, Cabinet agreed savings on these
      rolled-in grants of 12.3% in 2011/12 and 8.4% in 2012/13 in line with the
      reduction of Ealing’s formula grant. This equated to £4.025M overall -
      £2.518M in 2011/12 and £1.507M 2012/13 (see table 8A on next page).

4.3.2 Cabinet also agreed that due to difficulties for the Supporting People service
      to deliver full savings on its specific grants, that £1.528M of the £2.5M
      reduction needed for 2011/12 would be met from a projected underspend in
      2010/11 on Council wide budgets. This £1.528M would subsequently be
      deducted from the Adults service budget in 2012/13.

4.3.3 The budget model is based on the full £4M saving required.

4.3.4 As part of the 2012/13-budget review process, the services affected have
      submitted savings toward the 12/13 spending reduction of 8.4%. In addition,

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         Adults were asked to find savings of £1.528M to compensate for the 2011/12
         saving which was funded by the Council wide budget.

4.3.5 Cabinet is recommended to approve savings proposals of £2.775M as set out
      in table 8B below (see appendix 1 for the details).


Table 8B: Summary of savings required on grants rolled into formula grant (2012/13)

                                     12/13                 Adults
                              8.4% reduction in        reimbursement
 £’000                                                                     Total
                             specific grants rolled   to Council Wide
                              into formula grant            fund
 Target                             1,507                 1,528            3,036
 Savings submitted:
 Children’s Services                 206                    -               206
 Adults                             1,041                 1,528            2,569
 Total submitted                    1,247                 1,528            2,775
 Variance                            261                     -              261



4.4   Staff savings
4.4.1 Staff savings proposals are contained within the savings schedules in
      appendix 1.

4.4.2 Severance costs have been estimated and factored in to produce a net
      savings figure. Severance costs will reduce in direct proportion to the number
      of successful re-deployments, however, the number of redeployments cannot
      be predicted at this point in the process If an employee is successfully re-
      deployed there will be additional pay protection costs if an individual is
      redeployed into a lower graded role. In most cases, redeployees will be
      redeployed into roles within two grades of their current substantive grade. Pay
      protection will continue for up to four years in accordance with local terms and
      conditions. Departments have the option of funding severance costs over a
      period of up to five years maximum. In many cases, departments may take
      the severance costs over shorter periods.




                                           14
      Table 8A: Breakdown of £1,507K:

Table 8A                                                 Amount    Adjustm’t     Rolling
                                                          rolled   at 12.3%     Adjustm’t
                                                           into                  at 8.4%
                                                         2011/12
                                                                    (2011/12)    (2012/13)
                                                          £’000       £’000        £’000
Property & Regen.   Economic assessment duty                65          8            5
Property & Regeneration Sub-total                           65          8            5
Schools Services    LSC Staff transfer                     266          33           20
Children Services   Services for children in Care          457          56           34
Children Services   Child death review process              71          9            5
Children Services   Ongoing personal social services      1,748        215          129
                    Carers Grant (part of Ongoing
                    personal social services) – Adults
                    transferred £224K to Children
Children Services                                                                   19
                    Services during 11/12 on which
                    Children Services are required to
                    find 8.4% savings equalling £20K
Children Services Sub-total                               2,542        313         206
Adults              Supporting people                    11,125       1,368        820
Adults              HIV/AIDS                               299          37         22
Adults              Preserved rights                      1,303        160         96
Adults              Ongoing personal social services      3,273        403         241
                    Re-cycled Personal Social
Adults                                                    1,744         215        128
                    Services
Adults              Housing strategy for older people     110           14              8
                    Carers Grants (part of Ongoing
Adults              personal social services) – see                                (19)
                    Children Services above
Adults Sub-total                                         17,854       2,197        1,296

TOTAL                                                    20,461       2,518        1,507



      4.5.   Growth bids as part of the 2012/13 budget review process

      4.5.1 Cabinet are requested to approve £3.032M growth bids for 2012/13 across
            various departments as part of the 2012/13-budget review process (see
            appendix 1). They are summarized by department and growth type in table 9
            below.




                                              15
Table 9                                       2012/13 Growth by type
                           Reduced      Contractual       Other     Service
                            Income        Growth         Growth     Changes     TOTAL
                               (I)          (C)            (O)        (S)
 Department                  £'000          £'000         £'000       £'000      £'000
 Safer Communities                                                      85        85
 Built Environment            320                                      250        570
 Customer Services                                         60          136        196
 Environment & Leisure                        185                                 185
 Marketing &
                                                           56                      56
 Communications
 Council Wide                                             1,940                  1,940
 TOTAL                        320             185         2,056        471       3,032

4.6.   Developments impacting upon the Councils Medium Term Financial
       Strategy
       The local government finance settlement, including figures for 2012/13 was
       announced in January 2011. The finance settlement was only announced for
       a 2-year period covering 2011/12 and 2012/13 and therefore for budget
       planning purposes officers have modelled the 2013/14 and 2014/15 position
       on the Comprehensive Spending Review national figures. A more
       fundamental review of local government funding is expected from 2013/14 so
       outline assumptions can only be applied at this stage. Funding beyond
       2012/13 is much less certain. Government are currently consulting on the
       proposal for Council’s to retain their own business rates (see 4.6.2 below).
       The formula grant provided by government is estimated in the approved
       MTFS to be reduced by £24.5M over the next three years, of which £13M
       relates to 2012/13. Further reductions are included for planning purposes of
       £1.6M in 2013/14 and £9.9M and 2014/15.
       The following are developments impacting upon the MTFS.

4.6.1 New Homes Bonus - New Homes Bonus is an un-ringfenced grant. No
      assumption was built into the 2011/12 budget for this funding stream as
      details were unconfirmed when the Budget was set. The Council has received
      an allocation of £1.12M in 2011/12. New Homes Bonus Grant represents an
      additional funding stream to the MTFS. Based on this allocation, the total
      payment due to the Council for over six years will be £6.7M, which is being
      built into the Medium Term Financial Strategy. The Cabinet is requested to
      approve that this income stream be included as a general resource within our
      overall revenue grant allocation.

       In addition, there will be further allocations for future years based on annual
       new homes growth. The allocation for 2012/13 will be based on the net
       change in stock (per Council Tax records) for the year to October 2011.



                                         16
      Detailed modelling work on the likely future revenue streams is ongoing and
      will be incorporated into the Medium Term Financial Strategy.

4.6.2 Business rates retention - The government’s proposals for business rates
      localisation from 2013/14 were published by DCLG on 19 July. The aim is to
      allow Councils to retain business rates growth. The proposed system
      however waters down the benefits through the complicated and opaque
      nature of the proposed redistribution system to the extent that the Council will
      not only not reap the full benefits of growth but also make it very difficult to
      undertake effective financial planning over the medium to long term. No
      changes are being proposed to the financial forecasts in the medium term
      strategy at this stage as there are considerable gaps in detail, which make it
      difficult to project specific impact. The Council’s response to the consultation
      is set out in Appendix 5.

4.6.3 Localisation of council tax benefit administration - Proposals to introduce a
       local council tax benefit scheme from 1 April 2013 to deliver a 10% cost
       reduction in the cost of benefits are also out to consultation by the
       Government and a risk factor of £3.5M (c10% of our grant) is being built into
       the budget from 2013/14.

      The timescale that government has proposed makes it very challenging for
      Councils to implement strong and effective local schemes. Councils will need
      time to design and consult upon new schemes as well as sourcing and
      procuring appropriate new technology. The transition period, whilst changes
      are explained to current recipients of Council Tax support, will also be difficult
      and will be made more so if authorities are forced into making hasty
      decisions.

4.6.4 Council Tax Freeze grant for 2012/13 - Members will be aware that the
      Government previously introduced a Council Tax Freeze Grant for 2011/12
      equivalent to a 2.5% increase payable for the four years of the Spending
      Review period. The MTFS reflects this funding, which ends in 2014/15.

      On 3rd October the Chancellor announced an extension of the tax freeze
      grant to 2012/13. The Government has announced that they will provide a
      Council tax freeze grant equivalent to a 2.5% increase to local authorities who
      freeze their 2012/13 Council Tax at 2011/12 levels, providing additional
      funding for Ealing in 2012/13 of £3.1M but for one year only. The grant “winds
      out” in 2013-14, which is the same year the proposed reforms to business
      rates and council tax benefit are scheduled to come in. Council tax levels will
      have remained unchanged since 2008/09 in Ealing if the one-off freeze grant
      is accepted.

4.6.5 Icelandic Investment update - Following the decision of the Icelandic
      Supreme Court in October the Council now expects to receive the full amount
      of the £2M invested with Glitnir together with an as yet undetermined amount
      of interest.

      The winding up boards have yet to confirm when they will start making
      distributions to priority creditors although our legal advisers anticipate that the

                                          17
      process will begin shortly. It remains unclear how and when. However, our
      legal advisers are exploring all the options with the winding up boards.

      The way in which the Local Government Group and its legal advisors have
      coordinated the legal action with other local authorities, including Ealing, has
      minimised legal costs while enabling us to advance the strongest possible
      arguments to secure this result.

      In the statement of accounts the Council had taken a prudent approach and
      written off part of the £2M Icelandic investment. We now expect to receive
      the full £2M plus interest (the amount to be confirmed). The forecast amount
      to receive now is approximately £1.5m to £1.6m more than allowed for in the
      accounts.

5. Legal

(Please also see section 11 below: Equalities, Human Rights and Community
Cohesion)

In regard to the Council’s employment law duties
The proposals comply with the Council’s legal and contractual obligations to
employees.
Directors, including the Chief Executive, have the power to delete vacant posts and
create new posts within their service, within budgetary constraints.

Under s188 of the Trade Union and Labour Relations Act 1992, the Council has a
legal obligation to consult if there are proposals to dismiss 20 or more employees
(within 90 days of each other).

Employees have the right not to be unfairly dismissed. The Council’s policies and
practices reflect this right.      Contractual arrangements for matching and
redeployment will be applied to minimise the need for compulsory redundancies.

The Council has a legal obligation to make redundancy payments to any employees
with more than 2 years’ service who are dismissed by reason of redundancy. This
arises from the Employment Rights Act 1996 and contracts of employment.

Employees whose posts are deleted are contractually entitled to pay protection in
certain circumstances.

Service areas affected by proposals have completed EAAs in respect of their
proposals. These are contained in addendums 1a – 6a.


6.    Value for Money

The budget setting process addresses the Council’s performance in delivering
national and local priorities, and focuses on the needs of its communities. The
Budget process has required services to demonstrate this through detailed budget
submissions including benchmarking comparisons.

                                         18
The Budget proposals include examples of delivering Value For Money such as:
-Streamlining management structures.
-General efficiencies within services and departments
-Removing or reducing council subsidy from non-statutory services
-Rationalising building stock to achieve value for money from increased utilisation of
 assets
-Review of charges, maximising income opportunities

Where possible, savings proposals have been made that impact minimally on
service delivery despite the challenges presented by the medium term financial
strategy.

The Council consistently monitors performance and finance in tandem, to ensure
that value for money services are commissioned and provided and regularly adjusts
its activities, where improved performance and better value for money can be
achieved. The proposals contained within this report are set within this wider context
of improving performance and achieving better value for money.

7. Sustainability Impact Appraisal

There are no adverse environmental impacts arising from this report. All capital
budget proposals are required to set out how the proposal contributes towards
carbon emission reduction. Capital proposals will be considered at the February
cabinet meeting.

8. Risk Management

It is important that spending is contained within budget so that the Council can
maintain its financial standing in the face of further pressure on resources in 2011/12
and beyond set out in the annual review of the Medium Term Financial Strategy
(MTFS) in March 2011. The biggest risk to the budget process is non-delivery of the
approved savings for 2011/12, which is mitigated by close monitoring by officers
through the Financial Strategy Group and Corporate Board. The Council continues
to manage within its means and is projected to deliver a balanced budget for this
financial year to 31.3.12.

The Government’s proposal to allow Local Authorities to retain their business rates
from 2014/15, as set out earlier in this report, could also present significant volatility
to the Council’s core funding.

It is anticipated that service areas affected and HR will need to utilise significant
resource, particularly in the initial stages of the consultation with staff. This will be
required to support the additional consultation, communication and implementation
of re-organisation processes, such as matching and assimilation, required in addition
to business as usual.
Core HR have developed the following:



                                           19
      Resources have been pooled to facilitate the consultation process and
       ongoing support within service areas.
      Additional information has been prepared for employees “at risk” of
       redundancy to inform them of next steps in the reorganisation process and
       signpost them to sources of help and support.
      It is important that those that are to be made redundant are supported
       especially during their notice period. The Council already provides CV writing,
       interviewing skills and planning for retirement as part of its learning and
       development programme. Support for those to be made redundant
       (redeployees), has been reviewed and a “support package” described below
       is now in place.
      Co-ordination of redeployment activity across the Council.
      Two additional temporary HR Advisors focusing on one to one redeployment
       support and operational redeployment support activity.
      HR Link Advisors provide support for individual redeployees.
      Review and scrutiny of redeployment opportunities in liaison with service
       areas. A list of redeployment opportunities is issued on a weekly basis.
      Guidance for managers about redeployment.

A range of workshops helping redeployees deal with change, find best sources of
information to maximise chances of success in job search, information on how to
manage finances in a redundancy situation, one to one career coaching and access
to an on line data base with useful information and links to job portals.

9. Community Safety

There are no direct community safety implications as part of this report.


10. Links to the 5 priorities of the Borough

 Budget decisions impact on all Council strategies.
 The council’s medium-term financial strategy, budgets and capital programme are
 designed to deliver the Council’s 5 priorities.

 These are:

          Make Ealing Safer
          Secure our Public Services
          Secure Jobs and Homes
          Make Ealing Cleaner
          Deliver Value for Money

 The corporate business plan drives the medium-term financial strategy, with
 changes in allocations determined in accordance with policies and priorities. The
 proposed budget addresses the delivery of local and national priorities and the
 Council’s performance and focus on the needs of its communities. Effective

                                          20
 financial management supports the strategic objective for improved value for
 money and keeping council tax rises low.

 The following Corporate Plan themes are supported:

 Theme 15 – To deliver organisational efficiencies and value for money
 Theme 16 – To drive organisational improvement to maximise effectiveness


11. Equalities, Human Rights and Community Cohesion

Equality Analysis Assessments (EAAs) for proposals affecting staff are published as
addendums attached to this report.
Non-staff proposals have been assessed as to whether a full EAA is required at this
stage of the process. Where it has been assessed that a full EAA is required, the
full EAA has been published in appendix 4.
Some proposals recommended for noting or for approval in this report have had
EAAs published as part of other Cabinet reports. These are in the table below with
web links for access.




                                        21
EAAs – Reference list:
Dept         Appendix 1-                 Cabinet     Cabinet Paper & Item no        Title of EAA
                                         Date
             Saving Ref                                                             Link to EAA
Savings to be noted by Cabinet as part of 2011/12 budget review process
                                                                                    EAA (Appx 4): The impact on protected equality groups of
                                                                                    the proposed principles that will be used to determine
             Ref 1 Supporting People                                                continued funding of housing related support
             Sheltered Housing                       Item 08.
Adults                                   26/7/11
                                                     Supporting People Update       http://www2.ealing.gov.uk/ealing3/export/sites/ealingweb/s
             Ref 2 Supporting People                                                ervices/council/committees/agendas_minutes_reports/cabi
                                                                                    net/24may2011-15may2012/_26_july_2011/Item_08_-
             Sheltered Housing                                                      _EIA_-_Appendix_1v2.pdf
                                                                                    EAA (Appx 4): Funding of Voluntary and Community sector
                                                                                    services (VCS) for 2011 and beyond
             Ref 3                                   Item 14.

Adults       Commissioning               26/4/11     Funding of Voluntary and
                                                     Community Sector (VCS)         http://www2.ealing.gov.uk/ealing3/export/sites/ealingweb/s
             (VCS Grants)                            Services for 2011 and beyond   ervices/council/committees/agendas_minutes_reports/cabi
                                                                                    net/25may2010-23may2011/__26_april_2011/Item_14_-
                                                                                    _Appendix_4.pdf




                                                                    22
Dept         Appendix 1-                 Cabinet     Cabinet Paper & Item no           Title of EAA
                                         Date
             Saving Ref                                                                Link to EAA
Savings to be approved by Cabinet as part of 2012/13 budget review process
                                                                                       EAA (Appx 5) – To achieve savings against external grant
             Ref 1 Children Adolescent                                                 funding.
             Mental Health Services                  Item 9. Budget proposals for
                                                     2012/13 and 2013/14 (previously
Childrens                                  5/7/11
                                                     identified during the 2011/12     http://www2.ealing.gov.uk/ealing3/export/sites/ealingweb/s
             Ref 2                                   budget review process)            ervices/council/committees/agendas_minutes_reports/cabi
             Early Intervention Grant                                                  net/24may2011-15may2012/_5_july_11/Item_09_-
                                                                                       _Appendix_5.pdf
                                                                                       EAA (Appx 6) - Review of Sheltered Housing
Housing      Ref 1                                   Item 9. Ealing’s Offer to Older
General                                  26/7/11     tenants focussing on Sheltered
             Sheltered Housing                                                         http://www2.ealing.gov.uk/services/council/committees/age
Fund                                                 Housing
                                                                                       ndas_minutes_reports/cabinet/24may2011-
                                                                                       15may2012.html
                                                                                       EAA (Appx 4): Funding of Voluntary and Community sector
                                                                                       services (VCS) for 2011 and beyond
             Ref 1 -                                 Item 14. Funding of Voluntary
Property &
                                         26/4/11     and Community Sector (VCS)
Regen        VCS Grants                                                                http://www2.ealing.gov.uk/ealing3/export/sites/ealingweb/s
                                                     Services for 2011 and beyond
                                                                                       ervices/council/committees/agendas_minutes_reports/cabi
                                                                                       net/25may2010-23may2011/__26_april_2011/Item_14_-
                                                                                       _Appendix_4.pdf
                                                     Item 14. Award of Environmental    EAA (Appx 3): Award of Environmental Services Contract
                                                     Services Contract 2012            2012 (Environmental Services Procurement – contract to
                                                                                       deliver waste and recycling, street cleansing, grounds
                                                                                       maintenance and burial services)
Environ &    Ref 1 – Garden Waste
                                         26/7/11
Leisure      Ref 2 – Garden Waste                                                      http://www2.ealing.gov.uk/ealing3/export/sites/ealingweb/s
                                                                                       ervices/council/committees/agendas_minutes_reports/cabi
                                                                                       net/24may2011-15may2012/_26_july_2011/Item_14_-
                                                                                       _Appendix_3.doc




                                                                     23
In regard to equalities and human rights considerations
S 149 Equality Act 2010 requires public authorities to

       Have due regard to the need to:

      (a) eliminate discrimination, harassment, victimisation and any other conduct
      that is prohibited by the Act;
      (b) advance equality of opportunity between persons who share a relevant
      protected characteristic and persons who do not share it;
      (c) foster good relations between persons who share a relevant protected
      characteristic and persons who do not share it.
      The protected characteristics are
      age; disability; gender reassignment; pregnancy and maternity; race; religion
      or belief; sex; sexual orientation.

      Having due regard to the need to advance equality of opportunity between
      persons who share a relevant protected characteristic and persons who do
      not share it involves having due regard, in particular, to the need to:

      (a) remove or minimise disadvantages suffered by persons who share a
      relevant protected characteristic that are connected to that characteristic;
      (b) take steps to meet the needs of persons who share a relevant protected
      characteristic that are different from the needs of persons who do not share it;
      (c) encourage persons who share a relevant protected characteristic to
      participate in public life or in any other activity in which participation by such
      persons is disproportionately low.

      The steps involved in meeting the needs of disabled persons that are different
      from the needs of persons who are not disabled include, in particular, steps to
      take account of disabled persons' disabilities.
       Having due regard to the need to foster good relations between persons who
      share a relevant protected characteristic and persons who do not share it
      involves having due regard, in particular, to the need to:
      (a) tackle prejudice, and
      (b) promote understanding

Compliance with the duties in S149 may involve treating some persons more
favourably than others; but that is not to be taken as permitting conduct that would
otherwise be prohibited under the Act. The council’s equality analysis assessment
toolkit supports this approach.

The Human Rights Act 1998 makes it unlawful for public authorities to act in a way
that is incompatible with a Convention right. Anyone who feels that a public
authority has acted incompatibly with their Convention rights can raise this before
an appropriate UK court or tribunal.

The Human Rights Act protects a person from discrimination in the enjoyment of
those human rights protected by the European Convention of Human Rights. These
rights include the absolute right not to be subject to inhuman or degrading treatment,
the right to respect for their private and family life, their home and their
correspondence, which may only be restricted only in specified circumstances and

                                          24
the right to hold a broad range of views, beliefs and thoughts, and to follow a
religious faith. The right to manifest those beliefs may be limited only in specified
circumstances.

Discrimination occurs when a person is treated less favourably than another person
in a similar situation and this treatment cannot be objectively and reasonably
justified.

The Human Rights Act prohibits discrimination on a wide range of grounds including
‘sex, race, colour, language, religion, political or other opinion, national or social
origin, association with a national minority, property, birth or other status’.

The case law relating to this right has shown that the term ‘other status’ includes,
among other things, sexual orientation, illegitimacy, marital status, trade union
membership, trans-sexualism and imprisonment. It can also be used to challenge
discrimination on the basis of age or disability.

Service areas affected by the proposals have completed Equality Analysis
assessments (EAA) in respect of their proposals and are attached appendices to this
report. The EAAs are also considered during the consultation process.

Implementation of each of the proposals will follow the Councils processes, policies
and local terms and conditions to ensure fair selection, assimilation and recruitment
and to ensure on going monitoring of diversity.

In regard to the Council’s public law duties
When making decisions the Council must act reasonably        and rationally. It must take
into account all relevant information and disregard all      irrelevant information and
consult those affected, taking into account their views      before final decisions are
made. It must also comply with its legal duties, including   those relating to equalities
as referred to above.

12. Staffing/ workforce and accommodation implications

Ways of mitigating the impact of these changes on staff include:
Implementing a redeployment “support package”. (Please see section 8 above)
Any current recruitment requires the agreement of the relevant Executive Director
before it can be advertised. The impact of this has been to reduce external
recruitment to a minimal level of activity and reserved for hard to recruit or highly
specialised technical posts.
   Council has invited expressions of interest in voluntary redundancy (VR) across
    the Council throughout the Value for Money Programme. Employees are also
    invited to submit any interest by set dates within the various rounds of
    consultation. This resulted in over 76 voluntary redundancies during the last
    reorganisations, which significantly reduced the number of compulsory
    redundancies. A further message inviting expressions of interest in VR was
    announced in November 2011. When further proposals were made on 16th
    November 2011, those at risk were able to register expressions of interest in VR.
    Directors will be in a position from a service and cost point of view, to decide

                                          25
    which applications for VR to accept or not. These decisions will be taken during
    the consultation process. The decision to agree to VR rests entirely with the
    Council. There is no statutory right to voluntary redundancy.

   Throughout the Value for Money Programme, the Council is inviting expressions
    of interest for employees wishing to voluntarily reduce their working hours on a
    permanent basis. A number of people have now reduced their working hours.
    Where reductions are agreed, these can be implemented as soon as service
    requirements permit.

   Contractual assimilation and redeployment processes will be applied, where
    appropriate, to provide a fair and transparent means of moving staff to any new
    proposed organisation meeting contractual and legal requirements and providing
    for appeal processes.


13. Property and Assets
There are no direct property and assets implications as part of this report

14. Any other implications
For those proposals affecting staffing, a 90-day consultation period means that
proposals will have to be dealt with in a timely manner balancing the needs with
service area requirements and individuals affected.

15. Consultation
Statutory consultation began on 16th November 2011. Consultations with recognised
trades unions and individuals affected by proposals either has been or will be
conducted depending on the stage of development of the proposal.

In addition, consultation has begun or is about to start with service users where
relevant frontline services are affected by proposals. For example, consultation has
been progressing for several months with users of sheltered housing. Consultation
with other service user groups, where appropriate, commenced on 16 th November
2011.


16. Timetable for Implementation

Full Council will meet on 28 February 2012 to consider all budget proposals and
make the final decision on the budget and the Council Tax for 2012/13.


Key Activities: Budget Strategy                                           2012
Cabinet approves all budget proposals and considers further
budget options in the context of the final settlement and the      Feb
GLA precept
Full Council to set budget and Council Tax for 2012/13             28 Feb




                                          26
       A local timetable will be drawn up by the relevant service Director in consultation
       with the unions, to provide for consultation meetings, staff briefings, seeking
       volunteers (where appropriate), completion of matching and appeals and any
       competitive selection. This is targeted to be completed by mid February 2012.


       17. Appendices

Appendix 1

-   Savings to be noted/ approved from 2011/12-budget review process
-   Savings to be approved from 2012/13 budget review process
-   Invest to save to be approved from 2012/13 budget review process
-   Savings on Rolled-in grants (2012/13)
-   Growth to be approved from 2012/13 budget review process
-   Savings & Invest to save proposals already approved by Cabinet

Appendix 3

-   Proposals in Development (2011/12 budget review process).
-   Proposals in Development (2012/13 budget review process).

Appendix 4 – Full EAAs for non-staff related savings proposals

Appendix 5 – Council’s response to Localisation of Business Rates Consultation

There are 12 addendums (1 – 6 & 1a – 6a) containing people proposals attached to the report
in addition to the appendices listed above


       18. Background Information

       Report To Cabinet 7 June 2011 “2012/13 Budget Strategy and Process”
       2011/12 Budget Review
       2012/13 Budget Review




                                               27
      Key Activities: Staff Consultation
      Start of 90-day statutory consultation period - consultation with
                                                                           16.11.11
      recognised trade unions and individuals.
      Consultations within service areas continue with recognised
                                                                           17.11.11 onwards
      trade unions and individuals
      Cabinet meet to consider budget proposals affecting
                                                                           29.11.11
      employees.
      End of call-in period                                                12.12.11
      End of minimum period for statutory consultation                     17.02.12
      Earliest date that notices of redundancy could be issued.
                                                                           17.02.12
      Employees will be expected to work notice period.
      Notices expire on or after this date.                                17.05.12 onwards
      Earliest date redundant employees leave if not re-deployed
                                                                           17.05.12 onwards
      after working 3 months notice.
      Proposed date for implementing new structures                        18.05.12 onwards

      Consultation

Name of Internal      Department                         Date sent to     Date of  Comments
consultee                                                consultee        response appear in
                                                                                   report para:
Ian O’Donnell          Executive Director of
                       Corporate Resources
Simon George           Director of Corporate Finance     11.10.11                     Throughout
                       and Audit
Martin Smith           Chief Executive
Helen Harris           Director of Legal Services

(Jane Batalona)        Head of Legal SS & Education
Keith Townsend         Executive Directors
David Archibald
Pat Hayes
David Ewart            Directors of Finance
Adele Taylor
Nigel Watson           Assistant Director of             11.10.11         12.10.11    Throughout incl
                       Corporate Finance & Audit                          19.10.11    4.5
Cllr Yvonne Johnson    Cabinet Member for Finance
                       & Performance




                                                28
           Report History

Decision type: For information and action          Not an urgency item
Authorised by Cabinet member: Date report drafted: Report deadline:           Date report sent:


Report author and contact for queries:    Sonia Khan (Financial Strategy Manager) 0208 825 6949
                                          David Veale (Head of HR Consultancy) 0208 825 7359




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