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 opportunities. The Board reviewed progress on the Corporate Peer Challenge Action Plan, noting that significant actions had already been completed, and discussed the council's Medium Term Financial Strategy, which aims for a balanced budget over the next three years with significant savings identified. The Board also explored strategies for increasing income generation across various council services.

LGA Corporate Peer Challenge Action Plan

Robin Beattie, Acting Director of Strategy, Innovation and Transformation, presented the LGA Corporate Peer Challenge Action Plan. He highlighted that the review process was rigorous and that significant actions, such as the completion of accounts and the Annual Governance Statement, and the initiation of a review into the Mayor's Office structure, had already been achieved. Key longer-term findings focused on the Medium Term Financial Strategy, workforce strategy, relationships with partners, and accelerating the 'People First' Transformation programme. The Board was asked to identify areas where its specific expertise could be most valuable for future discussions. Members noted the good progress made and emphasised the importance of the action plan remaining a live document for monitoring. They also discussed the potential for the Board to serve as a useful forum for discussing key work areas, such as housing, homelessness, and the Housing Revenue Account, and suggested prioritising areas and developing overarching strategies.

Medium Term Financial Strategy (MTFS)

Julie Lorraine, Corporate Director of Resources, presented the Medium Term Financial Strategy (MTFS). The Board noted the strategy's aim for a balanced budget over the next three years, the protection of statutory services, and the identification of approximately £43 million in savings, with contracts with third parties being a particular focus for potential savings. The strategy also includes measures to mitigate risks, such as an £18 million risk reserve, and aims to fund all priorities and new growth without relying on one-off reserves for recurring revenue costs. The budgeted use of reserves for the current financial year has been significantly reduced from £20 million to £1 million. Key risks identified include commercial income generation, the delivery of the plan and agreed savings, and housing and homelessness. The Mayor commended the officers and members for their work on the budget. The Board suggested that the council's technology strategy could be transformational and advised caution regarding the success of income generation initiatives, ensuring the council has the capacity to support them. It was agreed that updates on the MTFS, particularly concerning high-risk areas, would be brought back to the Board.

Income Generation

Leah Sykes, Director of Customer Services, presented the Income Generation strategy. The Board was informed that increasing income generation is a key priority for the Council's Medium Term Financial Strategy, and the expertise of Board Members would be valuable in achieving these goals. The council plans to implement a commercialisation strategy, with initial focus areas including 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 their experiences. Members suggested identifying high and low-risk income generation ideas, focusing on leisure centres as a potential significant income stream, and ensuring that support services are equipped to quickly facilitate new income generation ideas. They also stressed the importance of driving best value for the community, not just profit, and making income generation a priority for all officers. It was also noted that Members of the Council need to understand the implications of these initiatives for the Council's operations. Officers were asked to provide more information on high-risk areas within the Income Generation project and to present further reports, particularly on leisure, to the Board. Board Members were encouraged to consider how they could support this work.