Agenda item

Report of Corporate Director Resources and Transformation

Purpose of report

To seek approval for the next phase of Transformation to transition to the Cherwell Futures Programme. Following a comprehensive review by the Executive and analysis of progress made in 2024-25, the programme's focus has been strategically narrowed to focus on three priority areas: Planning, Environmental Services, and Customer Engagement (Single Front Door).

This approach will provide clear assurance on targeted savings and establish a definitive means of implementation. Depending on the full scope of the project agreed, it is anticipated to achieve between £3 million and £4 million in savings per annum over the medium term (6-18 months) from approval.

The report asks the Executive to allocate an initial £400k in funding to enable work on the priority areas identified, and to agree that a further £1.1m can be accessed subject to strict governance and oversight procedures. 

Recommendations

The Executive resolves:

1.1           To approve the Cherwell Futures Programme to prioritise the three key areas of Planning, Environmental Services, and Customer Engagement (Single Front Door), as the core focus for the next phase of work.

1.2           To approve the allocation from the Projects Reserve of £0.4 million to fund initial support and preparatory work required for the three prioritised areas noted in recommendation 1.1 above, together with transferring £1.1 million from the Projects Reserve to a new Cherwell Futures Reserve for implementation and resource costs, subject to Executive approval, as required by the Council’s Reserves Policy.

1.3           To approve the proposed delivery model referenced in section 4. This model aims to bring more project management in-house to reduce risk and maximise cost-effectiveness, using external support only where necessary.

Resolved

(1)            That the Cherwell Futures Programme to prioritise the three key areas of Planning, Environmental Services, and Customer Engagement (Single Front Door), as the core focus for the next phase of work be approved.

(2)            That the allocation from the Projects Reserve of £0.4 million to fund initial support and preparatory work required for the three prioritised areas noted in resolution (1) above, together with transferring £1.1 million from the Projects Reserve to a new Cherwell Futures Reserve for implementation and resource costs, subject to Executive approval, as required by the Council’s Reserves Policy, be approved.

(3)            That the proposed delivery model referenced in section 4 of the report, which aims to bring more project management in-house to reduce risk and maximise cost-effectiveness, using external support only where necessary, be approved.

The Corporate Director Resources and Transformation submitted a report to seek approval for the next phase of Transformation to transition to the Cherwell Futures Programme. Following a comprehensive review by the Executive and analysis of progress made in 2024-25, the programme's focus had been strategically narrowed to focus on three priority areas: Planning, Environmental Services, and Customer Engagement (Single Front Door).

This approach would provide clear assurance on targeted savings and establish a definitive means of implementation. Depending on the full scope of the project agreed, it was anticipated to achieve between £3 million and £4 million in savings per annum over the medium term (6-18 months) from approval.

The report asked Executive to allocate an initial £400k in funding to enable work on the priority areas identified, and to agree that a further £1.1m could be accessed subject to strict governance and oversight procedures. 

Resolved

(1)            That the Cherwell Futures Programme to prioritise the three key areas of Planning, Environmental Services, and Customer Engagement (Single Front Door), as the core focus for the next phase of work be approved.

(2)            That the allocation from the Projects Reserve of £0.4 million to fund initial support and preparatory work required for the three prioritised areas noted in resolution (1) above, together with transferring £1.1 million from the Projects Reserve to a new Cherwell Futures Reserve for implementation and resource costs, subject to Executive approval, as required by the Council’s Reserves Policy, be approved.

(3)            That the proposed delivery model, which aims to bring more project management in-house to reduce risk and maximise cost-effectiveness, using external support only where necessary, be approved.

Reasons

The refined Cherwell Futures programme represents a strategic and forward-thinking approach to service excellence, efficiency, and readiness for organisational change. The council has demonstrated its ability to deliver tangible results, with £1.8 million in savings already secured and approved. The proposed Phase Two represents a deliberate, low-risk pathway to build on this success and provides a credible roadmap to achieving between £3 million and £4 million in additional savings over the medium term.

The proposed initial allocation of £400k plus an additional earmarked £1.1 million is a critical and prudent investment. It will enable the council to initiate and drive the delivery of three high-priority projects, each with a clear potential for significant savings and service improvements. The robust governance structure and phased delivery model will ensure that public funds are managed responsibly and that the Executive retains control over the programme's direction, safeguarding service delivery through the need for a business case at each appropriate stage.

By approving this report and funding the next phase of the Cherwell Futures Programme, the Executive will enable the council to proactively address its financial challenges, protect essential services for residents, and prepare for a sustainable future within the new unitary authority framework, as a result of Local Government Reorganisation.

Alternative options

Option 1: Do Nothing

This approach would involve taking no decisive action to address the council's financial and operational challenges. Maintaining the status quo would result in a projected cumulative deficit of around £46 million by 2029/30. This would inevitably lead to greater service provision cuts and compromise service effectiveness, statutory compliance, and public trust, while failing to address underlying operational inefficiencies.   Savings will need to be delivered through traditional budget methods, likely leading to greater service provision cuts. The risks of inaction far outweigh the required initial investment.

Option 2: Minimal or 'In-House Only' Delivery

This model proposes that the council’s internal teams lead and deliver the transformation programme without any external support. While the proposed plan for Phase Two brings more delivery in-house, a purely in-house model is not considered feasible to deliver the required scale of change and pace of delivery. The current lean change capacity within the organisation is not sufficient to deliver the programme's ambitious objectives and realise the extent of savings identified. Given the urgent need to address the projected funding gap and meet government expectations for financial sustainability ahead of Local Government Reorganisation, a solely in-house approach would not be able to deliver the savings in the required timeframe.

Option 3: Full Partner Model

A single transformation partner model was initially considered to accelerate delivery and achieve “Speed to Value” across the Council’s savings proposals. While this approach offered potential for rapid impact, concerns were raised during the Executive in July regarding risk exposure and assurance of return on investment (ROI).

Further refinements to the model were explored and presented in August, but feedback from the Executive indicated continued reservations. These discussions highlighted the need for a more prudent and targeted strategy.

The revised approach now focuses on strengthening internal delivery capability and engaging external partners only where there is a clear, evidence-based need. This ensures a lower-risk, cost-effective model with stronger ROI assurance, supported by internal readiness assessments and robust business cases. Future partner engagement will be highly selective, designed to maximise value and align with organisational priorities.

Option 4: Achieve Savings Through Service Cuts

This option, which involves directly reducing or eliminating council services to achieve the required financial savings, is not recommended as the primary strategy for achieving savings. A strategy based on widespread service cuts would be detrimental to the community, directly impacting frontline service delivery, potentially compromising the council's ability to meet its statutory duties and significantly harming public satisfaction. While some service consolidation may be necessary in the future, the recommended approach of transformation seeks to improve efficiency and generate new income, thereby protecting core services rather than cutting them.