Difficult Choices: Delivering on the Council’s Priorities and Setting

Future Direction

Councillor Derek Mackay, Leader of Renfrewshire Council

David Martin, Chief Executive

Renfrewshire Council 2007-2010

What’s been delivered so far?

Renfrewshire Council in 2010

• Fiscal/Financial stability• Good Governance• Reputation and Influence• Strong Service Performance• Customer and Citizen Focus• Manifesto and Policy commitments• Major Projects and Programmes

Completed Projects 2007-10

Project Cost Site Start Completion Date

Gryffe HS refurbishment £6m August 2006 August 2007

Bushes PS refurbishment £3m July 2007 April 2008

Castlehead HS refurbishment £7.5m August 2007 August 2008

St Charles’ PS refurbishment £3m July 2006 December 2008

Seedhill Pavilion and Playing Fields £3m December 2008 October 2009

Penilee Pavilion and Playing Fields £3m January 2009 November 2009

Johnstone HS refurbishment £8m August 2008 December 2009

Renfrew HS refurbishment £9.5m June 2008 January 2010

Renfrew Health and Social Work £11.5m August 2008 March 2010

St Peter’s PS refurbishment £3m April 2009 April 2010

TOTAL £57.5M

There’s more to come....Council Housing

HRA Capital Programme

2010-11 2011-12 2012-13 2013-14 2014-2015 TOTAL

£16.529m £30.452m £31.212m £29.101m £29.792m £137.086m

Percentage/Number of houses achieving full compliance with SHQS

2010-11 2011-12 2012-13 2013-14 2014-2015

13% (1,636) 36.3% (4,587) 57.8% (7,301) 76.9% (9,702) 100% (12,622)

There’s more to come....Building Better Communities

Project Cost Estimated Site Start

Estimated Site Completion

Park Mains High School – new build £29.5m February 2011 July 2012

Johnstone Community Sports Hub - new build

£5.8m February 2011 March 2012

Paisley Community Sports Hub refurbishment

£6.3m February 2011 March 2012

Linwood Community Sports Hub – new build

£22.6m June 2011 December 2012

Kirklandneuk Primary School refurbishment

£5.2m January 2011 December 2011

St James’s Primary School – new build £16m June 2012 December 2013

TOTAL £85.4m

The Challenges Ahead

• Impact of recession and public spending

• Demand for services and demography

Scottish & UK Unemployment Rate

0

1

2

3

4

5

6

7

8

9

Perc

ent

Scotland UKSource: ILO.Three month rolling average.

Source: ILO.Three month rolling average.

0

2

4

6

8

10

12

14

16

18

% o

f GDP

0

10

20

30

40

50

60

70

80

90

% o

f GDP

Net Borrowing (Left Hand Scale) Net Debt (Right Hand Scale)

UK Public Finance Projections

Source: PBR 2009 and IFS and SG calculations

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

£ M

illio

ns

Source: PBR 2009 and IFS and SG calculations

Real annual change in the Scottish DEL Budget

Projected percentage change in Renfrewshire's population (2008 based)

© British Telecommunications plc

A new relationship with citizens?

Who do you think is at fault for causing obesity among children?

Who do you think is responsible for tackling obesity among children?

0 10 20 30 40 50 60 70 80

The parents of the individual

Food and drink manufacturers

Restaurants and fast food outlets

Schools

The individual

Supermarkets

The government

Not stated

None of these

Workplaces

Other

%

What does this mean for Renfrewshire?

• Significant cuts in funding anticipated in next spending review, and beyond

• Likely to mean an annual revenue grant cut in cash terms for Renfrewshire for each of next 3 years

• Very likely to be significant reductions in capital grant, and potential cap on borrowing

• Grant figures for 2011/12 not known until December 2010, at least

• Cost and demand pressures on services adding to the funding gap

• Funding gap could range from £55 million to £90 million for next 3 years

£75millionThe potential funding gap that theCouncil faces over the next 3 years

Urgent need to develop solutions andcreate capacity to deliver change.

Tackling the Challenges... Options and Choices

• Efficiency and productivity measures will help• Review priorities – jointly with Scottish Government• Sustain investment in prevention, e.g.

• early intervention• equally well• anti-poverty

• Pay strategy – across the public sector• Step up the pace with shared services/collaboration• Raise additional finance – taxes, charges• Manage public expectations• Consider different models of service delivery

Renfrewshire PLC – priorities for partnership

• Promoting Renfrewshire – loud and proud!

• Stay fully involved in town centre renewal

• Maintain investment and growth plans

• Maintain recent success in tackling worklessness, apprentices and training

• Smarter and more sustainable procurement

• Corporate social responsibility

• Share experience of change management

B. Enabling people to

create their own solution

C. Focusing on the

Essentials

A. Easy Access to

Great Solutions

“Choice”

“Value”“Flagship”

The Council

Service Delivery Options

Wholly Council Owned

Shared Services /

Collaboration

Capacity Insourcing / Managing

Agent

Input / Output Based

Consultancy,

Strategic Service

Partnership

Secondment, Joint Venture,

Limited Liability

Partnership, TUPE

Private Finance

Initiative (PFI)Outsourced

Council Ownership Shared Ownership

Council Control Council Influence

Risk Transfer

100% Public 100% Private

Service Delivery Options

Wholly Council Owned

Shared Services /

Collaboration

Capacity Insourcing / Managing

Agent

Input / Output Based

Consultancy,

Strategic Service

Partnership

Secondment, Joint Venture,

Limited Liability

Partnership, TUPE

Private Finance

Initiative (PFI)Outsourced

Council Ownership Shared Ownership

Council Control Council Influence

Risk Transfer

100% Public 100% Private

To sum up......Scale of the challenge:• At least 15% savings in real terms• Increased demand from demographic changes• Declining satisfaction?

How to tackle it:• Drive out cost in individual organisations• Join up across organisational boundaries• Develop a new relationship with the public

• We will, however, get it done!