INTEGRATED PLAN PART B - STRATEGIC DIRECTION AND … · Working, Next Generation and Future Workforce to support a sustainable workforce and working environment. Resources will also

INTEGRATED PLAN

PART B - STRATEGIC DIRECTION AND FINANCIAL CONSEQUENCES

Resources and Performance Portfolio

Contents Page

Portfolio on a Page 190 - 191

Section 1: Future Strategic Direction

• Key priorities for the portfolio over the period 2020/21 - 2023/24 192 - 193

• Key pressures and challenges facing the portfolio for 2020/21 - 2023/24

193 - 194

• Key projects/programmes that the portfolio will deliver 2020/21 - 2023/24

194 - 198

• Benchmarking and other information used in setting Strategic Direction and assessing service outcomes

198 - 199

• Key Risks, mitigation and resilience plans 199

Section 2: Revenue Budget Information

• Key Budget Movements: o Technical Adjustments o Exceptional Inflation o Pressures o Savings

200 - 207

• Revenue Budget by Objective Area 208 - 211

Section 3: Capital Programme 212 - 219

IP Part B: Strategic Direction - Resources & Performance 189

Resources & Performance Portfolio

Strategic Direction:The department’s strategic priorities are:1) Providing corporate services to enable the delivery of departmental services and projects2) Delivering citizen services to support engagement, wellbeing and self-service within the community3) Leading on the future sustainability of the organisation through collaboration and innovation and the delivery and support of major change initiatives4) Leading on and promoting the existence of good governance in all aspects of the organisation

Key services provided:• Support services including; Assurance, Finance,

HR, Improvement & Technology, Procurement, Property, Legal, Democratic & Member services, Communication and Policy support.

• Citizen focused services for Births, Deaths, Marriages and Citizenship Services, Support to the Coroner, delivery of school meals through Herts Catering Limited and the supplies service HertsFullstop

Key priorities and programmes:• Transformational change initiatives including Apsley

2020, the Office Accommodation Strategy, Smart Working, Next Generation and Future Workforce.

• Leading on an effective People Strategy to deliver a high performing, engaged & committed workforce.

• Maximising the use of public sector assets to drive out efficiencies and generate ongoing revenue streams.

• Funding – Drive forward strategic financial planning and proactively respond to changes to funding.

• Development of key transformation proposals

Key risks in achieving IP proposals:• Continuing to attract, recruit and retain an

effective workforce

• Organisation capacity and capability to deliver a wide range of key projects/programmes

• Changes in funding and grant announcements, including new Spending review, and volatility of and changes to local business rates system

• Wider inflation, interest and borrowing rate risks post Brexit

• Ability to market assets and secure revenue streams


Resources & Performance Portfolio

Key Capital Schemes:• Energy Generation Project• Delivery of Infrastructure for Brookfield

Riverside/Garden Village• Office Accommodation Strategy

Key Revenue Pressures:• Property – health and safety work following recent

inspections• Herts Fullstop – delay in increased revenue• Technology – SAP licensing – upgrade of HR

modules• Core SMS application Support charges from

additional applications• Technology – end of free-to-use Java software and

move to a perpetual licensing model

Key Revenue Savings Proposals:• Additional income from HCL and HLL• Alternative delivery model for Library Service• Legal efficiency savings• Property – savings on car park costs at Stevenage• Finance – additional income from supporting pooled

budgets

2020/21£m

2021/22£m

2022/23£m

2023/24£m

Capital Programme 56.172 58.919 49.547 23.226

Capital Investments 36.933 34.495 25.427 -

Summary Revenue Budget Movements

2020/21£m

2021/22£m

2022/23£m

2023/24£m

Technical Adjustments (0.500) (0.500) (0.500) (0.500)

Service Specific Inflation 0.204 0.392 0.575 0.760

Reversal of time limitedexpenditure (4.761) (4.761) (4.761) (4.761)

Legislative 0.040 0.040 0.040 0.040

Other Pressures 20.451 24.017 31.535 37.606

TOTAL PRESSURES 15.730 19.296 26.814 32.885

Existing Efficiencies (0.817) (3.231) (4.404) (4.193)

New Efficiencies (2.046) (5.336) (7.223) (19.816)

TOTAL SAVINGS (2.863) (8.567) (11.627) (24.009)

-20.040.060.080.0

100.0120.0140.0160.0

2019/20 2020/21 2021/22 2022/23 2023/24

£m R&P Net Revenue Budget


Resources and Performance Portfolio: Future Strategic Direction

1 What are the key priorities for the portfolio over the period 2020/21 - 2023/24?

The Resources Department provides support to the whole organisation through the delivery of vital corporate and front-line services. These services enable departments to manage and deliver a range of services to staff and the citizens of Hertfordshire as well as supporting vital transformational change projects and initiatives.

The department can be categorised into the following three areas: - Corporate & Enabling services - Citizen Engagement and Customer Service - Oversight/sponsorship of Commercial and Traded Services

Information on Libraries is included in the Education, Libraries and Localism Portfolio.

The net total departmental budget for 2019/20 was £70.630m and £27.76m of savings have been achieved between 2010/11 and 2019/20. A further £2.1m of savings are already assumed in the baseline figures for 2020/21 rising to £11.2m by 2023/24.

A proportion of the service is carried out through third party providers and managed under contract including pensions’ administration, payroll, occupational health, IT support and development, HR and finance transactions, temporary staff recruitment, facilities management and some property services (Leasehold and empty property management & maintenance, valuation services, capital projects delivery and project management). Approximately 35% of the gross Resources budget is spent on these outsourced services.

Resources has a key role in supporting the Council’s departments to improve services and make savings enabling the Council to continue to operate within increasingly difficult financial circumstances. In key areas of the service such as technology we will need to sustain the capacity of our teams in order to drive change; this may increase the pressure to drive out savings in other areas of the service to meet the authority’s funding gap.

The department’s strategic priorities are:

1) Providing corporate services to enable the delivery of departmental services and projects 2) Delivering citizen services to support engagement, wellbeing and self-service within the community 3) Leading on the future sustainability of the organisation through collaboration and innovation and the delivery and support of major change initiatives 4) Leading on and promoting the existence of good governance in all aspects of the organisation


Our priorities over the medium term are to:

1. Be proactive enablers of change – providing leadership, direction and support to drive transformation and improvement. This includes;

• Effective delivery of new transformational change initiatives including Apsley 2020, the Office Accommodation Strategy, Smart Working, Next Generation and Future Workforce to support a sustainable workforce and working environment.

• Making the most of our property, office and service accommodation portfolios, including through the Councils property company, Herts Living Ltd and Smart Working

• Using outcome driven technology to respond to fast-changing digital opportunities

• Having a high performing, engaged, and committed workforce

2. Ensure that Resources Directorate meets the needs of the organisation, provides best value for money and enables our frontline services to continue to provide effective services. We will continue to review our structures and ways of working to ensure that we are as efficient as possible and can effectively support the changing needs of the organisation.

3. Proactively respond to and manage changes to government funding and other policy changes, including future changes to Business Rates and the value of the Settlement Funding Assessment (target government funding level).

4. Support the Council’s delivery of projects and programmes, including introducing a new Council wide approach to delivering and managing transformation

5. Enable effective internal and external communication and engagement with other citizens and partners

6. Support and enable the role of Members.

2 What are the key pressures and challenges facing your portfolio for 2020/21 - 2023/24?

• As the provider of Support Services to the organisation the Resources Directorate needs to ensure that it responds to the ever changing needs of departments whilst continuing to identify opportunities to deliver savings and other efficiencies. It is clear that the need for departments to respond to changes, transform and to deliver savings is ever increasing. This in turn places extra demands on Resources to help support the organisation in delivering this change, but this must be balanced against the overall value for money for the department.

• Ensuring that the organisation uses the best technology to improve efficiency and productivity, and engagement with its citizens. This will include use of the most appropriate fit for purpose technology including cloud services and ensuring safe and effective transition of any changes. It will also involve maximising digital opportunities with a user-focussed end to end service re-design, exploiting data analysis to tailor services and pre-empt trends and needs


and efficiencies around ways of working; as set out in the County Council’s three-year Digital Roadmap.

• Supporting the council in tackling the financial challenges outlined in the Integrated Plan, and delivering financial sustainability over the medium term.

• Responding to changes in funding; in particular the risks and opportunities associated with changes to funding regimes including Business Rate localisation. In addition, there is an increased risk of more schools becoming Academies and insufficient funds to meet the needs of the remaining schools.

• Ensuring that we continue to support the organisation to deliver the People Strategy and associated workforce plans, to ensure that we maintain the capability and capacity to deliver current and future outcomes and we continue to attract, recruit and retain people with the right skills, abilities and values, particularly in key shortage skill areas including Social Work, Planning, Digital and Legal.

• Ensuring that we have the resources, knowledge and skills to support changes in the way we operate, including the development of the property company (Herts Living Ltd), the transfer of Library services to a new charitable Trust, and other similar opportunities.

3 What are the key projects/programmes that the portfolio will deliver 2020/21 - 2023/24?

Procurement – ensuring we have effective procurement and contracts management arrangements in place across the council. Enabling the effective review and procurement of Directorate contracts; including the Shared Managed Services (SMS), Pension Fund administration contracts. Embedding work undertaken to date on supplier monitoring and working to support the emerging Sustainable Hertfordshire Strategy, including through work such as the Energy Strategy, Energy generation programmes, Pollinator Strategy and Sky Lantern and Balloon release policy.

Funding and financial planning – Resources will continue to support the organisation in delivering medium term financial sustainability. In a period of significant uncertainty over future funding levels, this includes taking a view of financial challenges faced and developing options to meet these challenges. We will proactively respond to proposed changes to Business Rates (NNDR) and central government funding to ensure that the impact for HCC is understood and informs Medium Term Financial Strategy. .

Transformation – Develop and drive forward new transformational change initiatives including Apsley 2020, the Office Accommodation Strategy, Smart Working, Next Generation and Future Workforce to support a sustainable workforce and working environment.

Resources will also ensure there is a holistic view and management of these and wider departmental change programmes. Spanning across all services within the council, the Transformation programme ties together all major ‘change’ initiatives that are looking to transform how the council works and delivers services. Whether this is reviewing a service, how systems support delivery or how staff are able to conduct their jobs in a more effective and flexible manner, the council will rely on all


of these elements and subsequent programmes being delivered to ensure that it remains ‘rock solid’ now and into the future.

In the context of this strategy there is a clear ambition to have a more efficient workforce by providing staff with better tools, more flexible working environments and to develop the skills that are required in an ever-changing world.

Whilst the programme includes a number of projects and initiatives, each with their own delivery deadlines, transformation is ongoing and the programme will look to set up future stages of review, including our workforce.

There are many projects and programmes already in flight with compelling business cases contributing to these aims, and many others we still need to initiate at the right time.

Assurance – The individual parts of the Service continue to consider opportunities for expanding their customer base e.g. further work from Academies and other Districts and Boroughs with a view to generating further revenue surplus contributions or by reducing charges in relation to Partnership Services (SIAS & SAFS).

Legal Services – supporting the Council to achieve its objectives, particularly providing specialist and focussed support for major initiatives, taking the opportunity to develop shared service arrangements where appropriate, engagement with client departments to manage in conjunction with them increasing demands for legal advice and development of initiatives (e.g. on line resource hubs) to reduce the reliance on Legal Services.

Information Governance – continue to support the Council with GDPR compliance and access to information requirements.

Coroner Service - continued development of the case management system to enable electronic referral of sudden deaths and electronic signing and distribution of post-investigation documents to improve service to the bereaved and efficiency.

Registration & Citizenship Service – continued development of customer online appointment and ceremony booking, and development of online payment system to improve customer service and service efficiency. Identifying further opportunities to generate income to improve efficiency.

County Council Election 2021 – prepare for the County Council Election 2021

Customer Service - the new Hertfordshire.gov.uk website has been live for three years, achieving best website award at the UK Public Sector Communications Awards last year and the highest rating from society for IT manager in the public sector. The new website has supported a reduction of contacts to the Council’s Customer Service Centre and its associated cost. The number of contacts (email and phone calls) to the Customer Service Centre has reduced year on year with 743,792 contacts in 2016/17, 699,647 contacts in 2017/18 and in 2018/19 these have reduced further to 652,647. The priority remains to maximise the potential of channel shift, encouraging residents to self-serve where they are able to, ensuring that residents with higher needs or who are unable to self-serve have direct access to support. In 2020/21 work will focus at specifying and procuring the next


generation of Customer Service Centre for the Council, to ensure a seamless service at the end of the Shared Managed Service contract with Serco.

Human Resources – will continue to contribute to internal and external major change programmes. Support the transition of HR and Payroll services to an in-sourced solution from April 2021.

Technology & Improvement – Drive completion of the Next Generation project by March 2021 within the overall context of organisational transformation, as part of this drive technology transformation. Continue to deliver the technology roadmap to enable new ways of working across the organisation, which includes migration to Windows 10 by January 2020 and Office 365 during 2020 subject to funding being made available and rollout of refreshed user hardware (starting with laptops) over the next 2 years. In the background other priorities include HCC’s future network provision, an upgrade to the telephony solution and an upgrade of HR modules in SAP.

Corporate Policy & Communications - Supporting services on policy and service changes, building the County Council’s external profile, supporting the county’s strategic partnership and joint working arrangements through Hertfordshire Forward and the Public Sector Chief Executives Group and maintaining internal communication with staff to support organisational change.

Supporting the Organisation – supporting services to deliver their change programmes and savings and where appropriate develop the capability and capacity to deliver improved trading income and opportunities for partnership working.

Leading on our property and office and service accommodation

• To make better use of our assets by sharing buildings and developing more multipurpose facilities, particularly in support of co-delivered services. Programmes including Apsley 2020, the Office Accommodation Strategy – Phase 2, These programmes will reduce costs and deliver better outcomes wherever possible to staff and service customers. In addition to working with partners through the Hertfordshire Property Partnership and One Public Estate programme.

• In the context of Local Strategic Plans and the need for significant housing and infrastructure development, to drive forward required development and return with some or all of the profit component to the public sector or, through private rented housing, to generate ongoing revenue income streams to support spending on essential services. This approach will utilise the Council’s property company (Herts Living Ltd).

Leading on increasing commercial opportunities

• Developing the Councils commercial strategy, including:

o Implement consistent and coherent approach to HCC companies, and options for future arm’s length entities

o Developing guidance to support the organisation in considering commercial opportunities


o Enhance approach to strategic commercial planning & re-tendering

o Benchmark contract management and commercial approaches.

Leading on outcome driven technology to respond to fast-changing digital opportunities

• Targeting service-specific agile redesign to maximise quick wins – the strategy is delivery as set out in the three-year Digital Roadmap.

• Encourage greater level of user-focussed end to end service re-design, exploiting data analysis to tailor services and pre-empt trends & needs.

• Deliver an effective technology infrastructure to underpin resilient digital first approaches across the council.

• Ensure a digitally confident and competent workforce.

Leading on an effective People Strategy to deliver a high performing, engaged, and committed workforce

• Ensuring our workforce has the capability and capacity to deliver current and future outcomes.

• Positioning HCC so that we are recognised as an employer of choice.

• Developing reward frameworks that support us to attract, recruit and retain people with the right skills, abilities and values.

• Ensure Workforce plans are aligned with IP and service business plans.

• Right person, right place doing the right thing.

Leading on developing and enabling SmartWorking throughout the organisation

• Leading widespread cultural change to drive increased collaboration, mobility and flexibility.

• Delivering modern technologies to enable smarter ways of working as the new normal.

• Ensure close links to the office accommodation strategy, people strategy and digital workstreams.

Supporting the right approaches to prevention & demand management

• Working with services and partners to identify and analyse the quantum of funding supporting prevention activity and the outcome of such spend.

• Supporting the development of outcome measures and toolkits.

Key savings proposals include:

Resources Directorate has looked to reduce the costs of its operation, ensuring that it is efficient and fit for purpose. Since 2010 it has delivered savings of £27.76m rising to £38.96m by 2023/24. This included working with external partners to lever out savings through more efficient ways of working and maximising the use of


available technology where appropriate. It continues to review opportunities for efficiencies including reducing the use of our office space and joint working with partners to share fixed costs and generate income.

The proposals set out in the IP cover:

• Further reduction in back office costs – this includes savings across each of the Resources teams - £1.076m

• Additional income from traded and statutory services - £0.655m • Property and asset management, including energy - £0.280m • Serco SMS contract savings - £0.054m

Key to future savings will be the extent to which the Directorate can identify further efficiencies from the key cross-cutting transformation programmes. In the short term there may be a requirement for additional investment to support and drive the transformational changes across the organisation.

4 How has the portfolio reviewed its effectiveness / value for money in delivering service outcomes?

The service undertook a comprehensive review of the level and scope of its services through joint work with Essex County Council, and ten other county councils to inform the 2016/17 budget plan. This exercise identified that we compare relatively favourably on costs and scope of service spending 4.4% of our gross budget on support service with only one of the 10 other councils spending a lower proportion.

Subsequent to this a number of further exercises have been undertaken:

• Legal Services – are part of the Public Law Partnership (PLP is the legal services partnership of authorities in Essex, Hertfordshire, Suffolk and Cambridgeshire). PLP share staff, legal information, know-how and training to ensure value for money. Our aim is also to work closely with other legal departments in Hertfordshire authorities to share training and, where appropriate, resource.

• SERCO– the outcome of a previous review undertaken by an independent assessor revealed that the overall contract price across all service lines is 9% below reference group average, and therefore continues to represent value for money at the aggregate level. The Council took advantage of the opportunity to extend the contract from March 2019 by 2 years. In doing so it negotiated further savings on the contract, reducing cost not just in Resources but in ACS and children’s services too. Extensive market engagement has been undertaken as part of determining options for when this contract expires, and Cabinet have agreed the way forward for the Next Generation project.

• Property services – the work to develop the approach to management and development of property assets has involved research with external providers and other organisations to determine options and best practice in this area. . This can be achieved both through the implementation of the ‘Accommodation


Strategy’ and through working with “One Public Estate” to pump prime collaboration across all Herts public sector.

• Procurement – the Central Buying Consortium benchmarking exercise results (published in early 2017) showed that of the 8 authorities participating, Hertfordshire ranked the second from lowest for cost of service, despite having the second from highest level of externally procured spend. Likewise, the Society of County Treasurers procurement benchmarking exercise of 12 authorities (published in early 2017) ranked Hertfordshire lowest in terms of cost of the central procurement team as a percentage of net revenue budget.

5 What are the key risks in delivering projects and programmes for this portfolio, and what mitigations are in place? What steps are being taken to ensure resilience?

Major budget related risks are set out in the Sensitivity Analysis (IP Part A – Overview) with a number of these relating to this portfolio. In particular:

• Organisation capacity and capability to deliver a wide range of key projects/programmes

• potential income from business rate incentives; impact of business rate appeals;

• the Collection Fund balance and council tax base for future years, as well as council tax support schemes and wider council tax reforms;

• outstanding grant announcements;

• inflation: non-pay inflation including exceptional inflation;

• delivery of savings to timescale;

• interest rates, impacting on borrowing costs and investment income;

• ability to sell assets and secure capital receipts; and

• potential impact of the decision to exit the EU on inflation, treasury management, the property development market and staff recruitment and retention

• Difficulty in recruiting and retaining staff within the legal team.

Some of the key mitigations in place include:

• Continuing to review and manage our overall resource position including changes to grant funding.

• Continued commitment to deliver savings through robust project management and ensuring the focus remains on key priorities.

• The availability of contingency funding which alongside general fund and specific reserves takes account of the uncertainties and risks across the organisation.

• Continued leadership of cross-cutting transformation programmes to support transformation change across the organisation and deliver future savings.

• Workforce planning and strategy to ensure that we recruit, engage and retain a highly performing workforce and deal with key skill shortage areas.


KEY BUDGET MOVEMENTS 2020/21 - 2023/24

2020/21

TOTAL

£000s

2021/22

TOTAL

£000s

2022/23

TOTAL

£000s

2023/24

TOTAL

£000s

(500) (500) (500) (500)

204 392 575 760

(4,761) (4,761) (4,761) (4,761)

40 40 40 40

20,451 24,017 31,535 37,60615,730 19,296 26,814 32,885

(817) (3,231) (4,404) (4,193)

(2,046) (5,336) (7,223) (19,816)(2,863) (8,567) (11,627) (24,009)

Ref Description DeptType of budget

movement

2020/21

TOTAL

£000s

2021/22

TOTAL

£000s

2022/23

TOTAL

£000s

2023/24

TOTAL

£000s

Approximate

current

budget

£'000

Technical Adjustments

TA5Allowance for 2019/20 pay awards still to agreedRelease of funding for 2019/20 pay awards no longer required

Central ItemsTechnical

Adjustment(500) (500) (500) (500)

Service Specific Inflation

HR: Iilearn contract, Herts Rewards ResourcesService Specific

Inflation1 14 17 20

HR: Occupational Health Contract ResourcesService Specific

Inflation28 28 28 28

Legal: Records Management ResourcesService Specific

Inflation3 6 10 13

Statutory Services - Coroner Services: Mortuary Service, Special & High Risk Examinations ResourcesService Specific

Inflation9 15 21 27

Property: Abel Smith rental income, Residential Elderly People's Homes, Hertfordshire Development Centre - catering income, Mundells rental income

ResourcesService Specific

Inflation143 288 438 590

Statutory Services - Registration & Citizenship Service: Citizenships Ceremony, General fees income, Registration Certificate sales

ResourcesService Specific

Inflation20 41 61 82

Legislative

Technical Adjustment

Service Specific Inflation

Reversal of time limited

TOTAL SAVINGS

Other PressuresTOTAL PRESSURES

Existing Efficiencies

New Efficiencies



movement

2020/21

TOTAL

£000s

2021/22

TOTAL

£000s

2022/23

TOTAL

£000s

2023/24

TOTAL

£000s

Approximate

current

budget

£'000

Pressures

RTL5Domestic Abuse - transfer to reserveSpecific reserve set up to deliver the domestic abuse agenda in the light of new legislative requirements.

Central ItemsReversal of time

limited expenditure

(330) (330) (330) (330)

RTL6Corporate TransformationA dedicated reserve for collaborative, corporate transformation to meet the anticipated future cost of organisational change (beyond the provisions made via the ITT fund)


limited expenditure

(1,000) (1,000) (1,000) (1,000)

RTL7Invest to TransformContribution to the Invest to Transform Fund


limited expenditure

(2,033) (2,033) (2,033) (2,033)

RTL8

Business Rates Pilot ReserveThe anticipated benefits of the business rates pilot is being set aside in a dedicated reserve to be applied to promote economic growth, in line with the objectives of the rates retention pilot


limited expenditure

(1,308) (1,308) (1,308) (1,308)

RTL9Business Rates Pilot Reserve - top-up


limited expenditure

(90) (90) (90) (90)

L7

Website accessibility complianceNew regulations came into force for public sector bodies on 23 September 2018 requiring all public sector websites, including intranets and third party public facing systems to be WCAG 2.1 compliant.

Resources Legislative 40 40 40 40 -

OP13

Insurance ClaimsAs part of the HCC Self Insurance review, the HCC excess has increased by £200k to £500k, which has reduced the HCC proportion of the premium by £84k, but due to the increased excess the Actuary has calculated that the claims that HCC will incur will increase.

Resources Other Pressures 192 381 574 574 1,819

OP14Herts for Learning contribution to SMSHfL propose to move away from SAP onto an alternative ERP, reducing the income that HCC will receive for providing SAP and associated support.

Resources Other Pressures 27 27 27 27 (270)

OP46

Improvement & Technology - Intelligence TeamIncreased demand and change in activities required from services and external customer (districts, BC's etc) over the years has meant that the Intelligence team budget has not been able to keep pace with the demand placed on its support teams.

Resources Other Pressures 164 129 100 100 1,178

OP47

Core SMS application Support charges increaseAs part of the SMS contract there is a list of applications that are covered under the core support arrangements. This list increases and decreases over time and a periodic true up is carried out with an increase of 52 applications since 2015.

Resources Other Pressures 296 296 - - -

OP48

Loss of ‘free use’ software licence rights Oracle have recently announced that they are ceasing free-to-use Java software and are moving to a perpetual licencing model for commercial environments. (HCC is classified as such an environment)

Resources Other Pressures 273 224 170 140 -



movement

2020/21

TOTAL

£000s

2021/22

TOTAL

£000s

2022/23

TOTAL

£000s

2023/24

TOTAL

£000s

Approximate

current

budget

£'000

OP49

Cyber Security Increasing RiskThis bid reflects the increased level of investment we need to make as an organisation to do all we can to keep ourselves and our data safe through:-Greater monitoring and detection capability -Prevention; tighter controls around use of physical kit-Additional focus on staff threat awareness and prevention-Supplementing HCC’s Security Analyst resources with additional capacity and specific network focussed expertise


OP50

Property - Health & SafetyThe Property Service is responsible for H&S for Operational Sites including Rural, Fire and Rescue, Adult Care, Libraries, Youth and Register Offices and Central and Shared Sites including the four main office sites and Corporately Managed Sites. These sites are managed by third party agents and various housing associations. A recent audit has highlighted the need for process improvements moving forward. Since the audit Property has been working hard to implement improved controls, reducing risks of non- or partial compliancy. Audit Committee agreed with the audit report that ‘The County Council will need to invest additional resource to meet this objective successfully.’Four additional key roles are required to deliver the improved controls, a Compliancy Manager, Compliancy Officer, and CPD H&S administrator, and a Contracts Support Officer. The Compliancy roles will manage and provide assurance for all H&S compliancy going forward. The CPD administrator is required to develop functionality within the Council’s Property Database (CPD) to able to hold H&S compliancy information this will allow all dates of risk assessments and certificates to be held within the CPD. This will require intensive ongoing resource to keep up to date. The Contracts Support Officer is needed to manage the contractor works required to ensure compliancy (such as compartmentalisation and Fire Risk Management measures).Along with the reputational risk of not investing in appropriate resources to manage Health and Safety, there are also the financial risks to consider, for example recently: A County Council was fined £60,000 plus £22,000 costs after a man died in a care home. A Borough Council was fined £400,000 and over £30,000 costs following a death. A District Council was fined £18,000 plus £7,000 costs after problems with asbestos exposure, and a County Council was fined £27,000 for a legionella incident.


OP51Property Staffing Detailed work is being undertaken to verify whether there is potential to capitalise staff time within Property for externally funded projects.


OP52

Technology SAP licencingFurther to extensive discussions between HCC and SAP it was determined to upgrade HR modules of SAP to achieve operational efficiencies. As part of this SAP agreed to perpetual license permissions for some other public sector organisations in Herts.




movement

2020/21

TOTAL

£000s

2021/22

TOTAL

£000s

2022/23

TOTAL

£000s

2023/24

TOTAL

£000s

Approximate

current

budget

£'000

OP53

Herts Fullstop - delay in increased revenueHBS in recent years has generated a surplus for HCC of over £1m pa which is used to support Council services.Cabinet approved an ITT bid in June 2018 to replace the businesses outdated ICT systems. This outlined ambitious plans to increase the surplus delivered by the business to over £2m across 4 years, mainly through increasing sales and margin, also through reducing costs (as a result of the ICT investment).This plan has proved to be very challenging to deliver, the impact of this is that the surplus targets for the coming years need to be refreshed. The service will still deliver an increased surplus (rising to over £1.5m), but not as high as originally targeted.

Resources Other Pressures 447 490 388 304 (1,710)

OP59

Property - Health & Safety - Vacant buildingsFollowing the recent internal compliance audit, Carter Jonas (HCC’s managing agents) have been instructed to assess the ‘managed portfolio’. Carter Jonas have concluded that 24 buildings will need H&S Derelict Building Reports.


OP60

Property - Planned Preventative Maintenance Works to HCC owned properties Carter Jonas (HCC’s managing agents) have recently undertaken PPM reports to properties within the CMP portfolio which are either not let or let but where HCC still retains responsibility. The works required either relate to H&S (including statutory compliance), security or the integrity of the structure of the building.


OP64

Funding for Transformation PMOThe Council are currently facing significant financial pressures and therefore during the next 4 years need to make savings of circa £90M. Therefore, the Leadership Team have decided to re-focus the Transformation project portfolio effort through a single Transformation PMO governance process to improve performance and confidence in the success rate of the Transformation programmes and projects.


OP56

Next Generation (see also New Efficiency)Cross cutting project to develop improvements and changes to the way we provide some of our core services, which up to now, have been provided mainly through one external contract provider commissioned by us.

Resources Other Pressures 156 2,093 2,093 2,093 -

OP15Interest cost - New Long-Term BorrowingInterest cost increase due to the borrowing required to fund the rest of HCC's capital programme not funded by grants, contributions or reserves.

Central Items Other Pressures 342 2,950 8,657 12,840

OP16Interest cost - HCC Short Term LoansInterest cost increase due to increased use of short-term loans to fund capital programme in short-term, and manage liquidity requirements

Central Items Other Pressures 393 912 1,179 198

OP17Brokerage and Fee Expense - Arrangement of New BorrowingAdditional fee expenses incurred for the arrangement of new borrowing required to fund HCC's Capital Programme

Central Items Other Pressures 90 125 78 27

OP18Interest on Balances held InternallyIncrease in internal interest paid on balances held due to higher interest rates forecast. Some mitigation is expected from the reduction in LEP balances.

Central Items Other Pressures 163 (248) (257) (258)

OP19

Additional Borrowing to fund the Capital ProgrammeBorrowing to fund the Capital Programme results in a higher minimum revenue provision. The minimum revenue provision is the statutory amount that HCC must charge to council tax in order to repay the principal on borrowing.

Central Items Other Pressures 2,472 6,080 8,780 11,952



movement

2020/21

TOTAL

£000s

2021/22

TOTAL

£000s

2022/23

TOTAL

£000s

2023/24

TOTAL

£000s

Approximate

current

budget

£'000

OP69Interest on Investment BalancesChanges in interest earned on external balances resulting from changes in forecast balances and interest rate forecast.


OP70Bank ChargesBanking and card payment transaction charges


OP71Target Cost Reduction from Capital Schemes not yet approvedProposed schemes will only proceed if revenue cost reductions mitigate costs of capital finance.

Central Items Other Pressures - (817) (1,150) (1,182)

OP72Target Cost Reduction from Capital Schemes not yet approved (Interest and Brokerage)Proposed schemes will only proceed if revenue cost reductions mitigate costs of capital finance.

Central Items Other Pressures (141) (593) (1,052) (1,156)

OP20Review of contingency

Central Items Other Pressures (770) (770) (770) (770)

OP54Savings risks Additional budget set-aside to help manage the wide range of financial and operational risks

Central Items Other Pressures 3,000 3,500 3,500 3,500

OP55Future Workforce (see New Efficiency)Redesign of the Council's Workforce & Reward Structures

Central Items Other Pressures - 7,300 7,300 7,300

OP63Invest to transform - driving IP savings

Central Items Other Pressures 11,108 - - -

OP73

Environment Agency Thames/Anglian Region LevyThe Environment Agency is a levying body for its flood defence function under the Water Resources Act 1991. Following notification of the provisional levy for 2018/19 an increase in budget is required.


Savings

EE28Engagement and Consultation Phase 2This pressure relates to the changing of the frequency of the residents' survey so that it only takes place every other financial year.

ResourcesExisting

Efficiencies21 - 21 - 21

EE29Property review and rationalisation This initiative is focussed on delivering a reduction in the costs of office accommodation by 2020, which includes a drive towards freehold ownership of property.

ResourcesExisting

Efficiencies- (1,232) (1,232) (1,232) 9,025

EE31

Herts Living LtdAn initial estimated of returns from the council's property company (Herts living Ltd) has been undertaken. This has been revised following discussions with the joint venture partner (Chalkdene)

ResourcesExisting

Efficiencies(305) (1,051) (2,245) (2,013) -

EE32Customer Service – Web TeamIncreasing income by delivering web tools and support for other organisations.

ResourcesExisting

Efficiencies(20) (20) (20) (20) 608

EE33Customer Service - Income and PaymentsTo drive out further savings through efficiencies in how the team work, developing more self-service and making better use of systems.

ResourcesExisting

Efficiencies(90) (110) (110) (110) 1,271



movement

2020/21

TOTAL

£000s

2021/22

TOTAL

£000s

2022/23

TOTAL

£000s

2023/24

TOTAL

£000s

Approximate

current

budget

£'000

EE34Serco SMS contract savingsNegotiation has been undertaken with Serco regarding the extension of the Shared Managed Services contract by 2 years to March 2021.

ResourcesExisting

Efficiencies(7) 19 19 19 11,359

EE35Trading: Herts Catering LtdPerformance from HCL means the Council can expect additional income in the coming years.

ResourcesExisting

Efficiencies(200) (400) (400) (400) (1,000)

EE36HR stretch targetFollowing the outcomes of the SAP review, HR/Finance will look to develop plans for service redesign and efficiency to deliver savings

ResourcesExisting

Efficiencies(73) (184) (184) (184) 3,713

EE37Finance stretch targetFollowing the outcomes of the SAP review, HR/Finance will look to develop plans for service redesign and efficiency to deliver savings

ResourcesExisting

Efficiencies(73) (183) (183) (183) 4,344

EE38Property - utilities - non-schools Salix savings

ResourcesExisting

Efficiencies(64) (64) (64) (64) 2,609

EE39Fire ladder workshopEnd of lease at Mallow Park for the Fire ladder workshop.

ResourcesExisting

Efficiencies(6) (6) (6) (6) 899

NE20

InsuranceRevise premium payment reporting to dept boards and directors to ensure visibility of high risk areas for claims.Fund pressure in IP 19 through (a) use of insurance reserve (currently assessed to be higher than needed) and (b) from 2020 to take benefit of £1m excess which would yield c£320k of savings per year

Resources New Efficiencies - (750) (750) - -

NE22Software Defined Wide Area Network (SDWAN) SavingsPlan to move away from traditional Wide Area Network to new SDWAN solution, using new technology and the internet to connect HCC sites.

Resources New Efficiencies - (300) (300) (300) -

NE23

HCL PensionHCL's current pension arrangements are underpinned by HCC. HCL pay both an annual cash bond and an employer contribution rate. As the position is healthy (with a surplus), it is considered that the Pension bond payment could be made directly to HCC rather than into the Fund, and HCL could move to a 'pass through' pension rate (where they pay the same as HCC). It should be noted that HCL's business plan outlines risks to the delivery of a sustained level of income in the future due to costs outstripping meal income levels.

Resources New Efficiencies (150) (150) (150) (150) -

NE25

Finance Support for Pooled BudgetsHCC currently provide the financial administration of the pooled budgets with NHS. It is estimated the costs of administering the s75 pool is £165k. A 3 way share would mean £55k each charged to 2 x CCGs.




movement

2020/21

TOTAL

£000s

2021/22

TOTAL

£000s

2022/23

TOTAL

£000s

2023/24

TOTAL

£000s

Approximate

current

budget

£'000

NE26End lease on Delegates Car Park in Stevenage Replaced by Q3 site car park.


NE27PropertyMove of Public Health Clinic to Property previously Hatfield Library will yield income payable by public health to property


NE28Legal FeesReduction of expenditure on external counsel through renegotiation of fees rates and through more proactive management of counsel.


NE29FinanceAutomation/simplification of processes to minimise impact on directorates.

Resources New Efficiencies - - (75) (75) -

NE30Insource Updata Team Insource 4 FTE from Updata results in a reduction of overheads.


NE31Legal Staffing Efficiencies


NE33HR Staff reductions/restructure - Proposal assumes 2 + further posts.


NE36Technology Following migration of users from Windows 7 to 10 a new model will be required to deal with frequent Microsoft updates/patches.


NE37TechnologyRemoval of 1 Internet Pipe from CH which is surplus to requirements. Cost savings as a result of retirement of physical kit and maintenance


NE38TechnologyReplace our existing Secure envoy tool with a Microsoft product which is included in the Microsoft enterprise agreement resulting in cost savings


NE39Legal - Police Courier Costs Currently we use the Hertfordshire Police Constabulary Courier service to move bundles to Watford/Hertford Courts and manage the return. Reduce number of 'pick-ups/'drop-offs'.


NE40LegalMove to marriage schedules issued by the service will produce additional income.


NE41Assurance Services - General Efficiency Reduction in non-paying spending


NE42Registrars Extension of civil p/ship to opposite sex couples is expected to generate additional income.


NE43Legal Reduction in travelling expenses.


NE44Zero Use Mobile Connections work in progress to close down SIMS where not used for 6 months.


NE54PropertyWormley care home rent


NE48Accommodation StrategyChanging the way staff use accommodation has the potential to deliver significant savings to HCC

Resources New Efficiencies - (463) (1,459) (2,332) -



movement

2020/21

TOTAL

£000s

2021/22

TOTAL

£000s

2022/23

TOTAL

£000s

2023/24

TOTAL

£000s

Approximate

current

budget

£'000

NE49

Next Generation (see New Pressure)Cross cutting project to develop improvements and changes to the way we provide some of our core services, which up to now, have been provided mainly through one external contract provider commissioned by us.

Resources New Efficiencies (47) (1,173) (1,784) (2,254) -

NE47Future WorkforceRedesign of the Council's Workforce & Reward Structures (see Other Pressure)

Central Items New Efficiencies - - - (12,000)

NE50Internal CommissioningInternal Commissioning to be identified.

Central Items New Efficiencies (460) (460) (460) (460)

NE55Non-Investment Interest incomeChanges in interest received on non-Treasury items, including late payment of invoices, deferred debt and loans to subsidiaries and associates


NE56HLL Commercial Property LoansInterest Income in respect of loans advanced to Herts Living Limited to acquire Commercial Property for income generation.


NE60Phase out Broadband Delivery SupportRun up to end of Contract 3 with 1 FTE, resource needs for any subsequent work to be costed into delivery.



ANALYSIS OF REVENUE BUDGET BY OBJECTIVE AREAS Net

Budget

2018/19

£'000 Objective Area

Gross

Budget

2019/20

£'000

Income

£'000

Net

Budget

2019/20

£'000

Net

Budget

2020/21

£'000

Net

Budget

2021/22

£'000

Net

Budget

2022/23

£'000

ResourcesResources Central Items

1,484

This budget includes:Chief Executive: - Overall corporate management and operational responsibility, including management responsibility for all officers.Director of Resources & Performance: - Oversees the strategic management of the department, ensuring compliance with legal and regulatory frameworks and the delivery of Statutory Services.

1,585 (87) 1,498 1,499 1,499 1,499

Herts Finance

4,516

Give strategic advice and support to key financial processes. This includes the preparation of the annual revenue and capital budgets, setting and monitoring financial standards and providing finance and accountancy support functions to all council services. This budget also includes the payment of charges on banking transactions and external audit fees. Other Services - includes budgets for car loans and staff mortgages and other miscellaneous items. Supports the organisation's commissioning and procurement activity providing technical support, supplier relationship advice and best practice advice to enable effective, value for money contracting.

5,028 (739) 4,289 4,178 4,104 4,104

Herts HR

3,786Development of corporate people strategy and policies, workforce planning, learning and organisational development, pay and reward, employee and industrial relations, equality and diversity in employment, employee well being, recruitment and retention, safe staffing, talent and succession management, leadership and management development.

5,327 (1,468) 3,859 3,711 3,714 3,717

Shared Managed Services

11,938Provides overall Contract Management for the SMS contract for all operational services provided under the partnership, regardless of service type.

15,274 (2,526) 12,748 11,529 10,622 10,152

Improvement and Technology

10,139

- Provides the strategic lead and design function for IT infrastructure across the authority. This includes provision of the network, technical and cyber security, telephony services, infrastructure, licensing, IT Projects, hardware and maintenance.- Delivers and champions the effective use of, management information and performance data for HCC departments, corporate management and partnership purposes. - Delivers improvement programmes and project management for key authority wide and departmental initiatives, including the transformation PMO.

12,783 (1,899) 10,884 10,364 10,251 10,221

Property

15,117

Property Teams: - Provide the strategic asset management and advice function in support of land, buildings and other property assets owned or leased by the County Council. Act as the Corporate Client for outsourced property services including property lease and managing agent function, property and land specialist consultancy services, property & land disposals and acquisitions services. Deliver Development Services function for county assets (planning permissions), responses to District Council Strategic Land Use Plans and negotiates S106/CIL infrastructure development funding agreements.

Central & Shared Buildings - This budget covers the facilities management and running costs for all shared offices (County Hall, Apsley, Stevenage and Mundells), as well as certain other divisional buildings throughout the county. It is managed by Property and all costs are recovered by recharges to the building occupiers.

Service Property Costs - Property are responsible for the provision of 'hard' Facilities management (reactive and planned maintenance works) across the majority of operational service properties, e.g. the libraries, fire stations etc.

Corporate Managed Properties - This budget covers the management of all properties that are not being used for direct services delivery by the county council, including those in the property disposal programme.

Staff Housing Pool - Managed by Aldwyck Housing Association, this provides staff temporary housing and provides an income that is used to pay for the repairs and maintenance of the properties.

33,097 (17,163) 15,934 15,246 14,220 13,499


Net

Budget

2018/19


Gross

Budget

2019/20

£'000

Income

£'000

Net

Budget

2019/20

£'000

Net

Budget

2020/21

£'000

Net

Budget

2021/22

£'000

Net

Budget

2022/23

£'000

Assurance (Internal Audit, Scrutiny and Health & Safety)

325

Internal Audit - Internal Audit gives assurance to members and senior managers on all the Council's governance, risk management and internal control arrangements, so as to ensure that these key areas work effectively to deliver council objectives.

Counter Fraud - Counter fraud activity delivered by the Shared Anti Fraud Service; pro-active and re-active work to prevent and detect fraud

Scrutiny - Scrutiny has the responsibility to hold The Executive to account by scrutinising decisions made by, or on behalf of the Council or Cabinet, and any operational or policy aspect of the council's business. It also has the power to scrutinise health services.

Health and Safety - The team delivers strategic and operational Health and Safety advice and guidance, with a risk-based model of service delivery.

1,821 (1,495) 326 323 320 320

Legal Services & Statutory Services

6,345

Legal Services - Provide high quality legal and administrative services to enable the County Council to carry out its policies and statutory obligations within the law and the council’s own procedures in a cost effective manner.

Information Governance - Supports the organisation's Data Protection, Freedom of Information, Open Data and Records Management activity

Highway Boundaries & Land Charges Unit - The Highway Boundaries and Land Charges Unit undertake searches on behalf of district councils, solicitors, and members of the public into inquiries about the status of roads, rights of way, and other highway matters. They also answer enquiries relating to common land.

Elections - The elections budget represents the budget needed to pay for any by-elections in year, and to fund the cycle of county council elections which take place every four years.

Democratic Services - This team is responsible for supporting county councillors to carry out their formal duties as councillors. It is responsible for arranging and supporting all of the council's formal meetings, including county council and Cabinet meetings, and ensuring that an accurate record of these is maintained.

Coroners Service - The Coroner Service provides administrative and investigatory services to Her Majesty’s Coroner for the district of Hertfordshire, in accordance with the responsibilities of the relevant authority as defined in the Coroners and Justice Act 2009. The service investigates sudden or unexpected deaths.

Registration & Citizenship Service - Hertfordshire Registration & Citizenship Service is responsible for registering births, deaths, marriages and civil partnerships, and citizenship services in Hertfordshire. The services provided include weddings, civil partnerships, civil funerals, civil namings, citizenship ceremonies, nationality & settlement checking services, change of name deeds and reaffirmation of vows.

10,014 (3,764) 6,250 6,279 6,310 6,340


Net

Budget

2018/19


Gross

Budget

2019/20

£'000

Income

£'000

Net

Budget

2019/20

£'000

Net

Budget

2020/21

£'000

Net

Budget

2021/22

£'000

Net

Budget

2022/23

£'000

Hertfordshire Business Services

(1,696)

Hertfordshire Business Services comprises of the following business units and internal services:• Hertfordshire Facilities Management Services works across both education and local authorities in delivering soft FM service excellence across over 600 sites on a trading basis • Herts FullStop is the external facing education supplies business servicing over 3,000 schools nationally on trading basis• Hertfordshire Fleet Management Services (HFMS) is the professional support centre for Council departments in respect to all matters relating to vehicles of any type, the service provides stakeholders a range of professional advice and compliance management. • Hertfordshire Reprographics – provide a broad range of print, design and digital services to the Council, other local authorities and HCC spun out business/organisations• Herts FullStop Limited (formerly Surecare Supplies Limited) - this company is wholly owned by the Authority. It provides a wide variety of equipment and supplies to non-profit making groups and to private businesses who predominately service the care and education sectors.

8,504 (9,747) (1,243) (1,200) (1,302) (1,386)

Risk Management & Insurance

4,098The insurance costs of the County Council are met through this budget. These costs include external insurance premiums paid, an amount set aside each year to meet the internally insured claims and excesses on externally insured claims, and the operational cost of running the County Council’s risk management & insurance service.

4,306 (3) 4,303 3,743 3,936 4,686

Care Payments

1,250The Income and Care Payments service delivers on behalf of Adult Care Services service user financial assessment and collection of service user financial contributions, payments to providers for care delivered, direct payments and management of Appointeeship and Deputy. arrangements.

1,342 (148) 1,194 1,194 1,194 1,194

Corporate Policy

2,816The Corporate Policy Team provide a central resource working with councillors & officers to develop strategic thinking on priorities and policies. They ensure the council responds effectively to national & local policy challenges and develops its reputation as a Leading Council.

2,972 - 2,972 2,972 2,972 2,972

Communications

930The Corporate Communications team, work to protect, promote and enhance the reputation of Hertfordshire County Council to local residents and regonal and national stakeholders. As well as developing service communication campaigns, they respond to press and media enquiries, manage the council's social media channels, keep staff informed with news and updates.

1,053 (104) 949 928 949 928

Customer Services

601The Customer Service team are responsible for managing the Serco contract for the Customer Service Centre including Blue Badge service, leading on our website www.hertsdirect.org , providing the complaints service for Children Services and Health and Community Services and delivering the school appeals service.

1,187 (434) 753 733 733 733

Trading Companies Dividends(800) Dividends received from trading companies - (1,455) (1,455) (2,401) (3,595) (3,363)

60,849 Resources Total 104,293 (41,032) 63,261 59,098 55,927 55,616Central itemsCapital Financing

10,012 Represents the Minimum Revenue Provision (MRP) charge to revenue to provide for the repayment of borrowing. 12,484 - 12,484 15,275 17,642 20,782Interest Paid and Received

11,668The cost of interest paid on borrowing, to fund the Capital Programme and any short term cashflow needs, together with interest earned from investing the councils' cash balances.

12,251 - 12,251 14,982 20,427 23,473

Contingency

6,770This budget provides for potential cost increases in areas of risk/uncertainty. Level to be confirmed once final funding figures available in February.

6,000 6,000 6,000 6,000 6,000


Net

Budget

2018/19


Gross

Budget

2019/20

£'000

Income

£'000

Net

Budget

2019/20

£'000

Net

Budget

2020/21

£'000

Net

Budget

2021/22

£'000

Net

Budget

2022/23

£'000

One-off Investment

2,033 Invest to Transform fund - Additional funding recognises the need for further transformation to deliver future savings 11,108 - 11,108 - - -

- Savings risks - Additional budget set-aside to help manage the wide range of financial and operational risks 3,000 - 3,000 - - -

1,000Corporate Transformation - A dedicated reserve for collaborative, corporate transformation to meet the anticipated future cost of organisational change (beyond the provisions made via the ITT fund)

- - - - - -

Lee Valley Regional Park and Environment Agency levies

2,063The county council has to contribute to the funding of these two organisations.• The Lee Valley Regional Park Authority develops, preserves and manages an area next to the River Lee as a regional park.• The Environment Agency issues a local levy to the county council to fund flood defence.

2,081 - 2,081 2,081 2,081 2,081

Other 629 Includes inflation for pay awards still under negotiation and future years inflation (1,650) - (1,650) 18,360 27,507 25,734

Transfer to Reserve1,398 Creation of a new Business Rates Pilot Reserve following confirmation of the Hertfordshire 75% Business Rates Retention Pilot - - - - - -

35,573 Central Items Total 45,274 - 45,274 56,698 73,657 78,07096,422 Resources & Performance Total 149,567 (41,032) 108,535 115,796 129,584 133,686

Please note: The above includes the budget for Income & Care Payments that following the consultation will be moving to Adult Care Services


Resources and Performance capital programme 2020/21-2023/24

The total capital programme 2020/21 to 2023/24 for the portfolio is £187.864m and for 2020/21 is £56.172m. This includes all new bids and re-programming from 2019/20 at the end of quarter 2.

2020/21 2021/22 2022/23 2023/24 Total

£’000 £’000 £’000 £’000 £’000

HCC funding 47,950 42,142 26,268 3,621 119,981

Reserves 4,382 960 375 375 6,092

Grants 3,740 15,817 22,904 19,230 61,691

Contributions 100 - - - 100

Total 56,172 58,919 49,547 23,226 187,864

New capital bids There are ten new bids for Resources and Performance, as set out in the table below.

Scheme Cost

2020/21

HCC funding 2020/21

Other funding 2020/21

Total cost

2020/21-2023/24

Total HCC

funding 2020/21-2023/24

Total other

funding 2020/21 - 2023/24

Description

£’000 £’000 £’000 £’000 £’000 £’000

Office Accommodation

5,000 5,000 - 50,000 50,000 -

Investment to support the County Council's Accommodation Strategy, to improve the efficiency and sustainability of Hertfordshire County Council’s core estate

Property Acquisition

13,521 11,665 1,856 13,521 11,665 1,856To support the Office Accommodation Strategy

Countywide Touchdown

250 250 - 1,000 1,000 -To deliver new and upgraded touchdown facilities across the County.

IT Equipment and Services to Support SMART Touchdown Programme

212 212 - 530 530 -

To fund additional network connectivity and computer equipment to enable the planned touchdown expansion program.

Energy Generation Project

17,667 17,667 - 26,500 26,500 -

To develop a solar Photovoltaic farm with battery storage capability. Links in with HCC’s Energy Strategy to reduce emissions and decarbonise across the County.

Delivery of Infrastructure for Brookfield Riveside/Garden Village

7,490 5,100 2,390 43,211 5,100 38,111

Acquisition of land, design and build of new facilities for the Household Waste Recycling Centre and Travellers site, as part of the strategy for the Brookfield Riverside and Garden Village schemes.

Rural Estate - Burlew Farm

600 600 - 600 600 - Regeneration of Burlew Farm Workshop to allow the


Scheme Cost

2020/21

HCC funding 2020/21

Other funding 2020/21

Total cost

2020/21-2023/24

Total HCC

funding 2020/21-2023/24

Total other

funding 2020/21 - 2023/24

Description

£’000 £’000 £’000 £’000 £’000 £’000Regeneration relocation of the Countryside

Works Team with the Building Works Team.

Cyber Security 70 70 - 70 70 -

To add additional technical protection (equipment and associated software) to HCC's technical landscape.

Device Replacement Programme - Children Services

750 750 - 750 750 -

Replacement of IT equipment for frontline social workers to support the HCC Smart Working strategy.

Hybrid Mail 306 306 - 306 306 -

To provide a new digital postal service, which will reduce costs, create staff productivity savings due to less labour-intensive work, and enhanced scanning quality, ensuring delivery content digitally to the correct person.

Total 45,866 41,620 4,246 136,488 96,521 39,967


Revised capital bids

Resources and Performance has four revised bids compared to the previous Integrated Plan as set out in the table below. In addition, updated bids for vehicle replacement programmes are included in the portfolio capital programme. Spend on these annual programmes are variable, dependent on the use and condition of the asset and assessment of need and risk.

Scheme

Total increase/

(decrease) 2020/21

HCC funding

increase/ (decrease)

2020/21

Other funding

Increase/ (decrease)

2020/21

Total Increase/

(decrease) 2020/21 to

2023/24

HCC funding

increase/ (decrease) 2020/21 to

2023/24

Other funding

increase/ (decrease) 2020/21 to

2023/24

Reason

£’000 £’000 £’000 £’000 £’000 £’000

Broadband Contract 3

(5,500) - (5,500) (8,800) - (8,800)

Capital bid has been reduced to level of approved funding only (DEFRA).

Baldock Urban extension

200 200 - 400 400 -

Increase of £400k relating to design works for a southern link road and utilities which are required to secure planning consent, supporting the delivery of 500 new homes on HCC land south of the railway line.

Non-School Capital Maintenance and Minor Works

250 250 - 250 250 -

An increase of £250k for 2020/21 compared to the 2019/20 IP. Various projects were deferred to 20/21 due to unplanned works at the County Council’s main sites during 2019/20.

25 by 20 250 250 - 250 250 -

Supports EE8 Property review and rationalisation. Additional funding required to complete project.

Total (4,800) 700 (5,500) (7,900) 900 (8,800)


Resources and Performance Portfolio Capital Programme 2020/21 - 2023/24

Ref Description

New (N), existing (E), revised (R), re-profiled (P)

Portfolio

Total Scheme

cost

Cost 2020/21

HCC Funding 2020/21

Reserves 2020/21

Grants 2020/21

Contribution 2020/21

Cost 2021/22

Cost 2022/23

Cost 2023/24

£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

R1

Office Accommodation (N) Investment to support the County Council's Accommodation Strategy, to improve the efficiency and sustainability of Hertfordshire County Council’s core estate

Resources & Performance

50,000 5,000 5,000 - - - 22,500 22,500 -

R2

Property Acquisition (Office Accommodation) (N) To support the Office Accommodation Strategy


13,521 13,521 11,665 1,856 - - - - -

R3

25 by 20 (R) To enable the Authority to undertake the necessary moves, refurbishments and re-design of workplaces to enable delivery of revenue savings on the costs of its office accommodation.


1,250 250 250 - - - - - -

R4

County Wide Touchdowns (N) To deliver new and upgraded touchdown facilities across the county. Integral part of the ‘Transformation Strategy ‘office rationalisation project to deliver additional appropriate working space for the 3,000 plus social care staff, reducing travel time and cost. It also supports the remaining office-based services to work more flexibly from a wider number of closer to work/home locations.


1,000 250 250 - - - 250 250 250


Ref Description


Portfolio

Total Scheme

cost

Cost 2020/21

HCC Funding 2020/21

Reserves 2020/21

Grants 2020/21


Cost 2021/22

Cost 2022/23

Cost 2023/24

£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

R5

IT Equipment and Services to Support SMART Additional Touchdown Programme (N)To fund additional network connectivity and computer equipment to enable the planned touchdown expansion program under the SMART and strategic Property projects.


530 212 212 - - - 106 106 106

R6

Energy Generation Project (N) To develop a 22 Mega Watt (MW) solar Photovoltaic (PV) farm with battery storage capability. Once operational will produce clean renewable energy that links in with HCC’s Energy Strategy to reduce emissions and decarbonise across the County.


26,500 17,667 17,667 - - - 8,833 - -

R7

Baldock Urban Extension (R,P) The delivery of early phase infrastructure and provision of three bridges over a railway line to support the delivery of new homes on land south and north of the railway line in Baldock.


28,400 500 200 - 300 - 400 2,000 19,230

R8

Delivery of Infrastructure for the Brookfield Riverside and Garden Village Developments (N) Acquisition of land, design and build of new facilities for the Household Waste Recycling Centre and Travellers site, as part of the strategy for the Brookfield Riverside and Garden Village schemes.


43,211 7,490 5,100 - 2,290 100 14,817 20,904 -


Ref Description


Portfolio

Total Scheme

cost

Cost 2020/21

HCC Funding 2020/21

Reserves 2020/21

Grants 2020/21


Cost 2021/22

Cost 2022/23

Cost 2023/24

£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

R9

Broadband Delivery Project Phase 3 (R,P) The targeted aim of phase 3 is to extend superfast further across the county with emphasis on positive economic impact by providing superfast speeds to rural business premises.


2,200 1,150 - - 1,150 - 800 - -

R10

Rural Estate – Annual Capital Programme (P)Capital equipment and building improvements on the rural estate.


Annual programme

1,130 1,130 - - - 700 650 600

R11

Rural Estate - Burlew Farm Regeneration (N) Regeneration of Burlew Farm Workshop to allow the relocation of the Countryside Works Team with the Building Works Team, bringing management and operational benefits for the Rural Estate maintenance teams.


600 600 600 - - - - - -

R12

ICT Refresh Budget (E) Includes the replacement of laptops and desktop terminals to ensure the Council has up to date and fit for purpose end user devices, to support the new property rationalisation program and the move towards a more mobile (SMART) workforce


Annual programme

1,000 1,000 - - - 600 600 600

R13

Device Replacement Programme to Children Services’ Frontline Workers (N)Replacement of IT equipment for frontline social workers to support the HCC SmartWorking strategy and ensure that staff are enabled to deliver their role as effectively and efficiently as possible.


750 750 750 - - - - - -


Ref Description


Portfolio

Total Scheme

cost

Cost 2020/21

HCC Funding 2020/21

Reserves 2020/21

Grants 2020/21


Cost 2021/22

Cost 2022/23

Cost 2023/24

£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

R14

Cyber Security (N)To add additional technical protection (equipment and associated software) to HCC's technical landscape.


70 70 70 - - - - - -

R15

Hybrid Mail (N) To provide a new digital postal service, which will reduce costs, create staff productivity savings due to less labour-intensive work, and enhanced scanning quality, ensuring delivery content digitally to the correct person.


306 306 306 - - - - - -

R16

Non-School Capital Maintenance and Minor Works (R) To maintain the condition of properties, so that they are suitable for operational use. These sites include Libraries, Adult Care, Registration, Fire and Rescue stations with houses and the Central and Shared Offices.


Annual programme

2,000 2,000 - - - 1,750 1,750 1,750

R17

Salix Funded Projects (E) Investment in energy saving projects generating revenue savings, introducing more modern technologies to buildings and assisting the Council in achieving its annual carbon reduction target.


Annual programme

375 - 375 - - 375 375 375

R18

Herts Full-stop Vehicle Replacement Programme (R)Vehicles required to support the work of Herts Fullstop.


Annual programme

123 123 - - - 112 112 15


Ref Description


Portfolio

Total Scheme

cost

Cost 2020/21

HCC Funding 2020/21

Reserves 2020/21

Grants 2020/21


Cost 2021/22

Cost 2022/23

Cost 2023/24

£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

R19

Herts Full-Stop - ICT Infrastructure Investment (E) Investment in ICT and waste disposal infrastructure, ensuring the operational viability of Herts Full-Stop and supporting the delivery of its business plan.


1,967 1,328 - 1,328 - - 585 - -

R20

Spend to AchieveSpending that enhances the value/deliverability of future capital receipts


2,450 1,627 823 - - 7,091 300 300

Total 56,172 47,950 4,382 3,740 100 58,919 49,547 23,226


Documents

INTEGRATED PLAN PART B - STRATEGIC DIRECTION AND … · Working, Next Generation and Future Workforce to support a sustainable workforce and working environment. Resources will also