ARCHIVED news story
Council saves over £2m in staff and budgets shake-up
Released on 15 September 2009
We are living within our means while dealing with the downturn in a realistic and businesslike way. This council may not be a 'business', but we plan to stay in business.
Council Leader John Fuller
South Norfolk Council has saved over £2m in a root-and-branch staff and budgets shake-up, which will strengthen the organisation now and in the future.
The restructuring which has affected every single job in the council means the organisation is now in a stronger position to meet the challenge of the recession, and the fall-out which could hit wider public spending in the next five years.
The council has also set down a marker of more change to come if Government funding to councils is reduced as politicians debate how to tackle one of the biggest national debts in Britain's history.
The restructure details are published in a 2009/10 Budget and Financial Strategy report widely seen as one of the most important the Council's Cabinet has considered in years.
It is being viewed as more evidence of the way South Norfolk Council has consistently anticipated the economic downturn.
Cabinet meets to consider the report's recommendations on Monday 21 September.
Council Leader John Fuller said:
"We have produced a balanced budget despite one of the worst recessions in our history. We are living within our means while dealing with the downturn in a realistic and businesslike way. This council may not be a 'business', but we plan to stay in business."
He added:
"Some organisations may opt for living on their reserves while keeping their fingers crossed that it will be alright, but we plan ahead for the difficult times."
Chief Executive Sandra Dinneen said:
"We have worked closely with councillors, staff and trade unions to find these substantial savings and efficiencies. Inevitably, there will be a small number of service reductions, but in the vast majority of areas, we have maintained or improved services through smarter and more innovative ways of working.
"Local government is no longer safeguarded from the realities of economic life. Indeed, it is likely that even if we see the economy recovering in 2011/12, councils will be required to contribute to tackling the national debt.
"We are already considering how we can work even more efficiently, and I am confident that what we have achieved so far places us in a strong position to tackle future challenges."
The report details how the Council has saved more than £2 million from staff and non-staff budgets through a top-to-bottom restructure which has involved the reduction and merging of posts at all levels. Every single council post has been examined in the review.
No staff have been lost through compulsory redundancies, but almost 40 staff have left the organisation through natural wastage.
As a result, the Council now has a renewed focus on providing high quality public services, but in a way it can sustain for years to come.
In its Medium Term Plan, the Council has made tough but realistic assumptions including:
- Staff pay increases of 1.5% in 2010/11 and 2% in 2011/12
- Next year's grant from central Government frozen, and then cut by 10% each year after that
- Increases in fees and charges of between 1% and 3%
- Annual efficiency savings of 3%
- Interest on investments falling by £50,000 every year
- Council Tax rising by 2.5%
South Norfolk Council is already well known for the way it avoided the Icelandic banks saga when it pulled its substantial investments just days before the crash.
Since then it has worked hard to stay ahead of the recession curve. And it is now clear that the changes have resulted in improvements, efficiencies and savings and the Council has saved £2m out of a net budget of £14m.
It has also refused to raid precious reserves, instead building them up so they can be used to cover the short term transitional costs of change.
Monday's Cabinet report warns that services and priorities remain under permanent review to make sure the Council stays on a sound financial footing while building its resilience to future crises.
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| contact officer/team: | Communications Team |
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| web: | online enquiry form |
| email: | communicationsteam@s-norfolk.gov.uk |
| telephone: | 01508 533611 or 01508 533983 |
| minicom/textphone: | 01508 533622 |
| address: | South Norfolk House Swan Lane Long Stratton Norwich NR15 2XE |
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