Agenda item

(Leader – Cllr C Whitbread) To agree the creation of a Reserve of up to £3 million for the purposes of investing in the Council’s Fit for the Future Portfolio (C-042-2023-24).

(1)           That the Cabinet agreed to the creation of a Reserve of up to £3 million for the purposes of investing in the Council’s Fit for the Future Portfolio. The Reserve was to be created using part of the initial windfall of interest income created from the sale of part of the employment land at North Weald. Funding would be taken from the Revenue Budget over a period of two years, as far as delivering a balanced budget allowed.

(2)           That the Cabinet agreed that funding in 2024/25 of up to £40,000 would be considered as part of the 2024/25 budget process, for the purposes of establishing a post to collectively represent North Essex Councils (appendix A) and to establish a detailed terms of reference for NEC and develop a clear programme of work.

(3)           That the Cabinet agreed the Council should work with Braintree District Council and Colchester City Council to develop a full business case and proposed approach to delivery for a single shared back office for the corporate services referenced in this report and to approve the release of £180K from the Transformation Reserve to support development of the business case.

(4)           That the Cabinet noted that a full governance proposal for the Fit for the Future transformation reserve would be presented to the Cabinet for agreement in March 2024.

The Leader, Councillor C Whitbread, remarked that other councils were looking at the transformation progress and the report brought together a number of strands mainly for the north Essex councils and partnership working especially with Braintree District Council and Colchester City Council. The Covid crisis had caused a change with a move to hybrid way of working, using digital options and having virtual meetings. However, progress and change were good as this was the best option for our future. There were challenging financial decisions to be made now and in the future. The transformation portfolio was looking at the next four to ten years. The report would formalise our partnerships with other councils by creating a new, shared back office for the corporate services referenced in the report and with the creation of a reserve of up to £3 million for the purposes of investing in the Council’s Fit for the Future Portfolio. There would also be greater opportunities for being a digital council especially through ease of access for our customers, and perhaps by having one website portal for several councils including Essex County Council.

Councillor S Heap commented this was more a question for Qualis, but the residents had not been consulted and would there be an opportunity for Buckhurst Hill to move to Redbridge Borough Council? The Leader replied that he did not believe the residents in Buckhurst Hill would want to move to Redbridge BC. This was about the structure of this Council and working in partnership and being closer together with other councils to get the best value for our residents. Qualis brought in a substantial return and managed our business estate which was therefore important for the future.

Councillor Jon Whitehouse commented that shared services would be scrutinised by the Audit and Governance Committee this March, which would provide more clarity. Why was a reserve figure of £3 million decided upon and what would be the criteria for taking money out of this reserve? The Leader replied that there was no particular reason for the £3 million reserve figure, but it was reached after due consideration and would be worked with over a period of time. It was important this was a transparent process that would be regularly scrutinised.

The report set out the options considered, if any, and the reasons for the recommendation and the decision.

Decision:

(1)           That the Cabinet agreed to the creation of a Reserve of up to £3 million for the purposes of investing in the Council’s Fit for the Future Portfolio. The Reserve was to be created using part of the initial windfall of interest income created from the sale of part of the employment land at North Weald. Funding would be taken from the Revenue Budget over a period of two years, as far as delivering a balanced budget allowed.

(2)           That the Cabinet agreed that funding in 2024/25 of up to £40,000 would be considered as part of the 2024/25 budget process, for the purposes of establishing a post to collectively represent North Essex Councils (appendix A) and to establish a detailed terms of reference for NEC and develop a clear programme of work.

(3)           That the Cabinet agreed the Council should work with Braintree District Council and Colchester City Council to develop a full business case and proposed approach to delivery for a single shared back office for the corporate services referenced in this report and to approve the release of £180K from the Transformation Reserve to support development of the business case.

(4)           That the Cabinet noted that a full governance proposal for the Fit for the Future transformation reserve would be presented to the Cabinet for agreement in March 2024.