Agenda item

The Board considered the Worcestershire Regulatory Services (WRS) Business Plan for 2023 - 2026.

The Head of Regulatory Services introduced the report and in doing so drew Members’ attention to the Recommendation, as detailed on page 19 of the main agenda report.

The Business Plan for WRS was developed first in 2015 following on from the strategic procurement exercise. During the leadership training undertaken by the management team, it was determined that WRS needed a plan to ensure both the viability of the service and its ability to operate within the budgets available from the partners. This plan became the high-level document that would inform the development of the service for the foreseeable future. It was last updated in 2020, just before the COVID-19 pandemic. Now that the disruptions caused by the pandemic had gone it was deemed timely to revisit the plan looking forward for an extended time-period.

The Business Plan showed how WRS would: -

·       Continue to provide a viable service within projected partner budget allocations.

·       Understand what a base level of service looks like for partners.

·       Support other partners to maintain service levels above this, where this was desired.

·       Provide details of plans to increase income to maintain resilience in the face of continued financial pressure.

·       Identify potential areas for the partners to expand the use of WRS as a platform for delivery.

Members were informed that all the partners had indicated that financial pressures were either current or visible in the near future; but had yet to inform WRS whether it would be a source of the reductions that some partners needed to make.

Income generation remained a key factor in the service’s business strategy. It was possible that local authorities outside of the county may be encouraged to engage more with WRS and look more widely at contracting services. However, there was growing evidence that current clients were unwilling to engage with the service beyond their current commitments, and as the process of county devolution moved forward, it was possible that district councils may look more closely at resources within their areas.

By understanding the costs and with good support from the host’s Finance team, WRS had been able to forecast its income needs going forward. However, if rates of salary increase remained higher than previously experienced and the inflationary cost pressures continued, particularly on hosting authorities, it seemed unlikely that the service would be able to revert to the model operated between 2016 and 2020, where increased income alone would cover all cost pressures experienced by the service.

To limit the need for future increases, WRS would look to maintain and increase the levels of income that they bring in. This was only viable if the service retained its current flexibility to re-invest income in resources where necessary. WRS needed to also retain and build on the current flexible and well-qualified staff cohort.

More focus than in previous plans was placed on the ability of partners to add functions to the WRS structure, which may provide one way of offering savings in overall cost by rationalising the management and delivery of these activities. The pilot with planning enforcement being delivered on behalf of Redditch and Bromsgrove, which appeared to be having some success, was one example of how this might develop. The plan identified areas, particularly those where the infringements were criminal in nature, which might fit into WRS operations. Whilst it was understood that Members had a desire to keep certain functions close to the point of delivery, WRS Managers would continue discussions with Officers and Members of the Board to identify options that may be viable.

At the budget meeting in November 2022, Members agreed to take back to their respective partners the WRS budget which had included an increase in their contributions to cover the higher than anticipated salary settlement for 2022/23, an uplift for the hosting authorities in 2022/23 to cover huge inflationary pressures, and uplifts for the 2023/24 finances to address a further salary increase and increases in hosting. Uplifts in salary levels during the period were budgeted at 2% but the current employers’ offer exceeded this. Hopefully, inflation would fall in the coming year so, whilst it was unlikely to return quickly to the low levels seen before the pandemic, pressures on both businesses and households would ease during the period of this plan.

There was a WRS reserve of over £100,000 that could be used to cushion the partners from financial shocks to the service. Members had previously agreed that the reserve could be used to cover small overspends at year-end should they occur. This would give the partners an opportunity to look at different options, whether through further funding or other delivery choices, to move forward with their regulatory functions.

The other significant reserve was established last year for the development of the WRS website to both allow direct submission of service requests and license applications into the back-office system and to enable online payment via the WRS website. Work on this project had progressed well and any remainder of the £150,000 allocated would be returned to partners at the end of 2023/4.

The Licencing and Support Services Manager replied to Members questions regarding the IT systems and during this clarified that the system was the customer facing portion of the website. It was also clarified that when the system goes live, Officers would encourage applicants to use the service, however, they would also actively give guidance and support to enable this and that applicants would still be able to apply via email.

The Head of Regulatory Services agreed to add the word “legitimate” before “business” to the WRS vision statement as detailed on page 25 of the main agenda pack, on the request of Councillor Rain, Malvern Hills District Council.

RESOLVEDthat the Worcestershire Regulatory business Plan for 2023 - 2026, as detailed in the main reports pack, be approved.