Archived decisions

Appendix 5

Efficiency improvements 2006/07 to 2009/10


		Adult Services	Children's Services	Environ- ment	Policy and Resources	Recreation and Heritage	Total
2006/07		£'000	£'000	£'000	£'000	£'000	£'000
Cashable efficiency improvements:
a	AES eligible and budget saving
	Efficiency savings planned in 2006/07	4,861	377	1,281	137	600	7,256
b	AES eligible but no budget saving
	Salary increments absorbed	570	73	358	610	300	1,911
	SAP benefits realisation	-	-	-	496	-	496
	Other improvements	712	50	395	403	-	1,560
	Total b	1,282	123	753	1,509	300	3,967

c	Budget saving but AES ineligible	3,016	-	1,146	-	-	4,162

d	Non-cashable efficiency improvements:	-	545	3,031	595	200	4,371
Totals		9,159	1,045	6,211	2,241	1,100	19,756

Total of all efficiency improvements (a+b+d)		6,143	1,045	5,065	2,241	1,100	15,594
Total budget savings (a+c)		7,877	377	2,427	137	600	11,418


		Adult Services	Children's Services	Environ-ment	Policy and Resources	Recreation and Heritage	Total
2007/08		£'000	£'000	£'000	£'000	£'000	£'000
Cashable efficiency improvements:
a	AES eligible and budget saving
	Efficiency savings planned in 2007/08	5,182	1,165	943	-	600	7,890
b	AES eligible but no budget saving
	Salary increments absorbed	575	310	-	610	300	1,795
	SAP benefits realisation	-	-	-	524	-	524
	Other improvements	737	142	869	-	-	1,748
	Total b	1,312	452	869	1,134	300	4,067

c	Budget saving but AES ineligible	7,206	25	142	-	-	7,373

d	Non-cashable efficiency improvements:	-	320	25	-	200	545
Totals		13,700	1,962	1,979	1,134	1,100	19,875

Total of all efficiency improvements (a+b+d)		6,494	1,937	1,837	1,134	1,100	12,502
Total budget savings (a+c)		12,388	1,190	1,085	-	600	15,263


		Adult Services	Children's Services	Environ-ment	Policy and Resources	Recreation and Heritage	Total
2008/09		£'000	£'000	£'000	£'000	£'000	£'000
Cashable efficiency improvements:
a	AES eligible and budget saving
	Efficiency savings planned in 2008/09	2,039	674	-	-	600	3,313
b	AES eligible but no budget saving
	Salary increments absorbed	-	327	450	610	300	1,687
	SAP benefits realisation	-	-	-	280	-	280
	Other improvements	-	17	303	-	-	320
	Total b	-	344	753	890	300	2,287

c	Budget saving but AES ineligible	1,149	-	-	-	-	1,149

d	Non-cashable efficiency improvements:	-	320	-	-	200	520
Totals		3,188	1,338	753	890	1,100	7,269

Total of all efficiency improvements (a+b+d)		2,039	1,338	753	890	1,100	6,120
Total budget savings (a+c)		3,188	674	-	-	600	4,462


			Adult Services	Children's Services	Environment	Policy and Resources	Recreation and Heritage	Total
2009/10			£'000	£'000	£'000	£'000	£'000	£'000
Cashable efficiency improvements:
a	AES eligible and budget saving
	Efficiency savings planned in 2009/10		530	194	-	-	-	724
b	AES eligible but no budget saving
	Salary increments absorbed		-	344	450	610	-	1,404
	SAP benefits realisation		-	-	-	-	-	-
	Other improvements		-	17	316	-	-	333
	Total b		-	361	766	610	-	1,737

c	Budget saving but AES ineligible		1,392	-	-	-	-	1,392

d		Non-cashable efficiency improvements:	-	320	-	-	-	320
Totals			1,922	875	766	610	-	4,173

Total of all efficiency improvements (a+b+d)			530	875	766	610	-	2,781
Total budget savings (a+c)			1,922	194	-	-	-	2,116

Notes

Cashable efficiency improvements are defined in the annual efficiency statement (AES) as occurring when:

- inputs (money, people, assets etc) are reduced but outputs remain unchanged

- the price of inputs (procurement, labour costs etc) are reduced but outputs remain unchanged.

A reduction in price of inputs is measured in general against the increase in the Gross Domestic Product deflator (likely to be around 2.5% in 2007/08). Thus if the price of inputs remains constant there is a gain of 2.5%.

a efficiency savings that count against the AES and produce budget savings - this will include general procurement savings against the budget provision of a 2.5% increase in prices

b efficiency savings that count against the AES, but do not produce a budget saving because the efficiency is avoiding unbudgeted cost eg staff reductions made to absorb increments, procurement efficiencies where costs are still exceeding 2.5%, capital receipts or developer contributions applied to avoid unplanned additional borrowing

c efficiency savings that do not meet the AES criteria but produce a budget saving. These will include efficiency savings that relate to LEA services to schools (that are outside the scope for AES) and fortuitous savings that are not strictly efficiencies

Non-cashable efficiency improvements are defined in the AES as occurring when:

- increased outputs or improved quality of service are obtained for the same inputs

- increased outputs or improved quality achieved at a rate that exceeds the increase in inputs.

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