The Performance Plan 2006

The Government requires all councils to make efficiency savings of 2.5% per annum for the three years 2005/06 to 2007/08 (giving a cumulative total of 7.5% efficiencies by 2007/08). At least half of these savings must be cash reductions, whilst the rest can take the form of more service outputs for the same level of resources used. Cuts that have an adverse effect on service performance do not count towards the target.

The Council has a well-established record of being an efficient service provider. We are committed to securing further efficiencies and performance improvements both to meet the Government targets and our own Medium Term Financial Strategy projections.

Annual Efficiency Statements – Progress So Far. 

The original target set by the Government for South Cambridgeshire was £513,000 per year for each of the three relevant years. That target has been revised downwards for the last two years because it will now be based on 2004/05 outturns. Table 9 gives our current position: -

Table 9 - Gershon Efficiency Savings

Efficiency Area	04 /05	05/06	06/07	07/08
Government target		£513k	£415k	£415k
Savings achieved	£345k
Estimated savings		£600k	>£550	>£600k

Some of the major projects by which these savings are to be achieved are: -

• Changes to Environmental Health management.
• Increased productivity by the Direct Labour Organisation (DLO) on house repairs.
• Increased waste collection productivity.
• Changes to housing management.
• Bringing ICT provision back in-house.
• Business process reviews as part of the Transformation Project.
• Senior Management Changes as part of the Transformation Project.
• Restructuring of the sheltered housing service.

In 2006/07 we will continue to identify and implement savings to meet the government targets and to meet our own future spending needs. This work will be coordinated and progressed through the Corporate Efficiency Savings Working Group, reporting regularly to the Staffing and Resources Portfolio Holder. Specific targets for 2006/07 will be: -

• To ensure implementation of at least £513,000 efficiency savings for 2005/06 for report in the June 2006 Backward Look Annual Efficiency Statement
• To ensure that the projected savings for 2006/07 are achieved.
• To identify a further £415,000 of efficiency savings for submission in the 2007/08 Forward Look Annual Efficiency Statement.