BIRMINGHAM CITY COUNCIL Presentation to District+ partners Complex Challenges, Innovative Cities: Kick-off meeting 14th March 2012 Thematic Lead: Innovative Financial Instruments Good morning. My name is Jenny Rice. I work for Birmingham City Council which is located in the West Midlands region of the UK.

Business Development & Innovation Team Improving the economic prosperity of the City by: Creating conditions for business growth and entrepreneurship Encouraging private sector investment Improving access to finance Creating higher value jobs retaining and attracting graduate talent Improving relationship with larger companies Creating a culture of innovation. I am part of the Business Dev & Innovation Team, which falls under the Planning & Regeneration services area. The service’s goal fits into the City Council strategic goal to succeed economically. The team is responsible for: Improving the economic prosperity of the City and contributing to the development of Local Enterprise Partnerships by: Creating conditions for business growth and entrepreneurship; Encouraging and accelerating private sector investment; Improving access to finance through grants and loan schemes; Creating higher value jobs; and retaining and attracting graduate talent; Improving relationship with key strategic companies and Creating a culture of innovation.

Structure of Presentation Budget setting and service delivery Innovative methods of service delivery New sector opportunities Budget setting – there are two models that I will present. The first is what the city did before the recession, and the second is what is being done since the recession has been happening New ways of looking at delivering services New opportunities for the city to invest and work in.

(Pre-recession) Service Delivery Model Elements £ Start with the amount of money that is budgeted

(Pre-recession) Service Delivery Model Elements People, Property, IT, Goods and Services £ INPUTS

(Pre-recession) Service Delivery Model Elements People, Property, IT, Goods and Services Organisations Management Service Design £ INPUTS PROCESSES Inputs generate processes

(Pre-recession) Service Delivery Model Elements Organisations Management Service Design People, Property, IT, Goods and Services Services Interventions £ INPUTS PROCESSES OUTPUTS

(Pre-recession) Service Delivery Model Elements Organisations Management Service Design People, Property, IT, Goods and Services Services Interventions Quality of Life Results £ INPUTS PROCESSES OUTPUTS OUTCOMES Having experienced the recession, through corporate consultation, the city council had to look at putting together a new model for service delivery. Coming out of this, they agreed 3 principles for providing services: To stop providing a service; To reduce To maintain – priority services

(Post –recession) Service Delivery Model Elements People, Property, IT, Goods and Services Organisations Management Service Design Services Interventions Quality of Life Results OUTCOMES £ INPUTS PROCESSES OUTPUTS Succeed economically Prioritise Limit priorities Remove outcomes

(Post –recession) Service Delivery Model Elements People, Property, IT, Goods and Services Organisations Management Service Design Services Interventions Quality of Life Results OUTPUTS £ INPUTS PROCESSES OUTCOMES Choose the most effective Use evidence Stop doing things

(Post –recession) Service Delivery Model Elements People, Property, IT, Goods and Services Organisations Management Service Design Services Interventions Quality of Life Results PROCESSES £ INPUTS OUTPUTS OUTCOMES Demand less input by: Remove duplication Redesign Lean Mgt (cut rework) Cost effective access Reduce complexity Coproduction

(Post –recession) Service Delivery Model Elements People, Property, IT, Goods and Services Organisations Management Service Design Services Interventions Quality of Life Results INPUTS £ PROCESSES OUTPUTS OUTCOMES Cut supplier prices Cut overheads Cut staff costs Sell assets Increase income

Innovative service delivery Business Transformation Public consultation Income generation and maximisation Investment through funding options Financial models BT – This process had already started, before the recession kicked in. BT is all about making fundamental changes to the way the Council works. This is so we can deliver better services to citizens the first time, every time. It is looking at how we do things, but also reviewing what we actually do. It is a long term programme enabling the city to make huge savings over ten years through more efficient ways of working.There are many elements to the process Corporate Services Transformation – more effective procurement of goods and services Customer First – providing world-class standards of customer service Working For the Future – streamlining the city’s properties Public Consultation and Engagement. The city is engaging with the public more than ever on the way budgets are allocated. Eg Be Heard consultation database lets you track what people have been asked, what they have said and what the council or other organisations have done as a result. The new version of Be Heard now includes a ‘Have Your Say’ function which allows you to find out where you can give your views and help make a difference. Income generation – new ideas for income generation, eg People’s Lottery; changes to current charging for services; install solar panels on city properties Funding options – eg Business Improvement Districts – engaging local businesses in their area PFI initiatives, eg 5 year road and infrastructure programme through industry specialist and transfer of resources Financial models – through Finance Birmingham the city is supporting local small & medium sized businesses with funds, loans, equity, and investment support, stepping in where private investment is become harder to access. Finance Birmingham is acting as the agent for the Council to oversee the funds to deliver its programmes. Social bonds – SP to get info

New Sector Opportunities Financial Services; back and middle office functions Shared Services Green automotive production Automotive low carbon R&D Digital Low Carbon Medical Technologies Here are some of the newer industry sectors that the city is getting involved in, eg encouraging investment and relocations

Contact For further information please contact: Jenny Rice +44 (0)121 303 2213 jenny.rice@birmingham.gov.uk Manjit Bassra +44 (0)121 303 4873 manjit.bassra@birmingham.gov.uk