1. Outcomes, Values and Priorities Workshop 1 Redesign Board 10 th May 2016

2. Workshops and Timeline

3. 1. What is valued about the Council and why? What matters to Members? And to others? 2. What is a Council’s purpose? National expectations Our statutory duties and budget scenarios Changing national expectations - Christie Commission and our evolving relationship with the public 3. What is the Council’s purpose? Regional/local expectations What the public & staff have told us matters to them Discretionary services currently provided The unique features of the Council as a public body 4. Redesign for the Highlands of tomorrow Likely changes and scale of ambition for the Highlands. Overview of Workshops to mid June

4. Successful Councils….. Can identify when to set aside potential differences and work on a constructive basis to support the work of the Council and deliver outcomes for the community as a whole. Are found where Councillors and senior mangers share a strong public sector ethos. (values) Audit Scotland (2012) Roles and working relationships: are you getting it right? Understand what works well and how to get more of it…. To get started on outcomes, purpose and values

5. Think about something you feel the Council does really well. It can be something you are proud of or are excited about. It can be something you’ve been involved in or have heard about. It can be about any of the roles you have as Members. In pairs, take turns in describing your chosen topic and why you chose it – 3 minutes each Don’t interrupt but ask questions to clarify once you’ve heard the story Starting positively …..

6. Representing constituents, communities or the region Something the Council leads or gives direction on – setting strategy and policy The difference made by a service or function – improving outcomes Outstanding performance or improvement from scrutiny Members’ roles

7. Think about something you feel the Council does really well. It can be something you are proud of or are excited about. It can be something you’ve been involved in or have heard about. It can be about any of the roles you have as Members. In pairs, take turns in describing your chosen topic and why you chose it – 3 minutes each Feedback on what you picked Starting positively …..

8. Reflecting on your stories 1.Examples across the four roles? 2.Mix of Ward and Highland responsibilities? 3.Any on public service reform? Prevention, Partnership/integration, People/Workforce development, Performance improvement 4. Any other comments?

9. For each of your stories What made this work well? Starting to get ideas for the Board on values, purpose and outcomes Share the things well done with staff?

10. Find out what others value?

11. Current statutory requirements – what we must do Statutory functions - the what - split by: Where the standards and levels set nationally with consequences for Council expenditure Where standards, levels and frequency of service and expenditure decided by Council Split doesn’t assume the scope for change is limited in how the service is delivered Proposed areas to probe with Heads of Service – Critical analysis. Particular areas to start with? Pair Members and functions? National expectations of Councils

12. Revenue Budget Outlook Derek Yule Director of Finance

13. Background Budget for 2016/17 set on 25 February – No formal decisions beyond current year – But some savings agreed (school year, tranformation) Scottish Government Spending Review – 3 year expected – Grant figures in December 2016

14. Background cont Importance of medium/long-term planning Model various funding scenarios – Greater consistency amongst councils Current forecasts – Cash reduction in revenue grant – Council Tax increase restricted to 3%

15. Forecast Funding Position 2017/18 £m 2018/19 £m 2019/20 £m Base Budget555.731551.043540.331 Cost pressures19.19412.47710.146 Estimated “roll forward” budget574.925563.520550.477 Agreed savings 18/12/14-5.861-8.8300 Indicative savings 25/2/16-1.727-0.5890 Total Resources Required567.337554.101550.477 Revenue Grant430.616415.925402.615 Council Tax120.427124.406128.511 Total Resources available551.043540.331531.126 Net Budget Gap16.29413.77019.351

16. Budget Position Potential savings required over 3 years - £49.415m (9% reduction on current year) Assumptions – Pay and price inflation – Reinstatement of one-off savings – Increased borrowing costs (Capital Plan) – Legislative changes – Grant cut – Council tax increase 3%

17. Issues Financial commitments Scottish Government policies eg teacher numbers Adult Care funding

18. Service Re-design Look at resources available in 2019/20 and plan to get there Link into outcomes, purpose, values and performance data – Outcome measures – Benchmarking – Options for service delivery and Value For Money (Phase 3)

19. Conclusions Financial position will continue to be challenging for the short to medium term Real cash reductions in budgets Continuing squeeze on resources Service re-design to key to determining priorities Information to help set outcomes – Mixture of qualitative and quantitative

20. Please write on separate post it notes 1.What you think was achieved in today 2.What benefit you think this will bring 3.Any concerns you have 4.What to do next/do differently We’ll write this up and feed it back to you Feedback

21. Thank you