To provide an update on the approach proposed to take forward the proposal contained in the Council 2012 Strategy that the Council seeks to optimise income.

The Executive Director for City Services submitted a report (previously circulated, now appended) providing an update on the approach proposed to take forward the proposal contained in the Council 2012 Strategy that the Council sought to optimise income.

Also submitted was a report of the Value and Performance Scrutiny Committee (previously circulated, now appended).

Resolved to:-

1)     Approve the overall framework for charging third parties for discretionary services as outlined in this report;

2)     Approve the overall framework for the supply of goods and services to other public bodies as outlined in this report;

3)     Delegate the decision on whether to enter into arrangements with private sector bodies under which the Council would charge for services provided within or outside the City to the relevant director, provided that the value of such arrangements does not exceed £100,000.

4)     Delegate the decision on whether to enter into arrangements with other public bodies under which the Council would provide goods and/or services to such other public bodies within or outside the city to the relevant director, provided that the value of such arrangements does not exceed £100,000.

5)     To agree the recommendations of the Value and Performance Scrutiny Committee namely:-

(a)   Should the Council wish to go beyond the arrangements already in existence to reconsider the governance arrangements proposed within the strategy.

(b)   When considering the use of spare capacity to undertake trading activities the relative options, risks and returns need to be fully documented in order to make an informed decision.

(c)   To provide a report in years time showing:

-           The services sold or traded

-           The amount of money raised

-           The effects of this within our budget identifying specifically, if possible, where this has allowed us to reduce the costs of services within our budget

Contact Officer: Tim Sadler, Executive Director for City Services

Tel: (01865) 252101, email: tsadler@oxford.gov.uk

The Executive Director for City Services submitted a report detailing the Council’s proposals to optimise income through charging for certain services. The report would be submitted to the Executive Board later in the month.

The Committee came to the following conclusions:-

It was clear from answers to questions that it was not the intention at this stage to move much beyond the activities that are already undertaken.  Instead the focus was on extending these and other like opportunities in an effort to reduce overheads and therefore reduce the cost of services to the public.  As these opportunities are already governed by current delegated powers the committee is happy that adequate governance arrangements exist.  Should the intention in the future be to move beyond this into areas of greater risk then the committee would want reconsideration of the governance arrangements that stand.

The report mentions the use of spare capacity in services to raise income (section 3).  The committee recognised that spare capacity comes in a number of forms and for a number of reasons but would want to see a sound financial and risk match between trading services and reducing capacity.

In order to take a view on success within this strategy the committee would ask to see a report in a year’s time showing:

•           The service sold or traded

•           The amount of money raised

•           The effects of this within our budget identifying specifically, if possible, where this has allowed us to reduce the costs of services within our budget.

Resolved to make the above views know to the City Executive Board’s meeting on 21 September 2011.