Agenda item

A report by the Director of Finance, Performance and Procurement setting out the performance and finance position as at the end of December 2018.

The Committee is asked to examine the data and supporting commentary for the December 2018 Total Performance Monitor (TPM) and make any relevant recommendations for action to the Cabinet Member or a relevant Select Committee.

85.1  The Committee considered the December 2018 Total Performance Monitor (TPM) report from the Director of Finance, Performance and Procurement (copy appended to the signed minutes).

85.2  The Cabinet Member for Finance and Resources introduced the finance element of the report and outlined key information for the Committee. Despite the budget pressures teams are working hard to bring the budget overspend under control and this has reduced since September. Officers are aiming to not draw down from the budget management reserve.

85.3  The Committee made comments in relation to the TPM finance reports including those that follow. It:

·         Queried what the negative impact resulting from the decreased Libraries income stream was expected to be, and what is the long term solution for mitigating reduced income from late fees. The Cabinet Member for Finance and Resources explained that due to efficiencies and increased use of the online Library system less items are being returned late and incurring fees; mitigation works are ongoing. The Leader encouraged Members to learn more about the Libraries Hub plan at the upcoming Member Day.

·         Noted the growth in adult residential care placements costing above the Council’s usual maximum agreed rate, and queried whether this is due to care home closures pushing prices up. The Leader explained the increased costs are due to the high value of land and it being a tight employment area. Officers are working to promote the care sector, active steps are being taken to develop the local care market, and residents who wish to remain in their own homes are being encouraged and supported. Gillian Keegan MP has been asked to set up an All-Party Parliamentary Group (APPG) on the professionalisation of carers.

·         Expressed concern regarding the current and future overspend on home to school transport, requested officers give consideration to running Council minibuses to reduce the cost of taxis, and noted the minibuses could also be used for community transport outside of school run times. Members agreed to refer school transport to the Children and Young Peoples Service Select Committee (CYPSSC) for scrutiny at an appropriate time, including the use of County minibuses which could be used outside of school hours for Community Transport. The Cabinet Member for Finance and Resources commented that the use of solo taxis was an ongoing issue experienced by this Council and most other Authorities, and the issue is under consideration.

·         Expressed concern regarding the current and future overspend on children’s care placements and queried whether this was due to children’s home closures. The Cabinet Member for Finance and Resources explained the Cabinet Member for Children and Young People is undertaking a full review of children’s care homes.

·         Noted the overspend on educational psychologists and queried whether service demand is being met and plans made for future service provision. The Cabinet Member for Finance and Resources commented that issues will be addressed through the budget process.

·         Queried whether the £6m grant from Government for road maintenance is ring-fenced and whether the works are on target. Members recommended the Environment, Communities and Fire Select Committee (ECFSC) Business Planning Group review the spending of the £6m highways pothole grant. The Leader explained the time limit to use the grant funds has been extended as authorities struggled to resurface roads during the winter months, however the Highways team are pushing ahead with the work and the grant will be used.

85.4  A presentation was given by officers from the Insight Team on key performance indicators in the Economy portfolio (copy appended to the signed minutes). The information gave a deep dive into the performance statistics for 2017 released by the Office of National Statistics (ONS).

85.5  The Committee made comments in relation to the TPM performance report and presentation including those that follow. It:

·         Commented that infrastructure across West Sussex should be made a key improvement, as the A27 is not a sufficient road link and the rail service to London requires improvement. Members expressed concern that infrastructure is a key factor in the growing prosperity gap between the north and south of West Sussex and highlighted the need for this to be addressed.

·         Noted that wages rise alongside education, and expressed concern at the rate of those who attend University in the county moving out of West Sussex for employment. The Leader has raised this issue with the Chancellor of the University of Chichester; it is hoped that the Creative Hub at Bognor Regis, due to launch later this year, will help to retain talent within West Sussex. The Principal Insight Analyst noted that the Insight Team have purchased data regarding which higher education subjects are studied, where students are studying, what sectors students go on to work in after graduation and if they return to West Sussex to work. Nursing is studied by the highest number of students from West Sussex, though with Higher Education providers other than University of Chichester; it is also a sector in West Sussex that employs one of the highest numbers of leavers 6 months after graduation.

·         Queried in relation to the survival rate of businesses whether officers are aware of why businesses are failing, whether the Council can help to decrease failure rates, and suggested that best practice and learning could be shared with businesses to assist them. The Principal Insight Analyst commented there is no data available on the reasons for businesses failing, however it is possible that cash flow may be a factor.

·         Queried what practical use the data is put to within the Council. The Principal Insight Analyst explained the data is included in the evidence and SWOT analysis in the Economic Growth Plan and is used by the Economic Development team. The Leader commented the data helps show how the economy is boosted and what role the Council has played, for example by boosting the economy along the coastal strip.

·         Commented that the Tableau system provided excellent statistical analysis and encouraged its use within the wider Membership, that deep dive information is welcomed by the Committee, and that the economy information would form a good issue for a Member Day.

85.6  The Director of Human Resources and Organisational Change introduced the Workforce section of the TPM.

85.7  The Committee made comments in relation to the TPM workforce report including those that follow. It:

·         Commented in relation to sickness absence that it would be helpful to also have information by Department in future reports in order to see where absence peaks. The Director of Human Resources and Organisational Change explained officers do have the data and will be starting dialogue with the departments with higher sickness rates. A more in-depth analysis will be provided to the Committee twice yearly via the TPM workforce report.

·         Expressed concern regarding employee mental health as the top reason for long-term sickness absence, sought to understand the cause of this, and queried whether this has resulted from the recruitment freeze. The Director of Human Resources and Organisational Change explained mental health is often a complex set of circumstances and impact by the recruitment freeze is possible. A staff wellbeing survey will be undertaken to aid understanding, and recent changes have been made to the appraisal scheme to improve the process and aid discussion of performance needs and wellbeing.

·         Commented that stress at home can also impact upon performance at work and sickness absence rates, that 10 days sickness per year is a high average and queried whether a lower target figure has been set to be achieved. The Director of Human Resources and Organisational Change explained that informed performance targets for sickness absence rates will be put in place in the coming year, and then reported in the next workforce report data.

·         Members queried whether managers will be trained on how to achieve better outcomes for staff, how staff will be incentivised for better performance, and what evidence will be required for not awarding a pay increment. Members expressed concern that it is difficult to incentivise an individual at the top of their pay scale. The Director of Human Resources and Organisational Change commented that managers need to be trained to manage and lead their staff and then be held to account for performance. In April 2020 incremental pay progression will commence based on performance being assessed as good or outstanding. This will be separate to the cost of living Pay Award negotiated by the Unions which would be received by all staff. Mid-year and year-end assessment discussions will be used to determine whether performance objectives and outcomes are on target or have been achieved and to give an overall view of an individual’s performance; this will identify any development needs and evidence will be gained through discussion between the staff member and manager. The setting of clear objectives and outcomes is therefore key to being able to measure performance.

85.8  Resolved:

1)   That the Committee recognise the work being done to manage the overall budget overspend, and commented as above on particular concerns regarding residential placements for both Adults and Children’s services, and school transport;

2)   That the Committee recommend that CYPSSC review school transport at an appropriate time;

3)   That the Committee recommend the ECFSC Business Planning Group review the spending of the £6m Highways grant;

4)   That the Committee welcomes the performance data presented and the work being done to improve the economy of West Sussex;

5)   That the Committee recognises the need to improve infrastructure and education across the whole county, particularly in the south-west region, and highlights that transport connectivity is key;

6)   That the Committee recommends a review of why businesses start up and survive so that best practice can be shared across businesses to further improve the county’s economy;

7)   That the Committee welcomes information on sickness absence by Department in future workforce reports;

8)   That the Committee recognise mental health issues as a key sickness absence area and welcome the work being done to understand and address this;

9)   That the Committee welcome more detailed information to be provided in the next quarter’s TPM report, particularly the inclusion of informed targets for sickness absence; and

10) That the Committee support the training of managers to improve performance within Council departments.