Introduction

The corporate leadership team (CLT) has identified some guiding principles that budget managers should consider when making spending decisions. These principles will also make sure we tackle our current budget issues.

Service and organisational outcomes and objectives

All the money we spend as a council should align with our corporate vision and priorities and objectives. When you are making spending decisions keep this in mind and consider the following.

• What the spending will achieve

  Think about what the potential outcomes will be from the spend and whether this aligns positively with our objectives.
  
  

• Service outcomes considered in line with the directorate outcomes

  Make sure you consider your service outcomes and align these to the directorate outcomes. You’ll need to agree these with your executive director.
  
  

• Impact on the delivery of the service outcomes

  Your spending decisions should have a positive effect for the service and the target audience.
  
  

• Expenditure provides value for money

  Make sure that any spending you commit to provides value for money for us as a council and for our residents, visitors and businesses.
  
  

• Cheapest way to achieve your outcomes

  Consider whether the amount you are looking to spend is the cheapest way that you can positively and efficiently deliver your objectives.

Statutory duties

There are certain legal and statutory requirements that we must meet, including where a minimum spend limit is set for certain areas such as adult social care and children’s services.

• Is the spend necessary

  Think about whether the spend is necessary for us to fulfil our statutory duties to the recognised minimum standard.
  
  

• What are the risks

  Consider what the potential risks are to the organisation and our customers if we reduce the expenditure or do not spend the money.
  
  

• Priority outcomes or statutory duties compromised

  Would a reduction in expenditure or no spend have an impact on service outcomes and/or effect our statutory duties.
  
  

• Legal liabilities or a breach of our contractual commitments

  If the money is not spent or reduced consider whether this would lead to breaking the law or the breach of a contract we are committed to.
  
  

• Impact on our regulatory compliance

  Consider whether not spending the money or reducing the spend would have a negative impact on our compliance requirements, such as the health and safety at work act or public sector equality duty.
  
  

• Meet best value duty requirements

  This means making sure we constantly improve how we do things, aiming to be efficient, effective, and economical. You should also think about the economic, environmental, and social impact of our spending to get the most benefit. This is something local authorities are required by law to do.

  Find out more about best value duty on the GOV.UK website

Impact of spend

You also need to assess the potential positive or negative impact the spend or reduction could have and how these changes could affect the council.

• Potential reputational impact

  Will the spend or saving have a positive or negative impact on the reputation of the council.
  
  

• Justification of expenditure

  Think about whether you can justify the spend as essential to the public.
  
  

• Develop or maintain opportunities for cost saving or income generation

  Consider whether the spending is necessary to develop new cost saving measures or income generation, such as the purchase of a new system or equipment that will allow more online transactions.
  
  

• Defer spending

  If the spend can be deferred, what are the consequences for the council and the public. Think about the consequences for our residents, visitors and businesses.
  
  

• Impact on other services and organisations

  If you reduce your spending in a particular area, will this impact on other council service areas or partner organisations in terms of cost. Make sure you consult with anyone this may affect.
  
  

• Renewal of contracts

  At the end of an existing contract consider whether it is still required or whether an alternative, cheaper supplier could be used that maintains or improves efficiency.

Other savings

You should also look at other areas where you may be able to make savings.

• Meetings and room bookings

  Try Microsoft Teams or alternative room booking options for your service or team meetings, there are lots of free options available.
  
  

• Working options

  Consider whether changes to a more remote or a hybrid working approach could help your team or service improve productivity, reduce costs and travel time between sites.
  
  

• Mileage claims and travel costs

  Can your team reduce travel and mileage claims by working in different ways or holding meetings virtually.

Looking for the full document?

If you would like a document version of the above essential spending principles, download the document below: