Birmingham faces having to save £330 million over 3-4 years due to financial constraints, equivalent to 1/3 of controllable spending. To achieve these drastic budget cuts, the city will rely on business transformation, collaboration, prevention, and self-sufficiency principles to deliver services with dramatically reduced budgets. This will require stopping some services, using technology to support changes, engaging members, staff, and the public, and integrating policy, finance, and organizational change.

1. Responding to the
Challenges – Beyond
2010
Stephen Hughes
Chief Executive
Birmingham City Council

2. • Deliver improved services
• Meet the financial constraints
• Achieve radical change
to deliver better services on
dramatically reduced budgets
The Challenge :

3. The Financial Challenge
Birmingham’s Perspective
• Expect to have to save £330m over 3-4
years
• Roughly equivalent to our Council Tax
income
• Equivalent to ⅓ of controllable spend
• Significantly more than total “back office”
budget

4. The Public Sector Production Function
£ INPUTS PROCESSES OUTPUTS OUTCOMES
People,
Property, IT,
Goods and
Services
Cut supplier prices
Cut overheads
Cut staff costs
Sell assets
Increase income
Organisations
Management
Service Design
Demand less input by:
•Remove duplication
•Redesign
•Lean Mgt (cut rework)
•Cost effective access
•Reduce complexity
•Coproduction
Services
Interventions
Choose the
most effective
Use evidence
Stop doing
things
Quality of Life
Results
Prioritise
Limit priorities
Remove
outcomes
How to save
Elements

5. What we’ve looked at so far
• 30% cut in administration
• c £200m sale of assets
• Further £50m pa saving from Business
Transformation (in addition to £155m net to March
2010)
• Review of income streams
• Market testing options
Provides about £90m pa savings

6. Birmingham’s Budget Plan
• Clear Priorities
• Challenging principles
• Engagement

7. Enjoy a High Quality of
Life
Stay Safe in Clean,
Green
Neighbourhoods
Be HealthySucceed
Economically
Increasing individual’s
personal wealth and
reducing relative poverty
within the city
Tailored support and
protection for the most
vulnerable people within the
community – in particular
children
Enable people to choose
healthy lifestyles and
improve their wellbeing.
Resulting in people LIVING
WELL
Increase public perceptions
of safety and protect
vulnerable people within the
city
Reduce health inequalities
and mortality across
Birmingham. Resulting in
people LIVING LONGER
Create a vibrant low carbon,
low waste economy through
the best use of
environmental technologies,
and ensure that Birmingham
is prepared for the impact of
climate change.
Increase employment and
economic activity within the
city. Ensuring people have
the education and skills to
make the most of job
opportunities
Secure cleaner, greener,
sustainable neighbourhoods
empowering citizens to take
greater responsibility for
their environment
Average wage levels
Inspection Ratings - TBC
Environmental Quality
SurveyCO2 equivalent emissions
Overall Employment Rate
Life ExpectancyPerceptions of crime/safety
QALY/Survey
•Strategic Outcome
•Sub-Outcome
•Measures
Birmingham
2026 Priorities

8. Change Principles
• Business Transformation
• Collaboration
• Personalisation
• Prevention
• Self sufficiency
• [Maximising income]
Digital
technologie
s are
essential to
achieving
these

9. EngagementEngagement

10. Summary
• Unprecedented budget reductions
• Old techniques don’t work
• Must stop doing things
• Use technology to support change
• Educate – Members, staff, public
• Integrate policy, finance and change