During the early months of 2020, a comprehensive assessment of the MTFS highlighted a significant budget shortfall, posing a risk of being unable to achieve financial equilibrium within a three-year timeframe.

In response, the council initiated a thorough budget evaluation, adopting the tenets of Zero-Based Budgeting, under the banner of ‘Budget Challenge 2025’ (BC25).

In addition, the council encountered challenges in securing a finance business partner, leading to specific complications in capital and assets accounting.

 

The solution

The BC25 initiative assessed all services provided by the council, both direct and support, with the aim of uncovering potential savings of up to £4m (equivalent to 30% of the net budget) over the course of the MTFS period (2021/22 - 2024/25).

Our team was enlisted to oversee the management of the program, establish a structured methodology for conducting reviews, maintain consistency across all evaluations, and present an external perspective to challenge the council.

This developed methodology involved posing a set of consistent questions under various categories, such as:

  • Generating income
  • Identifying easy wins or gradual budget cuts
  • Revamping services
  • Outsourcing opportunities
  • Establishing partnerships
  • Conducting benchmark analyses

In addition to this, the council was facing difficulties in filling the finance business partner role, which was creating specific challenges related to capital and assets accounting.

To address this issue, we provided business partnering support on a service basis, assisting with quarterly monitoring, budget planning, and the closing of capital and assets.

 

The result

We were able to provide this service in reduce time and cost in comparison to a regular agency or full-time employee.

The BC25 programme concluded with a robust star chamber process, involving the leader, deputy leader, Chief Executive and Director of Finance plus the relevant portfolio holders.  

Throughout a span of 10 months, a comprehensive review was conducted across the entire council, resulting in savings exceeding £3m (75%) over the MTFS period.

Clive Mason, Interim Deputy Chief Executive (& S.151), said: “The team at Moore Optima provided high-quality support to Harborough District Council during its BC25 review, managing the process to a very tight timescale, ensuring proper project controls were in place. Their knowledge of local government services was invaluable in providing the external challenge the council required.”