We have been clear about the significant financial pressure we are facing, like councils all over the country, and have previously advised you onsteps we can all take to reduce our spending.
Recently, chief executive Andy Begley e-mailed budget holders to give clear guidance and set firm expectations to ensure we are only spending money where it is absolutely critical.
To be clear, the expectation is now that all expenditure is limited to critical spending only, except for exceptional circumstances.
Critical spending is defined as:
Expenditureessentialto delivering services (with maximum efficiency)
Existing and necessary payroll and pension costs
Goods and services already received on receipt of this guidance
Expenditure required through existing legal agreements and contracts (that cannot be challenged or minimised)
Expenditure funded through ring-fenced grants (delivering outputs with maximum efficiency)
Expenditureessentialin achieving value for money and/or mitigating additional in-year costs.
All purchases must have a formal requisition, and remember that we operate a ‘no purchase order, no pay’ policy for all spending. We have been tracking ‘late requisition’ performance for some time, and will now give this increased profile to support wider spending control.
It is everybody’s responsibility to reduce our spending and this includes taking an organised and meticulous approach to budget management. Make sure you allow enough time in your requisition process for all the steps listed above, and that requisitions are only raised where the service considers the spend to be critical in line with the guidance above.
Only by creating positive and disciplined habits now will we become the financially sustainable council we need to be for the future.
