St Helens’ medium-term financial strategy (MTFS) began with a zero-based budgeting exercise, with each department’s costs and services challenged by a team of officers from other departments. Analysis was assisted by comparability assessments with similar local authorities, showing average unit and total costs.
High-cost services were identified, with explanations. Action was taken to bring these into line with best practice. Affordable service priorities were set by members over a three-year period, with cash limited budgets for all services.
A performance management culture and system was instilled. The system was developed internally and is accessible to all managers through the Council’s intranet. Service objectives and priorities link to St Helens’ community plan, produced by St Helens partnership. Service development has been agreed through consultation with strategic partners and service users. Budget expenditure and service performance are overseen by strong and effective council scrutiny committees.
Outcomes of the MTFS include elimination of an £11 million underlying deficit, major service improvements and a big cut in unit costs and total spending. Council tax has gone from the highest 2 per cent to the lowest 20 per cent. The MTFS has withstood pressures including a change in political control. Through all party support for the MTFS, council finance has become largely non-political.