Supplementary A - London Borough of Hillingdon

Use of Resources Judgements │ Theme summaries 13
Value for money
Theme score: 2
Key findings and conclusions
The Council is meeting minimum requirements in terms of value for money.
Overall there remains a mixed picture in terms of the relationship between costs
and the range, level and quality of services provided. Areas of spend which are
significantly higher than comparable councils are understood and generally
relate to the local context. Performance has improved in comparative terms
across a range of services and there have been no significant changes in costs
between 2004/05 and 2005/06. Significant capital resources are being invested
in services in need of modernisation, including adult learning disabilities and
mental health, and this will be needed over a number of years. Investment in
planning services and youth services has delivered performance improvements.
The Council is developing its use of comparative data to assess costs,
performance and the quality of services achieved currently and over time.
Information on equity is being used particularly when key spending decisions
are being made. The council is continuing to develop a vfm culture and has
added a further degree of rigour this year by introducing external challenge to
the medium term financial forecast. Managers have clear objectives for vfm but
the strategic framework for vfm is just developing. The council achieved in
excess of its overall efficiency gain targets and improvements in vfm have been
achieved from major procurement exercises.
Improvement opportunities
KLOE 5.1 The Council currently
achieves good value for money.
• Strengthen the routine evaluation
of costs, building on the embedded
annual service and financial
planning challenge process.
• Ensure timescales and outcome
based targets are set for all new
investments to clearly demonstrate
improvements.
• Improve forecasting and monitoring
of the revenue implications of
capital expenditure.
• Ensure the benefits of partnership
working are supported by robust
evidence of impact on their
citizens, and/or value for money.
London Borough of Hillingdon