Local Government Commercialisation: Generating Income To Support More Effective

Public Services

Developing an effective Income Generation Strategy

6th March 2019

Danny MatherHead of Corporate Finance

WBC Profile

• 205k population

• High economic growth

• 2019/20 Budget: £132.9m

• Low funding base

• £1.3bn Capital Programme

WBC – Major Commercial Schemes

• LAMS

• Redwood Bank

• Loans to HAs

• Green Energy

• Housing Company

• Property

• Social Impact Investing

Strategy Drivers

• Austerity

• Budget Cuts

• Demand

• Legal Freedoms

• Markets are broken

• Economic Factors

Why develop a Commercial Strategy?

• Provides for managed transformation

• Allows organisations to pursue efficiencies

• Eradicate any systemic waste

• Managing the demands and expectations of citizens

• Being innovative and creative with opportunities

• Raising income to offset budget reductions where possible

• Shifting mind-sets

Steps to Establishing a Commercial Strategy

Define Engagement

Legal / Procurement /

Finance

Risk Culture

Opportunities

Flexibility

Governance

Objectives / Outcomes

What good looks like…

• Background & purpose• Strategic Aims & Objectives• Commercial Vision• Prudence• Performance Measures• Governance• Risk Management• Investment in culture Change

Link to Other Strategies

Link to Other Strategies

• MTFP• Corporate Plan• Capital Strategy• Treasury Strategy• Property Investment Strategy• Green Energy Strategy• Local Plan• Local Strategies

Simplicity

DO NOT OVER STRATEGISE

Resource the Outcome not the Strategy

Success Factors

• Project Management / Tailored Approached• Solution Focused Teams• Resources• Using the right consultants• Stakeholder Engagement• Networking• Be ready to say NO / STOP• Effective DD• Governance• Skills Development / Culture

Governance

• Cornerstone of success• Strong Business Cases• Wednesbury Principle• Get it right from the start• Ongoing Governance• Out with the Old & In with the new• Tackle difficult issues• Ask auditor for advice• Code Compliant

Due Diligence

• Most important aspect / often ignored• Proactive Risk Management• 3 simple questions

Will we make a returnWhy will we make a returnHow do I avoid loss

• Any niggling doubts – Walk away• Review• Not Rocket Science

Developing Skills & Resources

Developing Skills & Resources

• Baseline Review• Solution Focused Staff• Invest in Training• Consultancy• Business Partnering• Resilience / Difficult• Succession Planning• Systems• Recruit from the Private Sector?????• Networking

Embedding the Strategy

• Investing Resources to support the Strategy• Investment in Change Management, developing

employee capabilities, communications, aligning performance management processes, adapting governance mechanisms will be required to create a more entreprenurial culture

• Resilient• Make it real• Review

Final Discussions & Questions

?Contact:

Danny Mather

01925 44 2344

dzmather@warrington.gov.uk