Basildon Council Commercial Strategy 2018-2021

COMMERCIAL

STRATEGY
2018-2021

OUR JOURNEY

Basildon Borough Council

Our vision for Basildon Borough Council is to be a commercial innovator and public sector entrepreneur, in order to preserve the
public purse and support our medium term financial strategy.

This will be achieved through: competing in markets of supply and purchasing
the generation of new income and efficiency savings effectively managing contracts
maximising existing revenue streams prudent investment into assets.
collaborative partnerships

All underpinned by a robust Commercial and Financial Strategy.

Our staff will work in the best interests of the community. We will embed a commercial culture where valuable skills and
opportunities are nurtured, and create a more business-orientated organisation which both staff and residents are proud of.

Our purpose is to preserve the public purse, to support the medium term financial strategy and to enable the reprioritisation of
resources to deliver maximum outcomes for our community.

STRATEGY Outcome One: Outcome Two: Outcome Three:

OUTCOMES To generate income through To build strong working To embed a commercial
commercial activity, whilst partnerships with public, private culture within the council,
ensuring we support the and third sector organisations in supporting our staff to embrace
delivery of quality services to order to maximise collaboration entrepreneurialism and produce
our residents. and stimulate financial savings. new ideas through workshops
and training sessions.

Outcome Four: Outcome Five: Outcome Six: Outcome Seven:

To support the council in the To improve the commercial To stimulate business growth To optimise the council’s use
delivery of the corporate plan awareness and buy-in of our and trading opportunities in of technology and support
and growth agenda as a key leadership teams and members order to further the commercial the digital agenda in order to
element of the medium term through dedicated training development of the council enable new ways of working,
financial strategy. programmes. and deliver wider benefits to the generate savings and improve
community. service quality for our staff
and residents.

WHERE ARE WE NOW? Successes to date:

Challenges faced: • Creation of a Commercial Asset Portfolio
• Cashable returns generated
• Reduction in central government funding to local • Savings derived from the Basildon-Brentwood Council
authorities
Revenues and Benefits Partnership
• Increasing demand and the rise in the ageing population • Formal launch of the Commercial Asset Acquisition
• Greater uncertainty and financial pressures
• Increased market competition Strategy
• High level of national risk and economic factors. • Creation of a multi-agency community hub and generating

substantial income
• Delivery of Sempra Homes to address housing demand.

HOW ARE WE GOING TO REALISE OUR STRATEGIC OUTCOMES?

• Act with intelligence and agility • Create a sustainable commercial programme
• Embrace transformation • Know the marketplace and act competitively
• Understand that resources are required for growth and change • Establish a strong commercial culture and uplift staff skills
• Develop and operate within a strong governance model • Drive digital enablement, product sets and efficiencies
• Act with integrity and high ethical standards • Demand more from service providers and contracts
• Protect public funds and manage risks effectively • Ensure we get value for money for our communities
• Embrace commercialism and maximise income • Listen to our staff and customers
• Create opportunity and then nurture it • Actively seek and work with our partners commercially
• Actively market our resources to provide services for other • Engage with specialist professional partners
• Pursue opportunities to generate efficiences and financial
councils through partnership working
• Know when to stop doing something savings
• Greater focus on procurement and contract management • Dispose of assets when the market is no longer viable.

THE PRINCIPLES WE WILL FOLLOW

£

1 2 3 4

What are the goals of the How will we fund and Who will make this happen? How does the strategy
journey? resource the journey? support the delivery of our
Endorsement from Members of organisational goals?
Create opportunity for staff and Achieve annual targets the Council
residents Return on investment to fund Sponsorship from our senior Robust financial and commercial
Generate cash to invest in services leadership team service programmes aligned to
members priorities, services and Making every penny count Facilitated by a highly-skilled the corporate plan
improvements for our residents Exploring opportunities to sell commercial team Supports the MTFS and the
Maximising value from our assets and share our services Collaboration across all council closure of the funding gap
and income streams Maximising existing revenue services and teams Uses commercial activity to
Become a self-sufficient authority streams External specialist support leverage funding opportunities in
Expand commercial Seek new opportunities for Initiatives owned by services. order to support regeneration
understanding across our income, savings and trading of the borough.
organisation Effective and proportionate risk
Optimise the use of technology management
Enhance the council’s reputation Strategic and operational
as a commercial organisation planning
Working with partners Access to government grants and
Stop activities that add no value other funding
or benefit to customers Spend to save initiatives.
Challenge where services can be
commissioned.

5 6 7

What is the governance How will the risks be What are the tools we
structure? managed? will use?

Annual review of governance Partner with industry experts and Exercise statutory powers
processes specialists Shared Service agreements
Regular senior leadership Ensure transparency and effective Crown Commercial Service
team meetings communication framework agreements
Alignment to the corporate Rigorous approval processes and G-Cloud framework agreements
governance structure project scrutiny Joint ventures partnerships
Delegations from committees to Following corporate risk Arms length management
ensure an agile approach. management and mitigation organisations
procedures Trading vehicles.
Effective management of
contracts
Meticulous due diligence.

OUR COMMERCIAL PARTNERS

The council’s partner together Basildon Borough Council Citizens Advice and Job Representing the largest DWP
in order to deliver quality partners with Castle Point Centre Plus are another two co-location in the UK, this
revenues and benefits and Borough Council to support partner bodies who are pivotal partnership delivers services
repairs and maintenance their planning services, members of the Community directly to residents within
services in a nationally contributing to the generation Hub, commanding a ‘front of a single community hub
recognised partnership of ongoing income for house’ presence in order to based in Basildon. Not only
agreement that is set to Basildon. deliver essential services to does the council generate an
continue growing in the residents. income from this successful
future. partnership, but it has also
received national and royal
recognition.

In August 2017, the council Both Essex Police and the Basildon Borough Council used The council established
procured the services of Asset National Probation Service a Section 101 approach to Sempra Homes as a
Investment specialists DTZ have personnel permanently deliver the Audit Services of commercial arm dedicated
Investors, in order to support based at the Basildon Centre Rochford District Council in to the construction of
with the deliver of the as part of the wider Customer order to generate a new affordable rent, shared equity
Commercial Asset Acquisition Partnership Programme and income stream. and private sale homes.
Strategy and the investment of form an integral aspect of the
£80m in commercial assets Community Hub.
across the UK.

COMMERCIAL

STRATEGY
2018-2021

www.basildon.gov.uk