Agenda item

Report for decision. 

ORDERED that Executive:

1.     Approved the Performance and Financial Management Policy;

2.     Approved the Programme and Project Management Policy; and

3.     Approved the Directorate Business Plan development plans as set out at paragraphs 4.4 to 4.8 of the report

The Mayor submitted a report for Executive consideration presenting the proposed Performance and Financial Management Policy, the Programme and Project Management Policy, and the development plans for Directorate Business Plans. Members were informed that the Council Plan served as the organisation’s overarching medium‑term business plan and that the proposed policies were designed to strengthen the Council’s ability to deliver its priorities within a proportionate and robust governance framework.

Members were advised that the Performance and Financial Management Policy set out how arrangements would be put in place to align directorate and workforce activities with the Council Plan, integrate performance, finance and risk into a single cycle, and provide a holistic view of organisational delivery. It was reported that the Policy aimed to embed a clear ‘golden thread’ from the Council Plan through Directorate Business Plans down to individual employee objectives, supporting evidence‑based decision‑making and earlier identification of pressures and opportunities.

In relation to Directorate Business Plans, Members noted that plans would be developed during 2026/27 and refreshed annually thereafter in line with the Council Plan cycle. The Plans would document each Directorate’s key functions, past performance, priorities for the year ahead, key performance indicators and supporting strategies. Members heard that this approach would support transparency, strengthen accountability and promote a consistent standard across Directorates.

Members were further advised that the Programme and Project Management (PPM) Policy had been reviewed in line with the required three‑year cycle. The revised Policy aligned with the Council’s integrated performance, finance and risk framework and ensured that significant and complex change activity was supported by appropriate governance, including gateway processes and a project categorisation tool based on the Council’s risk appetite. Low‑risk, one‑off tasks would continue to be managed as Business as Usual within Directorate Business Plans.

The report outlined the expected impacts of implementing both policies, including strengthened governance, improved ability to identify trends earlier, enhanced transparency, and positive contributions across the Strategic Risk Register, particularly in relation to maintaining a balanced budget and ensuring robust corporate governance. Members were informed that both policies had undergone Impact Assessments, which confirmed positive contributions to equalities, community cohesion, and climate‑related reporting.

Members acknowledged that financial considerations were embedded throughout the PPM Policy, ensuring that programmes and projects were assessed for affordability, value for money and deliverability. It was noted that integrated performance and financial reporting was expected to begin from Quarter One 2026/27.

Members discussed the challenges in successfully aligning performance and financial information in this regard. It was noted that a balance needed to be achieved whereby both performance and finance information were aligned to produce quality outcomes for the Council.

It was also clarified that, with regard to the clinic process, Members would lead on this which would also give senior leaders an effective overview of progress.

OPTIONS

Members noted that the alternative option would have been to maintain separate approaches to performance and financial management or to retain existing project thresholds. It was considered that these approaches would limit the Council’s ability to identify trends promptly and would not align with the principles of Best Value.

ORDERED that Executive:

1.     Approved the Performance and Financial Management Policy;

2.     Approved the Programme and Project Management Policy; and

3.     Approved the Directorate Business Plan development plans as set out at paragraphs 4.4 to 4.8 of the report.

AGREED that Executive:

1.     Noted that implementation of the new integrated arrangements and the development of Directorate Business Plans during 2026/27 would support delivery of the Council Plan and strengthen organisational governance; and

2.     Noted that the revised PPM Policy and associated framework would ensure complex change activity was delivered effectively, consistently and in accordance with the Council’s risk appetite.

REASONS

The decisions supported the Council’s commitment to continuous improvement and ensured that appropriate governance, accountability and transparency mechanisms were in place to maximise delivery of the Council Plan and demonstrate compliance with the Best Value Duty.