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Greater ManchesterWhole Place Community Budget

Improvement and Efficiency Commission

12 April 2012

Theresa GrantActing Chief Executive, Trafford Council

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• Manchester Independent Economic Review demonstrated strength of economy (£50bn GVA), economic assets and companies, private sector growth potential

• Greater Manchester Strategy priorities of economic growth and reducing dependency – Better Life Chances pilots in neighbourhoods

• Total Place mapped total GM spending at £20bn in 2008/09, around 80% of which was spent by LAs, Health and in Benefits – too much on dependency

• Leading Cost-Benefit Analysis developed with 10 Government departments about the whole system costs and benefits of reform

• GM submits place-based budgets proposal ahead of Spending Review

• Community Budgets for complex families announced at Spending Review – 16 national pilots including Greater Manchester

• National Troubled Families Programme headed up by Louise Casey

• GM becomes one of four national pilots for Whole Place Community Budgets

Background to Community Budgets

MIER

Better Life Chances

Total Place

CBA

Complex families

Whole Place CB

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• Public services are too often fragmented and uncoordinated, dealing with symptoms not causes

• This results in poor outcomes, high costs, and constraints on growth

• Changes to public services are often supported by ad hoc funding, and have not been core to ‘mainstream’ public services

• We need to deliver a significant reduction in demand, moving away from unplanned, expensive services towards services that promote self-reliance

• This requires new delivery models, supported by workforce reform and effective use of information, that build on Better Life Chances pilots already undertaken

• And new investment models that enable us to work at scale, with incentives for partners to invest jointly to achieve results for the whole public sector

Why Community Budgets?

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• GM selected as one of four national Whole Place Community Budget pilots

– Others are Cheshire West, Essex and Westminster tri-borough area

• Aim is to prove Community Budgets can work at much wider scale than troubled families, building on experience from Total Place

• Produce evidence that the proposed new ways of working and new investment models make better use of money and improve outcomes, compared to how we do things now

• Major opportunity to work with and challenge Government, to break through silos, reduce impact of the cuts, and inform next Spending Review

Context

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• Brings together joint investment from partners, to achieve shared priorities• To overcome the situation where one partner invests but others benefit• And where time-lags discourage investment in early intervention and

prevention• Involves investing in new ways of delivering services that improve

outcomes, reduce demand for services, and support growth• That are based on evidence of costs and benefits • Support delivery of cashable savings creating a return on investment• So partners can stop delivering current services and start to deliver new

ways of working across traditional boundaries• Can be used for ‘closed’ systems – clearly defined groups, specific problems,

or to deliver specific benefits• Will reduce dependency and support growth, by improving productivity,

worklessness and low skills and creating conditions for growth

What makes a Community Budget?

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Developing a Community Budget

Design New Delivery Model

Use cost benefit to estimate return for agencies

Implement scaled up examples

Use evidence to negotiate investing in scaling up delivery

Track outcomes and financial benefits

Implement New Delivery Model

Extract cashable savings and stop delivery of services no longer required

Establish investment agreement and investment fund to support establishing new services and stopping current services until the problem is overcome

Use some savings to scale up new ways of working and reinvest in early intervention and prevention

Step 1Step 2

Step 3Step 4

Step 5

Step 6

Step 7Step 8

Step 9

Re-start the process to design further new delivery models

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Community Budget StructureAGMA / GMCA Board

Wider Leadership Team

PSR Executive

Chair: Steve Pleasant

Health Service Whole System

Leadership Group

Chair: Steve Pleasant

Greater Manchester Community Budget Core Team

Programme Director: Kevin Brady

Transforming Justice Board

Chair: Peter Fahy

Early Years Board

Chair: Donna Hall

Troubled Families Board

Chair: Kevin Brady

Health Commission

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Examples of the potential impact Community Budgets can have:

• Troubled Families: The Troubled Families Unit suggests there are around 8,090 troubled families across Greater Manchester. Taking 4,000 troubled families out of dependency would require significant investment but could save around £50m across partners.

• Health and Social Care – meeting the needs of vulnerable people, promoting independence, reducing demand and ensuring quality, financially sustainable services. This theme has the potential to save £176m over the next four years

• Transforming Justice – reducing re-offending by 30-40% amongst those offenders who have the greatest impact of communities, whilst reducing the cost of how services are delivered

• Early years – improving performance across early years to at least the national average with a particular focus on school readiness supporting short-term benefits such as school attendance and attainment with longer-term benefits in earnings and workforce productivity. (raising long-term average earnings of GM residents to national average could improve GVA by £340m per annum)

Areas of focus

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Phases of work

Phase 1: March – June 2012:

Route-map that defines which working examples of Community Budgets and other products will be implemented when, during 12/13 and in future years

Phase 2: May – October 2012:

Develop a number of working examples of Community Budgets across the four workstreams that operate at different spatial levels.

Phase 3: Post October 2012:

Develop a clear plan for reducing dependency and supporting growth across Greater Manchester. Scaling up what works based on evaluation evidence of tracking outcomes

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Links for the I & E Commission

• Significant improvement work already delivered as part of the Improvement and Efficiency Programme

• But there are further efficiencies that can be made from meeting existing demand more effectively as reflected in the commissions ongoing work

• Partnership working and collaboration have been fundamental to the commissions work and provide learning opportunities for the delivery of Community Budgets

• The Community Budget approach will take a radical view of service delivery to reduce demand, the work of the commission can support the implementation of these new ways of working

• Commission members can act as advocates for Community Budgets back within own organisations

• Commission members’ links to localities could provide an insight to the most suitable level of service delivery for example, neighbourhood, borough, or wider for various new delivery models