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Tandridge District Council: Bucking the trend

How a Surrey council turned itself around with a transformation programme taking it from the brink of bankruptcy four years ago to being confident in its financial position.

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About Tandridge District Council

Tandridge District Council, in East Surrey, is a small district council with a population of approximately 88,500. It is situated in an area where 94 per cent of the district is classified as Green Belt, the highest percentage in the country. 

The Council has an annual revenue turnover of £58m (2024/2025), which includes running all council housing – managing a stock of around 2,580 council houses - and has an annual capital investment programme of around £25m (2024/2025). 

Since 2019, no party has had overall control of the Council. The Council has been led by the Residents’ Alliance as a minority administration since 2021.

The challenge

By 2021, it had become apparent the Council faced a significant financial challenge and was headed towards having to issue a Section 114 notice. Diminishing resources, poor financial management, the high cost of a failing Local Plan, challenging councillor relationships, as well as the disastrous impact of an externally led transformation programme, left the Council in a position where staff morale was low and the delivery of key services was suffering.

Following the change in political leadership in May 2021 and the appointment of a new Chief Executive in June 2021, the Council acknowledged the necessity for a comprehensive overhaul of its service delivery to residents. 

This transformation required a profound restructure of the finance function and ongoing enhancements to tackle the substantial weaknesses in its financial standing.

The transformation also required buy-in from councillors across all political groups and this was a priority for the new administration which adopted a collegiate and collaborative approach to improvement. 

Phase 1 - Tandridge Finance Transformation (TFT) programme

The first stage of the transformation was to develop an approach to address these issues involving an innovative new joint finance model with Surrey County Council and an aligned finance transformation programme. This was launched in July 2021.

The objectives for the programme were to:  

  • build a trusted, proactive and insightful Finance service at the heart of developing a strong culture of financial management, accountability and evidence-based decision making across the Council.

  • blend the skills, experience and expertise of the Surrey and Tandridge teams to build a high performing, resilient finance function for the Council

  • improve processes and use systems more effectively to ease workload pressure and free up capacity

  • ensure that service delivery to residents was maintained and then improved as the programme progressed.

A key area of focus was to review the processes and structures in the existing Tandridge Finance team and create a culture which raised the profile of financial management and established credibility and trust in the finance function across the Council. 

As part of the TFT programme, within the joint agreement, a business partnering approach was introduced to support the Council. This has been vital in building accountability across the organisation.   

During the very early stages of the programme, it emerged there was a further serious underlying issue - a gap of £920k - within the 2020/2021 budget. This required a forensic review of the finances and a line-by-line review of the 2021/2022 budget position.

A further set of improvements were identified and delivered which built confidence in the underlying financial position for future budget setting and financial reporting. This also allowed the 2020/2021 outturn to be published, the 2020/2021 accounts to be signed off and the 2022/2023 budget to be set and approved (February 2022), all without any further use of reserves.  

During the development and delivery of the Finance Transformation programme, the Council’s administration, the Chief Executive and senior management team recognised there was a need for wider transformation across the Council and in January 2022, a proposal was taken to all councillors, to kick off the Future Tandridge Programme (FTP).

Phase 2 – Future Tandridge Programme

A vision and key objectives were developed for the FTP and agreed by councillors. 

This vision was to create:

A smaller, more strategic, agile and responsive organisation with resources targeted at the Council’s priorities. This would see the Council developing a more business-like approach to the way it operates.

This would be delivered by:

  • developing and implementing  a series of changes enabling a significant reduction in the Council’s own operating costs

  • bringing in strict accounting and reporting rules

  • better control of spending on external contracts and consultants, reviewing vacant posts and deleting those that we could manage without, improved debt-collecting, renting out surplus space at the Council offices
  • a change in the culture and behaviour of the Council
  • a new management structure and operating model to transform the way services are delivered

  • a greater focus on the needs of residents

  • resources targeted to where the need is the greatest

  • a strong performance management culture with clear management accountability

  • a new corporate vision and Corporate Plan.

A set of critical success factors were created, collaboratively with councillors and managers and these encapsulated the aims of the Future Tandridge programme and were used as a reference point for a series of in-depth service reviews.

FTP – Critical Success Factors

Financial

  • An overall reduction in net budget of 15 per cent by 23-24 over 18 months
  • An overall reduction in expenditure on 'back office' functions of 15-20 per cent by 23-24
  • A higher proportion of the budget is spent on 'front-line' services and on the Council's stated priorities

Customer

  • Customers are involved in the redesign of services
  • Customers feedback and insight is used to drive service improvement
  • Customers are encouraged to use the least cost channel to access Council services

Services

  • A mixed economy of service delivery with services undertaken by the most appropriate means
  • Service performance is measured and benchmarked
  • Service performance is demonstrably improving

Staff

  • The Council has a smaller directly improved workforce
  • Managers and staff are engaged and accountable for their performance
  • Staff feel valued and motivated and understand the values and the behaviours we expect of them

Setting the project up and getting people on board with it

The Future Tandridge Programme was structured into four workstreams, each with senior management sponsors and a clear governance and reporting structure, including a target operating model governance group and a delivery and benefits board to oversee the development of scope and the delivery of benefits.

Service reviews were planned and kicked off early 2022, with a clear process and outcome path for each. 

The Future Tandridge programme was resourced with internal resources, as much as possible, with external subject matter experts brought in to provide transformation and change capability, as well as guidance and advice for specialist areas where required.

What has been the result of the programme?

The impact, measured against the critical success factors, has been:

Financial

  • Financial savings: The Council has delivered savings of £6m over the last four years, with £3.2m over the last three years under the Future Tandridge Programme. Savings and a reduction in the cost of support services were achieved in 2022, 2023, and 2024, following the service review process, at the same time maintaining service levels to residents. 

  • Focusing on frontline services: This reduction was largely in back-office expenditure and the percentage of budget spent on resident facing services has increased by 5 per cent over the period.

  • Digital transformation: One of the key lines of enquiry which emerged during the service reviews, was the need to embark on a digital transformation which would reduce resident call volumes and the amount of time spent responding to resident enquiries, as well as achieve savings. The aim was to move those processes that generate the most calls and visits to the Council Offices onto the digital MyTandridge Account, to provide residents with the option of self-service, for activities such as council tax, business rates, benefits, housing, planning, recycling and waste. MyTandridge launched in October 2024 and is being delivered in phases, beginning with revenues and benefits.  

  • Resident engagement and insight: Responses to the 2023 Residents’ Survey demonstrated high levels of internet access and use, confidence online and in particular using websites and apps. The customer account has been tested by residents, with more testing planned as other services are added.  Next year an ongoing campaign will be launched to encourage and nudge residents to use the online account and website to find information, access services and make enquiries. 

Services  

  • Service improvements: In a number of key service areas, performance had dropped considerably. The Planning Service, in particular, was under significant pressure as a result of increased demands on the service and challenges with recruitment. Against the national indicators, the service was underperforming. By resolutely focusing on implementing measures to improve the service, the most recent performance indicators for all kinds of planning applications are well above the required national targets, in some cases achieving a 100 per cent performance level.  

  • New models of delivery: The service review process led to the remodelling of the grounds maintenance contract with a new contract awarded in November 2024. The contract is more rigorous and value for money focused. The Council’s approach to contract management has been strengthened as part of the procurement process. Shared service arrangements have also been considered as part of the service review process, resulting in Revenues and Benefits services being delivered jointly with Reigate and Banstead Borough Council.  

  • Measuring performance: New performance indicators have been and are being developed to enable services to be measured and benchmarked. There has also been an improvement in performance across services. 

Corporate priorities and staffing 

  • Working to clear priorities: A new Corporate Plan (2024-2028) has been developed and adopted. The plan was informed by external stakeholders and residents’ needs. The plan is used to ensure corporate objectives are embedded in annual service planning and the appraisal process, to strengthen the Council’s approach to performance management. Annual appraisals were reintroduced in 2022. The Corporate Plan is also linked to the annual budget setting process.  

  • Leadership team: Key new posts of Deputy Chief Executive and Director of Resources were created to strengthen the senior leadership team. A legacy of the previous transformation programme was a lack of clarity regarding some roles. Restructuring the senior management team addressed this issue

  • Investing in staff: Processes have also been put in place to strengthen managers’ engagement, as well as performance management. A Key Officer Forum for all managers has been set up to improve engagement and two-way communication, ensuring a consistent management approach and creating opportunities for managers to contribute to the transformation programme and corporate working. The Council does have a smaller workforce, with around 275 FTE posts compared to 286 four years ago, but process redesign is in progress and should  help with capacity.

  • Organisational culture: A set of values and behaviours has  been developed and agreed by staff. A recent staff survey showed morale has improved significantly over the last two years and staff feel better informed and engaged in what the Council is seeking to achieve.  

Overall, from the brink of bankruptcy four years ago, through the Future Tandridge Programme, underpinned by a prudent and more robust approach to financial management, the Council’s financial position is now comfortably solvent. 

In September 2023, the then Department for Levelling Up, Housing and Communities wrote to the Council and said:

"The department recognises and commends the Council’s efforts to grip and manage its budget pressures, and the successful steps taken to deliver the transformation and savings programme in 2022/23 and in 2023/24."

This has been achieved while maintaining cohesion and improving services to its residents. It also places the Council in a position where it is much better equipped to face the challenges ahead. 

Lessons learned

What have you learnt as a result of the programme? What will you change, or what has changed, as a result of its success?

Transformation was met with trepidation  from both councillors and officers,  mainly  due to past experiences with previous programmes  which failed to deliver the promised benefits. During the Finance and Future Tandridge Transformation programmes, senior councillors and officers needed to implement strong governance and effective reporting to instil confidence and trust among members and staff. 

This programme exemplifies how collaboration in organisations can be successful. 

Any recommendations for other councils interested in implementing similar projects?

  • Establish a clear vision and well-defined goals

  • create a roadmap detailing the steps needed to achieve the Council's intended outcomes

  • put in place strong governance measures that facilitate comprehensive oversight by both officers and councillors 

  • engaging all councillors is vital – develop an engagement plan, especially as committee decisions draw near 

  • engaging staff is critical – through clear and regular communications, as well as open and honest messaging

  • demonstrating the benefits of the programme to officers is key, especially if the expertise for the change is provided externally. 

Things you may have done differently in retrospect.

Securing ownership within the Council has sometimes been a challenge, as managers focus on service delivery and in some cases there can be a reluctance to embrace transformation. This shift demands a different skillset and in hindsight, the programme may have gained from external leadership in some areas, although this choice brings its own challenges concerning organisational acceptance.

How effective has the project been? Is it likely to continue going forward in addressing its initial objectives?

Four years on and the Council has delivered savings averaging over £1.1m per year for the last three years, equivalent to 29 per cent of its net budget without impacting services to residents. The Council is on course to set a budget for 2025/2026, which avoids both the need for any service reductions and holds a prudent contingency of c£0.5m to mitigate risk. 

Over the same period, through a sustained focus on reducing support service costs and a series of prudent financial decisions, the proportion of its budget spent on resident facing services has increased from 50 per cent to 55 per cent, with investment increased in key priority areas such as Planning.

Next steps

The Council is now embarking on the next phase of its transformation journey. The Future Tandridge Programme 2 will include the following areas of development:

Workforce management 

  • Assessment of pay and reward, recruitment and staff development. 

Digitalisation 

  • Reducing costs further by optimising the use of digital services while maintaining support for those residents unable to use the internet. 

Modernising the council 

  • Continuing to modernise practices and approaches. Investigating opportunities for income generation. 

Transformation is difficult and it can be hard to keep officers and councillors engaged, when services still have to be delivered. The Council is now in a far better place to meet the challenges ahead, although there is no doubt it has been a demanding few years.