Best Value Thematic Management Report September 2025 - Transformation and Change Programme
Perth and Kinross Council · 17 September 2025
Back to Audit and Risk Committee — 17 September 2025 and its agenda
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Our vision is a Perth and Kinross where everyone can live life well, free from poverty and inequality ___________________________________________________________________ Committee or Board: Audit & Risk Committee Date of Meeting: 17 September 2025 Report Title: Best Value Thematic Management Report September 2025 – Transformation & Change Programme Report Number: 25/136 Report Author: Charlene Guild, Strategic Lead (Projects & Programmes) Organisational Lead: ___________________________________________________________________ 1. Purpose 1.1 This report sets out the findings and four recommendations for improvement contained in the Perth & Kinross Council Best Value Thematic Management Report September 2025 on Transformation & Change. It also provides a response and details actions that will be progressed in respect of the recommendations. 1.2 Sections 1. Purpose 2. Recommendation 3. Background 4. Best Value Thematic Review 5. Key messages and recommendations 6. Conclusion 7. Impact Value Assessment 8. Appendices 2. Recommendation(s) 2.1 It is recommended that the Committee: • Notes the contents of Audit Scotland’s Best Value Thematic Review Report.
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3. Background 3.1 The statutory duty of Best Value was introduced in the Local Government in Scotland Act 2003. In 2025, new Best Value Statutory Guidance was published, centred around seven new themes of: • Vision and leadership • Governance and accountability • Effective use of resources • Partnership and collaborative working • Working with communities • Sustainable development • Fairness and equality 3.2 Between 2017 and 2021, all 32 Councils had a Best Value Assurance Report. Perth & Kinross Council’s took place in 2018 and was published 2019. However, at the end of 2022, Audit Scotland announced that annual audits would be reported to the Accounts Commission on specific themes. This is intended to facilitate more collaboration, sharing of ideas and performance data as well as offering a more detailed analysis of particular aspects of work in all Councils. 3.3 This is the third Best Value Thematic Review which has been completed under this process. The focus for 2025 has been Transformation and how councils are redesigning and delivering more efficient services to achieve planned outcomes. 3.4 The Accounts Commission published the Transformation in Councils report in October 2024, recognising the work that has been ongoing in relation to local government transformation for many years. It also noted a need to significantly increase pace and scale of transformation work which will require a step change. There is also an emphasis on greater collaboration with partners which will be key for councils in delivering more sustainable service models in these challenging financial climates. 4. Best Value Thematic Review 4.1 The Best Value Thematic Review on Transformation has been carried out during the period April to June 2025 with continued discussion and collaboration taking place between PKC Officers and Auditors on a regular basis during this time. Auditors were also in attendance for the councils Transformation Board on 3 June 2025. 4.2 This report considers how Perth and Kinross Council are undertaking their transformation and change work, redesigning and delivering more efficient services to achieve planned positive outcomes, meeting our key corporate priorities and organisational vision. In carrying out the audit work, auditors have considered the following questions:
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o To what extent does the council have clear plans for transformation that link to its priorities and support long term financial sustainability? o To what extent do the council’s programme management arrangements facilitate effective oversight of its transformation plans? o To what extent are partners and communities involved in the development and delivery of the council’s plans for transformation? o To what extent has the council considered the impact of its transformation activity, including on vulnerable or protected groups? 4.3 In addition, auditors have taken into consideration the Accounts Commission transformation principles set out in the Transformation in Councils report. 4.4 The audit has considered evidence from across the Transformation & Change portfolio, including case studies, documentation, evidence of good practice as well as Officer interviews. This has been an indepth process with the Transformation & Change Programme Management Office leading and other project officers heavily involved in submitting information and evidence of progress and benefits. 4.5 The final Best Value Thematic Management Report was received in draft form late July and the PMO have worked with auditors to have this finalised for 22 August 2025. The report itself details the many positive examples of good practice within the Transformation & Change programme as well as benefits and outcomes being progressed and realised. 5 Key Messages and recommendations 5.1 The key messages outlined within the report are detailed below: • Perth and Kinross Council has a clear vision and plan to support the transformation of its services. Its current Transformation and Change Strategy covers the period from 2022/23 to 2027/28 and includes 15 projects. • The council reports that it has delivered £11.2 million of savings since 2022 through its Transformation and Change Strategy. It is not clear how much its current transformation projects will contribute to bridging its projected budget funding gap of £80.4 million over the next five years. • The council has robust officer-led governance arrangements in place to monitor its transformational projects through its Transformation Board.
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• The council prepares updates on its Transformation and Change Strategy twice a year. These are considered by the Finance and Resources Committee or full Council. Officers also regularly provide detailed updates to elected members on particular transformation projects through specific briefings or relevant committee reports. • The council has a temporary programme management office (PMO) in place to help support the delivery of its Transformation and Change Strategy. The PMO’s term is due to end in March 2026 and the council is currently considering what its future arrangements will be. • The council has provided good examples of where it has worked with partners and its communities to improve outcomes and generate savings through its transformation projects. It is rolling out the structured and user-focused ‘Service Design’ approach to transforming its services. • There is scope for the council to provide more information on the potential impacts of its transformation projects on vulnerable groups through its Equality and Fairness Impact Assessment (EFIA) process. • While the council has provided the audit team with examples of where it has identified and monitored the financial and non-financial benefits of its transformation projects, it has plans to further enhance its approach to benefits realisation. 5.2 Further to this, an improvement action plan is included within the audit recommendations and concentrates on four key areas. 1. The council should ensure that its transformation plans are sufficiently ambitious to help to address its funding gap and that projected savings from transformation and change are clearly set out. 2. The council should ensure it has arrangements in place to support, co- ordinate and report on the progress of the Transformation and Change Programme when the term of the temporary Programme Management Office ends in April 2026. 3. The council should ensure it is carrying out Equality and Fairness Impact Assessments where necessary in relation to its transformation projects and that these consistently include appropriate detail at each stage. 4. The council should enhance its benefits realisation arrangements to demonstrate that the projects in the Transformation and Change Programme are delivering their intended outcomes.
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5.3 Council officers have accepted these recommendations as work in progress and already have actions in place to address these areas. There is a tabled plan with timescales and appointed officers which will continue to be progressed and reported on at our Finance & Resources Committee within the Transformation & Change Programme biannual updates. 6 Conclusions 6.1 The four recommendations are already being progressed as follows: 1. The Transformation & Change Strategy is currently under review and will be presented to Finance & Resources Committee later this year for approval and agreement. This will allow more focus on ambition and finance in future. 2. Discussion is currently ongoing to agree future arrangements for the Programme Management Office (PMO) currently in place until 31 March 2026. The PMO has been working well and has established clear frameworks, guidance and support for the programme. These strong foundations will continue to be built upon with new and emerging transformation workstreams being added regularly. 3. Equality & Fairness Impact Assessments are already being carried out regularly and there is good evidence to support engagement with protected groups in terms of project progress. We will work with project managers to underline the importance of ensuring that the EqFIA process is undertaken and also incorporate them with other organisational impact assessments such as climate change. 4. Work is already underway to ensure that our Transformation & Change systems have the additional functionality to capture benefits realised within projects as we progress through phase two. We will also continue to report this at Committee. 6.2 It has been acknowledged that this is a very positive report for the Council in terms of progress of the current Transformation & Change Programme. The strengths of our current practice have been highlighted with some useful guidance for improvement and growth. Progress is already underway, with some detail below, however, regular updates will be provided to the Finance & Resources Committee to monitor progress, maintain momentum and identify further areas for improvement. 7. Impact Value Assessment Best Value Thematic Management Report September 2025 (Adobe PDF documents) 8. Appendices Appendix 1 - Best Value Thematic Management Report
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