Assembly Commission shows leadership in tackling toughest ever financial targets

24 September 2010

The National Assembly Commission has underscored its commitment to showing leadership in managing reductions in the face of a tough financial climate by agreeing to reduce its budget by £1.667million in 2011-12, a reduction of 5 per cent.

This is the first phase of the Commission’s commitment to cutting a quarter off the Assembly’s budget by 2015. The budget makes a 5 per cent reduction in real terms for 2011-12 and a cumulative reduction in the order of 20-25 per cent by March 2014, with an exception of one-off election costs.

Assembly staff will achieve these savings while maintaining the Assembly’s commitment to:

• Protecting the Assembly’s core business;

• Making a successful transition to the fourth Assembly;

• Making changes necessary following the referendum on further powers for the Assembly; and

• Planning for reduced resources as the scale of the cuts to be made beyond 2011-12 will mean fundamental change

The Commission has already taken steps to achieve savings, including looking at the way vacant posts are filled. However in terms of achieving the 5 per cent reduction in the 2011/12 budget, the Commission will also make a:

• £1.4million(4.4 per cent) reduction in salary costs achieved through the early departures schemes offered to staff and tighter recruitment controls;

• £1.1million (3.4 per cent) reduction in ICT costs through managing a change in services delivered through contracts and completing IT projects such as the Members’ Casework System which off-set unavoidable increases from website costs and licences, delivering a net reduction of £0.7million;

• £0.6million (1.9 per cent) reduction in accommodation costs through adjusting delivery and performance targets to reflect changing priorities. This also covers reducing contract spend and reducing or removing subsidies to internal customers, for example through examining our catering and car parking service provision. This off-sets unavoidable increases to deliver a net reduction of £0.4million;

• £0.6 million (1.9 per cent) from a review of areas of the budget where demand will reduce or be managed downwards, such as recruitment costs, travel and stationery costs. Also removal of funding for one-off activities such as the Member mentoring scheme and the staff leadership development programme. This off-sets unavoidable increases, delivering a net reduction of £0.3 million; and

• £0.5 million (1.6 per cent) reduction in public engagement and communications costs arising from the completion of one-off costs related to the Pierhead project and a change to how the service is delivered.

There is also a structural change to the budget process this year as a result of the creation of the independent Remuneration Board which will be responsible for the setting of Members’ pay and allowances. Following the establishment of the Board, the Commission has split expenditure into two separate parts. One is for the expenditure, which will continue to be under the Commission’s direct control, namely the Assembly’s services budget; the other is for expenditure that will be determined by the Remuneration Board, which will have responsibility for allocating the remuneration and allowances for Assembly Members and their staff.

The Chief Executive and Clerk of the Assembly remains accountable for both areas of expenditure in her capacity as the Accounting Officer.

“We are in a tough financial climate and it is only right that the Assembly Commission plays its part in delivering savings,” said Claire Clancy, the Chief Executive and Clerk of the Assembly.

“We are committed to making reductions in our budget but these will not be made to the detriment to the primary roles of this body, which is to represent and make laws for the people of Wales and holding the Welsh Government to account.

“I have confidence that our teams can meet these challenges – they are tremendously committed to the Assembly and, with a clear focus on priorities, we will ensure we deliver savings but maintain effective services for the Assembly”.