The Last 4 Years

• Our achievements since the last election are abundant. I would like to congratulate my colleagues on a job well done. Unfortunately, given the time available, I can only cover the highlights.

• The Conservative group's manifesto for the 2005 election built on the achievements of the previous 4 years which were characterised by opportunity, independence and environmental stewardship. The 2005 manifesto included stronger themes around choice and value for money.

• One of this administration's biggest achievements has been the promotion of parental choice in the selection of schools for their children. In 2007 95% of parents saw their child gain a place at a school of their choice.

• The personalisation of care for vulnerable adults is a priority of this Council. We know that it improves the quality of life for those being cared for, their friends and their families. Essex has been one of the country's strongest proponents of Direct Payments and Individual Budgets, allowing our citizens to exercise choice over their care needs.

• This administration cares about public transport. Against a national backdrop of declining use, Essex County Council has improved the availability of public transport and the number of citizens that have chosen to use it has significantly increased.

• We have introduced, and subsequently extended, a Park and Ride facility in our County town, launched the Essex Traffic Control Centre and implemented Safer Journeys to School schemes across the County.

• In education, Essex’s children's achievements are improving every year. For example, the percentage of pupils achieving 5 grades A* -C has improved at twice the rate of statistical neighbours during the last 2 years.

• In 2005 we committed to reduce the number of failing schools and achieved an enormous reduction in the number of schools in special measures.

• The skills agenda has been particular focus, which has resulted in many of our citizens being better equipped than they might otherwise have been to deal with the recession. This is evidenced by the proportion of NEETs being halved since 2005.

• I could go on and mention our successful regeneration work, improvements in services to rural communities, reduction in crime, fear of crime and the causes of crime, our focus on value for money and the £42m worth of efficiency savings delivered, the huge increased in recycling and our commitment to environmental stewardship, among many other things.

• We are an excellent and highly achieving local authority, thanks in no part to the stability and vision of the members here today.

Background to this year's Budget:

• Setting the budget in the context of a recession is a significant challenge - in such circumstances how do we continue to deliver excellent services?

• For the last few years we have adopted a prudent approach to financial management, in order to protect our citizens and insure a continuation of service delivery in the event of diminished resources.

• This year that prudence has paid off - we are now able to take action on behalf of our citizens and continue to work towards our goals.

• Last year we launched EssexWorks, an articulation of our vision for delivering the best quality of life in the UK, which forms a contract with the citizenry.

• In such testing times it is imperative that our citizens can trust us to make good on our promises. The annual EssexWorks pledges provide a simple, visible method of holding us to account.

• Fundamentally, EssexWorks is about putting the customer at the heart of everything we do, ensuring that our services are driven by our customers' demands and aspirations.

• EssexWorks is a hugely ambitious vision. To deliver it, we must transform our organisation, becoming far more flexible and efficient.

• Before I move onto the EssexWorks priorities, I can announce the level of Council Tax increase. This year, our citizens are facing the most testing economic conditions for decades. That is why we are today announcing the lowest Council Tax increase since the tax was introduced. Council Tax will this year rise by just 1.9%.

EssexWorks Priorities:

Overarching Priority: Putting the Customer First:

• The overarching priority of EssexWorks is to put the customer first.

• Customers' needs are a product of their environment - as the world changes, their demands and priorities will change.

• It is therefore imperative that we are flexible and responsive to emerging demands, able to shift our emphasis rapidly and redeploy resources appropriately.

• For example, last year we put our customers first by acting to save Essex Post Offices, recognising the value that our citizens place on these services. The acclaim we received for this initiative indicates the appetite of our citizens for bold and decisive action to respond to their demands.

• This year we recognise that the worsening economic conditions are our customers' primary concern.

• Therefore an economic theme runs through this year’s EssexWorks pledges.

• The economic conditions also present opportunities for our county. We can re-profile our economy, creating more local jobs in the long term. We can encourage and facilitate an up-skilling of our workforce. The conditions invigorate our determination to be efficient for our customers.

• The Putting Our Customers First priority is an overarching priority –- it drives continuous improvements across our whole organisation. It is the only priority for which we do not make an annual pledge.

• Nevertheless, at the end of last year we announced a number of measures to support our citizens and businesses. The work is ongoing and we will always be seeking new ways to best serve our customers but today I can commit to a number of initiatives.

Essex Savers:

• We are an outward looking organisation, constantly seeking to learn lessons from communities across the country and around the world. In other countries Credit Unions are more prominent than in Essex; they are seen as a valued resource by their customers. Our citizens deserve to benefit from such a service. We will therefore invest £170k over the next 3 years in Essex Savers, an existing Credit Union, in order for it to grow and support even more of our county’s most vulnerable people.

Bank of Essex

• Access to credit for many of our county's and medium businesses has dried up during recent months, causing huge difficulties for many otherwise viable businesses.

• The County Council has committed to help address this liquidity problem. We will shortly be entering into a partnership with an existing financial institution to lend £50m to local SMEs.

• We have an ongoing dialogue with the business community. We know that there is an increasing feeling of alienation with the remote, impersonal banks and that there is an appetite for a more localised, familiar banking model. The UK's consolidated banking industry does not create conditions in which local businesses are able to engage with local banks and receive a more personalised service - the structure of the industry precludes a discretionary approach to risk management when making loans.

• In the US there are over 8,000 community banks; many of which are prospering, even during the current economic crisis. They know their customers and their customers know them.

• The County Council is investigating the feasibility of establishing its own local bank, to stimulate the market into providing services that we know our citizens and businesses would value.

Council Tax Support

• The details of our Council Tax support scheme are being finalised and £100 cheques will be sent to 30,000 of the county's most vulnerable households very soon. This initiative will not just help the recipients of the rebate - the £3m investment in this scheme is likely to be spent in the Essex economy, representing a fiscal stimulus.

Apprenticeships

• This Council recognises the value of work based learning and as such, we are doubling the number of apprenticeships offered by our organisation. But we will not stop there. The public sector in Essex could take on many more apprentices and we will be playing our part in leading such an uptake.

Procurement

• We have assessed our procurement frameworks and made a commitment to accelerate the payment of invoices. This measure will free up approximately £17.5m in cash flow for our local suppliers, thereby injecting much needed liquidity into the local economy.

Putting our Customers First - Essex Transformation:

· We unashamedly aspire to be the best local government in the world. We cannot deliver the best quality of life in the UK without achieving excellence in every facet of our work.

· To be the best, we need to challenge ourselves. We need to challenge our assumptions and prejudices about the way that things must be done. Our customers do not care for bureaucratic boundaries or professional silos. They care about receiving the best possible customer service and we will continuously improve and innovate so as to exceed their expectations.

· Self awareness and reinvention characterise some of history's greatest leaders. As community leaders, we need to demonstrate the same qualities.

· We are a self aware organisation. We recognise our strengths and, most importantly, we recognise the areas that we need to improve. Our current organisational capacity and capability is insufficient if we are to achieve our ambitions for our citizens.

· Reinvention forces us to refine and develop our skills and approach our work with renewed vigour and determination.

· Essex Transformation is about reinventing our operating model - creating a structure that is less confined by historical quirks and professional barriers and is driven by the customers' needs. It is an enabler of the EssexWorks vision We must work for our customers, not for ourselves.

· Our customers expect efficiency - both in terms of efficient use of resources and efficient processes to quickly and ably respond to their requirements. Putting our customers first means spending the money they pay us on their priorities and facilitating an environment that allows them to reach their potential.

· We need to transform to become more flexible, to be able to keep up with future challenges and quickly seize future opportunities. The rising demands of our customers, which arise partly from an ageing population, create a large affordability gap in the future if we do not change our approach. The status quo is untenable.

· Transformation might mean that some aspects of our work are in future delivered by external 3^rd and private sector organisations. We are proud to be pursuing the best possible mechanisms for serving our citizens.

· Reducing the amount we spend on supporting our organisation will be one product of Essex Transformation but it is not the main purpose of the programme.

· Continuous self appraisal and reinvention will be a feature of public services in the 21^st Century. We must delight our customers. We need to be at least as good at service delivery as the best that the private sector has to offer.

· The remaining priorities of EssexWorks were devised following extensive consultation with our customers.

Our People:

Priority 1: Increasing Educational Achievement and Skills

• We believe that investment in education and skills development is one of the best ways of growing and safeguarding our economy and enhancing our citizens' quality of life.

• In a time when fear of job losses is so high it is more important than ever to equip our residents with marketable skills that will help them enter gainful, productive employment.

• Last year we pledged to introduce radical initiatives to ensure diverse, high quality secondary schools in every area of the county.

• Reorganisation of Colchester Schools, establishing Basildon Academies, setting up an Academy in Clacton and securing an expression of interest in Epping have all contributed to the achievement of this pledge.

• Reorganisation of schools is one of the most difficult tasks a local politician can be involved with. The status quo is seen as easy, and thereby attractive and the resistance to change creates a formidable atmosphere for progress. We are committed to lifting the standards of our schools and will not be phased by the scale of the challenge. The framework for world class vocational and academic education in Essex has been set.

• This year our pledge supports the priority and also has an immediate impact on our economy.

• We provide support and education to over 300,000 young people. A key driver of their educational success is their pride and attachment to their learning environment. Pride in a school has been shown time and again to help engage pupils and optimise their achievements. We believe in ensuring that school buildings are of the highest possible quality.

• The construction trade has borne much of the impact of the recession so far. Investing in enhancements to schools will help some of our county’s workers who need it most.

Pledge: We will improve the quality of school buildings in Essex by investing an additional £10m in school maintenance and refurbishments.

• We are making this pledge to address the failure of central government to allocate enough resources to this crucial objective. I have been visiting many of our county's schools during the last few months and am not willing to see any of them descend into disarray because of a lack of funding. Our children deserve better than that. We will fill that gap.

Priority 2: Supporting Vulnerable People:

• The challenges of serving an ageing population are well documented - the cost of delivering Adult Social Care, for example, has soared over the last 10 years.

• Our overall investment in services for vulnerable people this year is £506.3m plus £11.4m capital investment. This represents the largest of our investments.

• We believe in safeguarding the county's children at the highest possible standard. Over the last year we have installed a new team and devised a new approach and are the first local authority to embrace the opportunities of social pedagogy. To ensure that we are affective in this area of our work, I can today announce that we are spending an additional £40m over the next 4 years in children’s services, with an additional investment of £23m this year.

• This Council believes in ensuring that our most vulnerable customers enjoy the best possible quality of life - an aspiration that is in part delivered through enabling people to exercise choice over their services.

• The quality of our adult services is extremely high and I am proud that this year we were again awarded the maximum 3 stars, reflecting the excellence of our services.

• Last year, we pledged to increase tenfold the number of Adult Social Care users provided with Personal Budgets. We have already exceeded this stretching target, enhancing the lives of service users across the county.

• This year we are continuing our policy of empowering people to make their own choices, stay independent and, if they choose, remain living in their own homes for as long as possible. This policy has two major benefits. Our customers have told us that it has a huge impact on their quality of life. It is also efficient - customers who are able to enjoy staying in their own homes cost us less money than those that are admitted to care homes.

Pledge: We will offer Telecare equipment and support to all Essex residents over the age of 85 and other vulnerable groups enabling them to live safely and independently in their own home.

Priority 3: Promoting Health and Leisure

• Last year's Beijing Olympics and Paralympics laid down the gauntlet for the London Games in 2012.

• The spectacular events, remarkable backdrops and sense of excitement in China was palpable around the world.

• I was proud of the phenomenal achievements of the British Team.

• The Olympic and Paralympics Games represent aspiration and demonstrate what can be achieved with dogged spirit, sacrifice and hard work. They offer a potent symbol of hope, particularly at this time.

• Last year we pledged to support young people in Essex to fulfil their sporting potential. In total 56 Grants have been awarded to talented athletes. I am sure that many of the members of the GB team will have emerged from Essex in 2012.

• This year, as the recession bites, many families will be looking for attractions and activities that are affordable and accessible. Our customers tell us that they will have fewer foreign holidays and that they value local attractions. Such facilities often represent the very best of local arts and heritage, which bring pleasure to our customers through the generations and enhances their quality of life. Given the long term benefits that they bring, it is highly important that local attractions are able to operate under the current economic climate.

Pledge: We will make available a £1m in a 'life raft trust' to keep open a range of Essex attractions during the economic downturn.

Our Economy:

Priority 4: Improving transport

• Public surveys consistently tell us that the level of traffic congestion, public transport and the condition of our roads and pavements are all among the ten most important issues for our residents.

• Following 2005's "pothole blitz", the number of roads in need of repair has reduced from nearly 25% to 10%.

• Last year we pledged to deliver 12 congestion busting schemes across the county. We are on target for fulfilling this pledge and traffic in Essex is flowing better as a result.

• We have also focussed on reducing the number of people that are killed or seriously injured on our roads. Over the last year we have achieved a remarkable 22% reduction in this area.

• We will always fight on behalf of our citizens. The A12 has been a problematic road for some time, with journey time reliability and congestion at the heart of the concerns. Last year's A12 Inquiry into the current and future performance of the road made a series of recommendations on what pragmatic solutions there might be to the problems.

• The inquiry was a success and has subsequently attracted £120m worth of government funding for improvements.

• We are among the best performing top 25% of Councils nationally for the quality of our roads, levels of satisfaction are high, and continue to rise. However, we must not be complacent. Our citizens expect the best and we will endeavour to provide it.

Pledge: We will upgrade and refurbish local communities’ roads and footpaths with £10m of additional investment.

Priority 5: Promoting Sustainable Economic Growth

• We are now officially in a recession and many Essex companies have shifted their objectives from prosperity to survival. We know how difficult the conditions are for many people and are taking action to safeguard our citizens and businesses as much as it is possible for us to do so.

• The economy will recover however and we think that Essex, which in its nature is entrepreneurial and resilient , will emerge with renewed verve to capitalise on future opportunities.

• Meanwhile, we will continue to act in ways that support the local economy. We will promote tourism, which is already worth £2.5 billion to our local economy and is projected to increase in value as families choose to stay in the UK for their holidays. We will chase inward investment from across the globe, as multinational businesses look for a UK presence. The weak pound will help us with this. We will construct the foundations for regeneration to occur swiftly once the economy beings to once again grow.

• Last year we pledged to promote an Essex "Year of Culture" to increase tourism and inward investment. This has proven to be highly successful, with visitor numbers for the county’s attractions increasing significantly from the previous year. Essex is no longer the sleeping giant that it used to be - it is rapidly becoming recognised as one of the country’s most attractive places to visit.

• The public sector has a crucial role to play in helping local businesses by being a customer to them. In total, nearly £9billion of public money is spent by public sector organisations in the county and we are passionate about ensuring that as much of it as possible is used to bolster our economy.

Pledge: We will support Essex businesses through the downturn by thinking local, buying local.

· The County Council spends £860m per year on good and services, of which £220m is currently spent in Essex. We will always pursue the best value for money possible but will work this year to enable and encourage our local businesses to access more of this overall spend.

Priority 6: Delivering Value for Money

· The customer experience is at the heart of everything that we do. With a tightening fiscal climate and the significant financial pressures of an ageing population, it is fundamentally important that we spend taxpayers' money intelligently, prioritising investment in front line services and always seeking to spend less on servicing the bureaucracy.

· This Council will not cut services. Residents can always expect the same or better levels of service in the years to come. We will achieve this through our Essex Transformation programme, which will help us to rationalise our processes and release money from administration and back office functions.

· An output of Essex Transformation is a projected £200m worth of savings, which we will reinvest in enhancing our services and better serving our customers. To assist with this process we are seeking a potential partner to deliver this. The final decision on which, if any, partner to appoint will be taken at Full Council We will work smarter, spending money where it should be spent and delivering a leaner organisational model.

· Discovering these savings quickly is important - the £200m saving target equates to £30 per year per household that can be spent on front line services.

· Our new approach of continuous improvement and transformation will help us keep Council Tax low. We know that this is extremely important to our customers and we will work tirelessly to provide the best possible value for money.

· Last year we pledged to keep the Council Tax increase lower than inflation so that our citizens are better off. Given recent events, this is a particularly important and challenging goal.

· As I have already said, this year's 1.9% Council Tax increase is the lowest in this Council's history.

· Essex Transformation will enable us to significantly improve our organisation. Nevertheless, it should be recognised that County Councils are among the leanest and most efficient of public sector organisations. Even so, there is scope for improvement and our customer focussed ethos obligates us to make improvements as rapidly as possible.

Pledge: We will further reduce bureaucracy, freeing up £35m for investment in front-line services.

Our World

Priority 7: Reducing and Recycling Waste

• Essex County Council is recognised as exemplary in the field of waste management.

• This is a complex challenge - the costs are highly significant, the public considers management of waste to be very important and the environmental benefits of increasing recycling are acute.

• We have always been ambitious with our recycling targets. Last year we pledged to increase recycling to over 40%, which was extremely stretching. We are on course to exceed this pledge - a fantastic achievement.

• Recycling more is also an economically driven decision. Landfill tax escalation would cause waste disposal to become prohibitively expensive if a strategy was not devised to continually improve our approach.

• Partnership working is key for this priority. Our customers expect us to work seamlessly with the waste collection authorities in order to serve them best. In Essex, the partnership agenda is thriving.

Pledge: We will increase recycling of waste to over 45% in 2010 and to over 50% within the next 3 years, in partnership with the District and Borough Councils.

Priority 8: Protecting the Environment

· The volatility of the weather lately has illustrated the potentially devastating impact of climate change and highlighted the importance of protecting Essex's beautiful and diverse environmental treasures.

· Essex is particularly vulnerable to the impact of climate change, given its flatness and long coastline.

· Our customers tell us that they are very proud of the county’s outstanding natural beauty - safeguarding it for future generations is a key priority.

· To support the ecology of Essex, we pledged last year to plant 250,000 trees. This was an enormously stretching target but to date, we have exceeded it. Within the same budget we have managed to plant 303,665 trees; an outstanding achievement for which my congratulations go out to staff.

· This year we want to build on this fantastic work. Our customers are already proud of their home county but we want to exceed their expectations and work even harder to improve Essex’s environment.

· The county's appearance is crucial for inward investment, tourism and our citizens' enjoyment of the county. An attractive county offers a better quality of life.

Pledge: We will improve the appearance of Essex's coastal paths, gateways and verges.

Priority 9 : Making Communities Safer

• Essex is one of the safest places in England and has been steadily improving over the last 5 years.

• Our surveys consistently show that this issue is a top priority for our customers. We will continue to strive for improvements so that our customers are safe and have a perception that levels of crime are low.

• Partnership working is crucial for this agenda. Crime is influenced by many diverse factors, such as the quality of the street scene and visibility of police officers. Our progress in this area is testament to the success of our work with partners.

• Our multi-agency approach and focus on early intervention services have been applauded and attracted additional Government funding.

• Last year, we pledged to make Essex the safest place to live in England within 5 years. We are well on our way to achieving this pledge. To do so, requires a multifaceted approach and an ability to efficiently coordinate our activities. The delivery of the best quality of life in Britain relies on us creating the safest county and this will continue to be a focus for us over the coming year.

• One key component of this is to reduce youth offending. I have seen some fantastic examples of voluntary organisations doing work in this area. I can therefore announce that today we will be investing an additional £1m in reducing youth offending.

• This year's pledge flows from last year’s commitment. We want to assure our citizens of our ongoing progress and have therefore selected a highly visible, clearly measurable pledge that we can be held accountable for.

Pledge:We will deliver, with Essex Police and partners, ten local operations to reduce crime and antisocial behaviour in identified areas.

Conclusion:

• This is the best budget Essex County Council has ever produced.

• It outlines a coherent, focussed strategy based on residents' priorities.

• It puts the customer at the heart of our work.

• We are now in the midst of a recession and if we are to deliver the best quality of life in Britain, the status quo is not an option. We must transform and become an organisation that is able to deliver on our ambitions.

• I move the motion to accept the recommendations