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Value for Money delivery agreement


    Vision

  1. The CPS's ambitious CSR07 Value for Money (VfM) programme will achieve net cash-releasing VfM savings of £69 million by the end of the 2010-11 financial year. This ambition builds on the success of the SR04 Efficiency Programme and is designed to make the best use of the resources available to deliver a high quality prosecution service to the public that will support delivery of the Government's new PSA targets.
  2. The CPS is continuing to improve the way prosecution services are delivered in the light of the long term challenges facing the Criminal Justice System (CJS) by:
    • working effectively and efficiently to bring offences to justice;
    • championing justice and the rights of victims and witnesses;
    • inspiring confidence in the communities we serve;
    • working in partnerships to serve the public;
    • improving ourselves to improve the service we give.
  3. The CPS VfM programme is an important element in ensuring that resources will be directed to deliver departmental and Government priorities, focusing resources on priority activity and ensuring that the CPS continues to deliver improving services to the public.
  4. By the end of the 2010-11 financial year the CPS will achieve VfM resource savings of £66 million (see note 1) by improving the efficiency and effectiveness of the prosecution process, expanding the CPS Advocacy Strategy Programme, obtaining better value through procurement and supplier management strategies and reforming the department's corporate services functions and optimising use of departmental assets. The target represents year on year savings of 3.5% in real terms.
  5. Value for money savings are calculated from a counterfactual baseline that provides an evidence-based view of cost pressures in the absence of any VfM reform. The department has reviewed all major areas of expenditure and examined inflationary pressures associated with each. In particular the CPS has analysed in detail the cost drivers for IT related costs provided through a PFI arrangement with LogicaCMG, the upward pressure on the costs of advocacy in the Crown Court arising from the increase in the number of the most complex and costly cases and the estimated impact of pay inflation over the CSR07 period. The counterfactual forecasts incorporate, amongst other changes, pay and price inflation pressures; the overall inflationary pressure is estimated at 2.7% pa.
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    CPS resource VfM savings against the counter factual

    Graph showing CPS resource VfM savings against the counter factual

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    CSR07 VfM Programme

    CPS Resource DEL 2007-08
    £M
    2008-09
    £M
    2009-10
    £M
    2010-11
    £M
    Counterfactual 632 672 688 706
    Post VFM profile   647 642 640
    VFM savings   25 46 66
    CPS Capital DEL 2007-08
    £M
    2008-09
    £M
    2009-10
    £M
    2010-11
    £M
    Counterfactual 7 7 7 8
    Post VFM profile   5 5 5
    VFM savings   2 2 3

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    Delivery strategy

  7. Each major workstrand has a formal programme and associated governance in place. The overall approach for full implementation and delivery of the two main CSR07 programmes for achieving cross-CJS efficiency, Criminal Justice Simple, Speedy, Summary (CJSSS) and the CPS Optimum Business Model (OBM) for the prosecution process will be developed when the results of the on-going pilots have been fully evaluated. For the former there are significant inter-dependencies on the progress of implementation in the other CJS agencies but the department will ensure that each CPS Area has the capability to deliver the efficiency savings that will be available from a reduction in the number of court hearings.
  8. The initial plans for implementing OBM are for each of the 15 Area Groups to have one site using the standardised case administration model by March 2008. OBM provides a framework for ensuring that every case is handled as efficiently as possible and incorporates business process re-engineering, quality management and a rebalancing of the use of available resources. The OBM Programme is examining options for deployment from April 2008 onwards. This Delivery Agreement will be updated when the deployment plans have been agreed.
  9. The Advocacy Strategy Programme has plans in place to deliver a step change in 2008-09 in the proportion of Crown Court cases that are covered by an in-house advocate. The CPS plans to achieve 20% by value of all Graduated Fee Scheme (GFS) cases compared to 10% in 2006-07. The CPS has implemented a new Prosecutor Structure from 1 April 2007 that will incentivise all CPS lawyers to develop advocacy skills and for many to develop to become Senior Crown Advocates and handle contested trials in the Crown Court. The CPS continues to liaise closely with the appropriate professional bodies, including the Bar, the Law Society and the Judiciary in developing future plans for increasing and improving the deployment of Higher Court Advocates (HCA) in the Crown Court and Designated Caseworkers (DCW) in the magistrates' courts.
  10. Like all departments the CPS will achieve a 5% year on year reduction in administration costs, in real terms, over the CSR period. To meet this ambitious target, the structures and the responsibilities of CPS Headquarters and administrative support services will be rigorously reviewed to ensure that resources are focused on higher-value activity, supporting the Government's desire to continue improving public services. The structure of CPS HQ will change following the 2007 HQ review and the efficiency and effectiveness of all delivery chains will be examined to ensure they are optimised. A programme is now underway to explore further the opportunities for sharing services with the other Law Officers' Departments and with the public sector more widely.
  11. CPS's capital investment is managed by the Finance Committee and the Capital Management Group (CMG). All proposals for additional investment are supported by a full business case which is considered against competing priorities. The Finance Committee and the CMG have the responsibility for ensuring that business needs are met and the planned savings delivered.
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    Measurement

  13. The following tables show the main VfM initiatives for the department and the contribution each workstream will make to the CSR07 VfM target.
  14. Review and case preparation Near cash resource 2007-08
    £M
    2008-09
    £M
    2009-10
    £M
    2010-11
    £M
    Counterfactual 425 460 470 482
    Post VFM profile   445 443 441
    VFM savings   15 27 41
  15. Review and case preparation represents the largest proportion of CPS costs and includes the salary and associated costs of frontline staff in the department as well as overhead costs such as accommodation and information technology. The counterfactual cost pressures, outlined above, are based on pay and price inflation.
  16. The CPS is currently reviewing the departmental pay and workforce strategy which is designed to introduce new structures and greater flexibility so that prosecutors and other frontline staff can respond to the challenges from charging, advocacy, the Serious and Organised Crime Agency (SOCA) and asset recovery and from the new enhanced roles for frontline staff. The recently implemented new Prosecutor structure provides the department with the right framework to maximise savings from HCA deployment. The CPS CSR07 Pay and Workforce Strategy will be agreed by January 2008. The HR Director is the Senior Responsible Owner (SRO) for the Pay and Workforce Strategy and delivery will be overseen by the CPS Board.
  17. Improvements in the processes employed by the courts will be matched by more efficient and effective working in the CPS. There is potential to realise significant savings for the department and work is underway to analyse and model the emerging findings of the CJSSS in depth review. Savings from a reduction in hearings in the magistrates' courts and the Crown Court through CJSSS will be complemented by process efficiencies in the CPS that will be delivered by the rollout of the CPS Optimum Business Model, which will provide a standardised model for the administration of cases in the magistrates' courts and the Crown Court. The first phase of this will see OBM implemented in one site in each of the CPS 15 Area Groups by 31st March 2008. The CPS Chief Operating Officer is responsible for delivery of business change and progress will be reported through the quarterly performance reports to the CPS Board.
  18. The CPS will continue to maximise the opportunities for delivering efficiency benefits from the substantial investment in IT, including closer linkages with CJS partners and through the electronic preparation and presentation of evidence. The CPS case management system and IT infrastructure is an effective national system provided through an established and successful PFI partnership, for managing operational workflow and providing management information to support improvements in performance in both efficiency and effectiveness. The system will continue to be developed to meet future business needs and support the implementation of CJSSS and OBM. Maximising opportunities from IT for closer linkages with the courts and the police will improve the timeliness and accuracy in the exchange of electronic data and deliver efficiency savings across the CJS through reduction in the duplication of data entry. There is an existing formal governance framework in place reporting to the CPS Benefit Realisation Lead as SRO. Quarterly progress reports are agreed with the Finance Director.
  19. All productive time efficiency savings will be measured through the examination of the impact on workflow and resources using the CPS Activity Based Costing System which re-evaluates business processes each year. The target for cash-releasing productive time VfM savings is £41 million pa by 2010-11. [in accordance with table above]
  20. Advocacy Near cash resource 2007-08
    £M
    2008-09
    £M
    2009-10
    £M
    2010-11
    £M
    Counterfactual 143 147 151 155
    Post VFM profile   138 137 139
    VFM savings   8 14 16
  21. The CPS plans to accelerate the Advocacy Strategy Programme and will continue to increase development of in-house trial advocates to handle both contested and non-contested cases in magistrates' courts and Crown Courts. The extension of in-house advocacy will deliver cost savings to the department through a reduction in fees paid to external counsel. By 2008-09 20% by value of all graduated fee scheme cases will be presented by a CPS Higher Court Advocate. Further savings will be delivered through the effective management of the most serious and complex cases by Case Management Panels. The CPS Chief Operating Officer is responsible for the delivery of benefits from the Advocacy Strategy Programme and progress is reported each quarter to the CPS Board. The target for VfM savings is £16 million pa by 2010-11and the savings are measured by comparing the costs of external counsel against those of in-house advocates.
  22. Corporate services Near cash resource 2007-08
    £M
    2008-09
    £M
    2009-10
    £M
    2010-11
    £M
    Counterfactual 58 60 61 63
    Post VFM profile   58 56 54
    VFM savings   2 5 9
  23. The CPS has already made good progress in reducing the costs of administering the department and will continue the programme of consolidation and modernisation of administrative services throughout CSR07. The department has initiated a review of Headquarters structures and responsibilities to ensure that the right structure is in place to provide the appropriate capability and capacity to deliver the CPS reform programme. Once the recommendation of the review have been agreed by the CPS Board implementation will commence from April 2008. Delivery of benefits will be measured through reductions in cost of providing corporate services. The Finance Director is the SRO for delivery of benefits and progress will be reported to the CPS Board.
  24. Investment strategy Near cash resource 2007-08
    £M
    2008-09
    £M
    2009-10
    £M
    2010-11
    £M
    Counterfactual 7 7 7 8
    Post VFM profile   5 5 5
    VFM savings   2 2 3
  25. The CPS has reviewed its stock of assets and replacement strategy and will deliver efficiency savings through maximising the useful economic life of fixed assets, which for the most part are office equipment and fixtures and fittings. By deferring replacement the CPS can reduce its annual capital expenditure by £3 million pa. Strategic capital investment decisions are considered by the CPS Finance Committee, operational level decisions are delegated to the Capital Management Group (CMG). The Finance Director is the SRO for delivery of benefits and progress will be reported to the CPS Board.
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    Risk management strategies

  27. As an integral part of core business a careful assessment has been made of the risks the programme may face. A full mitigation strategy has been developed which will be reviewed on an on-going basis throughout the period.
  28. The key risks identified for the workstrands described above are:
    • pay and workforce: it is a complex challenge to deliver an effective pay and workforce strategy that enhances the role of prosecutors and administrators in the CPS and delivers the necessary efficiency and effectiveness benefits;
    • IT enabled efficiency savings, which depend on the CPS, the police and the courts working effectively to join up case related IT systems;
    • maximising opportunities for efficiency savings is dependent in part on reducing court capacity which is needed so that the CPS can manage the same caseload with fewer resources; delivery of a reduction in court capacity has consequences for the delivery of justice and carries associated challenges; and
    • reluctance from others in the criminal justice system to extending the use of HCAs and DCWs.

    CPS has undertaken a thorough risk analysis of all the risks that could impact upon the delivery of their vfm savings and developed a robust mitigation strategy to ensure that all risks are properly managed. The risks are being addressed through active engagement with CPS staff and their representatives so that the context and the challenge is understood and through closer working relationships with the CPS's criminal justice system partners and other stakeholders, in and outside government, which will build on and develop the existing arrangements with the police, the courts and other criminal practitioners.

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    Notes

    1. A further £3 million will come from capital savings
    2. Back to text

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Finance Directorate
December 2007

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