Oxfordshire County Council has launched an authority-wide strategy to “get the organisation thinking more commercially” – which could lead to “bigger opportunities” in the future.
An overview of the commercial strategy presented to Oxfordshire’s cabinet earlier this year, written by Lorna Baxter, executive director of resources & section 151 officer, states that the council “aims to optimise organisational efficiency and generate sustainable revenue through innovative and responsible commercial activities”.
A scrutiny committee discussed the commercial strategy on Friday (19 April), with the meeting reported on by the BBC, in which it was noted that members raised “concerns around the council’s need to get the right balance between commercial endeavours and serving residents”.
Speaking to Room151, Baxter clarified that the strategy is “initially aimed” at getting the entire organisation to think more commercially.
That could mean getting the most from contracts, or ensuring managers understand their costs and question what they spend, she said.
In the medium term, Baxter said the strategy was “about looking at whether there are any services we can provide and or trade where we currently buy-in, such as minor works”. And even further ahead, “in the longer term it could be bigger opportunities”, she added.
These opportunities have yet to be defined in detail as Baxter stated the council “wanted to get moving” with the strategy now. It was agreed by cabinet as a “first step”, and following the scrutiny committee meeting, the strategy’s progress will be monitored and reviewed over time, with concerns around training, funding and risk management considered.
Oxfordshire’s new commercial strategy comes as many councils are facing a difficult financial landscape, with there being a need to make savings, create efficiencies and generate new revenues wherever possible.
Oxfordshire itself must reduce a deficit of £13.9m from 2025/26, and the commercial strategy will help achieve this by identifying opportunities for further efficiency and income generation.
In the report to cabinet, Baxter wrote that the commercial strategy “sets out the vision to leverage Oxfordshire’s unique assets and strengths to optimise organisational efficiency, generate sustainable revenue, support the development of a more inclusive local economy and enhance public services through innovative and responsible commercial activities”.
A commercial transformation programme has been established to support the delivery of the commercial strategy in 2024/25. “A discovery phase is currently underway to look at the current maturity level of the council’s commercial thinking, information, skills and processes, from which an implementation plan can be designed and programme to deliver new commercial ways of working,” Baxter added in the report.
The report also notes that, given the inherent risk of failure with any commercial venture, “good governance and effective risk management are essential to achieving successful outcomes from commercial opportunities and minimising any impact on general balances”.
The commercial strategy will “apply to all revenue and capital expenditure, acquired, or disposed of by [the council] from commercial or non-commercial providers”. The report outlines the commercial priorities of delivering the plan under the banners of ‘strategic alignment’, ‘sustainability’, ‘innovation’ and ‘community focus’.
Within these, possible areas of focus include investing in renewable energy and low-carbon infrastructure, supporting and partnering with local start-ups and tech companies, embracing digital technologies, piloting new commercial models and ventures, and investing in community-based projects and initiatives.
Lorna Baxter will be speaking as part of a finance panel at Room151’s Monthly Online Treasury Briefing on Friday (26 April). The panel will look at “bright ideas to save local government”, including whether urban wealth funds can play a role. To register to attend the online briefing, click here.
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