Cost Focused Financial Case
Cost Focused Financial Case
[This section demonstrates that the project is affordable and will repay the upfront investment through cashable savings and/or additional income within the council’s payback threshold. This section must identify the budget lines that reduce (or income lines that increase), name the benefit owners, and set out the repayment profile.]
- Chief Financial Officer (Section 151 Officer) statement
[For a Full Business Case, this section should include a formal statement from the CFO (or designated deputy) confirming that the project’s costs are robust, the proposed cashable savings are achievable, the benefit owners are confirmed, and the repayment plan is considered viable and has been agreed in principle.]
2. Summary financial impact
[This table demonstrates the one off reserve drawdown and the ongoing revenue impact.
| Financial Element (£000s) | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Total |
| One-off Capital Costs [e.g. Hardware (iPads, VR headsets, touch screens), initial software development if capitalised.] | ||||||
| One-off Revenue Costs [e.g. Procurement support, supplier set-up fees, initial content/design work, staff training, project launch communications.] | ||||||
| Ongoing Annual Revenue Costs [e.g. Software licences, support and maintenance, internal staff time for project/platform management, paid social media/marketing budget.] | ||||||
| Total Project Costs | ||||||
| Cashable Savings / Income [e.g. Reduced printing/postage, reduced officer time on manual data entry (quantified), income from selling service to partners.] | ||||||
| Net Financial Impact (per year) | ||||||
| Cumulative Net Impact |
Payback period
[Depending on the terms of the drawdown you may not need to repay the investment from the reserve]
3. Detailed cost breakdown
[Provide the detailed work that underpins the summary table. This is where you demonstrate the robustness of your estimates. A common lesson from past projects is that initial supplier quotes often do not represent the full project cost.
- Supplier costs: Detail the costs for software, implementation, training, and any specialist consultancy. Be explicit about what is included (and excluded) and whether VAT is applicable.
- Internal staffing costs: This is a critical and often underestimated cost. Estimate the number of days/hours required from different roles (e.g. Project Manager, Planning Officers, Comms Officers, IT staff) and apply a standard daily rate. Past projects show that officer time is a significant ‘hidden’ cost that must be factored in.
- Marketing and communications costs: Do not assume engagement is free. Several councils found that a dedicated budget for paid social media promotion was vital to reaching target audiences. Include costs for advertising, flyers, video production etc.
- Contingency: For innovative projects using new technology, a contingency of 15-20% is advisable to cover unforeseen technical challenges or scope adjustments – a common experience in the pilot projects.
- Key assumptions: List the key financial assumptions made (e.g. ‘Supplier licence costs are assumed to increase by X% annually’, ‘Staff costs are based on a blended day rate of £Y’). This demonstrates transparency and helps stakeholders understand the basis of your financial model.
4. Detailed benefits and repayment plan
[This is a critical section for an Invest to Save bid. You must prove where the money will come from. For each cashable benefit, you must provide the detail below.]
| Benefit Description | Annual Value (£) | Calculation & Evidence | Benefit Owner (Name & Title) | Repayment Contribution |
| Example 1: Staff Saving | £15,000 | Reduction of 0.5 FTE Admin Post (Grade X) upon planned retirement in 6 months. | John Smith, Head of Planning | £15,000 |
| Example 2: Supplies Saving | £8,000 | Elimination of printing and postage budget for Local Plan consultations. | John Smith, Head of Planning | £8,000 |
| Example 3: New Income | £5,000 | Selling access to the platform for consultations to 2x local Town/Parish Councils at £2,500 p.a. each. | Jane Doe, SRO | £5,000 |
| Total Annual Saving/Income | £28,000 | £28,000 |