Today MOSL published its proposed Business Plan for 2020/21 in which it sets out its key priorities for the year ahead.
This plan has been developed following the most robust business planning process we have undertaken to date, including a comprehensive consultation exercise with our members and other key stakeholders.
We are encouraged by the broad support offered by our members and stakeholders through the consultation for the priorities and commitments outlined in the plan, and we welcome the constructive challenge provided ahead of today’s publication.
As a result of the consultation feedback, as well as our ongoing business planning activity, we have reached a number of key conclusions that have been reflected in the updated plan we are presenting to members for voting.
Key changes to the 2020/21 Business Plan can be summarised as follows:
Proposed total budget: Following a strong challenge from our members, we have reduced our proposed total budget for 2020/21 from £11.5 to £11.2m, which now reflects a £0.5m (4.7%) increase on 2019/20. This recognises the cost pressures being faced by trading parties and the need to limit any increase in direct costs as far as possible. By identifying further efficiencies, we have been able to reduce the overall budget driven by a reduction in the salaries associated with some new positions, a reduction in planned headcount and savings resulting from the rephasing of recruitment. We have also reduced our assumed CMOS maintenance costs based on our current view of the contract negotiations with CGI and the scope of the new contract which will take effect on 1 April 2020.
Revised approach to market auditing: Following broad support for the revised approach to the market audit, we have decided to progress with a more risk-based, targeted market audit in 2020/21, but with an additional £50k allocated to the budget to respond to the challenge from a number of trading parties that it had been reduced too far. Conscious of the wider cost pressures on our plans, we assess this to be a proportionate level of budget that will enable both a robust and value for money approach.
Bilateral transactions project: We received strong support for the principle and importance of the bilateral transactions project which was accompanied by a strong challenge from a number of our members that the business case needs to be clearer before solution costs should be committed to. Since publication of the 2020/21 plan for consultation, additional project work – as well as engagement with the project steering group – has confirmed the need for additional data to be captured in order to ensure that the cost benefit analysis is fully comprehensive and robust. Consequently, we have taken the decision not to include the solution costs within the budget for 2020/21. Our 2020/21 budget includes project costs of £600k, which cover project management and all other activities required to deliver 2020/21 project activities outside of the solution delivery.
Our consultation response document summaries the responses we received through the consultation and how we have reflected the feedback in our 2020/21 Business Plan.
Members will have the opportunity to attend a General Meeting at 10.30am on Friday 31 January 2020 to vote on whether or not to accept the business plan. Formal notice of the meeting has been sent to members, a copy of which can be found on page 31 of the business plan document. We will communicate the final decision with members following the General Meeting on 31 January.
We would like to thank all our members and stakeholders for their comprehensive responses and would encourage them to continue to engage with us in support of the 2020/21 Business Plan, and as we continue to work more collaboratively towards our collective goal of making it easier to do business in the non-household market for the ultimate benefit of customers.
