Transcript Financial Outlook and Update on Parish Precepts

Financial Outlook and Update
on Parish Precepts
Parish Liaison meetings - November 2013
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Funding Outlook
• Core funding cuts of circa 15% per annum 2015/16 to 2017/18
• Equates to around a 30% RSG cut each year
• Looking at a £11m combined savings target
for both councils over the next 4 years
• New Homes Bonus - 35% top slice
(reduction) from 2015/16
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Key Issues
• Medium Term: Creating a clear plan to
achieve our priorities and deal with the
reduction in core funding
• Short-Term: Setting a Balanced Budget for
2014/15
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Medium Term
Two key components
• Priority Based Budgeting (PBB)
• A Medium Term Financial Strategy/Plan
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Priority Based Budgeting
• Review resources to assess how they
contribute to priorities (activity mapping)
• Identify opportunities for savings / income
generation through transformation
• Financial scenario modelling to develop
longer term budget
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Priority Based Budgeting
5 Stages
1. Confirm strategic vision/direction (done)
2. Establish current cost base and core/noncore services
3. Identify and quantify opportunities for
savings through transformation. Develop
Business Cases
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Priority Based Budgeting
4. Financial Scenario Modelling. Decision
packages - Prioritisation roundtable
workshops
5. Develop longer term budget - fully cost
decision packages
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Medium Term Financial
Strategy/Plan
• Reduce our dependence on core grant
• Maximising return on our investment
• Increasing our borrowing to invest to save
• Further grow income opportunities
• Only do those things where a clear
business case demonstrates it makes
sense
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What will this incorporate?
• Reforming our resource base to reflect
new incentivised and target Government
funding streams/pots e.g. NHB, TCA
• Reflecting….. Transformation programme
outcomes, New Homes Bonus, Invest to
Save projects, Business Rates growth,
Reserves and Council Tax strategy
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What will this incorporate?
• Outcomes from the PBB work
• 3-5 year rolling finance plans and budgets
• Radically reviewing financial planning and
management arrangements and roles
• Focusing capacity on income generation,
cost reduction and other added-value
activity around resource management
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Outcome
Within 5 years the Councils are sustainable
notwithstanding reduced core funding
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Potential Position - 2014/15
Combined Budget Gap:
• July forecast £3.6m
• Review of cost pressures and potential
savings of £1.9m
• Remaining gap £1.7m
How can this be found?
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Potential Position - 2014/15
• Income generation opportunities - including
growth agenda (more homes, Council Taxbase
and business rates growth)
• Short-term Invest to Save projects to release
efficiency savings
• Cost/savings sharing between the two councils
• Council Housing cost recharges review
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Potential Position - 2014/15
• Managing cost pressures
• Contracts and non-pay costs review
• Temporary use of NHB – to fund staff time
spent on strategic projects
• Capital investment plans 2014/15 onwards
– asset utilisation and borrowing
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Update on Parish Precepts
• LCTR scheme and funding workshops
• Opportunity to increase understanding,
discuss and share issues and concerns
• Affect on Town & Parish Council precepts
and taxpayers:
- Short-term
- Medium-term
NB: Two thirds increased precept
and Council Tax in 2013/14
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Update on Parish Precepts
• Council Tax reductions and funding now
shared between all tiers of LG
• BDC, MSDC, other councils – capping,
budget cuts and income generation options
• Now applies to Towns & Parishes
• Taxbase drives Council Tax and precept
levels. Growth = increase
• Options and Impacts explored
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Update on Parish Precepts
• ‘Capping’ – limits precepts. Cost of a
referendum?
• Will only apply to bigger parishes?
• What will the basis be?
• Size of Council/Precept? Council Tax Level?
• When will an announcement be made –
Autumn Statement (5 Dec)? Later?
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Update on Parish Precepts
• SALC views/analysis:
- Administration Subsidy (confusion?)
- Capping ignores local context and
‘localism’ agenda
- 34% of local councils precept less than
£5,000
- 47% of local councils have a Band D
Council Tax of < £30
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Update on Parish Precepts
• Ongoing communication and information
needs e.g. Taxbase
• Offer of 1:1’s - if necessary
• Continue to work together with you and
SALC
• Anything else we can do to help?
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