Transcript Delivering a Combined Business Transformation and

Poole Council
MEETING WITH REPRESENTATIVES OF RESIDENTS’
ASSOCIATIONS
AND COMMERCE & INDUSTRY
Budget & Council Tax Setting
2014/15
Cllr Elaine Atkinson
Leader of the Council
Agenda
• Background – A new budget process
• Background – Peer Review
• National Context – Why Austerity Needed
• National Context – 2015 Spending Review
• Local Context – Where the money comes from
• Local Context – Impact of Austerity on Poole
• Local Context – Where the money goes
• MTFP 2014 to 2018 (Part 1)
• MTFP 2014 to 2018 (Part 2)
• Next Steps
Background - New Budget Process
• Budget process changed for 2014/15 onwards
to reflect;


No Overall Control
Overview & Scrutiny of MTFP not adding enough
value
• Changes


Cross Party Budget Steering Group established
Efficiency & Effectiveness O&SC responsible for overall
scrutiny of the budget
• Other Overview & Scrutiny Committees

Consider significant changes in policy or service levels
(E&E OSC considered Business Case to deliver revenue &
benefit services in partnership with 3 other authorities)
Background - LGA Peer Review


Bill Roots previous CX & Director Finance at Westminster
City Council undertook Financial health check, conclusions;
Poole has managed to avoid full impact squeeze so far
• Careful financial planning, effective management, prudent resource
assumptions, use reserves.

Options are running out
• Decisions will become more contentious

Financial gap is enormous particularly authority Poole’s size

We need to develop outline options to bridge gap

Suggests Budget Steering Group takes more responsibility
• “Star Chamber“ clearing house for difficult decisions that lay ahead

Emphasised that Council can by local decision (to a limited
extent) change its resource base associated with Council
Tax, the chances of changing the national grant allocation
is remote in the extreme
National Context – Why Austerity Needed
National Debt at the end of 2012 = £1,390,000,000,000
National Context – Spending Review 2015
Local Context – Where the money comes from
Local Context – Impact of Austerity on Poole
55% Cumulative annual reduction in core Government funding since 2010
Local Context – Impact of Austerity on Poole - Savings made by the Council since
2010/11
Growth Pressures
Adult Social Care - Growth
Core Government funding reductions
Inflation, pay price and other growth pressures
Pay, Pensions & Incremental Drift (pay frozen 10 to 13)
Specific Government Grant funding reductions
Waste disposal (Including £8 per tonne landfill tax)
Children’s Social Care Growth
Total Pressures
Additional Resources, Savings & Efficiencies
General
Adult Social Care
Changes to services funded by specific grants
Efficiency Review Programme
Council Tax (including Freeze Grants)
Other (New Homes Bonus, Ctax Reforms, Business Rates)
Localisation of Council Tax Benefit
Total additional resources & savings
10/11
11/12
12/13
13/14
Total
£m
£m
£m
£m
£m
1.9
(0.4)
2.5
1.3
3.2
5.1
2.6
1.2
4.0
0.7
0.5
17.3
4.2
2.5
1.1
1.0
(0.2)
0.3
2.8
2.3
2.7
1.5
0.8
0.5
0.3
10.9
12.1
9.5
8.9
5.0
4.6
2.1
1.3
43.5
(3.4)
(1.1)
0.2
(2.0)
(1.8)
(0.8)
(6.5)
(1.8)
(2.0)
(1.0)
(5.8)
(1.9)
(5.5)
(1.7)
(1.8)
(0.6)
(6.4)
(17.3)
(8.9)
(17.9)
(6.0)
(5.3)
(4.9)
(4.5)
(4.2)
(0.7)
(43.5)
0.6
0.5
6.4
(2.2)
(1.2)
8.9
(1.2)
1.1
(1.8)
(0.7)
(10.9)
Local Context – Where the money goes
Majority of resources spent on minority residents (vulnerable Adults & Children)
Capital financing , 2.1%
Corporate services , 2.6%
Children's and Education
Services , 8.7%
Central Services , 3.0%
Public Health , 4.0%
Housing Services , 3.0%
Children's Social Care ,
8.7%
Highways and
Transportation Services ,
9.0%
Planning and Development
Services , 2.6%
Environmental Services ,
11.9%
Adult Social Care , 37.7%
Cultural and Related
Services , 6.6%
Medium Term Financial Plan 2014 to 2018 (part 1)
Growth Pressures
Core Government funding
Adult Social Care - Growth
Pay award
Inflation and other growth pressures
Incremental Drift
Waste Disposal Costs
(£8 per tonne landfill tax 2014/15 plus inflation)
14/15
15/16
16/17
17/18
Total
£m
£m
£m
£m
£m
4.2
1.4
0.6
1.1
0.8
5.4
1.7
0.6
0.7
0.6
3.3
1.7
1.5
0.4
0.2
2.5
1.5
1.6
0.1
0.1
15.4
6.3
4.3
2.3
1.7
0.6
0.1
0.2
0.2
1.1
National Insurance
1.0
(current rebate withdrawn Single State Pension)
Children’s Services
(investment /SEN Transport / Early Years Help review)
Other Government Grants Reductions
(Local Housing Provision / Housing Benefits Administration)
Children’s Social Care Growth
(previous year funded reserves)
2013/14 Budget (reserves completed)
Car Parking Income rebase
Total Additional Annual Pressures
Cumulative Pressures
0.8
0.1
0.4
0.2
1.0
0.9
0.1
0.7
0.2
0.2
0.3
0.3
10.4
10.4
9.4
19.8
8.7
28.5
6.0
34.5
0.3
0.3
34.5
Medium Term Financial Plan 2014 to 2018 (Part 2)
14/15
15/16
16/17
17/18
Total
£m
£m
£m
£m
£m
General Savings and Efficiency Proposals
(2.9)
(1.5)
(0.7)
(0.6)
(5.7)
Adult Social Care Savings & Efficiencies
Council Tax – Tax Base Increase
(2.7)
(0.2)
(0.2)
(3.1)
(0.4)
(0.6)
(2.6)
(1.3)
(1.3)
(2.6)
(0.4)
(0.6)
(1.7)
Extra Resources, Savings & Efficiencies
(new properties, expenditure LCTSS, collection levels)
(1.6)
Council Tax Increases (2015/16 + 2016/17)
New Homes Bonus (New properties)
(0.5)
(0.2)
Council Tax Freeze Grants
(0.7)
(0.7)
(2014/15 + 2015/16)
Adult Social Care & Children’s Services
(Budget Rebase)
(1.6)
Local Council Tax Support Scheme
(assumed increase in resources)
Application of reserves
(Local Council Tax Benefit Scheme)
(1.4)
(0.4)
(1.6)
(0.4)
(0.4)
0.4
0.1
Additional Annual Resources & Savings (10.4)
(2.6)
(2.8)
(3.3)
Cumulative additional Resources & Savings (10.4)
Cumulative MTFP – Net Resource Gap
0
(13.0)
6.8
(15.8)
12.7
(19.1)
15.4
(19.1)
Next Steps


Continue Cross Party Budget Steering Group (Star
Chamber) through January/February and beyond with
particular emphasis on developing plans for 2015
onwards..
Relentless pursuit of Value For Money (VFM)
•


Even greater levels of efficiency & productivity
Bring forward detailed proposals on financial and non
financial implications of a number of options that the
Cross Party Budget Steering Group requested be
further explored.
Prioritised support towards economic growth and job
creation
Aim remains to improve quality of life whilst
protecting the most vulnerable
Questions…?
Elaine Atkinson e-mail: [email protected]