Transcript Corporate Template (White Background)

BACKGROUND
• Comprehensive Spending Review 2010 marked the
beginning of the grant reduction programme
• Local government anticipating a 28% cut in grant over the
period
• HCC reduction is 43% over period (around £80M)
• Further cut of £27M in 2015/16
• Inflationary pressures of around £14M per annum
• Social care demography and complexity pressures of
£11.5M per annum
• Total savings requirement of £200M from 2011/12 to
2015/16
• Net budget is around £750M
HCC RESPONSE
• Aim to deliver 4 years savings in 2 - £55M in 2011/12 and
£45M in 2012/13
• Based on original grant projections, this plus 1.9% council
tax increase pa would have balanced the budget by
2014/15
• Scale of grant reductions was greater than expected
• Council Tax Freeze Grant meant no base council tax
income being generated each year
• No savings target in 2014/15 to give time and capacity to
deliver further £93M by 2015/16 financial year
• Early delivery of savings in 2014/15 will provide funding for
future transformation and change
BUSINESS RATE RETENTION
• 2013/14 estimate of £451M to be collected across
Hampshire (excluding unitaries)
• 9% retained by HCC (£41M), £180M by districts
• £225M goes back to Government
• HCC receives £63M top up grant
• Estimates for next year up to £465M BUT
• Impact of accruing for potential appeals in current year
producing significant deficits
• Many authorities at the safety net threshold (i.e. loss of
more than 7.5% of income)
BUDGET 2014/15 – FINANCIAL SUMMARY
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£17.8M loss of Government grant
£12.4M inflation and base changes
£11.5M of social care growth
£6.3M of savings from Children’s for Early Intervention
Grant loss and £3M of slipped savings from Adults
• No increase in Council Tax
• Nothing assumed for New Homes Bonus but Government
have now confirmed that we will keep this
• Net Deficit of £32.2M for the year - will be met by increased
investment income and £25M draw from Grant Equalisation
Reserve
UPDATE FOLLOWING SETTLEMENT
• New Homes Bonus being retained in current form (funding
for LEPs now through additional borrowing)
• Council Tax Freeze Funding ‘in baselines’ from 2016/17 £28.4M for HCC
• Revenue support grant lower by £1.4M following further 1%
cut to Departmental Expenditure Limits
• Council tax surplus offset by business rates losses and
RSG reduction
• Still need £25M draw from reserves to balance the budget
TRANSFORMING THE COUNCIL TO 2015
• Programme based around corporate workstreams as in
previous years. Key areas :
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External spend
Working with Health (Better Care Fund and Public Health integration)
Integrated Business Centre
Senior management and staff overheads
IT Spend
• Target of £93.2M to be in place by April
CAPITAL PROGRAMME
2013/14
2014/15
2015/16
£’000
£’000
£’000
Adult Services
11,681
6,081
14,481
Children’s Services
89,968
89,357
73,497
Environment
49,656
41,807
38,000
Policy and Resources
56,290
39,560
30,310
746
746
746
208,341
177,551
157,034
Land and Site Purchase
Total
Total Programme 542,926
CAPITAL INVESTMENT – CONFIDENTIAL
UNTIL 29TH JANUARY
• Broadband investment to deliver 95% coverage of super fast
broadband - £13M HCC investment
• Replacement for project resilience - £12M per annum using new
homes bonus funding
• £12M investment in Country Parks
• Setting money aside for infrastructure investment to unlock key
development sites
• Grants for ‘Investing in Hampshire’ – Tourism and Heritage
• School places continues to be a pressure - £30M extra from
Government over next 2 years, £165M already being spent on
providing 9,000 new school places across Hampshire
• £45M extra care housing programme
• Reviewing impact of flooding and potential remedies