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Poole Council

Feb 25, 2016

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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 - PowerPoint PPT Presentation

Delivering a Combined Business Transformation and Efficiency Review Programme

Poole CouncilCllr Elaine AtkinsonLeader of the Council

Budget & Council Tax Setting 2014/15MEETING WITH REPRESENTATIVES OF RESIDENTS ASSOCIATIONSAND COMMERCE & INDUSTRY

AgendaBackground A new budget processBackground Peer Review

National Context Why Austerity NeededNational Context 2015 Spending Review

Local Context Where the money comes fromLocal Context Impact of Austerity on PooleLocal Context Where the money goes

MTFP 2014 to 2018 (Part 1)MTFP 2014 to 2018 (Part 2)

Next Steps

Background - New Budget ProcessBudget process changed for 2014/15 onwards to reflect;No Overall Control

Overview & Scrutiny of MTFP not adding enough value

ChangesCross Party Budget Steering Group established

Efficiency & Effectiveness O&SC responsible for overall scrutiny of the budget

Other Overview & Scrutiny CommitteesConsider significant changes in policy or service levels (E&E OSC considered Business Case to deliver revenue & benefit services in partnership with 3 other authorities)

Notes23 April - Council agreed to establish X Party budget steering group tasked with shaping the MTFP & developing the underlying savings and efficiency strategy to deliver balanced budgets not just in 2014/15 but also in the medium to long term

18 June Council agreed to revise the Budget & Policy Framework procedure rules so that overall budget scrutiny takes place at E&EOSC3Background - LGA Peer ReviewBill Roots previous CX & Director Finance at Westminster City Council undertook Financial health check, conclusions;

Poole has managed to avoid full impact squeeze so farCareful financial planning, effective management, prudent resource assumptions, use reserves.

Options are running outDecisions will become more contentious

Financial gap is enormous particularly authority Pooles size

We need to develop outline options to bridge gap

Suggests Budget Steering Group takes more responsibilityStar 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 extremeNational Context Why Austerity Needed

National Debt at the end of 2012 = 1,390,000,000,000Why is Austerity Needed Level of National Debt

Growth outlook recently positive - Forecast consistent those assumed Chancellor 2013 budget proposal therefore are only confirming levels cuts which have been set out over the life of the current Parliament.

5National Context Spending Review 2015

June 2013 Chancellor announced Government spend plans will be 745bn in 2015/16 - 11.5bn less than the 2014/15 total (756.5bn)

Government Continue to protect - NHS Schools International Development Defence EquipmentCuts fall disproportionately rest - Unfortunately this means Local Government is not protected & has a disproportional share of the cuts - As a nation we are therefore no protection towards support to some of the most vulnerable in our society be that Looked After Child or homecare support to the elderly

Needs also to be seen in the context of not just one year (2015/16) But also in the context of the largest public spending reductions since 1920s (c25% real term cut 2011/12 to 2014/15)

Nationally Councils tried to protect Social Care & Street Services therefore impact felt services such as Housing Cultural Services - Planning Economic Development Central Back Office Services

TONY TRAVERS (Local Government Economist) 6Local Context Where the money comes from

7Local Context Impact of Austerity on Poole 55% Cumulative annual reduction in core Government funding since 2010

Last 4 years Council managed 35m deficit - Grant reductions - demand in Adult Social Care Housing - reduced income Planning & Parking

Consequences - 12% workforce - Social Care Eligibility Moderate to Substantial/Critical - Reduced levels of service (library opening hours) - New or increased charges (green waste) - Externalisation certain services - Facilities Closure (Fourways)810/1111/1212/1313/14TotalmmmmmGrowth PressuresAdult Social Care - Growth 1.93.24.22.812.1Core Government funding reductions(0.4)5.12.52.39.5Inflation, pay price and other growth pressures2.52.61.12.78.9Pay, Pensions & Incremental Drift (pay frozen 10 to 13)1.31.21.01.55.0Specific Government Grant funding reductions4.0(0.2)0.84.6Waste disposal (Including 8 per tonne landfill tax) 0.60.70.30.52.1Childrens Social Care Growth0.50.50.31.3Total Pressures6.417.38.910.943.5Additional Resources, Savings & Efficiencies General(2.2)(5.8)(3.4)(6.5)(17.9)Adult Social Care (1.2)(1.9)(1.1)(1.8)(6.0)Changes to services funded by specific grants(5.5)0.2(5.3)Efficiency Review Programme(1.7)(2.0)(1.2)(4.9)Council Tax (including Freeze Grants)(2.0)(1.8)(1.8)1.1(4.5)Other (New Homes Bonus, Ctax Reforms, Business Rates)(1.0)(0.6)(0.8)(1.8)(4.2)Localisation of Council Tax Benefit(0.7)(0.7)Total additional resources & savings(6.4)(17.3)(8.9)(10.9)(43.5)Local Context Impact of Austerity on Poole - Savings made by the Council since 2010/11 Local Context Where the money goes Majority of resources spent on minority residents (vulnerable Adults & Children)Problem have

Resources spent on the minority of its residents (vulnerable Adults and Children)

Not on those universal services available to the majority of residents (refuse collection, highways, libraries)1014/1515/1616/1717/18TotalmmmmmGrowth PressuresCore Government funding 4.25.43.32.515.4Adult Social Care - Growth 1.41.71.71.56.3Pay award 0.60.61.51.64.3Inflation and other growth pressures1.10.70.40.12.3Incremental Drift0.80.60.20.11.7Waste Disposal Costs(8 per tonne landfill tax 2014/15 plus inflation)0.60.10.20.21.1National Insurance(current rebate withdrawn Single State Pension)1.01.0Childrens Services(investment /SEN Transport / Early Years Help review)0.80.10.9Other Government Grants Reductions(Local Housing Provision / Housing Benefits Administration)0.40.20.10.7Childrens Social Care Growth(previous year funded reserves)0.20.22013/14 Budget (reserves completed)0.30.3Car Parking Income rebase0.30.3Total Additional Annual Pressures10.49.48.76.034.5Cumulative Pressures10.419.828.534.5Medium Term Financial Plan 2014 to 2018 (part 1) 14/1515/1616/1717/18TotalmmmmmExtra Resources, Savings & EfficienciesGeneral Savings and Efficiency Proposals(2.9)(1.5)(0.7)(0.6)(5.7)Adult Social Care Savings & Efficiencies(2.7)(0.2)(0.2)(3.1)Council Tax Tax Base Increase(new properties, expenditure LCTSS, collection levels)(1.6)(0.4)(0.6)(2.6)Council Tax Increases (2015/16 + 2016/17)(1.3)(1.3)(2.6)New Homes Bonus (New properties)(0.5)(0.2)(0.4)(0.6)(1.7)Council Tax Freeze Grants (2014/15 + 2015/16)(0.7)(0.7)(1.4)Adult Social Care & Childrens Services(Budget Rebase)(1.6)(1.6)Local Council Tax Support Scheme(assumed increase in resources)(0.4)(0.4)Application of reserves(Local Council Tax Benefit Scheme)(0.4)0.40.1Additional Annual Resources & Savings(10.4)(2.6)(2.8)(3.3)(19.1)Cumulative additional Resources & Savings(10.4)(13.0)(15.8)(19.1)Cumulative MTFP Net Resource Gap06.812.715.4Medium Term Financial Plan 2014 to 2018 (Part 2)Next StepsContinue 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

13Questions?

Elaine Atkinson e-mail: [email protected]

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