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Poole Council Cllr Elaine Atkinson Leader of the Council Budget & Council Tax Setting 2014/15 MEETING WITH REPRESENTATIVES OF RESIDENTS’ ASSOCIATIONS AND COMMERCE & INDUSTRY
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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
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Page 1: Poole Council

Poole Council

Cllr Elaine AtkinsonLeader of the Council

Budget & Council Tax Setting 2014/15

MEETING WITH REPRESENTATIVES OF RESIDENTS’ ASSOCIATIONS

AND COMMERCE & INDUSTRY

Page 2: Poole 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

Page 3: Poole Council

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)

Page 4: Poole Council

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

Page 5: Poole Council

National Context – Why Austerity Needed

National Debt at the end of 2012 = £1,390,000,000,000

Page 6: Poole Council

National Context – Spending Review 2015

Page 7: Poole Council

Local Context – Where the money comes from

Page 8: Poole Council

Local Context – Impact of Austerity on Poole

55% Cumulative annual reduction in core Government funding since 2010

Page 9: Poole Council

10/11 11/12 12/13 13/14 Total£m £m £m £m £m

Growth PressuresAdult Social Care - Growth 1.9 3.2 4.2 2.8 12.1Core Government funding reductions (0.4) 5.1 2.5 2.3 9.5Inflation, pay price and other growth pressures 2.5 2.6 1.1 2.7 8.9Pay, Pensions & Incremental Drift (pay frozen 10 to 13) 1.3 1.2 1.0 1.5 5.0Specific Government Grant funding reductions 4.0 (0.2) 0.8 4.6Waste disposal (Including £8 per tonne landfill tax) 0.6 0.7 0.3 0.5 2.1Children’s Social Care Growth 0.5 0.5 0.3 1.3

Total Pressures 6.4 17.3 8.9 10.9 43.5Additional 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

Page 10: Poole Council

Local Context – Where the money goes

Majority of resources spent on minority residents (vulnerable Adults & Children)

Children's and Education Services ; 8.7%

Children's Social Care ; 8.7%

Adult Social Care ; 37.7%

Cultural and Related Services ; 6.6%

Environmental Services ; 11.9%

Planning and Development Services ; 2.6%

Highways and Transportation Services ; 9.0%

Housing Services , 3.0%

Public Health ; 4.0%

Central Services ; 3.0%

Corporate services ; 2.6%Capital financing ; 2.1%

Page 11: Poole Council

14/15 15/16 16/17 17/18 Total£m £m £m £m £m

Growth PressuresCore Government funding 4.2 5.4 3.3 2.5 15.4Adult Social Care - Growth 1.4 1.7 1.7 1.5 6.3Pay award 0.6 0.6 1.5 1.6 4.3Inflation and other growth pressures 1.1 0.7 0.4 0.1 2.3Incremental Drift 0.8 0.6 0.2 0.1 1.7Waste Disposal Costs(£8 per tonne landfill tax 2014/15 plus inflation) 0.6 0.1 0.2 0.2 1.1National Insurance(current rebate withdrawn Single State Pension) 1.0 1.0Children’s Services(investment /SEN Transport / Early Years Help review) 0.8 0.1 0.9Other Government Grants Reductions(Local Housing Provision / Housing Benefits Administration) 0.4 0.2 0.1 0.7Children’s Social Care Growth(previous year funded reserves) 0.2 0.22013/14 Budget (reserves completed) 0.3 0.3Car Parking Income rebase 0.3 0.3

Total Additional Annual Pressures 10.4 9.4 8.7 6.0 34.5Cumulative Pressures 10.4 19.8 28.5 34.5

Medium Term Financial Plan 2014 to 2018 (part 1)

Page 12: Poole Council

14/15 15/16 16/17 17/18 Total£m £m £m £m £m

Extra 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 & Children’s 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) 0.4 0.1

Additional 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 Gap 0 6.8 12.7 15.4

Medium Term Financial Plan 2014 to 2018 (Part 2)

Page 13: Poole Council

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

Page 14: Poole Council

Questions…?Elaine Atkinson e-mail: [email protected]