Sustainable Income Strategies to Maintain Public Services · Sustainable Income Strategies to Maintain Public Services Cliff Dalton, Head of Local Government, CIPFA 16th March 2016

Sustainable Income Strategies to Maintain Public Services

Cliff Dalton,

Head of Local Government, CIPFA

16th March 2016 1

cipfa.org

For today:

What are authorities doing to be more commercial?

Grant projections shaping council policy?

Options to reduce costs / deliver services more efficiently?

CIPFA ‘Implementing a Spending Freeze’

CIPFA policy position on commercialisation

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Tax Free Childcare

New burdens

What are the risks; what are your plans?

Does your budget balance?

How sustainable is it?

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Is this a valid strategy?

Gatenby-Sanderson…

Word ‘Commercialism’ increase of 100% in 2015

‘Economic’ up 40% and ‘Commissioning’ up 30%

In 2013 60% of councils owned a trading company (nearer 90% today)

‘Profit, no longer a dirty word’

- Sandra Dinnen, Chief Executive, South Norfolk Council

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Sales, Fees & Charges

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Total England Sales, Fees and Charges

£11.93bn

£11.69bn

£11.07bn

£11.31bn

£11.77bn

£10.60bn

£10.80bn

£11.00bn

£11.20bn

£11.40bn

£11.60bn

£11.80bn

£12.00bn

2009-10 2010-11 2011-12 2012-13 2013-14

Total Sales, Fees & Charges – England: Source CIPFA Statistics

+6%

2 Years

Authorities are doing more

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Current top performers (RO data)

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Lowest income per head in Cultural,

Environmental and Planning

Taken from the CIPFA Income Generation Comparative Profiles: www.cipfa.org/comparativeprofiles

Where are you now?

Highest income per head in

Housing

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Statutory, Non-statutory and the grey bit in middle (income options?)

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A good place to start?

85 pages regulatory powers and income suggestions/ opportunities

www.cipfa.org/publications

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Remember: Commercialism is more than just a word

Business acumen (competition, market forces, price sensitivity/ elastic, risk analysis)

Business case – financial projections

Organisation financials - monitoring, reporting & suitable infrastructure to support

Clash of policy position? (vulnerable groups)

Scope to charge (national initiatives, discretionary services - cost recovery)

Demand management (pricing to reduce service demand/ increase activity?)

Cash or plastic / In advance or arears

What is your risk appetite?11

cipfa.org

Alternative Service Delivery options - the potential?

In House

Partnership Working and Public Entity Joint Ventures

Social Enterprise Charities that trade

Mutuals

Community Interest Companies

Commercial Organisations Outsourcing

Commercial Joint Ventures

ASDV - new CIPFA network from April 2016: [email protected]

cipfa.org

CIPFA – supporting your organisation

Round table (10th March )

Publication on managing a spending freeze (1st April)

CIPFA Local Government Conference (May)

Financial standing advisory support

Joint work with LGA & SOLACE

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CIPFA – supporting your staff

CIPFA Qualification New from 2015

Leadership and commercial

Creating experts

Transformation / Devolution

Finance business partnering Fundamentals of Business Partnering

Technical and Professional Skills

Transformational Change

Developing Commercial Accumen

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cipfa.org

CIPFA policy position statements

Central government must support entrepreneurial behaviour, options? Tax holidays for council owned trading companies

Earn back powers to stimulate markets

Confidence that income can be retained with no loss of grant

But, so must the sector Training in commercial Skills

Skills development around investment opportunities and risk

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Sustainable Income Strategies to Maintain Public Services

Cliff Dalton,

Head of Local Government, CIPFA

16th March 2016 17