BUDGET EVENT 19 November 2015 WELCOME COUNCILLOR JULIE DORE, - PowerPoint PPT Presentation

THE BUDGET 2016/17 BUDGET EVENT 19 November 2015

WELCOME COUNCILLOR JULIE DORE, Leader, Sheffield City Council

What are we going to cover this evening? CONTEXT Councillor Ben Curran, Cabinet Member for Finance & Resources DETAILS AND OUR APPROACH John Mothersole, Chief Executive QUESTIONS AND ANSWERS

CONTEXT... COUNCILLOR BEN CURRAN, Cabinet Member for Finance & Resources

Scale of the challenge... We need to £50 fjnd savings of around MILLION for 2016/17

We still don’t know exactly how much our budget will be next year > “ We will phase out…local government grant altogether ” George Osborne > We won’t know more until after the Spending Review with full details later in December… … but we think our planning assumptions are about right

But we know Councils have been affected more than many areas of Government Change in Government departmental spending* 8% 14% NHS 2009-10 to 2015-16 Defence -8% 2009-10 to 2019-20 Business -32% -53% Communities & -48% -64% Local Government -58% -71% Work and Pensions -63% Transport -75% -80% -60% -40% 20% 0% 20% * Relates to Revenue Departmental Expenditure Limit RDEL) Source: Resolution foundation

Budget cuts have affected different places differently Changes to Spending Power between 2013-14 and 2015-16 (in percent) 2% 0% -2% -4% -6% -8% SHEFFIELD is the -10% 16th most affected -12% Local Authority* in terms of reduced spending power -14% -16% * Compared to Metropolitan Districts -18% and Unitary Authorities Source: DCLG

We’ve already made significant savings. The £50m comes on top of around £300m worth of savings over the last 5 years £50m 2016 - 17 £60m 2015 - 16 £60m 2014 - 15 £50m 2013 - 14 £300m £50m 2012 - 13 £80m 2011 - 12

What this has meant for our services? Savings agreed over the last 3 years Each year we have made many smaller decisions to minimise the impact of the cuts on any one service Year 2013/14 2014/15 2015/16

Year Reviewing Social Care support 2013/14 (over two years) to make sure it meets current needs, is fair, 2014/15 equitable and cost efgective 2015/16 Removing Refjnancing the Streets Community Ahead contract and Assemblies changing our contributions to the city’s bus partnership Working with local people Targeting youth and communities to support to young people change how many of our who are most at risk libraries are run

We have been elected to deliver bold ambitions for Sheffield In Touch Strong Organisation Economy Thriving Neighbourhoods and Communities Better Health and Tackling Wellbeing Inequalities

Because of our values we have protected important services for Sheffield Focusing on people Developing solutions for the with the greatest long-term need Working with our Taking early action communities to deliver because we know services in a difgerent way prevention is better Operating effjciently as an than cure organisation

We will continue to put our values at the heart of what we do Protecting key areas, as much as we can, such as Child Safeguarding • Adult Care Council House Building Best Start Programme But we can’t Apprenticeships under-estimate and our the impact of future Living Wage cuts to our grants Commitment

Budget VIDEO

DETAILS AND OUR APPROACH... JOHN MOTHERSOLE, Chief Executive

How our budget is constructed... Sheffield City Council total revenue income, 2015-16 in £million Locally Other Specifjc Council Central Retained Dedicated Government Government House Fees and Business Council Schools Grant Grants Rents Charges Grants Rates Tax 17% 27% 11% 14% 10% 8% 12% £1,391m 2015 - 16 Only some of these elements make up our ‘net income’. This is £424 million Areas where we have and refers to those elements of our choices over how the budget where we have more choice about money is spent how the money is spent £424m

How our budget is spent Sheffield City Council budget, 2015-16 in £million Total £1,391million Central Costs Planning, Emptying Adult and Children’s Leisure Highways your Social other Social and and Housing bins Care Services Care Culture Transport Education Benefjt Housing 14% 2 % 5 % 6 % 1 % 4 % 2 % 2 % 8% 27% 14% 13% Cost of Environmental Borrowing Health Public > Schools money goes straight through our accounts to Health schools > Council House Rents, and the ‘Housing Revenue Account’ has to be spent on Council Homes > In addition, we have other existing contracts and finance commitments

How our budget has changed... £50m £300m £60m £60m £50m £50m £80m 2011 - 12 2012 - 13 2013 - 14 2014 - 15 2015 - 16 2016 -2017

Costs and demand for services is increasing A growing population, increasing by 5% over the coming decade means increased demand for our services. People are living longer healthier lives, but some are living - 600 Age 80+ longer with signifjcant health needs. This is one of the reasons Age 65 - 79 we have seen demand for nursing home places increase by - 500 40% over the last fjve years . We will do more to help people live independently, safely and well in their homes, however we - 400 expect demand to continue increasing as the number of people aged 85+ is predicted to rise by nearly 40% over the coming Age 18 - 64 - 300 decade. Other pressures include: - 200 • Government policies such as schools becoming - 100 academies and the new national minimum wage Age 0 - 17 • Ending of grants for areas and services that the Council - 0 want to protects (e.g., the Local Assistance Scheme for people in severe fjnancial hardship) 2014 - 2024 • Increasing costs for goods and services Source: ONS

We’ve already made huge reductions - what’s different now? Some examples of what’s changed over the last five years: > Services – e.g., our Youth Service – are > Making best use of the increasingly focused on people with community services and the greatest need reablement to help people regain independence > Negotiating savings on our major > We’ve reviewed hundreds of social contracts; such as Streets Ahead care packages and are now paying > Many libraries are now community-run for unmet social care needs in the most cost efgective way > We now run an alternate weekly waste and recycling collection service > Developing Woodburn Road facilities and using the Don Valley > We no longer have community site for a new Technology College assemblies and the new Advanced Wellbeing Research Centre

We’ve already made huge reductions - effectively losing around a quarter of jobs in 4 years Council Workforce (Full Time Equivalents) 8000 7000 –24% 6000 5000 4000 3000 2000 1000 0 2011-12 2012-13 2013-14 2014-15 2015-16

We remain ambitious for Sheffield and its and future t h w i e a l D i o n u t v o l D e e d o s o p p r A > t e n n m e r G o v y . n e m o w n e n ’ t s i s T h i • : U T B > d ffj e l e S h t o m e c o n ’ t e s d o I t • c i l . u n C o t y C i r y f o p a t o e d u s b e n ’ t c a I t • . c e s r v i s e n c i l o u C i n g i s t e x m 5 0 d £ fj n o d t n e e e e t h n g h a t c s n ’ o e e d f o r e r e t h I t > a r y e e x t r n f o g s v i n s a

Growth of the city is increasingly important for us and for our services Gives Sheffjeld more In coming years we will This means as Sheffjeld’s fjnancial retain 100% economy of business rates stability grows, collected in the city, as we will be and under our these rates can less reliant devolution deal, we be used to on Government directly fund retain 100% funding of business rate growth services for local people

Even optimistic forecasts for business rate growth do not compensate for phasing out of the Local Government Grant 40 0 Cumulative change, £m Core Government Grant -40 Business Rates Income -80 -120 2016/17 2017/18 2018/19 2019/20 2020/21 Current forecasts of business rate growth will not cover the overall loss in core government grants from 2015/16 going forward

SO, WHERE DOES THIS ALL LEAVE US?

So, where does this all leave us? WE HAVE A We need to work together to think about longer term changes for the city and its citizens Where we need to make changes next year... £50 we may already be talking to those afgected, or MILLION this will start in coming months… Go to www.sheffjeld.gov.uk/budget to keep CHALLENGE informed on the latest consultations Less income; and pressures Further change is inevitable… that we need but next year we are proposing not to change things like: to address Alternative weekly bin collections, Our support to libraries, The 101 non-emergency service...