ADULT SOCIAL CARE AND HOUSING OVERVIEW AND SCRUTINY PANEL THE COUNCIL’S MEDIUM TERM FINANCIAL PLANS 2014/15 – 2016/17 TUESDAY 17 SEPTEMBER 2013 Alan Nash Borough Treasurer BUDGET STRATEGY: UNDERLYING PRINCIPLES • Recognition of political priorities e.g. ‘clean and green’, economic development • Efficiencies and savings will be taken as early as possible and will not be constrained by financial years – the ‘glide path’ • Savings will be focussed on efficiencies and the back office – the impact on front line services to be minimised • Twin track immediate savings and transformational change • Balances will be used in a measured way to facilitate the implementation of savings – no ‘knee-jerk’ reactions • Business rates from the regenerated town centre will help to bridge the budget gap from 2016
PLANNING ASSUMPTIONS • Funding reductions in line with 2014/15 settlement • Grant reduction in 2015/16 in line with Spending Round – 10% • Pay award 1% in 2014/15 and 2015/16; 2% in 2016/17 • General inflation (CPI) averages 2.2% throughout the period • Pressures consistent with previous year’s - £1.5m • Council funded capital programme of £6m each year + £4m in 2014/15 for school capacity PLANNING ASSUMPTIONS (CONTINUED) • Council tax freeze funding equivalent to 1% in 2014/15 and 2015/16 will be accepted – consistent with policy in previous years, but does not preclude a higher increase • No allowance for new NHS investment in social care or changes to the New Homes Bonus at this stage – £2bn on new NHS investment to support social care announced, but distribution of funding currently uncertain – £400m of New Homes Bonus directed towards Single Local Growth Fund and controlled by the Local Enterprise Partnership • Risk of revenue becoming capital? • How will funding be accessed? • Will the Council be in a position to benefit?
INCREMENTAL FUNDING GAP 2014/15 2015/16 2016/17 £m £m £m Funding Gap 6.6 12.6 18.1 Incremental Gap 6.6 6.0 5.5 FOCUS ON NEXT YEAR’S BUDGET
2014/15 BUDGET – STARTING POINT Use of Balances 2013/14 £4.4m Significant one off items Additional contingency £1.0m Time Square £1.1m Members Initiative Scheme £0.4m Underlying Budget Gap for 2014/15 £1.9m 2014/15 BUDGET – BUDGET GAP Underlying Budget Gap £1.9m Government Grant reduction £2.6m Inflation £1.9m Pressures £1.5m Council Tax/New Homes Bonus etc (£1.3m) TOTAL BUDGET GAP £6.6m
2014/15 BUDGET – BRIDGING THE GAP • Take a firm line to limit future year’s pressures – but, they reflect demographic changes and increases in demand for services • Increase Council Tax – 1% generates £0.5m – referendum for excessive increases (2%+ ?) • Utilise balances – £8.6m at 31 March 2014 – £4.0m minimum prudent balance – £4.6m available – but only delay the need for alternative measures • Identify savings – efficiencies, back office or front line services BUDGET TIMETABLE 5 September Overview & Scrutiny Commission – budget overview Executive – approves commitment budget and budget 15 October timetable 21 & 22 Portfolio Review Groups – review detailed budget proposals October 18 & 19 Portfolio Review Groups – further review of detailed budget November proposals (if required) 10 December Executive – approves budget package for consultation 30 January Overview & Scrutiny Commission – review budget proposals 26 February Budget and Council Tax agreed
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