Baffins Neighbourhood Forum Responding to the £56m Budget  Shortfall 2013/14 to 2015/16Chris WardHead of Finance & S151Off...
Introduction• Revenue Budget – Expenditure &  Funding• Financial Background• Budget 2012/13 (Current Year)• Approaches to ...
Revenue Budget – Expenditure &          Funding• Sets out the City Council’s day to day expenditure and  how it is funded•...
Financial Background• Difficult economic climate – flat economic growth,  rising unemployment, high public debt, falling r...
Financial Background• Council financial forecasts – next 3 years £27m of ongoing  savings or £56m cumulatively   Financial...
Budget 2012/13Portfolio                  Savings    Pressures       Change                             £’000      £’000   ...
Finding £27m (£56m cumulatively)• Approaches to applying savings to Services could  be:  – Proportionate savings across al...
Proportionate Savings - £27m (£56m)Portfolio                  Base Budget    Savings £19m      %      Savings £8m    %    ...
Key Issues for the Council• Continue to deliver and accelerate the Council’s efficiency  programme (Transformation)• Reduc...
Questions?
Budget 2012/13                                  £mGross Expenditure                569.495Less: Gross Income              ...
Total Tax 2012/13 (Band D)                             2011/12    2012/13     Increase                                £   ...
Tax for All BandsBand       2012/13 A       £ 904.50                     53% of households in B       £1,055.25   Portsmou...
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Baffins neighbourhood forum sept. 12

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Budget Presentation for Portsmouth City (UK) 2012 -2014

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Baffins neighbourhood forum sept. 12

  1. 1. Baffins Neighbourhood Forum Responding to the £56m Budget Shortfall 2013/14 to 2015/16Chris WardHead of Finance & S151Officer
  2. 2. Introduction• Revenue Budget – Expenditure & Funding• Financial Background• Budget 2012/13 (Current Year)• Approaches to finding £27m (£56m cumulative) savings• Key Considerations
  3. 3. Revenue Budget – Expenditure & Funding• Sets out the City Council’s day to day expenditure and how it is funded• Total expenditure (£570m) is funded by a mixture of:- – General Government Grants (Incl. Business Rates) – Specific Grants & Subsidies (Schools, HBens etc.) – Council Tax – Income from fees and charges – Contribution from Revenue Reserves• Government requires Local Authorities to set a balanced budget each year• Aim is that In-Year Expenditure equals In-Year Income
  4. 4. Financial Background• Difficult economic climate – flat economic growth, rising unemployment, high public debt, falling real incomes• 2013/14 – 3rd Year of 4 year programme of Public Sector cuts (30% for Local Government)• Anticipating further cuts beyond 2014/15• In addition: – Significant demographic pressures – ageing population and pressure on Adult Social Care – Expectations and risks surrounding Safeguarding Children – Increasing demands – Housing, Council Tax Benefits, Inflation (Pay, energy etc.)
  5. 5. Financial Background• Council financial forecasts – next 3 years £27m of ongoing savings or £56m cumulatively Financial Year 2013/14 2014/15 2015/16 Total £m £m £m Year 1 10 10 10 30 Year 2 9 9 18 Year 3 8 8 Total 10 19 27 56• Council resolution Feb 12: – £19m over 2013/14 to 2014/15 – A further £8m in 2015/16 • Current Year £7.8m savings made (£30m cumulatively over 3yr period) – almost entirely through efficiencies (minimal impact on services) • Scope for future efficiencies more limited and service cuts inevitable
  6. 6. Budget 2012/13Portfolio Savings Pressures Change £’000 £’000 £’000 %Children & Education (983) 1,048 65 0.2Culture Leisure & Sport (389) 49 (340) (3.4)Community Safety (362) - (362) (9.7)Environment (481) 354 (127) (1.0)Health & Social Care (2,103) 264 (1,839) (3.4)Housing (179) - (179) (8.5)Leader (12) - (12) (3.8)PRED (276) - (276) (6.6)Resources (2,719) 10 (2,709) (10.5)Traffic & Transportation (287) 201 (86) (0.6)Other Expenditure etc (35) - (35) (7.6)TOTAL (7,826) 1,926 (5,900) (3.8)
  7. 7. Finding £27m (£56m cumulatively)• Approaches to applying savings to Services could be: – Proportionate savings across all Services – Proportionate savings but with some protection of Services to the Vulnerable (but Adults & Children’s Social Care consume circa half of the available budget) – An alternative prioritised method of determining the incidence of savings across Services
  8. 8. Proportionate Savings - £27m (£56m)Portfolio Base Budget Savings £19m % Savings £8m % 2012/13 2013/14 – 14/15 2015/16 £m £m £mChildren & Education 33.2 4.3 13.0% 1.8 5.5%Community Safety 3.3 0.4 13.0% 0.2 5.5%Culture, Leisure & Sport 9.0 1.2 13.0% 0.5 5.5%Environment 12.4 1.6 13.0% 0.7 5.5%Health & Social Care 46.7 6.1 13.0% 2.5 5.5%Housing 9.2 1.2 13.0% 0.5 5.5%Leader 0.3 0.04 13.0% 0.02 5.5%Planning & Regeneration 1.7 0.2 13.0% 0.1 5.5%Resources 24.7 3.2 13.0% 1.4 5.5%Traffic & Transport 5.2 0.7 13.0% 0.3 5.5%Other (Uncontrollable / 50.8 0.0 0.0“One Off”)Total 196.5 19.0 8.0
  9. 9. Key Issues for the Council• Continue to deliver and accelerate the Council’s efficiency programme (Transformation)• Reducing dependency on Central Government Funding (Council Tax, Income generation and charging for discretionary services)• Influencing demand for services (e.g. Regeneration – homes and jobs) – manage costs• Contract re-negotiation / consolidation• Integration with Health – managing Social Care Costs• Delivery via the 3rd Sector – Voluntary Services, Trusts• Property rationalisation – save property costs• Deciding which Service areas to make savings
  10. 10. Questions?
  11. 11. Budget 2012/13 £mGross Expenditure 569.495Less: Gross Income (380.576) 188.919Less: Government Grants (120.068)Required from Council Tax 68.851Divide by: Council Tax Base 59,916.1Council Tax at Band D 2012/13 £1,149.12
  12. 12. Total Tax 2012/13 (Band D) 2011/12 2012/13 Increase £ £ %Portsmouth City Council 1,149.12 1,149.12 0.00Hampshire Police Authority 146.25 146.25 0.00Hampshire Fire & Rescue 61.38 61.38 0.00Band D Property – Total 1,356.75 1,356.75 0.00
  13. 13. Tax for All BandsBand 2012/13 A £ 904.50 53% of households in B £1,055.25 Portsmouth pay the full Council Tax C £1,206.00 22% of all households in D £1,356.75 Portsmouth receive E £1,658.25 Council Tax Benefit F £1,959.75 87% of all households in Portsmouth are in Council G £2,261.25 Tax Bands A-C H £2,713.50
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