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Budget presentation baffins neighbourhood forum may 2011 kb final

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Presentation given to Baffins neighbourhood forum on 11th May 2011, by Roger Ching

Presentation given to Baffins neighbourhood forum on 11th May 2011, by Roger Ching


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  • 1. Baffins Neighbourhood ForumBudget Update 2011/12 to 2014/15
    Roger Ching
    Strategic Director & S151 Officer
  • 2. City Council 8 February 2011
    Reports Approved:-
    Revenue Budget 2010/11 to 2014/15
    Day to day running costs of services (salaries, premises costs, contracts etc.)
    Capital Programme 2010/11 to 2015/16
    Improvements to (or) new buildings, land & equipment
  • 3. Two Types of Expenditure
  • Revenue Expenditure
    Spending on running costs of services
    - salaries of staff
    - energy costs
    - capital financing costs
  • 5. Capital Expenditure
    Payments made to buy or provide
    assets which will be of long term
    value to the Authority
  • A Simple Illustration
    Running your car…………..
    Buying the car = Capital Expenditure
    Running the car = Revenue Expenditure
  • Revenue Budget
    2011/12
  • 11. Revenue Budget
    Sets out the City Council’s day to day expenditure and how it is funded
    Total expenditure is funded by a mixture of:-
    - Government Grants
    - Business Rates
    - 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
  • 12. Examples of Services Provided
    Front Line ServicesSupport Services
    Education Information Services
    Safeguarding of Children Human Resources
    Environmental Health Finance
    Highways Infrastructure Asset Management
    Adult Social Care Legal Services
    Planning
    Refuse Collection
    Trading Standards
    Libraries & Museums
  • 13. Budget Headlines
    Formula Grant reduction
    Council Tax freeze (offset by new grant)
    Council Tax collection rate of 98.5%
    No allowance for pay award
    Inflation for all services
    Reduction in contingency provision
    Net savings of £15.0m recommended by Cabinet
  • 14. Local Government Finance Settlement 2011/12
    Overall reduction in grant (cash):
    2011/12 £11.3m or 9.07%
    2012/13 £ 6.5m or 5.69%
    But - like for like basis:
    Overall reduction in grant
    2011/12 £14.3m or 11.42%
    2012/13 £ 5.3m or 4.76%
  • 15. Revenue Budget Process 2011/12
    Target savings set at £15.0m
    Members have considered the impact on corporate priorities, service delivery, performance and value for money of :
    - Officer Savings Proposals
    - Staff and Residents’ Savings Suggestions
    - Budget Pressures
  • 16. Revenue Budget Process 2011/12
    Recommended Savings set out in Appendix C
    Recommended Budget Pressures set out in Appendix D
    Savings result in the loss of 184 posts (124 full time and 60 part time) equal to 151 Full Time Equivalent
    Savings include Senior Management reductions
  • 17. Savings Target £15.0m
    £’000
    Review of Original Forecast (1,190)
    Add Savings (Appendix C) (17,863)
    Gross Savings (19,053)
    Less
    Budget Pressures (Appendix D) 4,053
    Net Savings (15,000)
  • 18. Budget 2011/12
    Portfolio Savings Pressures Change
    £’000 £’000 £’000
    Children’s Services (3,211) 574 (2,637)
    Culture Leisure & Sport (1,454) 1,299 (155)
    Education (2,599) 74 (2,525)
    Environment & Com.Safety (1,537) 100 (1,437)
    Health & Social Care (3,372) 1,200 (2,172)
    Housing (899) 29 (870)
    Leader (64) - (64)
    PRED (302) 30 (272)
    Resources (3,474) 600 (2,874)
    Traffic & Transportation (906) 25 (881)
    Other Expenditure etc (45) 12277
    TOTAL (17,863)4,053(13,810)
    NB. £1.8m added to Children’s Social Care 2010/11 and on-going
  • 19. Budget 2011/12
    £m
    Gross Expenditure 534.460
    Less Gross Income 372.993
    161.467
    Less Government Grants 91.263
    70.204
    Less Collection Fund Surplus 1.355
    Required from Council Tax 68.849
  • 20. Council Tax 2011/12
    Council Tax Requirement £68.849m
    Council Tax Base 59,914.9
    Council Tax at Band D 2011/12 £1,149.12
    Council Tax increase of 0%
  • 21. Total Tax 2011/12 (Band D)
    2010/11 2011/12 Increase
    £ £ %
    Portsmouth City Council 1,149.12 1,149.12 0.00
    Hampshire Police Authority 146.25 146.25 0.00
    Hampshire Fire & Rescue 61.38 61.38 0.00
    Band D Property – Total 1,356.75 1,356.75 0.00
  • 22. Tax for All Bands
    Band 2011/12
    A £ 904.50
    B £1,055.25
    C £1,206.00
    D £1,356.75
    E £1,658.25
    F £1,959.75
    G £2,261.25
    H£2,713.50
  • 23. National Non Domestic Rates
    Five yearly business rate revaluation in 2009
    For 2011/12, businesses will pay 43.3p for every £1 rateable value (41.4p in 2010/11)
    Money collected is paid into a National Pool
    Portsmouth receives a share of the National Pool as part of Formula Grant
  • 24. Forecast Budgets
    2012/13 to 2014/15
  • 25. Forecast Budgets 2012/13 to 2014/15
    Assumptions include:
    Formula Grant reduction of 7.48% in 2012/13, 0.85% in 2013/14 and 5.6% in 2014/15
    2.5% increase in Council Tax each year
    Council Tax collection rate of 98.5%
    Inflation for all services
    Ongoing effect of savings and budget pressures approved for 2011/12
    Allowance for unavoidable budget pressures
    Allowance for other known budget pressures
  • 26. Forecast Budgets 2012/13 to 2014/15
    Savings to be found in future years
    Underlying In-Year Cumulative Budget Deficit Target Saving
    £m £m £m
    2012/13 7.142 8.0 8.0
    2013/14 10.467 7.0 15.0
    2014/15 22.326 7.0 22.0
    Savings targets allocated across all services
  • 27. Target Savings 2012/13 to 2014/15
    Targets for Adult and Children’s Social Care reduced by 50%
    Targets for all other services shared proportionately
    Further review of apportionment of savings targets
  • 28. Budget 2011/12
    In Summary
    Financially challenging
    Budget aims to protect services within tight financial constraints
    Council Tax freeze
    Budget deficit of £4.739m balanced by contribution from Reserves
    £22m further savings to be made in 2012/13, 2013/14 and 2014/15
  • 29. Capital Programme
    2010/11 to 2015/16
  • 30. Capital Funding Sources
    Funding sources include:-
    Borrowing
    - Supported (ie Government support for
    repayments)
    - Prudential Borrowing (ie tax for repayments) – used
    only for Spend to Save Schemes
    Capital Receipts
    Grants/Other External Contributions
    Revenue Contributions
  • 31. Proposed New Capital Schemes
    Includes:
    Berth 2 Extension (Port)
    Decent Homes Standards
    Housing Support for Vulnerable People
    Hilsea Splashpool
    Landlords Maintenance
    North End Regeneration
    Road Schemes (Local Transport Plan)
    Schools Modernisation
  • 32. Major Schemes Requiring Funding
    Northern Quarter
    Somerstown Phase 2
    Tipner
    Northern Road Bridge
    Guildhall
    Schools Strategy
  • 33. Questions?
    ?
    ?
    ?
    ?
    ?
    ?