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Baffins Neighbourhood ForumBudget Update 2011/12 to 2014/15 <br />Roger Ching<br />Strategic Director & S151 Officer<br />
City Council 8 February 2011<br />Reports Approved:-<br />Revenue Budget 2010/11 to 2014/15<br />Day to day running costs ...
Two Types of Expenditure<br /><ul><li>	Revenue
Capital</li></li></ul><li>Revenue Expenditure<br />Spending on running costs of services<br /> - salaries of staff<br /> -...
Capital Expenditure<br />Payments made to buy or provide <br />assets which will be of long term<br />value to the Authori...
Buildings
Equipment</li></li></ul><li>A Simple Illustration<br />Running your car…………..<br />Buying the car = Capital Expenditure<br...
  insurance
  petrol
  repayment of loan</li></li></ul><li>Revenue Budget<br />2011/12<br />
Revenue Budget<br />Sets out the City Council’s day to day expenditure and how it is funded<br />Total expenditure is fund...
Examples of Services Provided<br />Front Line ServicesSupport Services<br />Education				Information Services<br />Safegua...
Budget Headlines<br />Formula Grant reduction<br />Council Tax freeze (offset by new grant)<br />Council Tax collection ra...
Local Government Finance Settlement 2011/12<br />Overall reduction in grant (cash):<br />		2011/12		£11.3m or 9.07%<br />	...
Revenue Budget Process 2011/12<br />Target savings set at £15.0m <br />Members have considered the impact on corporate pri...
Revenue Budget Process 2011/12<br />Recommended Savings set out in Appendix C<br />Recommended Budget Pressures set out in...
Savings Target £15.0m<br />								     £’000<br />Review of Original Forecast		    (1,190)<br />Add Savings (Appendix C) ...
Budget 2011/12<br />Portfolio		             Savings         Pressures           Change<br />					  £’000	              £’0...
Budget 2011/12<br />								      £m<br />Gross Expenditure				   534.460<br />Less Gross Income			   372.993<br />							...
Council Tax 2011/12<br />Council Tax Requirement 	      £68.849m<br />Council Tax Base			        59,914.9<br />Council Tax...
Total Tax 2011/12 (Band D)<br />2010/11    2011/12    Increase<br />					             £               £                %<b...
Tax for All Bands<br />			Band 	   2011/12<br />  			   A	      	£   904.50<br />  			   B	      	£1,055.25<br />   			   ...
National Non Domestic Rates<br />Five yearly business rate revaluation in 2009 <br />For 2011/12, businesses will pay 43.3...
Forecast Budgets <br />2012/13 to 2014/15<br />
Forecast Budgets 2012/13 to 2014/15<br />Assumptions include:<br />Formula Grant reduction of 7.48% in 2012/13, 0.85% in 2...
Forecast Budgets 2012/13 to 2014/15<br />Savings to be found in future years<br />			Underlying	In-Year	Cumulative	     Bu...
Target Savings 2012/13 to 2014/15<br />Targets for Adult and Children’s Social Care reduced by 50%<br />Targets for all ot...
Budget 2011/12<br />In Summary<br />Financially challenging <br />Budget aims to protect services within tight financial c...
Capital Programme<br />2010/11 to 2015/16<br />
Capital Funding Sources <br />Funding sources include:-<br />Borrowing<br />- Supported (ie Government support for <br /> ...
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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

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Budget presentation baffins neighbourhood forum may 2011 kb final

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

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