Budget Proposals 2013/14 for Consultation


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  • Such cuts to public service spending not done in the UK before Never more than 2 consecutive years of cuts previously Spending plans imply April 2010 to March 2017 will be the tightest 7 years for public service spending since WWII On the other hand cuts follow a period of big spending increases 12 consecutive years of real increases (1998-99 to 2009-10) by 2016–17 total public service spending will be the same as in 2004-05 in real terms (2000–01 as a % of national income) © Institute for Fiscal Studies
  • Budget Proposals 2013/14 for Consultation

    1. 1. PUBLICCONSULTATIONConsultation on thebudget proposals for2013/14
    2. 2. Issues to cover Context of public spending MCC budget strategy Specifics issues – pressures/savings Capital
    3. 3. Welsh Local Government Finance – Unprecedented TimesFigure 3.11. Planned cuts to spending on public services: has it been donebefore in the UK? (Total spending on public services) 14 12 Annual Growth Seven Year Moving Average 10 8Percentage real income 6 4 2 0 -2 -4 -6 -8 1955-56 1970-71 1950-51 1980-81 1985-86 1990-91 2010-11 1975-76 2005-06 2015-16 1960-61 1965-66 2000-01 1995-96 Financial year
    4. 4. Best case and worse case scenariosScenario 1: Welfare cuts delivered Welsh NHS cut and not protected Public spending grows in line with forecast economic growth after 2016-17Our Budgets would still be 1.6% lower in real terms in2020−21© Institute of fiscal Studies
    5. 5. Best case and worse case scenariosScenario 2: Welfare not cut and indeed knock on effects for other services Welsh NHS protected and service unreformed Public spending the same in real terms in 2020-21 as in 2016- 17If this happens, and both welfare spending and the Welsh NHSare protected from further reductions in spending, UAsspending power would be 18% lower (22% lower per person) in2020−21 than in 2012−13.1% reduction in WG funding for Monmouthshire equates toapprox. £1 million© Institute of fiscal Studies
    6. 6. The Challenge for non-protected services This may reflect prioritisation of services due to rising demands, statutory obligations or Welsh Government targets 0% -5%Real change in spending(2009−10 to 2012−13) -10% -15% -20% -25%
    7. 7. The Challenge for non-protected servicesIf overall spending on services was to bereduced by 18%, limiting the reductions inoverall spending to half that level (9%) in areasthat have so far been relatively protected –social services, environmental services andrefuse, and education – would require cuts of52% in spending on all other services. (Thisequates to about £32 million)
    8. 8. AEF per head of population 1,800 1,700 1,600£ per head 1,500 1,400 1,300 1,200 1,100 1,000 Authority
    9. 9. Comparative funding levels MCC is still at the bottom of the table in terms of funding per head at £1,139 If MCC was funded at  Average AEF per head – extra £25.2 million  Top AEF per head – extra £48.6 million  Nearest AEF per head – extra £10.7 million
    10. 10. The challenge of demographic change  Areas of Wales that are already relatively old are set to see further rapid aging  The number aged 65 and over per 1,000 working age residents is expected to increase from 370 to 655 in Monmouthshire by 2033.  National and local government will need to plan for such varied changes in demographics (there is considerable uncertainty around these estimates).
    11. 11. Budget Strategy Prioritising direct spending in core strategic priorities:  Schools  Services to vulnerable children and adults  Activities that support the creation of jobs and wealth in the local economy Continue to look at the four-year plan – but a need to look beyond 2013/14 transition year MTFP – need to think differently in responding to the future financial and demographic challenges
    12. 12. Facing the challenge Agile working Systems thinking Creative Councils Intrapreneurship Review of earmarked reserves
    13. 13. Medium Term Financial Plan No increase in council tax (1% = £436k) 1% pay award (1% = £721k) Vacancy factor of 2% (1% = £552k) Inflation factor of 2% (1% = £673k) WG funding levels 0.39% (1% =£952k) Council tax collection rate of 98% (1% =445k)
    14. 14. Medium Term Financial PlanThe Projected Gap  What’s new? Budget shortfalls were managed in 2011/12 and 2012/13 of £5.5m and £4.0m respectively Year Shortfall 2013/14 £4.2m  However, there is no longer any low- 2014/15 £6.4m hanging fruit. The budget process for 2013/14 has evidenced the 2015/16 £11.1m challenge ahead 2016/17 £16.5m  Based on a balanced budget for 2013/14, the revenue budget would need to reduce by a further £12.3m by 2016/17  However, consider the IFS projections up to 2020/21 and that evidence based pressures are not taken into account
    15. 15. Final Settlement Average increase is 1.2% (MCC 0.7%) Adjusting for transfers in – MCC 0.39% so lost £372k New responsibility – Council tax benefit, 10% Limited information on specific grants Gap increases to £859k
    16. 16. Specific Issues Pressuresidentified Savings proposals Budget shortfalls have been managed through redesign, transformation, income generation, efficiency and system thinking processes.
    17. 17. Pressures Social Care & Health Pressures 2013/14 £000 Residential/Nursing Fees - increase in care home fees 234 Community care - recurrent core pressure - reduced by 12/13 virement from 124 Corporate Childrens services 500 SCH Totals 858 Regeneration & Culture Pressures 2013/14 £000 Use of revenue to increase capital spending and financed from reserves 250 Project Gwyrdd - procurement costs / other costs - reserve funded 52 R&C Totals 302 Of which, reserve funding (enter as credit) (302) R&C Core Funding 0 Corporate Costs & Levies 2013/14 £000 Accommodation running costs - various sites 100 Increment pay and JE appeal pressure beyond existing budget provision 543 Auto enrolment 500 Corporate Costs & Levies Totals 1,143
    18. 18. Budget savings - CYP Project title Summary Detail Feasible in 2013/14 Improving the quality and Potential savings in provision of meals, £30,000 efficiency of school meals capital costs of equipment and on- going maintenance. Procure locally and ensure school meals part of wider Monmouthshire Food experience. Additional income possible through £25,000 improved service and take up and 5p increase in price Young people monitoring and Provide more efficient and ‘hands on’ £10,000 managing the CRC scheme in service and form part of energy saving schools curriculum Savings still to be found £200,000 TOTAL CYP £265,000
    19. 19. Budget savings - SCH Project title Summary Detail Feasible in 2013/14 High cost placement reviews Review High Cost Placements and re-size £55,000 using appropriate to need. Ordinary residence Ensure people in supported tenancies in £150,000 other areas of the Country are care managed and financially managed in their respective areas Community Care Efficiency Increased use of Shared Lives, Direct £86,000 Savings Payments & CDS. Plus reduction in flashing doorbells Drybridge Gardens Service Reconfiguration £20,000 Monmouth Health & Social Care: Review of Administration post £14,000 Office IT Budget Release of reinstated IT budget following £30,000 previous IT service review Facilities Budget Release of non pay budget £30,000 Disability Services: Cover Budgets Review of cover budgets £10,000 TOTAL SCH £395,000
    20. 20. Budget savings – R & C Project title Summary Detail Feasible in 2013/14 Investing in fitness Projections show that investment in quality and supply of £100,000 equipment in Leisure equipment will increase custom and generate more income centres. Removing the caretaker Using on site duty officers to open and close centres £140,000 model at Leisure Centres Sport Wales Calls for Grants of up to £150k available for more innovative £30,000 Action - Grant Funded new approach to sport development and recreation bike centre at Gilwern Outdoor Pursuit centre. Collaborative Museums, libraries, tourism and countryside joint £20,000 procurement purchasing power
    21. 21. Budget Savings – R & C Project title Summary Detail Feasible in 2013/14 In-house delivery of Invest to save model e.g. air quality assessments: £50,000 services – rather than using consultants, new income generation a. Delivery of public health monitoring arrangements for council-owned property (e.g. legionella) instead of using external consultants could deliver cost savings to other dept‟s and income to EH dept. b. Further marketing and development of “Primary Authority” approach engaging businesses c. Collaborative approaches with other authorities delivering income generation by undertaking lead roles such as for delivery of private water supplies audits. Review of all arts/ cultural/ · Business case culture for application process £50,000 community grants · Decisions in line with furthering 3 priorities · More targeted intervention · Moving from grant culture to micro-financing - loans Abergavenny Museum site Abvy museum retail £8,000 total – Café tables & £8,000 chairs/vending machine generating £4,000. Pending feasibility study & checking on Marquis‟s cut on income, from extending events & activities e.g. Pop up restaurants in castle grounds = £4,000.
    22. 22. Budget savings – R & C Project title Summary Detail Feasible in 2013/14 Museum service - Fit for £20,000 the future (staff review) Conservation Service - Funding is currently available as a result of a recently £7,500 income generation. vacated conservator post. Proposal is to „ grow‟ the 2 p/t conservators posts to generate income from 2013/14. Museum fundraising It‟s anticipated that the £50,000 for 2013/14 income £50,000 generation will depend on applications for external funding of £37,500 to pay for a post to capitalize on new income streams. Voluntary Food Premises Not done anywhere - would be a UK first. Invite food £10,000 Licensing Scheme - business to voluntarily license as a food business enabling chargeable them to access consultancy support. This would assist businesses to meet food safety responsibilities and gain a good food hygiene rating under WG‟s proposed mandatory display scheme thus supporting public health objectives and economic development. – estimated income £10K in 13-14 building up towards £20K by 15-16. Monmouthpedia – · Scaling up the project to other towns, cities and places £10,000 commercialising IP in the world TOTAL PUBLIC £495,500 HEALTH AND CULTURE
    23. 23. Budget Saving – R & CProject title Summary Detail Feasible in 2013/14Increased commercial · Widening volunteer network scope £10,000focus at Caldicot Castleand Old Station · Commercial management company as per new report · New relationships with external funders · Examination of longer-term ownership optionsRe-training and · everyone trained to offer basic business support and £40,000redeploying Adventa team development services commerciallymembersProvision of commercial · end to end service provision £5,000consultancy „start tofinish‟ planning service
    24. 24. Budget Saving – R & C Project title Summary Detail Feasible in 2013/14 Provision of training and £25,000 Provision of training courses on how to manage people, HR services via Mon covering the full spectrum of human resource management, Enterprise including how to handle disciplinaries, how to handle grievances, how to manage redundancies, how to dismiss, how to manage sickness absence, how to have difficult conversations, how to manage performance, how to identify training needs at the 3 levels and how to meet those training needs plus many more delivered on a commercial fee basis Provision of a redundancy and dismissal management service offered on a commercial fee basis Provision of the full spectrum of human resource management services offered on a commercial fee basis (includes managing disciplinary and grievance processes) Increasing the capacity of To merge the existing three services and provide an £10,000 the Housing Support improved value for money service. Need to reduce the risk Gateway associated with the private rented sector NOT providing a viable housing option. This change will help to strengthen the private sector and increase the level of homeless prevention.
    25. 25. Budget Saving – R & C Project title Summary Detail Feasible in 2013/14 Integrating the £7,500 homelessness out of hours service with Torfaen and building on the shared functionality that is starting to be created Developing a lodging and Potentially a big income opportunity as DWP is proposing to £9,000 shared services housing introduce management charge of £40 per person per week. scheme to provide a new At £7.00 income per week per place, for 50 units over a more cost efficient option complete year this could generate £18,200 pa. This is very for Housing and crude and assumes maximum usage and is not based on any Children‟s‟ Services modelling. TOTAL PLANNING, £106,500 PLACE AND ENTERPRISE
    26. 26. Budget Savings – R & CProject title Summary Detail Feasible in 2013/14Implementation of · integration of three service areas into one £120,000Highways, Waste andStreet-scene systemsreviewIncome generation review all service costs to draw out potential improved £143,000amongst various traded income and additional turnoverservices, grounds, trunkroads etc.PTU – reducing costs, Review major costs and develop private hire income. £75,000increasing income. Changes to special needs provision can create this and more with CYP involvement. Increased private hire allowed for.Refresh of staffing · reviewing progress with restructure £130,000structures and projectmanagementFleet acquisition and £400k in 12-13 revised in 13-14 to £100k (reprofiled leasing £150,000utilisation & radical replacements program)efficiencyWorking closely with town New jobs to deliver key services & enact statutory functions £10,000and community councils but with funding split between TC and MCC -around co-productionopportunities.
    27. 27. Budget Savings – R & CProject title Summary Detail Feasible in 2013/14Charging for green waste Probably achievable - not a full year of implementation and £420,000collection extending also need to think of administration costs. £420k is a bestscope of charging regime guess but despite concern over the eventual take up andfor green waste services hence accuracy of this budget estimate the value will be maximised as long as decision is made early.Investing in new H&S The authority currently has an obligation to fund legionella £30,000Monitoring Officer to monitoring at an approx. annual cost of 45k to 50k; asbestosensure compliance in all and fire monitoring at 25k. This works is currently carriedPublic Buildings. out by external contractors but would be more efficient if carried out by a dedicated internal resource as is the case with all our Education properties.Investment in appropriate Improved contract management in areas of significant £30,000Contract Management and spend could save revenue budgets. Requires audit ofContract Management exiting contract management awareness and competenceTraining together with investment in programme of training.Training of Property Removes need for additional COW role and saves salary £10,000Services staff to costsundertake COW (Clerk ofWorks) duties
    28. 28. Budget Saving – R & CProject title Summary Detail Feasible in 2013/14Low Interest Loans to An ideal situation for Monmouthshire to only consume the £10,000MCC Residents, energy it produces – this is a long way off but we could kickBusinesses & Staff to start this by making renewable technology more affordableinstall renewable to those that really need reduced energy bills. We couldtechnologies work with CIC‟s to cost the schemes and install and the lender would enter into a commercial loan with MCC at 2% above our borrowing rate (norm 3-4%). This would be a cheaper loan for borrowers and still make MCC an incomeCentralising energy This would allow the Energy team to utilise savings that it £10,000budgets in the makes to implement additional energy saving schemes e.g.Sustainability team voltage optimisers and install additional renewable technologies, thereby reducing our carbon output. It would also reduce the amount of administration and time lost pushing bills around the County.Sexton Service Withdraw the sexton service at Chepstow and LLanfoist and £30,000 provide a mobile service. May be some benefit from collaboration with Torfaen which has a team doing cemetery services.Out of Hours Services Review our out of hours services – duty officers and £25,000 overtime arrangements
    29. 29. Budget savings – R & C Project title Summary Detail Feasible in 2013/14 Greater flexibility to alter Area based Facilities Management (FM) being rolled out £25,000 service delivery and across public buildings,offices and schools. Offers service reprioritise area based FM provider opportunity to work with the clients to prioritise services service and costs and allow the contractor the flexibility to deliver Installation of fuel saving Fuel management system to cut fuel consumption - £35,000 technology to HGVs particulalry suitable for high consumption HGVs - given installation costs Charging for pest control Not uncommon amongst neighbouring authorities for this £45,000 service service to be provided at a charge. Not a statutory service so a further option would be to withdraw provision of the service and only provide information. Car park charging Increase in car park charges and fines by an average of 10% (rounded £100,000 to practical amounts). Charges have not been adjusted since 2007. TOTAL £1,398,000 INFRASTRUCTURE & SUSTAINABILITY
    30. 30. Budget Savings - CEO Project title Summary Detail Feasible in 2013/14?Investigate the integration of There is an option of combining £35,000libraries and One Stop Shops – customer services into a customer hubAbergavenny, Chepstow, Caldicot by merging one stop shops withand Monmouth libraries. This would free up the current premises in prime retail positionsRevising current charging regime Potential charging for dog foul sacks & £10,000for OSSs RADAR Keys.Digital meetings Purchase of tablet computers for £10,000 councillors and end of printing agenda and reports for meetingsReview of structures in CEO Details to be confirmed £100,000TOTAL CEOs £155,000
    31. 31. Budget Savings - Corporate Project title Summary Detail Feasible in 2013/14 Make better use of corporate A lot of work seems to go into setting £50,000 contracts. up these contracts and the opportunity to use WPC contracts but there are very few checks on budget managers to ensure that they are using these contracts. There needs to be some form of justification for not using these contracts with open communication to the procurement team. SEN Transport SEN transport costs vary according to £100,000 individual needs and can significant budget impact. Full review of SEN provision taking a holistic view, ensuring that transport implications are part of the decision making process Maximising use of Reduce travel allowance budget of £75,000 VC/conferencing to avoid travel £750,000 by 10% Treasury savings Through maximising internal borrowing £256,000 position, taking prudent view on capital slippage and on market rates Council tax base Estimated growth in council tax base for £626,192 2013/14 Fees and charges target Further income generation £50,000 TOTAL CORPORATE £1,157,192
    32. 32. Capital Strategy Final settlement – little change from provisional, 19.9% reduction 21st century schools priority Capital receipts Protect DFG, Access for all projects Reductions in Maintenance budgets for property and highways using service redesign where possible WG extra funding for highways stops in 2015/16
    33. 33. Capital budgets Indicative Indicative Indicative Indicative Budget Budget Budget Budget 2013/14 2014/15 2015/16 2016/17Strategic Accommodation Review 321,708 0 0 0Property Maintenance ** 2,411,597 2,098,090 1,929,278 1,929,278Asset Management Schemes 2,733,305 2,098,090 1,929,278 1,929,278Infrastructure maintenance 2,800,925 2,212,731 2,240,740 2,240,740WG funded highways schemes 1,810,000 1,810,000Infrastructure & Transport Schemes 4,610,925 4,022,731 2,240,740 2,240,740
    34. 34. Capital receipts Capital receipt projections Risksassociated with timing and value Supplement with capital investment reserve monies
    35. 35. Conclusions Tough but going to get tougher 2013/14 transition year – still a gap to be found Dynamic process, still updating/working on it Consultation process – on what is presented and what is missing, ideas to include for 2013/14 Ideas for future – not about incremental tinkering, need to think differently