2. Issues to cover
Context of public spending
MCC budget strategy
Specifics issues – pressures/savings
Capital
3. Welsh Local Government Finance –
Unprecedented Times
Figure 3.11. Planned cuts to spending on public services: has it been done
before in the UK? (Total spending on public services)
14
12
Annual Growth
Seven Year Moving Average
10
8
Percentage 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
7. 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%
8. The Challenge for non-protected services
If overall spending on services was to be
reduced by 18%, limiting the reductions in
overall spending to half that level (9%) in areas
that have so far been relatively protected –
social services, environmental services and
refuse, and education – would require cuts of
52% in spending on all other services. (This
equates to about £32 million)
9. 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
10. 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
11. 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).
12. 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
13. Facing the challenge
Agile working
Systems thinking
Creative Councils
Intrapreneurship
Review of earmarked reserves
14. 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)
15. Medium Term Financial Plan
The 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
16. 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
17. Specific Issues
Pressuresidentified
Savings proposals
Budget shortfalls have been managed
through redesign, transformation, income
generation, efficiency and system thinking
processes.
18. 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
19. 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
20. 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
21. 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
22. 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.
23. 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
24. Budget Saving – R & C
Project title Summary Detail Feasible in
2013/14
Increased commercial · Widening volunteer network scope £10,000
focus at Caldicot Castle
and Old Station
· Commercial management company as per new report
· New relationships with external funders
· Examination of longer-term ownership options
Re-training and · everyone trained to offer basic business support and £40,000
redeploying Adventa team development services commercially
members
Provision of commercial · end to end service provision £5,000
consultancy „start to
finish‟ planning service
25. 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.
26. 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
27. Budget Savings – R & C
Project title Summary Detail Feasible in
2013/14
Implementation of · integration of three service areas into one £120,000
Highways, Waste and
Street-scene systems
review
Income generation review all service costs to draw out potential improved £143,000
amongst various traded income and additional turnover
services, grounds, trunk
roads etc.
PTU – reducing costs, Review major costs and develop private hire income. £75,000
increasing 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 £130,000
structures and project
management
Fleet acquisition and £400k in 12-13 revised in 13-14 to £100k (reprofiled leasing £150,000
utilisation & radical replacements program)
efficiency
Working closely with town New jobs to deliver key services & enact statutory functions £10,000
and community councils but with funding split between TC and MCC -
around co-production
opportunities.
28. Budget Savings – R & C
Project title Summary Detail Feasible in
2013/14
Charging for green waste Probably achievable - not a full year of implementation and £420,000
collection extending also need to think of administration costs. £420k is a 'best
scope of charging regime guess' but despite concern over the eventual take up and
for 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 £30,000
Monitoring Officer to monitoring at an approx. annual cost of 45k to 50k; asbestos
ensure compliance in all and fire monitoring at 25k. This works is currently carried
Public 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 £30,000
Contract Management and spend could save revenue budgets. Requires audit of
Contract Management exiting contract management awareness and competence
Training together with investment in programme of training.
Training of Property Removes need for additional COW role and saves salary £10,000
Services staff to costs
undertake COW (Clerk of
Works) duties
29. Budget Saving – R & C
Project title Summary Detail Feasible in
2013/14
Low Interest Loans to An ideal situation for Monmouthshire to only consume the £10,000
MCC Residents, energy it produces – this is a long way off but we could kick
Businesses & Staff to start this by making renewable technology more affordable
install renewable to those that really need reduced energy bills. We could
technologies 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 income
Centralising energy This would allow the Energy team to utilise savings that it £10,000
budgets 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
30. 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 HGV's particulalry suitable for high consumption HGV's - 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
31. Budget Savings - CEO
Project title Summary Detail Feasible in 2013/14?
Investigate the integration of There is an option of combining £35,000
libraries and One Stop Shops – customer services into a customer hub
Abergavenny, Chepstow, Caldicot by merging one stop shops with
and Monmouth libraries. This would free up the current
premises in prime retail positions
Revising current charging regime Potential charging for dog foul sacks & £10,000
for OSSs RADAR Keys.
Digital meetings Purchase of tablet computers for £10,000
councillors and end of printing agenda
and reports for meetings
Review of structures in CEO Details to be confirmed £100,000
TOTAL CEOs £155,000
32. 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
33.
34. 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
36. Capital receipts
Capital receipt projections
Risksassociated with timing and value
Supplement with capital investment
reserve monies
37. 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
