1. Whole Place Community Budgets
Are Community Budgets the Silver Bullet...
22nd November 2012

2. Size of the challenge and gap to be bridged!
 Spending Review 2010 – CSR 10 resulted in unprecedented spending cuts
Year £bn % of GDP
2000-01 364.3 36.8
2001-02 389.3 37.7
2002-03 421.1 38.6
2003-04 455.5 39.4
2004-05 492.4 40.5
2005-06 524 41.2
2006-07 549.8 40.8
2007-08 583.1 41
2008-09 629.8 44
2009-10 670.1 47.7
2010-11 687.9 46.7
2011-12 687.6 44.5
2012-13 683.4 43.4
2013-14 720 43.6
2014-15 733.5 42.2
2015-16 744 40.5
2016-17 756.3 39
 Spending Review 2015 – the CSR is likely to be just as challenging...

3. What has the programme been doing?
 Testing how to better design local
services with a focus on individuals
and communities
 Working principle of co-design of
services
 Demonstrating how services should
be different not why
 Setting out potential efficiencies and
better outcomes
 Identifying how national Government
can help

4. What are the objectives of Community Budgets?
 The Government’s three key requirements for the Community Budgets
programme were:
 Replicable: create new models which can be implemented in other areas of the
country
 Scalable: design new systems that will work across a larger area or be applied
to a wider group of individuals
 Cashable: promote new ways of working that will remove inefficiencies and
yield genuine savings.
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5. What is the programme trying to achieve?
 Proof of concept for the co-design of services that is scalable, achievable and
realistic supported by senior officials in Government
 Significant cashable cost savings and far better outcomes for the public and the
system as a whole
 Incentives for wider Government to invest in the proposals and continued
negotiation with local partners to make the concepts a reality
 A change the current information sharing culture and data sharing protocols
between local and central Government
 The implementation of new models of reimbursement and funding across
Government

6. What can the programme actually achieve?
 A lot... as there is a significant appetite in Government for change and there is
further emphasis due to increasing fiscal pressures
 However, the savings identified by pilots are only likely to absorb the future
growth in demand rather than deliver substantive savings across the sector
 ... but the principles are scalable and could be implemented more widely across
the country
 ... but there are a number of local conditions and pre-requisites for success that
need to be in place for the outcomes to be achieved!
 and the proposals will need buy-in from Government as potential savings
proposed by the pilots are small in scale compared to the budgets in central
government departments

7. What are the headlines and potential for
savings?
 Greater Manchester Troubled Families estimated that the cost savings that
could be made across public services in GM is £ 224m and that £110m of the
£224m represents cashable savings.
 Cheshire West & Chester Safer Communities will release savings and avoid
future costs to public services of around £17.1m (gross) and £7.6m (net).
 Tri-Borough Health & Social Care could save around £66m per annum,
enabled by funding costs of £28 million.
 Essex Skills for Growth would result in reduced expenditure within Government
through employment support for post-16 and JSA claimants, by providers on
transaction costs and on benefits at DWP
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8. What next for Community Budgets?
What next for Community Budgets?
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9. What next for Community Budgets?
 Submission of business cases to Whitehall in October will not be the conclusion
or end point of the programme
 Further work required on the potential to implement concepts from pilots
 Alignment to larger Government programmes
 Issue of scalability of local solutions
 Work being undertaken on the potential for aggregation
 Key decisions are still to be taken by Whitehall

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