LONDON BOROUGH OF EALING

LONDON BOROUGH OF EALING

Town Hall, Ealing, W5 2BY

17th February 2014

MEMBERS OF THE COUNCIL OF THE LONDON BOROUGH OF EALING ARE HEREBY SUMMONED TO ATTEND A MEETING OF THE COUNCIL TO BE HELD AT THE TOWN HALL, EALING AT 7.00 PM ON TUESDAY, 25th FEBRUARY 2014 TO TRANSACT THE BUSINESS SET OUT BELOW.

Chief Executive

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A G E N D A

1. Urgent Matters

Any urgent matters arising since the despatch of the agenda that the Mayor has agreed should be considered at the meeting.

2. Apologies for Absence 3. Declarations of Interest

To note any declarations of interest made by members.

4. Matters to be Considered in Private

5. Minutes

To approve as a correct record the minutes of the meeting held on 28th January 2014 (attached).

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6. Mayor's Announcements 7. Petitions

A. Submitted Under Council and Committee Procedure Rule

9.1

1. From Members of the Public. 2. From Members of the Council.

B. Submitted Under the Local Democracy, Economic

Development and Construction Act 2009

8. Questions from Members of the Public

To consider any questions from members of the public, due notice having been received.

9. Questions from Members of the Council

To deal with questions of which notice has been given in accordance with Rule 10.1 of the Council and Committee Procedure Rules.

10. Opposition Business

11. Notice of Motions

12. Budget Strategy and Council Tax 2014/15 Director of Strategic Finance (attached)

13. Pay Policy Statement Assistant Director of Core Human Resources and Organisational Development (attached)

14. Appointments to Committees and Other Bodies

In the event of an emergency your attention is drawn to the evacuation instructions displayed on the wall by the entrance to the Council Chamber and Public Gallery. First aid advice will also be found here. Please note that the filming or recording of proceedings is not permitted unless prior approval has been obtained in accordance with the Council’s filming protocol.

Council Meeting 28th January 2014

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MINUTES OF COUNCIL MEETING At a Meeting of the Council of the London Borough of Ealing held on Tuesday, 28th January 2014 at 7:00 pm. PRESENT: The Mayor and Deputy Mayor, Councillors, Ahmed, Anand, Anderson, Anjum, Aslam, Bagha, Bakhai, Ball, Bell, Brooks, Byrne, Ann Chapman, Costello, Cowing, D. Crawford, K. Crawford, Joanna Dabrowska, Dennehy, Dhami, Sue Emment, Gallagher, Gordon, Isobel Grant, Eileen Harris, Gulaid, Johnson, Kang, Anita Kapoor, Kapoor, Kausar Midha, Mohan, Mahfouz, Manro, Malcolm, G Mann, R Mann, Millican, Murtagh, Noori, Padda, Diana Pagan, Popham, Potts, Roz Reece, Reen, Reeves, Rennie, Rose, Sabiers, Said, Stacey, Stafford, Steed, Summers, Sumner, Tailor, Taylor, Varma, L Wall, R Wall, Walker and Young. ABSENT: Councillors, Dheer, Iskanderian, Kaur Dheer, and Scott, (from whom apologies for absence were received).

1. Urgent Matters Councillor Popham rose under rule 12.3 to propose moving items 11.3, 11.4 and 11.5 to be taken before item 11.1. Councillor Millican seconded the proposal. After a vote the proposal was rejected.

2. Apologies for Absence Council noted the apologies

3. Declarations of Interest Councillor Mahfouz declared an interest in petition 7, a2 by virtue of his employment with A2 Dominion

4. Matters to be Considered in Private There were none

5. Minutes

The minutes of the meeting held on 10th December 2013 were approved.

6. Mayor's Announcements The Mayor stated he was delighted to welcome Aafreen Kutub and Amy Szott, Programme Associates from The Challenge Network. and Gina Maben, the new apprentice for Members Services. She will be working in the Mayor’s Office Monday’s and Friday’s, the rest of the week in Members Services.


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He thanked the councillors who had attended Holocaust Memorial Day on January 27th and the pupils from Hambrough, North, Tudor and Beaconsfield primary schools who attended to mark their respect. The Mayor also thanked councillors Diana Pagan and Nigel Sumner for an enjoyable Hanger Hill Ward reception on the previous Friday evening and for their generous donation to my charities. At this point Councillor Sumner rose to thank the Mayor for hosting the event and described how much the residents’ representatives had appreciated the invitation. The Mayor reminded Council that the annual Crayle Civic mass at St Mary’s Church in Acton would be held on Sunday 2nd February. He also announced that he hoped Council would support his next charity event - a Punjabi Comedy Night on Sunday 16th February at 6pm in the Victoria Hall. Knocker Bibi Kar – Under Her thumb! Finally he congratulated Councillor Midha on the birth of her second grandchild. 7. Petitions

A. Submitted Under Council and Committee Procedure Rule

9.1

1. From Members of the Public. a). From Dr Parvinder Singh Garcha of UB2

Dr Garcha presented a petition, signed by over 5,000 residents which stated

“We the undersigned wish to express our very strong concerns regarding the lack

of consultation with community organisations in the choosing of a preferred

provider for the development of the Norwood Hall playing fields. We strongly

implore all the councillors of Ealing Council and especially the members of the

scrutiny committee to urgently commence a review of:-

what consultation and community involvement has been undertaken by the

Council as a prelude to and in support of the decision to appoint the proposed

partner, including any steps taken as a result of the consultation and

li) whether the process followed for consultation with community groups

was open, fair, transparent and followed appropriate governance

procedures for the appointment of a proposed development partner.

We request that the entire process is restarted again for the best interest of the

whole community. All community stakeholders should be afforded an equal

opportunity through a transparent and fair selection procedure.


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Councillor Bell responded

“Thank you for this petition. I have found it useful to have meetings last week with the petitioners where we clarified some of the issues of concern that were raised tonight. The playing fields are owned by Ealing council and Ealing, Hammersmith and West London College. The purpose of both organisations ownership is to provide sporting, recreational and sports related activities. There is a legal management agreement that also outlines the usage of the site by community groups. The purpose of the management agreement is firstly to ensure the management remains in the joint ownership of the council and the college. Secondly to have a structured and fit for purpose arrangement with flexibility to support the council’s statutory duty as a local education authority. Thirdly to provide opportunities for the community to participate in sport and recreational activities to maintain a balanced and healthy lifestyle maximising usage during community core time and to generate income to support the costs of the site. Villiers high school has priority use during term times, college activities will fit around this usage as will use by Khalsa primary school. The legal agreement between the council, the college and Villiers high school outlines that there is a partnership board which is a panel of duly authorised representatives of the council, the college, the school and a community representative. Khalsa School are also represented on the board. This board is responsible for any decisions made in relation to the site. The site is currently used by Villiers school who are the only party to have permission to use the site. Khalsa School have the right to use the site for curriculum based activities however usage has not yet been put forward and agreed by the partnership board. The council and the college have entered into a partnership with Villiers high school and a core part of this agreement is that all usage of the site and operational decisions are taken by the partnership board. The first meeting of the board took place on 12/6/13 and a representative from Khalsa School was invited. A second meeting took place on 1/7/13 and again the Khalsa School were invited to the meeting. Southall Football club, a club known to the council and looking for playing pitches, were mentioned as a potential community user at the meeting. Southall FC has been developing as a sporting organisation over the past three years since the take over and relaunch of the club by the new management team. The club has been ambitious in its plans and has submitted plans for three other council sites over the past three years. These sites were offered on a lease basis as opposed to usage of a site as was proposed for Norwood Hall.


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There has been a clear progression in the development plans, expectations and overall vision of Southall FC which has been reflected in each of the bid documents received to date by the council. There have also been recommended by national governing bodies in their development as a club. Southall FC was invited to meet with the partnership board at the third meeting which was held on 18/7/13 for one agenda item only. Khalsa School were again invited and sent apologies and had the minutes circulated to them. The recommendation from council officers to the partnership board was to work with the club and explore the opportunity to develop community use of the Norwood Hall playing fields for community sport. It is important to note that this is not via a lease, not sole and exclusive usage nor a reduction of other community groups’ usage of the site as part of an overall site sport development plan. The board agreed to work with Southall FC as a preferred community partner. That does not preclude the Khalsa primary school or the Gudwhara, as a sponsor, presenting to the board its own community sports proposals and we would welcome any proposals that they have to give to the board. In summary the council suggested Southall FC to the partnership board as a potential community partner and user under the terms of the management agreement. They are not a redevelopment partner and the council do not consider that Southall FC potential involvement raises any public procurement issues. The fourth meeting of the board was held on 12/9/13 and there was a representative from the Khalsa School present at the meeting. No representatives of Southall FC were invited to the meeting. The board were updated with the progress in fundraising for a new pavilion for the site which would be led by the council and its major projects team in partnership with Southall FC. A cabinet report was received on 17/12/13 and that noted the partnership board decision to work with Southall FC as the preferred partner. Also in the minutes of that meeting it states clearly that I said we wanted to work positively with the Gudwhara and Khalsa primary school to look to involve them in community sports use on the site. May I take this opportunity to acknowledge and confirm that Dr Garcha is the point of contact for the future partnership board meetings. T The date of the next partnership board is to be confirmed and Dr Garcha is to be included as the Khalsa School representative, allowing for all future matters to be raised via these means


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b). From Miss Kashmir Kalsi of UB2

Miss Kalsi presented a petition signed by 87 residents which stated

“We the undersigned are petitioning against a very severe pest infestation in

Emerald Square UB2. This excessive infestation has contaminated our food, made

our children so sick they have been hospitalised. The smell in the houses is

unbearable making them unliveable. We ask the authority to investigate the

drainage system as a matter of urgency”.

Councillor Bell responded

You have our sincere sympathy for the circumstances you find yourself in. It’s completely intolerable that you are living in those kinds of conditions. The council has responded to the complaints that have been made in relation to rat, mice and squirrel infestation and our environmental health officers have met with A2 dominion and Thames water with a view to resolving your complaints. The council have also requested Thames water support local residents by undertaking pro-active baiting once a full survey and schedule of works is agreed for the estate. The council will insist on and monitor the works from the landowner to ensure that this situation is corrected. In addition I understand that some works have been carried out but a full solution has not yet been put in place. A meeting has been arranged for Friday with all relevant parties to visit the estate to organise an action plan. Compensation would have to be dealt with by A2 dominion but we noted your concerns and as a council we will express them to A2 dominion.

2. From Members of the Council.

a) Councillor Anita Kapoor presented a petition signed by 370 residents

stating We the undersigned support the need for a lift at Boston Manor Station to ensure that the underground service locally is accessible to all members of the community. We urge Ealing Council to put pressure on Transport for London to act and install step free access to the platform in the form of a lift as soon as possible”

8. Questions from Members of the Public There were none


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9. Questions from Members of the Council Question 1

Councillor Anderson asked The Leader of the Council

“Do you share our concerns that Greenford and Perivale along the A40 crime corridor are areas where residents are most likely to be burgled in this country, according to a recent Money Supermarket.com survey?”

Councillor Bell replied:

“Making Ealing Safer is our priority, and our mature partnership with the police ensures that we are well placed to deliver this ambition together. We should be proud to note that crime is at the lowest point in this borough in over ten years. Burglary itself has reduced by 15% in the last twelve months.

We are sorry for every victim of residential burglary and understand the distress that this causes individuals and families. We want to reduce that risk to our residents and that is why in the Greenford and Perivale area we have taken the following active steps:

Pro-active work as part of the Simple 2 Start approach. Based on historic intelligence (5 year crime figures) the Council has identified areas that have historically been vulnerable to burglary, an area that sits beside the A40. Within the targeted area, every home is visited and residents are offered a free home security audit, as well as crime prevention products. These targeted activities are supported by high visible policing and traffic stops of suspicious vehicles. Areas which have been targeted are provided with high-visibility signs indicating the area has been subject to crime prevention activities.

Our ever popular gating schemes continues to be well received across the borough, and we continue to fund resident led schemes, with seven new schemes being implemented in Greenford and Perivale since August 2013 and five more planned. We have pledged our continuing support to the gating scheme with further funding committed into the next year.

To reduce the possibility of repeat burglary, Safer Communities continue to work with SAFE Partnerships throughout the year to offer free home security upgrades to those vulnerable residents who have been victims of burglary.

The Council continues to work closely with local Residents Associations as well as Police and support agencies to identify vulnerable and elderly residents that would benefit from bespoke security measures, recently installing a large number of intercom systems across homes in Greenford to specifically tackle bogus callers in the area.

I am pleased to report that burglary is falling in these areas and in the period (April to November) we can report that residential burglary is down in the cluster with specific ward reductions for:

Greenford Broadway -13.9%

Greenford Green -12.6%

North Greenford -21.7%


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Perivale -38.5%

Northolt Mandeville -34.1%

Northolt West End -22.2%”

Councillors Anderson and Midha asked supplementary questions.

Question 2

Councillor Padda asked the Portfolio Holder for Transport & Environment

“How much has been spent on road resurfacing over the course of this administration?”

Councillor Mahfouz replied

“Over the lifetime of this administration we will have spent around £18.5m on road resurfacing and footway renewals on top of this we have spent additional funding on shopping parade improvements”.

Councillors Padda and Taylor asked supplementary questions.

Question 3

Councillor Potts asked The Leader of the Council

“Why does your administration have a record of submitting primarily Labour party template motions to this Council?”

Councillor Bell replied

“The Labour group always seeks to raise issues of concern for local residents in our motions. In contrast three of the five opposition motions this civic year, including this evening’s, have been praising the actions of the Government rather than talking about the borough”. Councillors Potts and Mohan asked supplementary questions. Question 4

Councillor Gordon asked the Portfolio Holder for Transport & Environment

“What impact will TFL fare rises have on commuters in the borough?”

Councillor Mahfouz replied

“At a time when residents are feeling the pinch, the mayor has yet again chosen to increase fares with many seeing their tickets going up by over 4%, which is an inflation busting increase. An annual travel card for a resident of Northolt will have


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increased by over £408 since the Mayor came to power. It will be more if you pay monthly”.

Councillors Gordon and Popham asked supplementary questions.

Question 5

Councillor Ball asked the Portfolio Holder for Finance & Performance

“What funding has been made by the DCLG to the London Borough of Ealing which could have been used to fund discretionary discounts to business ratepayers and what percentage of any relief made would be funded by central government and London Borough of Ealing respectively, in 2013/14?”

Councillor Johnson replied

“The Council is currently consulting on a policy for discretionary discounts to businesses, under the provisions of the Localism Act. The Government announced in the Autumn Statement on 5 December 2013 proposals for Business Rates Retail Relief. This will provide relief of up to £1,000 for all occupied retail properties with a rateable value of £50,000 or less in each of the years 2014-15 and 2015-16. This is something that the council will have to administer. There is a lot of guidance about what is and isn’t possible. The money we receive will come from both the government and the GLA. We currently understand we will get 20% form the GLA and 50% from the Government. The sorts of businesses that will be given relief will be florists, small shops, small cafes and small bars. We will be consulting the business partnership in February and a policy will come to cabinet in March.”

Councillors Ball and Murtagh asked supplementary questions. Question 6

Councillor Sumner asked The Leader of the Council

“Were you appalled to learn that Ealing was ranked the 2nd worst performing local authority in the country for food hygiene according to the well-respected consumer organisation Which?”


“Whilst we commend Which? for their consumer interest, we are disappointed that they took performance data out of context and presented this in a way that undermines the excellent work that this Council does to protect public health through a programme of food hygiene and food standards inspections.


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We are aware of the pressures and demands facing our food safety service, and this is why this Council resolved in November to provide additional resources to the food service in the next year. We are not shy from taking a robust approach to food safety and our dedicated team of food inspectors have acted to close over 19 businesses between April and December last year, as well as furthering complex food fraud investigations – all directed to protecting the consumer and public health. The team have also removed over 11,000 kilograms of potentially unsafe food from the food chain this year including fruit and vegetables with excessive levels of pesticides and other foods such as sandwiches, meats and fish for a variety of reasons including poor temperature control. With the support of the Food Standards Agency, practical coaching has been delivered to 28 poorly performing food businesses in the borough to help drive up standards. We are lucky to have such a flourishing food industry, with probably more approved food manufacturing businesses registered in Ealing than elsewhere, but it is no coincidence that a number of London local authorities are experiencing similar challenges as a result of population and economic growth. Our national role as the Primary Authority for Danone is one example of the span of influence our food inspectors have. Alongside this we have between 5 and 10 new food business registrations each week, all requiring surveillance by the Council. A close examination of the data used by Which? brings into question the reliability and accuracy of that reported by other Councils – for example a local authority with a high number of unrated food businesses cannot claim to have completed 100% of its due inspections, that is just not compliant with the Food Law Code of Practice. The Which? report also made no reference to the use of enforcement measures used by local authorities to secure business compliance. I therefore urge caution when interpreting this report. The food team have a clear service plan, and action plan, to improve performance and we will continue to review their resource allocation to ensure we are compliant with our responsibilities as a Food Authority.” Councillors Sumner and G. Mann asked supplementary questions. Question 7

Councillor K. Crawford asked The Leader of the Council

“What is the council doing to combat burglary in East Acton?”


East Acton has been targeted by the Council as part of the second Simple 2 Start location selected in the borough.

Based on 5 year crime figures the Council identified specific streets in East Acton that have historically been vulnerable to burglary, specifically those residential roads to the north of the A40 and west of Old Oak Common Lane. Within the targeted


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area, every home was visited and residents are offered a free home security audit, as well as crime prevention products including Traceable Liquid which we have pledged new funding for. These activities were supported by high visible policing and traffic stops of suspicious vehicles. High-visibility signs making clear the crime prevention activities that have been used have been installed across the selected area and, in total, over six hundred properties were visited over a two week period in December 2013.

Further targeted initiatives are planned in East Acton, specifically in the next two months.

Gating schemes continue to be well received across the borough, and we continue to fund resident led schemes, with three new schemes being implemented in East Acton since August 2013.

The Council continues to conduct Environmental Visual Audits of vulnerable localities and, in conjunction with our partners, offer advice to residents on simple measures they can take to reduce the risk of burglary.

Furthermore the Council work closely with local Residents Associations as well as Police and support agencies to identify vulnerable and elderly residents that would benefit from bespoke security measures.

In addition to this pro-active work, the Council continues to work with SAFE Partnerships throughout the year to offer free home security upgrades to any East Acton residents who have been victims of burglary.”

Councillors K. Crawford and Isobel Grant asked supplementary questions.

10. Opposition Business 10.1 The Government is helping residents with the cost of living

Councillor Reen moved the following motion

“Council welcomes news that inflation fell to the Bank of England's 2% target during

December as falling inflation eases the squeeze on wages. It also provides “a

welcome relief for hard-pressed households and businesses," per the Federation of

Small Businesses (FSB).

Council notes that although the economy is finally uplifting, many residents of the

Borough and beyond may still be concerned about the cost of living.

Council therefore welcomes a range of national measures to helping hard working

residents in Ealing to keep more money in their pockets. Measures such as:

Keeping the mortgage bills down, because just a 1% rise in rates would

increase the average family’s bill by £1,000.

The £25.2 M Council Tax Freeze Grant to enable Council Tax to be frozen

over the past four year, saving the average Ealing household £210 per year.


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Raising the personal allowance to £10,000 reducing the income tax bill for 25

million people across the country and lifting 2.4 million of the lowest earners

out of income tax altogether.

The continued fuel duty freeze to help motorist with the price of filling their

vehicles and prevent greater food price increases linked to transportation

costs. A motorist filling up once weekly will save £360 a year.

The Big London Energy Switch, which is already helping people to reduce

their fuel bills by an average of £200.

The reduction in the Green levies which account for a large proportion of

residents’ fuel bills, helping prices to fall by some £50 a year on average.

£650 increase in the Basic State Pension because of its triple lock.

Increasing free education and care for 3 and 4 years olds saving £400 off

childcare bills.

The Chancellors proposal for an above inflation rise in the national minimum

wage to restore it to its value before the financial crash in 2008.

Council thanks the Government for these important measures to help hardworking residents keep more of their money to spend on the things that matter to them and their families”. Councillor Millican seconded the motion

Councillor Ball moved an amendment to the motion Councillor Steed seconded the amendment

Councillor Johnson responded Councillor Ball summed up Councillor Reen summed up Council voted on the amendment which was lost. Council voted on the motion which was lost.

11. Notice of Motions 11.1 Support Neighbourhood Policing

Councillor Bell moved the following motion “Council notes the Stevens review of policing finding that community police is under threat from the Government’s austerity programme. Council further notes the Metropolitan Police’s decision to reduce neighbourhood teams as well as regularly calling them away from neighbourhood duties to cover other areas. Council believes that community policing increases trust in the Police and has had a positive impact on the Police’s reputation with Ealing residents. Council regrets the Police’s drift towards reactive policing under this Government. Council supports Shadow Home Secretary Yvette Cooper’s desire to implement the recommendation of the Steven’s review.


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Council supports a commitment to neighbourhood policing as the building block of fair and effective policing”.

Councillor Summers seconded the motion Councillor Isobel Grant moved an amendment Councillor Taylor seconded the amendment

Councillor Bakhai moved an amendment Councillor Ball seconded the amendment

Councillor Anand responded Councillor Stafford responded. Councillor Gallagher responded. Councillor Millican responded. Councillor Young responded. Councillor Bakhai summed up Councillor Isobel Grant summed up Councillor Bell summed up and accepted Councillor Bakhai’s amendment. After a vote Councillor Grant’s amendment was lost The motion, as amended, was agreed. It read “Council notes the Stevens review of policing finding that community police is under threat from the Government’s austerity programme. Council further notes the Mayor of London's decision to reduce neighbourhood teams as well as regularly calling them away from neighbourhood duties to cover other areas. Council believes that community policing increases trust in the Police and has had a positive impact on the Police’s reputation with Ealing residents. Council regrets the Police’s drift towards reactive policing under this Mayor Council supports a commitment to neighbourhood policing as the building block of fair and effective policing”. 11.2 Rising Energy Prices Councillor Tailor moved the following motion “The council notes that all the big six energy companies have now announced price rises which is increasing pressure on families this winter especially as living standards fall. Council notes that these prices rises within weeks of each other mean that competition in this industry is failing consumers. The council notes that the Government’s response to these prices increases is to tell people that they should put on a jumper. Council welcomes Ed Milliband’s policy of freezing energy prices as a first step in reforming the energy industry”. At this point the Mayor reminded Council of the time and the guillotine fell.


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Councillor Gulaid seconded the motion Councillor Reen moved an amendment Councillor Isobel Grant seconded the amendment After a vote Councillor Reen’s amendment was lost After a vote the motion was agreed 11.3 CPZ Charges must not exceed costs

Councillor Taylor moved the following motion “This Council reconfirms the decision of Cabinet on Tuesday 5th July 2011 to accept recommendation 1 from the Controlled Parking Zones Specialist Scrutiny Panel 2010/11, namely: “That the Council, when considering the financing of CPZs, should seek to do the following: (a) minimise the cost base associated with CPZs; and (b) ensure that permit charges are set at levels which recover these costs, but do not exceed them.” Furthermore, this Council will test the figures in detail at a future meeting of the Overview and Scrutiny Committee”. Councillor Young seconded the motion

Councillor Malcolm moved an amendment Councillor Rose seconded the amendment After a vote Councillor Malcolm’s amendment was lost. After a vote the motion was agreed 11.4 Street Drinking - More Enforcement of the Controlled Drinking Zones Councillor Isobel Grant moved the following motion “This Council notes that the presence of street drinkers often causes real fear and concern. The anti-social behaviour, noise, litter and general nuisance associated with street drinkers can adversely affect the quality of life for other residents and users of our streets and parks. This Council therefore pledges to use its resources to work more closely with the Police and the voluntary sector to identify drinking hot spots and rigorously enforce the Borough’s Controlled Drinking Zones in an effort to end the street drinking culture.” Councillor Ashok Kapoor seconded the motion

Councillor K Crawford moved an amendment Councillor Anand seconded the amendment


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Councillor Bakhai moved an amendment Councillor Rose seconded the amendment After a vote Councillor Bakhai’s amendment was lost After a vote Councillor K. Crawford’s amendment was agreed Council voted on the amended motion which was agreed unanimously. The motion read This Council notes that the presence of street drinkers often causes real fear and concern. The anti-social behaviour, noise, litter and general nuisance associated with street drinkers can adversely affect the quality of life for other residents and users of our streets and parks. This Council therefore pledges to use its resources to continue to work more closely with the Police and the voluntary sector to identify drinking hot spots and rigorously enforce the Borough’s Controlled Drinking Zones in an effort to end the street drinking culture.” 11.5 Leader of the Council Must Be Above Reproach Councillor Millican moved the following motion “This Council notes with regret that the Leader of the Council used his office to facilitate an introductory planning meeting for the Labour GLA Member with senior Council officers. This Council believes that the Leader’s action has damaged the credibility and reputation of the Council’s Planning Department. This Council reminds the Leader of the Council that the weight of his office requires his actions to be above reproach”. Councillor Popham seconded the motion Councillor Malcolm moved an amendment Councillor Ball seconded the amendment After a vote Councillor Malcolm’s amendment was lost After a vote the motion was lost. 11.6 High Street Gambling Councillor Ball moved the following “Council notes: - The increase in the number of betting shops in the Borough since the previous Labour Government passed the Gambling Act 2005 which included the removal of the need for operators to prove unmet demand. - That betting shops are currently in the same use class as banks and building societies, allowing them to be opened with no planning consent being required for change of use in some cases - That the further relaxation of change of use from retail shops in the Growth and Infrastructure Bill risks making the situation worse


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- With concern the comments of Conservative Planning Minister Nick Bowles in a letter to Ladbrokes regarding betting shop blocking manoeuvres by councils as ‘a problem’. - That the majority of the revenue generated from betting shops is now from high reward gambling machines rather than from traditional betting on sporting events - The Portas Review into the future of High Streets describes gaming outlets as a 'blight on the high street', and that their proliferation is creating unsightly gambling 'clusters' on struggling retail hotspots - That Newham Council's refusal to allow a further betting shop application in a street with an existing proliferation, which was seen as a test case, was overturned on appeal. - That in many areas, including Southall, crime and anti-social disorder has been associated with a proliferation of betting shops Council believes that local councillors should be empowered to decide whether or not to give approval to additional gambling venues in their community. Council therefore requests the Director of Regeneration and Housing to investigate the introduction of Article 4 directions requiring planning permission to be required for change of use to betting shops as pioneered by Southwark Council Council further requests the Chief Executive to write to appropriate ministers advocating: - Betting shops to be put in a new separate planning use class, allowing all local authority planning committees to control them - The Gambling Act to be amended to allow council licensing committees to take into account the cumulative impact of a proliferation of gambling activities when considering applications” Councillor Rose seconded the motion Councillor Anita Kapoor moved an amendment Councillor Eileen Harris seconded the amendment Councillor R Mann moved an amendment Councillor G. Mann seconded the amendment After a vote Councillor R. Mann’s amendment was agreed. After a vote the motion, as amended, was agreed. It read “Council notes: The increase in the number of betting shops in the Borough since the previous Labour Government passed the Gambling Act 2005 which included the removal of the need for operators to prove unmet demand. Council notes that the Tory-led Government have done nothing about this issue however Ed Milliband has promised action including greater regulation of FOBTs.


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That betting shops are currently in the same use class as banks and building societies, allowing them to be opened with no planning consent being required for change of use in some cases That the further relaxation of change of use from retail shops in the Growth and Infrastructure Bill risks making the situation worse With concern the comments of Conservative Planning Minister Nick Bowles in a letter to Ladbrokes regarding betting shop blocking manoeuvres by councils as ‘a problem’. That the majority of the revenue generated from betting shops is now from high reward gambling machines rather than from traditional betting on sporting events The Portas Review into the future of High Streets describes gaming outlets as a 'blight on the high street', and that their proliferation is creating unsightly gambling 'clusters' on struggling retail hotspots That Newham Council's refusal to allow a further betting shop application in a street with an existing proliferation, which was seen as a test case, was overturned on appeal. That in many areas, including Southall, crime and anti-social disorder has been associated with a proliferation of betting shops Council believes that local councillors should be empowered to decide whether or not to give approval to additional gambling venues in their community. Council therefore requests that the council makes use of all its power to prevent the proliferation of betting shops and welcomes Labour proposals in this area.” Item 11.7 High Court decision – “Benjamin Dennehy vs. Ealing Council” Councillor Malcolm moved the following motion Councillor Rose seconded the motion.

“Ealing Council notes the recent High Court decision of Benjamin Dennehy vs. Ealing Council and the legal comment stated: "…I am satisfied that the tone, style and choice of wording in the post was written in such a way that it did cause offence to some residents and councillor Dennehy could reasonably have expected that to be the case had he reflected on the particular way in which he chose to raise the issues.” The Council notes and supports the actions of the Council’s Legal Services team to press robustly for the full recovery of the Council's legal costs in this matter from Cllr Dennehy." After a vote the motion was agreed.


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12. Appointments to Committees and Other Bodies

There were none. The meeting finished at 21.34. The next meeting of the Council is on 25th February at 19.00

Page 1

Report for:

Section 1.01 DECISION

Item Number: 12

Contains Confidential or

Exempt Information

NO

Title BUDGET STRATEGY AND COUNCIL TAX 2014/15

Responsible Officer(s) Ian O’Donnell, Executive Director Corporate Resources

Maria G Christofi, Director of Finance

Authors

Nigel Watson, Assistant Director of Corporate Finance

Tel: 0208 825 6403

Matthew Bunyon, Head of Financial Planning and Investments

Tel. 0208 825 9993

Sonia Khan, Financial Strategy Manager

Tel 020 8825 6949

Portfolio Finance and Performance – Cllr Yvonne Johnson

For Consideration By Council

Date to be Considered 25 February 2014

Implementation Date if

Not Called In Not applicable: Council decision

Affected Wards All

Area Committees All

Keywords/Index

Budget, MTFS, grant settlement, financial strategy, GLA

precept, risk, growth, savings, capital programme, council tax

freeze.

Fraserk

Cross-Out

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INDEX TO REPORT: BUDGET STRATEGY 2014/15

1. Recommendations

2. Reason for Decision and Options Considered

3. Budget Overview

4. Budget planning assumptions review

5. Budgets and business plans 2014/15 to 2016/17 (including savings and growth

proposals)

6. Legal

7. Value For Money (VFM)

8. Sustainability Impact Assessment

9. Risk management

10. Community Safety

11. Links to the 5 priorities of the Borough

12. Equalities, Human Rights and Community Cohesion

13. Staffing/Workforce and Accommodation implications

14. Property and Assets

15. Consultation

16. Timetable for implementation

17. Appendices

18. Background Information

Purpose of Report

To seek Member approval of all Revenue budget proposals and the Capital programme

previously agreed at the Cabinet meetings on 18 June 2013, 26 November 2013 and 18

February 2014. It presents the refreshed Medium Term Financial Strategy for approval

and provides an update on the economic climate and funding position following the Local

Government finance settlement for Ealing, which saw a reduction in core funding of

£17.426m in 2014/15. The report also sets out the Dedicated Schools Grant and

Parking Places Reserve Account for 2014/15.

The report includes the legislative requirement for the Chief Financial Officer to report

formally on the robustness of estimates, the adequacy of the reserves and on the risks in

the Council’s budget strategy. The report also includes recommendations on prudential

borrowing for the Council to approve in order to comply with statutory requirements.

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1. Recommendations:

It is recommended that Council:

Revenue Budget and Medium Term Financial Strategy

1.1 Considers and approves the refreshed Medium Term Financial Strategy (MTFS) for 2014/15 –

2016/17 (Appendix 1);

1.2 Considers the advice of the Executive Director of Corporate Resources on the levels of reserves

and robustness of estimates in setting the budget as required by Section 25 of the Local

Government Act 2003 (para 5.12);

1.3 Notes the financial risks and pressures set out in para 4.6 and section 4;

1.4 Notes the savings of £8.920m and the growth of £0.201m already approved by Cabinet through

the budget review processes for the period of the refreshed MTFS, 2014/15 – 2016/17 as set out

in para 5.4 and 5.5 (see appendix 2b and 2c);

1.5 Approves the inclusion of additional budget provision of £1m in 2016/17 for Adults Social Care for

demographic and demand pressures, to be held centrally and vired in-year to the service (para

5.4.4);

1.6 Approves £0.130m savings in Regeneration and Housing in 2014/15 and £0.353m savings in

Environment and Customer Services for 2015/16 (para 5.5.2 & 5.5.3);

1.7 Approves the one-off replacement saving of £0.070m in respect of the proposal in development

in Policy and Performance in 2014/15 and approves the reprofiling of this proposal in

development from 2014/15 to 2015/16 (para 5.5.4);

1.8 Approves the one-off replacement saving of £0.150m in respect of the proposal in development in

Property and Regeneration in 2014/15 and approves the reprofile of this proposal in development

from 2014/15 to 2015/16 (para 5.5.5);

1.9 Notes the proposals in development of £0.280m in 2015/16, subject to approval of the reprofile as

per recommendations 1.7 and 1.8 (Para 5.5.6 and Appendix 3);

1.10 Approves the draft Schools budget of £287.367m and agrees that any changes to the budget

reasonably required as a result of the final 2014/15 DSG settlement are delegated for decision to

the Executive Director of Children and Adults Service following consultation with the Executive

Director of Corporate Resources (para 5.9);

1.11 Notes the MTFS financial projections for 2015/16 and 2016/17 (para 3.2.10 and Appendix 1);

1.12 Notes that the General Fund balance is scheduled to remain the same at £15.4m for 2014/15 and

notes the forecast levels of earmarked reserves as set out in Appendix 13 (para 5.14);

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1.13 Notes that funding within the draft revenue budget includes the Government’s offer of a council

tax freeze grant for 2014/15 and agrees that this offer should be accepted (see para 4.3);

1.14 Approves the proposed use of the Parking Places Reserve Account set out in Appendix 8 (see

para 5.7);

1.15 Notes the fees and charges set out in Appendix 12 (see para 5.8);

Treasury Management and Pension Fund

1.16 Approves the Treasury Management Strategy and associated Prudential Indicators as set out in

Appendix 5 (see para 5.23);

1.17 Notes that the Pension Fund cash is also managed in accordance with the Treasury

Management strategy;

1.18 Approves the Treasury Management Policy Statement attached as Annexe 1 to Appendix 5 (see

para 5.23);

1.19 Approves the MRP policy outlined in section 4 of appendix 5 (see para 5.23);

1.20 Notes that as approved by Full Council last year and following the implementation of the self-

financing regime from 1 April 2012, the Council is now operating a dual pool methodology for the

management of GF and HRA debt;

1.21 Notes the Director of Finance will implement the treasury strategy under existing officer delegated

powers;

Capital Programme 2015/16 to 2017/18

1.22 Approves the revised capital programme of £678.344m, set out in Table 23 and Appendix 11

including the new capital projects recommended for inclusion set out in Table 22 and detailed in

Appendices 6a, 6b and 7, the revised capital strategy set out in Appendix 9, the disposals

programme set out in Appendix 10 and the removal of capital savings from the capital budget as

set out in paragraph 5.17;

1.23 Notes that the inclusion of a budget for a project in the capital programme does not imply

automatic approval for implementation and is subject to a detailed report to Cabinet for formal

approval for all projects over £0.250m and the relevant director (following consultation with the

Finance Strategy Group and the portfolio holder) for projects under £0.250m;

Council Tax and Business Rates

1.24 Notes the provisional GLA Band D precept of £299.00 for 2014/15, a 1.3% reduction compared to

the 2013/14 GLA precept (para 5.24);

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1.25 Notes that the Executive Director of Corporate Resources calculated under delegated authority

on 16 January 2014 the amount of 100,514.29 as the Council Tax Base, (the number of

properties in Bands A-H in the Borough, expressed as an equivalent number of Band D units for

the year 2013/14) in accordance with regulation 3 of the Local Authorities (Calculation of Council

Tax Base) Regulations 1992 (as amended) made under Section 33(5) and 34(4) of the Local

Government Finance Act 1992 (para 5.24);

1.26 Notes the estimated surplus of £3,215,000 on the Collection Fund as at 31 March 2014, of which

£2,500,000 is the Ealing share available to support the 2014/15 Budget (para 5.24.2);

1.27 Notes the Council’s share of the business rates income forecast for 2014/15 at £41,161,355

agreed under delegated authority by the Executive Director of Corporate Resources (see para

5.24).

1.28 Considers and approves a net General Fund budget of £262.711m including a contingency of

£3m as set out in appendix 14.

1.29 Considers and approves a Council Tax requirement for the Council’s own purposes of

£106,537,715 a basic amount of Council Tax for Ealing’s Services as for 2014/15 at Band D of

£1,059.93; a 0% tax increase. This gives an overall Band D Council Tax of £1,358.93 including

the GLA precept.

1.30 Agrees the calculations as set out below for 2014/15 that have been prepared in accordance with

Sections 31A and 31B of the amended Local Government Finance Act (LGFA) 1992:

Table 1: Section 31A (LGFA 1992 - amended) Calculation

(A) Aggregate of the amounts which the Council estimates for the items set out

in Section 31A (2) (a) to (f) of the LGFA 1992 £1,038,089,000

(B) Aggregate of the amounts which the Council estimates for the items set out

in Section 31A (3) (a) to (d) of the LGFA 1992 £931,551,285

(C)

Calculation of the Council Tax requirement under section 31A (4), being the

amount by which the sum aggregated at (A) (above) exceeds the aggregate

of (B) (above).

£106,537,715

(A) Is, effectively, gross expenditure and transfers to reserves.

(B) Is, effectively, gross income and transfers from reserves. This includes RSG and

surpluses transferred from the Collection Fund.

(C) Is the Council Tax requirement.

It is anticipated that at the end of March 2014, Ealing Council’s share of the Collection Fund

surplus is forecast as £2.500m. This surplus has been accounted for in the calculation of items

set out in Section 31A (labelled (B) in table 1 above).

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The calculation of the basic amount of Council Tax required is as follows, calculated by dividing

the Council Tax requirement by the Council Tax base for 2014/15 (referred to as Items R and T

respectively, in Section 31B of the LGFA 1992 (amended)):

Table 2: Section 31B (LGFA 1992 - amended) Calculation

(C) LB Ealing’s Council Tax requirement - (calculation shown in table 1) £106,537,715

(D) Council Tax base for 2014/15 100,514.29

(E) Tax per Band D Property £1,059.93

1.34 To agree the calculation made in accordance with Section 36 of the Local Government Finance

Act 1992, the following amounts for Ealing's services in 2014/15 (see table 3). These being the

amounts given by multiplying the amount shown as ‘Tax per Band D Property’ (Table 2 above)

by the number which, in the proportion set out in Section 5(1) of the Act, is applicable to

dwellings listed in a particular valuation band divided by the number which in that proportion is

applicable to dwellings listed in valuation band D, as the amounts to be taken into account for

the year in respect of categories of dwellings listed in different valuation bands;

Table 3: Ealing Council tax by band of property

A B C D E F G H

£ 706.62 824.39 942.16 1,059.93 1,295.47 1,531.01 1,766.55 2,119.86

1.35 To note that for 2014/15 the GLA, the major Precepting Authority, has stated the following

amounts of precepts issued to the Council, in accordance with Section 40 of the Local

Government Finance Act 1992, for each of the categories of dwellings shown below:

Table 4: GLA precept by band of property

A B C D E F G H

£ 199.33 232.56 265.78 299.00 365.44 431.89 498.33 598.00

Having calculated the aggregate in each case of the amounts in recommendations (20) and

(21) above, in accordance with Section 30(2) of the Local Government Finance Act 1992,

approve the following amounts to be set as the amounts of Council Tax for 2014/15 for each of

the categories of dwellings shown below:

Table 5: Total Council tax by band of property (Ealing council tax and GLA precept)

A B C D E F G H

£ 905.95 1,056.95 1,207.94 1,358.93 1,660.91 1,962.90 2,264.88 2,717.86

1.36 To determine that with reference to principles for 2013/14 determined by the Secretary of State

under Section 52ZB Local Government Finance Act 1992 the level of Council Tax for Ealing is

not excessive such that no referendum is required (para 5.28).

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2 Reason for Decision and Options Considered

2.1 The main purpose of this report is to enable Full Council to finalise the budget and set the

council tax for 2014/15.

3 Budget overview

3.1 Budget Review Process

3.1.1 This report is the final budget report to enable Members to consider and set the budget

and Council tax at full Council on 25 February 2014. It brings together a number of

significant issues for Member decision.

3.1.2 On the 26 November 2013 and 18 February 2014, the Cabinet received reports on the

overall financial situation of the Council and the developing budget proposals for 2014/15.

3.1.3 On 18 June 2013, Cabinet approved a £2m savings target for the 2014/15 budget review

process. This is in addition to the 2014/15 element of the £85m savings target set since

2010/11 (see table 6 for summary).

Table 6: Summary savings targets since 2010/11

Year Status Proposals to date 2014/15 Budget Review

£m £m

2010/11 Achieved 0.522 -

2011/12 Achieved 22.366 -

2012/13 Achieved 30.587 -

2013/14 Forecast 23.883 -

2014/15 Forecast 6.630 2.000

2015/16 Forecast 0.476 -

Total 84.464 2.000

3.1.4 The budget for 2014/15 has been prepared on the basis of the principles and policies set out

in the MTFS (para 4.9 and Appendix 1), namely that:

Resources are prioritised to align spending plans with the Council’s vision and strategic

objectives and resident priorities

Council tax is frozen again in line with the administration’s pledge

Delivery of value for money to local taxpayers

A balanced budget position is maintained

Capital investment is affordable, prudent and sustainable and directed towards residents

priorities

Risks are identified and mitigated

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3.2 Financial outlook and context

3.2.1 The draft MTFS, covering the 3-year period 2014/15 – 2016/17, is presented in appendix 1.

It reflects the impact upon Ealing of Central Government funding decisions, analysis of

advice from various relevant organisations (e.g. levying bodies) and impacts of the national

and local economic context.

3.2.2 The 2010 Government Spending Review saw a 28% reduction in revenue funding for the

general fund from 2011/12 – 2014/15. Despite the cuts and changes to the funding

landscape through the localisation of business rates and council tax support localisation in

2013, the Council has continued to make good progress throughout this financial year

towards delivering the approved savings, and the forecast is that services will be delivered

within budget by the end of the year.

3.2.3 The 2013/14 MTFS was published in February 2013. Since then, further cuts were

announced to the Revenue Support Grant in the Government’s various budget statements

during the year, which have been factored into the MTFS. This includes reductions of 10% in

2015/16 announced in the 2013 June Spending Review. Thus, although the 2014/15 final

settlement announced by Government on 6 February 2014 was significantly lower than the

MTFS previously published, it was broadly in line with the latest internal forecasts developed

by officers.

3.2.4 The draft MTFS also factors in the Government’s increase to the business rates multiplier of

2% in 2014/15 compared to 2013/14, rather than the 3.2% originally used by Government

(i.e. RPI forecast in 2014/15). This will not have an impact on the MTFS overall as

Government will compensate local authorities for this through a separate, direct grant. This

is estimated to be £0.824m for Ealing in 2014/15.

3.2.5 The Chancellor of the Exchequer's Autumn Statement was published in December 2013.

This set out the global economic context within which the UK is operating, and revised the

forecast for growth in the UK economy upwards.

3.2.6 Though local government was excluded from further funding reductions in the 2013 Autumn

Statement, Councils were expected to freeze Council tax. The 2014/15 Council Tax Freeze

grant had been announced in the 2013 June Spending Review and was equivalent to a 1%

increase in Council Tax compared to 2013/14 and available for 2 years (£1.277m per year for

Ealing). A further one-year grant, also equivalent to a 1% increase, was made available for

2015/16.

3.2.7 The 2014/15 final settlement included the baselining of the 2013/14 Council Tax Freeze

grant. This means £1.265m will be permanently part of Ealing’s base funding, as part of the

Revenue Support Grant. (RSG). The level of the 2013/14 freeze grant is to be protected for

2015/16 but may be subject to the level of cuts the Government makes to RSG in the future.

3.2.8 In the 2012 Autumn Statement, the Government announced that the austerity programme

would be extended to 2017/18. Consequently, even though local government was not

burdened with further cuts since the previous round in the recent announcements, it is

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anticipated that Local Government funding is likely to fall until at least 2017/18 and the

Council continues to face the prospect of having to deliver more savings in the future.

3.2.9 More details of the economic environment facing the Council are set out in the Council’s

MTFS, as refreshed in its annual review and as set out in Appendix 1, including the

continuing pressures facing the Council over the medium-term and the need to find further

significant levels of savings. The MTFS document includes a glossary, setting out common

terms used in the budget process.

3.2.10 The overall financial situation continues to present the Council with significant challenges

and is expected to do so for a number of years. The Council’s medium term financial

projections show a continuing reduction in Central Government support and savings

requirements of £32.466m in 2015/16 and £26.677m in 2016/17. The on-going budget has

increasing costs relating to inflation and service pressures as well as the on-going loss of

Government grants. The Council therefore has to continue to plan for several years of

financial restraint. The future year’s financial projections shown in the MTFS in appendix 1

include ongoing forecast reductions in Government funding which are expected to continue

until at least the end of the decade.

3.3 Investing in Council priorities

3.3.1 The budget process is designed to ensure that resources are aligned with council priorities

and the budget being set for 2014/15 has been prepared in line with the administration’s

principles for the budget process set out as follows:

(i) We must be responsible and balance our budget and to do this we must find savings from

within our budgets. Whilst doing this we promise to prioritise the following principles:

(ii) We will make every effort to protect elderly, disabled, children and young people who are

the most vulnerable residents of the borough;

(iii) We will make every effort to protect front line services by seeking to cut out waste, we will

also seek to share services and share procurement;

(iv) We will consult on difficult decisions

(v) We will seek to mitigate the impact any savings will have on employment within the

council and the borough by reducing the use of agency staff and contractors and offering

voluntary redundancy to our staff.

(vi) We will seek to distribute any cuts as equally as possible so that no one group has to

unfairly bear the burden.

3.3.2 The role of the Council’s financial planning process is to support the Council’s five priorities

that respond to residents' concerns and to ensure the delivery of high quality, cost effective

services.

Make Ealing Safer

Secure our Public Services

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Secure Jobs and Homes

Make Ealing Cleaner

Deliver Value for Money

3.3.3 The financial challenge still remains significant over the medium term. The Council faces a

number of financial uncertainties that could affect the Council's financial position over the

medium term, notably concerning the level of government grant funding.

3.3.4 The capital programme has been refreshed to take account of Member priorities, the latest

information on existing projects and the latest estimate of resources, including prudential

borrowing

3.3.5 The table below sets out significant new planned capital investments during the period

covered by the MTFS. The investments are funded from borrowing, partnership funding and

Government grants.

Table 7: Key new Capital Investments

2014/15-2017/18

£m

Primary Schools expansion addition to the existing programme 40.0

Ward Forum capital budget addition 0.7

Infrastructure Renewal Programme carriageways and footways 4.0

Gunnersbury Park Phase 3 Sports Hub 3.7

Match Funding for Sports Development Projects 0.8

Delivery of Southall Big Plan 9.2

Gating Programme 0.9

Disabled Facilities Grant 3.0

Total 62.3

4 Budget planning assumptions review

4.1 Policy framework – the context for the budget decisions for 2014/15 and beyond

4.1.1 The context in which the Council’s Budget is set is influenced by:

a. The Council’s Vision, Corporate Plan and Strategic Priorities;

b. The Council’s Medium Term Financial Strategy (MTFS);

c. Central Government policies, including legislative change, which may require additional

expenditure in areas that would not otherwise be Council priorities;

d. External drivers – e.g. demand for services, inflationary pressures, change in interest

rates etc.

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4.1.2 Maintaining the Council’s financial resilience ensures the effective delivery of services during

a difficult economic period and significantly reduced funding.

Major factors influencing the Budget

4.2 Settlement Funding Allocation (SFA)

4.2.1 The Settlement Funding Allocation (SFA) is a key driver in the setting of the Council’s

budget.

4.2.2 2013/14 was the first year of the new local government financing system, when local

authorities were given a ‘start-up funding assessment’ (SUFA) under the new Business

Rates Retention Scheme, whereby Council’s retain 30% of their business rates income. The

SUFA set out the Council’s Business Rates baseline, Top-up grant (or tariff) and Revenue

Support Grant (RSG). The 2013/14 financial assessment was confirmed on 4 February

2013, along with a provisional settlement for 2014/15.

4.2.3 The 2013/14 SUFA included the rolling-in of several specific grants (e.g. the Early

Intervention grant and the Council Tax Support Grant) into the RSG. It also included the

‘rolling-out’ of the Education Services Grant which became a specific grant. These were

reported in the 2013/14 budget setting report to Council on 26 February 2013.

4.2.4 On 18 December 2013, the Government announced the provisional 2014/15 settlement

updated and including the Government announcements made during the year. The funding

has been renamed the ‘Settlement Funding Allocation’ (SFA). The announcement also

presented an illustrative settlement for 2015/16 (see table 8). The 2014/15 settlement was

confirmed on 6 February 2014.

4.2.5 The 2013/14 Council Tax Freeze grant of £1.265m was rolled into the RSG in the 2014/15

SFA. Ministers have indicated that it will now be part of Council’s permanent funding, which

removes a cliff-edge from the Council’s forecast position for 2015/16. Therefore, to show a

like-for-like comparison, an adjusted SFA has been presented in table 8.

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Table 8: Settlement Funding Allocation (2013/14 – 2015/16)

4.2.6 There is a 10.2% reduction in funding between 2013/14 and 2014/15. This includes the

previously forecast reduction of 7.6% and 2.0% announced in the 2010 Spending Review

and 2012 Autumn Statement respectively. These were factored into the MTFS published last

year in February 2013. The figures now also include a further 1.0% reduction announced by

Government in the 2013 Budget.

4.2.7 For 2015/16, the SFA is significantly lower than the figures published in the February 2013

MTFS, as during the year Government announced a reduction of 10% to RSG in the June

2013 Spending Review, which is now incorporated into the illustrative 2015/16 SFA.

4.2.8 A significant risk to Ealing is its reliance on needs-based RSG, which in 2014/15 equals 55%

of its total core funding, and in 2015/16 equals 46%. This is a significant risk as the

Government may further reduce the RSG in future Spending Reviews. From 2014/15, the

Council Tax Support Grant is also fully absorbed into the RSG, so will be subject to the same

cuts as general RSG in future years.

4.2.9 Forecasting budget resources for 2016/17 is difficult as there has been little guidance from

Central Government. However, an analysis of work done using London Councils on

Treasury data indicates a further possible reduction of 14% to RSG, which is factored into

the current MTFS (see appendix 1).

4.3 Council Tax Freeze Grant

4.3.1 The Council Tax Freeze Grant (CTFG) was first announced in 2011/12. Every year since

then, the Government has given Councils who freeze their Council tax a grant which is

Actual adjusted Final Illustrative

2013/14 2014/15 2015/16

£m £m £m

Revenue Support Grant 101.248 83.796 59.958

Adjustment for Council Tax Freeze Grant 1.265 - -

Revenue Support Grant 102.513 83.796 59.958

Business Rates Baseline 39.190 39.954 41.056

Business Rates – Top-Up 28.168 28.716 29.509

Start-Up Funding Assessment 169.871 152.466 130.523

Reduction (£m) - (17.405) (21.943)

Reduction (%) - (10.2%) (14.4%)

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equivalent to a specified increase in their council tax and to be received for a specified

number of years.

4.3.2 In 2012/13, Government baselined the 2011/12 grant into the core funding (RSG). This was

equivalent to a 2.5% increase in council tax (£3.149m for Ealing). Therefore, although the

CTFG forms a permanent part of the overall budget, it may be subject to the cuts applied to

RSG.

4.3.3 The 2013/14 grant was equivalent to a 1% increase in Council Tax relative to 2012/13, which

for Ealing equated to £1.265m, and was to be received each year for 2 years. In the 2013

Provisional Settlement on 18 December 2013, the Government announced this grant would

also be baselined and so would become part of the Council’s permanent funding. This has

been factored into the MTFS and removes a funding cliff-edge in 2015/16.

4.3.4 In the 2013 Budget and October Spending Round, further Government funding was

announced for CTFG. This was presented to Cabinet in the 26 November 2013 report. The

CTFG for 2014/15 is equivalent to 1% increase in Council tax (£1.277m for Ealing) and is

available for 2 years. The CTFG for Councils who freeze their tax in 2015/16 is also

equivalent to 1% and available for that year only.

4.3.5 Table 9 shows the Council Tax Freeze grant available if the Council freezes its Council tax

over the period of the MTFS, 2014/15 – 2016/17. It does not include the grants from 2011/12

and 2013/14 as these are baselined into the RSG.

Table 9: Council Tax Freeze Grant

Year of Council Tax freeze

2014/15 2015/16 2016/17 TOTAL

£m £m £m £m

Year Council Tax

Freeze Grant to

be received

2014/15 1.277 - - 1.277

2015/16 1.277 1.056 - 2.333

2016/17 - - - -

Total 2.554 1.056 - 3.610

4.3.6 In accepting this grant it should be noted that a number of Councils rejected the 2013/14

grant and opted to increase their Council Tax instead. Likewise, in 2014/15, several

Councils have already indicated they may reject the Council Tax Freeze Grant.

4.3.7 Council tax levels will have remained unchanged since 2008/09 in Ealing if the 2014/15

freeze grant is accepted.

4.3.8 In addition, local authorities seeking to increase council tax levels by more than 2% will be

required to gain approval through a local referendum. This threshold is the same as in

2013/14. This does not impact Ealing as the administration has expressed a wish to freeze

council tax in 2014/15.

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4.4 New Homes Bonus

4.4.1 Ealing’s provisional New Homes Bonus (NHB) allocation of £6.839m was announced by the

Government on 16 December 2013. As with previous allocations, each year’s NHB will be

received every year for 6 years, subject to government topslicing as explained in para 4.4.5.

Table 10 reflects the NHB to be received by Ealing from previous years and the current

year’s allocations. The final allocation is based on the net change in stock (as per Council

Tax records) for the year to October 2013.

Table 10: Ealing NHB allocation

4.4.2 The NHB scheme is funded from the existing quantum of local government funding as from

2013 the Government has taken funding from the Revenue Support Grant to redistribute as

NHB.

4.4.3 An authority’s NHB allocation reflects the additional council tax raised from new homes and

empty properties brought back into use, with an additional amount for affordable homes.

4.4.4 There will be further allocations for future years based on annual new homes growth.

Detailed modelling work on the likely future revenue streams is on-going and will be

incorporated into the MTFS. This funding will continue to be used to support the Council’s

overall budget position.

4.4.5 The Government consulted in September 2013 on proposals to top-slice New Homes Bonus

grants to local authorities by 35% and pass this money to Local Enterprise Partnerships

(LEP) to spend at a regional level. Following their consultation, the government decided to

only implement this idea in London, where the LEP acts as an advisory body to the Greater

London Authority (GLA). This effectively means that, from 2015/16, 35% of Ealing and all

other London Borough’s New Homes Bonus will be passed to the GLA to spend on projects

across London. This is expected to equate to a topslice of approximately £3.3m in 2015/16

for Ealing.

2014/15

allocation

6-year

total

Year of final

payment

£m £m

2011/12 NHB – 4th installment 1.120 6.720 2017/18

2012/13 NHB – 3rd installment 1.586 9.516 2018/19

2013/14 NHB – 2nd installment 2.438 14.628 2019/20

2014/15 NHB – 1st installment 1.695 10.170 2020/21

Total 6.839 41.034

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4.5 External Factors – interest rates and inflation

4.5.1 The base rate is a major influence on the returns that Council can achieve on investment

income. The base rate has been held at 0.5% since March 2009. It is not predicted to

increase until 2016.

4.5.2 CPI and RPI have decreased overall over the year. Both rates fell during the year to achieve

their lowest points in November 2013. CPI has been above the Government’s inflation target

of 2% since November 2009.

Table 11: Inflation indices (Nov 2012 – November 2013)

% 2012 2013

N D J F M A M J J A S O N

CPI 2.7 2.7 2.7 2.8 2.8 2.4 2.7 2.9 2.8 2.7 2.7 2.2 2.1

RPI 3.0 3.1 3.3 3.2 3.3 2.8 3.1 3.3 3.1 3.3 3.2 2.6 2.6

4.5.3 Although the budget allows for additional inflation on some budgets via specific growth bids,

there remains a risk that exceptional increases in costs will occur on some budgets (e.g.

where contractual increases are linked to either CPI or RPI). The Council holds a risk

provision for inflation on contracts, which is available to services subject to the relevant

approvals.

4.6 Other Factors

4.6.1 In addition to the external factors already mentioned, there are a number of other pressures,

which are highly likely to impact on the budget. These pressures are listed below:

Page 16

(i) Demand led services (Children and Adults) – The Children’s and Adults’ directorate

reported a £2.154m overspend in 2012/13. Although £1m was built into the 2013/14

MTFS to help alleviate some pressures, the budgets are under great pressure due to

the demand led nature of the service. One of the main risks in the budget relates to

demographic change. Residents are living longer and have greater expectations about

the quality and range of services the Council should provide. Assumptions have been

made in the budget in respect of social services client numbers and likely increases in

demand for services though there is always a degree of uncertainty surrounding such

forecasts.

(ii) Income – Levels of income are impacted by individual’s responses to the economic

climate, as people may cut back on areas of discretionary spending. This could impact

on levels of planning, property and car park income. In addition leisure services income

could reduce.

(iii) Schools expansion – pressures caused by steeply increasing pupil numbers.

(iv) Levies that we pay to external bodies - payments outside our control that we have to

meet from our budget requirement (more detail in section 5.15).

(v) Pension Fund – Employer contributions into the pension fund can fluctuate depending

on the net liability of the fund and an agreed deficit repayment plan. An actuarial review

of the pension fund assets and liabilities is carried out every three years with the

outcome feeding into the MTFS for the following three years. The latest valuation was

as at 31 March 2013 and will be reflected in the general fund budget from 2014/15. The

proposed employer contributions based on recommendations from the actuary are in

line with the level that had been anticipated and budgeted for in the latest MTFS. Full

details of the latest actuarial review will be reported to the Pension Fund Panel on 27

February 2014.

(vi) The local welfare provision grant, a fund aimed at providing support for people in crisis

is to be withdrawn from local authorities from 2015/16. For Ealing the 2013/14 grant

was £0.867m. The Crisis loans schemes and community care grant, which were

localised to Local Authorities from April 2013, are used to pay for food banks and

housing-related support. The withdrawal of this grant could put further pressure on the

Council’s services.

4.7 Approach to budgeting - the Budget Review Process

4.7.1 The Council uses a rigorous priority-led budget process, established in 2005 and now fully

embedded across the Council. Confidential Budget review meetings are held in the autumn

to examine draft budgets in detail and assess service budget proposals and bids for growth

against the Council’s vision and priorities. The budget meetings also act as challenge

sessions on the direction of travel of service divisions, in terms of finance and performance.

The meetings do not constitute formal decision-making bodies, but make recommendations

to be considered by Cabinet.

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4.7.2 The outcome of the process is a set of business plan options put forward for consideration by

the Cabinet and final consideration by full Council at its statutory budget-setting meeting in

February.

4.8 Previous reports

4.8.1 The Cabinet considered reports on 18 June, 26 November 2013 and 18 February 2014 on

budget strategy, which updated Members on the latest position on the budget-planning

framework. This report presents the 2014/15 Council budget and Council tax for

consideration and final decisions by full Council on the 25 February 2014.

Overview and Scrutiny

4.8.2 Overview and Scrutiny Committee considered the Cabinet Budget report at its meeting on 13

February 2014. Any recommendation will be tabled at the 18 February 2014 Cabinet

meeting.

4.9 Annual Review of the Medium Term Financial Strategy (MTFS)

4.9.1 The MTFS is the cornerstone for the delivery of the Council’s financial services and plans,

providing a robust financial framework to support achievement of the Council’s overall

objectives and delivery of services. Cabinet last reviewed the MTFS on 26 February 2013.

Officers review and update the MTFS on a regular basis throughout the year as information

becomes available. The aim of the MTFS is to ensure a stable and sustainable financial

position that will allow the Council to achieve its vision and strategic objectives.

4.9.2 By necessity the strategy is fluid and moves to reflect such matters as the changing

circumstances faced by the Council, up-dated priorities and ambitions, the latest financial

situation and external factors such as national settlements. Members are asked to consider

and agree the amended MTFS for 2014/15 and beyond as set out in Appendix 1, noting that

the Council, in common with all authorities, continues to face a challenging financial outlook.

Financial planning over the medium term will help meet the challenges in a structured way,

ensuring resources are directed to priority areas.

4.9.3 The table below summarises the MTFS presented in detail in appendix 1, assuming a council

tax scenario of 0% in 2014/15, 0% rise in 2015/16 and 1% rise in 2016/17 as hypothetical

scenarios (scenario 2 in MTFS, appendix 1).

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Table 12: Summary of Medium Term Finance Strategy

2014/15 2015/16 2016/17

£’000 £’000 £’000

Expenditure

Base Budget Services 197,248 191,648 165,191

Savings approved (8,353) (679) - -

Growth approved 539 (160) (37)

Other adjustments (786) 3,848 2,000

Inflation 3,000 3,000 3,000

Savings requirement (denoted by brackets) - (32,466) (26,677)

Total Departmental Budgets 191,648 165,191 143,477

Below the line items

Levies 29,255 30,320 31,558

Central, Council wide and Investment budgets 49,924 49,592 49,908

One-off C. Tax freeze grants (1,277) (2,333) - -

New Homes Bonus (6,839) (6,209) (7,000)

Growth

- 2,500 2,500

Total Non-Departmental Budgets 71,063 73,870 76,966

Total Budget Requirement 262,711 239,061 220,443

Total Funding 262,711 239,061 220,443

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4.9.4 The draft revenue budget has been developed based on the 10 key aims of the MTFS.

These are presented below:

10 key aims:

(i) Prioritise resources to align spending plans with the Council’s vision and strategic

objectives and resident priorities

(ii) Maintain council tax as low as possible (including a further freeze in 2014/15).

(iii) Maintain a balanced budget position, and to set a medium term financial plan maintaining

and strengthening that position

(iv) Provide a robust framework to assist the decision making process

(v) Undertake a prudent level of capital investment to meet the Council’s strategic priorities

and remain within prudential borrowing limits

(vi) Manage Council finance within the context of a forward looking three year rolling

business planning framework

(vii) Delivery of value for money to local taxpayers

(viii) Exercise probity, prudence and strong financial control

(ix) Manage risk, including holding reserves as appropriate and sustainable levels of debt

(x) Continually review budgets to ensure resources are targeted on key objectives

4.9.5 At the end of the MTFS is a glossary of terms used, which has been provided in order to

make this technical document as user friendly as possible.

5 Budgets and Business Plans

5.1 Budgets and business plans 2014/15 to 2016/17

5.1.1 The draft Capital Programme (Appendix 11) and Revenue Budget have been produced as a

result of work that has been underway since June 2013 on producing budgets and service

plans in the budget and service review process.

5.1.2 The Housing Revenue Account (HRA) must be operated for all local authorities with a

retained housing stock and is “ring-fenced” from the General Fund. The Budget for this was

approved by Cabinet on 17 December 2013.

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5.2 Budgeting for the Council’s Priorities

5.2.1 The role of the Council’s financial planning process is to support the achievement of the

Council’s Strategic Goals. A considerable amount of consultation and dialogue with service

users, partners and Councillors as well as staff has been undertaken.

5.3 Revenue Budget Proposals 2014/15

5.3.1 The Council’s proposed budget for 2014/15 is presented for approval by Full Council in this

report.

5.4 Budget Growth proposals

5.4.1 There continue to be substantial further pressures in 2014/15 and future years arising from a

combination of an increase in need in many of our front line services, and a requirement to

re-focus resources on key Council priorities, which must be funded from finite financial

resources. Leading members and officers have scrutinised these pressures to make the

most effective use of limited resources and ensure the Council delivers on its published

priorities.

5.4.2 Council is asked to note the approved growth proposals totalling £0.201m submitted by

various departments as part of the 2014/15 budget review process. This includes a proposal

from Environment & Customer Services which requires one-off growth of £0.037m in

2014/15, which is returned in 2016/17 (see appendix 2c for details).

5.4.3 Table 13 summarises the growth approved from 2014/15 – 16/17

Table 13: Summary of approved growth 2014/15 – 16/17

5.4.4 In addition, Council is asked to approve the inclusion of additional budget provision of £1m in

the 2016/17 budget for Adult Social Care for demographic and demand pressures. This is in

addition to the provisional sum of £1m in 2015/16 which was approved as part of the MTFS

by Cabinet on 19 February 2013.

5.5 Savings proposals

5.5.1 To date, Cabinet has agreed £8.920m savings for the MTFS period 2014/15 – 2016/17. This

is profiled as £8.504m for 2014/15 and £0.416m for 2015/16. Of these, the most recent

14/15 15/16 16/17 TOTAL

Directorate £m £m £m £m

Regeneration & Housing 0.086 - - 0.086

Environment & Customer Services 0.152 - (0.037) 0.115

TOTAL 0.238 - (0.037) 0.201

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tranche, of £2.224m, resulted from the 2014/15 budget review process and were approved

by Cabinet on 26 November 2013.

5.5.2 Council is requested to approve £0.130m savings in Built Environment which were submitted

as proposals in development as part of the 2012/13 budget review process. Details of the

proposals are set out in appendix 2a.

5.5.3 Council is requested to approve £0.353m saving in Environment and Leisure for 2015/16. As

part of the 2012/13 budget review process, Environment and Leisure submitted an invest to

save proposal to upgrade the existing high pressure sodium lamps with LED lighting.

Installing energy efficient LED lighting will reduce energy consumption, lower maintenance

costs and reduce the Council’s carbon footprint. £0.220m net savings have already been

approved in respect of this proposal for 2014/15. Cabinet is now requested to approve a

further net saving of £0.353m for 2015/16 (see appendix 2a).

5.5.4 Council is requested to approve the substitution of £0.070m proposal in development in

2014/15 in Policy and Performance with a one-off saving in 2014/15 and the re-profiling of

the proposal in development to 2015/16. The service propose to utilise £0.070m of grant

reserve funding on a one-off basis in 2014/15 to maintain levels of service provision for a one

year period (see appendix 2a). A sustainable solution to the £0.070m budget reduction and

details of impact on staffing and service provision will be presented during the 2015/16

budget-setting round and will remain a proposal in development for 2015/16 (see appendix

3).

5.5.5 Council is requested to approve the substitution of £0.150m proposal in development in

2014/15 in Property and Regeneration with a one-off saving in 2014/15 (see appendix 2a)

and the re-profiling of the proposal in development to 2015/16 (see appendix 3).

5.5.6 Council is requested to note that this would result in a remainder of £0.280m proposals in

development (PIDs) in 2015/16, subject to approval of the re-profiling referred to para 5.5.4

and 5.5.5 (see appendix 3). Further work will be undertaken during 2014/15 to progress

these for 2015/16, and the proposals will be submitted for approval by Cabinet in future

budget strategy reports.

5.5.7 Table 14 summarises the savings position over the period of the draft MTFS 2014/15 –

2016/17.

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Table 14: Summary of savings over period of MTFS, 2014/15 – 2016/17

5.5.8 Table 15 summarises the savings proposals by saving type.

Table 15: Savings by saving type

2014/15 2015/16 2016/17 TOTAL

£m £m £m £m

Savings approved by Cabinet to date

From previous budget reviews (6.280) (0.416) - (6.696)

From 2014/15 budget review (2.224) - - (2.224)

Savings approved to date (8.504) (0.416) - (8.920)

Savings to be approved by Cabinet

Savings to be approved (0.350) 0.220 - (0.130)

New Savings to be approved - (0.353) - (0.353)

Savings to be approved (0.350) (0.133) - (0.483)

Remaining PIDs - (0.280) - (0.280)

TOTAL (8.854) (0.829) - (9.683)

Management

savings Increased

Income Contract Savings

Efficiency Savings

Service Changes TOTAL

(M) (I) ( C) (E) (S)

£m £m £m £m £m £m

Savings already approved by Cabinet

(1.605) (1.013) (0.910) (5.367) (0.025) (8.920)

Savings to be approved (0.062) (0.068) - (0.353) - (0.483)

Remaining PIDs - (0.050) - (0.080) (0.150) (0.280)

Sub-total (1.667) (1.131) (0.910) (5.800) (0.175) (9.683)

Sub-total % 17.2% 11.7% 9.40% 59.9% 1.81% 100%

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5.6 Assumptions for 2014/15 Budgets

5.6.1 Budgets reflecting cost increases identified between 2013/14 and 2014/15 have been drawn

up in consultation with the Director of Finance, Heads of Finance and other staff within the

Council’s departments. The planning assumptions used in calculating the figures have made

no provision for inflation. For 2014/15 there has been no automatic inflationary increase of

budgets except where directorates have submitted growth bids.

(i) Pay – The Government confirmed in its 2012 Autumn statement that there would be a

public sector pay cap of 1% up to 2015/16. A 1% pay award broadly equates to an

increase in costs of £1m.

(ii) All other budgets – this 0% covers supplies and services, transport related costs

and other administrative budgets, with the exception of budgets that are already

subject to contractual increases, where the appropriate inflation will have to be

applied.

(iii) Income – 0% assumption has been made on income budgets, which means that

where services have increased income, (perhaps by an increase in charges), this

would have been reflected as a savings proposal as it will generate income above the

budget.

5.7 Parking Places Reserve Account

5.7.1 The budget also includes a contribution from the Parking Places Reserve Account. All

charges against the Parking Account are bound by the rules set out in the Traffic

Management Act 2004 which essentially limits the areas on which a surplus can be spent to

include:

Off street Car Parks.

Passenger Transport.

Highway Improvements.

5.7.2 The parking contribution to concessionary fares for 2014/15 is £8.522m. A detailed

breakdown of the parking account for 2014/15 is attached as Appendix 8.

5.8 Fees and Charges

5.8.1 The Council charges for a range of services. Cabinet is requested to note the fees and charges schedule, as it currently stands, in appendix 12.

5.9 Schools Budget

5.9.1 The Dedicated Schools Grant (DSG) is split into three notional funding blocks, the Schools

Block, the Early Years Block and the High Needs Block.

5.9.2 Each local authority’s per pupil amount for the Schools Block is the same as for 2013/14.

This amount is multiplied by the pupil numbers from the October 2013 school census. The

Page 24

Department for Education (DFE) has confirmed Ealing’s School block allocation for 2014/15

is £217.823m, based on 41,126 pupils multiplied by £5,926.47 per pupil (2013/14 £213.914m

for 40,388 pupils).

5.9.3 The amount per pupil for the Early Years Block is the same as for 2013/14. Initially this has

been multiplied by pupil numbers from the January 2013 Early Years Census to produce a

provisional allocation. The final Early Years Block for 2014/15 will be updated in June 2014

and June 2015 and will be based on 5/12 x January 2014 pupil numbers plus 7/12 x January

2015 pupil numbers. The provisional allocation for 2014/15 is based on the January 2013

Early Years census is £21.057m (£21.057m in 2013/14).

5.9.4 The High Needs Block is a single block for local authorities high needs pupils/students aged

0-24. This block includes hospital education. A provisional allocation for high needs in

schools in 2014/15 of £42.720m was issued by the DFE in December 2013 (£42.418m in

2013/14). The DFE will issue a confirmed allocation following a review of place numbers in

February 2014.

5.9.5 The DFE has made additions to the DSG for the Induction for Newly Qualified Teachers and

the Funding for early education places for 2-year-olds from lower income households of

£6.399m (£5.197m in 2013/14). The per child funding rate for each local authority remains at

the same level as 2013-14. The additional sum reflects the requirement to increase the

entitlement to free early education from the 20% lowest income households to the 40%

lowest income households in September 2014.

5.9.6 The DFE has also made a deduction to the DSG in 2014/15 of £0.632m to compensate the

Exchequer for the loss of revenue resulting from local authorities no longer needing to meet

the costs of purchasing carbon allowances for schools.

5.9.7 In summary, Ealing’s provisional Dedicated Schools Grant allocation for 2014/15 is

£287.367m, (£282.586m in 2013/14). Table 16 shows a summary of the figures.

5.9.8 The DSG does not directly impact on the council’s revenue budget position as it is provided

as a specific and ring-fenced grant which is to be used in support of the local authority’s

Schools Budget. The notional blocks within the DSG are not ring-fenced. The Schools block

primarily funds mainstream schools. The Early Years block primarily funds early education

provision in private settings, school nurseries and the education of two year olds from

households with low incomes. The High Needs block primarily funds pupils with high needs,

which are usually pupils with Special Educational Needs or pupils that are being funded out

of school.

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Table 16: Summary of provisional Dedicated Schools Grant

Universal Free School Meals for infants

5.9.9 The Government has announced that, from September 2014, every child in reception, year 1

and year 2, in state-funded schools, will be offered a free school lunch. This follows a

recommendation in the School Food Plan, an independent review published in July 2013,

which aims to bring about a significant increase in the numbers of children eating good food

in schools.

5.9.10 The Children and Families Bill, which is currently before Parliament will place a legal duty on

primary schools to offer free meals to all pupils in reception, year 1 and year 2 from this

September. The legislation will also include a power to extend the policy to additional year

groups in future. Existing entitlements to free school meals for disadvantaged pupils in

nursery classes and at key stages 2-4 will continue.

5.9.11 The Department for Education will allocate schools a flat rate of £2.30 per meal taken, based

on actual take-up by newly eligible infant pupils, which will be measured in the Schools

Census from next year. There will also be transitional funding for small schools but no details

of how this will work have been announced yet.

5.9.12 In addition Ealing’s schools have been allocated £1.031m in Universal infant free school

meals capital to build or upgrade new kitchens, and to increase dining capacity where it is

needed.

5.10 GLA Precept 2014/15

5.10.1 The Mayor of London issued a consultation document on 23 December 2013 proposing a

reduction in the Council tax precept of £4.00 from its 2013/14 level of £303.00 per Band D

Council Taxpayer to £299.00 in 2014/15. This is the third reduction in the figure since

2013/14 2014/15 Variance

£m £m £m Status

Schools Block 213.914 217.823 3.909 Confirmed

Early Years Block 21.057 21.057 - Provisional

High Needs Block 42.418 42.720 0.302 Provisional

Sub-Total 277.389 281.600 4.211

Newly Qualified Teachers &

Funding for 2-year olds 5.197 6.399 1.202

Less: Remove provision for

Carbon allowance purchase - (0.632) (0.632)

Total 282.586 287.367 4.781

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2008/09 as it was also reduced in 2013/14. The precept represents some 22% of the overall

headline council tax bill in 2014/15. At the time of writing this report, the final precept was

due to be confirmed on 14 February 2014

5.10.2 The amount of GLA precept per Council tax band is set out below.

Table 17: GLA precept per Council tax band

A B C D E F G H

£ 199.33 232.56 265.78 299.00 365.44 431.89 498.33 598.00

5.11 Specific Grants

5.11.1 In 2013/14, Ealing received approximately £66m in specific government grants (excluding

Dedicated Schools Grant, Housing Benefit payments and monies for Public Health duties

passed to local authorities from the NHS in 2013/14)

5.11.2 Also in 2013/14, four specific grants were rolled into the Business Rates Retention Scheme

and so included within the Revenue Support Grant. This meant unless they were specifically

protected (e.g. the Council Tax Support Grant), they were subject to the same cuts as RSG.

5.11.3 In the 2014/15 provisional settlement announcement, Government stated that the Council

Tax Freeze grant from 2013/14 has been baselined and now forms part of an authority’s

permanent funding and is included in the RSG. No other grants have been rolled into the

RSG as part of the 2014/15 or 2015/16 funding.

5.11.4 In the 2013 Budget Statement, the Government announced a 25% reduction to the

Education Support Grant in 2015/16. As the 2014/15 provisional allocation is £5.786m, a

reduction of 25% would equate to £1.447m meaning the 2015/16 grant would be

approximately £4.340m based on current workings.

5.11.5 At this point, not all government grants have been announced for 2014/15. Ealing is therefore

awaiting notification of what some grants will be or, in some cases, whether they will still be

receivable in 2014/15.

5.11.6 A detailed analysis of the specific grants changes is provided as Appendix 4.

5.12 Statutory declarations on Robustness of Budget Estimates and Adequacy of Reserves

5.12.1 Section 25 of Local Government Act 2003 requires that the Chief Financial Officer (in

Ealing’s case, the Executive Director of Corporate Resources) must report to an Authority in

two areas:

The adequacy of the proposed reserves

The robustness of the estimates

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5.12.2 It also states that the Authority must have regard to this report when the Council Tax is being

set. The Executive Director of Corporate Resources advises that he considers that the

proposed budget is robust and the level of reserves and balances in the draft budget is

adequate.

5.12.3 The budget setting process is designed to produce robust three-year revenue budget

estimates:

5.12.4 The draft budget has been subject to considerable examination by the Council's officers.

Each department’s budget proposals are presented by its Portfolio holder and Executive

Director at the confidential Budget Review meetings, which are chaired by the Leader and

attended by senior officers and members including the Portfolio Holder for Finance and

Performance, the Chief Executive and the Executive Director of Corporate Resources. The

confidential Budget Review discussions are held at a detailed level and contain a significant

and robust element of challenge.

The budget and service planning cycles are in line, so that resources are aligned with

service objectives through the budget setting process.

The revenue impact of decisions concerning capital spending is considered and

incorporated in the budget proposals.

The budget does not include a proposed contribution to reserves as the anticipated level

of reserves as at 31 March 2014, is at the target level.

Risks are fully considered and appropriately budgeted for.

The Cabinet receives and comments upon the draft budget report before the Council

meets to set the budget.

The Council’s scrutiny function has the opportunity to consider and comment upon the

budget proposals to the Cabinet

5.13 Emerging and known risks

5.13.1 As part of the Budget Review process, services were asked to consider and document all

emerging and known risks in submitting their budget proposals. The draft revenue budget for

2014/15 is, like the budget for 2013/14, being set in difficult financial and economic

circumstances.

5.13.2 In addition to the main financial risks facing the Council set out in section 4.6, delivery of the

planned savings is critical, including the delivery of £8.854m savings in 2014/15. The

delivery of savings will necessitate robust monitoring and financial control throughout the

budget monitoring processes as mentioned below.

5.13.3 The Council considers key corporate risks via the corporate risk register, which is monitored

at Corporate Board on a regular basis and monitors significant performance and financial

information on a monthly basis via the “Finance Monitor". This information is reported to the

Finance Strategy Group, Corporate Board and Cabinet. The Portfolio Holder for Finance and

Performance also receives a copy of the Finance Monitor and is personally briefed at the

Page 28

regular weekly briefing with the Executive Director of Corporate Resources on key issues. In

addition the Council’s Audit Committee meets quarterly and challenges the risk register

actions and the adequacy of the risk management framework and the associated control

environment.

5.13.4 Despite the risks to the budget, the rigour of the process has enabled the Council to

consistently deliver an overall balanced budget with a forecast balanced budget for 2013/14

(see table 18). Services have proper governance arrangements in place to ensure that they

maintain tight control of their budgets and ensure action plans are put into place immediately

to contain any overspends arising.

Table 18: Outturn position 2007/08 – 2013/14 (estimate)

5.14 Adequacy of Reserves

5.14.1 Under the 2003 Local Government Act, the Section 151 officer, (the Council’s statutory

Finance Officer - the Executive Director of Corporate Resources), has to be satisfied that the

level of the General Fund balance is adequate. This unearmarked reserve (the sum held

centrally for unavoidable cost increases above expected inflation levels, other unforeseen

items and spending pressures), acts as a financial safety net.

5.14.2 The Council’s general fund balance is at its target risk-assessed level of £15.4m and there is

no planned contribution within the base budget for 2014/15.

5.14.3 There is no statutory definition of a minimum level of reserves and it is for this reason that the

matter falls to the judgement of the S151 officer. In coming to a judgement on this matter the

S151 officer has taken into account matters such as:

Risks inherent in the budget strategy

Risk management policies and strategies

Past financial performance e.g. does the Council have a history of containing spending

within budget?

Current budget projections

The robustness of estimates contained within the budget

The adequacy of financial controls and budget monitoring procedures

Spending pressures to improve services

Year Outturn

2013/14 On target based on latest forecast

2012/13 (£0.050m) underspend

2011/12 (£0.052m) underspend

2010/11 (£0.070m) underspend

2009/10 (£0.063m) underspend

2008/09 (£0.025m) underspend

2007/08 (£0.053m) underspend

Page 29

5.14.4 The estimated level of the general fund balance at 31 March 2014 is £15.4m, which is 5.9%

of the total draft net budget for 2014/15 (£261.618m). The Executive Director of Corporate

Resources considers that a balance of £15.4m at 31 March 2014 is adequate as the

minimum sum given the risks the Council is facing and considering Ealing’s spending history.

The adequacy of reserves will continue to be reviewed annually.

5.14.5 The recommendation of the Council's s151 Officer on balances is: The draft medium

term budget plan should ensure that reserves should be maintained at £15.4m, which is the

estimated balance as at 31 March 2014 and that no budgeted contribution is required as part

of the 2014/15 budget process. Table 19 shows the estimated general fund balance as at 31

March 2015.

Table 19: Estimated General Fund balance as at 31 March 2015

5.14.6 The opportunity cost of holding the recommended general fund balance of £15.4m in

2014/15 in terms of investing in services or limiting the council tax rise is offset by the

flexibility that it allows the Council to deal with risk and adverse expenditure variations.

5.14.7 The opportunity has been taken to review all significant earmarked reserves (monies set

aside for a specific purpose) The figures on earmarked reserves reduce over the medium

term as the sums built up in these are deployed as shown in Appendix 13.

5.14.8 The earmarked reserves figure excludes locally managed schools balances, which are not

available for use by the Council. The Council has a number of earmarked reserves as

shown in Appendix 13 (see table 14 for summary), including these examples:

(i) Business risk reserve £14.6m as forecast at 31.3.15. This reserve is set aside

against future financial risks that may arise, e.g. legislative changes, major projects,

funding risks. The Council faces a number of significant risks in the medium term,

such as funding and service pressures and the need to deliver a significant level of

savings and a sum of £15m is considered to be an appropriate level of cover in this

reserve.

(ii) PFI reserves £34.8m as at 31.3.15. Set aside for future PFI payments.

(iii) Insurance reserve £4.3m as forecast at 31.3.15. This is the fund established to

cover future insurance claims.

£m

Balance 1 April 2014 15.413

Budgeted contribution to balance Nil

Balance 31 March 2015 15.413

Page 30

Table 20: Summary of reserves

*These form part of the General Fund and the use of them is ring-fenced solely for schools’

use.

5.15 Levies

5.15.1 Levies in 2013/14 made up some 10.5% of the Council’s net budget. Set out in the following

table are details of the levies made on the Council, which although outside of Ealing’s direct

control, need to be taken into account when setting the Budget and Council Tax. Any

adverse changes will be met by a balancing adjustment on council wide budgets held

centrally.

Table 21: Levies

5.15.2 Waste disposal costs have been provided by the West London Waste Authority that indicates

a saving of the order of £0.700m on the amount provided for in the MTFS in 2014/15. This is

largely due to the successful procurement of new waste disposal facilities which will ensure

the Council’s exposure to future inflationary and landfill tax increases are largely mitigated.

12/13 13/14 14/15 15/16 16/17

Balance

31.3.13

Forecast

Balance

31.3.14

Forecast

Balance

31.3.15

Forecast

Balance

31.3.16

Forecast

Balance

31.3.17

£m £m £m £m £m

General Fund Balance 15.4 15.4 15.4 15.4 15.4

Other earmarked reserves 82.3 71.7 69.6 67.0 67.2

School Balances* 20.9 19.0 17.0 15.0 13.0

AUTHORITY

Original

2013/14

£m

2014/15

£m

Variance

£m

Variance

%

Provisional/

Final

Concessionary Fares 15.454 15.971 0.517 3.35% Final

West London Waste 12.293 12.068 (0.225) (1.83)% Final

Environment Agency 0.234 0.232 (0.002) (0.85)% Final

London Pension Fund

Authority 0.399 0.393 (0.006) (1.50)% Final

Lee Valley Park 0.327 0.316 (0.011) (3.36)% Final

Coroners Service 0.289 0.274 (0.015) (5.19)% Provisional

Total 28.996 29.255 0.259 0.89%

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5.16 Central contingency

5.16.1 The contingency is the sum within the base budget, which provides for resources that can be

applied to issues as they arise during the year of an ongoing or one-off nature. A number of

issues typically arise during the budget process where the likelihood or value of resources

being required is uncertain. Rather than include all of these in the draft budget and therefore

overstate the budget requirement, a contingency sum is provided for. It enables the Council

to have a robust base budget without needing to fund unforeseen pressures by using or

depleting the general fund balance, the Council’s ultimate financial safety net. This

contingency for example can be used in the 2014/15 year to mitigate against pressures such

as any potential shortfalls arising from the achievement of partial rather than full year

savings. The flexibility provided by the contingency is therefore particularly important in the

current financial environment.

5.16.2 The Executive Director of Corporate Resources has reminded officers that it should be the

last port of call for funding and that budget holders should explore all other possible avenues

first within their devolved budgets. The recommended contingency sum for the 2014/15

financial year is £3m, the same as the 2013/14 level.

Capital Programme

5.17 Existing Capital Programme

5.17.1 Each year, the Council agrees its capital programme at Council in February as part of the

budget setting process. The original capital programme was approved at Council on 26

February 2013. Subsequently, the capital programme was revised in July 2013, to take into

account slippage on the programme following closure of the 2012/13 accounts.

5.17.2 Traditionally, the programme is then revised in February to take into account

changes/slippage on the programme and also to add in any new capital proposals agreed as

part of the budget process. This year, November 2013 Cabinet agreed in principle the new

capital investments proposals selected during the budget review process in Autumn 2013.

This early approval will enable the individual services an early start on the capital projects

and aid timely delivery of the schemes. The February Cabinet report focuses on the overall

five year capital programme and includes subsequent movements that emerged throughout

the year.

5.17.3 Table 24 sets out the movements between the capital programme agreed by Council in

February 2013 and the revised capital programme put forward to Cabinet in February 2014.

It includes the revised, existing four-year capital programme and new proposals put forward

for approval to Cabinet in November 2013.

5.17.4 Cabinet is asked to approve removal of £2.856m of capital savings from the budgets

identified within the Council wide provision which is already reflected in the general fund

capital movements figure in table 17. This saving relates to council wide contingency budget

for schools expansion which is now funded by schools basic needs grant.

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5.18 Additions to the Capital Programme

5.18.1 The 2014/15 new General Fund capital investment programme of £64.755m was agreed at

the November 2013 Cabinet taking into consideration the Council’s priorities. A sum of £40m

is included in the new investment programme relates to schools improvements and provision

of new places.

5.18.2 The new capital bids require funding from a combination of sources including the use of

capital receipts, contribution from revenue, reserves, borrowing and external funding such as

grants or Section 106. The new HRA capital investment was agreed at the December 2013

Cabinet.

5.18.3 The additions to the capital programme and the funding sources are summarised in Table 16

and outlined with a full breakdown in appendices 6a, 6b and 7.

(i) Appendix 6a - additions that require funding from either borrowing or capital receipts;

(ii) Appendix 6b - specific funded additions attracting external funding such as Section

106 or the grant funding such as Transport for London (TFL);

(iii) Appendix 7 – additions to the Housing Revenue Account (HRA)

5.18.4 The Capital Programme additions include schools proposals for which the capital grants are

confirmed.

5.18.5 The funding of General Fund additions of £64.755m requires additional borrowing of £30m

which has been built into the current MTFS (2014/15 – 2016/17)

5.18.6 The funding of £94.448m HRA additions requires £30.844m additional borrowing.

Table 22 – All Capital Additions

2014/15 2015/16 2016/17 2017/18 Total

£’000 £’000 £’000 £’000 £’000

General Fund mainstream funded

Borrowing 1,276 4,869 18,054 19,465 43,664

General Fund specific funded

Grant 302 7,643 3,541 1,285 12,771

Partnership Funding 130 5,700 425 45 6,300

Section 106 2,020 - - - 2,020

Total 2,452 13,343 3,966 1,330 21,091

Total General Fund 3,728 18,212 22,020 20,795 64,755

HRA capital

Other HRA funding 29,886 7,181 27,433 29,948 94,448

Total new funding 33,614 25,393 49,453 50,743 159,203

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5.18.7 Following the addition of the new capital proposals of £159.203m table 23 sets out the

movement in the capital programme from February 2013 to February 2014:

Table 23 – Movement in capital programme March 2013 to February 2014

Capital Programme 2013/14 - 2017/18 £000 £000 £000

Capital programme agreed in February 2013 (General Fund and HRA ) 470,204 470,204

Slippage from 2012/13 General Fund 10,238

Capital Programme savings (2,856)

7,382

Other budget movements approved at various cabinets since February 2013

Mainstream funded 23,841

Specific funded 15,987

39,828

Total General Fund movements 47,210

HRA changes

Slippage from 2012/13 1,609

Other movements 118

1,727

Total HRA movements 1,727

Revised Capital Programme as at January 2014 519,141

New Capital bids added, Appendices 6a,6b,7

General Fund mainstream 43,664

General Fund specific 21,091

HRA 94,448

Total new schemes 159,203

Total Capital Programme for Cabinet approval in February 2014 678,344

5.19 Capital Programme in total

5.19.1 In the current financial year services are reporting budget slippage to future years of £37.6m

against the £214.7m revised capital budget forecasting total spend of £176.5m in 2013/14 as

per the December Finance Monitor (period 9). The General Fund element and HRA are

presented separately.

5.19.2 The Capital Programme, as summarised in table 24 and detailed in appendix 11, illustrates

the revised budgets taking into consideration change of spending profile between years. It is

put forward to Cabinet and subsequently to Council for approval with the reminder to

services that Financial Regulations specify that inclusion of a scheme in the capital

programme implies no automatic approval for progression and is subject to a detailed report

to Cabinet for formal approval and release of funding.

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Table 24: Summary of Capital Programme 2013/14 – 2017/18 Summary Capital Programme 2013/14 - 2017/18

Total Budget

SERVICE Budget Budget Budget Budget Budget 2013/14

2013/14 2014/15 2015/16 2016/17 2017/18 2017/18

£000 £000 £000 £000 £000 £000

SCHOOLS SERVICE 60,697 61,352 34,352 42,525 20,000 218,926

ADULTS SERVICES 1,930 1,296 - - - 3,226

CHILDREN & FAMILIES 1,390 1,125 - - - 2,515

PARKING SERVICES 733 35 - - - 768

E&CS EXECUTIVE DIRECTORATE 3,941 3,566 5,217 3,755 1,631 18,110

ENVIRONMENT & LEISURE 17,887 17,509 6,825 4,775 4,245 51,241

CUSTOMER SERVICES 4,124 1,716 1,000 133 - 6,973

CORPORATE RESOURCES 7,608 9,676 4,002 1,089 - 22,375

BUILT ENVIRONMENT 3,395 3,539 2,839 3,000 3,000 15,773

HOUSING (GENERAL FUND) 1,000 20,000 - - - 21,000

REGENERATION 23,031 9,316 5,750 1,020 750 39,867

SAFER COMMUNITIES 1,246 1,681 610 310 - 3,847

COUNCIL WIDE CAPITAL - - - - - -

General Fund Total 126,982 130,811 60,595 56,607 29,626 404,621

HRA 51,195 89,783 50,460 48,119 34,166 273,723

Total 178,177 220,594 111,055 104,726 63,792 678,344

FUNDED BY:

Mainstream funding 68,605 77,562 23,293 42,500 28,296 240,256

Specific funding (split as follows) 58,377 53,249 37,302 14,107 1,330 164,365

Grant 49,331 45,841 31,539 13,682 1,285 141,678

Revenue Contribution 3,747 5,424 - - - 9,171

Parking Reserve 355 35 - - - 390

Insurance Reserve - - - - - -

Partnership 786 192 5,700 425 45 7,148

S106 4,158 1,757 63 - - 5,978

Total General Fund 126,982 130,811 60,595 56,607 29,626 404,621

HRA



Grant 2,793 924 - - - 3,717

HRA Other:Major Repairs/ Depreciation Reserve36,306 49,951 27,046 29,294 29,948 172,545

Total HRA 51,195 89,783 50,460 48,119 34,166 273,723

Total Funding 178,177 220,594 111,055 104,726 63,792 678,344

Mainstream Funding General Fund

Borrowing 64,231 64,929 23,293 32,500 28,296 213,249

Capital Receipts 4,160 12,360 - 10,000 - 26,520

Revenue Contribution - - - - - -

Reserves 214 273 - - - 487

Total Mainstream Funding 68,605 77,562 23,293 42,500 28,296 240,256

Page 35

Funding Sources, Risks on Capital Programme and Capital Strategy

5.20 Capital Receipts

5.20.1 A capital receipt is an amount of money exceeding £10,000, which is generated from the sale

of an asset. The Council’s policy is that capital receipts are pooled centrally and used to

finance future investment according to priorities.

5.20.2 The exemptions from this general policy are individually agreed incentive schemes agreed by

Members (these schemes must still meet service and overall council policies and aims) - for

example, where works are carried out to provide new education accommodation with the old

accommodation being sold at a later date upon scheme completion.

5.20.3 Appendix 10 sets out the disposals programme for the period 2014/15 to 2016/17.

5.21 Capital Programme - Risk Management

5.21.1 There are three main risks inherent on the capital programme:

(i) Capital receipts are not realised to the level anticipated above. This is a major risk

in view of the significant sums involved and the reliance placed on capital receipts as a

funding source for the capital programme. For this reason, capital receipts progress is

monitored on a monthly basis.

(ii) Capital expenditure slipping from one year to the next. This is a normal feature of

capital schemes and can occur for a large number of reasons. The risk can be mitigated

by slipping corresponding resources between years and is not felt to be high.

(iii) Capital project costs increase. Again this is not unusual, but unlike slippage,

increased costs are more than timing issues and this cannot be mitigated without an

impact on other schemes within the programme or an impact on future years’ resources.

5.21.2 Procedures for the monitoring of the capital programme have been further strengthened with

the work of the Capital Review Board, a group made up by senior officers from each of the

Council’s directorates. The main scope of the Board is:

(i) Examine progress on services’ capital programmes and monitor delivery of capital

schemes;

(ii) Monitor compliance with the financial approval process;

(iii) Receive capital option appraisals and ensure that investment proposals are consistent

with key corporate goals and service objectives and are affordable;

(iv) Monitor and overview funding.

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This process enhances governance of capital investments, supplements the budget

monitoring reports considered by Finance Strategy Group and Corporate Board on a monthly

basis and has improved control and delivery of the capital programme.

5.22 Capital Strategy

5.22.1 The capital strategy is a key corporate document that outlines the council's capital

investment objectives and priorities. It is reviewed on a regular basis and is attached in

Appendix 9.

5.23 Treasury Management and the Prudential Indicators

5.23.1 The Prudential Code regime for capital financing requires that capital expenditure plans are

based on affordability, sustainability, and prudence. This budget report includes the Council’s

proposed Treasury Management Strategy.

5.23.2 The credit crisis and in particular the demise of the Icelandic banks in 2008 focused much

attention on the Treasury Management function which prompted CIPFA to amend the CIPFA

Treasury Management in the Public Services Code of Practice (the Code), Cross-Sectoral

Guidance Notes and Guidance Notes and the template for the revised Treasury

Management Policy Statement.

5.23.3 A requirement of the Code is that Council should formally adopt the Code. The code was

originally adopted by Full Council on 9th March 2010, as part of the 2010/11 Budget

Strategy. CIPFA published an update of the Treasury Management Code on 15 November

2011.

5.23.4 The strategy statement has been prepared in accordance with the CIPFA Treasury

Management Code of Practice revised in 2011. Accordingly, the Council’s Treasury

Management Strategy is approved annually by full council and there is also a mid-year

report. The strategy and mid-year report go to full Council and also to Audit Committee who

now undertakes the scrutiny role for the Treasury Management function. In addition, Audit

Committee receives quarterly update reports on Treasury Management activities.

5.23.5 In addition, there will be regular monitoring of Treasury Management activities by

Management and the portfolio holder for Finance. The aim of these reporting arrangements

is to ensure that those with ultimate responsibility for the Treasury Management function

appreciate fully the implications of treasury management policies and activities, and that

those implementing policies and executing transactions have properly fulfilled their

responsibilities with regard to delegation and reporting.

5.23.6 The Treasury Management strategy sets out the investment strategy that the Council follows,

in addition to many other aspects of Treasury Management such as debt management and

the Prudential Indicators.

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5.23.7 Prudential Indicators are indicators which focus upon the impact of future investment upon

the level of Council Tax and housing rents and the impact upon the authority’s overall

borrowing, including charges to the revenue account.

5.23.8 The full Treasury Management Strategy is attached at Appendix 5 for consideration before

the required formal consideration and approval by cabinet.

5.24 COUNCIL TAX FOR 2014/15

5.24.1 Council Tax Base - The Council Tax base is the number of properties in Bands A-H in the

Borough expressed as an equivalent number of Band D units. The Executive Director of

Corporate Resources has calculated under delegated authority on 27 January 2014 the

amount of 100,514.29 as the Council Tax Base for the year 2014/15, based on an outturn

collection rate of 96.68%, the same as 2013/14. Although collection rates in 2013/14 are

better than expected, a reduction in collection rates has been evidenced in Q3 of 2013/14,

and as other welfare reforms take effect there will be challenges in maintaining collection

rates

5.24.2 Collection Fund Surplus - The projected surplus on the collection fund at 31 March 2014 is

£3.215m, which has to be apportioned between the Council and the GLA. The Council’s

share of this sum is £2.500m. This figure has been added to the resources available to the

Council’s General Fund as part of balancing the budget for 2014/15. The GLA’s share of the

surplus will be £0.715m.

5.24.3 Council Tax in 2014/15 for Ealing's Services - Final decisions on the budget and Council

Tax will be taken on 25 February 2014 by full Council. The level of council tax is a matter of

political judgment, having due regard to the professional advice of officers, and in particular

to the advice of the section 151 officer as regards the robustness of the budget and on

reserves and balances.

5.24.4 Set out below are the indicative Basic Amounts of Ealing's Council Tax for 2014/15

(excluding GLA), which assume a zero % increase in line with the administration’s expressed

wish for a further freeze in 2014/15:

Table 25: Ealing Council Tax (excluding GLA) by band

A B C D E F G H

£ 706.62 824.39 942.16 1059.93 1295.47 1531.01 1766.55 2119.86

5.24.5 Sensitivity analysis shows that for each budget adjustment of £1m, the impact on council tax

is 0.95% on Band D Council Tax or £10.05. For every 1% increase in the 2014/15 council

tax an additional £1.060m council tax revenue is raised and therefore every 1% variation, a

budget variation of £1.060m would be required.

Page 38

5.24.6 Assuming Ealing’s local tax Band D tax is frozen at £1,059.93 and with the proposed GLA

precept of £299.00, the headline tax would be £1,358.93 (an overall decrease of £4.00 or

0.29%) on 2013/14.

5.25 Business Rates Income forecast for 2014/15

5.25.1 The Business Rates Retention scheme was implemented from April 2013. Under the

scheme, Ealing retains 30% of all business rates collected in the borough, 20% goes to the

Greater London Authority and 50% goes to the Government.

5.25.2 Each year, local authorities are required to provide details of expected Business Rates

income for the following via the NNDR1 form, which is a Government return.

5.25.3 The calculation was made and signed off under delegated authority on 16 January 2014 by

the Executive Director of Corporate Resources.

5.25.4 A summary of the estimated business rates income to be collected by Ealing and its

distribution is set out below.

Table 26: Estimate Business Rates Income

% £m

Central Share 50 68.602

GLA 20 27.441

Ealing 30 41.161

Total Business Rates Income 100 137.205

5.25.5 At the end of the financial year 2014/15 the Council will be required to report the actual

business rates collected via the NNDR3 form. This will be subject to audit and any variations

shared between the Government central share (50%), the GLA (20%) and Ealing (30%).

5.25.6 Ealing’s 2014/15 funding also includes a £28.716m top-up grant (which will increase each

year by RPI) because our business rates income is less than our equivalent funding need.

5.25.7 If the Council’s retained business rates income falls by more than £5.150m (12.9%) below

our individual business rates baseline, set by the Government, of £39.954m Ealing would

qualify for a safety net payment.

5.26 Localised Council Tax Support Scheme

5.26.1 With effect from 1 April 2013, Council Tax Benefit was replaced by the localised Council Tax

Support (CTS) Scheme, and from the same date councils introduced a scheme of Council

Tax discounts and premiums for second homes, repossessed properties, empty and

unfurnished properties and properties undergoing structural repair or alteration.

Page 39

5.26.2 In respect of both the CTS and the discount and premium schemes these were approved by

Ealing Council on 11 December 2012. It is not proposed to amend these schemes and both

will continue for 2014/15.

5.27 Council Tax Requirement

5.27.1 An authority’s council tax requirement for a financial year is the amount that the authority

requires from council tax alone in order to finance its budget for the year and this amount is

used to calculate the authority’s basic amount of council tax.

5.27.2 The Council Tax requirement is calculated as follows:

Table 27: Calculation of Council tax requirement

£

Council net budget requirement

262,711,000

Less: funded from

-RSG (83,795,671)

-Business rates retention (41,161,355)

-Business rates Top up (28,716,259)

-Collection fund surplus (2,500,000)

Council Tax Requirement 106,537,715

5.27.3 The Basic amount of Council Tax is calculated as: Council Tax Requirement

Council Tax Base

5.27.4 The following table shows the Basic Amount of Council Tax (Band D) has remained

unchanged between 2013/14 and 2014/15:

Table 28: Calculation of Basic Amount of Council Tax

2013/14 2014/15

Council Tax requirement £105,590,821 £106,537,715

Council Tax base 99,620.69 100,514.29

Basic amount of Council Tax £1,059.93 £1,059.93

Change from 2013/14 to 2014/15 0%

Page 40

5.28 Council Tax Referendum

The Localism Act 2011 abolished Council Tax capping in England and replaced the regime

with local referendums. An authority is required to hold a referendum if its ‘relevant basic

amount of council tax’ for 2014/15 is ‘excessive’, that is it is more than 2.0% more than its

relevant basic amount of council tax for 2013/14. The result of a referendum would be

binding.

The guidance prescribes the basis for this calculation, which in essence removes elements

not directly within a local authority‟s control (i.e. levies). The table below shows the

calculation.

Table 29: Calculation of the Relevant Basic Amount of Council Tax

2013/14 2014/15

Council Tax requirement £105,590,821 £106,537,715

Amount attributable to levies £28,995,790 £29,255,000

Council Tax requirement excluding levies £76,595,031 £77,282,715

Council Tax base 99,620.69 100,514.29

Relevant basic amount of Council Tax £768.87 £768.87

Movement from 2013/14 to 2014/15 0.00%

As the relevant basic amount of Council Tax the Council is proposing is within the

levels set by the Government and accordingly the amount of Council Tax cannot be

considered as excessive and a referendum is therefore not triggered.

6 Legal

6.1 The Council has a legal duty to set a balanced budget.

6.2 (Please also see section 11 below: Equalities, Human Rights and Community Cohesion)

6.3 In regard to the Council’s employment law duties:

6.3.1 Directors, including the Chief Executive, have the delegated authority to delete vacant posts

and create new posts within their service, within budgetary constraints

6.3.2 Under s188 of the Trade Union and Labour Relations Act 1992, the Council has a legal

obligation to consult if there are proposals to dismiss 20 or more employees (within 90 days

of each other).

6.3.3 Employees have the right not to be unfairly dismissed. The Council’s policies and practices

reflect this right. Contractual arrangements for matching and redeployment will be applied to

minimise the need for compulsory redundancies.

Page 41

6.3.4 The Council has a legal obligation to make redundancy payments to any employees with

more than 2 years’ service who are dismissed by reason of redundancy. This arises from the

Employment Rights Act 1996 and contracts of employment.

6.3.5 Employees whose posts are deleted are contractually entitled to pay protection in certain

circumstances.

6.4 Several reports have been submitted to Cabinet, including on 26 November 2013, regarding

proposals affecting staff. EAAs have been completed by affected services and submitted

with those reports.

6.5 Some savings proposals, even where those proposals do not have any staffing implications,

will have more detailed legal or practical implications. Where this is the case, these detailed

implications will need to be considered before a final decision is taken on whether or not to

implement them

7 Value for Money

7.1 The Council has prioritised achieving Value for Money in order to ensure resources are

released for the provision of “front line” services. The Budget process has required services

to demonstrate VFM through detailed budget submissions including benchmarking

comparisons and the review process has produced significant management savings,

efficiency savings, increased income and contractual savings of £8.504m in 2014/15.

7.2 The budget proposals include examples of delivering VFM such as streamlining management

structures, removing or reducing subsidy from non- statutory services, rationalising building

stock and review of charges.

8 Sustainable Impact Assessment

8.1 There are no adverse environmental impacts arising from this report. All capital budget

proposals are required to set out how the proposal contributes towards carbon emission

reduction.

9 Risk Management

9.1 The risks facing the Council on its budget were set out in section 4.6. It is important that

spending is contained within budget so that the Council can maintain its financial standing in

the face of further pressure on resources in 2014/15 and beyond as set out in the annual

review of the Medium Term Financial Strategy (MTFS). The biggest risk to the budget is non-

delivery of the approved savings, which is mitigated by close monitoring by officers through the

Financial Strategy Group and Corporate Board. The Council continues to manage within its

means and is projected to deliver a balanced budget for this financial year to 31 March 2014.

9.2 Each service provides monthly updates to the Finance Strategy Group of the financial risks

and progress of any action plans to mitigate the risks.

Page 42

10 Community Safety

10.1 Not applicable

11 Links to the 5 priorities of the Borough

11.1 The council’s medium-term financial strategy, budgets and capital programme are designed to

deliver the Council’s 5 priorities.

11.2 These are:

Make Ealing Safer



Make Ealing Cleaner


11.3 The corporate business plan drives the medium-term financial strategy, with changes in

allocations determined in accordance with policies and priorities. The proposed budget

addresses the delivery of local and national priorities and the Council’s performance and focus

on the needs of its communities. Effective financial management supports the strategic

objective for improved value for money and keeping council tax low.

12 Equalities, Human Rights and Community Cohesion –

12.1 In regard to equalities and human rights considerations, S 149 Equality Act 2010

requires public authorities to have due regard to:

(a) eliminate discrimination, harassment, victimisation and any other conduct that is prohibited

by the Act;

(b) advance equality of opportunity between persons who share a relevant protected

characteristic and persons who do not share it;

(c) foster good relations between persons who share a relevant protected characteristic and

persons who do not share it.

12.2 The protected characteristics are: age; disability; gender reassignment; pregnancy and

maternity; race; religion or belief; sex; sexual orientation.

12.3 Having due regard to the need to advance equality of opportunity between persons who share

a relevant protected characteristic and persons who do not share it involves having due

regard, in particular, to the need to:

(a) remove or minimise disadvantages suffered by persons who share a relevant protected

characteristic that are connected to that characteristic;

(b) take steps to meet the needs of persons who share a relevant protected characteristic that

are different from the needs of persons who do not share it;

Page 43

(c) encourage persons who share a relevant protected characteristic to participate in public

life or in any other activity in which participation by such persons is disproportionately low.

12.4 The steps involved in meeting the needs of disabled persons that are different from the needs

of persons who are not disabled include, in particular, steps to take account of disabled

persons' disabilities.

12.5 Having due regard to the need to foster good relations between persons who share a relevant

protected characteristic and persons who do not share it involves having due regard, in

particular, to the need to:

(a) tackle prejudice, and

(b) promote understanding

12.6 Compliance with the duties in S149 may involve treating some persons more favourably than

others; but that is not to be taken as permitting conduct that would otherwise be prohibited

under the Act. The council’s equality analysis assessment toolkit supports this approach.

12.7 The Human Rights Act 1998 makes it unlawful for public authorities to act in a way that is

incompatible with a Convention right. Anyone who feels that a public authority has acted

incompatibly with their Convention rights can raise this before an appropriate UK court or

tribunal.

12.8 The Human Rights Act protects a person from discrimination in the enjoyment of those human

rights protected by the European Convention of Human Rights. These rights include the

absolute right not to be subject to inhuman or degrading treatment, the right to respect for their

private and family life, their home and their correspondence, which may only be restricted only

in specified circumstances and the right to hold a broad range of views, beliefs and thoughts,

and to follow a religious faith. The right to manifest those beliefs may be limited only in

specified circumstances.

12.9 Discrimination occurs when a person is treated less favourably than another person in a

similar situation and this treatment cannot be objectively and reasonably justified.

12.10 The Human Rights Act prohibits discrimination on a wide range of grounds including ‘sex,

race, colour, language, religion, political or other opinion, national or social origin, association

with a national minority, property, birth or other status’.

12.11 The case law relating to this right has shown that the term ‘other status’ includes, among other

things, sexual orientation, illegitimacy, marital status, trade union membership, trans-

sexualism and imprisonment. It can also be used to challenge discrimination on the basis of

age or disability.

12.12 Service areas making budget change proposals have completed Equality Analysis

assessments (EAA) in respect of their proposals. These EAAs are attached with this report.

The EAAs are also considered during the consultation process.

Page 44

12.13 Implementation of each of the proposals will follow the Councils processes, policies and local

terms and conditions to ensure fair selection, assimilation and recruitment and to ensure on

going monitoring of diversity.

12.14 In regard to the Council’s public law duties - When making decisions the Council must act

reasonably and rationally. It must take into account all relevant information and disregard all

irrelevant information and consult those affected, taking into account their views before final

decisions are made. It must also comply with its legal duties, including those relating to

equalities as referred to above.

13 Staffing/Workforce and Accommodation implication

13.1 The savings approved in appendices in 2B have no further staffing implications beyond those

already detailed in the 26 November 2013 Cabinet Report which set out various staffing re-

organisation proposals.

14 Property and Assets

14.1 In building the budget requirement, due regard has been made to the revenue consequences

of the current approved capital programme. The financial strategy embraces the need for an

integrated approach to service planning and budget setting, both for revenue and capital

spending.

15 Consultation

15.1 Consultation on service priorities has occurred extensively across directorates as part of our

business planning and Budget process activities.

15.2 Overview and Scrutiny Committee will consider this report at its meeting on 13 February 2014

and comments will be tabled at this meeting for consideration.

15.3 Consultation with the Ealing Business Partnership takes place on 12 February 2014.

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16 Timetable for Implementation

16.1 The key dates of the budget strategy (including meetings which have already taken place) are

as follows:

17 Appendices

1 Medium Term Financial Strategy 2014/15 to 2016/17

2a Savings to be approved: various directorates

2b All Savings approved to date by Cabinet 2014/15 – 2016/17

2c All Growth approved to date by Cabinet 2014/15 – 2016/17

3 Savings proposals in development Cabinet to note

4 Grants Schedule

5 Treasury Management Strategy Statement, MRP statement and Annual Investment

Strategy 2014/15

6a New Capital schemes – General Fund Mainstream funded

6b New Capital schemes - Specific funded

7 New Capital schemes – HRA

8 Parking account 2014/15

9 Capital Strategy 2014/15

10 Disposals programme 2014/15 to 2016/17

11 Summary Capital Programme 2013/14 to 2017/18

12 Fees and Charges Schedule

13 Reserves

14 Revenue Budget 2014/15

2013

- Cabinet agreed budget process and timetable for 2014/15

- Cabinet considered budget strategy report including budget savings

- Cabinet considered Housing Revenue Account for 2014/15 and MTFS

18 June

26 November

17 December

2014

- Overview and Scrutiny Committee to consider Budget report

13 February

- Cabinet approves all budget proposals including capital proposals and

considers further Budget Options in the context of the final Settlement and

the GLA precept

18 February

Full Council to set Budget and Council Tax for 2014/15 25 February

Page 46

18 Background Information

Budget 2013/14

Cabinet reports 18 June 2013 and 26 November 2013 on budget proposals.

Consultation

Name of consultee Department Date sent

to

consultee

Date

response

received

from

consultee

Comments

appear in report

para:

Internal

Ian O’Donnell Executive Director

Corporate Resources 23.01.14 28.01.14 Throughout

Maria G Christofi Director of Finance 22.01.14 23.01.14 Throughout

Martin Smith Chief Executive 23.01.14 30.01.14 Throughout

David Archibald,

Keith Townsend,

Pat Hayes

Executive Directors 23.01.14 30.01.14 Throughout

Helen Harris Director of Legal and

Democratic Services 06.02.14 07.02.14

Councillor Yvonne

Johnson

Cabinet Member for

Finance & Performance 23.01.14 24.01.14 Throughout

(b) Report History

Decision type: Urgency item?

For decision No

Authorised by Cabinet

member:

Date : Report deadline: Date report sent:

Report no.: Report authors and contacts for queries:

Nigel Watson, Assistant Director of Corporate Finance, 0208 825 6403

Matthew Bunyon, Head of Financial Planning and Investments, 0208 825 9993

Sonia Khan, Financial Strategy Manager, 020 8825 6949

APPENDICES

CONTENTS

APPENDIX TITLE PAGE NUMBERS

1 Medium Term Finance Strategy (2014/15 - 2016/17) 1 - 26

2A Savings to be approved 27

2B Savings approved to date (2014/15 - 2016/17) 28 - 37

2C Growth approved to date (2014/15 - 2016/17) 38 - 39

3 Proposals in Development 40

4 Grants Schedule 41 - 42

5 Treasury Management Strategy Statement, MRP statement and Annual Investment Strategy 2014/15 43 - 80

6a New Capital schemes – General Fund Mainstream funded 81 - 84

6b New Capital schemes - Specific funded 85 - 87

7 New Capital schemes – HRA 88 - 90

8 Parking account 2014/15 91

9 Capital Strategy 2014/15 92 - 101

10 Disposals programme 2014/15 to 2016/17 102

11 Summary Capital Programme 2013/14 to 2017/18 103 - 128

12 Fees and Charges schedule 129 - 154

13 Reserves 155

14 Revenue Budget 2014/15 156

Fraserk

Typewritten Text

Fraserk_0

Typewritten Text

Item 12

Appendix 1: Medium Term Financial Strategy (MTFS) 2014/15 – 2016/17

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EALING COUNCIL

February 2014

MEDIUM TERM FINANCIAL STRATEGY

2014/15 - 2016/17 Version: 3rd Draft

Date: 6th February 2014

Author: Matthew Bunyon


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CONTENTS Page

1. Background 3

2. Objectives of the Financial Strategy 4

3. National context -Update on the Economy 5

4. The Economy and the Council’s investments 7

5. Other Implications of the National Economic Situation 8

6. Funding from Government 8

7. Council Tax Policy 9

8. Delivering the Council’s Priorities 10

9. Budget Review process 11

10. Council’s Business and Financial Planning Timetable 11

11. Forecast Spending Levels – The Medium Term Financial Model 12 12

12. Sensitivity Analysis 14

13. Capital programme 16

14. Value for Money 16

15. Risk Management 17

16. General Fund Balance 17

17. Contingency 18

18. Monitoring and Review 19

Annexes

1. Medium Term Financial Forecast 20

Glossary of Terms 21


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EALING COUNCIL MEDIUM-TERM FINANCIAL STRATEGY (MTFS) 2014/15 – 2016/17

1 .BACKGROUND

In February 2013 the Council agreed the medium term financial strategy based on

the objectives of the Corporate Plan, the latest resource projections and estimates of

expenditure. This document refreshes and updates the Council’s strategy. The

MTFS flows from the Council’s Corporate Plan 2010-14 and the Corporate Plan

update for 2013/14 “Making the Best Better” and sets out how it will ensure a stable

and sustainable financial position to allow the Council to achieve its strategic

objectives including the administration’s wish to not increase Council Tax in 2014/15.

The MTFS also takes into account the significant on-going funding reductions

confirmed in the final Local Government financial settlement for 2014/15 and

illustrative settlement for 2015/16 published on 5 February 2014.

The strategy highlights that the Council will continue to face ongoing reductions in

funding over the medium to longer term given the current position on public finances.

In the face of one of the most challenging financial periods ever faced by local

government, the Councils financial standing is sound and it has responded well to

the pressures it faces. The Council again spent within its budget for 2012/13 with a

very modest increase in the general fund balance at year-end and is on track to

deliver a balanced outturn in 2013/14 providing a strong base for the Council to face

the challenges in 2014/15 and beyond. The most recent Statement of Accounts, for

2012/13, received an unqualified External Audit opinion.

Despite these achievements, the MTFS is being produced at a challenging time for

all authorities, there is little room for manoeuvre on finances and continuous delivery

of savings is required to maintain financial stability.

Council Priorities (including a further freeze on Council tax in 2014/15)

At a time when household budgets are under pressure Ealing remains committed to

keeping Council Tax at an affordable level. The Administration has indicated it

wishes to freeze council tax for 2014/15, using the Council tax freeze grant that has

been offered for two years, noting the advice of the Executive Director of Corporate

Resources as Section 151 officer, however, that the Council will have to find

additional savings in future years to be able to deliver a balanced budget, as this

grant is only for two years.


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The Council’s top 5 priorities are: Make Ealing Safer



Make Ealing Cleaner


2. OBJECTIVES OF THE FINANCIAL STRATEGY Prioritise resources to align spending plans with the Council’s vision and

strategic objectives and resident priorities

Maintain council tax as low as possible (with a further freeze in 2014/15)

Maintain a balanced budget position, and to set a medium term financial plan

maintaining and strengthening that position

Provide a robust framework to assist the decision making process

Undertake a prudent level of capital investment to meet the Council’s strategic

priorities and remain within prudential borrowing limits

Manage Council finances within the context of a forward looking three year

rolling business planning framework

Deliver value for money to local taxpayers

Exercise probity, prudence and strong financial control

Manage risk, including holding reserves as appropriate & sustainable levels of

debt

Continually review budgets to ensure resources are targeted on key objectives

The financial strategy covers the period 2014/2017 and sets out the resource issues

and principles that shape the Council budget; it identifies current issues and

considers potential developments / related issues that are likely to provide the basis

for future revenue and capital budgets. The Housing Revenue Account (HRA) is not

included, as a separate budget and Business Plan is produced for the HRA. This

was presented to Cabinet for approval and agreed on 17 December 2013.

The Council remains in a strong financial position, general fund balances met the

target level of £15.4m (5.6% of net budget) in March 2013 and are forecast to remain

at this level as at March 2014. This is despite the Council delivering a significant

savings programme over the past four years that will have achieved total savings of

£87m by the end of 2014/15.

The MTFS supports all other Council strategies, such as the asset management

strategy and the People Strategy. In particular, it acts as a linchpin linking the

Council's more detailed service plans, asset management plans and capital plans

with the longer term to show that the Council's plans are financially achievable.


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3. NATIONAL CONTEXT - UPDATE ON THE ECONOMY Ealing’s financial and service planning takes place within the context of the national

economic and public expenditure plans and the Financial Strategy has been

formulated within the context of the current UK economic position.

The 2013/14 MTFS was published in February 2013. Since then, further cuts were

announced to the Revenue Support Grant in the Government’s various budget

statements during the year, which have now been factored into this MTFS. This

includes reductions of 10% in 2015/16 announced in the June 2013 Spending

Review.

The Chancellor of the Exchequer made his autumn statement on 5 December 2013.

This set out the latest key economic forecasts and showed an improved position

from his March budget with the economy growing at a faster rate than previously

announced. The forecast for growth for 2013 had been revised sharply upwards to

1.4% from 0.6% and for 2014 growth is now forecast as 2.4% compared to the

previous figure of 1.8%.

Growth forecasts for subsequent years are as follows:

• 2.2% in 2015 • 2.6% in 2016 • 2.7% in 2017 • 2.7% in 2018

.

The forecast for borrowing has also been revised and is now anticipated to fall from

£111bn in 2013/14 to a small surplus in 2018/19, meeting the fiscal mandate a year

earlier than planned. The underlying deficit for this year has also shown a positive

movement down to 6.8% from 7.5% and unemployment forecast are also improved.

The UK base interest rate however remains at an historic low of 0.5% and the new

governor of the Bank of England, Mark Carney, has indicated that the rate will

remain at this level until the second quarter of 2016 at the earliest in order to support

the economy and encourage further growth. The target rate for CPI inflation remains

at 2% and December 2013 saw CPI fall to this target level for the first time since

November 2009.

Whilst the current economic outlook is improving there is still a great deal of

uncertainty and it remains important that the Council has a level of reserves that

allows it to withstand unanticipated financial impacts of future developments at a

local and national level.

The Bank of England’s November 2013 inflation forecast is shown in the following

fan chart. This forecast is based on the Monetary Policy Committee’s (MPC) best

collective judgment of the outlook for CPI inflation and shows the probability of


6

inflation movements with the darker central part of the fan being the more probable.

As at November 2013 the MPC’s forecast was for inflation to fall slightly which has

proved to be the case over the last few months and in December 2013 CPI fell to

2%, the first time since November 2009 that it has been at or below the

Government’s target.

CPI Inflation forecast as at November 2013

Source: Bank of England

The following graph shows the percentage change over 24-months for the RPI with

the comparable change for the CPI. Although both RPI and CPI have been

consistently above the target over the past 24 months both have fallen closer

towards the target with CPI meeting the 2% target in December 2013. CPI inflation

currently (December 2013) stands at 2.0% and RPI at 2.7%.


7

RPI and CPI 24-month percentage change

Source: Office for National Statistics

A key element in the budget preparation process is building in an appropriate central allowance for inflation, whilst noting that it is difficult to forecast exactly how it will vary against the estimates made. Some specific allowances have been built into the budget for prices where contractually required. No other specific allowances have been built into the budget for pay and price inflation. Instead an overall inflation allowance of £3m has been used. 4. THE ECONOMY AND THE COUNCIL’S INVESTMENTS One of the most significant possible on-going impacts of the wider economy for Ealing is in the area of its treasury management investments. The UK base interest rate, currently 0.5%, underpins investment returns and is not expected to start increasing again until 2016 at the earliest. As a result short term returns are set to remain low during 2014/15. Longer term investment rates however (3 years plus) are beginning to move up again although they carry a greater level of risk and do not therefore meet Ealing’s current lending criteria.

The Eurozone sovereign debt difficulties provide a clear indication of much higher counterparty risk. This continues to require the Council to restrict lending to much higher quality counterparties and also for shorter time frames. The Council continues to regard security of the principal sum it invests as the key objective of its treasury management activities on investments. The Council continues to minimise risks, with the rate of return on the investments remaining


8

lower as a result. The separate and detailed annual treasury management strategy document presented to members for approval as part of the budget setting process goes into this in greater detail. The latest Treasury Management Strategy is included as an Appendix to the main Budget report and is subject to approval by the Council at the same time as the 2014/15 Budget and 2014/15 – 16/17 MTFS. 5. OTHER IMPLICATIONS OF THE NATIONAL ECONOMIC SITUATION The other potential implications for Ealing of the wider economic situation include:

The Council may find it harder to collect sums due to it, for example for council tax and business rates. Despite the increased pressures, to date the performance on income collection has been strong.

The Council will face increased demand for its services to assist residents falling into hardship.

Government funding is tighter with public spending reduced even further than forecast.

The Council may find its suppliers and contractors at risk of liquidation, potentially affecting delivery of services.

Inflationary pressures may be greater than assumed. 6. FUNDING FROM GOVERNMENT Business Rates Retention The business rates retention scheme was introduced from April 2013. The aim of the scheme being that Councils are able to directly benefit from supporting local business growth as they are now able to keep 50% of any increases in business rates to invest in local services. In London this 50% is split between the Local Authority (30%) and the GLA (20%). The 2013-14 local government finance settlement was the first under the new scheme. It provided each local authority with its starting position under the business rates retention scheme. This included the following calculations, which will be fixed until the planned reset of the system in 2020 when the funding baselines will be recalculated to take into account changes in needs, population and other factors which the Government so determines in the intervening period:

Individual authority start-up funding assessment;

Baseline funding level;

Individual authority business rates baseline;

Tariffs and top-ups (uprated annually by RPI) and

Safety net guaranteed funding level.


9

Where a Council’s individual business rates baseline is less than their baseline funding (like Ealing), they receive a top up payment to ensure they are not unfairly penalised. The final Local Government financial settlement for 2014/15 was published on 5 February 2014 and included an illustrative settlement for 2015/16. Ealing’s funding received via the Business Rates Retention system is comprised of Revenue Support Grant and Business Rates, as outlined in the table below. We will also receive a top-up to our Funding Baseline, which will be index-linked to RPI in future years.

2014/15

£m

(illustrative) 2015/16

£m Revenue Support Grant 83.796 59.958

Business Rates – Individual Authority Baseline 39.954 41.056

Business Rates – Top-Up 28.716 29.509

Settlement Funding Assessment (SFA) 152.466 130.523 A safety net is available and Ealing’s element of the Business Rates would need to fall by more than £5.150m below our baseline of £39.954m in order for the safety net to be activated. 7. COUNCIL TAX POLICY The Budget for 2014/15 has been constructed around the Administration’s wish to freeze council tax again in 2014/15. The Council’s approach is to deliver an affordable but prudent and realistic level of Council Tax over the period of the MTFS. The Council needs to ensure that it has adequate resources to meet its statutory and mandatory obligations and its priorities. The proposed local Band D Council Tax (excluding the GLA precept) for 2014/15 is £1,059.93, meaning that Council tax levels in Ealing will have remained unchanged since 2008/09. The Council will continue to work to ensure the right balance of council tax and spend is achieved throughout the three year MTFS period, in accordance with its business and financial planning framework and process and in the context of the Councils overall strategic priorities. In addition to SFA the CLG resource also includes funding for the Council Tax Freeze Grant. The original 2011/12 Council Tax Freeze Grant, which was fixed for four years to compensate Councils for not increasing Council Tax between 2010/11 and 2011/12 has since been incorporated into the baseline funding settlement. It has also now been announced that the freeze grant for 2013/14, which was originally fixed for two years, will also be incorporated into baseline funding removing a funding cliff edge in 2015/16 for Ealing of £1.265m. In January 2014 CLG announced


10

a further Council Tax freeze scheme for 2014/15 that is to be paid to Council’s who freeze their Council tax in 2014/15. The grant for the 2014/15 freeze will be paid to Council’s for two years and will be based on 1% of the 2013/14 basic amount of council tax multiplied by the 2014/15 tax base, for Ealing this represents an annual grant of £1.277m The advice of the Executive Director of Corporate Resources as Section 151 officer is that there are funding risks in accepting the 2014/15 freeze grant and not increasing council tax in 2014/15. Whilst there are difficult economic conditions and financial pressures upon many in the community, by accepting this additional grant and freezing Council Tax, it potentially creates additional pressure on future years’ budgets. This is because the equivalent monies must be found from savings or new income into the base budget, unless the 2014/15 scheme is also later incorporated into base funding. For Council’s looking to increase council tax in 2014/15 CLG have set a cap of 2%, any increase above this level would require a local referendum. 8. DELIVERING THE COUNCIL’S PRIORITIES The role of the Council’s financial planning process is to support the achievement of the Council’s Strategic Goals, Corporate Plan and Community Strategy. The Council has five priorities that respond to residents' concerns and to ensure the delivery of high quality, cost effective services.

Make Ealing Safer



Make Ealing Cleaner

Deliver Value for Money Over the last four years the Council has successfully delivered low council tax levels (significantly below both the national and outer London average) and high quality services.

Link to corporate plan http://www.ealing.gov.uk/downloads/download/233/corporate_plan

This MTFS contains the most up to date information at the time of drafting but the Council's financial position is dynamic. The Council faces a number of financial uncertainties that could affect the Council's financial position over the medium term, including:-

Central government policies, including legislative change, which may require additional expenditure in areas that would not otherwise be Council priorities.

Changes in interest rates.

http://www.ealing.gov.uk/downloads/download/233/corporate_plan


11

The impact of market forces on costs, particularly with regard to major contracts and the local employment market.

The raising of community expectations, leading to additional demand for services or improved services.

9. BUDGET REVIEW PROCESSS The Council continues to use a rigorous priority led budget review process, established in 2005 and now fully embedded, which helps to assess service budget proposals and bids for growth against the Council’s vision and priorities. Departmental budget options are reviewed each year at a series of confidential officer Budget Review meetings in the Autumn. These Budget meetings are challenge sessions on the direction of travel of service divisions, in terms of finance and performance. Service ideas and proposals are presented by the relevant Executive Director and Service Directors with the relevant portfolio holders also in attendance. These meetings do not constitute formal decision-making bodies. The objectives of the review process are as follows:

To provide directorates with an opportunity to submit proposals for growth and savings compared to the current business plan for the three-year period.

To provide a mechanism for challenging departments’ proposals and how they meet corporate priorities in a robust and constructive fashion

To measure these proposals against the prevailing financial situation including the savings requirement.

The outcome of the process is a set of business plan options put forward for consideration by the Cabinet, Overview & Scrutiny committee and final consideration by full Council at its budget-setting meeting in February.

10. COUNCIL’S BUSINESS AND FINANCIAL PLANNING TIMETABLE Date Activity April Commence work on strategic budget and service planning.

June Budget strategy and process reported to Cabinet

Sept/Oct Budget Review Meetings

Nov Cabinet/Corporate Board review budget options Cabinet receives preliminary budget proposals including savings

Dec Local Government Provisional Financial Settlement

Jan Budget Strategy report to Cabinet including provisional settlement, further budget proposals

Feb

Budget Strategy report to Overview & Scrutiny Committee

Cabinet reviews proposed budget and recommends to Full Council. Local Government Final Financial Settlement FULL COUNCIL APPROVES THE BUDGET AND COUNCIL TAX


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11. FORECAST SPENDING LEVELS – THE MEDIUM TERM FINANCIAL MODEL The financial implications of the MTFS are set out in this section, which summarises the revenue budget projections over the medium term. Ealing faces a period of funding restraint and in the MTFS model the Council, like other Councils, is forecasting on this basis. The model provides the latest indication of the Council’s financial position for 2014/15 to 2016/17. The Council under spent in 2012/13 by £0.050m. The latest forecasts for the 2013/14 overall revenue budget reported to Cabinet on 21 January 2014 for month eight of 2013-14 indicates that spending will again be within the agreed budget, the period 8 forecast shows a small underspend of £0.348m (0.13% of the net budget) with budget pressures mainly in Children’s and Adults being managed by services. There have also been no drawdown requests by services against the £3m contingency to date. The MTFS is intended to set out a sustainable and affordable financial plan that addresses the Council’s priorities over the next three years. It should provide for realistic levels of spending, not dependent upon the use of one-off reserves. It should provide for a prudent level of reserves for contingencies. The settlement set out the funding allocation for the Council for 2014/15 and an illustrative allocation for 2015/16. This settlement did not cover 2016/17 however the view within local government finance, based on Government announcements to date is that overall Local Government funding is likely to fall again in 2016/17 by a further 14%. An estimate of funding for 2016/17 has been made but is illustrative only at this stage. The overall net budget proposed for 2014/15 is £262.7m which can be funded through the Revenue Support Grant and Business Rates of £153.7m, council tax income (based on the tax being frozen) of £106.5m and the collection fund surplus of £2.5m. A summary of the proposed budget is set out in annex 1. Looking forward over the MTFS period a variety of planning scenarios are of course possible and for the purposes of this document 3 indicative scenarios are set out below, where these include Council Tax increases, these increases have been set at 1%, which is within the Government’s Council Tax cap, currently 2%:


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Scenario 1 Key assumptions are as follows:

- Funding decrease as per two year settlement to 2015/16, then reducing by 14% based on anticipated CSR cuts for 2016/17.

- Contingency £3m - General Fund balance maintained at £15.4m per annum - Council Tax frozen 2014/15 to 2016/17 - Additional government grant of £1.277m in respect of the council tax

freeze for 2014/15, which the government will fund for two years only and an additional government grant of £1.056m from 2016/17.

- NDR income based on Revenues’ forecasts.

2014/15 2015/16 2016/17 £m £m £m

Net Spend 262.7 239.0 219.4

RSG/Business Rates (153.7) (130.5) (110.9)

Council Tax (106.5) (106.5) (106.5) Collection Fund (2.5) (2.0) (2.0)

Savings requirement 0.0 (32.5) (27.7) Closing Balances 15.4 15.4 15.4

Council Tax increase (excl. GLA) 0.0% 0.0% 0.0%

Scenario 2 Council Tax frozen in 2014/15 and 2015/16, 1.0% increase in 2016/17. (Exemplified details in Annexe )

2014/15 2015/16 2016/17 £m £m £m

Net Spend 262.7 239.0 220.4






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Scenario 3 Council tax frozen 2014/15 then increasing at 1.0% per annum 2015/16 and 2016/17 (i.e. within the 2% threshold which triggers a council tax referendum)

2014/15 2015/16 2016/17 £m £m £m

Net Spend 262.7 240.1 221.5





Risks on funding The position in 2016/17 is still subject to considerable change. The base projection includes assumptions on grant losses based on national averages in the Comprehensive Spending Review (CSR). As the future of Local Government funding remains subject to a great degree of uncertainty the forecast gap for 2016/17 is subject to caveats and in particular could widen. The key factors contributing to the budget gap in future years are inflation, the ongoing loss of Government grants and service pressures. It is also clear to the local government finance community that the year following the 4-year CSR period (2015/16) will see further significant cuts in local government funding and a need to continue the programme of budget savings far beyond 2015/16. The MTFS model will continue to be updated as greater clarity is provided by the Government on their medium term funding plans and the results of the next major spending review expected in 2016. 12. SENSITIVITY ANALYSIS A small change in key underlying assumptions can produce a significant change in the budget. The key sensitivities are outlined below:

Sensitivity Change Annual impact Business rates income 1.00% £0.400m*

Pay award 0.25% £0.250m

Interest rates 0.25% £0.500m

*Council receives 30% of growth under new funding system


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For each budget adjustment of £1m, the impact on council tax is some £9.95 on Band D Council Tax or 0.94%. In terms of council tax sensitivity, for every 1% increase in the 2014/15 council tax additional £1.065m council tax revenue is raised and therefore for every 1% variation, a budget variation of £1.065m would be required. As with any plan spanning a number of years it is prudent to consider the associated risks. The Council, in common with most local authorities, continues to be at risk from financial pressures. They include:

Inflation differing from assumptions – directorates will be required to absorb inflation to help contribute to future years budget gaps

Growth pressures will only be provided for uncontrollable pressures

Interest Rates – variations due to economic factors

Changes in legislation affecting the costs of carrying out services

Reduction in fees & charges income

Requirement to increase use of Prudential Borrowing to fund capital spend

Any adverse claims experience increasing insurance premiums

Service demands exceeding resources available Provisions in the budget model Within the budget model is an annual provision for inflation (£3m in 2014/15 and also in both 2015/16 and 2016/17) which takes into account the following:

(i) General inflation – The inflation provision for 2014/15 is primarily needed to

cover general inflation. The general assumption is that services should first seek to cover inflation from their existing budgets, unless the Council is tied contractually to increases that require additional funding. Contractual inflation is included within specific budget proposals where necessary.

(ii) Pay inflation – The Government’s public sector pay cap sets out figures of

1% capped increase for 2013/14 and 2014/15. A 1% pay award broadly equates to an increase in costs of £1m.

Employer Pension Contribution The latest actuarial review of the pension fund was as at 31 March 2013 the outcome of which feeds into the budget from 2014/15. Based on the current value of the fund’s assets and liabilities along with other financial assumptions the actuary has made recommendations on the level of employer contributions for the three year period 2014/15 to 2016/17. Contribution rates over this period are in line with the level of contributions that had been anticipated by officers and had been factored into budget plans. The contribution for 2014/15 will remain at the same level as for 2013/14 and will then increase by £2.000m from 2015/16. The agreed repayment plan, which is over a recovery period of 17 years, includes a one off contribution of £6.8m from the HRA in respect of an additional deficit contribution following the


16

transfer of Ealing Homes staff back to the Council and £3.2m from general fund reserves. 13. CAPITAL PROGRAMME

The capital strategy (updated in February each year and set out in its own separate document for approval by Members) sets out a clear framework for funding and investment decisions in respect of capital assets, in the context of the Council's vision and priorities and its financial resources. All new projects are assessed in terms of their contribution to the Corporate Plan objectives and their priority in terms of scarce resources. The Council reviews its capital spending plans each year and sets a Capital Programme. Revenue expenditure is concerned with the day-to-day running of services and capital expenditure is a key element in the development of the Council’s services concerned with investment in the assets required to deliver services. Decisions on the capital programme have an impact on the revenue budget, for example, in relation to:

The revenue costs of financing capital, including prudential borrowing;

The ongoing running costs and upkeep of new assets such as buildings. The Council’s revenue and capital budgets are integrated with the financial impact of the proposed capital programme, which is reflected in the revenue estimates. The Council will only invest as long as its capital spending plans are affordable, prudent and sustainable. The key constraint on capital investment by the Council is the scope to afford the financial implications in terms of acceptable council tax levels and, in the case of the housing revenue account, acceptable rent levels. Members agreed on 29 November 2011 that any budget flexibility in 2012/13 and 2013/14 can be deployed as Revenue Contributions to Capital (RCCO) in those years and this opportunity of additional support for capital saves the Council borrowing. Every £1m deployed in this way saves £0.100m per year in capital financing costs. 14. VALUE FOR MONEY Delivery of VFM is one of the Councils five key priorities. The Council assesses and challenges the value for money provided by each service through the annual budget setting process. The Council’s Budget Review Process guidance for 2014/15 required that in seeking to deliver a balanced budget Cabinet Members would seek to identify efficiencies/savings that would not adversely impact on service delivery but to identify options that would improve value for money through improving performance and/or reduce service costs.


17

15. RISK MANAGEMENT Given the uncertainties of the economic environment and the scale of the expenditure reductions required, there are inevitably significant risks involved in delivering balanced budgets over the medium term. Key strategic risks are regularly reported to Audit Committee, most recently on 23 January 2014 and the Annual Budget setting report contains a detailed review of the risks to the MTFS. Since 2013/14, the balancing of the budget in-year depends upon the Council achieving its Business Rates projections. Monitoring of Business Rates income continues to be closely monitored by the Financial Strategy Group each month. The area of highest risk is represented by the continuing need to deliver significant cuts and efficiencies over the next three years. Robust and detailed plans will be required at an operational level to ensure that this risk is mitigated and savings are duly delivered. The risks on delivery of savings of the magnitude required will be mitigated by robust monitoring and financial control through the budget monitoring process, with action plans being required to find compensating savings for any overspendings identified. The Council is faced with an uncertain financial climate over the medium to long term which presents a high risk to the authority and there remains potential for further, as yet unrecognised, risks. For this reason, a prudent approach to the level of reserves held by the Council remains sensible and necessary. The Executive Director of Corporate Resources, as the Council’s Chief Finance Officer, is required to state whether the reserves are adequate as part of the annual budget setting process. 16 GENERAL FUND BALANCE As well as holding specific earmarked reserves, the Council holds the General Fund balance to cushion the impact of any unexpected events/emergencies. The forecast on the balance over the period of the MTFS is shown below:

2014/15

£m 2015/16

£m 2016/17

£m Brought Forward 15.4 15.4 15.4

Contribution to/from General Fund - - -

Carried Forward 15.4 15.4 15.4

The Executive Director of Corporate Resources reviews the level of the balance annually in relation to the overall financial position of the Council and the CIPFA guidance on Local Authority Reserves and Balances 2003 does not recommend any % level. The advice of the Executive Director of Corporate Resources as Section 151 officer is that the working balance of £15.4m is considered as the minimum level required as at 31 March 2014. This represents 5.9% of the non-schools net budget for 2014/15.


18

For 2014/15, as in 2013/14, the Council does not plan to use any of the general fund balance to support the budget. Using the balance to avoid making budget reductions would have the effect of delaying the requirement to deliver sustainable savings. There is an opportunity cost of holding a balance of £15.4m in terms of investing in services or limiting the council tax and this is offset by the flexibility that it allows the Council to deal with risk and adverse expenditure variations. Each £1m drawing on reserves would reduce Band D council tax by some £9.95 or 0.94%. 17. CONTINGENCY The Council needs to hold an adequate level of central contingency in the base budget as well as appropriate levels of reserves and balances. Each year when assessing the level of contingency the following are examples of the factors that are considered: -

Budget risks (e.g. delivery of savings of over £8.854m in 2014/15)

Financial risks arising from the recent welfare reform changes

Inflationary pressures

Demographic pressures

In year budget pressures on volatile and demand led budgets (e.g. social services placements)

Unexpected events

Current economic climate

New burdens The contingency figure presented in the draft budget is £3m for 2014/15, which is the same level as for 2013/14. For 2014/2015 there has been no automatic inflationary increase of budgets except where directorates have concluded that they are unable to contain specific inflationary pressures (e.g. on a number of our contracts where services are tied into specific contractual arrangements) and have submitted growth bids.


19

18. MONITORING AND REVIEW Cabinet receives regular budget update reports during the year on how the Council is progressing against its MTFS. The formal reporting process revolves around the timetabled reporting of budget monitoring to the Finance Strategy Group (FSG) and Cabinet. All processes and procedures relating to the monitoring of the budget are set out in the Council’s Financial Regulations. Body Activity Monitor and Review Corporate Finance

Co-ordinates the council’s budget setting process

Produces the monthly “finance monitor”

Delivery of planned savings

Finance Strategy Group (FSG)

Receives the monthly finance monitor

Delivery of planned savings via “savings tracker”

Progress against budgets

Financial health via key balance sheet items

Corporate Board

The monthly performance monitor

The monthly finance monitor

Performance on monthly basis via performance monitor

Finance on a monthly basis via finance monitor

Cabinet Quarterly performance report

Quarterly budget update

Performance

Progress against budgets

The strategy is published on the Council’s website and communicated to staff and stakeholders, for example, by publishing it on the Council’s website.


20

Annexe 1

2014/15 2015/16 2016/17£000 £000 £000

ExpenditureBase Budget Services 197,248 191,648 165,191

Savings from previous Budget Processes (6,129) (679) -

Savings from 2014/15 Budget Process (2,224) - -

Growth from Budget processes 539 (160) (37)

Other Service budget adjustments

(e.g. Adjustment of Education Service Grant; reallocation of

inflation; Adult Social Care growth virement).

(786) 3,848 2,000

Inflation 3,000 3,000 3,000

Savings requirement (denoted by brackets) - (32,466) (26,677)

Total Departmental Budgets 191,648 165,191 143,477

Below the line itemsLevies 29,255 30,320 31,558

Contingency 3,000 3,000 3,000

Treasury Management 39,967 42,392 42,708

Pensions Contributions provision 2,000 4,000 4,000

One-off C. Tax freeze grants (1,277) (2,333) -

New Homes Bonus (6,839) (6,209) (7,000)

Adult Social Care Growth - 1,000 1,000

Additional C. Tax collection costs (below-the-line) 200 200 200

Provision for NI liability from pension changes - 1,500 1,500

Transfer to Reserves 4,757 - -

Total Non-Departmental Budgets 71,063 73,870 76,966

Total Budget Requirement 262,711 239,061 220,443

FundingRSG / Business Rates * (153,673) (130,523) (110,840)

Collection Fund Surplus (2,500) (2,000) (2,000)

Council Tax Income (106,538) (106,538) (107,603)

Total Funding (262,711) (239,061) (220,443)

Taxbase 100,514 100,514 100,514

Band D Council Tax 1,059.93 1,059.93 1,070.53

Increase 0.0% 0.0% 1.0%

Medium Term Financial Strategy Forecasts - Summary (based on Scenario 2)


21

GLOSSARY OF TERMS Actuarial valuation An independent report of the financial position of the Pension Fund carried out by an actuary every three years. The actuary reviews the Pension Fund assets and liabilities as at the date of the valuation and makes recommendations such as, employer's contribution rates and deficit recovery period, to the Council. Baseline funding level The amount of a local authority’s start-up funding allocation which is provided through the local share of the estimated business rates aggregate (England) at the outset of the scheme as forecast by the Government. It forms the baseline against which tariffs and top-ups are calculated. Budget Requirement The Council’s revenue budget on general fund services after deducting funding streams such as fees and charges and any funding from reserves. (Excluding Council Tax, RSG and Business Rates) Capital expenditure Spend on assets that have a lasting value, for example, land, buildings and large items of equipment such as vehicles. This can also include indirect expenditure in the form of grants or loans to other persons or bodies. Capital Programme The Council’s plan of future spending on capital projects such as buying land, buildings, vehicles and equipment. Capital Receipts These are proceeds from the disposal of land or other assets and can be used to finance new capital expenditure but cannot be used to finance revenue expenditure. Capping This is the power under which the Government may limit the maximum level of local authority spending or increases in the level of spending year on year, which it considers excessive. It is a tool used by the Government to restrain increases in council tax. The Council Tax cap, currently 2%, means that any local authority in England wanting to raise council tax by more than 2% in 2014/15 must consult the public in a referendum, Councils losing a referendum would have to revert to a lower increase in their bills. CIPFA The Chartered Institute of Public Finance and Accountancy are one of the UK accountancy institutes. Uniquely, CIPFA specialise in the public sector. Consequently CIPFA holds the responsibility for setting accounting standards for local government.


22

Collection fund A statutory account maintained by the Council recording the amounts collected from council tax and Business Rates and from which it pays the precept to the Greater London Authority. Collection Fund surplus (or deficit) If the Council collects more or less than it expected at the start of the financial year, the surplus or deficit is shared with the major precepting authority, in Ealing’s case this is the GLA, in proportion to the respective council taxes. These surpluses or deficits have to be returned to the council taxpayer in the following year through lower or higher council taxes. If, for example, the number of properties or the allowance for discounts, exemptions or appeals vary from those used in the council tax base, a surplus or deficit will arise. The Council generally achieves a surplus, which is shared with the GLA. Contingency This is money set-aside centrally in the Council’s base budget to meet the cost of unforeseen items of expenditure, such as higher than expected inflation or new responsibilities. Corporate Finance This is the finance team at Ealing that leads the work on the Councils budget strategy, overall monitoring of the Council’s expenditure and production of the statutory annual accounts. Council Tax Base The Council Tax base for a Council is used in the calculation of council tax and is equal to the number of Band D equivalent properties. To work this out, the Council counts the number of properties in each band and works out an equivalent number of Band D equivalent properties. The band proportions are expressed in ninths and are specified in the Local Government Finance Act 1992. They are: A 6/9, B 7/9, C 8/9, D 9/9, E 11/9, F 13/9, G 15/9 and H 18/9, so that Band A is six ninths of the ‘standard’ Band D, and so on. The Council Tax Calculation The formal calculation of Ealing’s Council Tax involves several stages. Using 2013/14 as an example:

Budget Requirement £ 275,315,000 Minus

Revenue Support Grant Business Rates Retention Business Rates Top-up

£101,248,242 £38,298,396 £28,167,541

Minus

Surplus from the Collection Fund £2,010,000

Equals

The amount to be collected from council tax for 2013/14 £105,590,821

Divided by the council tax base 99,620.69

Equals

Band D Council Tax 2013/14 £1,059.93


23

To this the Council had to add the GLA Council Tax precept for 2013/14 of £303.00, giving the headline Band D Council tax of £1,362.93. CPI and RPI The main inflation rate used in the UK is the CPI (Consumer Price Index), the Chancellor of the Exchequer bases the UK inflation target on the CPI. The CPI inflation target is currently set at 2%. The CPI differs from the RPI (Retail Price Index) in that CPI excludes housing costs. Also used is RPIX, which is a variation on RPI, one that removes mortgage interest payments. Dedicated schools grant (DSG) This is the ring-fenced specific grant that provides most of the Government's funding for schools. This is distributed to schools by the Council using a formula agreed by the schools forum. Earmarked Reserves These balances are not a general resource but earmarked for specific purposes, held for example for the following reasons:

To provide resilience against future risks such as on government funding (e.g. Business Risk Reserve)

Smoothing impact of uneven expenditure between years (e.g. local elections)

Holding funds for future spending (e.g. Capital Expenditure financing reserve)

For renewal of operational assets instead of funding through annual budgets, (e.g. repairs & ICT)

Meeting future costs and liabilities (e.g. PFI reserves to allow future smoothing of annual payments)

To create policy capacity for one-off priority funding (e.g. Ealing Civic Improvement Fund)

Health and Safety reserves give the capacity to the Council to respond in an appropriate manner to urgent requirements arising, (e.g. asbestos removal)

Financial Regulations These are a written code of procedures set by a local authority, which provide a framework for the proper financial management of the authority. They cover rules for accounting and audit procedures, and set out administrative controls over the authorisation of payments, etc. Financial Year The local authority financial year commences on 1st April and finishes on the following 31st March. FSG Finance Strategy Group. This is the group composed of Ealing’s senior Finance officers that meets one a month to discuss finance polices and review the monthly “Finance Monitor” which presents the in-year financial forecasts.


24

General Fund This is the main revenue fund of the local authority, day-to-day spending on services is met from the fund. Spending on the provision of housing however, must be charged to the separate Housing Revenue Account (HRA). General Fund Balance This is the main unallocated reserve of the Council that is set aside to meet any unforeseen pressures. Currently this reserve represents around 5.9% of the non-schools budget. Gross Domestic Product (GDP) GDP is defined as the value of all goods and services produced within the overall economy. Gross expenditure The total cost of providing the Council's services, before deducting income from Government grants, or fees and charges for services. Housing Revenue Account (HRA) A separate account of expenditure and income on housing that Ealing must keep. The account is kept ring-fenced from other Council activities. The Government introduced a new funding regime for social housing within the HRA from April 2012. Individual authority business rates baseline This is derived by apportioning the billing authority business rates baseline between billing and major precepting authorities on the basis of major precepting authority shares. Levies A levy is an amount of money a local authority is compelled to collect (and include in its budget) on behalf of another organisation. Ealing is required to pay levies to a number of bodies such as the West London Waste Authority and the London Pensions Fund Authority. In 2013/14 these made up some 10.6% of the Council’s budget requirement. Local share This is the percentage share of locally collected business rates that will be retained by local government, currently 50%. At the outset, the local share of the estimated business rates aggregate will be divided between billing authorities on the basis of their proportionate shares. Ealing are required to split the 50% with the GLA, 30%, 20% respectively. Net Expenditure This is gross expenditure less services income, but before deduction of government grant.


25

National Non Domestic Rates (NNDR) Also known as ‘business rates’, Non Domestic Rates are collected by billing authorities such as Ealing and, up until 31 March 2013 were all paid into a central national pool, then redistributed to authorities according to resident population. From 2013/14 local authorities retain a “Local Share”, see above, the aim of which is to provide an incentive to help businesses set up and grow. New Homes Bonus Under this scheme Councils receive a new homes bonus (NHB) per each new property built in the borough for the first six years following completion. Payments are based on match funding the council tax raised on each property with an additional amount for affordable homes. It is paid in the form of an un-ringfenced grant. Precept The precepting authority’s council tax, which Ealing collects on behalf of the preceptor, the Greater London Authority (GLA). This precept for 2013/14 was £303.00 – the Mayor’s draft budget for 2014/15 proposes a precept of £299.00. Prudential Borrowing Set of rules governing local authority borrowing for funding capital projects under a professional code of practice developed by CIPFA to ensure the Council’s capital investment plans are affordable, prudent and sustainable. Revenue Expenditure The day-to-day running expenses on services provided by Council. Revenue Support Grant (RSG) All authorities receive Revenue Support Grant from central government in addition to its baseline funding level under the local government finance system. An authority’s Revenue Support Grant amount plus its baseline funding level together comprises its Settlement Funding Assessment. Section 151 officer Legally Councils must appoint under section 151 of the Local Government Act 1972 a named chief finance officer to give them financial advice, in Ealing’s case this is the post of Executive Director of Corporate Resources. Settlement Funding Assessment (SFA) A local authority’s share of the local government spending control total which comprises its Revenue Support Grant for the year in question and its baseline funding level (in 2013/14 this was called the Start-up funding allocation). Specific Grants As the name suggests funding through a specific grant is provided for a specific purpose and cannot be spent on anything else e.g. Education.


26

Spending Review The Spending Review is an internal Government process in which the Treasury negotiates budgets for each Government Department. The 2010 SR set government spending for the four financial years up to 2014/15, the 2013 SR set spending for a single year 2015/16. The next spending review is expected in 2016. Start-up funding allocation (SUFA) Refer to Settlement Funding Assessment. Tariffs and top-ups These are calculated by comparing an individual authority business rates baseline against its baseline funding level. Tariffs and top-ups were fixed at the start of the scheme in 2013/14 and are index linked to RPI in future years. Ealing is a ‘top-up’ authority. Treasury Management The process of managing the Council's cash flows, borrowing and cash investments to support Ealing’s finances. Details are set out in the Treasury Management Strategy which is approved by Cabinet and Full Council in February each year. Virement This is the transfer of budget provision from one budget head to another. A virement must be properly authorised by the appropriate committee (Cabinet) or by officers under delegated powers.

APPENDIX 2A: SAVINGS TO BE APPROVED

*Savings are shown as negative figures

Ref No. Specific Service Area Headline Description re: saving / reduction

2013/14 Service Budget

2014/15 2015/16 Total

Savings Type:M - Management SavingsI - Additional IncomeC - Contractual SavingsE - Efficiency SavingsS - Service Changes

(4) (5) (6) (7)£000 £000 £000 £000

REGENERATION & HOUSING

1 Cross-Directorate One off saving to be met from vacancy management and contract management efficiencies in 2014/15 1,988 (150) 150 - E

(150) 150 -

2 Planning and Planning Policy Freezing of 1.25 FTE vacant posts in 2014/15 in anticipation of a service restructure in 2015/16 2,270 (62) - (62) M

3 Planning Increase in property market related income target due to expected increase in demand (1,375) (68) - (68) I

(130) - (130)

ENVIRONMENT & CUSTOMER SERVICES

4 Highways LED Street Lighting – reduced energy and maintenance costs as a result of upgrading to more energy efficient lighting units. 1,241 - (353) (353) E

- (353) (353)

CHIEF EXECUTIVE

5 P & P Directorate Service to be supported by the appropriate use of Grant funding during 2014/15 (one-off saving) 624 (70) 70 - E

(70) 70 -

(350) (133) (483)

(8)

BUILT ENVIRONMENT

ENVIRONMENT & LEISURE

POLICY & PERFORMANCE

TOTAL SAVINGS TO BE APPROVED

(1) (2) (3)

PROPERTY & REGENERATION

27

APPENDIX 2B: SUMMARY OF SAVINGS ALREADY APPROVED 2014/15 - 2016/17*

NB: Savings are shown as negative figures 2014/15 2015/16 TOTAL

Directorate DEPARTMENT £'000 £'000 £'000

Children & Families (1,539) - (1,539)

Adults Services (1,343) - (1,343)

TOTAL CHILDREN & ADULTS (2,882) - (2,882)

Housing General Fund (162) - (162)

Safer Communities (77) - (77)

Property & Regeneration (144) - (144)

Built Environment (50) - (50)

TOTAL REGENERATION & HOUSING (433) - (433)

E&CS Management (98) - (98)

Customer Services (971) - (971)

Environment & Leisure (515) (370) (885)

Parking (411) (156) (567)

TOTAL ENVIRONMENT & CUSTOMER SERVICES (1,995) (526) (2,521)

Finance (1,136) 150 (986)

Legal & Democratic Services (45) - (45)

Business Services (1,693) - (1,693)

Human Resources (230) (40) (270)

TOTAL FINANCE & AUDIT (3,104) 110 (2,994)

Marketing & Communications (70) - (70)

Policy & Performance (10) - (10)

Chief Executive (10) - (10)

TOTAL CHIEF EXECUTIVE (90) - (90)

Housing Benefit - - -

Council Wide - - -

Combined LBE Totals (8,504) (416) (8,920)

* No savings have been approved to date for 2016/17

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28


2014/15 2015/16 Total

£'000 £'000 £'000 £'000

(1) (3) (4) (5) (6) (7) (8) (9)

CHILDREN & ADULTS DIRECTORATE

CHILDREN'S SERVICES

1Ealing Services for Children with Additional Needs

Expanding Therapeutic Short Breaks. The proposal is to expand the existing ITS which has successfully prevented residential placements for young people with learning disabilities and challenging behaviours through intensive clinical psychology and the use of short breaks. The additional funding will enable the service to expand to work with Looked After Children or children on the edge of being looked after who are likely to require residential care or are part of a large sibling group. The funding will allow the service to work with 8 families and could generate a potential saving of £1m.

TBC (1,185) - (1,185) E

2 Safeguarding & Support

Think Family PlusSavings realised from the Troubled Families programme - additional funding through payments by results

- (100) - (100) I

3 Performance Adults & Children's Performance TeamDeletion vacant post 293 (36) - (36) E

4 Training Adults & Children's Social Care TrainingRationalisation of training programme,use of joint commissioning of training 789 (50) - (50) E

5 ESCAN Short Breaks CommissioningEfficiencies in commissioned services will ensure offer of services to end users is maintained. 200 (25) - (25) E

6 Life Chances Horizons CentreEfficiencies from supplies and services and premises budgets through more effective procurement. 152 (15) - (15) E

7 Early YearsEarly YearsEfficiencies in Early Years. Changes to ICAN funding £106k, income generation £19k, restructuring to standardise EY provision across providers £100k.

3,881 (225) - (225) E

8 Public Health Commissioning - Income for Health PromotionTransfer of funding to support Children and Adults integrated commissioning functions - (50) - (50) E

9 CommissioningParentingReduction in commissioned parenting courses, impact mitigated by introdcution of Think Family + programme.

341 (25) - (25) E

10 Schools ServiceSchools Service Efficiency SavingsAcross Planning & Resources and Performance. Phased retirements £50k, reduced agency staff £15k, increased flexibility in grant income £78k.

696 (143) - (143) E

11 Early Intervention Grant

Early Intervention Grant saving This formed part of the £1m saving in 2013/14 arising as a result of the reduction in EIG funding. This element was funded from a one off grant received for 2013/14 only. As a result replacement savings of £0.161m are required in 2014/15 to meet the 2014/15 cash limit. The savings identified above incorporate this additional requirement.

1,593 161 - 161 I

12 Cross Cutting

Standards Fund Grant Allocation - use of one-off windfall grant that DfE originally top-sliced in 10/11 but have since informed us they will pay back to us. Services had been wound down in anticipation of deletion of funding from 11/12 onwards so this one-off sum can be used to support revenue savings.

1,200 154 - 154 I

Sub-total Children's Services (1,539) - (1,539)

Flavours Analysis

M - Management SavingsI - Additional IncomeC - Contractual SavingsE - Efficiency SavingsS - Service Changes


29


2014/15 2015/16 Total

£'000 £'000 £'000 £'000

(1) (3) (4) (5) (6) (7) (8) (9)

Flavours Analysis



ADULTS

13 Supporting People Efficiencies from Future call off of WLA Framework for Supporting People - jointly procured services across all areas 6,105 (250) - (250) C

14 Older People Staffing efficiencies related to new models in Health and Social Care 2,709 (175) - (175) M

15 Older People Staffing efficiencies - result of further redesign of some back office functions 222 (30) - (30) M

16 Adults Cross Cutting

Contractual Efficiencies identified relating to specific providers - through the use of the Care funding Calculator, in order to provide better value for money 1,880 (190) - (190) C

17 Adults Cross Cutting

WLA Efficiencies - incentivising homecare providers to make better use of telecare where appropriate 31,704 (23) - (23) E

18 Mental Health Review of Mental Health Customers currently subject to S117 of the Mental Health Act - cessation of S117 status directly resulting in increased income from charging. 3,120 (75) - (75) I

19 Mental Health Post required to carry out S117 reviews 3,120 22 - 22 I

20 Business Management

Business Management Staff RestructureRestructure in teams resulting in a deletion of two posts 1,443 (75) - (75) M

21 Commissioning Commissioning - Income for Health Promotion Transfer of funding to support Children and Adults integrated commissioning functions 308 (50) - (50) E

22 Older People Management Efficiencies in Reablement ServiceDeletion of one post 2,439 (32) - (32) M

23 Older People Management Efficiencies in Hospital Social Work TeamDeletion of three posts from this team 802 (132) - (132) M

24 Supporting People Efficiencies from call off from WLA Supporting People FrameworkReviewing contractual arrangements 5,425 (160) - (160) C

25 Disabilities Management Efficiencies in Choice Supported Housing ServiceDeletion of one post 882 (35) - (35) M

26 Disabilities Increased use of lifting equipment in Homecare ServiceReduction in the number of 'double up' homecare visits 11,512 (103) - (103) E

27 Mental Health Management Efficiencies in Mental Health Management SupportDeletion of one team manager post 459 (35) - (35) M

Sub-total Adults (1,343) - (1,343)

Total Children & Adults (2,882) - (2,882)

30


2014/15 2015/16 Total

£'000 £'000 £'000 £'000

(1) (3) (4) (5) (6) (7) (8) (9)

Flavours Analysis



REGENERATION & HOUSING DIRECTORATE

HOUSING GENERAL FUND

28 Housing Demand Efficiency Savings - Reduction in the use of agency and consultancy staff within Housing Demand 3,078 (46) - (46) E

29 Cross DepartmentIncreased recharge of Safer Communities Activities to the HRA - to reflect true cost of additional duties carried out by Safer Communities officers as a result of the Council being the responsible landlord

3,744 (111) - (111) E

30 HMO Homes in Multiple Occupation licences - Increase in licence fees income (160) (5) - (5) I

Sub-total Housing General Fund (162) - (162)

SAFER COMMUNITIES

31 Community Safety Management Restructure - delete Head of Service post 1,155 (77) - (77) M

Sub-total Safer Communities (77) - (77)


32 Property Advertising Hoardings - income from renting land for advertising 681 (75) - (75) I

33 PropertyAdvertising Hoardings - It is proposed to generate additional income by renting out Council land in prime roadside locations for the erection of advertising hoardings. This will be subject to appropriate planning and highway approvals.

621 (25) - (25) I

34 Grants Reduction in the Grants Budget due to a reduction in the levy to London Councils for the London Borough Grants Scheme 444 (44) - (44) E

Sub-total Property & Regeneration (144) - (144)

BUILT ENVIRONMENT

35 Transport Efficiency Savings - Reduction in supplies and services and contractual services budgets 800 (20) - (20) E

36 Planning Efficiency Savings - Increase in commercial pre-application fees budget and reduction in supplies and services budgets 1,097 (20) - (20) E

37 Local Land Charges

Introduction of a re-charge to the Local Land Charges Service - in respect of support given by Planning and Building Control (230) (10) - (10) I

Sub-total Built Environment (50) - (50)

Total Regeneration & Housing (433) - (433)

31


2014/15 2015/16 Total

£'000 £'000 £'000 £'000

(1) (3) (4) (5) (6) (7) (8) (9)

Flavours Analysis



ENVIRONMENT & CUSTOMER SERVICES DIRECTORATE

ENVIRONMENT & CUSTOMER SERVICES MANAGEMENT

38 Major Projects Community Centres - Operational saving following delivery of the Property Strategy. 385 (91) - (91) M

39 Cross Area Review Cost Reductions in Supplies & Services Reduction in the training and minor supplies budgets in Neighbourhood Governance, Major Projects and Civil Protection. 1,000 (7) - (7) E

Sub-total Environment & Customer Services Management (98) - (98)

CUSTOMER SERVICES

40 CS Operations Explore opportunities for outsourcing contact services. 3,473 (250) - (250) M

41 Housing Benefits Home working - introducing additional home working in Housing Benefits services. This is IT dependent. 1,012 (14) - (14) E

42 Arts, Heritage & Libraries Reduce subsidy in Pitzhanger Manor 527 (40) - (40) E

43 CS Operations New methods of service delivery. Saving to be achieved by either -Much greater use of automation. 3,473 (339) - (339) E

44 CS OperationsImplementation of channel shift, including encouraging customers to use more cost effiective channels, rolling out more automated services including auto voice recognition, interactive e-forms and the introduction of simplified processes

3,473 (60) - (60) E

45 LibrariesStock Management and Home Library Service - more efficient and cost effective ways of procuring Library stock and delivering the Home Library service. This saving was originally approved November 2011, to take effect 1.4.2013. This has beenn reprofiled for 1.4.2014.

3,113 (80) - (80) E

46 CS Operations Reducing the Customer Services Resource for Acton Town Hall (linked to Environment & Leisure growth bid for Acton Town Hall). 1,786 (66) - (66) E

47 CS Operations

Customer Services Operations review of management numbers, as staffing numbers decrease as customers have increased opportunities to self serve and we reduce the direct contact facilities the number of team/operations managers will need to be reviewed, likley reduction will be within the face face area.

3,196 (30) - (30) M

48 CS Operations Customer Services Operations efficiencies - through increased use of self-serve and other effceincy actions within Telephony, this will enable the reduction in resources. 3,196 (27) - (27) E

49 Arts Heritage & Libraries

Libraries Services Contract - release of savings in addition to previously approved £233k (as a result of final contract price - no change of service scope). 2,900 (65) - (65) C

Sub-total Customer Services (971) - (971)

32


2014/15 2015/16 Total

£'000 £'000 £'000 £'000

(1) (3) (4) (5) (6) (7) (8) (9)

Flavours Analysis



ENVIRONMENT & LEISURE

50 Leisure Negotiate with GLL to reduce management fee 255 (50) - (50) C

51 Highways LED Lighting unit changes - reduced energy and maint costs (220) - (220) E

52 E&L

Five-a-side football, Rectory Park -A development opportunity for the establishment of a football centre in Rectory Park is mentioned in the Council’s Core Strategy and will be implemented. Funding for the development to be sourced externally.

3,750 - (20) (20) I

53 E&L Textile Recycling Options - The council has signed a contract with The Salvation Army to manage 57 textile banks around borough for a fee of £25k per annum. (195) (25) - (25) I

54 E&L Reduced cost of waste disposal following West London Waste Authority procurement of new disposal facilities. - - (250) (250) E

55 E&L Charging for Schools recycling collection - Under the Environmental Protection Act 1990, waste from schools is classified as household waste for which a charge for ‘collection’ can be made. 156 (50) - (50) I

56 E&L Review sports development - reduce subsidy: By entering into partnership work with the PCT the subsidy to the sports Development service will reduce creating a savings of £75k in 2015-16 194 - (25) (25) I

57 E&LGrounds maintenance at Warren Farm - Warren farm is covered by ground maintenance contracts with Enterprise, the proposed development will transfer maintenance to QPR Foot Ball Club, which will provide a savings on the current contract cost.

3,750 - (75) (75) C

58 Street Services Commercial Waste Re-alignment of income and expenditure budgets to reflect current service costs. 1,000 (100) - (100) E

59 Street Services Re-Tender Stray Dog Contract Move to a fully contracted stray dog collection service. 120 (20) - (20) C

60 Greenford Depot Additional Rental Income from Greenford Depot Uplift of £50k per annum in the Greenford Depot income target to reflect current income generation. 930 (50) - (50) I

Sub-total Environment & Leisure (515) (370) (885)

33


2014/15 2015/16 Total

£'000 £'000 £'000 £'000

(1) (3) (4) (5) (6) (7) (8) (9)

Flavours Analysis



PARKING

61 Parking Efficiency savings from parking enforcement contract (NSL). 3,113 (120) - (120) E

62 P&D Dual Use bays in selected CPZ zones to facilitiate visitor parking. - (25) - (25) I

63 Parking New CPZ schemes 1,598 (30) - (30) I

64 ParkingAchieved through implementing an intelligent deployment profile, so that the numbers of Civil Enforcement Officers (CEOs) deployed throughout the day are varied to reflect volumes of infringements.

2,977 (25) - (25) C

65 Parking Springbridge permits - Currently Parking Season Tickets at Springbridge Road are charged at £600 pa. It is recommended to increase these by £50 each year for the next 3 years. (250) (6) (6) (12) I

66 Parking

Increase in contribution to concessionary fares.Increasing efficiency within Parking Services has enabled Parking Services to post surpluses into the Parking Places Reserve Account for two successive years (2010/11 and 2011/12).It is anticipated that continuing technological advances will allow further efficiency savings. The extra savings outlined in this proposal will contribute towards the Council’s payment for concessionary fares.

7,459 (150) (150) (300) E

67 Parking

Introduce Carer's Permit @ £45 (to replace vistors vouchers for people providing care services) andAll Zone Permits @ £1,500(to enable holders to park in any pay and display bay throughout the Borough, both on and off street)

2,942 (20) - (20) I

68 Parking Remove unnecessary P&D Machines - maintenance and cash collection saving 102 (10) - (10) E

69 Parking Increase income from parking bay suspensions from current rate of £17 to £20/day. 254 (25) - (25) I

Sub-total Parking (411) (156) (567)

Total Environment & Customer Services (1,995) (526) (2,521)

34


2014/15 2015/16 Total

£'000 £'000 £'000 £'000

(1) (3) (4) (5) (6) (7) (8) (9)

Flavours Analysis



CORPORATE RESOURCES DIRECTORATE

FINANCE & AUDIT

70 Revenues Additional revenue raising activities to the Collection Fund (incl. Single Person Discount Review and identification of additional properties and student discount review). 1,797 (26) - (26) I

71 Corporate Finance Finance review savings. 2,007 (250) - (250) M

72 Revenues Increased income to Collection Fund from Council Tax friom the removal of discretionary discounts for second homes and empty properties 810 (325) - (325) I

73 Revenues One off saving from review of NNDR balance sheet balances 810 (100) 100 - I

74 Corporate Management Savings arising from Banking LEAN review to be carried out in 2014/15 700 (40) - (40) E

75 Treasury Increased income from improving Treasury yields as return on investments increases 1,728 (50) - (50) I

76 Revenues Overpayments fees revenues- Improve collections of Housing Benefit Overpayments 1,210 (20) - (20) I

77 Finance wide Income generation from provision of finance service to external partners 5,405 (81) - (81) I

78 Finance wide Efficiencies in non-staffing budgets (removal of risk and recruitment budgets) 39 (24) - (24) E

79 Chief Executive's Office Review of vacant posts 377 (21) - (21) I

80 Finance Reduction to Supplies and services budgets (One-off saving) 1,526 (50) 50 - E

81 E&CS Finance Finance Review outcomes - Indicative saving pending the result of the Finance Review 589 (50) - (50) M

82 R&H Finance (Cross Directorate) Review of Finance- Savings to be achieved from the current review of Finance - (83) - (83) M

83 R&H Finance (Cross Directorate) Regeneration & Housing Finance - Savings from the Finance review 554 (16) - (16) E

Sub-total Finance & Audit (1,136) 150 (986)

LEGAL & DEMOCRATIC

84 Committees Reduce Committee Administration Printing costs 53 (26) - (26) E

85 Committees Reduce Committee Administration Hire of Halls costs 30 (7) - (7) E

86 Democratic Services Reduce Democratic Services Training costs 17 (7) - (7) E

87 Democratic Services Reduce Member Services Training costs 17 (5) - (5) E

Sub-total Legal & Democratic (45) - (45)

35


2014/15 2015/16 Total

£'000 £'000 £'000 £'000

(1) (3) (4) (5) (6) (7) (8) (9)

Flavours Analysis



BUSINESS SERVICES GROUP

88 Business Services Group

Accommodation/Property rationalisation strategy - Consolidation of accommodation on a smaller number of sites to reduce costs, improve secure remote working facilities and maximise workspace at Greenford Business Centre and Perceval House

17,612 (1,133) - (1,133) E

89 BSG One Agresso - hosted service. Reduction in Serco Support costs. 8,023 (75) - (75) C

90 BSG Increased income - Architectural and Building Technical Services, services to Schools - Procurement and increased TFM, Payroll/OH LATCO or similar for GBSC and H&E Consultancy. 7,613 (200) - (200) I

91 Business Services Savings from suppliers (review of suppliers to identify efficiencies) 16,017 (75) - (75) E

92 Business Services Staff and management efficiencies 16,017 (210) - (210) M

Sub-total Business Services Group (1,693) - (1,693)

HUMAN RESOURCES

93i 2,412 (50) - (50) E

93ii 105 50 (50) - E

94 HR Cease spend on leadership development, reflecting proposed decrease in number of senior managers (in addition to £30k agreed by Cabinet) 748 (50) - (50) M

95 HR Reduce Corporate Learning Budget 748 (80) - (80) E

96 HR Withdraw from cross Borough Leadership Academy after Cohort 3 (High potentials programme in line with Workforce Strategy objective on succession planning) 748 (30) - (30) E

97 POD Reduce Learning & Development Budget 816 (25) - (25) S

98 Core HR Reduction in non-staff costs: Supplies, Services and Printing 97 (35) - (35) E

99 HR Reduction to Supplies and services budgets. 97 (10) 10 - E

Sub-total Human Resources (230) (40) (270)

Total Corporate Resources (3,104) 110 (2,994)

Reduce Trade Union facilities budget - to reflect lower number of staff employed.

This saving was originally by Cabinet for 2014/15 in the report on 27 November 2012 (row 93i). On 26 November 2014, Cabinet approved the substitution of this saving with an alternative (see row 80) and the reprofile of this saving to the following year (row 93ii)

Core HR

36


2014/15 2015/16 Total

£'000 £'000 £'000 £'000

(1) (3) (4) (5) (6) (7) (8) (9)

Flavours Analysis



CHIEF EXECUTIVE DIRECTORATE

MARKETING & COMMUNICATIONS

100 MarComms Increased income from Marketing & Communications services including providing consultancy, selling advertising, and charging fees for filming. 1,216 (50) - (50) I

101 Around Ealing Budget for Around Ealing will be reduced to zero and all costs will be covered by recharges. 15 (15) - (15) E

102 MarComms Projects Generate additional income from Consultancy to other organisations. - (5) - (5) I

Sub-total Marketing & Communications (70) - (70)


103 Policy and Performance

Reduction in budget provision for special projects 169 (10) - (10) E

Sub-total Policy & Performance (10) - (10)

CHIEF EXECUTIVE

104 Chief Executive Reduction in Chief Executive Projects budget 257 (10) - (10) E

Sub-total Chief Executive (10) - (10)

Total Chief Executive Directorate (90) - (90)

GRAND TOTAL (8,504) (416) (8,920)

SUMMARY BY SAVINGS TYPE: M I C E S TOTAL

DIRECTORATE £'000 £'000 £'000 £'000 £'000 £'000

CHILDREN & ADULTS (514) 162 (600) (1,930) - (2,882)

REGENERATION & HOUSING (77) (115) - (241) - (433)

ENVIRONMENT & CUSTOMER SERVICES (371) (282) (235) (1,633) - (2,521)

CORPORATE RESOURCES (643) (723) (75) (1,528) (25) (2,994)

CHIEF EXECUTIVE - (55) - (35) - (90)

TOTAL (1,605) (1,013) (910) (5,367) (25) (8,920)

% TOTAL 18.0% 11.4% 10.2% 60.2% 0.3% 100.0%

37

* Please Note, all COSTS shown as POSITIVE

B8 Growth Summary 2014/15 (Full or Part

Year)

2015/16 (Full Year)

2016/17 (Full Year)

TOTAL 3 YEARS

Directorate Department £'000 £'000 £'000 £'000

Children Services - - - -

Adults Services - - - -

TOTAL CHILDREN & ADULTS - - - -

Housing (General Fund) - - - -

Safer Communities 86 - - 86

Property & Regeneration - - - -

Built Environment - - - -

TOTAL REGENERATION & HOUSING 86 - - 86

E&CS Management 57 - (37) 20

Customer Services 60 - - 60

Environment & Leisure 35 - - 35

Parking - Off Street - - - -

Parking - - - -

TOTAL ENVIRONMENT & CUSTOMER SERVICES 152 - (37) 115

Finance & Audit - - - -

Legal & Democratic Services - - - -

Business Services - - - -

Human Resources - - - -

TOTAL FINANCE & AUDIT - - - -

Marketing & Communications - - - -

Policy & Performance - - - -

Chief Executive - - - -

TOTAL CHIEF EXECUTIVE - - - -

Housing Benefit - - - -

Council Wide - - - -

Totals 238 - (37) 201

Chi

ef

Exec

utiv

e

APPENDIX 2C: Growth Proposals approved by Cabinet 2014/15 - 2016/17C

hild

ren

& A

dults

Reg

ener

atio

n &

H

ousi

ngEn

viro

nmen

t &

Cus

tom

er S

ervi

ces

Cor

pora

te

Res

ourc

es

38

Appendix 2C - Growth already approved by Cabinet

* Please Note, all COSTS shown as POSITIVEFlavours Anlaysis

Unique Reference

Nos.Service Area Headline and brief description re: Budget Growth Bids 2013/14

Service Budget

2014/15 (Full or Part Year)

2015/16(Full Year)

2016/17 (Full Year)

TOTAL 3-YEAR

GROWTH

I - Reduced IncomeC - Contractual GrowthO - Other GrowthS - Service Changes

(1) (2) (3) (4) (5) (6) (7) (8)

£000 £000 £000 £000 £000


1 Regulatory Services

Food Safety Team - Increase in 1 FTE to improve service delivery and enable the Council to comply with its statutory duties.

347 43 - - 43 O

2 Regulatory Services

Private Sector Housing - Increase in 1FTE to improve service delivery and meet the increase demands of the growing private rented sector

298 43 - - 43 O

86 - - 86

REGENERATION & HOUSING TOTAL GROWTH 86 - - 86


3 Community Centres Community Centres - address shortfall in maintenance, rates and utilities budgets 421 20 - - 20 O

6 Civil Protection Civil Protection Coordinator - enhanced capacity for 2 yrs to 2015/16 176 37 - (37) - S

Environment & Customer Services Management Sub-total 57 - (37) 20

4 Customer Services Channel Shift Project Manager 397 60 - - 60 S

60 - - 60

5 HighwaysTransport for London (TFL) Traffic Control & Maintenance Charges - increase in costs charged by TFL for maintaining the Borough's traffic lights and signals due to increase in the number of units maintained and contract inflation.

434 35 - - 35 C

35 - - 35

ENVIRONMENT & CUSTOMER SERVICES TOTAL GROWTH 152 - (37) 115

238 - (37) 201TOTAL GROWTH TO BE APPROVED BY CABINET

Budget Growth Bid - 3 Years

Safer Communities

Safer Communities Sub-total

Environment & Customer Services Management

Customer Services

Customer Services Sub-total

Environment & Leisure

Environment & Leisure Sub-total

39

APPENDIX 3: PROPOSALS IN DEVELOPMENT

(A) PROPOSALS IN DEVELOPMENT TO BE RE-PROFILED


(1) (2) (3)


1 Property Rent Subsidy - review rent subsidy policy

CHIEF EXECUTIVE

2Policy &

Performance Directorate

Review of staffing and non-staffing budgets

(B) OTHER PROPOSALS IN DEVELOPMENT TO BE NOTED


3 Community Centres

Community Centres - review provision and operating models to enable a reduction in the overall subsidy, looking at items such as leases, in accordance with the draft Community Centre strategy.

CORPORATE RESOURCES

4 HR Reduce Trade Union facilities budget

ENVIRONMENT & CUSTOMER SERVICES MANAGEMENT


HUMAN RESOURCES


40

Appendix 4: Grants Schedule

Recipient Service Awarding Body Grant 13/14 14/15 Variance Notes

£m £m £m

Childrens and Families DfE Intensive Evidence Based Programme (KEEP Fostering) 0.200 TBC n/a Not confirmed for 14/15

Childrens and Families HO Unaccompanied Asylum Seeking Children 0.377 TBC n/a Funding is based on claims made in arrears. Current forecast used for 13/14 value.

Childrens and Families YJB Youth Justice Grant 0.502 0.427 (0.075) 2014/15 is forecast only, based on a forecast reduction of 15%

Childrens and Families DfE SEND Reforms 0.075 TBC n/a Not confirmed for 14/15

Childrens and Families MOPAC YOS MOPAC Youth Crime & Substance Misuse Prevention 0.200 TBC n/a Not confirmed for 14/15

Childrens and Families Russell Commission Vinspired 0.078 TBC n/a Not confirmed for 14/15

Childrens and Families DfE Adoption Reform Grant 1.030 TBC n/a Not confirmed for 14/15

Childrens and Families YJB YJ Reform - Remand 0.258 TBC n/a Not confirmed for 14/15

Childrens and Families DfE Pupil Premium - Looked after Children/PVI/PRU 0.353 TBC n/a Based on census information. 2014/15 data will not be confirmed until late 2014.

Childrens and Families DCLG Troubled Families 0.978 0.295 (0.683) 2014/15 figure is forecast only at this stage

Childrens and Families DCLG Troubled Families PBR 0.100 TBC n/a Based on in year claims in arrears. Current forecast used for 2013/14.

Schools PFS Private Finance Initiative 11.930 11.930 0.000

Schools ACE Music Services 0.355 0.361 0.006 As per Arts Council England - Grant schedule of payments to Ealing Music Hub 2012-2015.

Schools HEFCE Inherited Staff Laibilities Grant Higher Education Funding Council 0.026 0.026 0.000

Schools DfE Education Funding Agency Post 16 & Bursary Fund 12.967 TBC n/a

Schools DfE Pupil Premium 11.655 TBC n/a

Schools DfE Additional Grant For Schools (AGS) 0.692 TBC n/a £44k Secondary Sch & £648k Primary Sch PE Teacher Release Sports funding

Schools DCLG Extended Rights and General Duty to Promote Sustainable Travel 0.026 0.017 (0.009) As confirmed by DCLG

Schools DfE Education Services Grant (ESG) 5.829 5.786 (0.043) In 2014/15, Ealing’s provisional allocation of ESG is £5.786m but this will reduce if any further schools convert to Academies in 2014/15.

Schools DoH Nursery Milk Reimbursement Grant TBC TBC n/a Dependant on actual amount consumed - details will not be available until close of accounts.

Adults DoH / DCLG Adults' Private Finance Initiative 1.839 1.839 0.000

Adults DoH Local Reform and Community Voices Grant 0.248 0.256 0.008 This is a new specific grant but partially made-up from existing funding and/or funding for new responsibilities for Local Authorities e.g. Healthwatch.

Adults NHS England Better Care Fund 5.073 6.497 1.424 Funding for health and social care services to work more closely together in local areas, based on plans agreed between the NHS and local authorities.

54.791 n/a n/aSubTotal

41

Recipient Service Awarding Body Grant 13/14 14/15 Variance Notes

Environment and Leisure DfT Housing Benefit: Main administration subsidy 2.628 2.240 (0.388) Subsidy no longer covers processing of Council Tax support claims

Customer Services DWP Council Tax Support - Admin subsidy 0.000 0.495 0.495 Grant to support processing CTS claims now provided by DCLG.

Customer Services DWP Housing and CTax Benefit: Additional administration subsidy (recession support) 0.140 0.000 (0.140) Recession support, no longer provided.

Customer Services DWP Adult Learning 0.609 0.615 0.006

Customer Services DWP Local Welfare Provision Payments 0.867 0.867 0.000

Customer Services DWP Local Welfare Provision Administration 0.183 0.168 (0.015)

Customer Services DWP Discretionary Housing Payments 3.127 3.028 (0.099)

Customer Services DfT PFI Highways Grant 2.036 2.036 0.000

9.590 9.449 (0.141)

Property and Regeneration DCLG Neighbourhood Planning Grant 0.058 TBC n/a Not confirmed for 14/15

Housing / Built Environment DoH Warmer Homes Healthy People Fund 0.020 0.000 (0.020)

Safer Communities HO Community Safety Grant 0.699 TBC n/a Not confirmed for 14/15

Safer Communities GLA Rape Crisis Centre 0.155 TBC n/a Not confirmed for 14/15

Safer Communities HO Preventing Violent Extremism 0.083 TBC n/a Not confirmed for 14/15

Safer Communities DEFRA Air Quality 0.029 TBC n/a Not confirmed for 14/15

1.044 n/a n/a

Corporate Resources DWP Contribution for Collecting NNDR 0.517 0.517 0.000 2014/15 based on current forecast, still subject to confirmation

Corporate Resources DWP Pursuit of Beneifts Fraud 0.208 0.196 (0.012)

Corporate Resources CO Funding for the move to Individual Electoral Registration (IER) 0.043 TBC n/a

0.768 n/a n/a

Overall Total 66.194 n/a n/a

Public Health DoH Public Health Grant 21.376 21.954 0.578 To fund the Public Health responsibilities transferred from NHS to local authorities

Housing Benefits LSC Housing Benefit Subsidy 267.397 272.761 5.363 2013/14 will be higher than 2014/15 as it is a 53 week year, however2014/15 will reflect full year impact of the Benefit caps.

Devolved Schools Grants DfE Dedicated Schools' Grant (DSG) 259.714 TBC n/a As announced by DfE

548.487 n/a n/a

DfE - Department for Education HEFCE - Higher Education Funding Council for EnglandHO - Home Office DoH - Department of HealthYJB - Youth Justice Board DfT -Department for TransportMOPAC - Mayor's Office for Policing and Crime DWP - Department of Work and PensionsPfS - Partnerships for Schools GLA - Greater London AuthorityDCLG - Department for Communities and Local Government DEFRA - Department for Environment Food and Rural Affairs

CO - Cabinet OfficeLSC - Learning and Skills Council

ACE - Arts Council England

SubTotal

SubTotal

SubTotal

SubTotal

42

Appendix 4: Grants Schedule

Appendix 5: Treasury Management Strategy Statement, MRP Strategy and Annual Investment Strategy 2014/15

1 Introduction

1.1 The Council is required to operate a balanced budget, which broadly means that cash raised during the year will meet cash expenditure. In pursuit of this objective, the Council operates a Treasury Management Function which incorporates the management of the Council’s cash flows, lending and borrowing activities and the control management and mitigation of the risks associated with these activities. The treasury management function also facilitates the planning of the funding of the Council’s capital programme. The Capital plan drives the borrowing barometer for the Council, and enables officers to determine whether to borrow for longer or shorter durations. Debt can also be restructured to mitigate risk or to reduce borrowing costs if deemed appropriate.

1.2 The Local Government Act 2003 (the Act) and supporting regulations requires the

Council to ‘have regard to’ the Chartered Institute of Public Finance and Accountancy’s (CIPFA) Prudential Code and the CIPFA Treasury Management Code of Practice to set Prudential and Treasury Indicators for the next three years to ensure that the Council’s capital investment plans are affordable, prudent and sustainable.

Reporting Requirements

1.3 By virtue of affording the treasury management Code of Practice statutory backing, the Act requires the Council to produce as a minimum three key reports which incorporate a number of policies, forecasts and outturns.

Treasury Strategy, Prudential and treasury indicators, a requirement fulfilled by the production of the report. The report covers:

capital plans (including prudential indicators),

minimum revenue provision (MRP) policy (the statutory methodology adopted for levying revenue charges for the cost of borrowing),

the treasury management strategy (how investments and borrowing activities are to be directed managed and controlled),

and the investment strategy (sets out the remit within which investment activities are managed).

A mid-year report which updates members on treasury progress, the capital position, the prudential indicators and whether any strategies or policies require revision.

An annual treasury report – which provides the outturn on the prudential and treasury indicators and the actual operation of the treasury management function as compared to the strategy.

Scrutiny

1.4 The code requires scrutiny of the treasury management strategy and policies to be delegated by the Council to a specific named body. The scrutiny role within the Council is undertaken by the Audit Committee, who in addition to the above reports receives and review quarterly Treasury Management update reports.

1.5 The council is also required to comply with investment guidance issued by the Department of Communities and Local Government which came into effect from 1 April 2010. The Council’s investment strategy is compliant with the CLG guidance.

43


1.6 The CIPFA Code of Practice on Treasury Management (revised November 2011) was adopted by Full Council in the meeting on the 9 March 2010. This strategy report complies with the revised Code of Practice.

1.7 In addition to the reporting schedule outlined above the code requires the:

Creation and maintenance of a Treasury Management Policy Statement which sets out the policies and objectives of the Council’s treasury management activities. The Treasury Management Policy is re attached for approval as Annex 1.

Creation and maintenance of Treasury Management Practices which set out the manner in which the Council will seek to achieve those policies and objectives.

Delegation by the Council of responsibilities for implementing and monitoring treasury management policies and practices and for the execution and administration of treasury management decisions. The scheme of delegation is attached as Annex 2.

1.8 As outlined above, the London Borough of Ealing fully complies with the

requirements of the revised 2011 code and diligently manages the risks associated with this function. In this regard, the Council’s investment governance process is strengthened by its Treasury Risk and Investment Board (TRIB), which meets regularly to support the Director of Finance in the execution of their delegated powers. This has enabled more timely assessment, discussion and response to existing and emerging investment risks.

2 Treasury Management Strategy for 2014/15

2.1 The global financial crises brought into focus the risks associated with the treasury management activity and the treasury management strategy for 2014/15 has been set in recognition of the fact that financial markets have not returned to pre-crises stability.

2.2 The proposed Treasury Management Strategy and Policy for the remainder of

2013/14 and 2014/15 adheres to the Council’s policy on investments of “safety before returns” and the number of institutions in which the Council invests in remains limited as financial market uncertainty still persists. Investments are currently being placed with the following:

The UK Government directly (Debt Management Office)

Lloyds and RBS (because of the UK government’s substantial stake in these institutions)

The Council’s banker (NatWest)

HSBC

Nationwide

Standard Chartered

Barclays; and

Other Local Authorities

2.3 The above represent a significantly scaled down counterparty lending list, but remains under ongoing review and can be expanded under delegated powers.

2.4 The strategy proposed in this report will assist the Council in mitigating risk in the

Council’s treasury management activities and allow the borrowing necessary to finance the capital programme. The strategy is in line with the proposed capital

44

Appendix 5: Treasury Management Strategy Statement, MRP Strategy and Annual Investment Strategy 2014/15 programme and revenue budget addressed elsewhere on this agenda and aims to secure investment income on the Council’s general cash balances with the minimum risk possible. As will be clear from the financial events globally and nationally, it is impossible in practical terms to eliminate all credit risk but this Council seeks to be as prudent as possible.

2.5 A mid-year update report on Treasury Management in 2013/14 went to Full Council

on 10 December 2013 and Audit Committee on 23 January 2014. 2.6 The proposed strategy for 2014/15 is based upon treasury officers’ views on interest

rates based on market forecasts acquired directly by Council officers and supplemented by forecasts provided by the Council’s treasury advisors, Capita Asset Services.

2.7 The strategy report covers:

update on Pension Fund cash/Treasury limits and current portfolio position

treasury budget

the current treasury position;

the minimum revenue provision (MRP) strategy.

treasury indicators which limit the treasury risk and activities of the Council;

economic background and prospects for interest rates;

the borrowing strategy and policy on borrowing in advance of need;

debt rescheduling;

the investment strategy;

creditworthiness policy; and

policy on use of external service providers

2.8 These factors embrace the requirements of the Local Government Act 2003, the CIPFA Prudential Code, CLG MRP Guidance, the CIPFA Treasury Management Code and CLG Investment Guidance.

Training

2.9 The CIPFA Code requires the responsible officer to ensure that members with responsibility for treasury management receive adequate training on treasury management and related issues. This especially applies to members responsible for scrutiny who are trained regularly by the Council and received training at the Audit Committee meeting on the 20 March 2013. The training needs of treasury management officers are met through attendance at relevant courses, conferences and forums and are periodically reviewed and addressed as part of the Council’s appraisal scheme.

Pension Fund Cash 2.10 As previously reported the Council’s arrangement for Pension Fund cash changed

from 1 April 2011 to meet the requirements of CLG regulations. A separate bank account is operated for the Pension Fund and Pension fund cash continues to be invested separately from the Council’s in either Special Interest Bearing Accounts or as fixed term deposits with Counterparties on the Council’s Counterparty list.

2.11 Pension Fund transactions still flow through the council’s bank account and any

surplus of income over expenditure is intermittently transferred to the separate bank account, from where investments are made.

45


2.12 Cash may be transferred to fund managers to fund new mandates or rebalance the fund, when cash thresholds levels set within the Pension Fund investment strategy are reached.

2.13 The Council is still responsible for managing the Pension Fund cash in accordance

with this Treasury Management Strategy. The Pension Fund Panel are updated of progress on a quarterly basis.

West London Waste Authority (WLWA) Cash

2.14 From 1 April 2014, the London Borough of Ealing will carry out Treasury Management services for the WLWA.

2.15 Investment Options – During 2012/13 the average month end balance of WLWA was

approximately £3m. As the sums are very low there are significant benefits in the WLWA engaging with one of the boroughs to provide Treasury Management Services on their behalf. In this regard, they are collaborating with LBE.

2.16 The current proposal is that the WLWA will transfer their excess funds to the Council

to be invested jointly. They will be afforded parity with the Council and earn the average interest rate achieved based on their average balance. The WLWA has also subscribed to capita asset management services and they will mirror the Council’s investment strategy.

2.17 Risk Controls – Like the Council, the WLWA has a very low risk threshold and

prioritises security over higher returns. The performance of the Treasury Management performance will be reviewed on an annual basis.

2.18 The WLWA currently uses Harrow to provide its Treasury Management Services as

part of the shared bank account arrangement. From April 2014, it is proposed to move this to Ealing Council where the WLWA will transfer excess funds to enable the Council to jointly make short-term deposits on their behalf.

2.19 The annual charge for the WLWA using Ealing’s Treasury Management Services has

been agreed for 2014/15 at £7,000. 3 Prudential Indicators

3.1 The Local Government Act 2003 and supporting regulations requires the Council to ‘have regard to’ the Prudential Code and to set Prudential Indicators for the next three years to ensure that the Council’s capital investment plans are affordable, prudent and sustainable.

3.2 Ealing’s Prudential Indicators for the period 2012/13 – 2016/17 are set out below. 3.3 The benefit of the indicators will be derived from monitoring them over time rather

than from the absolute value of each. The indicators are not designed to be used as comparators between councils. A reporting process has been established, with a half-yearly report to Full Council to highlight any significant deviations from expectations. Once determined, the indicators can be amended, and reported to Council for approval at the earliest opportunity.

3.4 The figures used for the later years are necessarily broad estimates, including the

level of Government support beyond 2014/15. Such estimates can and will be revised, as more accurate information becomes available.

46

Appendix 5: Treasury Management Strategy Statement, MRP Strategy and Annual Investment Strategy 2014/15 Capital Prudential Indicators

3.5 The Council’s capital expenditure plans are a key determinant of treasury management activity. The output of the capital expenditure plans is reflected in prudential indicators, which are designed to confirm capital expenditure plans as well as to assist member’s review of the affordability and sustainability of the plan.

3.6 Capital Expenditure. This prudential Indicator is a summary of the Council’s capital expenditure plans, both those agreed previously, and those forming part of this budget cycle. Members are asked to approve the capital expenditure forecasts: Table 1: Capital Expenditure Forecast

Capital Expenditure 2012/13 2013/14 2014/15 2015/16 2016/17

Actual Projected Outturn Estimate Estimate Estimate

£’000 £’000 £’000 £’000 £’000

Non-HRA 139,736 126,982 130,811 60,595 56,607

HRA 31,481 51,195 89,783 50,460 48,119

Total 171,217 178,177 220,594 111,055 104,726

3.7 Other long term liabilities. The above financing need excludes other long term liabilities, such as PFI and leasing arrangements which already include borrowing instruments.

3.8 The table below outlines the above capital expenditure plans and how these plans are proposed to be financed by capital or revenue resources. Any shortfall of resources results in a funding need i.e. borrowing.

47

Appendix 5: Treasury Management Strategy Statement, MRP Strategy and Annual Investment Strategy 2014/15 Table 2: Capital Programme Funding Summary

Capital Expenditure 2012/13 2013/14 2014/15 2015/16 2016/17


£’000 £’000 £’000 £’000 £’000

Non-HRA 139,736 126,982 130,811 60,595 56,607

HRA 31,481 51,195 89,783 50,460 48,119

Total 171,217 178,177 220,594 111,055 104,726 Financed by:

Capital receipts 139 4,160 12,360 - 10,000

Capital grants 49,317 49,331 45,841 31,539 13,682

Revenue - Reserve & Contribution

14,410 3,961 5,697 - -

Other: partnership, insurance,S106

3,435 5,299 1,984 5,763 425

Finance Lease Liability 5,969 - - - -

PFI 28,286 - - - -

Total Financed 101,556 62,751 65,882 37,302 24,107 HRA funding 31,481 51,195 89,783 50,460 48,119 Net Financing Need (borrowing) 38,180 64,231 64,929 23,293 32,500

TOTAL FUNDING 171,217 178,177 220,594 111,055 104,726

The Council’s Borrowing Need (the Capital Financing Requirement) 3.9 The second prudential indicator is the Council’s Capital Financing Requirement

(CFR). The CFR is simply the total historic outstanding capital expenditure which has not yet been paid for from either revenue or capital resources. It is essentially a measure of the Council’s underlying borrowing need. Any capital expenditure above, which has not immediately been paid for, will increase the CFR. The CFR does not increase indefinitely as the requirement to set aside the minimum revenue provision (MRP) reduces the Council’s underlying need to borrow.

3.10 The CFR includes any other long term liabilities (e.g. PFI schemes, finance leases) brought onto the balance sheet. Whilst these increase the CFR, and therefore the Council’s borrowing requirement, these types of scheme include a borrowing facility and so the Council is not required to separately borrow for these schemes. The Council currently has (£28.3m) of such schemes that forms part of the CFR for 2012/13.

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3.11 The Council is asked to approve the CFR projections below:

Table 3: CFR Projections

*refer to paragraph 4.1 below

3.12 Under the capital finance regulations, local authorities are permitted to borrow up to three years in advance of need. This Council will only consider borrowing in advance of need if market conditions indicate that it is the best course of action. One of the reasons for borrowing in advance is to take advantage of and lock in low long term interest rates, especially if officers are of the opinion that long term rates are likely to rise. There is a short term carry cost to borrowing in advance of need as currently investment rates are considerably lower than long term borrowing rates. However, this interim cost will be closely evaluated before any decision is taken to borrow in advance of need.

3.13 Borrowing in advance of need also increases the level of temporary investments and thus increases the exposure to loss of investment principal. However, the Council has put in place a prudent methodology to minimise this risk.

4. Minimum Revenue Provision (MRP) Policy Statement

4.1 The Council is required to pay off an element of the accumulated General Fund capital spend funded by borrowing each year (the CFR) through a revenue charge (the minimum revenue provision - MRP), although it is also allowed to undertake additional voluntary payments if required (voluntary revenue provision - VRP).

2012/13 2013/14 2014/15 2015/16 2016/17

Actual Projected

Outturn

Estimate

Estimate

Estimate £’000 £’000 £’000 £’000 £’000

Capital Financing Requirement CFR - non housing 381,791 432,265 480,706 485,739 499,580

CFR – housing 146,032 145,488 167,718 173,958 169,476

Total CFR 527,823 577,753 648,423 659,697 669,057 Movement in CFR 34,902 49,930 70,670 11,273 9,360

Movement in CFR represented by

2012/13

£'000 2013/14

£'000 2014/15

£'000 2015/16

£'000 2016/17

£'000 Net financing need for the year

38,180 64,231 64,929 23,293 32,500

Less MRP/VRP* and other financing movements

(3,278) (14,301) 5,741 (12,020) (23,140)

Movement in CFR 34,902 49,930 70,670 11,273 9,360

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4.2 CLG Regulations require the full Council to approve an MRP Statement in advance of each year. The Council has discretion to choose from a number of recommended options for the calculation of the MRP, or to formulate its own methodology so long as the adopted option represents a prudent provision. The Council is recommended to approve the following MRP Statement which is in accordance with CLG guidance. The Guidance issued by the DCLG provides four options which can be used for the purpose of calculating the MRP:

Option 1 - Regulatory Method

Option 2 - Capital Financing Requirement Method

Option 3 - Asset Life Method

Option 4 - Depreciation Method

The policy already in place in the Council is reflected in Options 1 and 3; consequently the statement requiring approval by Council is a confirmation of existing practice and continuation of the policy approved by Council

The Council is recommended therefore to approve the following statement:

4.3 For capital expenditure incurred before 1 April 2008 or which in the future will be Supported Capital Expenditure, the MRP policy will continue to be:

Existing practice - MRP will follow the existing practice outlined in former CLG regulations (option 1); this option provides for an approximate 4% reduction in the borrowing need (CFR) each year.

4.4 For expenditure incurred from 1 April 2008, for all unsupported borrowing (including PFI and finance leases) the MRP policy will continue to be based on the estimated life of the assets (Option 3) . An in depth review of the applicable options for MRP charges was carried out in 2008 when the regulations were introduced effective from 2009/10. It was agreed at the Cabinet meeting of 24 February 2009 and Full Council meeting of 03 March 2009 that, the Council makes MRP charges to revenue in accordance with Option 3, the Asset Life Method as opposed to option 4 Depreciation, which would have required the additional resource and administrative expense of tracking and revaluing assets at regular intervals. There is no basis for a change in policy and in accordance with approval sought and received in 2009 the Council will continue to apply option 3.

Asset Life Method – MRP will be based on the estimated life of the assets, in accordance with the proposed regulations (this option must be applied for any expenditure capitalised under a Capitalisation Direction) (option 3); This option provides for a reduction in the borrowing need over approximately the asset’s life.

4.5 Repayments included in annual PFI or finance leases are applied as MRP.

4.6 There is no requirement for the HRA to set aside MRP, although there is a requirement for depreciation to be applied. However, transitional arrangements currently apply.

Policy Investments and MRP 4.7 When making policy investments the Council will need to consider the potential MRP

implications should the loan be classed as capital spend. A loan would need to be

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Appendix 5: Treasury Management Strategy Statement, MRP Strategy and Annual Investment Strategy 2014/15 treated as capital expenditure if the expenditure for which the loan is required would, if incurred by the Authority, be Capital Expenditure (Local Authority (Capital Finance and Accounting) (England) Regulations 2003). For internal management purposes, the duration of any external borrowing the Council may undertake could be matched to the loan provided to the organisation in which the Council is investing. However, in order to meet legal requirements and both state aid and soft loan implications the rate charged will encompass any additional costs incurred by the Council and also be linked to market rates relating to the organisation and not those directly accessible by the Council.

Core funds and expected investment balances 4.8 The application of resources (capital receipts, reserves etc.) to either finance capital

expenditure or other budget decisions to support the revenue budget will have an ongoing impact on investments unless resources are supplemented each year from new sources (asset sales etc.). Outlined below are estimates of the year end balances on investments. Table 4: Estimates of year end balances on investments

Affordability Prudential Indicators

4.9 The previous sections covered the overall capital and control of borrowing prudential indicators, but within this framework prudential indicators are required to assess the affordability of the capital investment plans. These provide an indication of the impact of the capital investment plans on the Council’s overall finances. The Council is asked to approve the following indicators:

4.10 Actual and estimates of the ratio of financing costs to net revenue stream. This indicator identifies the trend in the cost of capital (borrowing and other long term obligation costs net of investment income) against the net revenue stream.

Table 5: Ratio of financing costs to revenue streams

2012/13 2013/14 2014/15 2015/16 2016/17 Projected

Outturn %

Estimate

%

Estimate

%

Estimate

%

Estimate

% Non-HRA 6.58 6.29 9.22 9.75 10.08

HRA (inclusive of settlement)

12.20 11.54 12.80 13.58 -

4.11 The estimates of financing costs include current commitments and the proposals in

this budget report.

Year End Resources

2012/13 2013/14 2014/15 2015/16 2016/17

Actual £m

Projected Outturn

£m

Estimate

£m

Estimate

£m

Estimate

£m Expected investments 252 262 200 200 200

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Appendix 5: Treasury Management Strategy Statement, MRP Strategy and Annual Investment Strategy 2014/15 Estimates of the incremental impact of capital investment decisions on council tax

4.12 This indicator identifies the revenue costs associated with proposed changes to the three year capital programme recommended in this budget report compared to the Council’s existing approved commitments and current plans. The assumptions are based on the budget, but will invariably include some estimates, such as the level of Government support, which are not published over a three year period.

Table 6: Incremental impact of capital investment decisions on the band D council tax

2012/13 2013/14 2014/15 2015/16 2016/17

Actual £

Projected Outturn

£

Estimate

£

Estimate

£

Estimate

£ Council tax - band D £19.00 £38.49 £43.54 £23.96 £11.75

HRA ratios Incremental Impact of Capital Investment Decisions on Housing Rent (Unsupported Borrowing)

4.13 Similar to council tax calculation, this indicator outlines the impact of proposed changes in the housing capital programme on weekly rent levels.

Table 7: HRA Ratios

2012/13 2013/14 2014/15 2015/16 2016/17

Actual £

Projected Outturn

£

Estimate

£

Estimate

£

Estimate

£ Housing Rents - - 1.93 0.80 -

2012/13 2013/14 2014/15 2015/16 2016/17 Actual Actual Estimate Estimate Estimate

HRA debt (£’000) 146,032 145,488 167,718 178,958 174,476 HRA revenues (£’000) - 60,871 59,845 60,674 61,320 Ratio of debt to revenues % - 41.84 35.68 34.88 36.18

2012/13 2013/14 2014/15 2015/16 2016/17


HRA debt (£'000) 146,032 145,488 167,718 173,958 169,476

Number of HRA dwellings 13,004 12,660 12,357 12,070 11,925

Debt per dwelling (£'000) 11.23 11.49 13.57 14.41 14.21

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5. BORROWING 5.1 The capital expenditure plans set out above in paragraph 3.6 outlines the service

activity for the Council. The treasury management function ensures that the Council adheres to the relevant treasury codes as well as organising the Council’s cash flow and borrowing needs to meet the requirements of the service activity. It is a statutory requirement under Section 33 of the Local Government Finance Act 1992, for the Council to produce a balanced budget. In particular, Section 32 requires a local authority to calculate its budget requirement for each financial year to include the revenue costs that flow from capital financing decisions. This, therefore, means that increases in capital expenditure must be limited to a level whereby increases in charges to revenue from: -

increases in interest charges caused by increased borrowing to finance additional capital expenditure, and

any increases in running costs from new capital projects are limited to a level which is affordable, prudent and sustainable within the projected income of the Council for the foreseeable future.

5.2 The strategy covers the relevant treasury/prudential indicators, the current and projected debt positions and the annual investment strategy.

Current Portfolio Position

5.3 The table below shows how the Council’s treasury portfolio position at 15.01.2014 is comprised:

Table 8: Council’s treasury portfolio position at 15.01.2014

External Debt 2012/13 2013/14 2014/15 2015/16 2016/17 Actual Estimate Estimate Estimate Estimate

£'000 £'000 £'000 £'000 £'000

Debt at 1 April 501,732 494,898 492,825 582,754 616,047

Expected change in Debt (6,834) (2,073) 89,929 33,293 32,500

Other long-term liabilities (OLTL) (PFI)

115,267 137,125 137,125 137,125 137,125

Expected change in OLTL (PFI) 21,858 - - - -

Actual gross debt at 31 March * 632,023 629,950 719,879 753,172 785,672

The Capital Financing Requirement 664,948 714,878 785,548 796,822 806,181

Under / (over) borrowing 32,925 84,928 65,669 43,649 20,509

Note: the table shows the impact of not externally borrowing i.e. using the Council’s investments to internally fund the Council’s borrowing underlying.

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Appendix 5: Treasury Management Strategy Statement, MRP Strategy and Annual Investment Strategy 2014/15 Policy on borrowing in advance

5.4 Within the prudential regime there are a number of key indicators to ensure that the Council operates its activities within well defined limits. One of these is that the Council needs to ensure that its total debt, does not, except in the short term, exceed the total of the CFR in the preceding year plus the estimates of any additional CFR for 2013/14 and the following two financial years. This allows some flexibility for limited early borrowing for future years, but ensures that borrowing is not undertaken for revenue purposes.

5.5 Borrowing in advance will be made within the constraints that:

It will be limited to no more than 70% of the expected increase in borrowing need (CFR) over the three year planning period.

5.6 The Director of Finance can confirm that the Council complied with this prudential indicator in the current year and does not envisage difficulties for the future. This view takes into account current commitments, existing plans, and the proposals in this budget report.

6 Treasury Limits for 2013/14 to 2015/16

6.1 It is a statutory duty under Section 3 of the Act and supporting regulations for the Council to determine and keep under review how much it can afford to borrow. The amount so determined is termed the “Affordable Borrowing Limit”. In England and Wales the Authorised Limit represents the legislative limit specified in the Act.

6.2 The Council must have regard to the Prudential Code when setting the Authorised

Limit, which essentially requires it to ensure that total capital investment remains within sustainable limits and, in particular, that the impact upon its future council tax and council rent levels is ‘acceptable’.

6.3 Whilst termed an “Affordable Borrowing Limit”, the capital plans to be considered for

inclusion incorporate financing by both external borrowing and other forms of liability, such as credit arrangements. The Authorised Limit is to be set, on a rolling basis, for the forthcoming financial year and two successive financial years, details of the Authorised Limit can be found in the prudential indicator table in paragraph 6.7 below. Treasury Indicators: Limits to Borrowing Activity The Operational Boundary

6.4 This is the limit beyond which external debt is not normally expected to exceed. In most cases, this would be a similar figure to the CFR, but may be lower or higher depending on the levels of actual debt.

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Appendix 5: Treasury Management Strategy Statement, MRP Strategy and Annual Investment Strategy 2014/15 Table 9: Treasury Indicators Limits on borrowing activity

Operational Boundary

2012/13 2013/14 2014/15 2015/16 2016/17

Actual Projected

Outturn Estimate Estimate Estimate £'000 £'000 £'000 £'000 £'000

Debt 527,823 643,988 716,897 693,571 697,898

Other long term liabilities 137,125 137,125 137,125 137,125 137,125 Total 664,948 781,112 854,022 830,696 835,023

The Authorised Limit for external debt

6.5 A further key prudential indicator represents a control on the maximum level of borrowing. This represents a limit beyond which external debt is prohibited, and this limit needs to be set or revised by the full Council. It reflects the level of external debt which, while not necessarily desired, could be afforded in the short term, but is not sustainable in the longer term.

6.6 This is the statutory limit determined under section 3 (1) of the Local Government Act 2003. The Government retains an option to control either the total of all councils’ plans, or those of a specific council, although this power has not yet been exercised.

6.7 The Council is asked to approve the following Authorised Limit:

Table 10: Authorised Limits

Authorised limit 2012/13 2013/14 2014/15 2015/16 2016/17

Actual

Projected Outturn

Estimate

Estimate

Estimate

£'000 £'000 £'000 £'000 £'000

Debt 527,823 658,988 731,897 708,571 712,898

Other long term liabilities 137,125 137,125 137,125 137,125 137,125

Total 664,948 796,112 869,022 845,696 850,023

6.8 Separately, the Council is also limited to a maximum HRA CFR through the HRA self-financing regime. This limit is currently:

Table 11: HRA Debt limit

HRA Debt Limit 2013/14 2014/15 2015/16 2016/17

Projected Outturn Estimate Estimate Estimate

£'000 £'000 £'000 £'000 HRA debt cap 199,800 199,800 199,800 199,800 HRA CFR 145,488 167,718 173,958 169,476 HRA headroom 54,312 32,082 25,842 30,324

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Appendix 5: Treasury Management Strategy Statement, MRP Strategy and Annual Investment Strategy 2014/15 7 Economic background and Interest Rate Forecasts

7.1 Capita Asset Services have been appointed as treasury adviser to the Council and

part of their service is to assist the Council to formulate a view on interest rates. The following table outlines the Capita view. It should be noted that the Public Works Loans Board (PWLB) offers a certainty rate discount of 0.20 to local authorities who provide specified information on their plans for capital spending and the associated longer term borrowing. The Council has applied and qualifies to borrow at the certainty rate. Table 12: Capita Interest Rate Forecast January 2014

Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Mar-16 Mar-17 Bank Rate 0.50 0.50 0.50 0.50 0.50 0.50 1.25

5yr PWLB 2.50 2.60 2.70 2.70 2.80 3.10 3.40

10yr PWLB 3.60 3.70 3.80 3.80 3.90 4.20 4.50

25yr PWLB 4.40 4.50 4.50 4.60 4.60 5.0 5.10

50yr PWLB 4.40 4.50 4.50 4.60 4.70 5.10 5.20

7.2 Until 2013 economic recovery had been slow since the global financial crises. The

UK economy is however rebounding and most key economic measures have surpassed expectations. Growth prospects appear strong in all three main sectors: services, manufacturing and construction. On the downside, wage growth continues to remain significantly below consumer price index (CPI) inflation, so disposable income is under pressure and may temper domestic consumption. The rebalancing of the UK economy towards an export orientated one is underway; however with 40% of the UK exports going to the Eurozone the difficulties in this area are likely to continue to dampen UK growth. There are therefore concerns that a UK recovery based mainly on consumer spending and the property market may not endure beyond 2014. The USA, the main world economy faces similar debt problems to the UK, but its reasonable growth, government spending cuts and annual government deficit has enabled a halving of the deficit from its peak without appearing to do much damage to growth.

7.3 The current economic outlook and structure of market interest rates and government debt yields have several key treasury management implications:

The Eurozone concerns subsided considerably in 2013. However, sovereign debt difficulties still persist and major concerns could return in those countries that do not implement structural reforms to address the fundamental issues of low growth, international uncompetitiveness and the need for overdue reforms of the economy (as Ireland has done). It is, therefore, possible over the next few years that levels of government debt to GDP ratios could continue to rise to levels that could result in a loss of investor confidence in the financial viability of such countries. Sovereign debt concerns have not disappeared but, rather, have only been suspended whilst investor confidence persists through the assurances of the ECB. Counterparty risks therefore remain elevated. which continues to suggest the use of higher quality counterparties for shorter durations;

Investment returns are likely to remain relatively low during 2014/15 and beyond;

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Borrowing interest rates have risen significantly during 2013 and are on a rising trend. The policy of avoiding new borrowing by running down spare cash balances has served well over the last few years. However, this needs to be carefully reviewed to avoid incurring even higher borrowing costs, which are now looming ever closer, where authorities will not be able to avoid new borrowing to finance new capital expenditure and/or to refinance maturing debt, in the near future;

7.4 There will remain a cost of carry to any new borrowing which causes an increase in investments as this will incur a revenue loss between borrowing costs and investment returns.

Borrowing Strategy 2014/15 7.5 The Council is currently maintaining an under-borrowed position, hence financing

schemes through internal borrowing. This means that the capital borrowing need (the Capital Financing Requirement), has not been fully funded with loan debt as cash supporting the Council’s reserves, balances and cash flow is being deployed in the interim. This strategy is prudent as investment returns are low and counterparty risk is relatively high.

7.6 In this regards and mindful of the risks within the economic forecast, caution will be

adopted with the 2014/15 treasury operations. The Director of Finance will monitor interest rates in financial markets and adopt a pragmatic approach to changing circumstances:

Sensitivities of the forecast 7.7 if it was felt that there was a significant risk of a sharp fall in long and short term

interest rates (e.g. due to a marked increase of risks around relapse into recession or of risks of deflation), then long term borrowings will continue to be postponed, and potential rescheduling from fixed rate funding into short term borrowing will be considered.

7.8 However, if it is felt that there is a significant risk of a much sharper rise in long and

short term rates than that currently forecast, perhaps arising from a greater than expected increase in the anticipated rate to US tapering of asset purchases, or in world economic activity or a sudden increase in inflation risks, then the portfolio position will be re-appraised with the likely action that fixed rate funding will be raised whilst interest rates are still lower than they will be in the foreseeable years ahead.

7.9 Any decisions and actions taken will be reported to Audit Committee or Full Council

at the earliest opportunity. 7.10 The Council’s borrowing strategy will give consideration to new borrowing in the

following order of priority:

The cheapest borrowing will be internal borrowing by running down cash balances and foregoing interest earned which are currently at historically low rates. However, if the overall forecast for long term borrowing rates were to be a projected increase over the next few years, consideration will also be given to weighing the short term advantage of internal borrowing against potential long term costs if the opportunity is missed for taking loans at long term rates which will be higher in future years.

Temporary borrowing from the money markets or other local authorities

PWLB variable rate loans for up to 10 years

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Short dated borrowing from non PWLB and other sources

Long term fixed rate market loans at rates significantly below PWLB rates for the equivalent maturity period (where available) and to maintaining an appropriate balance between PWLB and market debt in the debt portfolio.

PWLB borrowing for periods across all the durations when rates are seen as being at particularly good value.

7.11 The Council will continue to borrow in respect of the following:

Maturing debt (net of minimum revenue provision).

Approved unsupported (prudential) capital expenditure.

To finance cash flow in the short term. 7.12 The type, period, rate and timing of new borrowing will be determined by the Director

of Finance under delegated powers, taking into account the following factors:

Expected movements in interest rates as outlined above.

Current maturity profile.

The impact on the medium term financial strategy.

Prudential indicators and limits. Treasury Management Limits on borrowing Activity

7.13 There are three debt related treasury activity limits. The purpose of these are to restrain the activity of the treasury function within a set remit, thereby managing risk and reducing the impact of any adverse movement in interest rates. However, if these are set to be too restrictive they will impede the opportunities to reduce costs and improve performance. The indicators are:

Upper limits on variable interest rate exposure. This identifies a maximum limit for variable interest rates based upon the debt position net of investments;

Upper limits on fixed interest rate exposure. This is similar to the previous indicator and covers a maximum limit on fixed interest rates;

Maturity structure of borrowing. These gross limits are set to reduce the Council’s exposure to large fixed rate sums falling due for refinancing, and are required for upper and lower limits.

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Appendix 5: Treasury Management Strategy Statement, MRP Strategy and Annual Investment Strategy 2014/15 The Council is asked to approve the following treasury indicators and limits:

Table 13: Treasury Indicators and limits

2013/14 2014/15 2015/16 Interest rate Exposures

Upper %

Upper %

Upper %

Limits on fixed interest rates based on net debt 100 100 100

Limits on variable interest rates based on net debt 50 50 50

Limits on fixed interest rates:

Debt only 100 100 100

Investments only 100 100 100

Limits on variable interest rates

Debt only 20 20 20

Investments only 20 20 20

Maturity Structure of fixed interest rate borrowing 2014/15

Lower %

Upper %

Under 12 months 0 10

12 months to 2 years 0 20

2 years to 5 years 0 20


10 years and above 30 90

Maturity Structure of variable interest rate borrowing 2013/14

Lower Upper Under 12 months 0 100

12 months to 2 years 0 100



10 years and above 0 100

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8 Policy on borrowing in advance of need

8.1 The Council will not borrow more than or in advance of its needs purely in order to profit from the investment of the extra sums borrowed. Any decision to borrow in advance will be considered carefully to ensure value for money can be demonstrated and that the Council can ensure the security of such funds.

8.2 In determining whether borrowing will be undertaken in advance of need the Council will:

ensure that there is a clear link between the capital programme and maturity profile of the existing debt portfolio which supports the need to take funding in advance of need

ensure the ongoing revenue liabilities created, and the implications for the future plans and budgets have been considered

evaluate the economic and market factors that might influence the manner and timing of any decision to borrow

consider the merits and demerits of alternative forms of funding consider the alternative interest rate bases available, the most appropriate

periods to fund and repayment profiles to use consider the pros and cons of the impact of borrowing in advance of need at

attractive rates on the available cash balances the Council will hold and the risks associated with increased exposure to credit risk arising from investing this additional cash in advance of need

9 Debt Rescheduling 9.1 As short term borrowing rates will be considerably cheaper than longer term rates,

there may be potential for some residual opportunities to generate savings by switching from long term debt to short term debt. However, these savings will need to be considered in the light of the size of premiums to be incurred, their short term nature, and the likely cost of refinancing those short term loans, once they mature, compared to the current rates of longer term debt in the existing debt portfolio. Any such rescheduling and repayment of debt is likely to cause a flattening of the Council’s maturity profile as in recent years there has been a skew towards longer dated PWLB.

9.2 The reasons for any rescheduling to take place will include: -

the generation of cash savings and / or discounted cash flow savings

helping to fulfill the strategy outlined above

enhancing the balance of the portfolio (amend the maturity profile and/or the balance of volatility).

9.3 Consideration will also be given to identify if there is any potential for making savings by running down investment balances to repay debt prematurely as short term rates on investments are most likely going to continue being lower than rates paid on current debt.

9.4 All rescheduling will be reported to Full Council at the earliest meeting following its implementation.

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10 Housing Revenue Account (HRA) Self Financing

10.1 As reported to Full Council last year, the housing subsidy system was dismantled

and has been replaced by a system of self-financing of the HRA from 1 April 2012. The new system aims to provide more incentives and flexibility for Councils to manage and maintain their housing stock without recourse to subsidy payments.

10.2 Ealing Council received £202.3m from the CLG on the 28 March 2012, which was

directly deployed to top slicing the Councils portfolio of Public Works Loans Board (PWLB) debt. HRA debt currently stands at £145.49m.

10.3 Currently, two separate pools are operating for the management of HRA and GF

debt. The advantage of this is that the HRA and GF borrowing strategy can be targeted to meeting their separate business demands.

10.4 Under the two pool approach all loans has been apportioned between the HRA and

General Fund. Historic debt has been notionally apportioned using CFR’s split between HRA and GF and new loans will be raised separately.

10.5 An equitable means of apportioning debt management expenses is in operation. 10.6 The Council can now operate a more targeted treasury management strategy for the

HRA and GF, e.g. rescheduling of debt can take place for one pool or the other or even across pools, to the extent that loans can be split.

11 Annual Investment Strategy

11.1 The Council will have regard to the CLG’s Guidance on Local Government

Investments (“the Guidance”) and the 2011 revised CIPFA Treasury Management in Public Services Code of Practice and Cross Sectoral Guidance Notes (“the CIPFA TM Code”). The Council’s investment priorities remain: -

security of the invested capital;

liquidity of the invested capital; and

an optimum yield which is commensurate with security and liquidity.

All investments will be in sterling.

11.2 With respect to optimum yield it must be stressed that the Councils risk appetite remains low and the security of principal invested is paramount. Furthermore, the borrowing of monies purely to invest or on-lend and make a return is unlawful and this Council will not engage in such activity.

11.3 In accordance with guidance from the CLG and CIPFA, and in order to minimise the

risk to investments, the Council has below clearly stipulated the minimum acceptable credit quality of counterparties for inclusion on the lending list. The creditworthiness methodology used to create the counterparty list fully accounts for the ratings, watches and outlooks published by all three ratings agencies with a full understanding of what these reflect in the eyes of each agency. Using our ratings service potential counterparty ratings are monitored on a real time basis with knowledge of any changes notified electronically as the agencies notify modifications.

11.4 However, the Council’s officers recognise that ratings should not be the sole

determinant of the quality of an institution and that it is important to continually assess and monitor the financial sector on both a micro and macro basis and in

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Appendix 5: Treasury Management Strategy Statement, MRP Strategy and Annual Investment Strategy 2014/15 relation to the economic and political environments in which institutions operate. The assessment will also take account of information that reflects markets sentiments. In this regard, the Council will engage with its advisors to maintain a monitor on market pricing such as “credit default swaps” and overlay that information on top of the credit ratings. This is fully integrated into the credit methodology provided by the advisors, Capita Asset Services in producing its colour codings which show the varying degrees of suggested creditworthiness.

11.5 Other information sources used will include the financial press, share price and other

such information pertaining to the banking sector in order to establish the most robust scrutiny process on the suitability of potential investment counterparties.

11.6 However, it must be noted that the final decision on institutions to be included in the

Council’s lending list rests with the Council’s Treasury Risk and Investment Board (TRIB), who will make a decision on the advice of the Director of Finance. The decisions taken locally may on occasions not conform to Capita Asset Services advice based on officer’s assessment and interpretation of the overlays used to determine market views. This situation can arise where the metrics used to assess market sentiments diverge significantly from credit ratings.

11.7 The aim of the strategy is to generate a list of highly creditworthy counterparties

which will also enable diversification and thus avoidance of concentration risk. 11.8 The intention of the strategy is to provide security of investment and minimisation of

risk. 11.9 Investment instruments that can be used in the financial year are listed below under

‘Specified’ and ‘Non Specified’ investment categories. Counterparty limits will be set through the Council’s Treasury Management Practices Schedules.

11.10 This Council applies the creditworthiness service provided by Capita Asset Services.

This service employs a sophisticated modelling approach utilising credit ratings from the three main credit rating agencies - Fitch, Moody’s and Standard and Poor’s. The credit ratings of counterparties are supplemented with the following overlays:

credit watches and credit outlooks from credit rating agencies;

CDS spreads to give early warning of likely changes in credit ratings;

sovereign ratings to select counterparties from only the most creditworthy countries

financial press, share price information, broader political, micro and macro-economic concerns etc.

11.11 This modelling approach combines credit ratings, credit watches and credit outlooks

in a weighted scoring system which is then combined with an overlay of CDS spreads for which the end product is a series of colour coded bands which indicate the relative creditworthiness of counterparties. These colour codes are used by the Council to determine the suggested duration for investments. The Council will therefore use counterparties within the following durational bands:

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Y Pi1 Pi2 P B O R G N/C

1 1.25 1.5 2 3 4 5 6 7

Up to 5yrs Up to 5yrs Up to 5yrs Up to 2yrs Up to 1yr Up to 1yr Up to 6mths Up to 100days No Colour

Table 14: Durational bands for Counterparties

Colour Suggested Duration

Yellow 5 years *

Dark Pink 5 years for Enhanced money market funds (EMMFs) with a credit score of 1.25

Light Pink 5 years for Enhanced money market funds (EMMFs) with a credit score of 1.5

Purple 2 years

Blue 1 year (only applies to nationalised or semi nationalised UK Banks)

Orange 1 year

Red 6 months

Green 100 days

No Colour Not to be used

Colour (and long term rating where applicable)

Amount and/or % Limit per institution

£m

TRIB Local current limit

per institution £m

UK Government Debt or Equivalent * yellow Unlimited 40

Banks purple 50 - Banks orange 50 30 Banks – part nationalised blue 50 40

Banks red 40 30 Banks green 30 20 Banks No colour Not to be used - Limit 3 category – Council’s banker (not meeting Banks 1)

blue 50

Policy Investment lending limit - To be determined on

a case by case basis

DMADF AAA Unlimited 120 Local authorities n/a 15 10 Money market funds AAA 15 -

Note: The Treasury Risk and Investment Board (TRIB) under the auspices of the Executive Director of Corporate Resources and the Director of Finance have delegated powers to make changes to their local operational limits, but remain within the parameters of the Treasury Strategy.

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11.12 The creditworthiness service subscribed to uses a wider array of information than just primary ratings and by using a risk weighted scoring system, does not give undue weighting to just one agency’s ratings.

11.13 Typically the minimum credit ratings criteria the Council use will be a short term

rating (Fitch or equivalents) of short term rating F1, long term rating A-, viability rating of A-, and a support rating of 1 There may be occasions when the counterparty ratings from one rating agency are marginally lower than these ratings but may still be used. In these instances consideration will be given to the whole range of ratings available, or other topical market information, to support their use.

11.14 All credit ratings will be monitored on a weekly basis. The Council is alerted to

changes to ratings of all three agencies through its use of its adviser’s creditworthiness service.

11.15 If a downgrade results in the counterparty / investment scheme no longer meeting the Council’s minimum criteria, its further use as a new investment will be withdrawn immediately except in the circumtsances out lined above where TRIB determines the counterparty can remain on the Councils list.

11.16 In addition to the use of credit ratings the Council will be advised of information on

movements in credit default swap spreads against the iTraxx benchmark and other market data on a weekly basis. Extreme market movements may result in downgrade of an institution or removal from the Council’s lending list.

11.17 Sole reliance will not be placed on the use of this external service. In addition

this Council will also use market data and market information, information on government support for banks and the credit ratings of that supporting government.

11.18 Country limits The Council has determined that it will only use approved

counterparties from countries with a minimum sovereign credit rating from Fitch of AA- (or equivalent from other agencies if Fitch does not provide a rating). However it must be noted that the most likely position is that any foreign institution the Council invest in should be as highly rated as the UK or better. Investments in the UK will not be subject to sovereign credit worthiness rating restriction.

11.19 The list of Countries which currently meet this criterion are outlined in paragraph 13. The Director of Finance will monitor and update the position under delegated powers and report back at the earliest opportunity.

11.20 Where Institutions are not on the Councils Advisers list and the Council makes its own assessment, the Council will only lend to Counterparties using the minimum criteria specified below.

11.21 The minimum credit rating required for an institution to be included in the Council’s

counterparty list (where Capita credit worthiness service is not being used) is as follows:

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Appendix 5: Treasury Management Strategy Statement, MRP Strategy and Annual Investment Strategy 2014/15 Table 15: Minimum credit ratings

Long-Term

Short-Term

Support Financial Strength

Ratio Fitch A F1 1 N/a

Moody’s Baa1 P-2 N/a C

Standard & Poors A- A-2 N/a N/a

Sovereign Rating Same rating as the UK or higher

Money Market Funds AAA

Note: The above does not apply to policy investments.

11.22 As outlined above officers also take any market intelligence gleaned into

consideration to further determine whether to suspend institutions from the list even though the institution meets our minimum lending criteria. This assessment will include credit ratings and other alternative assessments of credit strength (for example, statements of potential government support). The Council will also take into account information on corporate developments of market sentiment towards investment counterparties.

11.23 Setting & monitoring of the counterparty list and the agreed maximum limit per

counterparty (and Council’s rating criteria) constitutes part of the execution and administration function and forms part of the authority to “determine the annual treasury strategy and carry out all treasury management activities” as per the Council’s scheme of delegation outlined in our financial regulations. The Director of Finance therefore has discretion to review and amend these minimum ratings in view of market conditions and report to Full Council at the earliest opportunity.

11.24 Officers have to respond quickly to counterparty rating changes and include or

suspend institutions as their ratings fall in/out of the Council’s minimum rating criteria. This ensures that investment risk continues to be spread across a range of credit worthy institutions. The lending list is under ongoing review by the Director of Finance under delegated authority.

Institutions with which the Council can currently place funds are as follows:

Bank of England Debt Management Office (DMO). The rates of interest from the DMO are below equivalent money market rates. However, the returns are an acceptable trade-off for the guarantee that the Council’s capital is secure particularly in times of high market volatility.

The British institutions where the UK has a substantial stake such as Lloyds and RBS

Other UK institutions meeting our minimum credit rating criteria

AAA rated Money Market Funds.

Other local authorities Local Authorities (LAs) are relatively risk free counterparties. In the DCLG’s own investment guidance issued to Councils, LA deposits are deemed to offer high security and liquidity. Their limit is set at £5m for District Councils and £10m for other LAs, subject to a group limit of £180m.

Foreign Institutions from countries with sovereign ratings equivalent to the UK’s sovereign rating or higher, provided they meet our minimum criteria.

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Institutions that fall within Capita (our treasury management consultants) approved lending list having met the diverse criteria and who the Council assess as having sound credit worthiness.

UK Government – (gilts and treasury bills) POLICY LENDING– NON TREASURY MANAGEMENT INVESTMENTS:

11.25 In some circumstances the Council may have entered into a partnership arrangement

with organisations or institutions for the provision of a service which either requires the Council to lend or jointly invest in a venture. Or the Council may invest in a venture that furthers one or more of the Council’s policy objectives.

11.26 One such proposal was recently taken to Cabinet for consideration on the 21 January 2014 weighing up the potential for the Council to provide investment support to Registered Providers; enabling more mixed tenure homes to be built in the borough.

11.27 These types of policy investments do not form part of the treasury management

strategy as such and are therefore not required to be included in the treasury management strategy statement. However, approval was received from Full Council as part of the mid-year strategy update in July 2010 to allow officers to extend the councils lending remit to accommodate such situations. Lending in these circumstances will continue as deemed necessary and will be reported back to Full Council at the earliest opportunity.

11.28 This Council has already entered into some lending activities in support of the policy

objectives of the Council. Two policy related investments have been made, one being a loan of £0.6m to a PFI partner Future Ealing and the other being a loan of £15m to West London Waste Authority.

Table 16: Policy investments entered into by Ealing Council

Organisation £m Description

Future Ealing 0.6 This is an investment that LBE made, which was part of a PFI structure

West London Waste Authority (WLWA)

15.0

An invest to save loan granted to West London Waste Authority (WLWA) towards the project for the development of a new Energy from waste facility.

11.29 At the 22nd October 2013 Cabinet meeting Members agreed to the formation of a separate wholly owned company (“CoCo”). This is in response to the continuing demand for housing in the borough, and acknowledging that current resources are not adequate to meet this demand.

11.30 As part of the arrangement the Council may also be lending to the CoCo, and state aid rules will need to be upheld.

11.31 In a number of these ventures match borrowing may need to be raised from the PWLB to fund the policy loan. Careful consideration will need to be afforded to state aid, soft loan and gratuitous benefit implications hence rates charged should be linked to market rates achievable for the organisation in question.

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11.32 As outlined above these are service investments and not treasury management investments, hence each investment will be viewed on its individual merit and will have to go through the necessary approval protocol including scrutiny by the Treasury Risk and Investment Board under the auspices of the Executive Director of Resources and the Director of Finance.

11.33 Detailed due diligence on each organisation the Council is lending to will inform the decision making process on the amount and duration of any prospective loans while the Council will also implement in any agreement additional steps to protect the security of capital such as placing a charge on assets of an organisation.

12 Investment Balances / Liquidity of Investments

12.1 Based on Ealing’s cash flow forecasts, the Council anticipates its fund balances in

2014/15 to average around £200m if long term borrowing is resumed. Balances will be lower if we persist with the policy of internal borrowing to fund the Council’s underlying need to borrow. For treasury investments, it is considered that the maximum percentage of its overall investments that the Council should hold for more than 365 days is £20m. (Investments with a maturity exceeding a year). The prudential indicator figure of £20m for 2014/15 is therefore recommended. It should be noted that this indicator does not apply to investments made for policy reasons.

12.2 In addition, the Council may enter into forward deals, but with an exposure that does

not exceed 5 years, from the date the forward deal was effected. 12.3 The actual amount available for investment in 2014/15 will fluctuate as a result of the

timing of significant items such as:

expenditure on capital projects

council tax, business rates, council house rents income

receipt of government grants

long-term loans taken out to fund capital expenditure

capital receipts in respect of major asset sales 12.4 The amounts available for investments consist of both cash flow and core balances

made up of reserves not likely to be required for one to two years. It is possible for the Council to invest this core cash for longer term. However, given the uncertainties clouding the global economy, the Council has not to date carried out treasury management lending for over 364 days in 2013/14 and will continue to keep this under review. The strategy is flexible and allows the Director of Finance to take the decision to extend the duration of lending when market conditions are conducive to such lending.

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Appendix 5: Treasury Management Strategy Statement, MRP Strategy and Annual Investment Strategy 2014/15 Investment Strategy and Interest Rate Outlook

12.5 The Council avoids locking into longer term deals while investment rates are down at historical low levels unless attractive rates are available with counterparties of particularly high creditworthiness which make longer term deals worthwhile and within the risk parameters set by the Council.

12.6 The UK base rate has been unchanged at 0.50% since March 2009 and is forecast to

remain unchanged before starting to rise from quarter 2 of 2016. The base rate forecasts for financial year ends (March) are:

2013/14 0.50 2014/15 0.50 2015/16 0.50 2016/17 1.25

12.7 There are upside risks to these forecasts (i.e. base rate start to increase in sooner) if economic growth remains strong and unemployment falls faster than expected. However, should the pace of growth fall back, there could be downside risk, particularly if Bank of England inflation forecasts for the rate of fall of unemployment were to prove to be too optimistic.

12.8 The projected investment earnings rates for returns on investments placed for

periods up to 100 days during each financial year for the next four years are as follows:

2014/15 0.50 2015/16 0.50 2016/17 1.00 2017/18 2.00

12.9 In-house funds. Investments will be made with reference to the core balance and

cash flow requirements and the outlook for short-term interest rates (i.e. rates for investments up to 12 months).

13 Specified/ Unspecified Investments

13.1 SPECIFIED INVESTMENTS: All such investments will be sterling denominated, with maturities up to maximum of 1 year, meeting the minimum ‘high’ quality criteria where applicable.

13.2 NON-SPECIFIED INVESTMENTS: These are any investments which do not meet the specified investment criteria. A maximum of 30% can be held in aggregate in non-specified investment.

13.3 A variety of investment instruments will be used, subject to the credit quality of the

institution, and depending on the type of investment made it will fall into one of the above categories.

13.4 The criteria, time limits and monetary limits applying to institutions or investment

vehicles are:

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Appendix 5: Treasury Management Strategy Statement, MRP Strategy and Annual Investment Strategy 2014/15 Table 17: Parameters applying to institutions or investment vehicles

Minimum credit criteria / colour

band

Max % of total investments or

maximum amount of

investment per institution

Max. maturity period

DMADF – UK Government N/A 100% 6 months

UK Government gilts UK sovereign rating £20m 30 years

UK Government Treasury bills

UK sovereign rating £50m 1 year

Bonds issued by multilateral development banks

UK sovereign rating £10m N/A Tradable

Money market funds AAA £30m Liquid

Enhanced money market funds with a credit score of 1.25

AAA £5m Liquid

Enhanced money market funds with a credit score of 1.5

AAA £5m Liquid

Local authorities N/A £15m 3 years

Term deposits with banks and building societies

Yellow Purple Blue Orange Red Green No Colour

£50m

Up to 5 years Up to 2 years Up to 1 year Up to 1 year Up to 6 Months Up to 100 days Not for use

CDs or corporate bonds with banks and building societies

Yellow Purple Blue Orange Red Green No Colour

£40m

Up to 5 years Up to 2 years Up to 1 year Up to 1 year Up to 6 Months Up to 100 days Not for use

Corporate bond funds £10m N/A Tradable

Gilt funds UK sovereign rating £20m N/A Tradable

Property funds £10m N/A Tradable

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13.5 SPECIFIED INVESTMENTS: (All such investments will be sterling denominated, with maturities up to maximum of 1 year, meeting the minimum ‘high’ rating criteria where applicable)

Table 18: Specified Investments

Minimum Credit Criteria

Use


Debt Management Agency Deposit Facility

N/A In- house

In-house

Term deposits – local authorities

N/A In-house

In-house

Term deposits – banks and building societies

Green credit band per capita credit worthiness service

In-house In-house

Table 19: Term deposits with nationalised banks and banks and building societies

Minimum Credit Criteria Use Max. maturity

period

UK part nationalised banks


In-house 1 year

Banks part nationalised by high credit rated (sovereign rating) countries – non UK


In-house and Fund Managers

1 year

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Table 20: Other Investments Specified Investments

Minimum Credit Criteria Use


Collateralised deposit


In-house 1 year

Certificates of deposit issued by banks and building societies covered by UK Government (explicit) guarantee



1 year

UK Government Gilts UK Government Rating

In-house buy and hold and Fund Managers

1year

Treasury Bills UK sovereign rating In house and Fund Managers

1 year

Certificates of deposit issued by banks and building societies covered by UK Government (explicit) guarantee

UK sovereign rating or Green bank In-house I year

Bond issuance issued by a financial institution which is explicitly guaranteed by the UK Government (refers solely to GEFCO - Guaranteed Export Finance Corporation)

UK sovereign rating In-house buy and hold and Fund Managers

1 year

Bonds issued by multilateral development banks

Long Term AAA rating In-house buy and hold and Fund Managers

Liquid

Government Liquidity Funds UK Government liquidity funds only


Liquid

Money Market Funds Fitch – AAAmmf S&P – AAAm Moodys - AAAmf


Liquid

Notes:

Where Capita’s bands are used, the Council can exercise its discretion and disregard some alternative metrics used within the Capita services credit worthiness service.

If forward deposits are to be made, the forward period plus the deal period should not exceed one year in aggregate.

Buy and hold may also include sale at a financial year end and repurchase the following day in order to accommodate the requirements of SORP.

As collateralised deposits are backed by collateral of AAA rated local authority LOBOs, this investment instrument is regarded as being a AAA rated investment as it is equivalent to lending to a local authority LOCAL AUTHORITIES

Although most local authorities do not have credit ratings, investing with local authorities provides good security for the Council.

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13.6 Accounting treatment of investments. The accounting treatment may differ from the underlying cash transactions arising from investment decisions made by this Council. To ensure that the Council is protected from any adverse revenue impact, which may arise from these differences, we will review the accounting implications of new transactions before they are undertaken.

13.7 Blanket guarantees on all deposits. Some countries may support their banking system by giving a blanket guarantee on ALL deposits, however; this Council will generally not rely on the guarantees provided by any government unless there are overriding reasons for doing so.

13.8 Other Countries. At present the Council will determine whether to include other

Countries by reference to credit rating of the sovereign together with financial news data on the sovereign. The minimum credit rating required for an institution to be included within the Council’s list is AA-, although the Council more likely invest in sovereigns that have a rating equivalent to or better than the UK governments rating. Currently the Countries falling within this are as follows:

Table 21: Credit Rating of other countries

AAA AA+ AA AA-

Australia Hong Kong Abu Dhabi (UAE)

Saudi Arabia

Canada U.K Belgium -

Denmark France - -

Finland - - -

Germany - - -

Luxembourg - - -

Netherlands - - -

Norway - - -

Singapore - - -

Sweden - - -

Switzerland - - -

Note: Although the Executive Director of Corporate Resources and the Director of Finance have discretion under this strategy to invest outside the UK, the current position is that investments are not currently being placed overseas. However, the position is kept under regular review.

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13.9 Non Specified Investments

Table 22: Non specified Investments A. Maturities of ANY period.

Fixed term deposits with variable rate and variable maturities: -

Minimum Credit Criteria Use

1. Callable deposits Falling within the Council’s criteria

In-house

2. Range trade Falling within the Council’s minimum criteria

In-house

Other debt issuance by UK banks covered by UK Government guarantee

UK Government explicit guarantee


Term deposits with unrated counterparties

Decision flowing through TRIB, or a delegated officer

In-house

Commercial Paper Fitch F1, AA aa1 or equivalent.

In-house / Fund Managers

Corporate Bonds Fitch F1, AA aa1 or equivalent.

In-house/ Fund Managers

UK Floating Rate Notes Fitch F1, AA aa1 or equivalent.

In-house/Fund Managers

VNAV MMF’s (where there is greater than 12 month history of a consistent £1 Net Asset Value)

High Credit Score In-house and Fund Managers

Bond Funds Long term AAA In-house and Fund Managers

Gilt Funds Long Term AAA In-house and Fund managers

B. Maturities in excess of 1 year Investments as specified above in specified investments, but for periods in excess of 1 year.

Note: Where indicated, Capita credit worthiness bands will apply unless Ealing exercises its discretion to disregard some of the non-credit rating measures used by Capital Services. Certain market conditions can bring about inconsistent outcomes, and local discretion may be invoked. Investment Treasury Indicator and Limit

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13.10 Total principal funds invested for greater than 364 days. These limits are set with regard to the Council’s liquidity requirements and to reduce the need for the Council becoming a forced seller of an investment, and are based on the availability of funds after each year-end.

The Council is asked to approve the treasury indicator and limit: - Table 23: Investment Treasury Indicator and limit to be approved

Maximum principal sums invested > 364 days

2014/15 2015/16 2016/17 £m £m £m Principal sums invested > 364 days

20 20 20

Note: This durational limit excludes policy investments, were the decision is made on a case by case basis.

13.11 For its cash flow generated balances, the Council will seek to utilise money market

funds, call accounts and short-dated deposits (overnight to three months), treasury bills and the debt management office.

Icelandic Bank Investments

13.12 As previously reported to members in the Treasury outturn report on the 17 July 2012, the Council has received the bulk of its investment in Glitnir i.e. £1.7m. Due to foreign exchange controls implemented by the Icelandic government to protect capital outflows, the balance of £0.380m remains in an escrow account there. This balance is yielding interest of 4.2% though the funds could be subject to currency losses from foreign exchange fluctuations. The Local Government Association is coordinating the efforts of all UK authorities to secure repatriation of funds to the UK at the earliest opportunity. Officers have reviewed other options available to expedite early repatration of funds, but none have been viable as they all require substantial write downs in the value of the principal sums stranded which pose no immediate risk of loss. This matter is under constant review and currently officers have embarked on a process to reclaim tax levied on interest earned on the icelandic balance. Investment Risk Benchmarking

13.13 These benchmarks are simple guides to maximum risk, so they may be breached from time to time, depending on movements in interest rates and counterparty criteria. The purpose of the benchmark is that officers will monitor the current and trend position and amend the operational strategy to manage risk as conditions change. Any breach of the benchmarks will be reported, with supporting reasons in the Mid-Year or Annual Report.

13.14 Security - The Council’s maximum security risk benchmark for the current portfolio,

when compared to these historic default tables, is:

2% historic risk of default when compared to the whole portfolio.

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Appendix 5: Treasury Management Strategy Statement, MRP Strategy and Annual Investment Strategy 2014/15 Liquidity

13.15 In respect of liquidity the Council seeks to maintain:

Bank overdraft - £2m

Liquid short term deposits of at least £5m available with a week’s notice.

Yield 13.16 Local measures of yield benchmarks are:

Investments – internal returns above the 7 day LIBID rate

In addition, the security benchmark for each individual year is:

Table 24: Security Benchmark for each individual year

1 year 2 years 3 years 4 years 5 years Maximum % 0.02 0.02 0.02 0.02 0.02

Note: This benchmark is an average risk of default measure, and would not constitute an expectation of loss against a particular investment.

Provisions for Credit-related losses

13.17 If any of the Council’s investments appeared at risk of loss due to default (i.e. this is a credit-related loss, and not one resulting from a fall in price due to movements in interest rates) then the Council will make revenue provision of an appropriate amount. End of year Investment Report

13.18 At the end of the financial year, the Council will prepare a report on its investment activity as part of its Annual Treasury Management Report.

TREASURY BUDGET

Table 25: Treasury Budget

2013/14 2013/14 2014/15 Budget Forecast Budget

£'000 £'000 £'000 Interest due on external borrowing 28,177 24,926 32,930

Interest earned on temporary lending (1,583) (1,523) (1,078)

Net interest charge 26,594 23,403 31,852

Minimum Revenue Provision 16,295 13,757 16,488

Net Minimum Revenue Provision 16,295 13,757 16,488

Charge to HRA (7,266) (7,266) (8,423)

Credit to HRA –interest on HRA cash balances 614 125 50

Net charge to HRA (6,652) (7,141) (8,373)

Net charge to General Fund 36,237 30,019 39,967

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14 Financial Implications

14.1 Forecast outturn investment income for 2013/14 is currently £1.6m more or less in line with the budget. For 2014/15 budgeted investment income is estimated at approximately £1m to reflect lower interest rates being achieved as investments are being placed for shorter durations and short term interest rates have been depressed.

14.2 The bulk of the Treasury underspend resulted from savings in borrowing costs and MRP. Savings on borrowing have accrued because no borrowing has so far been raised in 2013/14 to meet the council’s underlying need to borrow.

14.3 Minimum Revenue Provision (MRP) which is the charge to revenue to ensure that

debt used to finance expenditure is paid over a period that reflects useful life of the capital expenditure also came in at £2.5m less than budget. This is because a number of schemes have not been completed and under current regulations charges can be deferred until the asset comes into use. As such the budget for 2014/15 has been adjusted to reflect the likelihood of a number of capital schemes due to complete in 2014/15. The Council can also choose to levy more than the minimum charge to revenue.

14.4 The principle that any savings arising from the treasury budget can be deployed to

direct revenue financing of capital expenditure has been agreed by Members. This opportunity of additional support for capital saves the Council revenue costs on borrowing. Every £1m deployed in this way saves some £0.100m per year in capital financing costs. Hence, any savings generated from the treasury operations can be directed to fund the capital programme.

15 Balanced Budget Requirement

15.1 The Council complies with the provisions of S32 of the Local Government Finance Act 1992 to set a balanced budget.

15.2 Risk management plays a fundamental role in treasury activities due to the value and

nature of transactions involved. In order to mitigate risks on investment income the Council holds a Treasury Interest rate equalisation reserve, with the aim of providing a fund in anticipation of future volatility in investment income arising in the treasury management budget. This reserve balance currently stands at £2.7m.

15.3 Budgeting for MRP under the new guidance method requires the Council to make

provision for MRP linked to the life of the assets being enhanced. This has made budgeting for MRP more complex and sensitive to changes in assets being financed and the amount on unsupported borrowing used.

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Appendix 5: Treasury Management Strategy Statement, MRP Strategy and Annual Investment Strategy 2014/15 ANNEX 1. TREASURY MANAGEMENT POLICY STATEMENT The London Borough of Ealing defines the policies and objectives of its treasury management activities as follows: - 1. This organisation defines its treasury management activities as: “The management of the authority’s cash flows, its banking, money market and capital market transactions; the effective control of the risks associated with those activities; and the pursuit of optimum performance consistent with those risks”. 2. This organisation regards the successful identification, monitoring and control of risk to be the prime criteria by which the effectiveness of its treasury management activities will be measured. Accordingly, the analysis and reporting of treasury management activities will focus on their risk implications for the organisation. 3. This organisation acknowledges that effective treasury management will provide support towards the achievement of its business and service objectives. It is therefore committed to the principles of achieving best value in treasury management, and to employing suitable performance measurement techniques, within the context of effective risk management.”

77

Appendix 5: Treasury Management Strategy Statement, MRP Strategy and Annual Investment Strategy 2014/15 ANNEX 2. Treasury management scheme of delegation (i) Full Council

receiving and reviewing reports on treasury management policies, practices and activities

approval of/amendments to the organisation’s adopted clauses, treasury management policy statement

approval of annual strategy.

(ii) Section 151 Officer/ Director of Finance

budget consideration and approval

approval of the division of responsibilities

receiving and reviewing regular monitoring reports and acting on recommendations

approving the selection of external service providers and agreeing terms of appointment.

(iii) Audit Committee

reviewing the treasury management policy and procedures and making recommendations to the responsible body.

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The treasury management role of the section 151 officer

The S151 (responsible) officer/ Director of Finance

recommending clauses, treasury management policy for approval, reviewing the same regularly, and monitoring compliance

formulating consulting on and approving the Treasury Management Practices, outlining the detailed manner in which the treasury management function will operate

submitting regular treasury management policy reports

submitting budgets and budget variations

receiving and reviewing management information reports

reviewing the performance of the treasury management function

ensuring the adequacy of treasury management resources and skills, and the effective division of responsibilities within the treasury management function

ensuring the adequacy of internal audit, and liaising with external audit

recommending the appointment of external service providers.

Policy on the use of external service providers The Council uses Capita Asset Services as its external treasury management advisers. The Council recognises that responsibility for treasury management decisions remains with the organisation at all times and will ensure that undue reliance is not placed upon our external service providers. It also recognises that there is value in employing external providers of treasury management services in order to acquire access to specialist skills and resources. The Council will ensure that the terms of their appointment and the methods by which their value will be assessed are properly agreed and documented and subjected to regular review. Following a tendering exercise in 2010, Capita (then known as Sector) were re-appointed as the Council’s treasury advisers for a period of 3 years from October 2010 to September 2013 with an option to extend for a further one year, that extension was granted and the Service is due to expire in September 2014. A retendering process will commence in June 2014.

79

80

(INCLUDED IN THE CAPITAL PROGRAMME )

!tt9b5L· с!Υ CAPITAL PROGRAMME MAINSTREAM ADDITIONS AGREED AS PART OF THE 2014/15

BUDGET PROCESS

81

Appendix 6aNew Capital Investments- Budget Review 2014/15

Total Funding

Ref No Service Headline and brief description of proposal 2014/15 2015/16 2016/17 2017/18 2014/15-2017/18

£000 £000 £000 £000 £000

Mainstream funding

1 Schools Primary Schools expansions, extensions and re-modelling to provide school places following projected increases in school age population in the borough to provide additional permanent forms of entry

- 4,100 6,819 2,000 12,919 M

2 Schools

Primary Schools expansions, extensions and re-modelling to provide school places following projected increases in school age population in the borough to provide additional permanent forms of entry - New Programme from 2016-17 onwards.

- - 10,000 10,000 20,000 M

Total Schools - 4,100 16,819 12,000 32,919

3 E&CS Directorate

Ward Forum Ward specific capital funding for various schemes to be identified by ward councillors in consultation with local residents. Each Ward has an allocation of £30k in 2017/18.

- - - 690 690 M

4 E&CS Directorate

Havelock Family Centre Refurbishment of the Family Centre including creation of new nursery provision. 116 84 - - 200 M

5 E&CS Directorate

Gunnersbury Park Phase 3 Sports Hub Creation of Sports Hub at Gunnersbury Park in accordance with the Gunnersbury Park master plan, including changing facilities, social space, café and indoor hall.

250 - - - 250 M

Total E&CS Directorate 366 84 - 690 1,140

82


Total Funding


£000 £000 £000 £000 £000

6 Environment & Leisure

Greenford Cemetery Extension Creation of new plots at Greenford Cemetery by rationalising its roads and paths to create more space. 300 300 - - 600 M


Replacement of Street Litterbins Replacement of litterbins throughout the Borough. - 25 25 25 75 M


Infrastructure Renewal Priority resurfacing works to the Council's carriageways and footways. - - - 3,500 3,500 M


Borough Roads & Principal Roads Capitalisation Works to be carried out to Borough and Principal roads including signage, street markings, gullies, kerbs, paving, resurfacing and staff capitalisation.

- - - 500 500 M


Street Lighting in Crime Hotspots Additional street lighting to increase the overall light levels in areas throughout the Borough identified as suffering from high levels of crime at night.

- - 100 100 200 M


Gully Renewal Replacement of road gullies, used to clear water from the highway, that have reached the end of their useful economic lives. - - - 100 100 M

Total Environment and Leisure 300 325 125 4,225 4,975

83


Total Funding


£000 £000 £000 £000 £000

12 Built Environment

Disabled Facilities Grant - To increase the allocation to match expected demand for this statutory service and extend the programme to 2017/18. - - - 1,500 1,500 M

13 Built Environment

Other Grants (Improvement Grants) - To extend the programme to 2017/18 of these small scale capital improvement grants to elderly and disabled residents. Mainly the handyperson service.

- - - 300 300 M

Total Built Environment - - - 1,800 1,800 -

14 Property & Regeneration

Delivery of Southall Big Plan - for the regeneration of Southall Gateway to deliver various projects, including: Land Assembly; Junction Improvements; Cross Rail Public Realm Improvements; King Street Public Realm Improvements.

300 50 800 750 1,900 M

Total Property and Regeneration 300 50 800 750 1,900

15 Safer Communities

Gating Programme and Crime Prevention - to provide; alley gating to residents to reduce crime; home security measures for victims of residential burglary and domestic violence; security measures to support crime prevention and purchase of vehicle to assist in delivery of the project.

310 310 310 - 930 M

Total Safer Communities 310 310 310 - 930

Total mainstream funded schemes 1,276 4,869 18,054 19,465 43,664

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APPENDIX 6B: CAPITAL PROGRAMME SPECIFIC ADDITIONS AGREED AS PART OF THE 2014/15 BUDGET

PROCESS (INCLUDED IN THE CAPITAL PROGRAMME )

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Appendix 6bNew Capital Investments- Budget Review 2014/15

Total Funding


£000 £000 £000 £000 £000

Specific funding

1 Schools Primary Schools expansions, extensions and re-modelling to provide school places following projected increases in school age population in the borough to provide additional permanent forms of entry.

- 4,900 2,181 - 7,081 G

Total Schools - 4,900 2,181 - 7,081

2 E&CS Directorate

Havelock Family Centre - Grant Refurbishment of the Family Centre including creation of new nursery provision. - 420 - - 420 G

3 E&CS Directorate

Gunnersbury Park Phase 3 Sports Hub - Grant Creation of Sports Hub at Gunnersbury Park in accordance with the Gunnersbury Park master plan, including changing facilities, social space, café and indoor hall.

150 1,565 1,360 85 3,160 G

4 E&CS Directorate

Gunnersbury Park Phase 3 Sports Hub - Partnership Creation of Sports Hub at Gunnersbury Park in accordance with the Gunnersbury Park master plan, including changing facilities, social space, café and indoor hall.

- - 205 45 250 P

5 E&CS Directorate

Match Funding for Sports Development Projects - Grant Upgrade to ancillary sports facilities at Perivale Park and Ealing Central Sports Ground. 42 758 - - 800 G

Total E&CS Directorate 192 2,743 1,565 130 4,630

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Appendix 6bNew Capital Investments- Budget Review 2014/15

Total Funding


£000 £000 £000 £000 £000

6 Built Environment

Hanwell Station Secondary Entrance - To provide a pedestrian route and access to the majority of station users who live on south side of the station and to improve passenger safety with new lighting and CCTV.

110 - - - 110 G

7 Built Environment

Hanwell Station Secondary Entrance - To provide a pedestrian route and access to the majority of station users who live on south side of the station and to improve passenger safety with new lighting and CCTV.

50 - - - 50 P

8 Built Environment

Disabled Facilities Grant - To increase the allocation to match expected demand for this statutory service and extend the programme to 2017/18. - - - 1,200 1,200 G

Total Built Environment 160 - - 1,200 1,360


Delivery of Southall Big Plan - for the regeneration of Southall Gateway to deliver various projects, including Land Assembly; Junction Improvements; Cross Rail Public Realm Improvements; King Street Public Realm Improvements.

80 5,700 220 - 6,000 P


Delivery of Southall Big Plan - for the regeneration of Southall Gateway to deliver various projects, including Land Assembly; Junction Improvements; Cross Rail Public Realm Improvements; King Street Public Realm Improvements.

2,020 - - - 2,020 S

Total Property and Regeneration 2,100 5,700 220 - 8,020

Total specific funded schemes 2,452 13,343 3,966 1,330 21,091

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APPENDIX 7: CAPITAL PROGRAMME HRA ADDITIONS AGREED AS PART OF THE 2014/15 BUDGET PROCESS

(INCLUDED IN THE CAPITAL PROGRAMME )

88

Appendix 7New Capital Investments- Budget Review 2014/15 Total

No Service Headline and brief description of proposal 2014/15 2015/16 2016/17 2017/182014/15-2017/18 Funding

£ '000 £ '000 £ '000 £ '000 £ '000

HRA

1 HRA Green Man Lane Estate Regeneration Funding the purchase of properties to enable the development of phases 3 and 4. 1,836 335 2,783 - 4,954 M

2 HRACopley Close Regeneration Purchase of leasehold properties in blocks to support the decanting of residents during the refurbishment of or new development of the scheme.

5,000 3,290 - - 8,290 M

3 HRA Council New Build Round 3 New programme to build 74 units across 8 sites. 17,600 - - - 17,600 M

Sub Total Mainstream 24,436 3,625 2,783 - 30,844

1 HRA Dean Gardens The purchase of properties for phases two and three of the programme. - 1,706 - 998 2,704 C

2 HRA Havelock Estate Additional purchases of properties to complete phase 2 and to begin phase 3 of the programme. - - 5,200 - 5,200 C

3 HRA Rectory Park Regeneration Additional purchases of properties to enable the development of phase 4 of the regeneration - - - 2,000 2,000 C

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Appendix 7New Capital Investments- Budget Review 2014/15 Total

No Service Headline and brief description of proposal 2014/15 2015/16 2016/17 2017/182014/15-2017/18 Funding

£ '000 £ '000 £ '000 £ '000 £ '000

4 HRA South Acton Regeneration Additional purchases of properties to enable the development of phases 6 and 7. - - 5,000 6,400 11,400 C

5 HRAAdaptations for Disabled To continue to carry out adaptations of premises to enable disabled council tenants to continue to live in their homes.

- - - 1,100 1,100 C

6 HRAHousing Stock Improvements Additional works to support the conversions of current HRA stock and the remodelling of sheltered schemes

5,450 1,850 14,450 19,450 41,200 C

Sub total - Specific 5,450 3,556 24,650 29,948 63,604

Total HRA Schemes 29,886 7,181 27,433 29,948 94,448

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SUMMARY OF PARKING ACCOUNT 2014/15

2013/14 2014/15Budget Budget

£000 £000

Income (14,347) (14,447) A

Expenditure Management 2,844 2,684 On street enforcement 2,945 2,800 Appeal fund PCNs 441 441

6,230 5,925

(8,117) (8,522)Less:Contribution to Concessionary Fares 8,117 8,522 improvements in Parking andTransport related schemes

(Surplus) / Deficit - -

A INCOME MOVEMENT

2013/14 (14,347)In year virements 0 Additional Income (100)2014/15 (14,447)

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Appendix 9: Ealing’s Capital Strategy 2014/15 to 2017/18

EALING’S CAPITAL STRATEGY

2014/15 to 2017/18

1 CAPITAL STRATEGY

1.1 Purpose and Aims of the Capital Strategy

The Capital Strategy outlines the Council’s approach to capital investment, ensuring that it is in line

with the Council’s corporate priorities. It is good practice that Capital Strategy and asset

management plans are regularly reviewed and revised to meet the changing priorities and

circumstances in Ealing. Ealing Council’s capital strategy is reviewed on an annual basis to reflect

the changing needs and priorities of the residents.

1.2 The key objective of Ealing’s Capital Strategy

The key objective of the Capital Strategy is to deliver a capital programme that:

Ensures the Council’s capital assets are used to support the delivery of services according to

priorities within the Corporate Plan and the Council’s vision;

Links with the Council’s Asset Management Plan;

Is affordable, financially prudent and sustainable;

Ensures the most cost effective use is made of existing assets and new capital investment;

Supports other Ealing service specific plans and strategies.

The resources to deliver capital strategy are allocated through the budget review process that sets

the four year rolling capital programme as part of the annual budget setting process.

1.3 The Council’s Corporate Objectives and Priorities

The capital budgets within the capital strategy support the key priorities laid out in the Council’s

Corporate Plan. Each capital proposal is required to specify on its appraisal form clearly how the

project links to the corporate plan. The key priorities of the plan are:

Make Ealing safer – Make Ealing one of the safest boroughs in London by lowering crime

rates, reducing fear of crime and tackling anti- social behaviour and hate crime. Ensure that

Ealing is a safe place for children and young people to grow up.

Secure our public services – Deliver high quality public and community services which

residents find easy to access.

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Secure jobs and homes – Improve the quality and supply of homes across all tenures and

increase significantly the number of affordable homes. Confirm Ealing’s position as a high-

quality metropolitan centre.

Make Ealing cleaner – Improve the cleanliness, design and quality of our streets, town

centres, housing estates and parks, as well as tackling the impact of climate change.

Deliver value for money – Promote value for money and efficiency in service delivery by

providing community leadership, working effectively with our partners, contractors and

communities.

2 APPROACH TO INVESTMENT PRIORITASATION

2.1 The Capital Programme

The existing capital programme covering the period 2013/14 to 2016/17 was agreed as part of the

budget setting process at Council on 26 February 2013 and updated by Cabinet in July 2013 in

light of the 2012/13 final outturn for capital spend.

This current Capital programme is being updated at present as part of the 2014/15 budget setting

process and will be agreed at Council on 25 February 2014. The revised capital programme going

forward will cover the years 2014/15 to 2017/18.

2.2 Identification and prioritisation of Capital Investment needs

The basis of the Capital Programme is driven by the budget and service planning process. This

process begins in the early stages of the financial year (June/July). The size of the Capital

Programme is determined by:

The need to incur capital expenditure

Capital resources available

The revenue implications flowing from the capital expenditure.

As part of the budget planning process, services submit capital proposals to be considered by

Members for investment decisions. In general, a capital investment appraisal process will focus on:

Strategic case – policy and strategic fit

Economic case – value for money, cost benefit context

Financial case – affordability and resources

Commercial case – commercially viable e.g. is outsourcing a better option?

Management case – capabilities and capacity within the Council to be able to manage and

deliver such a project.

Capital investment proposals are presented on the standard Capital Bid Appraisal form that

includes the following sections: Description of the project, Project outcomes (including how it

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supports the Council’s key priorities), Key dates and milestones, Costs of the Scheme, Revenue

implications, Funding Source, Risks, Evaluation and Scoring matrix, and Dependencies

(factors/events that need to happen before the project can proceed).

2.3 Capital Projects Evaluation and Scoring Matrix

Elected Members determine the projects to be included within the capital programme in light of the

relative priorities and the overall impact on the revenue budget.

Each Capital bid is awarded a rating ranging from 0 to 10. This rating is determined by adding the

number of scored points in 9 categories, each with a weighting based on its significance to Ealing

Council’s corporate priorities.

To assist the decision making process capital investment proposals are prioritised on the basis of

the final awarded score according to the following categories:

8 –10 points: High Priority

5 – 7 points: Medium Priority

1 – 4 points: Low Priority

The table below shows the nine categories that are used in the evaluation of new capital

investment proposals (Annexe 1 includes the whole capital appraisal form)

Evaluation criteria

Weighting based on significance to the councils

corporate objectives

1 Meets corporate objectives (policy priority) 20%

2 Produces ongoing revenue/capital savings (significant proportion of the capital outlay)

15%

3 Meets directorate/service plan objectives and statutory/government requirements

20%

4 Is wholly or partly funded from external resources

10%

5 Is complementary to existing projects

10%

6 Resources that are required to implement the scheme/asset - money and people.

5%

7 Urgency/importance of the investment - consequences of delay or project rejection including risk evaluation

10%

8 Value For Money assessment

5%

9 Other: discretionary award – any other criteria which are important and not included anywhere

5%

TOTAL 100%

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2.4 Assessment of proposals and timetable

Capital proposals are presented at a capital budget review meeting, which takes place in the

autumn each year. The meeting is attended by the Leader of the Council, Members, Chief

Executive Director, Executive Director of Corporate Resources, Director of Corporate Finance and

Corporate Finance officers. The budget review panel considers the new capital proposals which

are assessed based on information set out in the capital appraisal form and scoring matrix as

described in section 2.3. The Council’s policy is to agree the rolling capital programme on an

annual basis at the February Council meeting. Once approved, the programme is published in the

Budget Book and on the Council’s website. The timetable for capital proposals proceeding into the

capital programme is as follows:

Date Action

June-Aug Services develop initial capital bids within Departmental Management Teams

Sept Bids submitted to Financial Planning for review and assessment of available

resources

Oct-Nov

Nov

Projects considered at budget review panel meetings

Cabinet considers new capital investment proposals

Dec-Jan Financial Planning prepare draft capital programme for consultation

Feb Cabinet considers and recommends final capital programme to Council

Feb Council approves capital programme

2.5 Invest to save – capital proposals

There is a mechanism in place at Ealing Council where services are encouraged to drive

innovation in service provision, which delivers cash savings and leads to a sustainable invest-to

save reserve. This invest-to-save reserve can be accessed at any time, not just during the budget

setting process. See Annexe 2 for more details about the scheme.

3 FUNDING SOURCES AND INVESTMENT DECISIONS

3.1 Borrowing

The Council seeks to minimise the level of borrowing required to finance capital expenditure by

maximising grants and contributions received, and ensuring that any surplus assets are sold. The

Council can decide how much they borrow to fund their capital programme. The current policy is to

borrow only the amount that the Council consider to be prudent and affordable.

The Local Government Act 2003 replaced the previous system of Local Government Capital

Finance with a new one, known as the ‘Prudential Regime’ from 1 April 2004. In the Prudential

Regime each local authority decides their own borrowing limits, whereas previously local

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authorities were only able to borrow in line with central government prescribed limits. These new

borrowing limits must take account of the authority’s financial situation, medium term financial

plans and in particular affordability, as funding of capital expenditure has an ongoing revenue cost

which must be met from Council Tax or, for Housing investment, from housing rental income.

CIPFA has developed a Prudential Code of Capital Finance in Local Authorities, which specifies

those indicators that the Council must consider as a part of their budget setting process. These

are included in the annual budget report to Council and have become an increasingly important

aspect of the annual budget setting process.

3.2 Capital Receipts

A capital receipt is an amount of money exceeding £10,000, which is generated from the sale of an

asset. The need to generate capital receipts is a fundamental part of the asset management

strategy. The rationalisation of the asset portfolio has benefits such as reducing revenue costs that

relate to surplus assets and also releases assets for disposal. Capital receipts are an important

funding source for the current capital programme.

The Council’s policy is to treat all capital receipts as a corporate resource, enabling investment to

be directed towards those schemes or projects with the highest corporate priority. This means that

individual services are not reliant on their ability to generate capital receipts.

The timing and value of asset sales is the most volatile element of funding. As a result, the

Executive Director of Corporate Resources closely monitors progress on asset disposal. Any in-

year shortfalls need to be met from increased borrowing, up to the “Authorised Borrowing Limit”.

3.3 Specific Funding for Schemes

Revenue Funding

Although the opportunities to fund capital expenditure directly from the general fund revenue

budget are limited, there are examples of revenue funding contribution to capital e.g. funds are

allocated from the Housing Revenue Account to supplement the capital resources allocated to

improving the Council’s housing stock.

External Funding

This covers a variety of funding sources such as specific invitations from central Government – for

example through earmarked grant funding. Schools benefit from a significant amount of capital

grants to fund their expansion and improvement projects. Ealing also receives funding from

Transport for London (TfL) to fund particular capital schemes in Environment and Leisure.

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A significant amount of this service’s capital expenditure is also funded through negotiated Section

106 Planning Gain Agreements.

Ealing will work in partnership with other agencies and service providers to ensure the ambitions

for the area are delivered. Ealing aims to facilitate capital investment by other bodies where it

meets local priorities.

3.4 Consideration of Capital proposals attracting specific funding

Schemes attracting partial external funding, such as grants for private sector housing, will be

assessed in the same way as those schemes which require 100% of funding from borrowing and

will only be included within the capital programme if they meet the Council’s needs, objectives and

priorities. Schemes attracting 100% external funding would normally be included automatically

within the capital programme, subject to confirmation of the external funding and that the scheme

meets the Council’s priorities. Such schemes are usually supported by Capital Grants, or receipts

from agreements under Section 106 of the Town and Country Planning Act 1990. A capital bid

appraisal form still needs to be completed for these proposals.

4 MONITORING OF THE CAPITAL PROGRAMME DELIVERY

4.1.1 Officers monitor implementation of the Capital Programme on a regular basis with reports being

submitted monthly to the Finance Strategy Group, and to Corporate Board and Members. The

Budget Monitor is then reported to Cabinet in January, July and October each year.

4.2 All processes and procedures relating to the monitoring of the capital programme are set out in the

Council’s Financial Regulations. The following are key controls:

All capital expenditure must be carried out in accordance with contract procedure rules and

financial regulations.

The expenditure must comply with the statutory definition of “capital purposes” as interpreted in

guidance issued by the Executive Director of Corporate Resources.

Once the scheme has been included in the capital programme following the budget setting

process, a further report providing more detail and seeking specific approval must be submitted

to Cabinet for schemes with a value over £250k or to FSG (Finance Strategy Group) with the

Portfolio Holder sign off for schemes costing less than £250k

Officers must ensure that the budget for each capital project is under the control of a

nominated project manager.

The capital governance has been further strengthened through the establishment of the Capital

Review Board. This is a group made up of senior officers from each of the Council’s directorates to:

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Receive reports on the progress of service capital programme, enabling them to monitor and

challenge;

Monitor compliance with the financial approvals process;

Receive capital option appraisals ensuring that investment proposals are consistent with key

corporate goals and service objectives, and are affordable;

The Capital Review Board meets on a bi-monthly basis. This process supplements the monitoring

reports considered by Finance Strategy Group and Corporate Board on a monthly basis.

5 LINKS TO THE MEDIUM TERM FINANCIAL STRATEGY (MTFS)

All capital investment must be sustainable in the long term through revenue support by the Council

or its partners. All capital investment decisions consider the revenue implication both in terms of

servicing the finance and running costs of the new assets. The impact of the revenue implications

is a significant factor in determining approval of projects.

The use of capital resources has been fully taken into account in the production of the Council’s

MTFS.

REVISED JANUARY 2014

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Annexe 1 Capital Project Bid Appraisal Form CG1

Capital project bid appraisal

Section 1 Introduction Service Name of project Project manager Responsible Director Section 2 Project description Description of project/objectives/benefits

Dependencies

Consequences of not proceeding with project & RISKS

Anticipated timescales and cash flow

Milestones Capital £ Revenue £ Timescale

Expected outputs

Useful life of asset

Asset or component Cost £000 Useful economic life

Section 3 Evaluation criteria

1 Meets corporate objectives (policy priority) 20%

2 Produces ongoing revenue /capital savings (significant proportion of the capital outlay)

15%

3

Meets directorate /service plan objectives and statutory /government requirements

20%

4 Is wholly or partly funded from external resources

10%

5 Complementary to existing projects

10%

6 Resources that are required to implement the scheme/asset - money and people.

5%

7 Urgency /importance of the investment consequences of delay or project rejection including risk evaluation.

10%

8 Value For Money assessment.

5%

9 Other: discretionary award – any other criteria which are important and not included anywhere

5%

TOTAL 100%

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Section 4 Financial case

This section sets out the whole life cost of the Project, i.e. capital and revenue costs

Section 4a - Capital Costs & profile of spend

Year 1 Year 2 Year 3 Year 4 Year 5+ Total

£000 £000 £000 £000 £000 £000

Works

Fees

Equipment

Other

Total

Section 4b Funding source

Details Year 1 Year 2 Year 3 Year 4 Year 5+

Total

£000 £000 £000 £000 £000 £000

Total Funding

Impact of borrowing on Revenue Capital repayment (over life of asset) e.g. 10 years (MRP) *(1)

Interest charge *(2) Approximate cost of capital for new borrowing e.g. 4.5%

Total charge to revenue on yearly basis

*(1) Simplified calculation (total asset cost divided by number of years over life of asset) *(2) Allocate over live of asset, calculated on amount borrowed

Section 4c Revenue *costs/savings

Year 1 Year 2

Year 3

Year 4

Year 5+

Comments

£000 £000 £000 £000 £000

Cost

Savings Total net cost/(saving)

*Running cots or savings only, e.g. energy, staff, security etc

Section 5 Carbon emission reduction

Section 6 VAT - partial exemption implications

Section 7 Bid submission Authority to submit bid Submitted by ………………………. Date: ………… Post title ……………………………… Authorised by HOF …………………………………………… Approved by Service director /Exec Director ……………

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Process for approval of invest to save capital bids Options - All of the options below will involve the creation of a reserve from which savings ideas will be funded. This reserve will need to be replenished in order to be self-sustaining. Option 1 * Payback (to the reserve) ASAP i.e. 100% of saving rate, max over four years

Option 2 * Payback at rate min of 50% of saving per annum – maximum four years

*Service areas have a choice of one of the above

How the new scheme and savings were to be approved. The standard capital appraisal form will be put forward to Capital Review Board (CRB)

for consideration and approval.

Once approved by CRB, the proposal will be put forward to Cabinet for approval and inclusion in the capital programme. An individual Cabinet report is only required for schemes valued over £50k, schemes under the value of £50k can be included in the regular corporate budget update Cabinet report.

Illustration of options 1& 2 Option 1 - Payback (to the reserve) ASAP i.e. 100% of saving rate, max over 4years. Investment in CCTV Year 0 £200k

Revenue savings paid back to reserves in total over two years (£200k) (e.g. Y1 £100k, Y2 £100k)

From year 3, the service has £100k available to utilise either towards savings or other use

Option 2 - Payback at rate of 50% of saving per annum – max 4 years.

Investment in CCTV Year 0 £200k

Year 1 to 4 savings paid to reserves £100k *50% (£50k)

Revenue savings taken off the cash limit - from Year 1 onwards (£50k)

Year 5 Service has further £50k to utilise either towards savings or other use as the capital outlay is repaid in full to reserves by year 5.

Note: Both options require 100% repayment of capital outlay to the reserves. Should the scheme fail to generate the anticipated savings, the service will have to pay back the capital from their own resources to replenish the invest to save reserve.

Annexe 2

Invest-to-Save options Following approval of the process by Corporate Board in November 2010 this paper sets out the detailed framework to enable approval of new capital schemes outside of the usual budget process to drive innovation in service delivery which:

Delivers cash savings

Leads to a sustainable Invest-to-save reserve which can be accessed anytime, not just during the budget process.

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Appendix 10

Property Disposals for 2014/15 to 2016/17 as at January 2014 2014/15 2015/16 2016/17 Total

£000 £000 £000 £000

A Stirling Road Day Centre x

A 301 Ruislip Road, Greenford x

A Churchfield Road Car Park, Acton x

A Car Park, Verona Terrace, Southall x

A Resource Centre Southall x

GActon Town Hall surplus site x

A Acton Library x

A Adelaide Dock Wharf, Southall x

GDickens Yard x

Total x - x 22,360

G Receipts - Received/Agreed

A Anticipated Receipt (still on track for delivery)

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Total Budget SERVICE Budget Budget Budget Budget Budget 2013/14

2013/14 2014/15 2015/16 2016/17 2017/18 2017/18£000 £000 £000 £000 £000 £000

SCHOOLS SERVICE 60,697 61,352 34,352 42,525 20,000 218,926

ADULTS SERVICES 1,930 1,296 - - - 3,226






CORPORATE RESOURCES 7,608 9,676 4,002 1,089 - 22,375



REGENERATION 23,031 9,316 5,750 1,020 750 39,867


COUNCIL WIDE CAPITAL - - - - - -

General Fund Total 126,982 130,811 60,595 56,607 29,626 404,621

HRA 51,195 89,783 50,460 48,119 34,166 273,723

Total 178,177 220,594 111,055 104,726 63,792 678,344

Summary Capital Programme 2013/14 - 2017/18

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APPENDIX 11: SUMMARY CAPITAL PROGRAMME

Total Budget SERVICE Budget Budget Budget Budget Budget 2013/14

2013/14 2014/15 2015/16 2016/17 2017/18 2017/18£000 £000 £000 £000 £000 £000

FUNDED BY:



Grant 49,331 45,841 31,539 13,682 1,285 141,678

Revenue Contribution 3,747 5,424 - - - 9,171

Parking Reserve 355 35 - - - 390

Insurance Reserve - - - - - -

Partnership 786 192 5,700 425 45 7,148

S106 4,158 1,757 63 - - 5,978

Total General Fund 126,982 130,811 60,595 56,607 29,626 404,621

HRA



Grant 2,793 924 - - - 3,717

HRA Other:Major Repairs/ Depreciation Reserve 36,306 49,951 27,046 29,294 29,948 172,545

Total HRA 51,195 89,783 50,460 48,119 34,166 273,723

Total Funding 178,177 220,594 111,055 104,726 63,792 678,344

Mainstream Funding General Fund

Borrowing 64,231 64,929 23,293 32,500 28,296 213,249

Capital Receipts 4,160 12,360 - 10,000 - 26,520

Revenue Contribution - - - - - -

Reserves 214 273 - - - 487

Total Mainstream Funding 68,605 77,562 23,293 42,500 28,296 240,256

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SCHOOLS SERVICE

TotalBudget

Item Scheme Budget Budget Budget Budget Budget 2013/14

2013/14 2014/15 2015/16 2016/17 2017/18 2017/18

£000 £000 £000 £000 £000 £000

1 MONTPELIER PRIMARY SCHOOL - NEW PUPIL PLACES M 40 - - - - 40

2 SCHOOLS ELECTRICAL INSTALLATION WIRING: M 31 - - - - 31

3 PRIMARY SCHOOLS EXPANSIONS M 13,717 4,000 348 6,332 - 24,397

PRIMARY SCHOOLS EXPANSIONS S 1,654 - - - - 1,654

PRIMARY SCHOOLS EXPANSIONS G 854 - - - - 854

4 PRIMARY SCHOOLS EXPANSIONS - NEW PROGRAMME M 5,100 17,050 1,870 - - 24,020

PRIMARY SCHOOLS EXPANSIONS - NEW PROGRAMME G 4,368 - - - - 4,368

PRIMARY SCHOOLS EXPANSIONS - NEW PROGRAMME P 291 - - - - 291

5 PRIMARY SCHOOLS EXPANSIONS - TEMPORARY SCHOOL PLACES G 715 - - - - 715

PRIMARY SCHOOLS EXPANSIONS - TEMPORARY SCHOOL PLACES M - - - 1,250 - 1,250

6 CONDITION & SAFETY WORKS DURDANS PARK P - PHASE 2 G 47 - - - - 47

7 ST VINCENT SUITABILITY AND SUFFICIENCY WORKS M - 500 - - - 500

ST VINCENT SUITABILITY AND SUFFICIENCY WORKS G 100 466 - - - 566

8 PRIMARY SCHOOLS EXPANSIONS 2014/15-16/17 M - - 4,100 7,534 2,000 13,634

PRIMARY SCHOOLS EXPANSIONS 2014/15-16/17 G 1,000 15,621 9,061 3,409 - 29,091

9 PRIMARY SCHOOLS EXPANSIONS - 2016/17 ONWARDS M - - - 10,000 10,000 20,000

10 ALL THROUGH SPECIAL EDUCATION NEEDS PROVISION G 94 5,800 5,773 - - 11,667

11 SPECIAL EDUCATION NEEDS PRIMARY BULGE G 312 - - - - 312

12 SPECIAL EDUCATION NEEDS PRIMARY PERMANENT G 4,762 8,960 3,400 6,000 - 23,122

13 NEW SPECIAL EDUCATION NEEDS (SEN) M - - 500 2,000 5,000 7,500

PRIMARY SCHOOLS 33,085 52,397 25,052 36,525 17,000 164,059

Funding Source

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SCHOOLS SERVICE

TotalBudget


2013/14 2014/15 2015/16 2016/17 2017/18 2017/18

£000 £000 £000 £000 £000 £000

Funding Source

14 BUILDING SCHOOLS FOR THE FUTURE G 5,876 - - - - 5,876

BUILDING SCHOOLS FOR THE FUTURE M 81 - - - - 81

15 NEW HIGH SCHOOL - GREENFORD G 10,021 - - - - 10,021

NEW HIGH SCHOOL - GREENFORD R 708 500 - - - 1,208

20 EALING DIPLOMA AND ENTERPRISE CENTRE G 1,153 - - - - 1,153

EALING DIPLOMA AND ENTERPRISE CENTRE R 373 - - - - 373

21 SECONDARY EXPANSION -ACTON HIGH M 1,714 - - - - 1,714

SECONDARY EXPANSION -ACTON HIGH P 134 - - - - 134

22 SECONDARY EXPANSION - PERMANENT STRUCTURE G - 1,400 5,600 1,713 - 8,713

SECONDARY EXPANSION - PERMANENT STRUCTURE M - - - 4,287 3,000 7,287

23 VILLIERS HIGH 6TH FORM & CANTEEN R - 780 - - - 780

24 NORTHOLT HIGH CAPITAL IMPROVEMENTS R 500 - - - - 500

SECONDARY SCHOOLS 20,560 2,680 5,600 6,000 3,000 37,840

25 SCHOOLS NDS DEVOLVED CAPITAL G 1,654 1,300 - - - 2,954

26 HEALTH & SAFETY WORKS M 100 - - - - 100

27 EXTENDED SCHOOLS INITIATIVE 2009-10 G 84 - - - - 84

28 MECHANICAL SERVICES WORKS 2010-11 M 33 - - - - 33

29 AUTOMATIC FIRE DETECTION SYSTEM M 45 - - - - 45

30 KITCHEN EXTRACT CANOPIES - HEALTH & SAFETY WORKS M 12 - - - - 12

31 ELECTRICAL SERVICES & FIRE SAFETY COMPLIANCE 2011/12 M 962 575 - - - 1,537

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SCHOOLS SERVICE

TotalBudget


2013/14 2014/15 2015/16 2016/17 2017/18 2017/18

£000 £000 £000 £000 £000 £000

Funding Source

32 KITCHEN EXTRACT CANOPIES - HEALTH & SAFETY WORKS - 2011/12 M 40 - - - - 40

33 CONDITION WORKS -VARIOUS SCHEMES G 361 - - - - 361

34 ASBESTOS ABATEMENT SCHOOLS M 100 100 - - - 200

35 HIGH PRIORITY CONDITION WORKS G 3,661 4,300 3,700 - - 11,661

EXP TO BE SPLIT BETWEEN SECTORS 7,052 6,275 3,700 - - 17,027

SCHOOLS SERVICE 60,697 61,352 34,352 42,525 20,000 218,926

FUNDED BY:

Mainstream funding (M & SCER & CR) 21,975 22,225 6,818 31,403 20,000 102,421

Specific funding (split as follows) 38,722 39,127 27,534 11,122 - 116,505

-Grant 35,062 37,847 27,534 11,122 - 111,565

-Revenue Contribution 1,581 1,280 - - - 2,861

-Parking Revenue Account - - - - - -

-Insurance Reserve - - - - - -

-Partnership 425 - - - - 425

-S106 1,654 - - - - 1,654

60,697 61,352 34,352 42,525 20,000 218,926

107


ADULTS SERVICESTotal

Item SCHEME Budget Budget Budget Budget Budget Budget 2013/142013/14 2014/15 2015/16 2016/17 2017/18 2017/18

£000 £000 £000 £000 £000 £000

1 FIRE PRECAUTION WORK - COUNCIL OWNED M 39 - - - - 392 CARE HOME REGISTRATION COMPLIANCE WORK M 21 - - - - 213 ADULTS SOCIAL CARE -SCP (GRANT) G 20 - - - - 204 DEVELOPMENT OF IT INFRASTRUCTURE-ADULTS M 2 - - - - 25 MICHAEL FLANDERS -ROOFING M 32 - - - - 326 IMPROVING CARE HOME ENVIRONMENT FOR OP (GRANT FUND G 30 - - - - 307 NORTH WEST LONDON LD PROJECT G 250 - - - - 2508 SOCIAL CARE REFORM GRANT G 8 - - - - 89 FRAMEWORK I ENHANCEMENT M 96 - - - - 96

10 CAPITAL INVESTMENT IN COMMUNITY CAPACITY G 907 778 - - - 1,68511 IMPLEMENTATION ABACUS MODEL FOR SELF DIRECTED SUPPORT R 25 - - - - 2512 CHILDRENS AND ADULTS IT ROADMAP M 334 393 - - - 727

CHILDRENS AND ADULTS IT ROADMAP G 166 - - - - 16613 COWGATE CENTRE R - 125 - - - 125

ADULTS SERVICES 1,930 1,296 - - - 3,226

FUNDED BY:

Mainstream funding (M & SCER & CR) 524 393 - - - 917Specific funding (split as follows) 1,406 903 - - - 2,309-Grant 1,381 778 - - - 2,159-Revenue Contribution 25 125 - - - 150-Parking Revenue Account - - - - - - -Insurance Reserve - - - - - - -Partnership - - - - - - -S106 - - - - - -

1,930 1,296 - - - 3,226

Funding Source

108


CHILDREN & FAMILIESTotal

Budget Item SCHEMES Budget Budget Budget Budget Budget 2013/14

2013/14 2014/15 2015/16 2016/17 2017/18 2017/18

£000 £000 £000 £000 £000 £000

1 FAMILY SUPPORT SERVICES M 19 - - - - 19

2 RE ORDERING OF YOUTH OFFENDING SERVICE AT CHELTENH M 17 - - - - 17

3 HELLER HOUSE M 17 - - - - 17

4 15 FLORENCE ROAD - MAINTAIN STANDARDS OF RESIDENTI M 21 - - - - 21

5 YOUTH OFFENDING SERVICE H&S M 11 - - - - 11

6 DORMERS WELLS PLAY CENTRE R 10 125 - - - 135

7 CHILDRENS HOMES CAPITAL WORKS M 116 - - - - 116

8 CHILDRENS PLAYGROUNDS 2013-14 G 75 - - - - 75

9 WESTSIDE 2013-14 G 100 - - - - 100

10 YOUTH OFFENDING SERVICE RELOCATION R 115 - - - - 115

11 EARLY EDUCATION FOR TWO-YEAR OLDS G 889 1,000 - - - 1,889


FUNDED BY:

Mainstream funding (M & SCER & CR) 201 - - - - 201

Specific funding (split as follows) 1,189 1,125 - - - 2,314

-Grant 1,064 1,000 - - - 2,064

-Revenue Contribution 125 125 - - - 250



-Partnership - - - - - -

-S106 - - - - - -

1,390 1,125 - - - 2,515

Funding Source

109


E&CS EXECUTIVE DIRECTORATETotal

BudgetItem SCHEMES Budget Budget Budget Budget Budget 2013/14

2013/14' 2014/15' 2015/16' 2016/17' 2017/18' 2017/18

£'000 £'000 £'000 £'000 £'000 £'000

1 MAJOR PROJECTS HERITAGE PROJECTS M 200 200 200 - - 600

2 GUNNERSBURY PARK M 225 400 1,500 1,500 811 4,436

3 GUNNERSBURY PARK PHASE 3 SPORTS HUB M - 250 - - - 250

GUNNERSBURY PARK PHASE 3 SPORTS HUB G - 150 1,565 1,360 85 3,160

GUNNERSBURY PARK PHASE 3 SPORTS HUB P - - - 205 45 250

4 COMMUNITY CENTRES PRIORITY WORKS & IMPROVEMENTS M 456 100 - - - 556

5 LORD HALSBURY PLAYING FIELDS SPORTS CENTRE M 424 - - - - 424

LORD HALSBURY PLAYING FIELDS SPORTS CENTRE G 283 56 - - - 339

6 GURNELL BMX TRACK R 12 - - - - 12

7 DIGITAL ANTENA M 10 - - - - 10

8 ST MARYS CHURCHYARD M 25 - - - - 25

ST MARYS CHURCHYARD P 275 52 - - - 327

ST MARYS CHURCHYARD G 79 - - - - 79

9 HANWELL COMMUNITY CENTRE PHASE 2 M 150 367 - - - 517

10 DURDANS PARKS CRICKET GROUND M 10 - - - - 10

DURDANS PARKS CRICKET GROUND P 40 10 - - - 50

DURDANS PARKS CRICKET GROUND G - 450 - - - 450

11 NOROWOOD HALL SPORTS GROUNDS R 144 206 - - - 350

12 MATCH FUNDING FOR SPORTS DEVELOPMENT PROJECTS R - 275 - - - 275

MATCH FUNDING FOR SPORTS DEVELOPMENT PROJECTS G - 42 758 - - 800

Funding Source

111


PARKING SERVICESTotal


2013/14 2014/15 2015/16 2016/17 2017/18 2017/18

£000 £000 £000 £000 £000 £000

1 PARKING ON-LINE SERVICE IMPROVEMENTS M 17 - - - - 17

2 DIGITAL CCTV & CONTROL ROOM UPGRADE M 361 - - - - 361

3 PARKING DEBT MANAGEMENT SYSTEM PR 265 35 - - - 300

4 UPGRADE OF PAY AND DISPLAY MACHINES PR 90 - - - - 90



FUNDED BY:

Mainstream funding (M & SCER & CR) 378 - - - - 378

Specific funding (split as follows) 355 35 - - - 390

-Grant - - - - - -

-Revenue Contribution - - - - - -

-Parking Revenue Account 355 35 - - - 390



-S106 - - - - - -

733 35 - - - 768

Funding Source

110


E&CS EXECUTIVE DIRECTORATETotal


2013/14' 2014/15' 2015/16' 2016/17' 2017/18' 2017/18

£'000 £'000 £'000 £'000 £'000 £'000

Funding Source

13 HAVELOCK FAMILY CENTRE M - 116 84 - - 200

HAVELOCK FAMILY CENTRE G - - 420 - - 420

MAJOR PROJECTS 2,333 2,674 4,527 3,065 941 13,540

14 NEIGHBOURHOOD GOVERNANCE - NORTH M 480 190 180 180 180 1,210

15 NEIGHBOURHOOD GOVERNANCE - WEST M 315 206 150 150 150 971

16 NEIGHBOURHOOD GOVERNANCE - SOUTH M 381 180 180 180 180 1,101

17 NEIGHBOURHOOD GOVERNANCE - EAST M 432 316 180 180 180 1,288

DIRECT REPORTS - EXECUTIVE SUPPORT MANAGER 1,608 892 690 690 690 4,570


FUNDED BY:


Specific funding (split as follows) 833 1,241 2,743 1,565 130 6,512

-Grant 362 698 2,743 1,360 85 5,248




-Partnership 315 62 - 205 45 627

-S106 - - - - - -

3,941 3,566 5,217 3,755 1,631 18,110

112


ENVIRONMENT & LEISURETotal


2013/14' 2014/15' 2015/16' 2016/17' 2017/18' 2017/18

£'000 £'000 £'000 £'000 £'000 £'000

1 TFL - SMARTER TRAVEL G 165 - - - - 1652 TFL - LOCAL TRANSPORT FUND G 100 - - - - 100

3 INFRASTRUCTURE RENEWAL CARRIAGE & FOOTWAYS 09/10 M 44 - - - - 44

4 INFRASTRUCTURE RENEWAL CARRIAGE & FOOTWAYS 11/12 M 3,000 - - - - 3,000

5 INFRASTRUCTURE RENEWAL CARRIAGE & FOOTWAYS 12/13 M 2,500 3,500 3,500 - - 9,500

6 INFRASTRUCTURE RENEWAL CARRIAGE & FOOTWAYS 13/14 M - - - 3,500 - 3,500

7 INFRASTRUCTURE RENEWAL CARRIAGE & FOOTWAYS 14/15 M - - - - 3,500 3,500

8 ENHANCED INFRASTRUCTURE RENEWAL R 891 1,165 - - - 2,056

9 NEW CPZ PROGRAMME 2011/12 M 78 - - - - 78

10 CPZ EXTENSION PROGRAMME 2011/12 M 17 - - - - 17

11 CPZ PROGRAMME 2012/13 M 135 207 150 - - 492

12 GULLY RENEWAL PROGRAMME 10/11 M 100 100 100 100 100 500

13 DISABLED BAYS AND LINE REPLACEMENT PROGRAMME M 150 150 150 150 - 600

14 SHOPPING PARADE RENEWAL PROGRAMME M 750 965 - - - 1,715

15 SHOPPING PARADE STREETSCAPE, RENEWAL PROGRAMME R 298 - - - - 298

16 TFL - CORRIDORS G 1,415 - - - - 1,415

17 TFL - NEIGHBOURHOODS G 512 - - - - 512

18 TFL - BUS STOP ACCESSIBILITY S 200 - - - - 200

19 TFL - MAJOR SCHEMES G 1,300 - - - - 1,300

Funding Source

113




2013/14' 2014/15' 2015/16' 2016/17' 2017/18' 2017/18

£'000 £'000 £'000 £'000 £'000 £'000

Funding Source

20 STREET LIGHTING IN CRIME HOT SPOTS M 109 102 103 100 100 514

21 FOOTBRIDGE AT MERRICK ROAD M 22 - - - - 22

22 BOROUGH ROADS & PRINCIPAL ROADS WORKS M 500 500 500 - - 1,500

23 CAPITALISATION OF BOROUGH ROADS M - - - 500 500 1,000

24 LED STREET LIGHTING UPGRADE M - 5,800 1,000 - - 6,800

25 PRINCIPAL ROAD ENHANCEMENT G 671 - - - - 671

26 NETWORK MANAGEMENT MOBILE WORKING M 25 - - - - 25

27 PLACES FOR PEOPLE R - 625 - - - 625

28 IMPROVED PLACES FOR PEOPLE R - 500 - - - 500

HIGHWAYS MANAGEMENT 12,982 13,614 5,503 4,350 4,200 40,649

29 NEW & REPLACEMENT STREET LITTERBINS M 51 25 - - - 76

30 REPLACEMENT STREET LITTERBINS M - 25 50 25 25 125

31 DEVICES FOR STREET SERVICES OFFICERS M 15 - - - - 15

32 GARDEN WASTE COLLECTION M 130 20 20 20 20 210

33 PLASTIC RECYCLING CONTAINMENT M 57 - - - - 57

34 RECYCLING WASTE CONTAINERS M 133 100 100 - - 333

35 STREET RECYCLING REWARDS G 241 - - - - 241

36 REPLACEMENT OF TRANSPORT BUILDING ROOF M 7 - - - - 7

STREET SERVICES FALSE 170 170 45 45 1,064

37 PLAYGROUND IMPROVEMENTS M 227 305 100 100 - 732

38 PARKS MINOR CAPITAL WORKS M 23 - - - - 23

39 WALPOLE PARK S 1,031 335 63 - - 1,429

114




2013/14' 2014/15' 2015/16' 2016/17' 2017/18' 2017/18

£'000 £'000 £'000 £'000 £'000 £'000

Funding Source

WALPOLE PARK G 830 335 62 - - 1,227

WALPOLE PARK M 40 - - - - 40

40 PLAYGROUND IMPROVEMENT (NEAP) M 52 20 - - - 72

PLAYGROUND IMPROVEMENT (NEAP) P 41 - - - - 41

41 PLAYGROUND IMPROVEMENTS R - 630 - - - 630

42 GROUND MAINTENANCE NEW IT SYSTEM M 49 - - - - 49

43 PARKS INFRASTRUCTURE IMPROVEMENTS 10/11 M 68 114 - - - 182

44 SPIKES BRIDGE PARK PAVILLION G 138 - - - - 138

45 SPIKES BRIDGE PARK PHASE 3 M 300 250 - - - 550

50 PARKS & OPEN SPACES IMPROVEMENT PROJECTS G 38 8 - - - 46

PARKS & OPEN SPACES IMPROVEMENT PROJECTS P 5 - - - - 5

PARKS & OPEN SPACES IMPROVEMENT PROJECTS R 5 - - - - 5

51 PARKS IMPROVEMENTS 2011/12 M 383 30 - - - 413

52 PARKS INFRASTRUCTURE IMPROVEMENTS 12/13 M 289 197 177 - - 663

53 PARKS INFRASTRUCTURE IMPROVEMENTS 13/14 M - 161 162 250 - 573

54 SWIMMING IMPROVEMENT GRANT G - 71 - - - 71

55 GURNELL ROOF REPLACEMENT M 13 - - - - 13

56 MEMBERSHIP MANAGEMENT SYSTEM FOR LEISURE CENTRES M 160 50 - - - 210

57 NORTH ACTON PLAYING FIELD PAVILION REFURBISHMENT AND EXTE M - 450 50 - - 500

115




2013/14' 2014/15' 2015/16' 2016/17' 2017/18' 2017/18

£'000 £'000 £'000 £'000 £'000 £'000

Funding Source

58 NORTH ACTON PAVILION H&S WORKS M 74 - - - - 74

59 SCOTCH COMMON SPORTS FACILITY G 406 94 - - - 500

60 SCOTCH COMMON SPORTS FACILITY M 49 - - - - 49

61 PARKS AND OPEN SPACES MATCH FUND M 50 75 238 30 - 393

PARKS AND OPEN SPACES MATCH FUND G - 200 - - - 200

62 BRENT LODGE PARK ANIMAL CENTRE R - 100 - - - 100

63 GREENFORD CEMETERY EXTENSON M - 300 300 - - 600

LEISURE 4,271 3,725 1,152 380 - 9,528


FUNDED BY:


Specific funding (split as follows) 8,287 4,063 125 - - 12,475

-Grant 5,816 708 62 - - 6,586

-Revenue Contribution 1,194 3,020 - - - 4,214



-Partnership 46 - - - - 46

-S106 1,231 335 63 - - 1,629

17,887 17,509 6,825 4,775 4,245 51,241

116


CUSTOMER SERVICESTotal


2013/14' 2014/15' 2015/16' 2016/17' 2017/18' 2017/18

£'000 £'000 £'000 £'000 £'000 £'000

1 AUTOMATED TELEPHONY FOR ROUTINE CALLS M 3 - - - - 3

2 SELF SERVICE PCs IN CS CENTRE M 27 15 - - - 42

3 E FORMS EXTENSION 2011/12 M 36 - - - - 36

4 E FORMS EXTENSION 2012/13 M 45 - - - - 45

5 AUTO VOICE RECOGNITION SOFTWARE M 60 - - - - 60

7 EXPANSION OF AUTOMATED TELEPHONY SERVICES M 55 5 - - - 60

8 CALL CENTRE TELEPHONY IMPROVEMENTS M 130 - - - - 130

9 COUNCILWIDE CHANNEL SHIFT IMPROVEMENT M 20 130 - - - 150

CUSTOMER SERVICES OPERATIONS 376 150 - - - 526

10 RELOCATION OF SOUTHALL LIBRARY TO DOMINION CENTRE M 2,336 515 - - - 2,851

11 SOUTHALL LIBRARY SELF SERVICE M 50 - - - - 50

12 REFURBISHMENT OF HANWELL AND PERIVALE LIBRARIES M 892 23 - - - 915

13 REFURBISHMENT OF GREENFORD AND PITSHANGER LIBRARIES M 236 168 - - - 404

14 PITZHANGER MANOR DEVELOPMENT M 140 860 1,000 133 - 2,133

15 LIBRARY STOCK IMPROVEMENT M 79 - - - - 79

16 JUBILEE GARDENS 2010 IT & FURNITURE M 15 - - - - 15

ARTS, HERITAGE & LIBRARIES 3,748 1,566 1,000 133 - 6,447


Funding Source

117


CUSTOMER SERVICESTotal


2013/14' 2014/15' 2015/16' 2016/17' 2017/18' 2017/18

£'000 £'000 £'000 £'000 £'000 £'000

Funding Source

FUNDED BY:

Mainstream funding (M & SCER & CR) 4,124 1,716 1,000 133 - 6,973

Specific funding (split as follows) - - - - - -

-Grant - - - - - -





-S106 - - - - - -

4,124 1,716 1,000 133 - 6,973

118


CORPORATE RESOURCESTotal


2013/14' 2014/15' 2015/16' 2016/17' 2017/18' 2017/18

£'000 £'000 £'000 £'000 £'000 £'000

1 RENEWAL OF ICT EQUIPMENTS M 26 - - - - 26

3 ASBESTOS MANAGEMENT PHASE 2 2011/12 M 24 - - - - 24

4 RENEWAL OF ICT EQUIPMENT 2010 M 102 - - - - 102

6 ICT STRATEGY IMPLEMENTATION & DELIVERY M 651 - - - - 651

7 INCREASE IN WORKSTATION CAPACITY M 119 - - - - 119

8 RE:FIT ALLOCATION FOR ENERGY CONSERVATION MEASURES R 566 213 - - - 779

10 PERCEVAL HSE ENTRANCE DOORS M 37 - - - - 37

11 ICT INFRASTRUCTURE RENEWAL PROGRAMME M 149 463 300 - - 912

12 ASSET IMPROVEMENTS - CONDITION WORKS M 911 1,500 - - - 2,411

13 QUEENS HALL REFURBIHMENT M - 250 - - - 250

14 PERCEVAL HOUSE - ASSET IMPROVEMENTS M 395 750 235 220 - 1,600

BUSINESS SERVICES 2,980 3,176 535 220 - 6,911

15 MINOR CAPITAL PROJECTS M 200 264 - - - 464

MINOR CAPITAL PROJECTS 200 264 - - - 46416 WLWA CAPITAL LOAN M 4,428 6,236 3,467 869 - 15,000

CORPORATE CAPITAL ITEMS 4,428 6,236 3,467 869 - 15,000

CORPORATE RESOURCES - 7,608 9,676 4,002 1,089 - 22,375

Funding Source

119


CORPORATE RESOURCESTotal


2013/14' 2014/15' 2015/16' 2016/17' 2017/18' 2017/18

£'000 £'000 £'000 £'000 £'000 £'000

Funding Source

FUNDED BY:

Mainstream funding (M & SCER & CR) 7,042 9,463 4,002 1,089 - 21,596


-Grant - - - - - -





-S106 - - - - - -

7,608 9,676 4,002 1,089 - 22,375

120


BUILT ENVIRONMENTTotal


2013/14' 2014/15' 2015/16' 2016/17' 2017/18' 2017/18

£'000 £'000 £'000 £'000 £'000 £'000

1 DISABLED FACILITIES GRANTS (IMPROVEMENT GRANTS) M 1,328 1,350 1,350 1,500 1,500 7,028

DISABLED FACILITIES GRANTS (IMPROVEMENT GRANTS) G 1,200 1,200 1,200 1,200 1,200 6,000

2 OTHER GRANTS (IMPROVEMENT GRANTS) M 403 350 289 300 300 1,642

3 TFL BIKING BOROUGHS S 14 - - - - 14

4 NEW PLANNING BACK OFFICE ICT SYSTEM G - 42 - - - 42

5 GREENFORD STATION LIFT R 100 - - - - 100

6 TRANSPORT S106 - ACTON AGREEMENT S 350 387 - - - 737

7 HANWELL STATION SECONDARY ENTRANCE G - 110 - - - 110

HANWELL STATION SECONDARY ENTRANCE P - 50 - - - 50

HANWELL STATION SECONDARY ENTRANCE R - 50 - - - 50



FUNDED BY:



-Grant 1,200 1,352 1,200 1,200 1,200 6,152




-Partnership - 50 - - - 50

-S106 364 387 - - - 751

3,395 3,539 2,839 3,000 3,000 15,773

Funding Source

121


HOUSING (GENERAL FUND)Total


2013/14' 2014/15' 2015/16' 2016/17' 2017/18' 2017/18

£'000 £'000 £'000 £'000 £'000 £'000

1 IMPROVING TEMPORARY ACCOMMODATION PROVISION M 1,000 20,000 - - - 21,000

OTHER NON-HRA SCHEMES 1,000 20,000 - - - 21,000


FUNDED BY:

Mainstream funding (M & SCER & CR) 1,000 20,000 - - - 21,000

Specific funding (split as follows) - - - - - -

-Grant - - - - - -





-S106 - - - - - -

1,000 20,000 - - - 21,000

Funding Source

122


HRATotal


2013/14' 2014/15' 2015/16' 2016/17' 2017/18' 2017/18

£'000 £'000 £'000 £'000 £'000 £'000

1 RETENTION & FINAL ACCOUNTS C - 150 100 - - 250

2 KITCHENS , BATHROOMS C 1,340 3,945 3,000 4,600 - 12,885

3 MECHANICAL AND ELECTRICAL WORKS C 3,645 670 4,000 - - 8,315

MECHANICAL AND ELECTRICAL WORKS M - 4,004 - - - 4,004

4 EXTERNAL REFURBISHMENTS C 3,800 3,280 3,000 - - 10,080

5 CAPITALISED VOIDS C 1,608 825 - - - 2,433

CAPITALISED VOIDS M 1,542 525 2,500 - - 4,567

6 HOUSING STOCK IMPROVEMENTS C - 5,450 1,850 14,450 19,450 41,200

7 LIFT REPLACEMENT C 865 735 1,000 - - 2,600

8 HEALTH & SAFETY & DDA C 615 1,385 - - - 2,000

HEALTH & SAFETY & DDA M 1,000 - 1,400 - - 2,400

9 DESIGN FEES FUTURE YEARS C 220 280 200 - - 700

10 HIGH INTERVENTION ESTATES - MEANWHILE WORKS C 150 3,188 - - - 3,338

HIGH INTERVENTION ESTATES - MEANWHILE WORKS M - - 2,100 - - 2,100

11 ESTATE REMODELLING AND MODERNISATION C 932 2,140 - - - 3,072

ESTATE REMODELLING AND MODERNISATION M - - 3,000 - - 3,000

12 HOMEBUYERS GRANT C 60 - - - - 60

13 ADAPTATIONS FOR THE DISABLED M 1,124 1,100 - 1,056 - 3,280

ADAPTATIONS FOR THE DISABLED C - - 1,100 44 1,100 2,244

Funding Source

123


HRATotal


2013/14' 2014/15' 2015/16' 2016/17' 2017/18' 2017/18

£'000 £'000 £'000 £'000 £'000 £'000

Funding Source

14 HOUSING MANAGEMENT SYSTEMS C 55 59 - - - 114

15 GREENMAN LANE EST REGENERATION M 3,163 2,752 335 2,783 - 9,033

16 SUNNINGDALE GOLF LINKS EST PH 4 C 131 - - - - 131

17 COUNCIL NEW BUILD ROUND1 C 188 100 - - - 288

18 COUNCIL NEW BUILD ROUND2 C 2 64 - - - 66

19 STREET PROPERTIES ROUND 2 C 41 1,455 - - - 1,496

20 RECTORY PARK REGENERATION M - 1,378 2,365 917 - 4,660

RECTORY PARK REGENERATION C 922 1,600 - - 2,000 4,522

21 SOUTH ACTON REGENERATION C 3,913 1,173 - 5,000 6,400 16,486

SOUTH ACTON REGENERATION M 300 - - - - 300

22 COPLEY CLOSE REGENERATION M - 6,708 7,014 14,069 4,218 32,009

COPLEY CLOSE REGENERATION C 9,651 8,140 10,840 - - 28,631

23 COUNCIL NEW BUILD ROUND3 M 708 17,600 - - - 18,308

COUNCIL NEW BUILD ROUND3 C 7,499 9,672 250 - - 17,421

COUNCIL NEW BUILD ROUND3 G 2,793 924 - - - 3,717

24 DEAN GARDENS C - 3,398 1,706 - 998 6,102

DEAN GARDENS M 1,313 687 - - - 2,000

25 HAVELOCK ESTATE C - 2,242 - 5,200 - 7,442

HAVELOCK ESTATE M 2,946 4,154 4,700 - - 11,800

124


HRATotal


2013/14' 2014/15' 2015/16' 2016/17' 2017/18' 2017/18

£'000 £'000 £'000 £'000 £'000 £'000

Funding Source

26 HOUSING ENERGY PERFORMANCE C 551 - - - - 551

27 REPAIRS & MAINTENANCE IT MANAGEMENT SYSTEM C 118 - - - - 118

HRA 51,195 89,783 50,460 48,119 34,166 273,723

HRA 51,195 89,783 50,460 48,119 34,166 273,723

FUNDED BY:

Mainstream funding - M 12,096 38,908 23,414 18,825 4,218 97,461


-Grant - G 2,793 924 - - - 3,717

-Revenue Contribution RCCO - R - - - - - -

-Other HRA Funding - C 36,306 49,951 27,046 29,294 29,948 172,545

-Partnership - P - - - - - -

-S106 - S - - - - - -

51,195 89,783 50,460 48,119 34,166 273,723

125


REGENERATIONTotal


2013/14' 2014/15' 2015/16' 2016/17' 2017/18' 2017/18

£'000 £'000 £'000 £'000 £'000 £'000

1 TOWN CENTRE REGENERATION M - 55 - - - 55

2 TOWN CENTRE REGENERATION - EALING CENTRAL S106 S 59 - - - - 59

3 TOWN CENTRE REGENERATION - PARK ROYAL S106 S 150 1,035 - - - 1,185

4 TOWN CENTRE REGENERATION - SOUTHALL MAINSTREAM M 181 129 - - - 310

5 TOWN CENTRE REGENERATION - ACTON MAINSTREAM M 243 42 - - - 285

6 TOWN CENTRE REGENERATION - WEST EALING MAINSTREAM M 185 8 - - - 193

7 TOWN CENTRE REGENERATION - HANWELL MAINSTREAM M 30 83 - - - 113

8 TOWN CENTRE REGENERATION - NORTHOLT MAINSTREAM M 39 - - - - 39

9 TOWN CENTRE REGENERATION - A40 CORRIDOR MAINSTREAM M 80 - - - - 80

10 SOUTHALL MANOR HOUSE M 39 - - - - 39

11 ACTON TOWN HALL - COMMUNITY & LEISURE FACILITIES M 12,402 - - - - 12,402

ACTON TOWN HALL - COMMUNITY & LEISURE FACILITIES G 2,000 - - - - 2,000

12 SOUTHALL TOWN CENTRE REGENERATION & CAR PARK M 2,747 100 - - - 2,847

13 SOUTHALL MANOR HOUSE ADAPTATIONS M 244 - - - - 244

14 SERVICE CENTRES - ACTON, GREENFORD, SOUTHALL M 1,626 3,346 - - - 4,972

15 SHAPING SOUTHALL PROGRAMME (MRF) G 2,166 1,250 - - - 3,416

16 EALING BROADWAY PUBLIC REALM IMPROVEMENT M 120 - - - - 120

EALING BROADWAY PUBLIC REALM IMPROVEMENT S 700 - - - - 700

Funding Source

126


REGENERATIONTotal


2013/14' 2014/15' 2015/16' 2016/17' 2017/18' 2017/18

£'000 £'000 £'000 £'000 £'000 £'000

Funding Source

17 BOROUGHWIDE SHOPFRONT IMPROVEMENTS M - 133 - - - 133

BOROUGHWIDE SHOPFRONT IMPROVEMENTS R - 130 - - - 130

18 IMPROVING SOUTH RD STREETSCAPE M 20 605 - - - 625

19 DELIVERY OF SOUTHALL BIG PLAN M - 300 50 800 750 1,900

DELIVERY OF SOUTHALL BIG PLAN P - 80 5,700 220 - 6,000

DELIVERY OF SOUTHALL BIG PLAN G - 2,020 - - - 2,020

REGENERATION 23,031 9,316 5,750 1,020 750 39,867

REGENERATION 23,031 9,316 5,750 1,020 750 39,867

FUNDED BY:

Mainstream funding (M & SCER & CR) 17,956 4,801 50 800 750 24,357

Specific funding (split as follows) 5,075 4,515 5,700 220 - 15,510

-Grant 4,166 3,270 - - - 7,436

-Revenue Contribution - 130 - - - 130



-Partnership - 80 5,700 220 - 6,000

-S106 909 1,035 - - - 1,944

23,031 9,316 5,750 1,020 750 39,867

127


SAFER COMMUNITIESTotal

Budget Item SCHEMES Budget Budget Budget Budget Budget 2013/14

2013/14' 2014/15' 2015/16' 2016/17' 2017/18' 2017/18

£'000 £'000 £'000 £'000 £'000 £'000-

1 SAFER COMMUNITY IT SYSTEMS M 5 - - - - 5

3 ALLEY GATING & DOMESTIC VIOLENCE SANCTUARY M 242 582 310 310 - 1,444

4 SAFER COMMUNITIES-CCTV M 2 - - - - 2

5 CAMERA ENHANCEMENT PROGRAMME M 198 116 - - - 314

6 EMPTY HOMES-CONV FLATS G 280 188 - - 468

7 EMPTY HOMES-CONV FLATS M 519 295 300 - - 1,114

8 EMPTY PROPERTIES CPO M - 500 - - - 500



FUNDED BY:

Mainstream funding (M & SCER & CR) 966 1,493 610 310 - 3,379


-Grant 280 188 - - - 468





-S106 - - - - - -

1,246 1,681 610 310 - 3,847

Funding Source

128


APPENDIX 12: FEES & CHARGES SCHEDULECHARGING POLICY

Cost Recovery

Statutory

Subsidised

Service Unit Service provided Charging Policy Existing Charge Charge from April 2014 Increase Increase Notes

£ £ £ %

CHILDREN & ADULTS DIRECTORATE

Planning & Resources Schools Bursarial Service Cost Recovery

Level 1 £3,100

Level 2 £5,775

Level 3 £7,600

Level 4 £12,000/Bespoke

package

No change - -

Schools EffectivenessEaling Education Centre - Venue Hire

(incl. Servicing)Cost Recovery

Meeting Rooms: Capacity 6-12

people

£22.50 to £41.50

IT Rooms: Capacity 6-12 people

£22.50 to £38.50 (incl. all

multimedia equipment)

No change - -

Detailed room hire terms and rates

are available at:

http://www.egfl.org.uk/categories/tr

aining/eec.html

Schools Effectiveness

Ealing Education Centre - Continuing

Professional Development

Services/Training

Cost Recovery

Universal Pay As You Go Rates

Full day - £170

Half Day - £110

Twilight (up to 2 hrs) - £90

Maintained school PAYG Rates

Full day - £100

Half Day - £60


Universal Pay As You Go Rates

Full day - £200

Half Day - £140


Maintained school PAYG Rates

Full day - £160

Half Day - £110


Schools in SLA

£85 per staff member

£150 Academies/Other estabs

Various Various Schools in SLA

Schools Effectiveness ICT SLA Cost Recovery

Standard SLA @ £1,750 = 4

days curriculum ICT Support. 1

of these days = email & phone

support.

Additional Days £500 per day

CPD is now a separate SLA


days curriculum ICT Support.

Additional days £500 per day

Academies


days curriculum ICT Support.


Various Various fixed fee per school plus price per

pupil

The Council sets prices at a level to recover the full cost of providing the service.

Charges are set in line with Statutory requirements

The Council contributes towards the cost of providing the service

POLICY OBJECTIVE

SCHOOLS

129

CHARGING POLICY

Cost Recovery

Statutory

Subsidised


£ £ £ %




POLICY OBJECTIVE

Schools Effectiveness Extended Schools SLA Cost Recovery

£1,600 ES SLA - community

schools. £1,920 ES SLA -

academies.

Bespoke Children's Centre

package: 1 day p/w £11,019,

2 days p/w £22, 038

From 1st Sept 2013 - 31st Aug

2014

Bespoke Consultancy Support

(Maintained Primary/Special/C

Centres)

£1,800 (4 days) Additional Days

£450 per day


(Maintained High Schs)

£2,160 (4 days) Additional Days

£540 per day


to Maintained C Centres (option

2)

1 day per week (all year)

£11,019 pa

2 days per week (all year)

£22,038 pa

Various Various

Schools Effectiveness Workforce & Governance SLA Cost Recovery

Both over 4 terms 1st April 2012

- 31st July 2013,

Sch Business Manager

membership - £1,700 or £1,500

for 2 yr sign up

Workforce development support

£1,100 for up to 2 days (daily

rate for PAYG £650)

Governance network support

High schools only £350 for 8

meetings or £50 PAYG

From 1st Sept 2013 - 31st Aug

2014,

Sch Business Manager

membership - £1,850 or £1,650

for 2 yr sign up

Workforce development support

£1,200 for up to 2 days (daily

rate for PAYG £700)

Governance SLA now part of

overall Sch Effectiveness buy

back

Various Various

Schools Effectiveness Ealing Music Service (EMS) Cost Recovery

Tuition chgs per hour

Sept 2012: £30.50

Sept 2013: £32.00

Sept 2014: £33.00

Instrument Loans

Sept 2012: £12/term per

instrument


instrument

Tuition chgs per hour

Sept 2012: £30.50

Sept 2013: £32.00

Sept 2014: £33.00

Instrument Loans


instrument


instrument

- -

130

Appendix 12: Fees & Charges schedule

CHARGING POLICY

Cost Recovery

Statutory

Subsidised


£ £ £ %




POLICY OBJECTIVE


School Effectiveness Service - School

Improvement Support Services for

Primary & Special Schools

Cost Recovery

In Feb 2011, the Schools Forum

agreed to support some School

Effectiveness via a contribution

from the Dedicated Schools

Grant until Aug 2013. These

services are either free from

additional cost or heavily

Subsidised.

4 day package £1,750


Ealing Improving Schools Prog.

membership £500 plus cost of

additional bespoke day rate of

£500

Packages

6 days £3,600

9 days £5,400

12 days £7,000

15 days £8,700


Academies

Packages

6 days £3,900

9 days £5,850

12 days £7,500

15 days £9,350


Various Various


School Effectiveness Service - School

Improvement Support Services for High

Schools

Cost Recovery



Ealing Improving Schools Prog.

membership £500 plus

cost of additional bespoke day

rate of £500

Academies

£13,000 inclusive package

Improving Schools Prog.

£5,000/£2,500

Bespoke support £600 per day

(packages available)

Link Officer £2,400

Ealing Collaborative Sch Imp

Services £12,500

Bespoke day packages

1 day £650

3 days £1,800

Academies

Link Officer £2,880

Ealing Collaborative Sch Imp

Services £15,000

Bespoke day packages

1 day £780

3 days £2,160

Various Various

In Feb 2011, Schools Forum

agreed to support some School

Effectiveness via a contribution

from the Dedicated Schools Grant

until Aug 2013. These services are

either free from additional cost or

heavily Subsidised.

131


CHARGING POLICY

Cost Recovery

Statutory

Subsidised


£ £ £ %




POLICY OBJECTIVE

Ealing Service for Children

with Additional Needs

(ESCAN)

Education PsychologySchools Levy

Subsidised £1,270 - £3,380 per year £1,333 - £3,550 £63-£170 5.00%

Ealing Service for Children

with Additional Needs

(ESCAN)

Education PsychologySchools Daily Buy-Back

Subsidised £550 per day £582 per day £32 5.82%

Planning, Commissioning &

Partnerships

Play ServiceHoliday clubs (parental charges)

Subsidised£14 per day block booking, £16

per day one off days

£14 per day block booking, £16

per day one off days - -


Partnerships

Play ServiceAfter schools clubs (parental charges)

Subsidised £8 per day £8 per day - -


Partnerships

Play ServiceRental charges for premises

SubsidisedVarious at 70% subsidy of

market rental - -

Safeguarding & Support

Adoption ServiceFees chargeable to other Local

Authorities and other agencies for

placing young people with Ealing's

Adopters. The costs are the same for

Ealing if they place young people in

other Local Authorities. These costs are

set by British Association of Adoption &

Fostering (BAAF)

Cost Recovery 27,000.00 27,000.00 - -

Adults Services Residential & Nursing Subsidised See note See note n/a n/a

There is no unit price for charging

for residential and nursing

placements as this is dictated by

CRAG (Charging for Residential

Accommodation Guidelines) - a

national Statutory charging

schedule where charges are

determined by a customer's ability

to pay not the quantity of service

received.

Adults Services Home Care/Community Based Services Subsidised See note See note n/a n/a

Under the Fairer Contributions

policy a customers contribution is

based on the ability to pay as

opposed to a charge for each part

of the service received.

Adults Services Direct Payments/Individual Budgets Subsidised See note See note n/a n/a

Under the Fairer Contributions

policy a customers contribution is

based on the ability to pay as

opposed to a charge for each part

of the service received.

ADULTS

CHILDRENS

132


CHARGING POLICY

Cost Recovery

Statutory

Subsidised


£ £ £ %




POLICY OBJECTIVE

REGENERATION & HOUSING DIRECTORATE

Regulatory Services Pest Control Subsidised 55 -125 TBC - -

Regulatory Services PPC (EPA) Registrations Statutory 68 -1,579 TBC - - TBC

Regulatory Services Registration of Houses in Multiple

OccupationCost Recovery 970 plus 30 per room TBC - -

Regulatory Services

Alcohol Licensing (These fees were

Statutory however a change in

legislation means that LA's will be

empowered to set their own fees on a

Cost Recovery basis. Awaiting Home

Office guidance on implementation , but

the new fees should be set for 2014/15.)

Cost Recovery 70 -1,050 TBC - - TBC

Regulatory Services Gambling Act Statutory 100 - 3,500 TBC - - TBC

Regulatory ServicesMiscellaneous licences & registrations

e.g. special treatments, animal boarding

, pet shops, poisons, sex shops.

Cost Recovery 60 - 2,766 TBC - - TBC

RAS Agent fees for Adaptation work Cost Recovery 0.17 0.17 - -

Building ControlFees for building control surveying

inspections and plan-checking

(domestic and commercial)

Cost Recovery £67.60 phTBC

- -

Town Planning Planning Application Fees (various) Statutory Nationally Set (various) N/A - -

Town Planning Pre-Application Advice Cost Recovery

£1,500 + VAT Minor

£2,000 + VAT Major

£4,000 + VAT Strategic

TBC - -

Local Land Charges Official Search of the Local Land

Charges registerCost Recovery 115.00 115.00 - -

SAFER COMMUNITIES

BUILT ENVIRONMENT

133


CHARGING POLICY

Cost Recovery

Statutory

Subsidised


£ £ £ %




POLICY OBJECTIVE

ENVIRONMENT & CUSTOMER SERVICES DIRECTORATE

SPORTS PITCHES

Sports PitchesSports Pitches A Football - single (price

is inclusive of VAT)Subsidised 78.60 81.00 2.40 3.1%

Sports PitchesSports Pitches A Football - seasonal

(VAT exempt)Subsidised 52.40 54.00 1.60 3.1%

Sports PitchesSports Pitches B Football - single (price


Sports PitchesSports Pitches B Football - seasonal


Sports PitchesSports Pitches A Cricket - single (price


Sports PitchesSports Pitches A Cricket - seasonal


Sports PitchesSports Pitches B Cricket - single (price


Sports PitchesSports Pitches B Cricket - seasonal


ALLOTMENTS 15.00

Allotments Allotments Subsidised 15.00 15.00 - -

FESTIVAL AND EVENTS

Festival & Events Comedy Subsidised 18.50 19.00 0.50 2.7%

Festival & Events Jazz Wednesday & Thursday Subsidised 4.00 4.00 - -

Festival & Events Jazz/ Blues/Global Weekends & Friday Subsidised 5.00 5.00 - -

Festival & Events Jazz/ Blues/Global 7 day Pass Subsidised 16.00 16.00 - -

Festival & Events Mela Subsidised 0.00 0.00 - -

Festival & Events Greenford Carnival Subsidised 2.00 2.00 - -

Festival & Events Acton Carnival Subsidised 2.00 2.00 - -

Festival & Events Family carnival tickets Subsidised 5.00 5.00 - -

Festival & Events Small scale Street Event Subsidised 250.00 255.00 5.00 -

Festival & Events Medium scale Street Event Subsidised 500.00 510.00 10.00 2.0%

Festival & Events Large scale and special Street Event Subsidised Negotiation Negotiation N/A N/A

Festival & Events Small scale Park Event Subsidised 500.00 510.00 10.00 2.0%

Festival & Events Medium scale Park Event Subsidised 1,000.00 1,020.00 20.00 2.0%

Festival & EventsLarge scale Park Event (price is per

day)Subsidised 2,000.00 2,040.00 40.00 2.0%

Festival & Events Special Park Event Subsidised Negotiation Negotiation N/A N/A

Festival & Events Non-operating days Park Event Subsidised 250.00 250.00 - -

ENVIRONMENT & LEISURE - LEISURE AND PARKS

Brings fees in line with

neighbouring boroughs and

reduces level of subsidy

134


CHARGING POLICY

Cost Recovery

Statutory

Subsidised


£ £ £ %




POLICY OBJECTIVE

Greenford Standard Prices (excl. leisure pass discount)Fitness Training

Greenford Adult Gym Session Subsidised 4.60 4.70 0.10 2.2%

Greenford Adult Induction Subsidised 16.50 17.00 0.50 3.0%

Greenford Junior Gym session Subsidised 2.30 2.35 0.05 2.2%

Greenford Junior Induction Subsidised 8.80 9.05 0.25 2.8%

Greenford Adult gym monthly card Subsidised 23.20 23.90 0.70 3.0%

Greenford Junior gym monthly card Subsidised 18.10 18.65 0.55 3.0%

Greenford Adult Gym and fitness Subsidised 33.50 34.50 1.00 3.0%

Greenford Adult 10 4 8 classes Subsidised 36.80 37.60 0.80 2.2%

Centre Membership

Greenford Booking Card Subsidised 13.40 13.80 0.40 3.0%

Fitness classes

Greenford Adult Fitness Classes Subsidised 5.20 5.35 0.15 2.9%

Greenford Adult fitness monthly card Subsidised 23.20 23.90 0.70 3.0%


Birthday Parties

Greenford Basic Subsidised 157.00 161.50 4.50 2.9%

Greenford Football Subsidised 157.00 161.50 4.50 2.9%

Greenford Athletics (new) Subsidised 165.00 170.00 5.00 3.0%

Greenford Trampoline Subsidised 184.00 189.50 5.50 3.0%

Room Hire :

Greenford Activity Room, Club room, studio Subsidised 27.30 28.10 0.80 2.9%

Greenford Sports hall (4 cts) Subsidised 50.50 52.00 1.50 3.0%

Greenford Sports hall (2cts) Subsidised 27.30 28.10 0.80 2.9%

Greenford Court Hire Subsidised 10.60 10.90 0.30 2.8%

Greenford Table tennis Subsidised 7.30 7.50 0.20 2.7%

Greenford Muga Subsidised 23.70 24.40 0.70 3.0%

Greenford Muga floodlights Subsidised 24.30 25.00 0.70 2.9%

Greenford Tennis court Subsidised 7.30 7.50 0.20 2.7%

Greenford Tennis court floodlights Subsidised 7.80 8.00 0.20 2.6%

135


CHARGING POLICY

Cost Recovery

Statutory

Subsidised


£ £ £ %




POLICY OBJECTIVE

Active Kids/ Teens & Schools Out Programmes:

Greenford Active Kids Subsidised 4.90 5.00 0.10 2.0%

Greenford Active Teens Subsidised 4.90 5.00 0.10 2.0%

Greenford 10 Sessions Subsidised 39.00 40.15 1.15 2.9%

Greenford Sat Basketball Subsidised 7.50 7.70 0.20 2.7%

Greenford 8-14 yr Hols Prog per session Subsidised 3.30 3.40 0.10 3.0%

Greenford 8-14 yr Hols Prog per day Subsidised 10.30 10.60 0.30 2.9%

Greenford 8-14yrs/ week Subsidised 12.50 12.80 0.30 2.4%

Greenford 6-7 Holiday Programme per session Subsidised 3.30 3.40 0.10 3.0%

Greenford 6-7 Holidays/ per day Subsidised 10.30 10.60 0.30 2.9%

Greenford Discounted Prices (with leisure pass) Fitness Training:

Greenford Adult Gym Session Subsidised 2.40 2.45 0.05 2.1%

Greenford Adult Induction Subsidised 8.80 9.05 0.25 2.8%

Greenford Junior Gym session Subsidised 1.70 1.75 0.05 2.9%

Greenford Junior Induction Subsidised 7.80 8.00 0.20 2.6%

Greenford Adult gym monthly card Subsidised 18.10 18.65 0.55 3.0%

Greenford Junior gym monthly card Subsidised 15.50 15.90 0.40 2.6%

Greenford Adult Gym and fitness Subsidised 22.20 22.85 0.65 2.9%


Fitness classes

Greenford Adult Fitness Classes Subsidised 2.60 2.65 0.05 1.9%

Greenford Adult fitness monthly card Subsidised 18.10 18.65 0.55 3.0%


Greenford Active Kids Subsidised 3.90 4.00 0.10 2.6%

Greenford Active Teens Subsidised 3.90 4.00 0.10 2.6%

Greenford 10 Sessions Subsidised 33.00 34.00 1.00 3.0%

Greenford Saturday Basketball (New) Subsidised 7.50 7.70 0.20 2.7%

Greenford 8-14 yr Hols Prog per session Subsidised 2.80 2.85 0.05 1.8%

Greenford 8-14 yr Hols Prog per day Subsidised 8.80 9.00 0.20 2.3%

Greenford 8-14yrs/ week Subsidised 10.00 10.30 0.30 3.0%

Greenford 6-7 Hols Prog per session Subsidised 2.80 2.85 0.05 1.8%

Greenford 6-7 Hols/ per day Subsidised 8.80 9.05 0.25 2.8%

136


CHARGING POLICY

Cost Recovery

Statutory

Subsidised


£ £ £ %




POLICY OBJECTIVE

Centre Membership

Greenford Booking Card Subsidised 6.70 6.90 0.20 3.0%

Reynolds Standard Prices (excl. leisure pass discount)Fitness Training

Reynolds GYM Subsidised 4.70 4.80 0.10 2.1%

Reynolds Induction Subsidised 16.50 17.00 0.50 3.0%

Reynolds Junior Subsidised 2.40 2.45 0.05 2.1%

Reynolds Junior Induction Subsidised 8.80 9.05 0.25 2.8%

Fitness Classes

Reynolds Aerobics Subsidised 5.20 5.35 0.15 2.9%

Reynolds Pilates Subsidised 5.80 5.95 0.15 2.6%

Room Hire :

Reynolds Activity Room, Club room, studio Subsidised 27.30 28.10 0.80 2.9%

Reynolds Sports hall (4 courts) Subsidised 50.50 52.00 1.50 3.0%

Reynolds Sports hall (2 courts) Subsidised 27.30 28.10 0.80 2.9%

Reynolds Ct Hire Subsidised 10.60 10.90 0.30 2.8%

Outdoor Courts

Reynolds Floodlit Area/hr Subsidised 22.70 23.35 0.65 2.9%

Reynolds Floodlit Area-lights on Subsidised 28.50 29.35 0.85 3.0%

Block Bookings

Reynolds Netball court Subsidised 19.90 20.50 0.60 3.0%

Reynolds Netball court-lights on Subsidised 25.70 26.45 0.75 2.9%

Reynolds Tennis court Subsidised 8.10 8.30 0.20 2.5%

Reynolds Tennis court-lights on Subsidised 9.10 9.35 0.25 2.7%

Birthday parties

Reynolds Up to 30 children Subsidised 165.00 169.95 4.95 3.0%

Reynolds 30 - 40 children Subsidised 185.00 190.55 5.55 3.0%

Reynolds Up to 30 children + Trampolines Subsidised 190.00 195.70 5.70 3.0%

Reynolds Table Tennis Subsidised 7.30 7.50 0.20 2.7%

Reynolds Monthly Gym Membership Subsidised 17.50 18.00 0.50 2.9%

ReynoldsMonthly Full fitness membership

(Gym and classes)Subsidised 24.00 24.70 0.70 2.9%

137


CHARGING POLICY

Cost Recovery

Statutory

Subsidised


£ £ £ %




POLICY OBJECTIVE

Reynolds Discounted Prices (with leisure pass) Fitness Training

Reynolds GYM Subsidised 2.30 2.35 0.05 2.2%

Reynolds Induction Subsidised 8.50 8.75 0.25 2.9%

Reynolds Junior Subsidised 1.80 1.85 0.05 2.8%

Reynolds Junior Induction Subsidised 5.20 5.35 0.15 2.9%

Reynolds Aerobics Subsidised 2.60 2.65 0.05 1.9%

Reynolds Pilates Subsidised 2.90 2.95 0.05 1.7%

ACTIVE EALING

Staying Active Hanwell Methodist Church Hall Subsidised 3.30 3.40 0.10 3.0%

Staying Active Southall Sports Centre Subsidised 3.30 3.40 0.10 3.0%

Staying Active Christ Redeemer Church Hall Subsidised 3.30 3.40 0.10 3.0%

Staying Active Pitzhanger Park Subsidised 3.30 3.40 0.10 3.0%

Staying Active Islip Manor Park Subsidised 3.30 3.40 0.10 3.0%

Staying Active Greenford Hall Subsidised 3.80 3.90 0.10 2.6%

Staying Active Acton - Ruskin Hall Subsidised 3.50 3.60 0.10 2.9%

Staying Active Drayton Manor School Subsidised 4.70 4.85 0.15 3.2%

Staying Active Perivale Community Centre Subsidised 3.80 3.90 0.10 2.6%

Staying Active Michael Simons Hall - Ealing Liberal

SynagogueSubsidised 3.80 3.90 0.10 2.6%

Staying Active Eden Fitness Centre Subsidised 5.50 5.70 0.20 3.6%

Discounted Prices (with leisure pass)

Staying Active Hanwell Methodist Church Hall Subsidised 2.00 2.10 0.10 5.0%

Staying Active Southall Sports Centre Subsidised 2.00 2.10 0.10 5.0%

Staying Active Christ Redeemer Church Hall Subsidised 2.00 2.10 0.10 5.0%

Staying Active Pitzhanger Park Subsidised 2.00 2.10 0.10 5.0%

Staying Active Islip Manor Park Subsidised 2.00 2.10 0.10 5.0%

Staying Active Greenford Hall Subsidised 2.10 2.20 0.10 4.8%

Staying Active Acton - Ruskin Hall Subsidised 1.85 1.90 0.05 2.7%

Staying Active Drayton Manor School Subsidised 3.60 3.70 0.10 2.8%

Staying Active Perivale Community Centre Subsidised 2.00 2.10 0.10 5.0%

Staying Active Michael Simons Hall - Ealing Liberal

SynagogueSubsidised 2.40 2.50 0.10 4.2%

Staying Active Eden Fitness Centre Subsidised 4.00 4.10 0.10 2.5%

138


CHARGING POLICY

Cost Recovery

Statutory

Subsidised


£ £ £ %




POLICY OBJECTIVE

Leisure Pass

Leisure pass Adult 1 year Subsidised 4.00 4.10 0.10 2.5%

Leisure pass Adult 6 months Subsidised 3.00 3.05 0.05 1.7%

Leisure pass Junior 1 year Subsidised 2.00 2.05 0.05 2.5%

Cemeteries Purchase and interment for 1 Cost Recovery 2,204.00 2,270.00 66.00 3.0%



CemeteriesCremated remains plot and 1st

intermentCost Recovery 1,059.00 1,090.00 31.00 2.9%

CemeteriesMuslim burial chamber and 1st


Cemeteries Purchase and interment (Infant) Cost Recovery 722.00 744.00 22.00 3.0%








Cemeteries Purchase and interment (Infant) Cost Recovery 774.00 798.00 24.00 3.1%








Cemeteries Purchase and interment (Infant) Cost Recovery 1,444.00 1,488.00 44.00 3.0%

Non-resident purchaser and non-resident deceased

GRAVE PURCHASE AND 1ST INTERMENT- this includes exclusive purchase of grave for an initial period of 30 years.

Resident/Non-resident purchaser and resident deceased

Resident purchaser and non-resident deceased

ENVIRONMENT & LEISURE - CEMETERIES

139


CHARGING POLICY

Cost Recovery

Statutory

Subsidised


£ £ £ %




POLICY OBJECTIVE

Cemeteries Depth for 1 Cost Recovery 788.00 812.00 24.00 3.0%



Cemeteries Depths for stillborn to 13 years Cost Recovery 52.00 54.00 2.00 3.8%

Cemeteries Cremated remains Cost Recovery 482.00 496.00 14.00 2.9%

Cemeteries Interments into brick graves or vaults Cost Recovery 1,089.00 1,122.00 33.00 3.0%

Non-resident deceased

Cemeteries Depth for 1 Cost Recovery 1,576.00 1,624.00 48.00 3.0%



Cemeteries Depths for stillborn to 13 years Cost Recovery 104.00 399.00 295.00 283.7%

Bring in line with neighbouring

boroughs and preserve burial

space in borough for borough

residents

Cemeteries Cremated remains Cost Recovery 964.00 992.00 28.00 2.9%

Cemeteries Interments into brick graves or vaults Cost Recovery 2,178.00 2,244.00 66.00 3.0%

BURIAL RELATED CHARGES

Cemeteries10 year lease for memorial placement

including permitCost Recovery 182.00 187.00 5.00 2.7%

Cemeteries Permit for all subsequent memorial work Cost Recovery 82.00 84.00 2.00 2.4%

CemeteriesRemoval and replacement of memorial

for further burialCost Recovery 134.00 138.00 4.00 3.0%

EXHUMATION CHARGES

CemeteriesExhumation of a body (price is

exclusive of VAT)Cost Recovery 5,433.00 5,595.99 162.99 3.0%

CemeteriesExhumation of ashes (price is exclusive

of VAT)Cost Recovery 1,545.00 1,591.35 46.35 3.0%

Re-opening a grave for further burials

Resident deceased

Re-opening a grave for further burials

140


CHARGING POLICY

Cost Recovery

Statutory

Subsidised


£ £ £ %




POLICY OBJECTIVE

MISCELLANEOUS CHARGES

Cemeteries Pathside burial plot Cost Recovery 0.00 729.00 729.00 N/A

Cemeteries Hire of cemetery chapel Cost Recovery 88.00 91.00 3.00 3.4%

Cemeteries Extra charge for Saturday burial Cost Recovery 433.00 446.00 13.00 3.0%

CemeteriesExtra charge for burial of ashes on

SaturdayCost Recovery 165.00 170.00 5.00 3.0%

CemeteriesSurveying grave to determine remaining

depthCost Recovery 155.00 160.00 5.00 3.2%

CemeteriesConcrete sealing of grave

(entombment)Cost Recovery 309.00 318.00 9.00 2.9%

Cemeteries Transfer of grave deed Cost Recovery 129.00 133.00 4.00 3.1%

Cemeteries Record search Cost Recovery 10.00 15.00 5.00 50.0% Reduces level of subsidy

Cemeteries Scattering ashes in (Rose garden) Cost Recovery 72.00 74.00 2.00 2.8%

Cemeteries Oversized coffin -7' x30" or larger Cost Recovery 361.00 372.00 11.00 3.0%

Cemeteries Metal Casket Cost Recovery 567.00 584.00 17.00 3.0%

CemeteriesAdministration charge for two or more

cremated remainsCost Recovery 103.00 106.00 3.00 2.9%

CemeteriesGrave planting (price is exclusive of

VAT)Cost Recovery 139.00 143.00 4.00 2.9%

HIGHWAYS

HighwaysSection 50 licence - third party works

(non utility)Cost Recovery 400.00 412.00 12.00 3.0%

HighwaysSection 184 licence - temporary

crossoverCost Recovery 400.00 412.00 12.00 3.0%

Highways Section 74 overstay income Statutory 250-5,000 250-5,000 - - Dependant on class of

carriageway, and duration

Highways Inspections - sample Statutory 50.00 50.00 - -

Highways Inspections - defect Statutory 47.50 47.50 - -

Highways Inspections - third party Statutory 68.00 68.00 - -

HighwaysFixed Penalty Notices - incorrect permit

detailsStatutory 120.00 120.00 - -

HighwaysFixed Penalty Notices - working with out

a permitStatutory 500.00 500.00 - -

Highways Network Permit Income Statutory 35-240 35-240 - -

HighwaysTemp Traffic Orders - Special Event

Orders (charity, street party)Subsidised 264.00 271.92 7.92 3.0%

Highways

Temp Traffic Orders - Special Event

Orders (other than national event,

charity or street party), Emergency

Notice, Urgent Notice, or Filming Notice

Cost Recovery 528.00 543.84 15.84 3.0%

Highways Temp Traffic Orders - Filming Order Cost Recovery 749.00 771.47 22.47 3.0%

Filming Order requires advertising,

hence the greater cost than a

Filming Notice

ENVIRONMENT & LEISURE - STREET SERVICES AND HIGHWAYS

141


CHARGING POLICY

Cost Recovery

Statutory

Subsidised


£ £ £ %




POLICY OBJECTIVE

HighwaysTemp Traffic Orders - Long Term Works

OrderCost Recovery 1,722.00 1,773.66 51.66 3.0%

HighwaysTemp Traffic Orders - Planned Works

OrderCost Recovery 1,501.00 1,546.03 45.03 3.0%

DEPOTS

Depots Mixed Trade Waste per ton Statutory 190.00 195.00 5.00 2.6%

Depots Recyclable Trade Waste per ton Statutory 95.00 97.50 2.50 2.6%

STREET SERVICES: COMMERCIAL CHARGES

Street Services Pre-paid Sacks - roll of 20 Cost Recovery 35.67 37.45 1.78 5.0%

Street Services Stickers for Cardboard - pack of 20 Cost Recovery 35.67 37.45 1.78 5.0%

Street ServicesCardboard Recycling Stickers - pack of

20Cost Recovery 14.25 14.96 0.71 5.0%

Street Services 1100 Litre Container Bin Cost Recovery 18.60 19.53 0.93 5.0%

Street Services 660 Litre Container Bin Cost Recovery 13.25 13.91 0.66 5.0%

Street Services Special Collection 1-3 mtrs Cost Recovery 43.00 43.00 - -



Street ServicesSpecial Collection over 10 mtrs (per

mtr)Cost Recovery 20.00 20.00 - -

Street Services Special Collection - Domestic 1-8 items Cost Recovery 20.00 20.00 - -

Street ServicesAdditional Collection of Commercial Bin -

1100 litreCost Recovery 22.00 23.10 1.10 5.0%

Street ServicesAdditional Collection of Commercial Bin -

660 litreCost Recovery 16.50 17.33 0.82 5.0%

Street Services Communal Bin - 1100 litre Cost Recovery 292.44 292.44 - -

Street Services Communal Bin - 660 litre Cost Recovery 275.19 275.19 - -

Street Services Communal Bin - Plaza Grande Cost Recovery 275.19 275.19 - -

Street Services Communal Bin - Plaza Flair Cost Recovery 242.99 242.99 - -

Street ServicesStreet Trading - Front of Shop - Full

DisplayCost Recovery 26.00 26.00 - -

Street ServicesStreet Trading - Front of Shop - Part

DisplayCost Recovery 12.50 12.50 - -

Street ServicesStreet. Trading Designated Site - 1-2

Days per WeekCost Recovery 40.00 40.00 - -

Street ServicesStreet Trading Designated Site - 3-4


Street ServicesStreet. Trading Designated Site - 5-7


Street Services Street. Trading Application fee Cost Recovery 42.50 42.50 - -

Street Services Mixed Trade Waste per ton Statutory 190.00 195.00 5.00 2.6%

Street Services Recyclable Trade Waste per ton Statutory 95.00 97.50 2.50 2.6%

Reflects market rates and ongoing

increase in landfill tax

Please note: these charges are in

line with West London Waste

Authority charges and not within

our direct control.

Reduced from previous year's

charge (2012/13) due to no VAT.

142


CHARGING POLICY

Cost Recovery

Statutory

Subsidised


£ £ £ %




POLICY OBJECTIVE

STREET SERVICES: FIXED PENALITY NOTICES

Street Services Depositing Litter Statutory 50.00 50.00 - -

Street Services Graffiti & Flyposting Statutory 50.00 50.00 - -

Street Services

Failure to Comply with a Street Litter

Control notice & Failure to Comply with

a Litter Clearing Notice

Statutory 60.00 60.00 - -

Street Services Nuisance Parking Statutory 60.00 60.00 - -

Street ServicesFailure to Comply with a Waste

Receptacle NoticeStatutory 60.00 60.00 - -

Street Services Abandoning a Vehicle Statutory 120.00 120.00 - -

Street ServicesFailure to Furnish Documentation

(waste carrier`s licence)Statutory 180.00 180.00 - -

Street ServicesFailure to Produce Authority (waste

transfer notes)Statutory 180.00 180.00 - -

Street ServicesDisplaying an Advertising in

Contravention of RegulationsStatutory 60.00 60.00 - -

Street ServicesContravention of Condition of Street

Trading Licence or Temporary LicenceStatutory 60.00 60.00 - -

Street Services

Making False Statement in Connection

with Application for a Street Trading

Licence or a Temporary Licence

Statutory 75.00 75.00 - -

Street ServicesResisting or Obstructing Authorised

OfficerStatutory 150.00 150.00 - -

Street ServicesFailure to Produce Street Trading

Licence on DemandStatutory 60.00 60.00 - -

Street Services Unlicensed Street Trading Statutory 90.00 90.00 - -

Street Services Dogs Fouling on Land Statutory 50.00 50.00 - -

STREET SERVICES: DOMESTIC CHARGES

Street Services Skip Licence Fee-phone Statutory 40.00 40.00 - -

Street Services Skip Licence Fee-on-line Statutory 30.00 30.00 - -

Street ServicesSkip Licence Fee-additional fee for CPZ

zoneStatutory 10.00 10.00 - -

STREET SERVICES: GARDEN WASTE

Street Services 240 litre green wheeled bin Cost Recovery 40.00 40.00 - -

Street Services 3 x 90 litre reusable green sacks Cost Recovery 40.00 40.00 - -

Street Services Roll of 50 biodegradable sacks Cost Recovery 40.00 40.00 - -

Street Services Roll of 25 biodegradable sacks Cost Recovery 20.00 20.00 - -

Street Services

Concessionary discount on wheeled

bin, reusable sacks and 50

biodegradable sacks

Cost Recovery 30.00 30.00 - -

143


CHARGING POLICY

Cost Recovery

Statutory

Subsidised


£ £ £ %




POLICY OBJECTIVE

Libraries

Reservations

Libraries Reservations Subsidised 0.80 0.00 (0.80) (100.00%)

Libraries Reservations Concession Subsidised 0.40 0.00 (0.40) (100.00%)

LibrariesItems not in stock in Ealing or

ConsortiumSubsidised 2.50 4.00 1.50 60.0%

Libraries Reservations British Library Subsidised 10.00 11.15 1.15 11.5%

Libraries Periodical articles Subsidised 6.85 6.85 - -

DVD/ CD/ Talking Book hire

Libraries DVD hire week loan Subsidised 2.50 2.40 (0.10) (4.00%)

Libraries DVD hire week loan Subsidised 1.50 1.40 (0.10) (6.67%)

Libraries CD Hire single 2 week loan Subsidised 1.00 1.10 0.10 10.0%

Libraries CD Hire Double 2 week loan Subsidised 2.00 2.00 - -

Libraries CD Multiple set 2 week loan Subsidised 2.00 2.00 - -

Libraries Adult talking books 1/2 Subsidised 1.00 1.00 - -

Libraries Adult talking books 3plus Subsidised 1.50 1.20 (0.30) (20.00%)

Libraries Foreign language 1/2 CD's Subsidised 1.00 1.50 0.50 50.0%

Libraries Foreign language CDs 3plus Subsidised 2.50 2.50 - -

Overdue charges/ other fines

Libraries Overdue charges books/CDs Cost Recovery 0.20 0.20 - -

LibrariesOverdue charges books/CDs -

concessionsCost Recovery 0.20 0.12 (0.08) (40.00%)

Libraries overdue charges DVD Cost Recovery 1.00 1.00 - -

Libraries overdue charges DVD - concessions Cost Recovery 1.00 0.60 (0.40) (40.00%)

Libraries replacement library card - children's Cost Recovery 0.50 1.00 0.50 100.0%

Libraries replacement library card - adults Cost Recovery 1.80 2.15 0.35 19.4%

Libraries Replacement for lost/damaged items Cost Recovery Replacement cost Replacement cost N/A N/A

Photocopying and Printing

Libraries photocopies A4 Cost Recovery 0.10 0.13 0.03 30.0%

Libraries Photocopies A3 Cost Recovery 0.15 0.25 0.10 66.7%

Libraries printing A4 Cost Recovery 0.10 0.13 0.03 30.0%

Libraries Printing A3 Cost Recovery 0.15 0.20 0.05 33.3%

Libraries photocopies A4 colour Cost Recovery 0.30 1.10 0.80 266.7%

Libraries Photocopies A3 colour Cost Recovery 0.60 2.20 1.60 266.7%

CUSTOMER SERVICES

The Library Service is now part of

the tri-borough contract. The

contractor has amended fees to

standardise them across the

contract. If the items are taken

together, the increase on Ealing’s

fees and charges, is below inflation






















144


CHARGING POLICY

Cost Recovery

Statutory

Subsidised


£ £ £ %




POLICY OBJECTIVE

Room Hire

LibrariesRoom Hire - Northolt Library set in Sept

2009 - various

Libraries Room Hire - Central Library - various

Libraries Room Hire - Other rental income

Libraries Music Scores (Annual Subscription) £30 / £50 £30 / £50 - -

Pitzhanger Manor

Venue and Room hire

Pitzhanger Manor External Room Hire - all rooms Hourly

Rate - Mondays 8.30am-5pmSubsidised 110.00 110.00 - -


Rate - Mondays 5pm-10pmSubsidised 194.00 194.00 - -


Rate - Mondays 10pm-12amSubsidised 215.00 215.00 - -

Pitzhanger Manor

External Room Hire - Eating Room

Hourly Rate - Tues-Fri 8.30am -

12.30pm

Subsidised 194.00 194.00 - -

Pitzhanger Manor External Room Hire - Eating Room

Hourly Rate - Tues - Fri 12:30pm - 5pmSubsidised 142.00 142.00 - -


Hourly Rate - Tues-Fri 5pm - 10pmSubsidised 194.00 194.00 - -


Hourly Rate - Tues-Fri 10pm-12amSubsidised 215.00 215.00 - -

Pitzhanger Manor

External Room Hire - Eating Room

Hourly Rate - Sat/Sun 8.30am -

12.30pm

Subsidised 194.00 194.00 - -


Hourly Rate - Sat/Sun 12.30pm - 5pmSubsidised 142.00 142.00 - -


Hourly Rate - Sat/Sun 5pm - 10pm Subsidised 194.00 194.00 - -


Hourly Rate - Sat/Sun 10pm-12am Subsidised 215.00 215.00 - -

Pitzhanger Manor External Room Hire - Gallery Hourly

Rate - Tues-Fri 8.30am - 12.30pmSubsidised 189.00 189.00 - -


Rate - Tues-Fri 12.30 - 5pmSubsidised 215.00 215.00 - -


Rate - Tues-Fri 5pm - 10pmSubsidised 215.00 215.00 - -


Rate - Tues-Fri 10pm-12amSubsidised 255.00 255.00 - -


Rate - Sat/Sun 8.30am - 12.30pm Subsidised 215.00 215.00 - -


Rate - Sat/Sun 12.30pm - 5pm Subsidised 215.00 215.00 - -


Rate - Sat/Sun 5pm - 10pm Subsidised 230.00 230.00 - -


Rate - Sat/Sun 10pm - 12am Subsidised 255.00 255.00 - -

Pitzhanger Manor

External Room Hire - Monks Dining

Room Hourly Rate - Tues-Sun 8.30am -

12.30pm

Subsidised 110.00 110.00 - -

Variable - Rates vary according to purpose/type of clients/room

capacity etc.








145


CHARGING POLICY

Cost Recovery

Statutory

Subsidised


£ £ £ %




POLICY OBJECTIVE

Pitzhanger Manor


Room Hourly Rate - Tues-Sun 12.30pm

- 5.00pm

Subsidised 142.00 142.00 - -

Pitzhanger Manor


Room Hourly Rate - Tues-Sun 5.00pm -

12pm

Subsidised 142.00 142.00 - -

Pitzhanger Manor External Room Hire - Suite/UDR Hourly

Rate Tues-Fri 8.30am -12.30pmSubsidised 110.00 110.00 - -


Rate Sat 12.30pm - 5pmSubsidised 142.00 142.00 - -


Rate Tues-Sat 5pm - 10pmSubsidised 194.00 194.00 - -


Rate Tues-Sat 10pm - 12amSubsidised 215.00 215.00 - -

Pitzhanger Manor

Internal & Community Room Hire - all

rooms Hourly Rate - Mondays 8.30am-

12pm

Subsidised 60.00 60.00 - -

Pitzhanger Manor


rooms Hourly Rate - Mondays 12.30pm -

5pm

Subsidised 110.00 110.00 - -

Pitzhanger Manor


rooms Hourly Rate - Mondays 5pm-

10pm

Subsidised 168.00 168.00 - -

Pitzhanger Manor Internal & Community Room Hire - MDR

Hourly Rate - Tues-Fri - 8.30am - 12amSubsidised 60.00 60.00 - -

Pitzhanger Manor


rooms (not MDR) Hourly Rate -

Mondays 10pm-12am

Subsidised 184.00 184.00 - -

Pitzhanger Manor

Internal & Community Room Hire -

Eating Room Hourly Rate - Tues-Fri

8.30am - 12.30pm

Subsidised 95.00 95.00 - -

Pitzhanger Manor



12.30pm - 5pm

Subsidised 110.00 110.00 - -

Pitzhanger Manor



5pm - 10pm

Subsidised 168.00 168.00 - -

Pitzhanger Manor



10pm-12am

Subsidised 184.00 184.00 - -

Pitzhanger Manor


Gallery Hourly Rate - Tues-Fri 8.30am -

12.30pm

Subsidised 140.00 140.00 - -

Pitzhanger Manor


Gallery Hourly Rate - Tues-Fri 12.30pm -

5pm

Subsidised 168.00 168.00 - -

Pitzhanger Manor


Gallery Hourly Rate - Tues-Fri 5pm -

10pm

Subsidised 175.00 175.00 - -

Pitzhanger Manor


Gallery Hourly Rate - Tues-Fri 10pm-

12am

Subsidised 184.00 184.00 - -

Pitzhanger Manor


Monks Dining Room Hourly Rate - Tues-

Fri 8.30am - 12.30pm

Subsidised 95.00 95.00 - -

146


CHARGING POLICY

Cost Recovery

Statutory

Subsidised


£ £ £ %




POLICY OBJECTIVE

Pitzhanger Manor


Monks Dining Room Hourly Rate - Tues-

Fri 12.30pm - 5.00pm

Subsidised 95.00 95.00 - -

Pitzhanger Manor


Monks Dining Room Hourly Rate -

Sat/Sun 5.00pm - 10pm

Subsidised 95.00 95.00 - -

Pitzhanger Manor


Suite/UDR Hourly Rate Tues-Fri

8.30am -12.30pm

Subsidised 95.00 95.00 - -

Pitzhanger Manor


Suite/UDR Hourly Rate Tues-Fri

12.30pm - 5pm

Subsidised 95.00 95.00 - -

Pitzhanger Manor


Suite/UDR Hourly Rate Tues-Sat 5pm -

10pm

Subsidised 168.00 168.00 - -

Pitzhanger Manor


Suite/UDR Hourly Rate Tues-Sat 10pm -

12am

Subsidised 184.00 184.00 - -

Pitzhanger Manor Tea/Coffee/juice per head Subsidised 1.20 1.20 - -

Pitzhanger Manor Refreshments/biscuits per head Subsidised 1.70 1.70 - -

Pitzhanger Manor Use of PA System Subsidised 50.00 50.00 - -

Pitzhanger Manor 1 x White Table Linen Hire Subsidised 10.00 10.00 - -

Pitzhanger Manor Piano Hire Subsidised 120.00 120.00 - -

Adult Learning

Course Fees

Adult Learning Adult Learning all courses - Full fee Cost Recovery 4.00 4.00 - -

Adult LearningAdult Learning all courses -

concessionary feesSubsidised 2.20 2.20 - -

Registrars

Registrars Approval for worship Statutory 28.00 28.00 - -

Registrars Attendance Registered Building Statutory 80.00 80.00 - -

Registration of Births and Deaths

RegistrarsBirth/Death Certificate Fees

(Superintendent Archived )Statutory 10.00 15.00 5.00 50.0% Reduce level of subsidy

RegistrarsBirth/Death Certificate Fees (Registrar

Archived)Statutory 7.00 7.00 - -

RegistrarsBirth/Death Certificate Fees (Registrar

Current)Statutory 4.00 4.00 - -

Registrars General Search Fee Statutory 18.00 18.00 - -

147


CHARGING POLICY

Cost Recovery

Statutory

Subsidised


£ £ £ %




POLICY OBJECTIVE

Citizenship Ceremonies and National Checking Service

Registrars Citizenship Group Statutory 80.00 80.00 - -

Registrars Private Citizenship Ceremony Cost Recovery 100.00 100.00 - -

Registrars Private Citizenship Ceremony Saturday Cost Recovery 125.00 125.00 - -

Registrars NCS (child) Cost Recovery 30.00 30.00 - -

Registrars NCS (couple) Cost Recovery 100.00 100.00 - -

Registrars NCS (single) Cost Recovery 50.00 50.00 - -

Registrars Sat / Priority NCS Fee (child) Cost Recovery 30.00 30.00 - -

Registrars Sat / Priority NCS Fee (couple) Cost Recovery 120.00 120.00 - -

Registrars Sat / Priority NCS Fee (single) Cost Recovery 60.00 60.00 - -

Registrars SCS ( New Service ) Cost Recovery 90.00 90.00 - -

Registrars Priority Cert Cost Recovery 15.00 15.00 - -

Registrars Name Change deed Poll ( New Service) Cost Recovery 0.00 50.00 50.00 n/a - new service

Marriage Fees/Renewal of vows

Registrars Notice of Marriage / CP Statutory 35.00 35.00 - -

Registrars Approval for Civil Ceremony Cost Recovery 750.00 750.00 - -

RegistrarsApproved Wedding Fees Ealing Town

Hall (Mon-Thur)Cost Recovery 200.00 200.00 - -


Hall (Fri)Cost Recovery 250.00 250.00 - -


Hall (Sat)Cost Recovery 250.00 250.00 - -


Hall (Sun)Cost Recovery 350.00 350.00 - -

Registrars Approved Wedding Fees (Mon-Thur) Cost Recovery 300.00 300.00 - -

Registrars Approved Wedding Fees (Fri) Cost Recovery 350.00 350.00 - -

Registrars Approved Wedding Fees (Sat) Cost Recovery 350.00 350.00 - -

Registrars Approved Wedding Fees (Sun) Cost Recovery 450.00 450.00 - -

Registrars Wedding /CP Fees (Mon-Thur) Cost Recovery 100.00 100.00 - -

Registrars Wedding /CP Fees (Fri) Cost Recovery 125.00 125.00 - -

Registrars Wedding /CP Fees (Sat) Cost Recovery 200.00 225.00 25.00 12.5%

The proposed increase brings fees

into line with neighbouring

boroughs

Registrars Wedding /CP Fees (Sun) Cost Recovery 300.00 300.00 - -

Registrars Wedding /CP Fees (Housebound) Cost Recovery 165.00 165.00 - -

Registrars Renewal of vows (Mon-Thur) Cost Recovery 100.00 100.00 - -

Registrars Renewal of vows (Fri) Cost Recovery 125.00 125.00 - -

148


CHARGING POLICY

Cost Recovery

Statutory

Subsidised


£ £ £ %




POLICY OBJECTIVE

Registrars Renewal of vows (Sat) Cost Recovery 200.00 225.00 25.00 12.5%



boroughs

Registrars Renewal of vows (Sun) Cost Recovery 250.00 250.00 - -

Naming Ceremonies

Registrars Naming Ceremonies (Mon-Thur) Cost Recovery 103.50 103.50 - -

Registrars Naming Ceremonies (Fri) Cost Recovery 125.00 125.00 - -

Registrars Naming Ceremonies (Sat) Cost Recovery 200.00 225.00 25.00 12.5%



boroughs

Registrars Naming Ceremonies (Sun) Cost Recovery 250.00 250.00 - -

Parking Services CPZs - Resident Permits Cost Recovery 50.00 50.00 - -

Parking Services CPZs - Resident Permits Cost Recovery 80.00 80.00 - -

Parking Services CPZs - Allotment Permits Cost Recovery 30.00 30.00 - -

Parking Services CPZs - Business Permits Cost Recovery 600.00 600.00 - -

Parking Services CPZs - Car Club Permits Cost Recovery 600.00 600.00 - -

Parking Services CPZs - Doctor Permits Cost Recovery 600.00 600.00 - -

Parking Services CPZs - Religious Permits Cost Recovery 30.00 30.00 - -

Parking Services Business Vouchers (Hourly charge) Cost Recovery 1.20 1.20 - -

Parking ServicesVisitor Vouchers (Hourly charge 60p -

£4.50 for day)Cost Recovery 4.50 4.50 - -

Parking Services Carer’s Permit Cost Recovery 0.00 45.00 45.00 New charge

Parking Services All zone Permit Cost Recovery 0.00 £1,500 pa 1,500.00 New charge

Parking ServicesOff Street Pay and Display: Perivale

Station (Daily Charge)Cost Recovery 3.50 3.50 - -

Parking ServicesOff Street Pay and Display: Perceval

House (Daily Charge)Cost Recovery 2.00 2.00 - -

Parking ServicesOff Street Pay and Display: Salisbury

Street (Hourly Charge)Cost Recovery 0.80 0.80 - -

Parking Services

Off Street Pay and Display: Norwood

Road 1 & 2, South Ealing Road (Hourly

Charge)


Parking Services

Off Street Pay and Display: Hambrough

Road & Herbert Road (Hourly weekday

charge)


Parking Services

Off Street Pay and Display: Hambrough

Road & Herbert Road (Hourly weekend

charge)


Parking ServicesOff Street Pay and Display: Greenford

BroadwayCost Recovery

70p per hour for 1st 2 hours, £1

per hour thereafter

70p per hour for 1st 2 hours, £1

per hour thereafter- -

Parking ServicesOff Street Pay and Display: Churchfield

Road Cost Recovery

60p per hour for 1st 3 hours,

£1.20 per hour thereafter

60p per hour for 1st 3 hours,

£1.20 per hour thereafter- -

Parking ServicesOff Street Pay and Display: George

StreetCost Recovery 60p per hour, £2 all day 60p per hour, £2 all day - -

PARKING

149


CHARGING POLICY

Cost Recovery

Statutory

Subsidised


£ £ £ %




POLICY OBJECTIVE

Parking Services

Off Street Pay and Display: Arden

Road, Deans Gardens, Singapore

Road, Witham Road

Cost Recovery£1.50 for 1st hour, then £1 per

hour, £10 all day

£1.50 for 1st hour, then £1 per

hour, £10 all day- -

Parking ServicesOff Street Pay and Display:

Featherstone TerraceCost Recovery £1 per hour, £4 all day £1 per hour, £4 all day - -

Parking Services

Off Street Pay and Display:

Springbridge Road (Hourly Weekday

Charge)



Springbridge Road (Saturday Charge)Cost Recovery £1 per hour, £3 all day £1 per hour, £3 all day - -


Springbridge Road (Sunday Charge)Cost Recovery £1 per day £1 per day - -

Parking Services

Off Street Permit: Featherstone

Terrace, Greenford Broadway,

Singapore Road, George Street (Annual

charge)

Cost Recovery 250.00 250.00 - -

Parking ServicesOff Street Permit: George Street

(Annual residents charge)Cost Recovery 50.00 50.00 - -

Parking ServicesOff Street Permit: Churchfield Road,

Salisbury Street (Quarterly charge)Cost Recovery 95.00 95.00 - -

Parking ServicesOff Street Permit: Churchfield Road,

Salisbury Street (Annual charge)Cost Recovery 360.00 360.00 - -

Parking ServicesOff Street Permit: Perivale Station

(Quarterly charge)Cost Recovery 150.00 150.00 - -

Parking ServicesOff Street Permit: Perivale Station

(Annual charge)Cost Recovery 400.00 400.00 - -

Parking ServicesOff Street Permit: Arden Road, Herbert

Road (Quarterly charge)Cost Recovery 150.00 150.00 - -

Parking ServicesOff Street Permit: Arden Road, Herbert

Road (Annual charge)Cost Recovery 500.00 500.00 - -

Parking ServicesOff Street Permit: Springbridge Road

(Quarterly charge)Cost Recovery 190.00 190.00 - -

Parking ServicesOff Street Permit: Springbridge Road

(Annual charge)Cost Recovery 650.00 700.00 50.00 7.7%

Parking ServicesOn Street Pay and Display: Zones A &

B (Hourly charge)Cost Recovery 1.40 1.40 - -

Parking ServicesOn Street Pay and Display: Zones L1 &

L3 (Hourly charge)Cost Recovery 1.50 1.50 - -

Parking ServicesOn Street Pay and Display: Zones L2

(Hourly charge)Cost Recovery 2.00 2.00 - -

Parking ServicesOn Street Pay and Display: Zone CE1


Parking ServicesOn Street Pay and Display: Zone CE2


Parking Services

On Street Pay and Display: Zones C,

CC, D, E, F, GG, H, JJ, K2, M, O, R, S,

T, U, V, X, Y, Z (Hourly charge)


Parking ServicesOn Street Pay and Display: Zones FF,

K1 (Hourly charge)Cost Recovery 1.60 1.60 - -

Parking Services Dispensations Cost Recovery £10 per day per bay £10 per day per bay - -

Parking Services Suspensions Cost Recovery £17 per day per bay £20 per day per bay 3.00 17.6%

150


CHARGING POLICY

Cost Recovery

Statutory

Subsidised


£ £ £ %




POLICY OBJECTIVE

PENALTY CHARGE NOTICES

Parking ServicesCEO - On Street: Higher Level

ContraventionStatutory 110.00 110.00 - -

Parking ServicesCEO - On Street: Lower Level


Parking ServicesCEO - Off Street: Higher Level


Parking ServicesCEO - Off Street: Lower Level


Parking ServicesCCTV Parking (DPE): Higher Level


Parking ServicesCCTV Parking (DPE): Lower Level


Parking Services CCTV Traffic (DTE) Contravention Statutory 130.00 130.00 - -

Parking Services Bus Lane Contravention Statutory 130.00 130.00 - -

Parking Services Removal Release Fee Statutory 200.00 200.00 - -

Parking Services Car Pound Storage (Daily charge) Statutory 40.00 40.00 - -

151


CHARGING POLICY

Cost Recovery

Statutory

Subsidised


£ £ £ %




POLICY OBJECTIVE

CORPORATE RESOURCES DIRECTORATE

Hospitality & EventsHire of Halls - Victoria Hall (mid-week

hourly rate)Cost Recovery 205.00 205.00 - -

Hospitality & EventsHire of Halls - Victoria Hall (community

hourly rate)Subsidised 113.00 113.00 - -

Hospitality & EventsHire of Halls - Victoria Hall (peak hourly

rate)Cost Recovery 355.00 355.00 - -

Hospitality & EventsHire of Halls - Victoria Hall (additional

time hourly rate after 12am)Cost Recovery 400.00 400.00 - -

Hospitality & EventsHire of Halls - Victoria Hall (hospitality

package)Cost Recovery 2,750.00 2,750.00 - -

Hospitality & EventsHire of Halls - Victoria Hall (hospitality

package with enhanced lighting)Cost Recovery 3,250.00 3,250.00 - -

Hospitality & EventsHire of Halls - Princes Hall (mid-week


Hospitality & EventsHire of Halls - Princes Hall (community

hourly rate)Subsidised 82.50 82.50 - -

Hospitality & EventsHire of Halls - Princes Hall (peak hourly

rate)Cost Recovery 235.00 235.00 - -

Hospitality & EventsHire of Halls - Princes Hall (additional


Hospitality & EventsHire of Halls - Princes Hall (hospitality

package)Cost Recovery 2,000.00 2,000.00 - -

Hospitality & EventsHire of Halls - Victoria & Princes Hall

(full hospitality package)Cost Recovery 4,000.00 4,000.00 - -

Hospitality & Events

Hire of Halls - Victoria & Princes Hall

(full hospitality package with enhanced

lighting)

Cost Recovery 4,500.00 4,500.00 - -

Hospitality & EventsHire of Halls - Victoria & Princes Hall

(reception hospitality package)Cost Recovery 3,250.00 3,250.00 - -


Hire of Halls - Victoria & Princes Hall

(reception hospitality package with

enhanced lighting)

Cost Recovery 3,750.00 3,750.00 - -

Hospitality & EventsHire of Halls - Nelson Room (mid-week


Hospitality & EventsHire of Halls - Nelson Room

(community hourly rate)Subsidised 60.00 60.00 - -

Hospitality & EventsHire of Halls - Nelson Room (peak


Hospitality & EventsHire of Halls - Nelson Room (additional



Hire of Halls - Queens Hall, Elizabeth

Cantell Room & Telfer Room (non-

dance) ( mid-week hourly rate)

Cost Recovery 103.00 103.00 - -




dance) ( community hourly rate)

Subsidised 60.00 60.00 - -




dance) ( peak hourly rate)

Cost Recovery 175.00 175.00 - -

CORPORATE RESOURCES

152


CHARGING POLICY

Cost Recovery

Statutory

Subsidised


£ £ £ %




POLICY OBJECTIVE




dance) (additional time hourly rate after

12am)

Cost Recovery 260.00 260.00 - -

Hospitality & EventsHire of Halls - Queens Hall & Elizabeth

Cantell Room (hospitality package)Cost Recovery 1,100.00 1,100.00 - -


Hire of Halls - Telfer Room Dance

Studio Mon - Sun Adult Classes (flat

rate)

Subsidised 60.00 60.00 - -


Hire of Halls - Telfer Room Dance

Studio Mon - Sun Children's Classes

(flat rate)

Subsidised 40.00 40.00 - -

Hospitality & EventsHire of Halls - Committee Room 2 & 4

(mid-week hourly rate)Cost Recovery 38.00 38.00 - -

Hospitality & EventsHire of Halls - Committee Room 2 & 4

(community hourly rate)Subsidised 23.00 23.00 - -

Hospitality & EventsHire of Halls - Greenford Hall (mid-week

hourly rate)Cost Recovery 150.00 155.00 5.00 3.3%

Hospitality & EventsHire of Halls - Greenford Hall

(community hourly rate)Subsidised 82.50 85.00 2.50 3.0%

Hospitality & EventsHire of Halls - Greenford Hall (peak

hourly rate)Cost Recovery 280.00 290.00 10.00 3.6%

Hospitality & EventsHire of Halls - Greenford Hall (additional


Hospitality & EventsHire of Halls - Greenford Hall (hospitality

package rate) - commercialCost Recovery 2,200.00 2,275.00 75.00 3.4%

Hospitality & EventsHire of Halls - Greenford Hall (hospitality

package rate) - communityCost Recovery 1,000.00 1,080.00 80.00 8.0%

Community rates have not been

increased since November 2011

due to the refurbishment of

Greenford Hall. These increases

reflect inflation since that point

Hospitality & EventsHire of Halls - Greenford Hall - Cyril

Grant Room (mid-week hourly rate)Cost Recovery 103.00 105.00 2.00 1.9%


Grant Room (community hourly rate)Subsidised 60.00 65.00 5.00 8.3%







Grant Room (peak hourly rate)Cost Recovery 125.00 130.00 5.00 4.0%


Hire of Halls - Greenford Hall - Cyril

Grant Room (additional time hourly rate

after 12am)

Cost Recovery 260.00 260.00 - -


Hire of Halls - Greenford Hall - Cyril

Grant Room (hospitality package)

commercial

Cost Recovery 950.00 980.00 30.00 3.2%


Hire of Halls - Greenford Hall - Ruislip /

Ravenor meeting rooms (community

rate 9am - 5pm)

Subsidised 15.00 16.00 1.00 6.7%



Ravenor meeting rooms (peak hourly

rate 9am - 5pm)

Subsidised 25.00 27.00 2.00 8.0%



Ravenor meeting rooms (mid-week

hourly rate 5pm - 12am)

Subsidised 23.00 24.00 1.00 4.3%






153


CHARGING POLICY

Cost Recovery

Statutory

Subsidised


£ £ £ %




POLICY OBJECTIVE



Ravenor meeting rooms (peak hourly

rate 5pm - 12am)

Subsidised 45.00 48.00 3.00 6.7%

Service Ealing Street Naming Cost Recovery 250.00 250.00 - -

Service Ealing Building Naming Cost Recovery 100.00 100.00 - -

Service Ealing Property Naming and Numbering Cost Recovery 100.00 100.00 - -

Audit & InvestigationFinancial management Standard in

Schools (FMSIS)Subsidised 1,000.00 1,000.00 - -

CHIEF EXECUTIVE'S DIRECTORATE

Marketing &

Communications

Charges vary for filming at different

locations in the Borough. Charges also

depend on number of crew, hours,

location and day/night time

Subsidised £300 - £3,000 £300 - £3,000 - -

Marketing &

Communications

Advertisements in Around Ealing

MagazineSubsidised

Full page: £1650 Inside

front cover: £1,800 Back cover:

£1,900 Half page: £900

Quarter page: £500

Full page: £1650 Inside

front cover: £1,800 Back cover:

£1,900 Half page: £900

Quarter page: £500

- -






MARKETING AND COMMUNICATIONS

154


Appendix 13: Analysis of Reserves

31.3.13 31.3.14 31.3.15 31.3.16 31.3.17£m £m £m £m £m

Corporate - Business Risk Reserve 8.349 10.534 14.640 14.640 14.640

Corporate - Capital Expenditure Financing Reserve 1.373 0.731 0.708 0.708 0.708

Corporate - Ealing Civic Improvement Fund 2.434 0.671 0.173 0.000 0.000

Corporate - Insurance Reserve 4.786 4.315 4.315 4.315 4.315

Corporate - Treasury Risk Reserve 2.700 0.795 0.795 0.395 1.595

Corporate - Welfare Reform 2.203 2.000 2.000 2.000 2.000

Corporate – Others in total 10.185 7.256 6.477 5.837 5.482

Service – Others in total 16.108 10.287 4.998 3.179 2.245

Parking Places Reserve Account 1.613 1.226 0.736 0.736 0.736

PFI Reserves 32.578 33.875 34.775 35.149 35.442

Sub-total Controllable Reserves 82.328 71.690 69.617 66.960 67.164

Schools' Balances 20.876 19.000 17.000 15.000 13.000

CONTROLLABLE RESERVES 103.204 90.690 86.617 81.960 80.164

General Fund Balance 15.4 15.4 15.4 15.4 15.4

GRAND TOTAL 118.604 106.090 102.017 97.360 95.564

Earmarked reserves

155

APPENDIX 14: REVENUE BUDGETS 2014/15

Controllable Budget 2013/14

Controllable Budget 2014/15

CSA Total Budget

2014/15

Capital Charges Budget 2014/15

Total Budget 2014/15

£'000 £'000 £'000 £'000 £'000 Schools Service 2,250 2,175 1,228 6,517 9,920

Children and Families 54,439 53,576 6,672 298 60,546

Adults Services 70,064 69,664 5,693 244 75,601

Public Health Grant (shared by Adults & Childrens and Families services) (21,376) (21,974) - - (21,974)

Public Health Expenditure 21,376 21,974 - - 21,974

Sub total 126,753 125,415 13,593 7,059 146,067

Housing (General Fund) 3,426 3,404 1,026 30 4,460

Safer Communities 3,764 3,670 833 29 4,532

Property and Regeneration 3,277 2,966 269 448 3,683

Built Environment 2,107 1,948 1,101 222 3,271

Sub total 12,574 11,988 3,230 729 15,947

Environment and Customer Services Management 1,337 1,391 (405) 320 1,306

Customer Services 9,959 9,179 296 423 9,898

Environment and Leisure 24,803 24,496 3,037 8,569 36,102

Parking Off-Street (1,013) (1,006) 678 493 165

Parking Account Contribution to Transport Costs (8,121) (8,522) - - (8,522)

Sub total 26,965 25,538 3,606 9,805 38,949

Finance and Audit 6,345 5,943 (4,193) - 1,750

Legal and Democratic Services 2,539 2,991 846 - 3,837

Business Services 15,987 14,565 (14,146) 1,074 1,493

Human Resources 1,870 1,650 (1,467) - 183

Sub total 26,741 25,149 (18,960) 1,074 7,263

Marketing and Communications 1,216 1,148 (1,027) - 121

Policy and Performance 563 493 (441) - 52

Chief Executive 169 149 - - 149

Sub total 1,948 1,790 (1,469) - 321

Housing Benefit 3,939 3,939 - - 3,939

Council Wide 3,653 4,515 - - 4,515

Education Service Grant (6,000) (5,786) - - (5,786)196,573 192,548 - 18,667 211,215

(900) (900) (900)Total budget for Services 195,673 191,648 - 18,667 210,315

Other Savings & Growth ItemsGrowth Held Centrally 4,345 6,957 6,957Total 4,345 6,957 - - 6,957

Finance, Contingency and other non-operational costsInterest and Finance Charges 36,237 39,967 39,967Revenue Contribution to Capital 13,264 - - Contingency 3,000 3,000 3,000

- Total 52,501 42,967 - - 42,967

Council Tax Freeze Grant (1,056) (1,277) (1,277)New Homes Bonus (5,144) (6,839) (6,839)

Total (6,200) (8,116) - - (8,116)

Levies: Lee Valley Regional Park Authority 327 317 317 Environment Agency 234 232 232 West London Waste Authority 12,293 12,068 12,068 London Pensions Fund Authority 399 393 393 Coroners Service 289 274 274 Concessionary Fares 15,454 15,971 15,971Total Levies 28,996 29,255 - - 29,255Depreciation Charges (18,667) (18,667)Total Budget Requirement (General Fund) 275,315 262,711 - - 262,711

BUDGET REQUIREMENT FUNDED BY 2013/14

£'000 2014/15

£'000 2014/15

£'000 Settlement Funding Allocation 167,714 153,673 153,673Collection Fund 2,010 2,500 2,500Council Tax Income 105,591 106,538 106,538Total Funding for Ealing 275,315 262,711 262,711

£'000 £'000 £'000Payment to GLA 30,185 30,054 30,054

£ £ £Band D Council Tax for Ealing Budget 1,059.93 1,059.93 1,059.93Band D Council Tax for GLA 303.00 299.00 299.00Total Band D Counil Tax (incls the GLA) 1,362.93 1,358.93 1,358.93Council Tax % Increase (year on year) 0.00% -0.3% -0.3%

Tax Base 99,620.69 100,514.29 100,514.29Collection Rate 96.68% 96.68% 96.68%

Recoveries from Schools

Departments

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nd

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Envi

ronm

ent a

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Cus

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Chi

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156

1

Report for: ACTION

Item Number: 13

Contains Confidential or Exempt Information

NO.

Title Pay Policy Statement

Responsible Officer(s) David Veale, Assistant Director of Core Human Resources and Organisational Development

Author(s) Andrew Scully, Human Resources Business Partner

Portfolio(s) Councillor Yvonne Johnson, Finance and Performance

For Consideration By Council

Date to be Considered Tuesday 25th February 2014

Implementation Date if Not Called In

Not applicable

Affected Wards None

Keywords/Index Localism Act 2011, Pay Policy Statement, Policy Statement

Purpose of Report: Chapter 8 of the Localism Act 2011 (the “Act”) contains the requirement for an annual Pay Policy Statement to be approved by Full Council and then published. Publication must include publication on the Council’s website.

1. Recommendations

1. That Full Council approve the attached Pay Policy Statement (appendix “1”) and note the supporting appendices “2”, “3” &“4”;

2. That Full Council approve a policy, for 2014/15, to pay the London Living Wage (LLW) rate or above to direct employees (whether permanent or fixed term ) and to ensure agency workers are paid the LLW;

3. That Full Council note that decisions on proposed remuneration packages of £100,000 and above will be determined by Chief Officer Panel, in accordance with their existing terms of reference; and

4. That Full Council commend to Governing Bodies of Schools that they consider paying the LLW rate to schools based employees (whether permanent or fixed term) and to agency workers working in Schools

2. Reason for Decision and Options Considered 2.1. The Act requires Full Council to approve a Pay Policy Statement for the financial year 2014-15. It will also require a Pay Policy Statement to be approved for each future year. 2.2. The Pay Policy Statement (appendix “1”) and supporting appendices “2”, “3” & “4” meets the requirements of the Act and takes into account the Department for Communities and Local Government (DCLG) guidance on the “Openness and

2

accountability in local pay: guidance under section 40 of the Localism Act” issued on 17th February 2012 and Supplementary Guidance issued in February 2013, “The Code of Recommended Practice for Local Authorities on Data Transparency” and the Accounts and Audit (England) Regulations 2013. 2.3. The Act requires that authorities include in their Pay Policy Statement, their approach to the publication of and access to information relating to the remuneration of chief officers. The council already publishes information on its public website. This is set out in the Pay Policy Statement. 2.4. Full Council is asked to approve a policy, for 2014/15, to pay the London Living Wage (LLW) rate or above to direct employees, agency and temporary workers, note that the Council has obtained Living Wage accreditation and the affordability of moving to London Living Wage rates in new contracts has been progressed as part of the Council’s 2013/14 budget process as agreed by Cabinet on 23rd October 2012. 2.5. The Pay Policy Statement is substantially unchanged with the exception of the implications of the increase in the London Living Wage on 4th November 2013 to £8.80 per hour as described in paragraph 3.9. 3. Key Implications Localism Act and Pay Policy Statement. 3.1. The Act requires Full Council to approve a Pay Policy Statement for the financial year 2014-15. 3.2. Full Council should note that the provisions of the Act do not apply to staff in the local authority’s schools. 3.3. The Act states that: “A pay policy statement for a financial year must set out the authority’s policies for the financial year relating to: - the remuneration of its chief officers the remuneration of its lowest-paid employees, and the relationship between— (i) the remuneration of its chief officers, and (ii) the remuneration of its employees who are not chief officers. 3.4. Furthermore the Act specifies that: - “the Statement must include the authority’s policies relating to: (a) the level and elements of remuneration for each chief officer; (b) remuneration of chief officers on recruitment; (c) increases and additions to remuneration for each chief officer; (d) the use of performance related pay for chief officers; (e) the use of bonuses for chief officers; (f) .the approach to the payment of chief officers on their ceasing to hold office

under or to be employed by the authority; and (g) the publication of and access to information relating to remuneration of chief

officers.

3

3.5. In addition the Act states that: - “A pay policy statement for a financial year may also set out the authority’s policies for the financial year relating to the other terms and conditions applying to the authority’s chief officers” 3.6. Furthermore Full Council is asked to note that “The Code of Recommended Practice for Local Authorities on Data Transparency” recommends the publication of a pay multiple defined as: - “the ratio between the highest paid salary and the median salary of the whole of the authority’s workforce”. The pay multiple as at 22nd January 2014 is 5.836 which is down from the pay multiples of 7.213 and 5.983 in the Pay Policy Statements for 2012-13 and 2013-14, respectively, and is well within what is regarded as good practice. Ealing’s ratio will compare favourably with other Council data collected by Will Hutton for his 2011 Fair Pay Review in the Public Sector which identified multiples at or around 8.00. 3.7. The Act and Guidance make reference to remuneration packages of £100,000 and above and Full Council are asked to note that decisions on proposed remuneration packages of £100,000 and above will be determined by Chief Officer Panel, in accordance with their existing terms of reference. London Living Wage (LLW). 3.8. London has had a Living Wage campaign since 2001. Since March 2005 it has been independently calculated and published by the Greater London Authority (GLA). The London Living Wage (LLW) is currently £8.80 per hour effective from 4th November 2013 which is higher than the National Minimum Wage (NMW) and represents the minimum reasonable rate of pay in the Capital. 3.9. In 2013-14 as a direct employer of staff the Council met the requirements of paying the LLW, even when on 4th November 2013 when the LLW was increased to £8.80 per hour, with no employee paid on the Greater London Provincial Council (GLPC) or other (i.e. Soulbury) pay spines falling below the LLW. On 4th November 2013 the LLW was increased to £8.80 per hour which took it above the lowest pay spine points (Grade 1, spinal column point [SCP] 7, £8.57 per hour and [SCP] 8, £8.79 per hour) of the GLPC pay spine. 3.10. Where the contractual entitlement to salary for a post is lower than the LLW, then the proposal is that, for 14/15, the difference be paid as a discretionary supplement. Employees will not receive a contractual guarantee that the supplement will continue indefinitely. Prior to 1 April in each subsequent financial year, the Council should make a decision as to whether the supplement will be paid in that forthcoming year or not. The supplement can also be withdrawn by the Council during a financial year. 3.11. If the LLW continues to increase on an annual basis and there continues to be pay freezes in local government then the Council will in future years be in the position where the LLW is more than the lowest spinal column point (SCP) on the pay spine. If the Council adopts a policy that no employee is paid less than the LLW this will have a minor effect on staffing budgets in future years.

4

3.12. Full Council is asked to approve a policy, for 2014/15, that no employee is paid less than the London Living Wage (LLW). This would be the policy for 14/15. The policy for future years must be set each year by full council. 3.13. For schools based employees it is up to each school to decide whether to adopt the LLW. There are 129 Schools based employees on Grade 1, SCP's 7 and 8 who are paid less than the LLW. Full Council is asked to commend to Governing Bodies that they consider paying the LLW rate to schools based employees (whether permanent or fixed term) and to agency workers working in schools. 3.14. At the meeting on Tuesday 23rd January 2007 Full Council agreed the following motion: “This Council notes that all employees subject to the pay and conditions of Ealing Council are paid at or above the level of the London Living Wage. This Council believes that all members of our community have the right to earn a living wage. As community leaders this Council will work with partners in seeking to deliver a living wage across Ealing” 3.15. At the meeting on Tuesday 23rd October 2012 Cabinet resolved: “That Cabinet i. agrees to begin the process of Living Wage accreditation, noting the financial and legal issues set out in sections 3 and 4. ii. commits to paying the London Living Wage rate or above to all direct employees and agency and temporary staff as defined in Section 2.6, of the report and notes that this has already been achieved. iii. agrees that the affordability of moving to London Living Wage rates on new contracts as discussed in Section 3 of the report should be considered and reported upon in the Council’s 2013/14 budget process”. 4. Financial 4.1. The Pay Policy Statement 2014-15 will have an impact on current budgets. 4.2 The 13/14 Pay Policy Statement mentioned that it was conceivable that the London Living Wage could rise during 2013-14 (see section headed “Low Pay”). In fact, that did happen. On 4th November 2013, the London Living Wage was increased to £8.80 per hour. As stated above in paragraph 3.13. there are 129 employees on Grade 1, SCP’s 7 and 8 and all work in Schools. For Schools based employees it is up to each School to decide whether to adopt the LLW. 4.3. In respect of the TUPE of Facilities Management to the Council on Monday 28th January 2013 Cabinet decided on Tuesday 23rd April 2013 to approve the cost of between £500K and £750K with a potential further cost of £500K in respect of Employer Pension Contributions of applying the provisions contained in the Pay Policy Statements for 2012-13 and 2013-14 and paying the London Living Wage (LLW) as a discretionary supplement to those employees working in Facilities Management, who transferred to the Council from the previous contractor on Monday 28th January 2013, for the period 28th January until 31st March 2014. These costs to be met from a budget virement from reserves in 2013/14 to Facilities Management to cover the on-going cost and factored into the MTFS for 2014/15 onwards.

5

5. Legal

5.1. Full Council has to comply with the requirements contained in the Localism Act 2011 which require Full Council to approve a Pay Policy Statement for the financial year 2014-2015 and in future years and must have regard to any guidance issued or approved by the Secretary of State.

5.2. The Act contains a definition of “chief officer” which is set out in the proposed policy. 5.3. The Act also contains a requirement that the Council must decide upon a definition of “lowest paid employees” and must set out the reasons for that decision. 5.4. The proposed statement complies with the statutory requirements for pay policy statements as set out in the Localism Act 2011. 5.5. As per s112 of the Local Government Act 1972, the remuneration of employees may be such reasonable remuneration as the Council thinks fit. 5.6. The Council does not have an unfettered discretion to pay any amount of remuneration whatsoever. It must not pay a salary which is unreasonably high. It must ensure that it does not make payments to employees which could be seen as “gifts” (subject to certain specific, narrow exceptions). 5.7. It is not unlawful for the Council to approve a policy of always paying at least the LLW to any employee, even where that salary exceeds the recommended salary arrived at by the use of a job evaluation scheme. This is subject to the proviso that the LLW must not be a salary which is unreasonably high for the post in question.

5.8. If the Council having considered any factors which might appear relevant, decided that it was reasonable to ensure, for the year 14/15, that no employee received a lower rate of pay, then that would not be an irrationally generous approach to determining the salary of its lowest paid employees for 14/15.

5.9. Where the contractual entitlement to salary for a post is, for any reason, lower than the LLW, then the proposal is that, for 14/15, the difference be paid as a discretionary supplement. Employees will not receive a contractual guarantee that the supplement will continue indefinitely. Prior to 1 April in each subsequent financial year, the Council should make a decision as to whether the supplement will be paid in that forthcoming year or not. The supplement can also be withdrawn by the Council during a financial year. 6. Value For Money

6.1. None.

7. Sustainability Impact Appraisal

7.1. None. 8. Risk Management

8.1. None.

6

8. Community Safety 9.1. None.

10. Links to the 5 Priorities for the Borough

10.1. None.

11. Equalities, Human Rights and Community Cohesion

11.1. An Equality Analysis Assessment was undertaken when the Pay Policy Statement for 2012-13 was produced and was attached to the report on the Pay Policy Statement submitted to Council on Tuesday 3rd April 2012 and an Equality Analysis Assessment was undertaken when the London Living Wage was agreed by Cabinet on Tuesday 23rd October 2012. The contents of these two Equality Analysis Assessments still stand and there is no significant or substantive new information in respect of the Equality Assessment so new Equality Analysis Assessment has been produced. 12. Staffing/Workforce and Accommodation implications:

12.1. Throughout.

13. Property and Assets

13.1. No property implications. 14. Any other implications:

14.1. None.

15. Consultation

15.1. None.

16. Timetable for Implementation

16.1. After Full Council approval publication of Pay Policy Statement for the financial year 1st April 2014 to 31st March 2015 on the Council’s website.

17. Appendices 17.1. Appendix “1” – “Ealing Council – Pay Policy Statement for the year 1st April 2014 to 31st March 2015”; 17.2. Appendix “2” – “Ealing Council – Pay Policy Statement for the financial year 1st April 2014 to 31st March 2015 – Appendix “2” Salary Rates from 1st April 2013; 17.3. Appendix “3” – “Ealing Council – Policy Statement – A. Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2006 – B. Local Government Pension Scheme – Discretionary Decisions”;

7

17.4. Appendix “4” – Ealing Council – Pay Policy Statement for the financial year 1st April 2014 to 31st March 2015 – Pay Protection arrangements as at 12th February 2013;

18. Background Information Localism Act 2011; Department for Communities and Local Government – Openness and accountability in local pay: Draft guidance under section 40 of the Localism Act; Department for Communities and Local Government – Openness and accountability in local pay: Draft guidance under section 40 of the Localism Act – Supplementary Guidance; Department for Communities and Local Government – The Code of Recommended Practice for Local Authorities on Data Transparency; Hutton Review of Fair Pay in the Public Sector: Final report (March 2011); Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2006; Item 10 – London Living Wage – to the meeting of Cabinet on Tuesday 23rd October 2012; and Item 16 – Facilities Management and London Living Wage (LLW) – to the meeting of Cabinet on Tuesday 23rd April 2013 Consultation

Name of consultee

Post held Date sent to

consultee

Date response received

Comments appear in

paragraph:

Internal

Martin Smith Chief Executive 23rd January 2014

10th February 2014

No comments

Ian O’Donnell Executive Director, Corporate Resources

23rd January 2014

13th February 2014

No comments

David Veale Assistant Director of Core Human Resources & Organisational Development

9th & 23rd January 2014

7th February 2014

Report and Appendix 1

Jane Lynham Payroll & Pensions Manager

9th & 23rd January 2014

20th January 2014

Paragraph 3.6.

8

Name of consultee

Post held Date sent to

consultee

Date response received

Comments appear in

paragraph:

Steve Pullen ITrent Systems Manager 20th January 2014

22nd January 2014

Paragraph 3.6.

Helen Harris Director of Legal & Democratic Services

23rd January 2014

3rd February 2104

Appendix 1

Paddy Quill Lawyer 9th & 23rd January 2014

17th January & 3rd February 2014

Paragraphs 3.3., 3.4., 3.6. and 5.

Nigel Watson Assistant Director, Corporate Finance & Audit

23rd January 2014

13th February 2014

No Comments

Julian Bell Leader

Yvonne Johnson Cabinet Member for Finance and Performance

5th February 2014

Recommendation 4, paragraph 3.13 and Appendix 1.

Report History

Decision type: Urgency item?

Key decision

No

Report no.: Andrew Scully, HR Business Partner. 020-8825-6930. [email protected]

Page 1 of 9

Appendix “1”

Ealing Council.

Pay Policy Statement for the financial year 1st April 2014 to 31st March 2015.

______________________________________________________________ Organisational context and principles for pay policy High quality public services require high calibre staff to deliver them. Maintaining and improving local public services during a period of radical public service reform and unprecedented budgetary constraint is a major challenge for the council. To succeed it is vital to ensure that our staff are fairly rewarded for their contributions, and that the shared commitment to public services - that motivates so many Council staff – is maintained. In this context, remuneration at all levels needs to be adequate to secure and retain a talented workforce but at the same time must not be excessive. Key elements of the Council’s pay policy

The Council participates in national pay bargaining and adopts staff terms and conditions agreed by national and regional negotiating bodies.

For schools based employees, the Council provides advice to the school relating to the appropriate grade for the post, but ultimately the Governing Body makes the decision.

Pay grades for all other employees are determined by the use of externally developed job evaluation schemes.

No employee will be paid less than the London Living Wage. Where an employee’s contractual entitlement is to a rate of pay lower than the London Living Wage then, for 14/15, the Council will pay a discretionary supplement to bring their rate up to the London Living Wage.

All staffing appointments are made on merit.

A published severance policy applies to all employees.

For chief officers: -

A member body oversees employment matters, including pay, appointment and severance.

Incremental progression is dependent upon a performance appraisal outcome of at least ‘successful.’

There will be no performance related pay for the year 13/14. Performance related pay was last paid in respect of the year 09/10.

The Council’s Workforce Strategy - Valued; Flexible; Productive The Council agreed its Workforce Strategy for the three years – 2011 to 2014 and a complementary action plan. The strategy sets out Ealing’s vision for its workforce – a workforce that is valued for what is does by those we work with and for; flexible in its approach to adapt rapidly to changing residents’ needs

Page 2 of 9

and reduced budgets; and productive so that we continuously improve public services and value for money. That vision is underpinned by an action plan for each of the following themes:

Improved performance and productivity

Flexible organisation and workforce

Workforce planning and development

Effective engagement

Recruitment and retention Each theme is sponsored by a member of corporate board reflecting the fundamental importance of this work in enabling the Council to meet its corporate objectives and priorities set out in the Corporate Plan. Pay Policy Statement Policies on pay and reward are intended to support and reinforce the organisational context, principles for pay policy and objectives of the workforce strategy as set out in the preceding paragraphs. This pay policy statement also satisfies the specific requirements of the Localism Act 2011 particularly in relation to chief officers. Definition of “chief officer” The Localism Act 2011 defines “chief officer” (for the purposes of pay statements) as anyone within any of the following categories: (a) the head of paid service designated under section 4(1) of the Local Government and Housing Act 1989; (b) the monitoring officer designated under section 5(1) of that Act; (c) a statutory chief officer mentioned in section 2(6) of that Act; (d) a non-statutory chief officer mentioned in section 2(7) of that Act; (e) a deputy chief officer mentioned in section 2(8) of that Act. Thus, where the expression “chief officer” is used within this document, it refers to an officer within the above-mentioned definition unless otherwise stated. Determining grades and pay levels

National and regional agreements The Council supports the system of collective bargaining. It applies the terms and conditions agreed by the Joint Negotiating Committee for Chief Officers of Local Authorities (“JNC”) to those within the scope of that agreement, which includes all employees who are chief officers. It applies the terms and conditions of service agreed by: the National Joint Council (“NJC”) for Local Government Services and the Greater London Provincial Council (“GLPC”); the Soulbury Committee; and the JNC for Youth and Community Workers to other employees.

Page 3 of 9

National agreements are a significant determinant of staff remuneration, notably through national negotiation of annual pay awards. London Weighting Allowance. National and regional agreements are also a determinant of staff remuneration, notably London Weighting Allowance. This Allowance is consolidated into Chief Officer grades but shown as a separate payment for GLPC evaluated grades (grades 1 – 18), Soulbury Committee and JNC for Youth and Community Workers employees. Ealing Supplement. A local “Ealing” Supplement was paid to employees until 31st March 2013. With effect from 1st April 2013 the Ealing Supplement of £141 per annum was removed from posts graded Grade 4 and above (including Chief Officers). Posts graded Grade 1, 2 and 3 continue to be paid the Ealing Supplement of £282 per annum. A review is to take place in April 2015. Job evaluation The pay grades of employees within the scope of the JNC are determined by the application of the HayGroup Job Evaluation Scheme (Hay Scheme). The Hay Scheme is a market leading and widely-used systematic process for ranking jobs logically and fairly by comparing job against job or against a pre-determined scale to determine the relative importance of jobs to an organisation. The conceptual framework underpinning the Hay Scheme is that all jobs need Know-How in order to undertake Problem Solving and discharge Accountability. For other employees, pay grades are determined by the application of the National Soulbury Committee arrangements, the Joint Negotiating Committee for Youth and Community Workers and the Greater London Provincial Council Job Evaluation Scheme (GLPCJES) designed specifically for use by London boroughs. The objective of the GLPCJES is to operate grading arrangements based on principles of fairness, transparency, and consistency and to operate free of gender bias and discrimination. Employees who have joined the Council as a result of a TUPE transfer may have different arrangements. In accordance with TUPE, the Council will comply with any such contractual arrangements in relation to the pay for such employees. Progression through pay grades Until 31st March 2013 chief officer employees moved through the pay scale via annual increments and this was dependent upon a performance appraisal outcome of at least ‘successful.’

Page 4 of 9

With effect from 1st April 2013 incremental progression was frozen for grades 8 and above (including chief officers). Employees on grades 1 to 7 still have incremental progression. Incremental progression restarts for grades 8 and above (including chief officers) on 1st April 2015. Performance related pay, allowances and benefits in kind The Council does not pay performance related pay or bonuses to chief officers. Until 31st March 2010 the Council had a performance related pay scheme (LIPS) for its most senior chief officer posts. At its meeting on Monday 28th June 2010 the Council’s Chief Officers Panel (COP) decided to end LIPS effective from 1st April 2010 A number of chief officers are paid a travel allowance but other than this no chief officer receives any allowances or benefits-in-kind. Payment of election fees In some years, when general, local or European elections occur, the Chief Executive is entitled to receive election fees for organising and overseeing the election in the role of Returning Officer/Acting Returning Officer. The fee level for each election is determined by national or local scales for each type of election. Market supplements and scarcity payments The Council has a scheme that provides for market scarcity supplement payments to be paid for recruitment and retention purposes. Reports with internal and external evidence from the market are prepared for approval by the Assistant Director of Human Resources and Organisational Development who has delegated authority to approve such payments. Market scarcity supplements are kept to a minimum and periodically reviewed. Transparency Senior officer pay grades For chief officers the following pay grades with minimum and maximum salary levels are derived from the application of the HayGroup Job Evaluation Scheme.

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Pay Grade Minimum Salary £

Maximum Salary £

Chief Executive 167,391 178,200

Executive Director 120,303 132,870

Director - CB1 88,660 109,809

Director - CB2 83,052 87,843

CB3 78,069 82,347

CB4 67,656 71,349

CB5 62,397 66,300

CB6 57,213 61,119

Information on the senior management structure is published on the Council’s website here:

http://www.ealing.gov.uk/downloads/download/672/senior_management_structure_chart

Information on the pay of the Council’s most senior staff is published on the Council’s website here: http://www.ealing.gov.uk/downloads/download/481/executive_pay

More detailed information is published annually in the Statement of Accounts here: http://www.ealing.gov.uk/info/200687/council_budgets_and_spending/338/statement_of_accounts Under the Government’s Code – “The Code of Recommended Practice for Local Authorities on Data Transparency” – public data on senior employees (with the option for individuals to refuse to consent for their names to be published) salaries should be released. “Senior employee salaries” is defined as all salaries which are above £58,200 and above (irrespective of post), which is the Senior Civil Service minimum pay band. Information on all staff earning more than £58,200 can be found here: http://www.ealing.gov.uk/downloads/download/1653/senior_officer_pay The information referred to in the links above will be refreshed and updated during 2014 after publication of the updated “Code of Recommended Practice for Local Authorities on Data Transparency” which is currently the subject of consultation. Efficiencies in management costs. Since 2010 senior management costs (Director level or equivalent posts) have been reduced by 34%, from £3.7M to £2.5M (reported to Full Council on 26th February 2013). This includes savings arising from ending the performance related pay scheme and from the deletion of ex-ALMO (Arm’s Length

http://www.ealing.gov.uk/downloads/download/672/senior_management_structure_chart

http://www.ealing.gov.uk/downloads/download/481/executive_pay

http://www.ealing.gov.uk/info/200687/council_budgets_and_spending/338/statement_of_accounts

http://www.ealing.gov.uk/info/200687/council_budgets_and_spending/338/statement_of_accounts

http://www.ealing.gov.uk/downloads/download/1653/senior_officer_pay

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Management Organisation {for Ealing Homes}) posts after transfer to the Council. Total savings in the cost of positions attracting senior officer pay grades are approximately £3M. Comparison with other London Boroughs The Council participates in benchmarking exercise of senior management costs and structures (defined as the Chief Executive and the next two layers) coordinated by London Councils. Results, based on 2010 data and reported to Full Council on 3rd April 2012, are shown below.

CE (Layer 1)

Executive Directors (Layer 2)

Layer 3 Aggregate Salaries for

Layer 3

Salary No Ave. Salary No Ave. Salary

Ealing £170,722 4 £129,869 21 £106,067 £2.2m

London average

£185,584 6.7 £127,449 29 £101,417 £2.9m

London median £185,397 6 £127,769 27 £100,920 £3.0m

This showed that the size and cost of Ealing’s senior management structure is one of the lowest in London and around 25% below the average. This is before any adjustment to take account of relative borough size. Ealing is London’s third largest borough. Accountability Chief Officer and Chief Officers Appointments Panel The Council has established member bodies, the Chief Officer and Chief Officers Appointment Panels, to oversee employment matters, including pay, relating to its chief officers. The responsibilities of these Panels include: -

Reviewing current salaries and contractual arrangements and considering and agreeing the changes necessary to ensure Ealing is able to recruit and retain chief officers it needs now and in the future.

Agreeing recruitment arrangements, shortlisting & interviewing candidates and making appointments, if appropriate, to chief officer posts.

Re-appointment of existing Chief Officers into new posts and selection for redundancy.

Disciplinary, grievance, capability and termination arrangements in respect of chief officer posts.

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Council Role.

Full Council are asked to note that decisions on proposed remuneration packages for new appointments, including market supplements and scarcity payments and fees, in excess of £100,000 and above will be determined by Chief Officer Panel, in accordance with their existing terms of reference.

Fairness Pay multiples The median earnings figure for all employees is £30,531 per annum, equivalent to a grade Scale 8. As at 22nd January 2014 the ratio between the taxable earnings for the highest paid employee – the Chief Executive - and the median earnings figure for all employees in the Council is 5.836 which is down from the figures of 7.213 and 5.983 contained in the Pay Policy Statements for 2012-13 and 2013-14, respectively, which is well within what is regarded as good practice. Ealing’s ratio compares favourably with other Council data collected by Will Hutton for his 2011 Review of Fair Pay in the Public Sector which identified multiples at or around 8.00. The Council does not have a policy towards maintaining or reaching specific pay multiples. It will, however, explain the reasons for changes from year to year, and undertake comparisons within the local government sector and with other sectors. Remuneration of “lowest paid employees”. Lowest paid employees" refers to those employees employed on grades 1, 2 and 3 of the Council's current pay grading structure, other than apprenticeships and traineeships. This includes SCP's 7, 8, 9, 10, 11, 12, 13. 14, 15, 16 and 17 - see attached appendix "2" - "Ealing Council - Pay Policy Statement for the financial year 1st April 2014 to 31st March 2015 - Appendix "2" - Salary Rates from 1st April 2013. The definition for the expression "lowest paid employees" has been adopted because the Council has traditionally treated grades 1, 2 and 3 differently for the purposes of the Ealing Supplement. Employees on those grades receive the additional Ealing Supplement at the financial value of £282 per annum. Prior to 1st April 2013 employees on grades 4 to 18 received the additional Ealing Supplement at a financial value of £141 per annum instead. The Ealing Supplement was consolidated into Chief Officer grades but shown as a separate payment for grades 1 to 18. From 1st April 2013 the Ealing Supplement of £141 per annum was removed from those posts graded 4 and above (including chief officers). Posts currently graded 1, 2 and 3 continue to receive the Ealing Supplement of £282 per annum. A review is to take place in April 2015.

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Low pay For 14/15, the Council’s policy is that no employee is paid less than the LLW. Where an employee’s contractual entitlement is to a rate of pay lower than the London Living Wage then, for 14/15, the Council will pay a discretionary supplement to bring their rate up to the London Living Wage. If, as a result of an increase to LLW during 14/15, an employee’s contractual entitlement falls below the LLW then the temporary discretionary supplement will be paid for the remainder of 14/15 to that employee to ensure they receive an amount equivalent to the LLW. For schools based employees it will be up to each school to decide whether to adopt the LLW. For 14/15, Full Council is recommended to commend to Governing Bodies of Schools that they paying the LLW rate to schools based employees (whether permanent or fixed term) and to agency workers working in Schools. At the meeting on Tuesday 23rd January 2007 Full Council agreed the following motion: “This Council notes that all employees subject to the pay and conditions of Ealing Council are paid at or above the level of the London Living Wage. This Council believes that all members of our community have the right to earn a living wage. As community leaders this Council will work with partners in seeking to deliver a living wage across Ealing” At the meeting on Tuesday 23rd October 2012 Cabinet resolved that Cabinet:

i. “agrees to begin the process of Living Wage accreditation, noting the financial and legal issues set out in sections 3 and 4.

ii. commits to paying the London Living Wage rate or above to all direct employees and agency and temporary staff as defined in Section 2.6, of the report and notes that this has already been achieved.

iii. agrees that the affordability of moving to London Living Wage rates on new contracts as discussed in Section 3 of the report should be considered and reported upon in the Council’s 2013/14 budget process.

Reason for Decisions

To provide an update on the feasibility of adopting the London Living Wage as the minimum wage paid to all Council employees and contractors, and to seek agreement to submit an application for Living Wage accreditation to the Centre for Civil Society Limited subject to resolution of the legal and financial issues set out below.”

Severance payments and re-employment Severance payments The Council’s policy on severance payments applies to all employees including chief officers. It is published on the Council’s website here:

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http://www2.ealing.gov.uk/services/council/committees/agendas_minutes_reports/council/15may2007-19may2008.html

This policy is attached as appendix “3” to this Pay Policy Statement. There are changes to the Local Government Pension Scheme effective from 1st April 2014. As a consequence it may be necessary to review this document – appendix 3 – in light of any changes to the Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2006 and the Local Government Pension Scheme – Discretionary Decision. Payments under this policy to a chief officer are also subject to authorisation by the Chief Officer Panel. At times of reorganisation if a chief officer is redeployed to a lower graded post as suitable alternative employment to avoid a redundancy situation the Council’s arrangements in respect of pay protection for all staff apply. The current arrangements are set out in the attached appendix “4” to this Pay Policy Statement. Chief officers previously employed by other public sector bodies

All staff appointments, including chief officers, are made on merit. Pay and grading associated with each appointment is determined by the policies set out in this statement and is not varied to take account of salaries or other payments made under previous employments. Where chief officers are employed who are also in receipt of a pension under the Local Government Pension Scheme the Council’s policy is to abate pensions for re-employed pensions in all cases except where flexible retirement has been granted. Re-employment The Council has a policy that it will not re engage anyone made redundant within 6 months of his or her termination date, either directly or through an agency or on a consultancy basis. Value for money. The Council’s policy in respect of remuneration for senior appointments to ensure value for money Conclusion The Council’s Pay Policy Statement must be approved by a meeting of the full Council. Any variation to the content of this Pay Policy Statement for the duration of the remainder of the financial year to which it currently applies will have to be submitted to a future meeting of the Council for approval. The Statement will be published and shown on the Council’s website.



CORPORATE RATES FROM 1ST APRIL 2013

Ealing Council

Pay Policy Statement for the financial year 1st April 2014 to 31st March 2015 - Appendix 2.

Salary Rates From 1st April 2013.

New Spinal Salary London Ealing Salary Annual Salary Weekly Hourly Basic Hrly Overtime

Grade Column Exc. LW Weight Supp Inc LW inclusive Salary Rate Rate Rate

1 7 13,590.00 1,779.00 282.00 15,369.00 15,651.00 300.16 8.5759 7.4466 7.5041

1 8 13,992.00 1,779.00 282.00 15,771.00 16,053.00 307.87 8.7962 7.6668 7.7244

1 9 14,385.00 1,779.00 282.00 16,164.00 16,446.00 315.40 9.0115 7.8822 7.9397

1 10 14,673.00 1,779.00 282.00 16,452.00 16,734.00 320.93 9.1693 8.0400 8.0975

1 11 14,868.00 1,779.00 282.00 16,647.00 16,929.00 324.67 9.2762 8.1468 8.2044

2 10 14,673.00 1,779.00 282.00 16,452.00 16,734.00 320.93 9.1693 8.0400 8.0975

2 11 14,868.00 1,779.00 282.00 16,647.00 16,929.00 324.67 9.2762 8.1468 8.2044

2 12 15,183.00 1,779.00 282.00 16,962.00 17,244.00 330.71 9.4488 8.3195 8.3770

2 13 15,588.00 1,779.00 282.00 17,367.00 17,649.00 338.47 9.6707 8.5414 8.5989

3 14 15,879.00 1,779.00 282.00 17,658.00 17,940.00 344.05 9.8301 8.7008 8.7584

3 15 16,206.00 1,779.00 282.00 17,985.00 18,267.00 350.33 10.0093 8.8800 8.9375

3 16 16,599.00 1,779.00 282.00 18,378.00 18,660.00 357.86 10.2247 9.0953 9.1529

3 17 16,989.00 1,779.00 282.00 18,768.00 19,050.00 365.34 10.4384 9.3090 9.3666

4 18 17,325.00 1,779.00 0.00 19,104.00 19,104.00 366.38 10.4679 9.4932 9.5507

4 19 17,979.00 1,779.00 0.00 19,758.00 19,758.00 378.92 10.8263 9.8515 9.9090

4 20 18,627.00 1,779.00 0.00 20,406.00 20,406.00 391.35 11.1814 10.2066 10.2641

4 21 19,308.00 1,779.00 0.00 21,087.00 21,087.00 404.41 11.5545 10.5797 10.6373

5 22 19,809.00 1,779.00 0.00 21,588.00 21,588.00 414.02 11.8290 10.8542 10.9118

5 23 20,391.00 1,779.00 0.00 22,170.00 22,170.00 425.18 12.1479 11.1732 11.2307

5 24 21,054.00 1,779.00 0.00 22,833.00 22,833.00 437.89 12.5112 11.5364 11.5940

5 25 21,732.00 1,779.00 0.00 23,511.00 23,511.00 450.90 12.8827 11.9079 11.9655

6 26 22,431.00 1,779.00 0.00 24,210.00 24,210.00 464.30 13.2658 12.2910 12.3485

6 27 23,178.00 1,779.00 0.00 24,957.00 24,957.00 478.63 13.6751 12.7003 12.7578

6 28 23,931.00 1,779.00 0.00 25,710.00 25,710.00 493.07 14.0877 13.1129 13.1704

7 29 24,885.00 1,779.00 0.00 26,664.00 26,664.00 511.36 14.6104 13.6356 13.6932

7 30 25,719.00 1,779.00 0.00 27,498.00 27,498.00 527.36 15.0674 14.0926 14.1501

7 31 26,532.00 1,779.00 0.00 28,311.00 28,311.00 542.95 15.5129 14.5381 14.5956

8 32 27,309.00 1,779.00 0.00 29,088.00 29,088.00 557.85 15.9386 14.9638 15.0214

8 33 28,119.00 1,779.00 0.00 29,898.00 29,898.00 573.39 16.3825 15.4077 15.4652

8 34 28,914.00 1,779.00 0.00 30,693.00 30,693.00 588.63 16.8181 15.8433 15.9008

9 34 28,914.00 1,779.00 0.00 30,693.00 30,693.00 588.63 16.8181 15.8433 15.9008

9 35 29,517.00 1,779.00 0.00 31,296.00 31,296.00 600.20 17.1485 16.1737 16.2312

9 36 30,300.00 1,779.00 0.00 32,079.00 32,079.00 615.21 17.5775 16.6027 16.6603

10 37 31,155.00 1,779.00 0.00 32,934.00 32,934.00 631.61 18.0460 17.0712 17.1288

10 38 32,067.00 1,779.00 0.00 33,846.00 33,846.00 649.10 18.5458 17.5710 17.6285

10 39 33,108.00 1,779.00 0.00 34,887.00 34,887.00 669.07 19.1162 18.1414 18.1989

10 40 33,993.00 1,779.00 0.00 35,772.00 35,772.00 686.04 19.6011 18.6263 18.6838

11 41 34,890.00 1,779.00 0.00 36,669.00 36,669.00 703.24 20.0926 19.1178 19.1753

11 42 35,772.00 1,779.00 0.00 37,551.00 37,551.00 720.16 20.5759 19.6011 19.6586

11 43 36,672.00 1,779.00 0.00 38,451.00 38,451.00 737.42 21.0690 20.0942 20.1518

12 44 37,572.00 1,779.00 0.00 39,351.00 39,351.00 754.68 21.5622 20.5874 20.6449

12 45 38,409.00 1,779.00 0.00 40,188.00 40,188.00 770.73 22.0208 21.0460 21.1036

12 46 39,345.00 1,779.00 0.00 41,124.00 41,124.00 788.68 22.5337 21.5589 21.6164

13 47 40,248.00 1,779.00 0.00 42,027.00 42,027.00 806.00 23.0285 22.0537 22.1112

13 48 41,145.00 1,779.00 0.00 42,924.00 42,924.00 823.20 23.5200 22.5452 22.5100

13 49 42,024.00 1,779.00 0.00 43,803.00 43,803.00 840.06 24.0016 23.0268 22.5100

14 50 42,927.00 1,779.00 0.00 44,706.00 44,706.00 857.38 24.4964 23.5216 23.5792

14 51 43,827.00 1,779.00 0.00 45,606.00 45,606.00 874.64 24.9896 24.0148 23.8200

14 52 44,733.00 1,779.00 0.00 46,512.00 46,512.00 892.01 25.4860 24.5112 23.8200

15 53 45,654.00 1,779.00 0.00 47,433.00 47,433.00 909.67 25.9907 25.0159 23.8200

15 54 46,608.00 1,779.00 0.00 48,387.00 48,387.00 927.97 26.5134 25.5386 23.8200

CORPORATE RATES FROM 1ST APRIL 2013

New Spinal Salary London Ealing Salary Annual Salary Weekly Hourly Basic Hrly Overtime

Grade Column Exc. LW Weight Supp Inc LW inclusive Salary Rate Rate Rate

15 55 47,586.00 1,779.00 0.00 49,365.00 49,365.00 946.73 27.0493 26.0745 23.8200

15 56 48,555.00 1,779.00 0.00 50,334.00 50,334.00 965.31 27.5803 26.6055 23.8200

16 57 49,518.00 1,779.00 0.00 51,297.00 51,297.00 983.78 28.1079 27.1332 27.1907

16 58 50,478.00 1,779.00 0.00 52,257.00 52,257.00 1,002.19 28.6340 27.6592 27.7167

16 59 51,453.00 1,779.00 0.00 53,232.00 53,232.00 1,020.89 29.1682 28.1934 27.9300

16 60 52,413.00 1,779.00 0.00 54,192.00 54,192.00 1,039.30 29.6942 28.7195 27.9300

17 61 53,376.00 1,779.00 0.00 55,155.00 55,155.00 1,057.77 30.2219 29.2471 27.9300

17 62 54,348.00 1,779.00 0.00 56,127.00 56,127.00 1,076.41 30.7545 29.7797 27.9300

17 63 55,314.00 1,779.00 0.00 57,093.00 57,093.00 1,094.93 31.2838 30.3090 27.9300

17 64 56,274.00 1,779.00 0.00 58,053.00 58,053.00 1,113.35 31.8099 30.8351 27.9300

18 65 57,246.00 1,779.00 0.00 59,025.00 59,025.00 1,131.99 32.3425 31.3677 27.9300

18 66 58,485.00 1,779.00 0.00 60,264.00 60,264.00 1,155.75 33.0214 32.0466 27.9300

18 67 59,745.00 1,779.00 0.00 61,524.00 61,524.00 1,179.91 33.7118 32.7370 27.9300

18 68 61,029.00 1,779.00 0.00 62,808.00 62,808.00 1,204.54 34.4153 33.4405 27.9300

1

Appendix “3”

Ealing Council Pay Policy Statement for the financial year 1st April 2014 to 31st March 2015

Ealing Council

Policy Statement

A. Local Government (Early Termination of Employment) (Discretionary

Compensation) (England and Wales) Regulations 2006 B. Local Government Pension Scheme – Discretionary Decisions

A. Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2006 1. Introduction & Scope The regulations quoted above require each local authority to formulate, publish and keep under review their policies on compensation. This part of the policy statement will apply to all Ealing Council employees eligible for membership of the Local Government Pension Scheme (LGPS) other than schools based staff. 2. Rate of Redundancy Pay The Council will calculate redundancy pay using the Government statutory entitlement table (see Appendix 1) to assess the number of weeks of redundancy pay. The payment will be then calculated using the actual weekly rate of pay for the individual as opposed to the statutory maximum weekly rate. For employees at or below spinal column point 17, a payment based on:

a) the rate at spinal column point 17 or the employee’s actual remuneration whichever is higher; or; b) the maximum allowed by the regulations if lower than the amount in (a).

3. Eligibility Criteria for Compensation

To be eligible for compensation under this policy, employment must be terminated-

2

(i) By reason of redundancy (ii) In the interests of the efficient exercise of the authority’s functions,

or (iii) In the case of a joint appointment, because the other holder of the

appointment has left it An employee who has received additional pension scheme membership under regulation 52 (augmentation) is not entitled to discretionary compensation under the regulations. The maximum payment that can be awarded under the regulations is 104 weeks pay. Any payment authorised includes (and is not in addition to) any entitlement to a redundancy payment.

At its sole discretion, the Council may decide that a payment is conditional upon the employee’s entering into a compromise agreement on the Councils standard terms. 3.1 Exceptional Circumstances

The Council will not normally make any payment of discretionary compensation. At its sole discretion, and subject to the eligibility criteria set out above, it may authorise a payment provided the circumstances are truly exceptional and that a robust business case has been made demonstrating that the proposal is in the Council’s best financial interests. Where an employee is not entitled to a redundancy payment, then any discretionary compensation awarded will not usually exceed 50% of the amount of redundancy payment that they would have received had they been entitled. Where an employee is entitled to a redundancy payment, then any discretionary compensation awarded will not usually exceed 150% of the amount of redundancy payment that they would have received but for the award of discretionary compensation. 4. Augmentation of Membership There is no longer a facility to grant compensatory added years to members accessing their pension benefits. There remains a facility to award additional pension scheme membership under regulation 52 of the LGPS The Council will not award augmentation save in exceptional circumstances (see part B below)

3

In addition, before termination of employment and in circumstances where the employee would otherwise be eligible for consideration for discretionary compensation under 3 above, the Council may agree to award augmentation instead, provided that the cost to the Council of augmentation is no greater than the cost of any discretionary payment which would be permitted by 3 (as the case may be). This discretion can only be exercised prior to the termination of employment, and so long as the employee meets the statutory eligibility criteria.

5. Decision Maker Any decision to award a payment made under this policy will be authorised by:

1. For the Head of Paid Service, Chief Officers and Deputy Chief Officers (as defined in the Local Government and Housing Act 1989), the Chief Officer Panel (to make decisions in accordance with its normal voting arrangements). The power to make an award can only be exercised after consideration of a report prepared for this purpose by the Director of Human Resources and the Chief Finance Officer. In all cases for Chief Officers, the views of the Council’s appointed auditors will be sought in advance of any decision and their reply will be reported to the Chief Officer panel.

2. For officers below Deputy Chief Officer level, the Director of Human Resources in consultation with the Chief Finance Officer and the relevant service Director.

Before reaching a decision, the decision maker must be satisfied that the employee has had a reasonable opportunity to supply written representations and relevant documents. The decision maker must also consider any relevant contractual or statutory provisions. Where consideration is given to exercise this power the decision maker will seek legal advice prior to entering into any commitment on behalf of the Council.

4

Statutory Redundancy Pay Table APPENDIX 1 To calculate the number of weeks redundancy pay, cross reference the person's age and years of service and then multiply that number by the weekly salary (maximum weekly salary is £310 ). E.g. a person with a salary of £200 aged 22 with 4 years of service will be entitled to two weeks salary e.g. a total redundancy of £400. 17* - The table starts at age 17, as it is possible for a 17 year old to have 2 years service. Compulsory school leaving age can be 153/4 or 154/5 where a child is 16 before 1 September. Particular care should be taken when calculating an individual’s redundancy pay when they joined as an employee below the age of 16. 61* - The table stops at age 61 because for employees age 61 and over, the payment remains the same as for age 61. The table has been changed to reflect the Employment Equality (Age Regulations) October 2006. Statutory redundancy pay table

Service (Years)

Age 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

17* 1

18 1 1½

19 1 1½ 2

20 1 1½ 2 2½ -

21 1 1½ 2 2½ 3 -

22 1 1½ 2 2½ 3 3½ -

23 1½ 2 2½ 3 3½ 4 4½ -

24 2 2½ 3 3½ 4 4½ 5 5½ -

25 2 3 3½ 4 4½ 5 5½ 6 6½ -

26 2 3 4 4½ 5 5½ 6 6½ 7 7½ -

27 2 3 4 5 5½ 6 6½ 7 7½ 8 8½ -

28 2 3 4 5 6 6½ 7 7½ 8 8½ 9 9½ -

29 2 3 4 5 6 7 7½ 8 8½ 9 9½ 10 10½ -

30 2 3 4 5 6 7 8 8½ 9 9½ 10 10½ 11 11½ -

31 2 3 4 5 6 7 8 9 9½ 10 10½ 11 11½ 12 12½ -

32 2 3 4 5 6 7 8 9 10 10½ 11 11½ 12 12½ 13 13½ -

33 2 3 4 5 6 7 8 9 10 11 11½ 12 12½ 13 13½ 14 14½ -

34 2 3 4 5 6 7 8 9 10 11 12 12½ 13 13½ 14 14½ 15 15½ -

35 2 3 4 5 6 7 8 9 10 11 12 13 13½ 14 14½ 15 15½ 16 16½

36 2 3 4 5 6 7 8 9 10 11 12 13 14 14½ 15 15½ 16 16½ 17

37 2 3 4 5 6 7 8 9 10 11 12 13 14 15 15½ 16 16½ 17 17½

38 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 16½ 17 17½ 18

39 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 17½ 18 18½

40 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 18½ 19

41 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 19½

42 2½ 3½ 4½ 5½ 6½ 7½ 8½ 9½ 10½ 11½ 12½ 13½ 14½ 15½ 16½ 17½ 18½ 19½ 20½

43 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

44 3 4½ 5½ 6½ 7½ 8½ 9½ 10½ 11½ 12½ 13½ 14½ 15½ 16½ 17½ 18½ 19½ 20½ 21½

45 3 4½ 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

46 3 4½ 6 7½ 8½ 9½ 10½ 11½ 12½ 13½ 14½ 15½ 16½ 17½ 18½ 19½ 20½ 21½ 22½

47 3 4½ 6 7½ 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

48 3 4½ 6 7½ 9 10½ 11½ 12½ 13½ 14½ 15½ 16½ 17½ 18½ 19½ 20½ 21½ 22½ 23½

49 3 4½ 6 7½ 9 10½ 12 13 14 15 16 17 18 19 20 21 22 23 24

50 3 4½ 6 7½ 9 10½ 12 13½ 14½ 15½ 16½ 17½ 18½ 19½ 20½ 21½ 22½ 23½ 24½

51 3 4½ 6 7½ 9 10½ 12 13½ 15 16 17 18 19 20 21 22 23 24 25

52 3 4½ 6 7½ 9 10½ 12 13½ 15 16½ 17½ 18½ 19½ 20½ 21½ 22½ 23½ 24½ 25½

53 3 4½ 6 7½ 9 10½ 12 13½ 15 16½ 18 19 20 21 22 23 24 25 26

54 3 4½ 6 7½ 9 10½ 12 13½ 15 16½ 18 19½ 20½ 21½ 22½ 23½ 24½ 25½ 26½

55 3 4½ 6 7½ 9 10½ 12 13½ 15 16½ 18 19½ 21 22 23 24 25 26 27

56 3 4½ 6 7½ 9 10½ 12 13½ 15 16½ 18 19½ 21 22½ 23½ 24½ 25½ 26½ 27½

57 3 4½ 6 7½ 9 10½ 12 13½ 15 16½ 18 19½ 21 22½ 24 25 26 27 28

58 3 4½ 6 7½ 9 10½ 12 13½ 15 16½ 18 19½ 21 22½ 24 25½ 26½ 27½ 28½

5

59 3 4½ 6 7½ 9 10½ 12 13½ 15 16½ 18 19½ 21 22½ 24 25½ 27 28 29

60 3 4½ 6 7½ 9 10½ 12 13½ 15 16½ 18 19½ 21 22½ 24 25½ 27 28½ 29½

61+ 3 4½ 6 7½ 9 10½ 12 13½ 15 16½ 18 19½ 21 22½ 24 25½ 27 28½ 30

B. Local Government Pension Scheme – Discretionary Payments 1. Introduction and Scope This part of the policy statement will apply to all Ealing Council employees with Local Government Pension Scheme membership, other than schools based staff. The Local Government Pension Scheme Regulations provide for various discretionary powers, which Ealing Council, as an administering and employing authority, can decide how to apply. 2. Eligibility Criteria At the time of any decision made under this part of the policy statement, the decision maker must be satisfied that the following criteria are met:

That the employee meets the minimum age and service criteria within the LGPS Regulations as in force at that time

That a robust business case, demonstrating that the proposal is in the Council’s best business and financial interests has been made

3. Early Access to Pension Benefits

Redundancy/Efficiency

If an employee who is aged 50 (from 1st April 2010 substitute age 55 for age 50) or more retires from employment and the reason for retirement is redundancy, the employee is entitled to a pension and retirement grant which are payable immediately (unless the employee waives this in accordance with regulation 15 of the Local Government (Compensation for Redundancy) Regulations 1994 about compensation due because regulation 9 of those Regulations applies to the retirement). For these purposes "redundancy" includes retirement in the interests of efficiency, or because the member held a joint appointment which has been ended because the other holder has left it. In these circumstances the pension and retirement grant are paid without reduction.

Ill Health

Where an employee leaves employment by reason of being permanently incapable of discharging efficiently the duties of their employment or any other comparable employment with Ealing because of ill-health or infirmity of mind or body, they are entitled to an ill-health pension and grant. The pension and grant

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are payable immediately. In these circumstances the pension and retirement grant are paid in accordance with regulation 28.

Other Early Leavers

The regulations (regulation 31) also provide for a current pensionable employee aged 50 (from 1st April 2010 substitute age 55 for age 50) and over with at least three months membership of the Local Government Pension Scheme who wishes to leave employment the opportunity to apply to their employer for voluntary early retirement and for the immediate payment of their pension benefits. It is at the discretion of the employer to decide whether or not to give consent to the retirement and the early release of pension benefits. If the request for early payment of the benefits is not granted the members benefits would be deferred on leaving and the earliest payment date would be the members 60th birthday. Once the employee reaches age 60 the consent of the employer is not required for the benefits to be paid.

Where the employee is permitted to retire early and agreement to the immediate payment of benefits on leaving is received under the Council’s discretionary powers the resulting cost to the authority would be dependant on the overall age and membership of the member as detailed below:

Where an employee joins the Local Government Pension Scheme after 30th September 2006 their normal retirement age is 65 therefore their pension benefits will always be subject to an early payment reduction. In these cases the total cost of the early payment of benefits would be covered by the actuarial reduction suffered by the employee and there would be no cost to the Council.

Where the employee’s combined years of service in the scheme and age (in whole years only) total 85 or more at the date of leaving the benefit payable would be paid in full and not subject to any early payment reduction. In these cases the total cost of paying the pension entitlement early would fall on the Council. All pension scheme members who joined before 1st October 2006 have some protection under the rule of 85. Those who wish to retire when they have satisfied the rule of 85 will have no reduction to their pension benefits if they reach the age of 60 by March 2016.

An active member prior 1st October 2006 who will be age 60 after 31 March 2016, but before 1 April 2020 and can satisfy the 85 year rule (Where the employee’s combined whole years of service in the scheme and age in whole years only total 85 or over at the date when their employment ends) before 1 April 2020 will have a tapered reduction to benefits earned from 1 April 2008 instead of the full reduction.

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For all other active members who were born after 31 March 1960 and who joined the scheme prior to 1 October 2006 the 85 year rule applies to all service up to 31 March 2008 with a full reduction to later service.

The amount of reduction to the pension and lump sum is determined by an actuarial calculation based on a formula determined by the Government Actuary’s Department. Where agreement to immediate payment of the member’s benefits is approved the Council also has the discretion to waive the potential actuarial reduction. In all but exceptional cases this discretion will not be exercised Early Payment of Deferred Benefits on Compassionate Grounds Pre 1st April 1998 pension scheme leavers Prior to the regulation changes in 1998 the employer had the discretion to allow early payment of benefits on compassionate grounds, in all cases if the deferred member left prior to 1st April 1998 and the release of benefits is agreed the benefits are paid on an “unreduced “basis. Post 31st March 1998 pension scheme leavers For members who left the pension scheme after the 31st March 1998 the LGPS allows the employer who agrees to make premature payment upon compassionate grounds, to be paid actuarially reduced if applicable. In these cases the following criteria will be taken into account in determining the entitlement and value of the payment.

(a) Full Payment of the Accrued Preserved benefits where:

i. The former employee is not otherwise eligible to receive their accrued LGPS benefits, and

ii. The former employee is now prevented from following any employment as a consequence of being able to personally deliver full-time home care to a dependant, and

iii. The Council’s Medical Advisor has confirmed both a current need for full-time care and that there is no reasonable prospects of the need materially diminishing before the employee’s 65th birthday

iv. There is no reasonable prospect that the required level of home care can be provided other than by the former employee and before that employee obtains 65 years, or

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(b) Payment of Accrued Preserved Benefits on actuarial reduced grounds

i. The employee left LGPS employment on or after 31st March 1998 and apart from compassionate considerations, the member’s benefits would, if paid still be actuarially reduced, and

ii. The former employee is not otherwise eligible to receive their accrued LGPS benefits, and

iii. The former employee is now prevented from following any employment as a consequence of being able to personally deliver full-time home care to a dependant, and

iv. The Council’s Medical Advisor has confirmed the need for full time home care for at least the next 5 years, and

v. There is no reasonable prospect that the necessary level of care can be provided other than by the former employee for the next 5 years.

For the purposes of items a and b above the assumptions are as follows:

“Dependant “means the spouse, partner, offspring or parent of the former member or any other person that Ealing Council may accept of similar status in this context.

“Full time” means usually for at least 35 hours per week excluding weekends

“ Home care” means the relevant care is provided in the former employee’s or dependant’s home

If discretion to release benefits is exercised, payment of the benefit will be effected from the date of the member’s application.

Early Payment of Deferred Benefits for members leaving employment since 31st March 1998 A request from a former member aged between 50 (from 1st April 2010 substitute age 55 for age 50) and 59 for the early payment of their deferred benefits other than on the compassionate grounds or by the reason of permanent ill health, will only be accepted where there is no cost or other financial disadvantage to the Council If discretion to release benefits is exercised, payment of the benefit will be effected from the date of the member’s application. 4. Augmentation (Reg 52) The Council has discretion to augment scheme membership. The discretion to increase scheme membership under this regulation can be used at any time during an active member’s employment but is not permissible following a

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member’s termination of employment. The amount of augmented membership must not exceed –

10 years (incl additional membership in respect of different employments)

or

the period by which the member’s total membership falls short of the total membership the member will have if they continue as an active member until age 65

whichever is the shortest

Augmentation will not be considered by the Council save in the following exceptional circumstances:

As a measure to recruit/retain key staff where a robust business case demonstrates that it would be beneficial to the organization

On loss of service following a TUPE transfer

As described in paragraph 4 of Section A of this policy.

Decision Maker Any decision to award a payment made under this policy will be authorised by:

(a) For the Head of Paid Service, Chief Officers and Deputy Chief Officers (as defined in the Local Government and Housing Act 1989), the Chief Officer Panel (to make decisions in accordance with its normal voting arrangements). The power to make an award can only be exercised after consideration of a report prepared for this purpose by the Director of Human Resources and the Chief Finance Officer.

In all cases for Chief Officers, the views of the Council’s appointed auditors will be sought in advance of any decision and their reply will be reported to the Chief Officer panel.

(b) For officers below Deputy Chief Officer level, the Director of Human Resources in consultation with the Chief Finance Officer and the relevant service Director.

Before reaching a decision, the decision maker must be satisfied that the employee has had a reasonable opportunity to supply written representations and relevant documents. The decision maker must also consider any relevant contractual or statutory provisions. Where consideration is given to exercise this

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power the decision maker will seek legal advice prior to entering into any commitment on behalf of the Council. 5. Other Discretions Ealing Council will apply its discretion in relation to other areas as follows: Flexible Retirement (Reg 35) The Council will consider applications for flexible retirement on an individual basis taking account of all relevant considerations including the likely costs and benefits. Actuarial reductions will be made to pensions in line with the relevant regulation. Applications will be made in accordance with the process established for this purpose. Shared Cost AVC (Reg 67) The Council does not provide a shared cost additional voluntary contribution scheme Rejoining Scheme after Opting Out More than Once (Reg 7(9)) The Council will permit a member who has opted out more than once to rejoin the scheme except where the member is being considered for redundancy, ill health or other early retirement Reduction in Pay Certificates (Reg 23 (4)) The Council will automatically issue certificates of protection in all relevant cases (e.g in cases where the employer permanently reduces, freezes or restricts increases on pay) Abating Pensions for Re-employed Pensioners (Reg 109) The Council will continue to abate pensions in all cases*, on the basis of the 1995 LGPS regulations. * Except those employees who are granted flexible retirement Selection of Final pay period for Deceased Members (Reg 22 (7)) The Council will take appropriate action to maximize benefits

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Payment of Death Grants (Reg 38) The member’s nominated beneficiary shall in all but exceptional cases be the recipient of the death grant Child Continuing Education (Reg 44(3)) The Council will not regard a break of less than 12 complete months as a break in the period of education nor training Split of Children’s Pension (Reg 47) Payment to be made in accordance with the LGPS regulations. Were there are more than 2 eligible children payment to be made to the 2 eldest beneficiaries. As a beneficiary ceases to be entitled to payment, pension entitlement to revert to next eligible child, to maximize the period of payment. Payment to be made to an account set up for the sole benefit of the child. Commutation of Small Pensions (Reg 49) Small pensions to be commuted in all but exceptional cases, subject to any limits specified in the regulations and in accordance with HMRC restrictions Commutation: Exceptional Ill Health (Reg 50) The Council will respond sensitively and positively to any wishes of an employee who meets the requirements of this regulation and wishes to receive a lump sum payment in accordance with its provisions. Where an election cannot be made, commutation will be made if it is likely to be to the members overall advantage Medical Requirement for Added Years Purchase (Reg 55) The Council will reserve its right to require, when it deems necessary, an employee to undergo a medical examination (at the employees expense) to establish that the employee is in good health Elections to Pay AVC (Reg 60) The Council will require the minimum rate of AVCs to be at least the specified minimum set out in the regulations Interest from other Employers (Reg 82) The Council will require interest to be charged on amounts overdue in accordance with the regulations

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Administration Charges for provision of Statements (Reg 86) The Council will make charges in circumstances permitted by the relevant regulation 6. Decision Maker Discretionary pension decisions will be authorised by: a. For the Head of Paid Service, Chief Officers and Deputy Chief Officers (as defined in the Local Government and Housing Act 1989), the Chief Officer Panel (to make decisions in accordance with its normal voting arrangements). The power to make an award can only be exercised after consideration of a report prepared for this purpose by the Director of Human Resources and the Chief Finance Officer.

In all cases for Chief Officers, the views of the Council’s appointed auditors will be sought in advance of any decision and their reply will be reported to the Chief Officer panel.

b. For officers below Chief Officers level, the Director of Human Resources in consultation with the Chief Finance Officer and the relevant service Director. Before reaching a decision, the decision maker must be satisfied that the employee has had a reasonable opportunity to supply written representations and relevant documents. The decision maker must also consider any relevant contractual or statutory provisions.

Ealing Council.

Pay Policy Statement for the financial year 1st April 2014 to 31st March 2015.

Appendix “4” – Pay Protection.

Pay protection If an employee is assimilated or redeployed to a new role (including medical redeployment) that is a lower grade than their most recent substantive grade, the Council will give pay protection for a period of two years as follows:

a) Up to a maximum of two grades for the first year; and b) For the duration of the second year, pay protection will be reduced to pay protection of the salary difference between the new role and the next grade up. i.e. a one grade difference.

After two years pay protection, the employee would revert to the appropriate grade and increment point of the new role. The tables below give examples of how this would work where the difference between the old and new grade is one grade, two grades and more than two grades.

One grade

difference

Grade of

Substantive role

Grade of new

redeployed role

Grade paid to

employee

Year 1 10 9 10

Year 2 N/A 9 10

Year 3 onwards N/A 9 9

Two grade

difference

Grade of

Substantive role

Grade of new

redeployed role

Grade paid to

employee

Year 1 10 8 10

Year 2 N/A 8 9

Year 3 onwards N/A 8 8

More than two grade

difference

Grade of

Substantive role

Grade of new

redeployed role

Grade paid to

employee

Year 1 onwards 10 7 9

Year 2 N/A 7 8

Year 3 N/A 7 7

If however, during the pay protection period, the employee voluntarily moves to a new post, that is at the same or a lower grade than the post to which they have been re-deployed, pay protection will cease.

For the avoidance of doubt, temporary promotions, acting up arrangements, honoraria, secondments are not subject to any pay protection. Where an employee who is on a fixed term contract is entitled to pay protection as a result of this clause, then pay protection will not last beyond the date on which their fixed term contract would have come to an end. Pay protection will not apply where an employee has been demoted as a sanction arising from a disciplinary or appeals process. Where the possibility exists, the manager and the employee will share responsibility to attempt to develop the lower graded post by adding duties of a similar nature and level to the original grade and commensurate with the skills and abilities of the redeployed employee.

Documents

LONDON BOROUGH OF EALING