New Year, New FinanceBusiness Briefing

Welcome to the

New Year New Finance Agenda

7.30am – 8.30am Registration

8.30am – 8.35am Rob Tinlin, Chief Executive

8.35am – 8.50am Joe Chesterton, Head of Finance

8.50am – 9.05am Councillor Ron Woodley, Leader 9.05am – 9.30am Q & A Session

9.30am Networking and Marketplace with funders

Cllr Ron Woodley Rob Tinlin Joe ChestertonLeader of the Council Chief Executive Head of Finance & Resources

The Budget for 2016-17Business Sector Consultation

19th January 2016

Financial Overview

Joe ChestertonHead of Finance & Resources

What it meant for us• 2014-15 was the final year of the original four year programme to reduce public spending.• CSR 2014 provided a one year Government public funding programme to cover 2015-16• Including our own budget gaps the impact has been:

2011-12 2012-13 2013-14 2014-15 2015-16 Total

£15.5m £11.9m £10.4m £7.3m £10.5m £55.6m

Local Government Settlement December 2015

• Announced in draft on 17 December • Option for a social care precept

– A separate 2% = £1.3m for Southend• Care Act budget incorporated into revenue support grant• BUT Revenue Support Grant cut

= £1.2m less Government support for 2016-17• Grant reductions from last CSR continue as expected• Southend’s Revenue Support Grant is down by 28% from

2015/16 = £8.43m• Council Tax Freeze Grants finished• Referendum limit remains at 2%

Other factors to contend with• Spending Review 2015 – on-going Austerity for Local

Government• Treasury assumption that Councils will raise council tax by

1.99% and apply the 2% social care precept• Introduction of the Better Care Fund

– NHS BCF budgets rising with inflation plus extra £1.25bn by 2019/20. Phased and tapered from 2017/18

• Care Act– Further implementation deferred but existing funds

included in RSG• The Universal Credit introduction over the next few years

will have implications

• Public sector pay increases will remain low• 100% business rate retention by 2020

– But with consequent added responsibilities• Abolition of revenue support grant by 2020• Review and phased reduction in New Homes Bonus• Public Health budget still ring-fenced but further 3.9% cuts

p.a. up to 2019/20• 1%p.a. reduction in HRA rents = for SBC £9m less income

over next 4 years• Anticipated forced sale (or loss of equivalent value) of

highest value HRA housing stock

Other factors to contend with-Cont.

Agreed at Council – February 2015:

In context this is for the next three years;£43,000 per working day or £210,000 per working week!!!

The Next 3 Years-as laid out in the MTFS

£’m2016-17 13.7

2017-18 10.3

2018-19 8.4

Total 32.4

Taking into account the Autumn Statement and local budget pressures our future savings look like this:

These figures may change depending upon the final grant settlement, future social care precepts, consultations on new homes bonus, and

Government decisions on Better Care Fund grants

The Next 3 Years-as we know it

£’m

2017/18 to 2019/20 Between £26m & £28m

Summary of Budget Proposals 2016/17

• Adult Social Care Precept 2% for Adult Social Care spend (+45p pw)

• Council Tax increase 1.99% (+44p pw)• No use of earmarked reserves to fund core budget• Fees & Charges - only proposed increase central seafront car

parking • A net budget of £123.2 million• Savings £10.5 million (includes £0.4m for ring fenced Public

Health)• Pressures £1.355 million• Fixed term investment of £0.275 million • Capital investment (new schemes and additions)

£44.7m General Fund and £8m Housing Revenue Account• HRA rent decrease 1%

Where the savings fallThe budget reductions proposed for 2016-17 are:

£mCorporate Services 1.408People 5.311Place 3.367Public Health 0.381

Total 10.467

Investments in servicesRevenue

Department Activity £1,355,000

People Demographic pressures 500,000People Transition to adulthood 400,000People Deprivation of Liberty extra costs 100,000

Place Income Adjustments 100,000Corporate Services Wide Area Network 80,000Corporate Services Benefit Subsidy 90,000

Corporate Services Extra Civic Centre Cleaning 85,000

PLUS fixed term investment in a feasibility study for the Pier, economic development and 11+ support during school holidays. In addition, social services invest to save projects funded by Adult Social Care precept.

Investments in services Capital 2016-17 to 2019-20

• Corporate ICT - £1.75m• ICT for Place and Public Health - £1.01m• Commercial property investments - £6m• Queensway project - £1.5m• Cemeteries & Crematorium - £550k• Library car park reprovision - £5.2m• Civic Centre East redevelopment - £5.7m• Secondary Schools - £8m• Roads, footways and car parks - £12.48m• Property, Pier and Cliffs upkeep - £3.58m

• Palace Theatre, Garons Centre & Southchurch Park - £865k

• Energy efficiency projects - £1.71m• New Museum technical preparations -

£1.5m• Play equipment & gates - £280k• Three Shells Lagoon - £0.6m• Belton Hills steps - £1.5m• Central Museum lift - £250k• “Sparkle” clean town project - £30k

Housing Revenue Account (£8m)Housing properties – decent homes standard, energy efficiency etc

New houses

General Fund (£44.7m)

Next steps• 19 January

– Cabinet will debate the budget – Business and Voluntary Sector consultation

• 25, 26 & 28 January – Scrutiny Committees

• 11 February– Cabinet will consider the budget again following input from the

Scrutiny Committees and business and voluntary Sector consultation

• 25 February– Council will formally set the Council Tax and the Budget

Southend-On-Sea: The Challenges Ahead

Ron WoodleyLeader of Southend-on-Sea Borough

CouncilJanuary - 2016

Our Town• 177,900 residents.• 8th most densely populated borough outside London• 8 miles by 2 miles• 6.5 million visitors every year• 7 miles of award-winning beaches• Over 80 parks and green spaces• 14 conservation areas

Our Current & Future Challenges• Communities

– Currently 1 in 4 children are living in poverty (7,205 children) and a higher than average number of older people are living in poverty (Southend 19.7% - U.K 18.1%).

– Latest figures show a life expectancy gap across the borough of 10.1 years. – 500 food parcels and 600 food plates delivered every week to the homeless and the vulnerable.– Health issues, such as Obesity (17.9% of Children in year 6), Smoking (21.8% of adults) and drug/alcohol

misuse (Highest rate of benefit claimants due to alcoholism in the East of England).– Continued Health and Social Care Integration e.g. Better Care Fund.– Safe and cohesive communities. – Increasing population (9.3% increase by 2025).– Ageing population – currently 33,600 residents aged 65+ rising to 46,200 by 2030. Increase in age-related

conditions.– Projected % of Council spending on adult social care and children’s is projected to increase significantly.

This creates considerable challenge of either reducing spend on other parts of the Council or not being able to meet the needs of children and adults.

• Housing– 1700+ currently on the home seekers register.– Need to build 7000 more affordable homes by 2030 but with minimal land availability. – Council house rents.– Better Queensway (Town Centre Regeneration – SCAAP).

• Education and Skills– Currently unemployment levels above the national average (but at the lowest rate in Southend for

at least five years).– Levels of education and qualifications amongst adult population below regional and national

figures (NVQ L2 and above, Southend – 66.9%, East of England – 72.1%, GB – 73.3%).

– Primary School Places and driving improvements for our secondary schools.– Apprenticeships and providing training and qualifications for all that match employers needs.– Maximise the benefits of the Better Start Programme.

• Economic Regeneration and infrastructure– Keeping the town open for businesses.– How do we continue to invest in strategic infrastructure during sustained period of austerity.– Support continued success of Southend Airport and tourism economy through investment

and promotion.– Digital infrastructure – future cities, high speed broadband, etc.– Regeneration/transport capital funds are ‘competitive’ process – e.g. Local Growth Fund. – Victoria Avenue, Seaway Development, Airport Business Park.– Cliff slips and surface water drainage.– Cleaner/Greener Southend.

Our Current & Future Challenges cont…

Our Choices: Draft Budget• The council needs to find departmental service savings of £10.467m from April 2016

plus £1.3m to deal with service ‘pressures’ which mainly reflect the costs of caring for an ageing population.

• Council Tax up 1.99% - equates to 44p per week for a Band D property.• Social Care precept of 2% - equates to 45p per week for a Band D property (Raises £1.3m

but £1.1m adult social care grant deleted plus a need to find an additional £1m to deal with the increased demand for social care services).

• Further reduction in staff numbers – 59.6 Full time equivalents.• Potential closure of the Southend Marine Activity Centre. • Cease production of Outlook, the council’s resident magazine – The Council will look for

other forms of external communication to keep residents informed about services – Council Website, Social Media, local press inc. Evening Echo

• £925,000 saving through new Waste Collection Contract.• Ground maintenance service brought back in-house saving £294,000.• £300,000 savings through leisure management contract.• £2m savings through adult social care system review.

Our Choices: Draft Budget – Investment over next 4 years• Invest to Save – LED street light replacement programme (net saving of £440,000).• Continued investment in culture/leisure provision and green spaces inc: Three Shells Lagoon, Palace Theatre, Southchurch Park & Central Museum.• Continued capital investment in Secondary Schools (£8m in addition to the £10m

already identified).• Capital investment in the Pier, Cliffs upkeep and Belton Hill steps. • Continued capital investment in highways and footpaths (£4m over 4 years in

addition to the £2.8m already identified).• Capital funding to continue the completion of the Decent Homes programme in

2019/20 (£8m).• Investing in energy efficiency/green projects inc: Southend Energy Company, installing

solar panels on some council owned buildings and a range of school initiatives (£1.71m).• Overall a balanced budget that protects frontline services and ensures that we

remain forward thinking, ambitious and financially stable in future years.

Our Future Together• We will do our best to continue to deliver a range of high

quality services but we need to be realistic considering the strategic and financial pressures outlined.

• What can the community do for itself and how do we work in partnership to ensure the future of our town and its people?

• What type of Council do we want/need to be by 2020?• Bridging the Gap – some ideas?• What next?

Thank you for listening.

Any Questions?

Networking and Marketplace

Funding Organisations and High Street Banks

Thanks for Attending Have a Safe Journey

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