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Sustainable Income Strategies to Maintain Public Services
Cliff Dalton,
Head of Local Government, CIPFA
16th March 2016 1
cipfa.org
For today:
What are authorities doing to be more commercial?
Grant projections shaping council policy?
Options to reduce costs / deliver services more efficiently?
CIPFA ‘Implementing a Spending Freeze’
CIPFA policy position on commercialisation
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Tax Free Childcare
New burdens
What are the risks; what are your plans?
Does your budget balance?
How sustainable is it?
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Is this a valid strategy?
Gatenby-Sanderson…
Word ‘Commercialism’ increase of 100% in 2015
‘Economic’ up 40% and ‘Commissioning’ up 30%
In 2013 60% of councils owned a trading company (nearer 90% today)
‘Profit, no longer a dirty word’
- Sandra Dinnen, Chief Executive, South Norfolk Council
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Sales, Fees & Charges
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Total England Sales, Fees and Charges
£11.93bn
£11.69bn
£11.07bn
£11.31bn
£11.77bn
£10.60bn
£10.80bn
£11.00bn
£11.20bn
£11.40bn
£11.60bn
£11.80bn
£12.00bn
2009-10 2010-11 2011-12 2012-13 2013-14
Total Sales, Fees & Charges – England: Source CIPFA Statistics
+6%
2 Years
Authorities are doing more
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Current top performers (RO data)
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Lowest income per head in Cultural,
Environmental and Planning
Taken from the CIPFA Income Generation Comparative Profiles: www.cipfa.org/comparativeprofiles
Where are you now?
Highest income per head in
Housing
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Statutory, Non-statutory and the grey bit in middle (income options?)
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A good place to start?
85 pages regulatory powers and income suggestions/ opportunities
www.cipfa.org/publications
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Remember: Commercialism is more than just a word
Business acumen (competition, market forces, price sensitivity/ elastic, risk analysis)
Business case – financial projections
Organisation financials - monitoring, reporting & suitable infrastructure to support
Clash of policy position? (vulnerable groups)
Scope to charge (national initiatives, discretionary services - cost recovery)
Demand management (pricing to reduce service demand/ increase activity?)
Cash or plastic / In advance or arears
What is your risk appetite?11
cipfa.org
Alternative Service Delivery options - the potential?
In House
Partnership Working and Public Entity Joint Ventures
Social Enterprise Charities that trade
Mutuals
Community Interest Companies
Commercial Organisations Outsourcing
Commercial Joint Ventures
ASDV - new CIPFA network from April 2016: [email protected]
cipfa.org
CIPFA – supporting your organisation
Round table (10th March )
Publication on managing a spending freeze (1st April)
CIPFA Local Government Conference (May)
Financial standing advisory support
Joint work with LGA & SOLACE
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CIPFA – supporting your staff
CIPFA Qualification New from 2015
Leadership and commercial
Creating experts
Transformation / Devolution
Finance business partnering Fundamentals of Business Partnering
Technical and Professional Skills
Transformational Change
Developing Commercial Accumen
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cipfa.org
CIPFA policy position statements
Central government must support entrepreneurial behaviour, options? Tax holidays for council owned trading companies
Earn back powers to stimulate markets
Confidence that income can be retained with no loss of grant
But, so must the sector Training in commercial Skills
Skills development around investment opportunities and risk
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Sustainable Income Strategies to Maintain Public Services
Cliff Dalton,
Head of Local Government, CIPFA
16th March 2016 17
