Budget Development Final Proposals 2015/16 Councillor Mohammed Pervez, Leader of the Council 4 February 2015
The purpose of today is… • To update on proposals for achieving our budget for 2015/16 • To outline the responses received through our consultation • To set out the next steps for our budget
Budget challenges – a reminder The national picture
The story so far… 2013/14 2014/15 2012/13 2011/12 Cumulative £97m Cumulative £56m Cumulative £77m £36m £20m +£21m £36m £20m £21m +£20m +£20m £36m £36m 0 50 100 150 200 250 300 £97m annual c£266m cumulative
Grant reduction City Council Reduction in Revenue Support Grant 2013/14-2020/21 120 Reveunue Support Grant (£m) 100 80 60 40 20 - 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 Financial Year Source: DCLG
Budget breakdown (£30.9m) - December 2014 Reductions in funding - £21.2m (RSG loss) • (plus £5.9m other income) - £15.3m Cost pressures - £5.1m e.g. in year changes • in grants, recycling contamination , Capital financing charges Growth - £1.7m legal req. social care, DHN, • Demographic - £4.3m looked after children, • learning disabilities. Contractual inflation and Employee • Adjustments - £4.5m e.g. national pay award
Budget breakdown (£26.9m) - February 2015 Reduction in gap from £30.9m to £26.9m achieved through: Reduction in change £2.172m management budget Increased council tax £1.35m income Other minor changes £0.478m (including RSG adjustments, Business rate inflation, etc) plus Total: £4m
Budget breakdown (£26.9m) Budget pressures - £2.9m, including • - Capital financing costs £2.5m - Recycling contamination £0.3m RSG cuts of £20.4m • Council tax growth - (£2m) • Other income – BCF (£3m) • and other grants (£1.9m) • NET Effect £13.5m Growth - £1.7m • For example: - District Heat Network £0.9m - Adult Social Care, deprivation of liberties £0.6m Demographic - £4.3m • - Looked after children, learning disabilities. Contractual inflation and Employee Adjustments - £4.5m •
Budget overview • Budget gap £26.9m for 2015/16 • Grant reduced by £20.4m • Major increase in demand • Challenging budget
Consultation feedback Extensive engagement and consultation undertaken. My City , My Say – c1,000 questionnaires completed Engagement with • – Focus groups – Businesses – Voluntary sector – Young and older people – Faith leaders – Overview and Scrutiny – Elected members Budget consultation – 91 responses, 7 petitions received • Extensive media coverage – 107 articles/ items of coverage • Web and social media awareness •
Main consultation themes This is what people told us were their main issues: • School crossing patrols • Child and adolescent Mental Health Service • Meals on Wheels • Blue Badge car parking • Public toilets
This is how we have listened and responded : • School crossing patrols – Budget saving to be taken out – Each site subject to a risk assessment – Only where appropriate, alternative provision will be put in place • Child and Adolescent Mental Health Service – Budget saving to be taken out – Will be reviewing the service as a wider partnership service review • Public toilets – Service to remain as is and will continue to explore community provision • Meals on Wheels – Service to remain the same – internal review to be completed Total cost = £0.453m
Capital investment 2015/16 – 19/20 Total programme of £288.16m over the 5 year period. Includes:- • Investment in District Heat Network £19.75m • City centre connectivity £20m • University Quarter £9.4m • Haywood academy £1m • Adult social care service improvements - £3.6m • Investing in primary schools £21.7m
Council tax will not increase • Invest in the city • Protect statutory services • Innovation and transformation
A Great Working City • Continuing to invest in the economy • Top 5 for per capita growth nationally – 21.4% compared to 10.2% nationally • Number of jobs has increased quickly – over 3,000 new jobs in two years • The City Deal - £30.9 million unlocking £113m of public and private sector investment • Modern competitive city – Smithfield and new public realm
Looking after our people • 390 Extra Care apartments across the city – Chell Heath, Abbey Hulton, Blurton • £1 house scheme • Warm homes – top five in councils in the UK • £280m in building schools for the future • The number of NEETS in Stoke-on-Trent is lower than the West Midlands average • £5m Government investment in Co-operative Working • Primary results improving – narrowing the gap • The number of new members registered in libraries is up by 30%
Despite the Cuts …. • People £107m – Adult Social Care and Protection – Vulnerable Children & Corporate Parenting • Place £40m – Environment Waste Operations – Roads & Engineering • Effective City Council £29m – Revenues & Benefits Service – Support Services – Civic and Corporate • Public Health & Protection £21m
We have frozen council tax for the third year running and despite huge government cuts, we continue to listen to our residents to provide essential services, remain focused on jobs and growth and deliver balanced budgets year on year.
Next steps Proposals now go to: Cabinet on 12 February • City Council on 26 February • where final decisions will be taken.
Acknowledgements I would like to thank… Staff Members Residents Partners Businesses Voluntary Sector Community Groups For their support and involvement
Any Questions? Please contact the Press Office on 01782 232671
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