Budget proposals 2017/18 Theo Dennison Cabinet Member for Finance - - PowerPoint PPT Presentation

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Budget proposals 2017/18 Theo Dennison Cabinet Member for Finance - - PowerPoint PPT Presentation

Feb 20, 2023 333 likes •537 views

Budget proposals 2017/18 Theo Dennison Cabinet Member for Finance & Citizen Engagement The budget setting timetable Target is set in Financial Strategy Internal GENERATION OF IDEAS Managers and members work out how to (April

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SLIDE 1

Budget proposals 2017/18

Theo Dennison Cabinet Member for Finance & Citizen Engagement

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SLIDE 2

The budget setting timetable

GENERATION OF IDEAS

(April – September)

  • Target is set in Financial Strategy
  • Managers and members work out how to

achieve them

Internal

ASSESSMENT OF PROPOSALS

(September - October)

Cabinet Awaydays

  • Assessment of proposals, prioritisation,

timetabling

Area Forum, Business & Scrutiny

CONSULTATIONS

(November - January)

  • Input from critical friends
  • Budget savings
  • Departmental cash limits
  • Rents, service charges, fees, Council T

ax

DECISION

(February)

Borough Council

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SLIDE 3

Savings requirement 2017/18

2017/18 (£m) Savings requirement 24.6 Prior year approved savings

  • 11.4

Total savings requirement 13.2 Savings approved to date (Tranche 1)

  • 7.3

Savings package (Tranche 2 and 3)

  • 6.7

Savings gap

  • 0.8
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SLIDE 4

Financial changes

  • 1. Further revisions to the council tax base - £200k
  • 2. Combine New Initiatives & Improvement funds - £2,000k
  • 3. Fees & Charges - £390k
  • 4. Community Infrastructure Levy - £135k (Admin pot)
  • 5. Housing Revenue Account contribution - £200k
  • 6. Retendering of the Corporate Services Contract (Council

tax, Business rates, Housing benefits, Payroll, Benefit & social care assessments, Mail/Print rooms) - £800k*

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SLIDE 5

Cuts with significant service implications

  • 1. Overhaul of enforcement services - £671k
  • 2. Hounslow Highways
  • Whole Street Environment Fund - £250k
  • Street cleansing surveys - £100k
  • Negotiated cost reductions - £650k
  • 3. Increased online customer servicing - £500k
  • 4. Review of Council Youth Services - £650k
  • 5. Reduction in Community Partnership Unit budget - £244k
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SLIDE 6

Other service budget cuts

  • 1. Retendering of public health contracts - £200k
  • 2. Combine Leisure maintenance budgets - £292k
  • 3. Facilities management budgets - £150k*
  • 4. Trading Standards - £84k
  • 5. Animal Control - £28k
  • 6. Combine Food Safety/Commercial Heath & Safety - £56k
  • 7. Noise team and Pest Control - £52k
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SLIDE 7

Ongoing service reviews

  • 1. Review of management structure of Regeneration,

Economic Development & Environment Directorate - £900k

  • 2. Reorganisation of Chief Executive’s department - £658k
  • 3. Community buildings review - £200k
  • 4. Efficiencies already generated from partnership with the

West London Waste Authority - £800k

  • 5. Reduction in insurance premium costs following

retendering - £405k

  • 6. Further review of commissioned contracts - £400k
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SLIDE 8

Recent changes you may have missed

Local Government Financial settlement 2016

  • Increased the permitted Adult Social Care (ASC) precept

by a further +1% in 2017/18 and 2018/19

  • 6% Limit on total ASC precepts in period to 2019/20
  • Limits ASC precept increase in 2019/20

Government grants to the Council now cut further

  • Assumes annual council tax increases of CPI+
  • Assumes ASC precept of +2% pa from 2016/17
  • Assumes annual increases in council tax base
  • f +2.5%
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SLIDE 9

Council tax and precepts

  • Council tax increase (1.99%) - £1.7m
  • Adult Social Care precept (2%) - £1.7m
  • GLA precept (1.5%) £4.02
  • Total council tax increase (3.99%) £47.10 Band D

Providing for:

  • No budget cuts in Social Care in 2017/18
  • Adult Social Care base budget +£1m (DEMAND)
  • Provision for one off Adult Social Care costs +£1m
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SLIDE 10

Increase Council Tax by around 4% which would help to make up for the reduction in Government grants

8%

Raise Council Tax only when necessary to fund the services residents need

29%

Keep Council Tax the same but cut services to balance the books

14%

Cut Council Tax but not services by improving value for money

45%

Cut the Council Tax and reduce services

3% What residents say

Hounslow Residents Survey October 2016

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SLIDE 11

Action on air quality

  • 1. £50 Diesel surcharge for Residents Parking Permits
  • 2. Half price for all Low Emission Vehicles
  • 3. First car permit fee £80 (Frozen)
  • 4. Second car permit fee £160
  • 5. Third car permit fee £240
  • 6. Roll out of differential charges after ‘cashless’ parking
  • 7. Reduced cost for new (trial) car club bays
  • 8. Consultation on car club bays in all CPZ
  • 9. Investment in a RAPID Electric charging point network
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SLIDE 12

Responsibility for Business rate increases

  • 1. Government sets the business rate (rate multiplier)
  • 2. Government responsible for valuing and revaluing business

premises (Valuation Authority)

  • 3. The Council collects the business rate – we still send out

the bills on behalf of the Government

  • 4. 2013/14 ‘Localisation’ - what the heck is that?
  • 5. The Government claims that £26bn is being retained by

Local Councils (we ‘keep’ 30% of what we collect)

  • 6. But for every pound in business rates the Council ‘keeps’

Government takes at least a pound off general grants

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SLIDE 13

Business rates revaluation

  • 1. The Government have announced a revaluation of all

properties to take effect from 1 April 2017

  • 2. Rateable value of properties in Hounslow will increase by

approximately £93m

  • 3. Business rates bills will see an average rise of 12% locally

as a result

  • 4. Transitional relief will be made available to support

ratepayers by allowing them time to adjust to their new business rates bills

  • 5. Bills will be capped each year at plus or minus 7½% for a

period of 5 years until the full bill amount has been reached

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SLIDE 14

Change in Rateable Value

5 10 15 20 25 30 35 40 45 50 Hackney Islington Hammersmith and Fulham Lewisham Lambeth City of London Southwark Camden Kensington and Chelsea Inner London Waltham Forest Westminster Hounslow LONDON Haringey Greenwich Tower Hamlets Newham Wandsworth Croydon Bromley Redbridge Richmond upon Thames Harrow Havering Ealing Brent Barnet Outer London Sutton Enfield Kingston upon Thames Barking and Dagenham Merton Bexley Hillingdon %

% change in overall Rateable Value by London Borough

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SLIDE 15

Business rate bills

  • 15%
  • 10%
  • 5%

0% 5% 10% 15% 20% 25% 30% 35% Hackney Islington Lewisham Hammersmith & Fulham Lambeth Southwark Camden City of London Kensington & Chelsea Waltham Forest Westminster Hounslow Haringey Greenwich Tower Hamlets Newham Croydon Wandsworth Bromley Harrow Redbridge Richmond-upon-Thames Havering Barnet Brent Ealing Sutton Enfield Kingston-upon-Thames Barking & Dagenham Bexley Merton Hillingdon London

Estimated (%) change in rates bills by London Borough

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SLIDE 16

The cost of business rate appeals

  • 1. Since 2013, the Council has been liable for local business

rate appeals

  • 2. The Council now picks up 30% of the cost of each appeal

the Government loses

  • 3. 28% of business rate appeals are still outstanding following

the 2010 revaluation

  • 4. That’s worth £12 million by rateable value
  • 5. Representing £6 million of Business Rate income
  • 6. Of which £1.8m will be lost to the Council if these appeals

are successful

  • 7. These appeals may not be resolved until April 2018
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SLIDE 17

How to appeal your business rate

  • A new appeals system will be put in place as part of the

2017 revaluation

  • Appeals will be able to be made online
  • Further details are available at:

https://www.gov.uk/business-rate-appeals/before-you-appeal

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SLIDE 18

Questions & Answers

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SLIDE 19

Contact details

Thank you

Theo Dennison Cabinet Member for Finance & Citizen Engagement 07950 468 361 theo.dennison@hounslow.gov.uk