RESOURCES SELECT COMMITTEE –
2 FEBRUARY 2004
BUDGET CONSULTATION
REPORT OF THE CHIEF FINANCIAL OFFICER
REASON FOR SELECT
COMMITTEE CONSIDERATION
This report sets out the current position in respect of the 2004-05 revenue
budget and 2005-06 forecast, and seeks Select Committee views on the way
forward.
ACTION REQUIRED BY THE SELECT COMMITTEE
To make
recommendations to the Executive in respect of spending decisions and Council
Tax levels in 2004-05 and 2005-06, including proposed bids and savings, and a
contingency plan for 2005-06.
BACKGROUND
1.
The Government
announced its proposals for next year’s Revenue Support Grant (RSG) on 19th
November. Further funds were then announced by the Chancellor of the Exchequer
on 10th December, and resulted in an additional £858,000 for this
Council. The proposals as they now stand are considerably better than the
current year’s settlement, and the Council receives an above average increase
in the Formula Spending Share for all service blocks except Education, which is
still suffering from the unwinding of protection against this year’s losses.
2.
Despite the
improved settlement, the increase in Formula Spending Share falls short of the
amount which the Council needs for a ‘standstill’ in service levels by
approximately £3 millions.
3.
This has been
offset in part by a new power to reduce discounts on second homes. Unusually,
the proceeds from this will not be clawed back by the Government, and should
reduce the general level of tax by 2%.
4.
The Council
also has a new power to reduce the discount on properties empty for more than 6
months, which could yield over £450,000. Unlike the discount on second homes,
the Council will only be able to keep the proceeds of this change for the first
year, and it would be prudent, therefore, to restrict its use to one-off
projects.
5.
After allowing
for all the above, a budget which would provide for a ‘standstill’ for all
services would require a tax rise of 5.9%. This figure would change up or down
by 1% for every £532,000 change in expenditure.
6.
Bids currently
under consideration are set out in appendix A, and offsetting savings at
appendix B. To the extent to which total bids exceeded offsetting savings, then
the tax increase quoted at 5 above would have to increase.
7.
We are told
that the extra funding announced by the Chancellor in December is a ‘one-off’,
and there are a number of other unfavourable changes forecast between 2004-05
and 2005-06. In a ‘worst case scenario’ using published Government figures and
assuming the same share of the national RSG cake in both years, the Council
might need to find savings of over £3,000,000 in 2005-06 in order to deliver,
say, a 5% tax rise. Whilst this prediction is hopefully well to the pessimistic
end of the scale, and we may for example reap significant benefit from new
census data if it is used in the 2005-06 settlement, it would be prudent to
have a contingency plan in place to cover that eventuality. The alternative
could be a double figure tax rise.
RELEVANT PLANS,
POLICIES, STRATEGIES AND PERFORMANCE INDICATORS
In
formulating its budget the Council needs to have regard to its Corporate Plan,
Service Plans and in particular its Priority Improvement Areas.
CONSULTATION
PROCESS
A
comprehensive consultation process on the budget is underway, of which this
report forms a part.
FINANCIAL, LEGAL,
CRIME AND DISORDER IMPLICATIONS
The Council’s budget setting has self-evident financial implications,
including in particular the level of Council Tax to be raised in the coming
financial year.
With the advent of the Local Government Act 2003 there is also a
statutory duty on the Chief Financial Officer to report on the robustness of
the budget and the adequacy of reserves.
Various crime and disorder issues have been taken into account during
the service planning and bids process.
APPENDICES
ATTACHED
A List of current revenue bid proposals
(excluding education and social services)
B List of current savings proposals
C Full list of revenue bids (excluding
education and social services)
BACKGROUND PAPERS
USED IN THE PREPARATION OF THIS REPORT
Council Publication
‘Budget 2003-04’
Revenue Support
Grant Consultation 2004-05 (ODPM)
Contact Point :
Paul Wilkinson, Chief Financial Officer,
tel: 823650, [email protected]
PAUL WILKINSON
Chief Financial
Officer
|
Item |
SMT Priorities £000 |
Latest £000 |
Comments |
|
Highway Maintenance – various |
300 |
185 |
|
|
Homelessness strategy |
200 |
200 |
Plus £100k spend to save |
|
Planning – various |
150 |
0 |
Now met from grant |
|
Fire & Rescue - varous |
100 |
0 |
|
|
Road Safety |
50 |
50 |
|
|
Health & Safety at Work Act – workplace assessments |
28 |
28 |
|
|
Library grading and post rationalisation and training |
75 |
50 |
|
|
Equalities budget |
25 |
25 |
|
|
Liquor Licensing – committee administration |
20 |
0 |
Absorbed within existing resources |
|
Personnel Restructure |
70 |
0 |
|
|
Criminal Records Bureau increased charges |
16 |
16 |
|
|
Succession Planning (corporate budget) |
100 |
50 |
|
|
Highways PFI – initial stage |
60 |
60 |
|
|
Highway Maintenance Staff |
115 |
0 |
|
|
Total |
1,309 |
664 |
|
|
Service/item |
£000 |
£000 |
|
Leisure Events |
|
50 |
|
Arts &
Theatres |
|
|
|
Platform 1 grant reduction |
8 |
|
|
Quay Arts Centre grant
reduction |
10 |
|
|
Arts Council subscriptions |
13 |
|
|
IW Symphony Orchestra |
1.5 |
|
|
Theatre support |
10.5 |
43 |
|
Indoor Sport
& Recreation |
|
|
|
‘One Card’ charges |
20 |
|
|
Other charges |
6 |
|
|
Medina Café – replace with
vending |
10 |
|
|
Heights Bar/Café –
restructuring |
12 |
|
|
Waterside Café – closure |
12 |
60 |
|
Sports
Development - efficiencies |
|
5 |
|
Tourism &
Visitor Centres |
|
|
|
Amalgamation of Newport TIC
with CSC |
18.2 |
|
|
TIC efficiencies |
20 |
|
|
Increased advertising rates |
8 |
|
|
Tourism News – stop
publication |
8 |
54 |
|
Countryside
Management |
|
40 |
|
Civic/Democratic
Costs |
|
|
|
Twinning |
4 |
|
|
Democratic Representation
efficiencies |
14 |
|
|
Cowes Week reception |
7 |
25 |
|
Museum Service – exhibition
team |
|
10 |
|
Outdoor Sports
& Recreation |
|
|
|
Bandstands & Concerts |
6 |
|
|
Preferential Pricing |
10 |
|
|
Road Trains |
15 |
31 |
|
Ventnor Botanic
Garden - efficiencies |
|
5 |
|
|
|
323 |
Revenue Bids 2004-05 to 2006-07 £000's
04/05 05/06 06/07
Community Development
CD01 Community Development Management
restructure 45 45 45 Exec - defer
CD02 Record Office Feasibility
study of development 25 SMT - defer
CD03 Libraries Staff
stucture/grading 50 50 50 Exec - fully
fund
CD04 Wight Leisure Northwood House
functionality 18 18 18 SMT - defer
CD05 Sport & Recreation West Wight
Sports Centre subsidy 10 10 10 SMT - defer
CD06 Museums Technical
Services Unit income shortfall 10 10 10 SMT - defer
CD07 Museums Staff relocation
costs 10 10 10 SMT - defer
CD08 Arts Unit Ryde &
Shanklin Theatre management 11 11 11 SMT - defer
CD09 Wight Leisure Continuous
Improvement Plan 20 20 20 SMT - defer
CD10 Record Office Warehousing
facility 70 70 75 SMT - defer
CD11 Libraries Dedicated ICT
technician 20 20 20 SMT - defer
CD12 Parks & Beaches Sandown
Bay/Ventnor maintenance crew 53 52 52 SMT - defer
CD13 Parks & Beaches Best Value
improvement plan (parks) 100 99 99 SMT - defer
CD14 Wight Leisure Repairs &
renewals contributions 25 25 25 SMT - defer
CD15 Parks & Beaches Best Value
improvement plan (beaches) 64 63 63 SMT - defer
CD16 Sport & Recreation Physical
activity strategy 26 28 29 SMT - defer
CD17 Arts Unit Arts Away
Programme - funding 25 25 25 SMT - defer
CD18 Libraries Books and
magazines 41 41 41 SMT - defer
CD19 Museums Exhibitions
& displays 26 26 26 SMT - defer
CD20 Record Office New record
office facility 0 51 101 SMT - defer
CD21 Wight Leisure Youth Music
Festival 15 15 15 SMT - defer
CD22 Wight Leisure Wight in Bloom 20 20 20 SMT - defer
Consumer Protection
CP01 Health & Safety National targets
for work injury reduction 28 28 28 SMT - fully fund
CP02 Trading Standards Trainee post 18 18 18 SMT - defer
CP03 Environmental Health Trainee post 18 18 18 SMT - defer
Emergency Planning
EP01 Emergency Planning Civil
Contingencies Act 74 76 79 SMT - defer
Engineering Services
ES01 Highway Maintenance Repair backlog 2,450 2,450 2,450 SMT - defer
ES02 Highway Maintenance Maintenance
staff (4) 115 115 115 Exec - defer
ES03 Highway Maintenance Pavement
management system 70 45 45 SMT - part fund
ES04 Highway Maintenance Budget shortfall 8 8 8 SMT - part fund
ES05 Traffic & Transportation Traffic
management staff structure 111 111 111 SMT - part fund
ES06 Traffic & Transportation Travel plans
developer 35 33 33 SMT - defer
ES07 Vehicle Fleet Vehicle Driving
Authorisation 21 18 18 SMT - defer
ES08 Concessionary Fares Budget shortfall 200 200 200 SMT - defer
ES09 Car Parks Planned
improvement programme 100 100 100 SMT - defer
ES10 Car Parks Decriminalisation
etc - staff implications 96 146 SMT - defer
ES11 Road Safety Road Safety
Strategy initiatives 36 41 46 SMT - part fund
ES12 Road Safety Child pedestrian
training coordinator 16 36 37 SMT - part fund
ES13 Road Safety Relocation to
Newport Quay 30 0 0 SMT - part fund
ES14 Highways Design Additional staff
and training 138 115 94 SMT - part fund
ES15 Highways Design Bridge &
retaining wall inspection regime 270 265 245 SMT - part fund
ES16 Highways Development Additional staff
member 30 29 29 SMT - defer
ES17 Rights of Way CROW Act 15 15 15 SMT - defer
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Revenue Bids 2004-05 to 2006-07 £000's
04/05 05/06 06/07
ES18 Coastal Maintenance Maintenance
budget 13 26 40 SMT - defer
ES19 Contract & Waste Cyclical
contracts technician 25 25 25 SMT - defer
ES20 Contract & Waste Senior waste
management technician 29 29 29 SMT - defer
ES21 Highway Management PFI for highway
maintenance 60 60 0 SMT - fully fund
ES22 Engineering Services Policy &
Strategy support (2 posts) 56 50 50 SMT - defer
ES23 Street Lighting Column and sign
replacement 30 30 30 SMT - part fund
ES24 Engineering Services Jubilee Stores
improvements 30 0 0 SMT - defer
ES25 Engineering Design Ryde Transport
Interchange design 357 34 17 SMT - defer
Finance & Business
FB01 Revenues & benefits Benefit overpayments
post 22 21 21 SMT - defer
FB02 Revenues & benefits Electonic
billing SMT - defer
FB03 Procurement Training of
staff in other services 8 6 5 SMT - defer
Fire & Rescue
FR01 Support ICT for
Prevention initiatives 237 131 112 Exec - self fund
FR02 Support Personal
Development System 100 100 100 Exec - self fund
FR03 Fire Service Emergency cover 100 93 93 Exec - self fund
FR04 Fire Service CCBRN Vehicle
Maintenance 15 15 15 Exec - self fund
FR05 Fire Service Conditions of
Service SMT - fully fund
FR06 Fire Service Community Fire
Safety 13 13 13 Exec - self fund
FR07 Fire Service Retained 3/4
units and community fire 25 40 55 Exec - self fund
FR08 Fire Service Abnormal
absences 75 75 75 Exec - self fund
FR09 Fire Service Positive
pressure ventilation 30 40 50 Exec - self fund
FR10 Fire Service Specialist
training - water, height, fitness 30 42 42 Exec - self fund
Housing Strategy
HS01 Housing Strategy Homeless
improvement plan 163 168 148 Exec - fully
fund
HS02 Housing Strategy Contingency fund
to sustain tenancies 20 20 20 Exec - fully
fund
HS03 Housing Strategy Home improvement
agency staffing 100 105 111 Exec - fully
fund
HS04 Housing Strategy Housing market
research 10 0 0 Exec - fully
fund
Human Resources
HR01 People Management Staff
restructuring 70 74 79 Exec - defer
HR02 People Management CRB fees 16 16 17 SMT - fully fund
HR03 Human Resources PIPS Development
(ICT staff) 50 52 55 SMT - defer
HR04 Corporate trainee scheme Succession
planning for scarce 100 100 100 SMT - fully fund
Legal & Democratic
LD01 Committee Administration Liquor licensing 20 21 22 SMT - self fund
LD02 Legal Services Corporate
Governance Costs 51 52 54 SMT - virement
Organisational Development
OR01 Strategic projects Call Centre
Premises 306 445 268 SMT - defer
OR02 Strategic projects Land &
Property Gazetteer 181 53 49 SMT - defer
OR03 Software Development Contact
Management System 108 35 35 SMT - defer
OR04 Strategic projects GAGS contingency
- one stop shops 500 500 500 SMT - defer
OR05 ICT Accommodation
Costs 25 25 25 SMT - defer
OR06 ICT Service Development Project Support
Officers 59 57 57 SMT - defer
OR07 ICT Additional ICT
Staff 153 153 153 SMT - defer
OR08 ICT Upgrade
Outlook/Exchange 260 52 52 SMT - defer
OR10 Strategic ICT Projects New
Commitments/Creditors System 450 250 250 SMT - defer
Page 2 of 3
Revenue Bids 2004-05 to 2006-07 £000's
04/05 05/06 06/07
OR11 Strategic ICT Projects Secure Server
Farm 510 50 50 SMT - defer
OR12 ICT Consultancy
Review of ICT 50 0 0 SMT - defer
OR13 Service Development Corporate Information
Management 49 47 47 SMT - defer
OR14 Customer Services Building Access
Control System 50 40 40 SMT - defer
OR15 ICT Thin Client
Roll-out 0 500 500 SMT - defer
OR16 Strategic ICT Projects E-procurement 0 350 350 SMT - defer
Planning services
PL01 Development Control Section 106
co-ordinator 32 32 34 SMT - withdraw
PL02 Countryside TPO officer 25 27 29 SMT - withdraw
PL03 Development Control Major
applications officer 35 37 40 SMT - withdraw
PL04 Planning Policy Local
Development Framework 70 128 227 SMT - withdraw
PL05 Development/Building Scanning
assistant (DIP) 17 18 19 SMT - withdraw
PL06 Building Control Buiding Control
Surveyor 27 29 31 SMT - withdraw
Policy & Economic Development
PC01 Policy Performance
management IT system 56 17 17 SMT - defer
PC02 Crime & Disorder Community
Development & Crimebeat 26 27 29 SMT - defer
PC03 Crime & Disorder Reparation
Scheme 10 10 10 SMT - defer
PC04 Crime & Disorder Anti-social
Behaviour Orders 10 10 10 SMT - defer
PC05 Crime & Disorder Section 17,
Crime & Disorder Act 27 29 30 SMT - defer
PC06 Crime & Disorder Increased
administration hours 9 10 10 SMT - defer
PC07 Policy Equalities 25 26 28 SMT - fully fund
PC08 Policy Community
Wardens Scheme 80 84 88 SMT - defer
PC09 Economic Development Economic Partnership
additional funding 100 100 100 SMT - defer
PC10 Policy Budget shortfall
and other pressures 85 92 100 SMT - defer
PC11 Communications Communications
Strategy 30 32 35 SMT - defer
Property Services
PS01 Property Services Integrated
property data 5 5 5 SMT - defer
PS02 Property Services Staff career
pathway planning 20 20 20 SMT - defer
PS03 Markets Supervision,
security, street cleaning 10 10 10 SMT - defer
PS04 Building maintenance Planning and
reactive repairs 300 300 300 SMT - defer
Select Committee Support
SC01 Committee support Research post 18 18 18 SMT - defer
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