1. One Nottingham Lunchtime Learning Public Spending Cuts

2. Objectives of the briefing today are: To understand latest position on the Partners budgets for 2011/12 To begin to explore how can partners work together to mitigate the worst effects of the budget cuts and how Nottingham remains resilient in the face of the economic downturn To consider what can your organisation do to help reduce the effects of the cuts

3. Nottingham City Council Financial Settlement

4. Understanding the settlement - headlines  The average reduction in spending power in 2011/12 is - 4.4%  The City is above the ‘floor’ in our group (of most severely impacted councils) so we have had to contribute £3.3m to other authorities and lose 10.65%  A number of previously specific grants have been rolled into Formula Grant NOTTINGHAM POSITION SOURCES OF FUNDING Rebased 2010/11 £m 2011/12 £m % CHANGE Adjusted Formula Grant206.819184.802- 10.65% Specific Grants outside Formula42.48328.267- 33.46% TOTAL GRANT FUNDING249.302213.068 - 14.53% Assumed Council Tax Requirement100.371 Indicative Council Tax Freeze Grant0.0002.511 NHS funding to support social care & benefit health0.0004.251 REVENUE SPENDING POWER 349.712320.204- 8.43%

5. More deprived = greater funding loss

6. Impact on Nottingham City Council- headlines  Our forward planning and good record of delivering efficiency savings means we have a balanced budget for 2011/12 with no council tax increase  The budget is supported by the use of reserves and capitalisation both of which are unsustainable in the Medium Term  We have tried to protect frontline services  We will still have to deliver on £33m of savings and manage previous Area Based Grant activity within a much reduced sum.  To achieve this we will have to reduce posts by around 370 and reduce staff terms and conditions

7. What happens next?  Full Council on 7 March approved budget 2011/12 we now need to deliver what were very difficult choices  Exploring further savings options to address the gaps for 2012/13 and the year after (currently estimated at c £20m and c £39m respectively)  We need to lobby and try to influence the Governments Local Government Resource Review which will impact from 2014/15

8. Nottinghamshire Police Overview – 2011/12 Home Office Police Grant£86.8m Other Government Funding Streams£62.5m TOTAL Government Grants£149.3m Local Authority Precept£53.4m This represents a 5% cut in funding from 2010/11 – a shortfall of £10.3m in real terms of the next year

9. The Force must operate with approximately 22% less funding over the next 4 years. As a result the force is focusing on: –Restructuring –Transformation of the business –Reviewing all departments and functions –Assessing the estate –Maintaining the Neighbourhood Provision –Downsizing the organisation Implications and Consultation

10. Fire and Rescue Authority Budget Position Annual budget made up of £25m Government grant + £23.1m Council Tax = £48.1m (2010/11) Expected reduction in Government Grant of £6.5m over 4 years Fire Cover Review, changes to prevention/protection activity and restructure of back office provision expected to realise up to £4.7m savings over 4 years

11. Fire and Rescue Authority Budget Position 2011/12 Budget 9.5% cut in government grant (£25.0m in 10/11 to £22.6m in 11/12) Council tax freeze at £69.69 per annum at Band D Total budget reduction = £1.7m Reserves will be used to support small part of revenue budget and substantial part of capital programme Substantial savings have been made in the budget, although no significant cuts to front line services 2012/13 to 2014/15 Budgets 3.4% further cut in government grant in 12/13 Further cuts to government grant anticipated in 13/14 & 14/15: Impact on budget over the 4 years dependent on local political decisions about future council tax levels

12. Fire Cover Review Commenced in Jan 2010 Rationalises stations and appliances, proposes changes to service delivery and reduction in F/T officer numbers Address areas of under provision –  Centre & NW of County  South of City  Strengthens Retained Sections in certain areas Rationalise areas of surplus provision –  Greater Nottm conurbation  NE of County  East of County Savings were due to be redirected to Prevention (Community Safety) and Protection (enforcement of fire safety regulations) but will now go towards budget reduction. Fire Cover Review now undergoing Member review, followed by public consultation Delivery of Prevention and Protection will be reviewed post FCR Restructuring of "back office" functions will take place over 4 year period

13. Financial conditions in the health system and organisational change

15. Summary of changes Financial position is tight with requirement to deliver around 50% management cost savings over 3 years. NHS Nottingham City will cease to exist from April 2013 when GP consortia will take on the commissioning of the NHS budget for Nottingham Public Health function to move across to Nottingham City Council – joint accountability to the National Public Health Service Community Provider services will operate independently of the PCT from April 2011.

16. Risks to consider Avoiding prolonged distraction – delivering change quickly and effectively in order to focus back on the Nottingham Plan Maintaining the strength of our vision – continuing to focus on Health Inequalities via the Nottingham Plan and One Nottingham approach Getting governance right – Health and Wellbeing Board will need to be the mechanism to engage and influence the mainstream NHS budget Supporting GPs - to engage, buy into our vision for Nottingham and build strong new partnership relationships

17. Thank you Questions and Discussion