1. www.hastings.gov.uk Hastings Borough Council Overview of Key Financial Challenges Facing HBC 2014/15 – 2016/17 Neil Dart Director of Corporate Resources Peter Grace Head of Finance

2. www.hastings.gov.uk Financial Picture Gross Expenditure £100m Net Council Expenditure 2014/15 is some £16.72m Funded by: Government Grant - RSG £3,885,000 (23%) Council Tax Freeze Grant £ 70,000 Efficiency Support Grant£ 975,000 New Homes Bonus£ 886,000 Other Grant/contributions£ 703,000 Housing Benefit Admin Grant£ 986,000 Non Domestic Rates£ 3,618,000 (22%) Council Tax£ 5,597,000 (33%)

3. www.hastings.gov.uk Government Funding Reduction 2010/112011/122012/13 2013/14 2014/152015/162016/17 (Est) £m Area Based Grant3.6 Formula Grant9.17.86.8 Settlement Funding Assessment (Revenue Support Grant and Business Rates)* 6.45.44.33.7 New Homes Bonus 0.20.40.50.91.11.2 Transition Funding02.82.2 Efficiency Support Grant 1.210.70.3 Total12.710.89.48.17.36.15.2 Cumulative Cash Reduction -1.9-3.3-4.6-5.4-6.6-7.5 Cumulative % Reduction -15.0%-26.0%-36.2%-42.5%-51.9%-59.0%

4. www.hastings.gov.uk Financial Pressures Reductions in Government Funding Inflation Income – Fees and Charges Factory & Shop rentals Investment Interest Lower Capital Receipts in the future Limits on Council Tax increases

5. www.hastings.gov.uk More Financial Challenges Business Rates – Level of Appeals Universal Credit starts - 2015/2016? Legal Challenges - Pier

6. www.hastings.gov.uk Financial Projection A deficit of £1.8m is estimated for 2015/16 and £3.1m in 2016/17 If reserves are used in 2015/16 the deficit could be reduced to £850,000 (but still need to save £3.1m in 2016/17)

7. www.hastings.gov.uk Working in Partnership Coastal Space £6.2m (51 units) Factory eco-retro fits £580k (ACE) FLAG project c.£1m investment to support promotion and development of fishing industry Waste and Street Cleaning Joint Procurement – Grounds Maintenance

8. www.hastings.gov.uk Capital Programme The 2014/15 programme amounts to £1.762m (£3.01m Gross). 2014/15 to 2016/17 amounts to £2.414m (£6.842m Gross) Plus, Coastal Space Project - HBC contribution and loan (£3.62m)

9. www.hastings.gov.uk Examples Disabled Facility Grants £964k Country Park Interpretative Centre£250k CCTV Control Room£275k Hastings Pier Contribution £250k St Leonards Townscape Heritage £238k Crematorium - Chapel £100k Pelham Crescent £804k

10. www.hastings.gov.uk A Balanced Budget Sources of Income: Grants Income – fees and charges Council Tax Non Domestic Rates Or Less Spending Every 1% Council Tax = £56,000

11. www.hastings.gov.uk Challenges Major reductions in funding Revised basis of Funding – more risk and uncertainty Revised basis for paying benefits Inflation (impact of salaries and contracts ) Maintaining Income - World Economy/ Eurozone/welfare Treasury Management – Safety & Security of Investments Corporate Plan & Balanced Budget – determined February of each year

12. www.hastings.gov.uk More Detail…… Finance Seminar 2 July 2014