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Financial Outlook and Update on Parish Precepts Parish Liaison meetings - November 2013 1.

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Presentation on theme: "Financial Outlook and Update on Parish Precepts Parish Liaison meetings - November 2013 1."— Presentation transcript:

1 Financial Outlook and Update on Parish Precepts Parish Liaison meetings - November 2013 1

2 Funding Outlook Core funding cuts of circa 15% per annum - 2015/16 to 2017/18 Equates to around a 30% RSG cut each year Looking at a £11m combined savings target for both councils over the next 4 years New Homes Bonus - 35% top slice (reduction) from 2015/16 2

3 Key Issues Medium Term: Creating a clear plan to achieve our priorities and deal with the reduction in core funding Short-Term: Setting a Balanced Budget for 2014/15 3

4 Medium Term Two key components Priority Based Budgeting (PBB) A Medium Term Financial Strategy/Plan 4

5 Priority Based Budgeting Review resources to assess how they contribute to priorities (activity mapping) Identify opportunities for savings / income generation through transformation Financial scenario modelling to develop longer term budget 5

6 Priority Based Budgeting 5 Stages 1.Confirm strategic vision/direction (done) 2.Establish current cost base and core/non- core services 3.Identify and quantify opportunities for savings through transformation. Develop Business Cases 6

7 Priority Based Budgeting 4.Financial Scenario Modelling. Decision packages - Prioritisation roundtable workshops 5.Develop longer term budget - fully cost decision packages 7

8 Medium Term Financial Strategy/Plan Reduce our dependence on core grant Maximising return on our investment Increasing our borrowing to invest to save Further grow income opportunities Only do those things where a clear business case demonstrates it makes sense 8

9 What will this incorporate? Reforming our resource base to reflect new incentivised and target Government funding streams/pots e.g. NHB, TCA Reflecting….. Transformation programme outcomes, New Homes Bonus, Invest to Save projects, Business Rates growth, Reserves and Council Tax strategy 9

10 What will this incorporate? Outcomes from the PBB work 3-5 year rolling finance plans and budgets Radically reviewing financial planning and management arrangements and roles Focusing capacity on income generation, cost reduction and other added-value activity around resource management 10

11 Outcome Within 5 years the Councils are sustainable notwithstanding reduced core funding 11

12 Potential Position - 2014/15 Combined Budget Gap: July forecast £3.6m Review of cost pressures and potential savings of £1.9m Remaining gap £1.7m How can this be found? 12

13 Potential Position - 2014/15 Income generation opportunities - including growth agenda (more homes, Council Taxbase and business rates growth) Short-term Invest to Save projects to release efficiency savings Cost/savings sharing between the two councils Council Housing cost recharges review 13

14 Potential Position - 2014/15 Managing cost pressures Contracts and non-pay costs review Temporary use of NHB – to fund staff time spent on strategic projects Capital investment plans 2014/15 onwards – asset utilisation and borrowing 14

15 Update on Parish Precepts LCTR scheme and funding workshops Opportunity to increase understanding, discuss and share issues and concerns Affect on Town & Parish Council precepts and taxpayers: - Short-term - Medium-term NB: Two thirds increased precept and Council Tax in 2013/14 15

16 Update on Parish Precepts Council Tax reductions and funding now shared between all tiers of LG BDC, MSDC, other councils – capping, budget cuts and income generation options Now applies to Towns & Parishes Taxbase drives Council Tax and precept levels. Growth = increase Options and Impacts explored 16

17 Update on Parish Precepts ‘Capping’ – limits precepts. Cost of a referendum? Will only apply to bigger parishes? What will the basis be? Size of Council/Precept? Council Tax Level? When will an announcement be made – Autumn Statement (5 Dec)? Later? 17

18 Update on Parish Precepts SALC views/analysis: - Administration Subsidy (confusion?) - Capping ignores local context and ‘localism’ agenda - 34% of local councils precept less than £5,000 - 47% of local councils have a Band D Council Tax of < £30 18

19 Update on Parish Precepts Ongoing communication and information needs e.g. Taxbase Offer of 1:1’s - if necessary Continue to work together with you and SALC Anything else we can do to help? 19

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