1. Poole Council Cllr Elaine Atkinson Leader of the Council Budget & Council Tax Setting 2014/15 MEETING WITH REPRESENTATIVES OF RESIDENTS’ ASSOCIATIONS AND COMMERCE & INDUSTRY

2. Agenda Background – A new budget processBackground – A new budget process Background – Peer ReviewBackground – Peer Review National Context – Why Austerity NeededNational Context – Why Austerity Needed National Context – 2015 Spending ReviewNational Context – 2015 Spending Review Local Context – Where the money comes fromLocal Context – Where the money comes from Local Context – Impact of Austerity on PooleLocal Context – Impact of Austerity on Poole Local Context – Where the money goesLocal Context – Where the money goes MTFP 2014 to 2018 (Part 1)MTFP 2014 to 2018 (Part 1) MTFP 2014 to 2018 (Part 2)MTFP 2014 to 2018 (Part 2) Next StepsNext Steps

3. Background - New Budget Process Budget process changed for 2014/15 onwards to reflect;Budget process changed for 2014/15 onwards to reflect; No Overall Control No Overall Control Overview & Scrutiny of MTFP not adding enough value Overview & Scrutiny of MTFP not adding enough value ChangesChanges Cross Party Budget Steering Group established Cross Party Budget Steering Group established Efficiency & Effectiveness O&SC responsible for overall scrutiny of the budget Efficiency & Effectiveness O&SC responsible for overall scrutiny of the budget Other Overview & Scrutiny CommitteesOther Overview & Scrutiny Committees Consider significant changes in policy or service levels Consider significant changes in policy or service levels (E&E OSC considered Business Case to deliver revenue & benefit services in partnership with 3 other authorities)

4. Background - LGA Peer Review Bill Roots previous CX & Director Finance at Westminster City Council undertook Financial health check, conclusions; Bill Roots previous CX & Director Finance at Westminster City Council undertook Financial health check, conclusions; Poole has managed to avoid full impact squeeze so far Poole has managed to avoid full impact squeeze so far Careful financial planning, effective management, prudent resource assumptions, use reserves.Careful financial planning, effective management, prudent resource assumptions, use reserves. Options are running out Options are running out Decisions will become more contentiousDecisions will become more contentious Financial gap is enormous particularly authority Poole’s size Financial gap is enormous particularly authority Poole’s size We need to develop outline options to bridge gap We need to develop outline options to bridge gap Suggests Budget Steering Group takes more responsibility Suggests Budget Steering Group takes more responsibility “Star Chamber“ clearing house for difficult decisions that lay ahead“Star Chamber“ clearing house for difficult decisions that lay ahead Emphasised that Council can by local decision (to a limited extent) change its resource base associated with Council Tax, the chances of changing the national grant allocation is remote in the extreme Emphasised that Council can by local decision (to a limited extent) change its resource base associated with Council Tax, the chances of changing the national grant allocation is remote in the extreme

5. National Context – Why Austerity Needed National Debt at the end of 2012 = £1,390,000,000,000

6. National Context – Spending Review 2015

7. Local Context – Where the money comes from

8. Local Context – Impact of Austerity on Poole 55% Cumulative annual reduction in core Government funding since 2010

9. 10/1111/1212/1313/14Total £m Growth Pressures Adult Social Care - Growth1.93.24.22.812.1 Core Government funding reductions(0.4)5.12.52.39.5 Inflation, pay price and other growth pressures2.52.61.12.78.9 Pay, Pensions & Incremental Drift (pay frozen 10 to 13) 1.31.21.01.55.0 Specific Government Grant funding reductions4.0(0.2)0.84.6 Waste disposal (Including £8 per tonne landfill tax) 0.60.70.30.52.1 Children’s Social Care Growth0.5 0.31.3 Total Pressures 6.417.38.910.943.5 Additional Resources, Savings & Efficiencies General(2.2)(5.8)(3.4)(6.5)(17.9) Adult Social Care(1.2)(1.9)(1.1)(1.8)(6.0) Changes to services funded by specific grants(5.5)0.2(5.3) Efficiency Review Programme(1.7)(2.0)(1.2)(4.9) Council Tax (including Freeze Grants) (2.0)(1.8) 1.1(4.5) Other (New Homes Bonus, Ctax Reforms, Business Rates) (1.0)(0.6)(0.8)(1.8)(4.2) Localisation of Council Tax Benefit(0.7) Total additional resources & savings(6.4)(17.3)(8.9)(10.9)(43.5) Local Context – Impact of Austerity on Poole - Savings made by the Council since 2010/11

10. Local Context – Where the money goes Majority of resources spent on minority residents (vulnerable Adults & Children)

11. 14/1515/1616/1717/18Total £m Growth Pressures Core Government funding4.25.43.32.515.4 Adult Social Care - Growth1.41.7 1.56.3 Pay award0.6 1.51.64.3 Inflation and other growth pressures1.10.70.40.12.3 Incremental Drift0.80.60.20.11.7 Waste Disposal Costs (£8 per tonne landfill tax 2014/15 plus inflation) 0.60.10.2 1.1 National Insurance (current rebate withdrawn Single State Pension) 1.0 Children’s Services (investment /SEN Transport / Early Years Help review) 0.80.10.9 Other Government Grants Reductions (Local Housing Provision / Housing Benefits Administration) 0.40.20.10.7 Children’s Social Care Growth (previous year funded reserves) 0.2 2013/14 Budget (reserves completed) 0.3 Car Parking Income rebase0.3 Total Additional Annual Pressures 10.49.48.76.034.5 Cumulative Pressures10.419.828.534.5 Medium Term Financial Plan 2014 to 2018 (part 1)

12. 14/1515/1616/1717/18Total £m Extra Resources, Savings & Efficiencies General Savings and Efficiency Proposals(2.9)(1.5)(0.7)(0.6)(5.7) Adult Social Care Savings & Efficiencies(2.7)(0.2) (3.1) Council Tax – Tax Base Increase (new properties, expenditure LCTSS, collection levels) (1.6)(0.4)(0.6)(2.6) Council Tax Increases (2015/16 + 2016/17) (1.3) (2.6) New Homes Bonus (New properties) (0.5)(0.2)(0.4)(0.6)(1.7) Council Tax Freeze Grants (2014/15 + 2015/16) (0.7) (1.4) Adult Social Care & Children’s Services (Budget Rebase) (1.6) Local Council Tax Support Scheme (assumed increase in resources) (0.4) Application of reserves (Local Council Tax Benefit Scheme) (0.4)0.40.1 Additional Annual Resources & Savings(10.4)(2.6)(2.8)(3.3)(19.1) Cumulative additional Resources & Savings(10.4)(13.0)(15.8)(19.1) Cumulative MTFP – Net Resource Gap06.812.715.4 Medium Term Financial Plan 2014 to 2018 (Part 2)

13. Next Steps Continue Cross Party Budget Steering Group (Star Chamber) through January/February and beyond with particular emphasis on developing plans for 2015 onwards.. Continue Cross Party Budget Steering Group (Star Chamber) through January/February and beyond with particular emphasis on developing plans for 2015 onwards.. Relentless pursuit of Value For Money (VFM) Relentless pursuit of Value For Money (VFM) Even greater levels of efficiency & productivityEven greater levels of efficiency & productivity Bring forward detailed proposals on financial and non financial implications of a number of options that the Cross Party Budget Steering Group requested be further explored. Bring forward detailed proposals on financial and non financial implications of a number of options that the Cross Party Budget Steering Group requested be further explored. Prioritised support towards economic growth and job creation Prioritised support towards economic growth and job creation Aim remains to improve quality of life whilst protecting the most vulnerable

14. Questions…? Elaine Atkinson e-mail: elaine.atkinson@poole.gov.uk