1. Community Council Meeting 9 November 2017
Angus Council Budget Position

2. Understanding The Context (1)
Council’s General Fund Revenue Budget Suffering “Triple Whammy” effect for the last 5-6 years:-
Significant reductions in Grant Funding (80% of our income)
Rising demand for some services (children and older people)
Rising costs (inflation and new burdens)
Savings in service costs needed to balance the books – mix of efficiencies and service cuts
Council Tax only 20% of Council funding – would need double digit percentage rises year or year to meet funding gap

3. Understanding The Context (2)
Savings of £56m made in the last 10 years
£27m (11%) savings in last 4 years alone
Council employs 600 fewer staff than 6 years ago
Cumulative impact of triple whammy effect is the key problem – continual battle to save money to meet rising costs, rising demand and falling grant income

4. Net Budget Income Sources
2017/18
Income Source £m
Influence and Expectations for 2018/19 to 2020/21
Scottish Government Grant
174.0
69%
Projecting a cash reduction of £13.5m (7%). No AC control
Non-Domestic Rate Income
27.2
11%
Unknown - Scottish Govt decision. No AC control
Sub-total
201.2
80%
Angus Council has no direct say or influence over 80% of its funding
Council Tax
50.6
20%
Expect Scottish Government to limit rises to max of 3% p.a.
Core Funding Available
251.8
100%
Income from Fees & Charges
22.0
Mostly determined by Council but some fees are set nationally by Government

5. Demand & Costs Increases
More Demand for Services
More looked after children
More older people needing care
More very old people needing specialist care
Rising Costs/Prices
Pay rises - Council staff
Pay rises / Living Wage - contractors, foster carers, etc.
Energy & fuel costs - council isn't immune from market forces
New Burdens
Waste disposal - new 28 year contract
Apprenticeship Levy –0.5% on pay bill for 2017/18

6. Moving Money Around – A Challenge
Falling School Rolls suggests need to move money to areas with rising demand like social care but the Council can't change the schools estate on financial grounds alone
Public expectation of same provision in every burgh - not possible financially
Moving resources from acute health budgets to social care a real challenge
Limited funds to invest in prevention due to current needs and funding squeeze

7. Where does the money go? Some big areas of spend are fixed
12 big areas of spend take up 82% of our total budget We have to save the money where we spend it
Some big areas of spend are fixed
= higher reductions in other areas

8. Further Savings Required
Funding Gap
2018/19 £m
2019/20
2020/21
Total
Optimistic
13.9
8.9
6.1 %
Baseline
15.6
11.5
11.3 %
Pessimistic
17.8
12.7
12.6 %
Figures are projections (our best estimates)
So many aspects Angus Council doesn’t control so figures will change
Setting a balanced budget is a legal requirement – Council cannot avoid decisions needed to live within the funds it has

9. How Big Is The Task?
Even taking optimistic view the task is huge (savings of £29m needed)
To put the figures into context the savings needed are equivalent to:-
The cost of all Environmental Health Services
£1m
The cost of Winter Maintenance
£3m
The cost of Pre-School Provision
£6m
The cost of Economic Development Services
The cost of IT & Revenues & Benefits Services
£4m
The cost of all Waste Services
£11m
The cost of all Parks Services
£29m OR
The cost of all Primary School Education
£34m
The cost of all Older People Services
£30m
Message – financial sustainability of the Council needs more than tinkering at the margins – it needs fundamental reappraisal of the services the Council can afford and how they are provided

10. How can we help each other?
Never been more important for the Council/other public bodies and communities to come together
Good examples already in Angus
Community Councils can play a vital part
What are our offers and asks of each other?
Non-financial support from the Council more feasible than funding
Community Empowerment Act paves the way for different approach and relationships

11. An example from Wigan
The “Deal” is between the Council and the citizens it serves

12. Questions