cabinet meeting on 17th december 2014 financial...

Council Leader, Philip Atkins said: “Over the last five years the county council has been able to manage the demands

on its budgets and services well by changing the way it works, by finding new and

better ways to provide help to those who need it and by reducing costs wherever we

can.

“We have done this by being focussed on what difference we can make to the lives

of residents and by being innovative and creative, rather than relying on the old way

of providing council services.

“We have a good track record, with real evidence that we have made a difference to

local people.

“We do not intend to step back from this overall approach as we move into 2015 and

beyond.”

Ian Parry, Deputy Leader and Cabinet Member for Strategy, Finance and Corporate Issues, said:

“We have worked hard, and successfully, to make the county council more efficient

and affordable over recent years. We have invested in our economy to create more

jobs and forged new partnerships to improve services and reduce cost in areas such

as school support.

“But the needs of local people and the way they want to live their lives are changing

fast – and as a council, working with our partners, we must change with them.

Responding to this, we have to provide care for the growing number of Staffordshire

people who need our support has become one of the biggest challenges we face.

Cabinet meeting on 17th December 2014

Strategic Plan 2015 – 2019 and Medium Term Financial Strategy 2015-2020

Report Summary from Philip Atkins, Leader of the Council and Ian Parry, Deputy Leader and

Cabinet Member for Strategy, Finance and Corporate Issues

“This is a challenge for the whole of Staffordshire, not just for the county council.

And everyone from councillors to residents has to take some responsibility for

tackling this challenge and creating a better life for all.”

1. This report provides Cabinet with an update on the evolving work to date in

preparing our Strategic Plan and Medium Term Financial Strategy (MTFS) which set out the vision of what we hope to achieve for Staffordshire in the next four years and the ways we will work with our residents, communities, businesses and partners to make this a reality. Our Medium Term Financial Strategy provides details of how we will fund our operations.

2. Recommendations – we recommend that in respect of the Strategic Plan 2015-

19 and Medium Term Financial Strategy 2015-2020, Cabinet:

a) Note the progress made in developing the Strategic Plan 2015-19; b) Note the financial outlook facing the county council; c) Note the work that has been done to develop savings options; d) Ask that work continues to identify additional proposals needed to address

the funding gap in 2015/16; e) Ask the Corporate Review Committee to scrutinise the proposed

pressures and savings against the principles of a good and balanced budget.

Cabinet – 17th December 2014

Strategic Plan and Medium Term Financial Strategy (MTFS) 2015-20

Recommendations of the Leader of the Council and Deputy Leader of the Council and the Cabinet Member for Strategy, Finance and Corporate Issues 1. We recommend that in respect of the Strategic Plan 2015-19 and Medium Term

Financial Strategy (MTFS) 2015-20, Cabinet:

i. Note the progress made in developing the Strategic Plan 2015-19; ii. Note the financial outlook facing the county council; iii. Note the work that has been done to develop savings options; iv. Ask that work continues to identify additional proposals needed to address

the funding gap in 2015/16; v. Ask the Corporate Review Committee to scrutinise the proposed pressures

and savings against the principles of a good and balanced budget.

Report of Director of Finance and Resources and the Director of Strategy and Customer Services Background 2. This report provides Cabinet with an update on the work to date in reviewing the

Strategic Plan, the Business Plan and the Medium Term Financial Strategy (MTFS) which provides details of how our operations will be funded over the period 2015-2020.

3. The County Council recognises that the lives and needs of local residents and

businesses are changing, and that we cannot rely on past ways of providing public services if we are to help people live better lives in the future. This means working increasingly with public sector partners across the county, and beyond, to pool our resources and focus our capabilities on doing the right thing for our communities.

4. It also means helping people take control of their own lives and doing what they

can to improve their health and prosperity and that of their families and friends. 5. Over the last year there is compelling evidence that we are moving in the right

direction as a council and a county:

• We have helped bring in £millions of public and private sector investment to bring jobs and growth to the county. And it is working: The Job Seekers Allowance (JSA) claimant rate in Staffordshire continues to decrease and is at its lowest in recent years, as well as well below the national average. Just 1.1% of Staffordshire’s working age population now claim JSA;

• Just under 8 out 10 (79%) schools in Staffordshire are rated as good or

outstanding by Ofsted, which is an increase of 20 percentage points since 2010. But we cannot rest there: we have set a target of 80% of all

schools in Staffordshire being ‘good or better’ by August 2015 and 90% of all schools being 'good or better' by August 2016;

• Since May 2014, the Superfast Staffordshire broadband project has

provided over 20,000 homes and businesses in Staffordshire with the ability to receive fibre broadband. The £27 million investment from Superfast Staffordshire, BT and other private sector partners will mean 95% of homes and businesses across the county having access to super-fast broadband by spring 2016;

• Ofsted says that vulnerable children in Staffordshire are “very well

protected” following an inspection of services for children in need of help and protection, children looked after and care leavers. Staffordshire County Council and its partners have officially been judged as ‘Good’ thanks to the work of Families First, the Staffordshire Children’s Safeguarding Board (SSCB) and our partners.

6. Staffordshire is in a strong position to build on these achievements, and we have

a very clear view of where we need to go as an organisation, even if this means we have to respond differently to our evolving social and financial challenges.

7. The overall Strategic Plan therefore, remains in place and can be found here: http://www.staffordshire.gov.uk/yourcouncil/strategicplan/strategicplan2012-2017.aspx. This plan and the MTFS describe why and how the county council will meet its vision for:

“A connected Staffordshire, where everyone has the opportunity to prosper, be healthy and happy” Both strategies also show how we will work with Staffordshire’s residents, businesses and our partners to deliver our three priority outcomes, which the people of Staffordshire will:

• Be able to access more good jobs and feel the benefits of economic growth

• Be healthier and more independent • Feel safer, happier and more supported in and by their community

8. To deliver the Strategic Plan, we have our three year business plan. We are now

entering the second year of its implementation and are working with Cabinet, the Senior Leadership Team and partners to establish the specific focus for 2015/16.

9. Our three priority outcomes must remain the driving force, however, particular emphasis will be placed on managing our budgets, responding to the need to improve our health and social system, and providing public services at a more local level to better target different needs and at lower costs.

10. We will be open with our residents, acknowledging that this will be even harder to

deliver into 2015. The changing make-up of the population means that demands

http://www.staffordshire.gov.uk/yourcouncil/strategicplan/strategicplan2012-2017.aspx

http://www.staffordshire.gov.uk/yourcouncil/strategicplan/strategicplan2012-2017.aspx

on our care services are growing as our resources reduce. If we are to meet that demand then we have to ask some hard questions of ourselves and our partners about our priorities and where we can best spend public money.

11. The final draft of the updated business plan will be presented to Full Council for

its agreement at its meeting in February 2015. MTFS Underlying Principles

12. Underpinning the planning framework is the council’s aim of setting a good and

balanced budget:

A good budget means that: • It has a medium term focus, supporting the Leading for a Connected

Staffordshire Business Plan; • Resources are focused on Vision for Connected Staffordshire and priority

outcomes; • It is not driven by short term fixes; • It demonstrates how the county council has listened to consultation with

local people, staff and our partners; • It is transparent and well scrutinised; • It is integrated with the capital programme; and • It maintains financial stability.

A balanced budget means that:

• Income equals expenditure; • Savings targets and investment proposals are credible and achievable; • Key assumptions are “stress tested”.

Medium Term Financial Strategy (MTFS) update 13. The MTFS sets out the financial implications of the council’s Strategic and

Business Plans. The development and refinement of the Strategic Plan is undertaken in conjunction with the financial planning process to ensure that budgets reflect the council’s aims and objectives.

14. The period for the MTFS is five years, which provides a framework that promotes

longer term planning. The Local Government Finance Settlement for 2014/15 included provisional funding amounts for 2015/16 and these have been used to update the MTFS. The Spending Round 2013 announced spending totals for one year only, 2015/16 and another Spending Round will follow in 2015, after the general election. Therefore there is a great deal of uncertainty around the levels of funding available from 2016/17 onwards.

15. Identifying efficiency through innovation and new ways of working has featured

heavily in previous years’ MTFS and, in the light of the current economic climate will continue to be a fundamental part of the council’s plans going forward. The council has a proven track record of delivering savings with £129 million being identified and delivered in the past five years (up to and including 2013/14). The

forecast for the current year is to achieve a further £42.3m of savings making a total of £164 million over six years. The council still has a number of challenges ahead and the way residents’ needs are met and services are provided will need to continue to evolve. The delivery of challenging savings targets and the management of current and future pressures is crucial to the delivery of the MTFS and Strategic Plan.

16. It is now necessary to update the MTFS for the changes and developments since

February. The key elements of the Strategy discussed in the report are: a. The current economic climate b. Impact of government announcements c. Autumn Statement d. Projected pressures and savings options e. Risks f. Capital Programme g. Consultation arrangements h. Select Committee arrangements

Current Economic Climate

17. The Government’s Office for Budget Responsibility (OBR) has direct control over

the forecasts and judgements required to make an independent assessment of the public finances and the economy. The Bank of England continues to exercise control over interest rates and the supply of money.

18. The OBR produces forecasts for the economy and public finances. There are a

number of briefings which are produced throughout the year, setting out best estimates of inflation and other economic measures such as Gross Domestic Product (GDP) over the medium term. Whilst these measures do not necessarily have a direct bearing on council activity, it is important that plans are set with regard to these measures as they are the best estimate of the state of the economy and the impact they may have on council services and funding. The Autumn Statement was announced by the Chancellor on 3rd December and provided further messages about economic growth which are discussed below.

Economic Growth

19. The outlook for growth is slightly less positive as the Bank of England believes

that growth still has some way to improve before we see a real improvement in household income. The Bank is likely to maintain its low interest rate for some time to come with latest predictions suggesting that the rate will not start to rise until the latter half of 2015.

20. The impact of the recession is likely to be experienced for a significant period

after GDP growth returns in terms of increased demand for county council services and also by the people and households that the county council serves.

21. The latest Staffordshire Job Seekers Allowance (JSA) claimant rate has

decreased by 42.1% over the year, standing at 1.1% of the working age population, compared to a claimant rate of 2.6% in Stoke, 2.7% in the wider West Midlands and 2.2% nationally.

22. The following graph demonstrates economic growth (as measured by GDP)

showing that the national position had declined dramatically at the start of the recession. Growth in the first half of 2014 was modest and many other countries have also experienced a slowing of growth this year. However, growth is expected to reach its historical rate of around 2% during 2015.

Source: Bank of England

Inflation Assumptions

23. The Consumer Prices Index (CPI) is the government’s preferred measure of

inflation. However, CPI does not necessarily reflect the situation for the county council. Spending pressures such as increasing prices from independent sector markets and rising energy costs all have a significant impact on county council budgets which deviate from the CPI position.

24. Whilst it is an imperfect measure for the county council directly, it is possible to

gauge the general trend of inflationary pressures from the CPI forecast. Since agreeing the MTFS in February, inflationary pressures have continued to ease and have fallen below the target of 2%. The latest CPI data published for October 2014 reported that CPI was 1.3% compared to 2.2% in the previous October. It is expected that inflation will remain around the 2% target during 2015. The current assumption in the MTFS is that 0% inflation has been allocated to services, with the exception of any contractual commitments.

Consumer Price Index Inflation Projection

Source: Bank of England

Interest Rates

25. The economic outlook regarding interest rates also has an impact on the MTFS

and is reflected in the capital financing budget. The capital financing budget is made up from three component parts as follows:

• The repayment of the principal on our debt; • Payment of interest on our debt outstanding; less • Receipt of interest earned on cash we hold.

26. The interest on debt remains fairly constant due to the long term nature of the

county council’s borrowing. The average rate for interest on debt is just above 4%. The income receipts generated are dependant on the interest rates set by the Bank of England.

27. The Bank of England base interest rate has remained at a historic low of 0.5%

since March 2009, and although interest rates should increase in the future, exactly when and by how much is unknown. The forecast produced by the council’s advisers, Arlingclose Ltd, shows that interest rates are forecast to begin to rise in late 2015 but will remain below 2% for at least the initial two years of the MTFS.

28. On current investments a 1% rise in interest rates generates £1.5m worth of

gross income to the county council. Impact of government announcements 29. On 19th March 2014 the Chancellor of the Exchequer presented his Budget to

Parliament. He reiterated that the current efficiency measures will have to continue in the next parliament, in order to reach a sustained recovery. For the county council and the MTFS the key announcements were as follows:

• The Office for Budget Responsibility forecasts that the deficit will be repaid by 2018/19.

• Highways – an additional £200m was allocated to local authorities to repair potholes (Staffordshire’s share is £4.5m).

• The government intends to revalue the local government pension scheme

and anticipates that savings will arise from this, in 2015/16 and 2016/17.

• The minimum wage has increased to £6.50 from October 2014.

• Enterprise zones will continue to receive a discount on their business rates and enhanced capital allowances for the next three years.

30. The budget announcement followed the Spending Round announced in 2013

which outlined the funding which will be available for local government in 2015/16. The implications of the spending round have previously been reported to Cabinet. To recap, the main points were:

• There will be a further reduction in local government funding of 10.0% in

real terms and 8.2% in cash terms;

• The Troubled Families Programme will be extended to more families from 2015/16, with £200m in funding, led by DCLG and drawn from several government departments;

• Schools funding and the Pupil Premium will be protected in real terms and the new schools funding formula will be introduced from 2016/17;

• The Education Services Grant will be reduced by around £200m in

2015/16 – approximately 20%. This equates to an approximate reduction of £2.7m reduction for the County Council;

31. The spending round was unusual as it only provided information for one year,

2015/16, when it is more usual for spending rounds to provide information for more than one year. This information, together with the 2013 Local Government Finance Settlement, set out the amount of funding available for the county council in 2015/16.

32. The Provisional Local Government Finance Settlement may change the amount of funding allocated to the county council. The outlook from 2016/17 onwards is very uncertain due to the general election and the requirement for another spending review in 2015.

Autumn Statement 33. The Chancellor presented his Autumn Statement on 3rd December, there were

very few references to local government in the statement. Generally the Chancellor painted a picture of a growing economy but with the requirement to continue with the spending plans put in place by the government. The statement contains a commitment to provide local government with funding information

spanning more than year, from the next Spending Review onwards. This is welcome as it provides more certainty and aids planning.

34. A review of business rates was announced and will be published as part of the 2016 Budget. Other changes to business rates were a doubling of the Small Business Rates Relief for another year plus an extension of the cap on business rates at 2%, for an additional year. These changes would impact on local government, however they are being funded by DCLG.

35. For Staffordshire the implications of the Autumn Statement are that funding has been confirmed for a number of road improvement schemes across the county and city areas, such as the A50 improvements and widening the A500 around Stoke. Aside from this impact, there was nothing else in the statement which gives any indication that current assumptions around funding need to be amended at this stage.

36. The statement did not contain any announcement regarding a council tax freeze

grant for 2015/16 or the level of increase which would require a referendum.

37. The Provisional Local Government Finance Settlement is expected to be announced on 17th December. This will contain further detail on the funding available for Staffordshire and Cabinet will be updated on the implications arising from the settlement.

Projected pressures and savings options 38. In the current year, 2014/15, the forecast outturn at Quarter Two, reported to

Cabinet on 15th October, predicted an overspend of £8.6m, this is equivalent to 1.7% of the council’s overall service spending. The majority of this projected overspend is caused by the growth of demand for social care from adults and children – an issue experienced by councils across the country. This pressure is being managed proactively in Staffordshire by better understanding residents’ needs, in order to improve or redesign services, or by working with partners to deliver services differently.

39. It is expected that this approach will result in a reduction in the current projected

overspend by the end of the year. However any remaining overspend will reduce the amount in general balances and use of balances in this way would need to be repaid.

40. When the 2014/15 MTFS was agreed in February, the position for future years

estimated a budget gap of £5.1m in 2015/16 and headroom of £1.1m in 2016/17.

41. Since then services have identified various projected pressures which are required. The main area of demand for council services remains social care, for both adults and children and therefore Children in Need of Care and Support has identified projected pressures relating to: increasing numbers of looked after children despite the success in increasing fostering and adoptions; legislative changes around the ‘Staying Put’ initiative and the safeguarding review and a range of savings that are not achievable, related to increased use of supported accommodation and internal foster carers and staffing.

42. The All Age Disability service has projected pressures mainly relating to increased demand for services together with a projected pressure for increased residential fees arising from the recent review. This investment in residential care is necessary to ensure there are enough high quality places available for those who need them.

43. Taking all the projected pressures into account, this makes a total of £19.7m

associated with issues in the People portfolio, with £0.7m allocated to Place. These new projected pressures have increased the budget gap to £22.7m, as shown in the graph below. The projected pressures are shown in detail, by service, in Appendices 2a to 2d.

44. This overall position meant that there was work to do in order to close the

predicted gap. In accordance with our aim to find more efficient, new ways of working, the process for identifying savings options has been different this year. A group of key officers has focused on the business plan and the delivery of the priority outcomes outlined above. This has meant that the business plan has driven the financial plan with ensuring outcomes are delivered as the top priority. In turn this means that savings options have been generated without loss of focus on the outcomes and also with a cross-cutting emphasis across services.

45. The outcomes and the main savings options associated with each one are listed below:

• Best Start - £1.1m of savings related to redesign and procurement of Child

Health and Wellbeing services, removal of training budgets and a review of the Youth Offending service;

• Enjoying Life - £0.3m relating to the redesign of the Healthier Lifestyles service;

• Great Place to Live - £1.2m mainly relating to reviews of the provision for subsidised public transport services and the extent of the highways network subject to winter maintenance;

• Living Well - £4.4m, most of which relates to a review of the Supporting People service;

• Ready for Life - £3.3m mostly emerging from a different conversation with schools about sharing the cost of decisions such as redundancies and a review of early intervention and prevention services provided by the Local Support Teams;

• Well Run Council - £6.9m relating to a range of initiatives, such as maximising the waste tonnages disposed of at the W2R plant, receiving income from Land Search fees, renegotiation of ICT contracts and the introduction of a charge for the issue and renewal of blue badges.

46. This new approach has been successful in identifying £17.4m of savings options

which can be seen in detail, by service, in Appendices 2a to 2d. Risks 47. There are however a range of risks which need to be carefully monitored and

managed. In some cases the risks may not materialise or may be managed in order to mitigate their impact on the budget.

48. A £3.8bn Better Care Fund (BCF) was announced by the government in the June 2013 Spending Round, to ensure a transformation in integrated health and social care. It creates a local single pooled budget from various funding streams being brought together. The aim is to provide an incentive for the NHS and local government to work more closely together around people, placing their well-being as the focus of health and care services. The focus of the Staffordshire BCF is primarily around older people. Schemes to deliver the Staffordshire BCF in 2015/16 are being drawn up in line with the long term vision called the ‘Frail Elderly Pathway’ and will be submitted to NHS England in early January 2015 for approval.

49. A key requirement of the BCF is to protect social care. The MTFS currently

assumes that the county council will receive £15m from the BCF in 2015/16. There is a risk that not all of this funding will be received as schemes may not start to deliver benefits immediately.

50. The Care Act will come into effect in two stages, phased across 2015/16 and

2016/17, with the main financial impact being felt from 2016/17, when funding reform is implemented. Central government has published indicative funding for 2015/16 as part of the consultation process, but have not provided any information on the level of funding available to support the 2016/17 reforms.

Funding comes from a combination of sources i.e. NHS, BCF and DCLG. It is anticipated that the cost of implementing the Care Act will be £1.9m in 2015/16 and that this will be funded from the BCF. However there is a risk that the authority does not receive sufficient funding to meet the new Care Act requirements.

51. The Stoke on Trent and Staffordshire Partnership Trust became operational on

1st April 2012; the initial contract between the county council and the Partnership Trust was for three years. Therefore the contract is being renegotiated prior to 1st April 2015. There is a risk that the renegotiation could bring an additional cost to the county council.

52. There is also the possibility that existing savings may not be achieved and that is

the case for green waste recycling credits, the level of income generated by Shugborough and an existing road safety saving which may not be achieved in 2015/16.

Sensitivity Analysis 53. In terms of assessing the impact of changes under various scenarios the

following table sets out a guide to the effect of changes to the major cost elements/funding streams:

54. Details regarding the assumptions used in the MTFS for the major cost elements

and funding streams are attached as Appendix 3. Council Tax 55. The county council currently has the lowest council tax of any English county

council. For the past four years the council tax has been either kept the same or reduced. However, the current demands for our services mean that we can no longer maintain this and we need to ask local people to pay a bit more towards the services they need. The current planning assumption is that council tax will increase by 1.95% in 2015/16 and in future years. This is equivalent to an increase of 39p per week at a Band D rate.

Impact of (+ or -) Equates to (+ or –) 1% Council Tax

£ 2.7 million

1% Business Rates growth (SCC receives 9% of the total collected rates across Staffordshire)

£2.8m across Staffordshire, of which SCC receives £250k

(9%) 1% Pay award (excludes staff funded from specific grant (e.g. Dedicated Schools Grant)

£ 1.4 million

1% Non-pay budget

£ 1.7 million

1% Interest (on balances) £ 1.5 million

56. Based on the options shown in Appendices 2a to 2d, the MTFS still has a gap of £6.9m in 2015/16. However there is headroom in the later years of the period which means that the MTFS is balanced in the medium term. This is shown in the graph below. However, the exact level of government funding the county council will receive for 2015/16 and future years will not be known until the Provisional Local Government Finance Settlement is announced in late December.

Capital Programme 57. The draft capital programme for 2014/15 totalled £119.2m and at the Second

Quarter monitoring report, the programme had increased to £131.5m due to additional allocations being received. The main increase is in the area of Basic Need which provides funding for additional school places.

58. The proposed 2015/16 capital programme stands at £141.4m currently, although announcements regarding allocations from central government have not yet been received. Again, Basic Need is a high priority area of spend with new schools and extensions to existing schools being planned. The draft capital programme is shown in more detail at Appendix 4.

59. During 2014/15, the county council was successful in a bid for the Local Growth

Fund and therefore this funding is anticipated in 2015/16. As a result, the Economic Planning capital programme has increased by £33.7m from the 2014/15 programme. This investment will mean increased economic prosperity in Staffordshire with a number of initiatives planned that will increase the number of jobs available and provide businesses with new opportunities.

60. In recent years the level of capital receipts generated has reduced due to property market conditions. The latest forecast of capital receipts reveals that this situation is likely to continue so a change in emphasis is required to generate additional capital funding.

61. As part of their service plan preparations, services have been encouraged to

undertake a review of the projects contained in the existing capital programme to identify scope for diverting capital resources to other projects and programmes. Any investment required to pump prime initiatives designed to deliver long term, sustainable efficiency savings will further increase the pressure on capital funding streams.

Consultation 62. Effective consultation is a key principle of a good and balanced budget. We want

to make sure that we are tackling what really matters to people in Staffordshire therefore good consultation is an integral part of “stress testing” the assumptions included in the MTFS to ensure we meet residents’ needs.

63. For many years the council has undertaken a range of consultation events locally

such as focus groups, residents’ and citizens’ panel surveys and other specific events. Throughout 2014 we have consulted with Staffordshire’s residents to understand their wants, needs and aspirations and these have underpinned the development of our vision, priority outcomes, values and behaviours. Early in the New Year, consultation will take place with trade unions and the business community. Further specific consultation will take place as required, if there are any proposed changes to services. This approach, together with the outcomes mentioned above etc, informs risk and community impact and has resulted in the proposed allocation of the budget across services.

Scrutiny Arrangements 64. Scrutiny of the MTFS has been undertaken by a working group of the Corporate

Review Committee. Last year’s work has been reviewed to continue with the development of the scrutiny process and key areas of risk were identified for further detailed examination. This ensured that scrutiny efforts have been focussed on key priority and high risk areas. It is requested that the Committee also scrutinise the projected pressures and savings options in this report and report their findings to Cabinet in February.

Risk Assessment and Robustness of Budget 65. The robustness of the budget when considered in light of the finite resources

available to the county council and how politically it is allocated across the services is essentially a judgement about the assessment of risk. The main risk faced by the council this year is the uncertainty about how much funding will be received from Government. The other key risks identified at this stage that need to be managed effectively are set out below.

• The biggest risks are around social care and include the Better Care Fund

and the Care Act, plus the renegotiation of the contract with the Staffordshire and Stoke on Trent Partnership Trust;

• The impact on income from Business Rates in the current economic climate;

• The potential impact of borough and district councils being unable to collect all council tax owed from those affected by the government’s decision to localise council tax benefit support;

• Spending exceeding budgets and/or income falling short of budgets; • Savings options identified and assumed in the MTFS not being achieved; • Plans not being delivered and outcomes not achieved; • The impact of the current economic climate, including increased

inflationary pressures, interest rate changes, reduced levels of income from fees and charges for council services etc;

• Increased demand for council services above estimates, including the impact of welfare benefit changes;

• Impact of any cost shunting from other agencies to the county council; • Expected income from other agencies not materialising.

66. Failure to deliver the savings identified will jeopardise the council’s MTFS and the

delivery of the Strategic Plan. In order to strengthen the processes already put in place by commissioners for delivering these savings, the accountability letters will focus on delivery of outcomes and performance as well as financial responsibility. The council has a proven track record of delivering savings. Action to deliver the savings included in the MTFS has commenced supported by the Transformation Support Unit and closely monitored by the council’s transformation governance arrangements including regular reports to informal Cabinet, Select Committees, SLT, Delivery Board, Service and Project Boards.

67. With regard to the risk of overspending against budget, thorough budget

preparation and detailed monitoring during the year coupled with the personal financial accountability framework introduced in 2007 minimises this risk. Furthermore Finance Units are able to identify any concerns at an early stage, advise management teams and recommend measures to mitigate the impact. Budget monitoring reports are regularly considered by management teams and by Select Committees, Portfolio Holders, SLT and Cabinet on a quarterly basis.

Conclusions 68. By focusing on what matters most to people in Staffordshire and finding new,

more efficient and effective ways of working, we have made a good start on the transformation of Staffordshire County Council in order to meet the needs of local people today and tomorrow. We are continuing to work with residents, voluntary groups, partners or the private sector to find new ways to improve lives. Our approach is about listening, creating the right conditions for Staffordshire’s people to flourish, and allowing people to get on with creating their own prosperous future. In turn this allows us to focus our efforts and limited resources on those who need us the most.

69. It is essential for us to work closer and smarter with our public sector partners who together spend over £7billion a year of public money in Staffordshire. We have a duty to make sure this money is spent as wisely and effectively as it can be to reduce the burden on taxpayers, particularly as we face growing demand for our services especially around care. This will be hard for us all as we come to

terms with how we need to respond differently to the way we live today, not all of which will feel positive on a first look.

70. We will be talking with residents and partners in the months ahead about the role

of the county council and will listen further to their ideas on how we must adapt to changing circumstances and help ensure that everyone in Staffordshire can proper, be healthy and be happy.

Andrew Burns Jacqui McKinlay Director of Finance and Resources Director of Strategy and

Customer Services

Appendix 1 Equalities implications: Equalities implications arising from the issues covered by this report will be incorporated into outcome and service plans. Equality Impact Assessments will be undertaken for each specific issue. Legal implications: At this stage in the development of the MTFS there are no specific legal implications presented by this report. Resource and Value for money implications: The Resource and Value for Money implications are set out in the report. Risk implications: As outlined in paragraphs 65-67 of the report. Climate Change implications: We have considered the impacts on climate change whilst developing the MTFS and have, in line with the county council’s key priority concentrated on reducing our carbon footprint in future service delivery plans. As an organisation, over the medium term we are encouraging greater flexible working which aims to reduce emissions even further. Health Impact Assessment The impact on public health has been considered whilst developing the MTFS. Innovation and Efficiency options proposed aim to improve and promote the health of citizens through closer working with the NHS. Further implications will be incorporated in the outcome plan for Staffordshire as a place where people live longer, healthier and more fulfilling lives. Report authors: Kate Waterhouse Insight, Planning and Performance 4th Floor, No.1 Staffordshire Place Tel – 01785 277893 E mail – [email protected] Rachel Spain Corporate Finance 2nd Floor, No. 2 Staffordshire Place Tel – 01785 854455 E mail – [email protected]

mailto:[email protected]

mailto:[email protected]

PeopleProjected Pressures, Savings Options and Investments

Appendix 2a

Description Links to Outcomes

2015/16 £m

2016/17 £m

2017/18 £m

2018/19 £m

2019/20 £m

Children in Need of Care and Support

Total Service Spending Pressures Approved in February 2014 0.079 0.429 0.779 1.129 1.129

Projected Changes to Original Service Spending Pressures

To increase staffing levels in safeguarding units and provide interim resources to deal with issues identified in Local Support Teams, in order to address the concerns raised by a recent safeguarding inspection. The inspection highlighted an urgent need to speed up assessments of children in need and high caseloads of staff in safeguarding units, which was impacting on service provision and the quality of supervisions in certain areas. It also highlighted further work required to embed more consistent assessment, planning and recording within Local Support Teams.

0.232 0.232 0.232 0.232 0.232

The use of Supported Living placements for young people is to be extended. This is a very positive option for some young people as it acts as a stepping stone to leaving care at 18. An increase in the number of children being adopted will also take place and the process will be streamlined so that children are placed in suitable placements more quickly. In addition, more use will be made of in-house foster placements which are less costly than alternative providers.

0.203 0.203 0.203 0.203 0.203

Non-delivery of savings in respect of increasing internal foster carer placements and reducing external foster care placements. 2.357 2.357 2.357 2.357 2.357

Total Projected Changes to Service Spending Pressures Approved in February 2014 2.792 2.792 2.792 2.792 2.792

New Service Projected PressuresTemporary staff funded from safeguarding grant 0.232 0.232 0.232 0.232 0.232There is currently no indication that the Adoption Reform Grant will continue. Staff currently funded from this grant are needed to deal with continued level of adoptive placements. 0.320 0.320 0.320 0.320 0.320

Staying Put Iniative - additional placement costs due to children being able to choose to stay in care until they are 21. 0.800 1.200 1.200 1.200 1.200

Evolve Contract - additional staff were agreed following OFSTED inspection, to reduce workers caseloads. 0.100 0.100 0.100 0.100 0.100The Children's safeguarding Inspection in January 2014 has lead to the need to provide interim resources to deal with issues indentified within the inspection. 0.400 0.400 0.400 0.400 0.400

The number of children in Staffordshire who require our care continues to grow. In the last 12 months the average increase in the number of children we care for has been around 10%. This is a national trend, although we have low numbers of children we care for compared to other areas of the country. Because our numbers are still growing we need to increase the amount we spend in order to keep these children safe from harm.

1.200 1.200 1.200 1.200 1.200

New Service Projected Pressures Total 3.052 3.452 3.452 3.452 3.452

Total Service Savings Approved in February 2014 (0.380) (2.210) (4.310) (4.310) (4.310)


Appendix 2a


2015/16 £m

2016/17 £m

2017/18 £m

2018/19 £m

2019/20 £m

Projected Changes to Original Service SavingsAs we commision more services, the council expects all its major service providers to deliver outcomes whilst also delivering annual efficiencies. The previous MTFS expected that Families First will make at least a 3% annual saving from 2015/16 onwards. This saving will now start from 2016/17.

0.000 1.580 3.680 3.680 3.680

Total Projected Changes to Service Savings Approved in February 2014 0.000 1.580 3.680 3.680 3.680

Total Invest to Save Approved in February 2014 (1.956) (1.956) (1.956) (1.956) (1.956)

Projected Changed Invest to SaveSavings in placement costs through a transfer from external residential and independent fostering placements to in-house fostering - revenue saving. 0.964 0.964 0.964 0.964 0.964

Reduction in staff capacity from 2015/16 in recognition of the changing demands from the strategic shift - revenue saving. 1.014 1.014 1.014 1.014 1.014

Total Projected Changes to Invest to Save 1.978 1.978 1.978 1.978 1.978

Long Term Conditions


New Service Projected PressuresResidential Fees Review - Top Up Changed. This amount was funded from contingency in 2014/15. 0.250 0.200 0.200 0.200 0.200Various Minor Budget Corrections 0.270 0.270 0.270 0.270 0.270New Service Projected Pressures Total 0.520 0.470 0.470 0.470 0.470


New Service Savings Options Efficiency savings arising from the Medequip contract. Living Well (0.900) (0.900) (0.900) (0.900) (0.900)New Service Savings Options Total (0.900) (0.900) (0.900) (0.900) (0.900)

Invest to Save Approved in February 2014 Total (1.200) (1.200) (1.200) (1.200) (1.200)


Appendix 2a


2015/16 £m

2016/17 £m

2017/18 £m

2018/19 £m

2019/20 £m

All Aged Disability


New Service Projected PressuresResidential Fees Review - Learning Disability impact. This amount was funded from contingency in 2014/15. 0.900 0.900 0.900 0.900 0.900Independent Futures - Currently forecast to overspend by at least £3.900m. This is a result of additional placement costs in supported living and residential care. 3.900 3.000 3.000 3.000 3.000

Redundancy Loans within Care. 0.250 0.250 0.250 0.250 0.000New Service Projected Pressures Total 5.050 4.150 4.150 4.150 3.900



Mental Health


New Service Projected PressuresResidential Fees Review - Top Up Changed, funded from contingency in 14/15 0.200 0.200 0.200 0.200 0.200New Service Projected Pressures Total 0.200 0.200 0.200 0.200 0.200




Appendix 2a


2015/16 £m

2016/17 £m

2017/18 £m

2018/19 £m

2019/20 £m

Health and Care Economy

New Service Projected PressuresProvision to meet increased demands on activity in the Health and Care Economy e.g. All Aged Disability, Better Care Fund, Mental Health and longer term care of the elderly. 5.000 5.000 5.000 5.000 5.000


Education and Wellbeing

Total Service Spending Pressures Approved in February 2014 0.000 (0.200) (0.200) (0.200) (0.200)

Projected Changes to Original Service Spending PressuresThe council purchases around £23m of services from Entrust each year. Given the challenging financial environment commissioners will lead a review with Entrust around where costs can be eliminated or the level of non-essential services reviewed.

0.750 0.750 0.750 0.750 0.750



New Service Savings Options

The implementation of a fairer and more equitable sharing of costs between the council and schools. This will align management and financial responsibility for making a redundancy in schools. If a school takes the decision to make a redundancy the school will be expected to pay, if the authority makes the decision the council would pay. A range of measures will be put in place to help schools in immediate financial difficulty as a result of redundancy costs.

Ready for Life (1.000) (1.000) (1.000) (1.000) (1.000)

Business Improvement are to lead a review into maximising the value of the Entrust contract, making efficiencies from current under utilisation of the Entrust contract by reducing spend in a range of areas currently provided by a range of providers.

Ready for Life (0.400) (0.400) (0.400) (0.400) (0.400)

By undertaking a rigorous MTFS process within services currently funded from ring fenced grants some capacity has emerged within these grants. It is proposed that we utilise this capacity within the grants to commission services currently paid for by mainstream SCC funding

Ready for Life (0.250) (0.250) (0.250) (0.250) (0.250)

This saving consists of 3 strands: 1) Reduction in historic pension liabilities on former FE and HE employees2) Reduction in actuarial strain on new school based staff redundancy policy 3) Areas of ongoing underspend across the portfolio

Ready for Life (0.100) (0.100) (0.100) (0.100) (0.100)


Appendix 2a


2015/16 £m

2016/17 £m

2017/18 £m

2018/19 £m

2019/20 £m

Currently the authority provides a range of services to schools and academies. Over time this relationship will change and this saving reflects an initial commitment to review aspects of the services provided. The first stage of this conversation will follow on from the revised redundancy cost sharing agreement and focus on the costs of early retirement as this currently falls on the county council - it is proposed to re-align the management and financial responsibility associated with this along the same lines as the redundancy cost sharing agreement

Ready for Life (0.100) (0.100) (0.100) (0.100) (0.100)

This will be found from not replacing staff that are known to be leaving the authority and instead re-organising workload within the team Ready for Life (0.060) (0.060) (0.060) (0.060) (0.060)

Efficiencies across the Wellbeing area from targeted changes to the activities commissioned primarily within the carers services when services are retendered during 2015/16

Great Place to Live (0.100) (0.100) (0.100) (0.100) (0.100)

New Service Savings Options Total (2.010) (2.010) (2.010) (2.010) (2.010)

Safety


Projected Changes to Original Service SavingsA gradual phasing out of support to the Private, Voluntary and Independent Early Years sector will continue as they become more self sufficient and require less support. This new relationship will now develop at faster pace and will reflect the fact that these establishments are ultimately accountable for delivering high quality services to parents and children.

Best Start (0.830) (0.330) (0.330) (0.330) (0.330)

A strategic review of the services formerly funded by the Supporting People grant will take place. This will transform them into a prevention resource focused on delivering outcomes which are aligned to the Health and Wellbeing Board’s Strategic Plan. The new approach will require a fundamental shift in the contracting approach. There is likely to be a move away from the current models of delivery and traditional service design.

Living Well (3.200) (4.600) (4.600) (4.600) (4.600)

Total Projected Changes to Service Savings Approved in February 2014 (4.030) (4.930) (4.930) (4.930) (4.930)


Reduction in Safer Communities commissioning budget Great Place to Live (0.100) (0.100) (0.100) (0.100) (0.100)

A review of early intervention and prevention services (tier 2) across LSTs and other services, including Education Welfare. Ready for Life (1.000) (2.000) (2.000) (2.000) (2.000)

A review of the service to be undertaken to embed a more integrated approach to T3 activities across services. Target saving equates to approximately 10% of the SCC contribution to the service Best Start (0.150) (0.150) (0.150) (0.150) (0.150)

Review of the commisioning environment and arrangements. Ready for Life (0.135) (0.135) (0.135) (0.135) (0.135)New Service Savings Options Total (1.385) (2.385) (2.385) (2.385) (2.385)


Appendix 2a


2015/16 £m

2016/17 £m

2017/18 £m

2018/19 £m

2019/20 £m

Business Improvement

Total Service Spending Pressures Approved in February 2014 0.000 0.000 (0.050) (0.050) (0.050)

New Service Projected PressuresThe Children's safeguarding Inspection in January 2014 has lead to the need to provide interim resources to deal with issues indentified within the inspection. 0.312 0.312 0.312 0.312 0.312



Total People Pressures 21.240 23.830 27.008 27.358 27.108

Total People Savings (24.464) (38.471) (38.702) (38.934) (38.934)

Total People Investments (1.478) (1.478) (1.478) (1.478) (1.478)People Grand Total (4.702) (16.119) (13.172) (13.054) (13.304)

PlaceProjected Pressures, Savings Options and Investments

Appendix 2b


2015/16 £m

2016/17 £m

2017/18 £m

2018/19 £m

2019/20 £m

Built County


Projected Changes to Original Service Spending PressuresDetailed review of current service levels focussing on potential part night switch off of street lights has been undertaken. Proposal will no longer be pursued. 0.100 0.200 0.300 0.400 0.400



New Service Savings OptionsCurrently 329 patrols with annual spend of approx. £1.4m. Whole-scale review of provision could be made as part of a wider community engagement exercise. As an example Northamptonshire have made this almost an externally funded area, with just a small number of priority sites retained by the Council and any other operational patrols funded or supported by the community and / or schools.

Ready for Life (0.250) (0.500) (0.500) (0.500) (0.500)

Combined spend on parish lengthsmen scheme and Neighbourhood Highway Team (amenity maintenance) provision is approx. £1m. Key to the conversation is exploring how communities, parishes and volunteering groups could support or adopt these services locally in order for Council funding to be distributed more evenly across all parishes, and potentially reduced. This needs to be considered as part of Localities agenda and is likely to be linked to the ADEPT pilot.


Reviewing winter gritting routes to identify opportunities for reduced spend. The cost of reorganisation will limit potential savings, however exploring how we could extend local support to manage the impact of any change would be part of local conversations on the issue.


The income budget had been amended pending the outcome of a national legal dispute, however, there has recently been a settlement. In spite of a small element of compensation to be paid, authorities are able to continue charging for certain elements. An income target of £0.3m can therefore be reinstated.

Well Run Council (0.300) (0.300) (0.300) (0.300) (0.300)


Rural County

New Service Savings OptionsIntroduction of car parking charges on some northern country parks is being investigated. Initial investment required to cover set-up costs, should be recovered in 1 to 2 years. Proposals will include consideration of a permit for regular/local users to limit the cost.

Well Run Council (0.020) (0.020) (0.020) (0.020) (0.020)


Sustainable County



Appendix 2b


2015/16 £m

2016/17 £m

2017/18 £m

2018/19 £m

2019/20 £m

Projected Changes to Original Service Spending PressuresCurrent base budget assumes a continued reduction in the overall amount of waste tonnages. Latest projections reveal this is unlikely to occur and the budget needs to be uplifted to reflect forecast tonnage levels based upon the latest available information.

0.500 0.500 0.500 0.500 0.500

Rationalisation of household waste site provision. 0.280 0.280 0.280 0.280 0.280



New Service Savings OptionsCharges can be made for rubble and builders waste at HWRC since, technically, this is not household waste. Potential income could be in the order of £100k. Consultation would probably reduce benefit to 50% in 2015/16. Wider benefits include simplification of trade/domestic waste and cross-boundary conflict.

Well Run Council (0.050) (0.100) (0.100) (0.100) (0.100)

Negotiations are ongoing with the operator regarding maximising the capacity of the Plant with additional tonnages. This will require the approval of the Environment Agency and Planning consent. Estimated benefit is in the order of £300k after taking account of Partner share.

Well Run Council (0.300) (0.300) (0.300) (0.300) (0.300)


Transport and Connected County


Projected Changes to Original Service Spending PressuresChange in costs of home to school transport relating to number of school days in a financial year. (0.370) 0.120 0.040 (0.010) (0.490)Expected changes in pupil numbers and diversity in destination bases. 0.160 0.320 0.120 (0.080) 0.200Total Projected Changes to Service Spending Pressures Approved in February 2014 (0.210) 0.440 0.160 (0.090) (0.290)


Appendix 2b


2015/16 £m

2016/17 £m

2017/18 £m

2018/19 £m

2019/20 £m


New Service Savings OptionsThere is more flexibility around potential changes to the Young Persons Travel Card scheme. The charge per trip remains unaltered at £1 – so no recognition of inflationary pressure since inception. Possible savings:• Increase charge to say £1.10 (saving £130k)• Increase charge to say £1.20 (saving £230k)Need to look at product development in order to then increase charges.

Well Run Council (0.100) (0.200) (0.200) (0.200) (0.200)

The net budget for supported public transport services is currently £2.5m. Work to date has concentrated on moving passengers from bespoke services on to public transport to reduce costs and support bus services available to the whole community. In order to meet current MTFS pressures some high subsidy per trip services will need to be modified or potentially removed from the current supported network.



Business and Enterprise County

Total Service Spending Pressures Approved in February 2014 (0.387) (0.422) (0.462) (0.462) (0.462)

Projected Changes to Original Service Spending PressuresRealignment of service reflecting the likely outcome of the Business & Community Protection project 0.050 0.000 0.000 0.000 0.000Total Projected Changes to Service Spending Pressures Approved in February 2014 0.050 0.000 0.000 0.000 0.000




Appendix 2b


2015/16 £m

2016/17 £m

2017/18 £m

2018/19 £m

2019/20 £m

Tourism and Cultural County


New Service Savings OptionsSuggested to explore a five year managed withdrawal from this activity, looking to other organisations and mechanisms to fulfil the role.Potential areas of saving include reduction in support for county’s food festivals, removal of support for Enjoy Burton, reduction / removal of support for Young Chef and amalgamation of Good Food and Tourism awards. Merger with Stoke for DMP and visitor economy.

Enjoying Life (0.020) (0.020) (0.020) (0.020) (0.020)

The complete withdrawal of the Mobile and Travelling Library Service could generate savings in the order of £0.5m. Following the review of static libraries, public consultation is required to understand potential impact on communities of a mobile/travelling library review. Detailed work is also necessary to assess implications of early termination of vehicle leases, which would offset any savings in year 1. Retaining travelling libraries would reduce the saving by £0.150m.

Enjoying Life 0.000 (0.350) (0.350) (0.350) (0.350)

Potential for further digitisation of records to increase income opportunity, but not until 2016/17 due to timescale to digitise. Enjoying Life 0.000 (0.030) (0.030) (0.030) (0.030)


Total Place Pressures 0.668 2.903 2.433 5.643 5.843

Total Place Savings (4.108) (6.773) (7.623) (7.973) (8.298)

Total Place Investments (0.310) (0.310) (0.310) (0.310) (0.310)Place Grand Total (3.750) (4.180) (5.500) (2.640) (2.765)

Corporate / Support ServicesProjected Pressures, Savings Options and Investments

Appendix 2c

Description Link to Outcomes

2015/16 £m

2016/17 £m

2017/18 £m

2018/19 £m

2019/20 £m

Finance and Resources

Total Service Spending Pressures Approved in February 2014 (0.117) (0.117) (0.117) (0.117) (0.117)


Projected Changes to Original Service Savings

Savings arising out of the Public Sector Network contract and related infrastructure. Well Run Council (0.350) (0.196) (0.196) (0.196) (0.196)

Total Projected Changes to Service Savings Approved in February 2014 (0.350) (0.196) (0.196) (0.196) (0.196)


Estimated procurement savings from "deep dive review". Well Run Council (0.250) (0.250) (0.250) (0.250) (0.250)

HR Shared Service Centre - Miscellaneous savings initiatives. Well Run Council (0.015) (0.015) (0.015) (0.015) (0.015)

Multiple savings initiatives re.: automation; customer self-service; standardisation & simplification; problem and performance.management.

Well Run Council (0.178) (0.399) (0.509) (0.572) (0.572)

Via a review of printing plus benefits accruing from standardisation, improved asset management and application consolidation.

Well Run Council (0.072) (0.072) (0.168) (0.168) (0.168)


Total Investment Approved in February 2014 (0.120) (0.120) (0.120) (0.120) (0.120)


Strategy and Customer Service



Appendix 2c


2015/16 £m

2016/17 £m

2017/18 £m

2018/19 £m

2019/20 £m

Projected Changes to Original Service Savings

Increase in registration office marriage fees. Well Run Council (0.100) (0.100) (0.100) (0.100) (0.100)

Review and restructure of functions to match business need. Well Run Council (0.116) (0.116) (0.116) (0.116) (0.116)

Savings achieved through channel shift, technology investment, and process efficiencies. Well Run Council (0.050) (0.050) (0.050) (0.050) (0.050)

Funding for Contact Centre staffing. 0.160 0.160 0.160 0.160 0.160Transfer of roles to Commissioning Delivery Hub. 0.073 0.073 0.073 0.073 0.073Total Projected Changes to Service Savings Approved in February 2014 (0.033) (0.033) (0.033) (0.033) (0.033)


Reshaping and re-organisation of roles to provide strategic focus and to allign work to grading. Well Run Council (0.029) (0.029) (0.029) (0.029) (0.029)

Review of equalities work and needs. Well Run Council (0.029) (0.029) (0.029) (0.029) (0.029)

Reduce My Staffordshire from 4 to 3 editions and increase editions of digital My Staffordshire Extra. Well Run Council (0.039) (0.039) (0.039) (0.039) (0.039)

End public affairs software subscription. Well Run Council (0.019) (0.019) (0.019) (0.019) (0.019)

Restructure of Registration Services team. Well Run Council (0.050) (0.050) (0.050) (0.050) (0.050)

Introduction of a charge for the issue and renewal of blue badges. Well Run Council (0.198) (0.198) (0.198) (0.198) (0.198)

Generating income through advertising space on county council assets is to be explored as a corporate initiative.

Right for Business 0.000 (0.100) (0.100) (0.100) (0.100)


Democracy and Transformation




Appendix 2c


2015/16 £m

2016/17 £m

2017/18 £m

2018/19 £m

2019/20 £m


Removal of court fee pressure previously absorbed within Legal services budget. Well Run Council (0.250) (0.250) (0.250) (0.250) (0.250)

Restructure of childcare and management of counsel budget, legal management of debt, rights of way, trainees, legal support to education litigation.

Well Run Council (0.124) (0.149) (0.149) (0.149) (0.149)

Achieved through voluntary redundancies and further flexible working. Well Run Council (0.075) (0.075) (0.075) (0.075) (0.075)

Removal of Chief Executives corporate initiatives budget. Well Run Council (0.075) (0.075) (0.075) (0.075) (0.075)

Miscellaneous savings within Member and Democratic Services. Well Run Council (0.025) (0.025) (0.025) (0.025) (0.025)


Total Corporate / Support Pressures 0.053 0.158 0.220 0.220 0.220Total Corporate / Support Savings (2.297) (2.927) (3.186) (3.312) (3.312)Total Corporate / Support Investments (0.130) (0.140) (0.140) (0.140) (0.140)Corporate / Support Grand Total (2.374) (2.909) (3.106) (3.232) (3.232)

Public HealthProjected Pressures, Savings Options and Investments

Appendix 2d


2015/16 £m

2016/17 £m

2017/18 £m

2018/19 £m

2019/20 £m

Public Health

New Service Savings OptionsEfficiency savings from redesign and procurement of Child Health and Wellbeing services Best Start (0.153) (0.153) (0.204) (0.204) (0.204)

Efficiency savings from redesign and procurement of Healthier Lifestyles services. The redesigned service has three components: Locality based commissioning of activities; an information, advice, guidance and referral hub; and integrated healthy lifestyle services.

Enjoying Life (0.265) (0.265) (0.265) (0.265) (0.265)

Community Wellbeing fund ceased in 2014/15 Living Well (0.311) 0.000 0.000 0.000 0.000New Service Savings Options Total (0.729) (0.418) (0.469) (0.469) (0.469)

Total Public Health Pressures 0.000 0.000 0.000 0.000 0.000Total Public Health Savings (0.729) (0.418) (0.469) (0.469) (0.469)Total Public Health Investments 0.000 0.000 0.000 0.000 0.000Public Health Grand Total (0.729) (0.418) (0.469) (0.469) (0.469)

Appendix 3

Major Assumptions Used in MTFS Year-on-Year Increases

2015/16 2016/17 2017/18 2018/19 2019/20 Staffing costs Pay 2.2% 2.0% 2.0% 2.0% 2.0% Local Government Pension Scheme increases

1.0%

1.0%

1.0%

1.0%

1.0%

General running costs Prices (including internal recharges from trading services)

0.0%

2.0%

2.0%

2.0%

2.0%

Contractual inflation Various 2.0% 2.0% 2.0% 2.0% Income (standard allocation) 2.0% 2.0% 2.0% 2.0% 2.0% Utility / Running Expenses Electricity 10.0% 10.0% 10.0% 10.0% 10.0% Gas 10.0% 10.0% 10.0% 10.0% 10.0% Business Rates bills 2.0% 2.9% 3.4% 3.6% 3.6% Water1 2.5% 2.5% 2.5% 2.5% 2.5% Petrol 2.2% 2.9% 3.4% 3.6% 3.6% Diesel 2.2% 2.9% 3.4% 3.6% 3.6% In-Year Increases Interest Rates Interest on investments 0.6% 1.10% 1.60% 2.00% 2.50% Interest on debt 4.35% 4.43% 4.61% 4.74% 4.94% General Funding New Homes Bonus TBC Loss of Revenue Support Grant -£29.1m TBC Council Tax 1.95% 1.95% 1.95% 1.95% 1.95%

1 Water Bill increases are set by OFWAT. These have been capped for the 5 year period at the previous Novembers RPI inflation rate plus 0.5%

Appendix 4

2015/16 2016/17 2017/18 2018/19 2019/20£m £m £m £m £m

PeopleBasic Need Works 18.864 7.715 6.586 6.586 6.586Maintenance and Replacement 0.146Special Programmes 15.372 13.259 11.578 11.578 11.578Childrens Projects 0.133 0.133 0.133 0.133 0.133Care & Independence 9.806 7.897 2.567Sub Total 44.321 29.004 20.864 18.297 18.297

PlaceBuilt Environment 31.268 32.912 27.890 22.990 22.990Economic Planning & Future Prosperity 57.335 31.968 26.151 10.104 0.200

Sustainable County 1.785

Rural County 0.500 0.500 0.500 0.500 0.500Tourism & Cultural County 1.000Sub Total 91.888 65.380 54.541 33.594 23.690

Corporate / Support ServicesTrading Services - County Fleet Care 0.900 0.900 0.900 0.600 0.600

Property Consultancy 1.420 1.300 1.300 1.300 1.300Corporate Leased Equipment 0.500 0.500 0.500 0.500 0.500Sub Total 2.820 2.700 2.700 2.400 2.400

Sub Total Capital Programme 139.029 97.084 78.105 54.291 44.387

Schools Devolved Capital 2.343 2.343 2.343 2.343 2.343

Draft Capital Programme 141.372 99.427 80.448 56.634 46.730

Draft Capital Programme 2015/16 to 2019/20

cabinet meeting on 17th december 2014 financial...

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