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Financial Outlook and Update on Parish Precepts

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

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Financial Outlook and Update on Parish Precepts

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

  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

  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

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

  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

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

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

  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

  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

  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

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

  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?

  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

  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

  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

  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

  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?

  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

  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?

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