Borough of Poole Cllr Elaine Atkinson Leader of the Council Budget & Council Tax Setting 2015/16 MEETING WITH REPRESENTATIVES OF RESIDENTS’ ASSOCIATIONS AND COMMERCE & INDUSTRY

Agenda Background – The budget processBackground – The budget process National Context – Why Austerity NeededNational Context – Why Austerity Needed 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 – Future Impact of AusterityLocal Context – Future Impact of Austerity National Context – Revenue Spending PowerNational Context – Revenue Spending Power Local Context – Dorset Council Tax RatesLocal Context – Dorset Council Tax Rates 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 Steps to balance the BudgetNext Steps to balance the Budget

Background - Budget Process Changed from 2014/15 onwards to reflect;Changed from 2014/15 onwards to reflect; No Overall Control No Overall Control Improve Overview & Scrutiny of MTFP Improve Overview & Scrutiny of MTFP Cross Party Budget Working Group establishedCross Party Budget Working Group established Meetings Generally Monthly Meetings Generally Monthly Council Efficiency & Effectiveness O&SC responsible for overall scrutiny of the budgetCouncil Efficiency & Effectiveness O&SC responsible for overall scrutiny of the budget Quarterly Quarterly Other Overview & Scrutiny CommitteesOther Overview & Scrutiny Committees Consider significant changes in policy or service levels Consider significant changes in policy or service levels (Health & Social Care OSC considered changes to the Fairer Contribution policy and Local Authority Trading Company)

National Context – Why Austerity Needed National Public Sector Net Debt at April 2014 = £1,270,000,000,000

Local Context – Where the money comes from

Local Context – Impact of Austerity on Poole 56% Cumulative annual reduction in core Government funding since 2010

Local Context – Future Impact of Austerity on Poole

Poole – Revenue Spending Power

Dorset Council Tax Rates

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

15/1616/1717/18Total £m Growth Pressures Core Government funding Adult Social Care - Growth Pay award Inflation, other growth pressures, other adjustments Incremental Drift Children’s Social Care Growth1.0 National Insurance (current rebate withdrawn Single State Pension) 1.0 Transport Inflationary and Other Cost Pressures Waste Disposal Costs (Falling price of recyclate materials, inflation etc.) Other Government Grants Reductions (Local Housing Provision / Housing Benefits Administration) Children’s Services (investment /SEN Transport / Early Years Help review) /14 Budget (reserves completed) 0.3 Investment in Council Priorities (one-off 2014/15 only) (0.5) Total Additional Annual Pressures Cumulative Pressures Medium Term Financial Plan 2015 to 2018 (part 1)

15/1616/1717/18Total £m Extra Resources, Savings & Efficiencies General Savings and Efficiency Proposals(4.3)(1.2) (6.7) Financial Planning Reserve - Application(2.8) Council Tax Increases (2016/ /18) (1.3) (2.6) Adult Social Care Savings & Efficiencies(1.7)(0.3)(0.2)(2.2) Council Tax – Tax Base Increase (new properties, expenditure LCTSS, collection levels) (0.8)(0.5)(0.6)(1.9) New Homes Bonus (New properties) (0.6)(0.5)(1.1) Council Tax Freeze Grant (acceptance planning assumption for 2015/16) (0.7) Adult Social Care Fairer Contributions (Proposed Changes to scheme) (0.6)(0.1)(0.7) Local Council Tax Support Scheme (Approved changes to scheme although proposal only for 2016/17) (0.2) (0.4) Council Tax Surplus Distribution(0.1) Additional Annual Resources & Savings(11.8)(3.3) (18.4) Cumulative additional Resources & Savings(11.8)(15.1)(18.4) Cumulative MTFP – Net Resource Gap Medium Term Financial Plan 2015 to 2018 (Part 2)

Next Steps to balance the Budget Continue to Lobby Government for additional resources Continue to Lobby Government for additional resources Continue dialogue with Dorset Clinical Commissioning Group (CCG) to try and get a further Better Care Fund contribution to the protection of Adult Social Care Services (£1m already assumed). Continue dialogue with Dorset Clinical Commissioning Group (CCG) to try and get a further Better Care Fund contribution to the protection of Adult Social Care Services (£1m already assumed). Review of Adult Social Care Growth pressures for known individuals and the latest in-year emerging trends. Review of Adult Social Care Growth pressures for known individuals and the latest in-year emerging trends. Review of Other Growth Pressures such as those related to energy costs. Review of Other Growth Pressures such as those related to energy costs. Review of in-year position and potential for the application of a surplus. Current brake being to all non essential spend and a vacancy freeze arrangement has been put in place. Review of in-year position and potential for the application of a surplus. Current brake being to all non essential spend and a vacancy freeze arrangement has been put in place. At this stage the “Planning Assumption” remains NO Council Tax Increase and acceptance of the Governments Freeze Grant. At this stage the “Planning Assumption” remains NO Council Tax Increase and acceptance of the Governments Freeze Grant. Continue Cross Party Budget Working Group through January/February and beyond with particular emphasis on developing plans for 2016 onwards. Continue Cross Party Budget Working Group through January/February and beyond with particular emphasis on developing plans for 2016 onwards.

Questions…? Elaine Atkinson