Community Council Meeting 9 November 2017 Angus Council Budget Position

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

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

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

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

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

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

Further Savings Required Funding Gap 2018/19 £m 2019/20 2020/21 Total Optimistic 13.9 8.9 6.1 28.9 13% Baseline 15.6 11.5 11.3 38.4 18% Pessimistic 17.8 12.7 12.6 43.1 20% 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

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

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

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

Questions