1. SOCIAL CARE AND HEALTH SCRUTINY COMMITTEE 21 st JANUARY 2003 PRESENTATION ON BUDGET METHODOLOGY AND PROGRESS “A better future for South Tyneside's people”

2. “A better future for South Tyneside’s people” Our young people will have new hope because they will have a bright future. People of all ages will have high aspirations, great confidence and the skills and opportunities they need to succeed. People will be healthy, able to find work and will enjoy living here. Our reputation for excellence in service to communities will be widely recognised and South Tyneside will be playing a full role in contributing to a thriving and prosperous region.

3. PURPOSE OF TODAY’S PRESENTATION Overview of budget and MTFP process Focus on 2003/04 revenue budget only Focus on issues relating to Social Care and Health Directorate Obtain Member feedback on these issues Explain next steps

4. BUDGET METHODOLOGY 3 year Period considered in Medium Term Financial Plan Need to consider both revenue and capital funding Identify Council priorities and non-priorities and funding required to deliver on them (now 8 priorities instead of 3) Consider deliverability / risk issues Identify Government funding available (added complication this year due to revised funding formula) Key assumption regarding FSS Ensure CPA taken into account Consult widely on proposals

5. FINANCIAL SUMMARY REVENUE 2003/04 £m AVAILABLE FUNDING 184.0 SUMMARY SPENDING PROPOSALS Current year budget 171.1 Standstill pressures 13.1 Priority led initiatives 7.9 Realignment of non-priorities ( 8.1) 184.0

6. AVAILABLE FUNDING Revenue Support Grant and Business Rates Council Tax Use of Council reserves

7. STANDSTILL PRESSURES REVENUE 2003/04 £m Inflationary Pressures 10.998 Demand Led Pressures ( 0.121) Statutory / Legislative Pressures 3.803 Other Standstill Pressures 0.115 Inflationary Increases in External Charges ( 1.191) Additional Grant Income ( 0.544) 13.060

8. COUNCIL PRIORITIES 2003-2004 Modernisation Education Health and Social Care Employment Inclusion Community Safety Environment Transformation

9. METHODS OF ACHIEVING A BALANCED BUDGET Filtering the priority led initiatives Realignment of non-priorities Additional income opportunities Level of Council Tax

10. NEXT STEPS More clarification required on certain aspects of finance settlement and Government Grants Consultation with stakeholders in January 2003 (non-statutory) Refine proposals as feedback obtained from consultations Cabinet meeting 12 th February 2003 to approve budget proposals for statutory consultation Statutory consultation meetings 14 th February 2003 Cabinet meeting 19 th February to discuss and approve final budget and MTFP proposals for recommendation to Council Council meet 28 th February to approve final budget and MTFP

11. SOCIAL CARE AND HEALTH SCRUTINY COMMITTEE 21 st JANUARY 2003 BUDGET OPTIONS RELATING TO THE SOCIAL CARE AND HEALTH DIRECTORATE

12. SOCIAL SERVICES FORMULA SPENDING SHARE (FSS) £m 2002/03 Original SSA37.270 Transfers in to SSA 0.858 Spending uplift in FSS 3.519 Adjusted FSS41.647 2003/04 FSS43.625 Increase in Adjusted FSS 1.978 % age Increase 4.75% Council Budget 2002/0341.664 Council Budget 2003/0443.825 Increase 2.161 % age Increase 5.19%

13. HEALTH AND SOCIAL CARE To make South Tyneside a place where people are healthy and helped to care for themselves Restructure frontline services Diversify and re-invest in older people services Improve opportunities for children to live in a family environment

14. HEALTH AND SOCIAL CARE – PRIORITY LED INITIATIVES 2003/04 £’000 Restructure frontline services Customer Care and Capacity 342 Diversify and re-invest in older people services Faster assessment, better home care and intermediate care, support for carers and independent sector fees 2078 Recruitment and Retention More social workers / better trained / improved retention 223

15. HEALTH AND SOCIAL CARE – PRIORITY LED INITIATIVES 2003/04 £’000 Improve opportunities for children to live in a family environment CAMHS, Choice Protects – Fostering. Adoption and Special Guardianship Support, New National Care Standards and YOT Priorities 331

16. HEALTH AND SOCIAL CARE – CAPITAL PROPOSALS 2003/04 Council Contribution £’000 Relocation of the Community Equipment Service into a new purpose built facility (Gross cost £655,000 over 2 years) 312 Sure Start initiatives in 4 wards - £3.2 million over 2003/04 – 2004/05 – all to be externally funded -

17. SOCIAL CARE AND HEALTH DIRECTORATE REDUCTIONS AGREED LAST YEAR 2003/04 £’000 Service improvements – childrens (reductions in placements and numbers of looked after children 255 Improvements in Sickness Management 150 Eligibility Criteria 200 Restructure 200 Reshaping of Community Care and managing the market 813

18. SOCIAL CARE AND HEALTH DIRECTORATE ADDITIONAL INCOME OPPORTUNITIES 2003/04 £’000 Community Care – Service Charging 93