1. Havering Council Budget & Council Tax 2016/17
Presented by Cllr Clarence Barrett
Cabinet Member for Financial Management, ICT (Client) and Transformation
Upminster & Cranham Residents’ Association
February 2017

2. The Council’s Revenue Budget
Net Expenditure
£’m
Planning & Regeneration 2
StreetCare 17
Education 39
Environmental Health 3
Culture & Leisure 11
Social Care 63
Other (inc £14.42m Levies) 28
Total
163
Levies
£’m
East London Waste
13.67
Environment Agency
0.20
Lee Valley
0.24
London Pensions (ex GLC)
0.31
Total
14.42
Funded by
£’m
Central Government Grant 30
Business Rates 21
Top-up grant for Business Rates 9
Surplus on Collection Fund 2
Council Tax
101
Total
163

3. Capital Expenditure
Capital expenditure is different to revenue expenditure as follows:
Revenue is the day to day expenditure of running the Council (£163m above) and is funded by council tax, fees & charges, revenue grants and business rates
Capital is money spent on creating or improving long term assets. For example building or improving a library or sports centre. It is not the day to day running and is usually funded through borrowing or capital grants
For 2017/18 there is £11.9m set aside for Capital Works (excluding schools)
Includes £2m for Highways, £1m for ICT, £510k for parks and £300k for disabled facility grants

4. Background Overall increase over five years = 2.5%
COUNCIL TAX IN HAVERING
Band D Average
2011/12
1,505
2012/13
1,502
2013/14
1,498
2014/15
1,494
2015/16
1,514
2016/17
1,543
Overall increase over five years = 2.5%
2% Adult Social Care Precept included from 2016/17
Central Government Grant will reduce to £1.4m by 2019/20 (96% reduction)
Since 2010, the Council have made £100m of savings
Proposed increase for 2017/18, including Adult Social Care Precept and the Mayor of London, is 3.5%

5. What is our council tax spent? A weekly breakdown…

6. How we compare…

7. How we compare…

8. How we compare…

9. The Future?
The demands on Social Care will grow, but the budgets are reducing – it needs proper funding and not expect council tax payers to make up the difference
From 2020 councils will retain all business rates but receive no grant
From 2020 additional responsibilities, such as Public Health, Skills and Training will go to councils (but what about the funding?)
The estimated budget gap up to 2020 is £9m
Waste disposal costs are increasing year on year, for 2017/18 the waste levy increases by a further £1.3m to £15m
Your councillors will do all they can to control demand, manage expectations and provide value for money with the resources at their disposal, but there is no magic potion!