1. Balancing the books Northamptonshire's £165m challenge
Theresa Grant
Chief Executive of Northamptonshire County Council
26th June 2019

3. For those of you on Mars last year. This happened…………
INVESTIGATION LAUNCHED INTO COUNCIL COMPANY
Council slashes budgets to stave off bankruptcy
FRESH SPENDING CONTROLS AT CRISIS COUNCIL
SCRAP NORTHAMPTONSHIRE COUNCIL INSPECTORS SAY
COUNCIL MISSPENT £8M OF PUBLIC HEALTH MONEY
FOURTH CHIEF IN EIGHT MONTHS FOR BANKRUPT COUNCIL

4. Too challenging an opportunity to pass up
INVESTIGATION LAUNCHED INTO COUNCIL COMPANY
Council slashes budgets to stave off bankruptcy
FRESH SPENDING CONTROLS AT CRISIS COUNCIL
SCRAP NORTHAMPTONSHIRE COUNCIL INSPECTORS SAY
COUNCIL MISSPENT £8M OF PUBLIC HEALTH MONEY
FOURTH CHIEF IN EIGHT MONTHS FOR BANKRUPT COUNCIL

5. £64.4m On arrival in July 2018 the in-year deficit was unknown
First achievement – identifying the deficit in 2018/19
£64.4m *
We had eight months to fix it - with no reserves
* As per S114 statement

6. First task: Stabilise Create Belief Single focus Transparency / Trust
Standards
Pace
Doing the boring well (Max Caller)

7. Stabilisation and Recovery Plan
Financial Plan
Prevention
Productivity
Investment

8. Financial Plan
What was true financial position – both 2017/18 and 2019/20?
Stabilise – new controls on spend following s114
Team approach and ownership to identifying new options
Stabilise – new savings plan for 2018/19 in August (known as the Stabilisation Plan)
Regular monitoring – need to identify further measures: workshop 7 Jan ‘19
Use of LG finance regime – capitalisation direction November ’18
Budget set for 2019/20
Create dialogue with new external auditor

9. Capital Dispensation Three components: Deficit from 2017/18 (£41.5m)
Create unallocated reserve (£20m)
Management of savings in Stabilisation Plan (£8.5m)
Allowed use of £3.7m to address legacy financial issues
and
£4.8m into reserves
No cash injection from government

10. Reserves Position
Assumed Flexible Use of Capital Receipts in revenue budget:
2016/17 £12m
2017/18 £17m
2018/19 £31m

11. The 2018/19 Story. From Bankruptcy to Balanced:
2017/18 – From a deficit of £35m (which rose to £41.5m) to a balanced position.
2018/19 – From an in year shortfall of £30m (and a budgeted savings target of £35.4m) to an underspend of £2m.
In addition earmarked reserves of £8.5m have been created.
2019/20 – From a projected shortfall of £60m with no plans to deliver to a savings target of £41.4m supported by a transformation plan.
In addition a general reserve of £20m has been created.

12. 66% of net budget spent on care services
2019/20 NCC Budget
4.99% Council Tax Increase £m
Gross Budget
Income
Net Budget
66% of net budget spent on care services
No Pay Award!
Saving £41.4m

13. 19/20 Savings Breakdown £19.662m deemed low risk
Total savings: £41.415m
Transformation Activity
£21.753m in 19/20 plus
£3.766m in 20/21 full year effect
£19.662m deemed low risk

14. TRANSFORMATION THEMES

15. Causes of Cost Example Children’s Services Total Budget £134.9m
Spend on staff £53.2m (too much of this though is on Agency)
Spend on Care packages £81.7m
One cause of cost = high case load ratios leading to crisis management and lack of planning and result…too many young people in expensive care placements.
Staff morale suffers, people leave and the situation gets worse and recruitment becomes very difficult, so we have to spend more on high cost agency staff.
We need to do more
Prevention
Capacity in the system (Foster Care, Guardianship, Adoption) and local provision where possible
Better business models to address high cost care and shape the market

16. People, culture and Behaviours
The next challenge following stabilisation is to make sure it’s sustainable
The past approach, ‘salami slicing’ savings which didn’t work and has left scars on the workforce
Trying to build trust at all levels and changing the past reputation of failure and addressing the impact negative media has on morale
The organisational culture, working in silos, protecting budgets
Basics not in place, like no corporate centre, no stability in financial reporting, no accountability or ownership

17. Leadership Team, Cabinet and Commissioners
Dynamics and Political Landscape
Leadership Team, Cabinet and Commissioners
ONE TEAM WORKING TOGETHER FOR NORTHAMPTONSHIRE

18. Rebuilding relationship with Government

19. Striding confidently to the future Unitaries Programme

20. PROSPECTUS FOR CHANGE
An integrated plan for Local Government Reform and Transformation in Northamptonshire

21. Local Government Reform 2 Unitary Councils

24. Our Growth
ambition
Both West and North have delivered significant housing and jobs growth in recent years and will continue to do so as two unitary councils. While the North has well- established development planning arrangements to build on, LGR will provide the West with an opportunity to create a stronger, united voice within SEMLEP and the Oxford – Cambridge Arc and with Government departments so that the benefits of growth can be maximised across both unitary areas.
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25. So…it’s been quite busy
So…it’s been quite busy! And now we have to deliver two unitaries, to an immovable deadline, that cannot fail…