Presentation given to Baffins neighbourhood forum on 11th May 2011, by Roger Ching

1. Baffins Neighbourhood ForumBudget Update 2011/12 to 2014/15 Roger Ching Strategic Director & S151 Officer

2. City Council 8 February 2011 Reports Approved:- Revenue Budget 2010/11 to 2014/15 Day to day running costs of services (salaries, premises costs, contracts etc.) Capital Programme 2010/11 to 2015/16 Improvements to (or) new buildings, land & equipment

6. Buildings

8. insurance

9. petrol

11. Revenue Budget Sets out the City Council’s day to day expenditure and how it is funded Total expenditure is funded by a mixture of:- - Government Grants - Business Rates - Council Tax - Income from fees and charges - Contribution from Revenue Reserves Government requires Local Authorities to set a balanced budget each year Aim is that In-Year Expenditure equals In-Year Income

12. Examples of Services Provided Front Line ServicesSupport Services Education Information Services Safeguarding of Children Human Resources Environmental Health Finance Highways Infrastructure Asset Management Adult Social Care Legal Services Planning Refuse Collection Trading Standards Libraries & Museums

13. Budget Headlines Formula Grant reduction Council Tax freeze (offset by new grant) Council Tax collection rate of 98.5% No allowance for pay award Inflation for all services Reduction in contingency provision Net savings of £15.0m recommended by Cabinet

14. Local Government Finance Settlement 2011/12 Overall reduction in grant (cash): 2011/12 £11.3m or 9.07% 2012/13 £ 6.5m or 5.69% But - like for like basis: Overall reduction in grant 2011/12 £14.3m or 11.42% 2012/13 £ 5.3m or 4.76%

15. Revenue Budget Process 2011/12 Target savings set at £15.0m Members have considered the impact on corporate priorities, service delivery, performance and value for money of : - Officer Savings Proposals - Staff and Residents’ Savings Suggestions - Budget Pressures

16. Revenue Budget Process 2011/12 Recommended Savings set out in Appendix C Recommended Budget Pressures set out in Appendix D Savings result in the loss of 184 posts (124 full time and 60 part time) equal to 151 Full Time Equivalent Savings include Senior Management reductions

17. Savings Target £15.0m £’000 Review of Original Forecast (1,190) Add Savings (Appendix C) (17,863) Gross Savings (19,053) Less Budget Pressures (Appendix D) 4,053 Net Savings (15,000)

18. Budget 2011/12 Portfolio Savings Pressures Change £’000 £’000 £’000 Children’s Services (3,211) 574 (2,637) Culture Leisure & Sport (1,454) 1,299 (155) Education (2,599) 74 (2,525) Environment & Com.Safety (1,537) 100 (1,437) Health & Social Care (3,372) 1,200 (2,172) Housing (899) 29 (870) Leader (64) - (64) PRED (302) 30 (272) Resources (3,474) 600 (2,874) Traffic & Transportation (906) 25 (881) Other Expenditure etc (45) 12277 TOTAL (17,863)4,053(13,810) NB. £1.8m added to Children’s Social Care 2010/11 and on-going

19. Budget 2011/12 £m Gross Expenditure 534.460 Less Gross Income 372.993 161.467 Less Government Grants 91.263 70.204 Less Collection Fund Surplus 1.355 Required from Council Tax 68.849

20. Council Tax 2011/12 Council Tax Requirement £68.849m Council Tax Base 59,914.9 Council Tax at Band D 2011/12 £1,149.12 Council Tax increase of 0%

21. Total Tax 2011/12 (Band D) 2010/11 2011/12 Increase £ £ % Portsmouth City Council 1,149.12 1,149.12 0.00 Hampshire Police Authority 146.25 146.25 0.00 Hampshire Fire & Rescue 61.38 61.38 0.00 Band D Property – Total 1,356.75 1,356.75 0.00

22. Tax for All Bands Band 2011/12 A £ 904.50 B £1,055.25 C £1,206.00 D £1,356.75 E £1,658.25 F £1,959.75 G £2,261.25 H£2,713.50

23. National Non Domestic Rates Five yearly business rate revaluation in 2009 For 2011/12, businesses will pay 43.3p for every £1 rateable value (41.4p in 2010/11) Money collected is paid into a National Pool Portsmouth receives a share of the National Pool as part of Formula Grant

24. Forecast Budgets 2012/13 to 2014/15

25. Forecast Budgets 2012/13 to 2014/15 Assumptions include: Formula Grant reduction of 7.48% in 2012/13, 0.85% in 2013/14 and 5.6% in 2014/15 2.5% increase in Council Tax each year Council Tax collection rate of 98.5% Inflation for all services Ongoing effect of savings and budget pressures approved for 2011/12 Allowance for unavoidable budget pressures Allowance for other known budget pressures

26. Forecast Budgets 2012/13 to 2014/15 Savings to be found in future years Underlying In-Year Cumulative Budget Deficit Target Saving £m £m £m 2012/13 7.142 8.0 8.0 2013/14 10.467 7.0 15.0 2014/15 22.326 7.0 22.0 Savings targets allocated across all services

27. Target Savings 2012/13 to 2014/15 Targets for Adult and Children’s Social Care reduced by 50% Targets for all other services shared proportionately Further review of apportionment of savings targets

28. Budget 2011/12 In Summary Financially challenging Budget aims to protect services within tight financial constraints Council Tax freeze Budget deficit of £4.739m balanced by contribution from Reserves £22m further savings to be made in 2012/13, 2013/14 and 2014/15

29. Capital Programme 2010/11 to 2015/16

30. Capital Funding Sources Funding sources include:- Borrowing - Supported (ie Government support for repayments) - Prudential Borrowing (ie tax for repayments) – used only for Spend to Save Schemes Capital Receipts Grants/Other External Contributions Revenue Contributions

31. Proposed New Capital Schemes Includes: Berth 2 Extension (Port) Decent Homes Standards Housing Support for Vulnerable People Hilsea Splashpool Landlords Maintenance North End Regeneration Road Schemes (Local Transport Plan) Schools Modernisation

32. Major Schemes Requiring Funding Northern Quarter Somerstown Phase 2 Tipner Northern Road Bridge Guildhall Schools Strategy

33. Questions? ? ? ? ? ? ?