Title: Chris Malyon Director
1Chris MalyonDirector
- Given the CSR 07 Settlement, the Challenges
facing Local Government Finance
2Issues to be covered
- CSR Overview
- Direct Grants
- Concessionary Travel
- Performance Framework
- Efficiency
- Grant Distribution - ACA
3Political Statements
- Local Government Minister John Healey
- tight but fair settlement
- Communities and Local Government Secretary Hazel
Blears - its not super generous
- Chairman of the Local Government Association Sir
Simon Milton This is the worst settlement in a
decade..will mean above inflation rises in
council tax and there is a black hole in social
care funding
4CSR 07 Summary
- An increase in local governments Aggregate
External Finance of - 4.2 in 2008/09
- 3.5 in 2009/10
- 3.4 in 2010/11
- 5bn of specific grant transferred to non ring
fenced grants - Power to implement a Supplementary Business Rates
- Revised LABGI scheme (150m)
5CSR07 Summary Continued
- 3 Cashable savings included (4.9bn)
- Reduction in performance indicators
- Capping limit 5
- Consultation paper on the care system
insufficient funding in the system - Increase in housing investment
- Increase in PFI funding for waste
- Power to charge for waste pay as you throw!
6The CSR07 contextNet Aggregate External Finance
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8Direct Grants
CSR07 Grants to be delivered via Revenue Support
Grant Access and Systems Capacity Delayed
Discharges Children's Services Waste Performance
and Efficiency
9- CSR07 Grants to be delivered via Area Based
Grant - A comprehensive list to be published with
provisional local government finance settlement. - Area Based Grant will include, as a minimum, the
following grants. - In addition, CLG aim to include Supporting People
programme grant from 2009/10, dependent on pilots
in 2008/09 - DCSF aim to include Contact Point from 2010/11.
- 14-19 Flexible Funding Pot DSCF
- Adult Social Care Workforce (formerly HRDS and
NTS) DH - Aggregates Levy Sustainability Fund Defra
- Care Matters White Paper DCSF
- Carers DH
- Child and Adolescent Mental Health Services DH
- Children's Social Care Workforce (formerly HRDS
and NTS) DCSF - Children's Fund DCSF
10Choice Advisers DCSF Cohesion CLG Conne
xions DCSF Crime Reduction, Drugs Strategy
and Anti Social Behaviour HO Detrunking DfT
Education Health Partnerships DCSF Extended
Rights to Free Transport DCSF Extended Schools
Start Up Costs DCSF Local Enterprise Growth
Initiative CLG Local Involvement Networks
DH Mental Capacity Act Ind Mental
Capacity Advocate Service DH Mental Health
DH Positive Activities for Young People
DCSF Preserved Rights DH Secondary
National Strategy Behaviour and
Attendance DCSF Secondary National Strategy
Central Coordination DCSF Preventing
Extremism CLG
11Primary National Strategy Central
Coordination DCSF Respect HO Road Safety
Grant DfT Rural Bus Subsidy DfT School
Development Grant (Local Authority
element) DCSF School Improvement
Partners DCSF School Intervention
Grant DCSF School Travel Advisers DCSF S
ea Fisheries Committee Defra Stronger Safer
Communities Fund CLG Supporting People
Administration CLG Sustainable Travel General
Duty DCSF Teenage Pregnancy DCSF Working
Neighbourhoods Fund (Neighbourhood Renewal
Fund) CLG
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13- Concessionary Bus Travel Act 2007
14What does the Act mean?
- Good news for people, environment traffic
congestion - Peak time free travel anywhere in England
- Reimbursement based on boarding
- Admin stays with present CTAs for now
- National SMART (dumb) Pass design
- Funding of pass distribution scheme
- Procurement of SMART Cards
- Regulations Guidance due soon
15Actions needed by you
- Plan in place
- Research DfT Bulletins
- Collect client data photos
- Key decisions made-
- Enhancements to national scheme?
- Procurement arrangements for cards and bureau
- Budget in 2007/08 for set up and admin
- Budget in 2008/09 and forwards for admin and
reimbursement - Review existing scheme usage data
- Negotiations with operators
- Reimbursement on the basis of boarding
16Preparations
- Many CTAs still not upto speed
- Checklist advice in Bulletin 7 (DfT)
- Plain English Guide of DfT website
- Framework Agreements for procurement of SMART
Cards - Help available from DfT support team
- Media plan by DfT
17Funding current position
- Setup grant increased to 4/pass
- 212m to be Special Grant not Formula Grant as in
2006 - Consultation distribution formula
- CSR07 announced grant levels to meet
reimbursement costs- - 212m in 2008/09
- 217m in 2009/10 (2.36)
- 223m in 2010/11 (2.76)
18Funding current issues
- Grant distribution consultation - four options
focus on - Option 1 day visitors, net in-commuters, popn
density, incapacity benefit etc. - Option 2 eligible popn, and density, passes
issued in whole local area - Option 3 eligible popn, net in-commuters, bus
stop density - Option 4 eligible popn, Bus journeys, overnight
visitors, retail floor space. - Payment direct to County where as districts
agree?
19Funding current issues
- We will have differing views!
- Work of the LGA and CFWG to make sure
distribution is as right as possible - Winners losers why?
- Distribution wrong in 2006?
- Quantum wrong in 2006, 2007 and 2008?
20Funding current issues
- Current costs of reimbursement rising-
- Increase in patronage
- New and innovative bus routes
- Bus fares inflation (e.g. 12 to 20)
- Appeals against reimbursement factors
- Current Budget pressures
21Delivering better outcomes for local people The
new performance framework
22The Improvement Journey
23 Overall Current Performance of District
Councils in CPA
24Why is change so important?
- We are a high performing sector
- Strong record on efficiency
- But
- CPA has reached its limits
- New emphasis on efficiency
- New challenges and solutions
- Devolution better decision making
25Our long term objective has always been to match
ambitious national standards with a vigorous
local autonomy and flexibility, where we maximise
efficiency, equity and a personalised service for
the patient, the pupil and the citizen generally
- Gordon Brown More local decision making is
the key to better services and greater public
satisfaction and will show what local democracy
in action can do Hazel Blears
26What does it mean in practice?
- The new performance framework will include
- New LAAs that deliver key local priorities
- a reduced set of 200 indicators
- Devolved improvement and efficiency support and
- a more proportionate and outcome-focused
assessment through CAA
27LAAs the heart of the NPF
- LAAs will
- Reflect story and ambitions for people and places
- Build on community strategy
- Negotiate shared priorities
- Agree up to 35 targets (17), chosen from the 198
- Not include mandatory targets
- Be agreed by June 2008
- Last for 3 years
- Be funded by a general area-based grant
- Will attract PRG amount yet to be confirmed
28 LAAs are a really powerful conceptual framework
for devolution, for joining up services locally
and for having a single conversation with
government Sir Simon Milton
29- New National Indicator Set announced in CSR
- Cut from 600-1200
- Help focus resources
- 198 Indicators to track PSA targets
- For local authorities working alone or in
partnership - Key data source for CAA components
- Technical consultation will follow announcement
30CAA - a new approach?
- The newest element of the CAA will be the area
risk assessment. This will hold members of the
local strategic partnership jointly to account
for their impact on the priority outcomes for
local people, as set out in the Local Area
Agreement - Gareth Davies, Audit Commission
31CAAassessing performance
- Citizen/outcome-focused, area and risk-based,
proportionate - annual area risk assessment based on LAA
- annual scored Use of Resources judgement
- annual scored Direction of Travel judgement
- annual publication of performance against 198
- judgments for any inspections triggered by risk
assessment.
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33- We are giving local government the space it
needs to thrive - they must now make the most of
this once in a generation opportunity and deliver
on local peoples priorities and take the tough
decisions to make a positive difference." Hazel
Blears - The rest is up to us!
34Efficiency
- A national target
- A national PI
- Changed reporting requirements
- New resources to support programme
- A VFM Delivery Plan
- Streamlined arrangements for supporting
authorities
35The efficiency challenge Efficiency Savings
SR04 and CSR 07
36Improvement and efficiency strategy
- Delivering better outcomes through
- Supporting improvement
- RIEPs at the heart of sector-led improvement
- Across the partnership
- To meet LAA targets
- Role of LGA
- Increasing efficiency with the help of 150m!
- procurement,
- commissioning,
- business process
- Driving innovation
- Focus on service transformation
- Reducing bureaucracy and waste
- Sectors architecture
- Better coordination and streamlining
37Service transformation agreement key elements
- Tell us once initiative
- Reducing avoidable or duplicated contacts with
call centres and local offices - Website rationalisation
- Accreditation of publicly funded call centres
- Empowering individuals to influence service
design and delivery - Improving management of information and identity
across government delivery systems
38Delivering Efficiencies within the South East
Region
- South East Centre of Excellence
- Regional Improvement and Efficiency Partnership
- County Wide Improvement Boards
- Hampshire Improvement Board
- Hampshire Improvement Group
- Capacity Fund up to 2008
- Bid for new resources 3 year programme
39Hampshire IOW Improvement Board
- 1.3m Capacity Fund
- New Bid Being Developed
- Revenues Benefits
- Planning
- Waste Management
- Wellbeing
- Leadership Management Capacity
- Project Management
- Learning Portal
- Recruitment Portal
- Member Development Community Engagement
- Procurement
40Shared Services Opportunities
- Revenues and Benefits Project
- CIPFA SDCT Financial Services Project
41Grant Distribution
- No major changes to methodology
- Consideration of alternative tourism data
- Population figures still big issue
- Draft Settlement Figures December
- Could be yr 1 only with yrs 2 3 to follow
- Area Cost Adjustment!
- Floor Ceilings
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43Summary
- A tough CSR settlement
- A challenging efficiency target
- A real change in reporting and monitoring?
- Local government will rise to challenge?