20082012 Council and Resources Plan

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• 2008-2012 Council and Resources Plan
• North East Chamber of Commerce
• Budget Engagement
• 8 January 2008
• Fiona Rooney, Head of Strategic Finance

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Purpose of Session

• Opportunity for members of the North East Chamber
  of Commerce to receive a briefing on the
  Cabinets initial budget proposals for 2008/09
  and draft council plan for 2008-2012
• Overview of the medium-term financial position of
  the Council within the national context of the
  CSR07

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• 1 Achievements

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Theme 1Create positive futures for children and
young people

• The most improved GCSE results in the country
• A new skills and enterprise centre, ensuring
  children can access high quality vocational
  learning
• A 4m new primary school in Burradon, opened by
  the Prime Minister
• Investment secured for Monkseaton Community High
• An excellent overall rating for the councils
  fostering service
• National targets to deliver two hours of quality
  PE each week, free swim sessions and sport action
  clubs were achieved two years ahead of target.

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Theme 2Improve Wellbeing

• Work with the health services to extend life
  expectancy and to reduce teenage pregnancy rates
• Investment in leisure facilities including the
  1.5m facelift of Tynemouth swimming pool and the
  opening of the new Lakeside Centre at
  Killingworth
• Completion of the East Howdon playsite is the
  first project within a 3m three year investment
  in playsites
• Increased investment in adult social care to
  support people to live independantly in their own
  homes
• Waiting times for occupational therapy reduced
  from 6 months to 8 weeks
• The use of the Elected Mayors Wellbeing Fund

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Theme 3Regenerate our borough

• A 4.4m food processing facility and offices for
  small businesses at North Shields Fish Quay has
  created jobs
• Completion of a multi-million pound investment in
  the boroughs waggonways achieved a national
  award
• Wallsend town centre pedestrianisation plans were
  prepared and residents consulted
• Successful retention of European Blue Flag status
  for Whitley Bay, Tynemouth and King Edwards Bay
• Launch of the major Economic Regeneration
  Strategy for North Tyneside

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Theme 4Strengthen our communities

• 113m programme of investment for the boroughs
  council housing stock
• Award of 103m Private Finance Initiative credits
  from central government for the renewal of the
  councils sheltered accommodation
• The extension of the garden waste service to
  cover an additional 3,000 households
• Increase in the recycling rate by 3 per cent on
  the previous year
• Creation of new environmental hit squads to
  target, clean up and support those parts of the
  borough most in need
• The grass cutting fleet has been renewed

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Theme 5Increase Organisational Effectiveness

• Benefits service rated as excellent by inspectors
  for the second year running.
• Annual Efficiency Savings for 2006/07 were
  greater than targeted
• Savings made through the transformation programme
  are being reinvested into improved services
• Modernised systems and technology in our contact
  centres
• Move to the new accommodation at Cobalt business
  park

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• 2 2008-2012 Draft Council Plan

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• Closing the Gap
• Borough wide gaps
• Ward level data
• Area futures feedback

Building for the future
Council Plan
Transformation
Engagement
Create positive futures for children
Improve wellbeing
Regenerate our borough
Stengthening our communities
Increase organisational effectiveness
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• 3 Efficiencies, value for money, transformation

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Transformation
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Local Context Efficiencies, value for money and
transformation

• To support delivery of local services within our
  communities
• Funds closing the gap priorities
• Provides council stability
• Supports regeneration activity
• Provides young peoples facilities
• Working closer with communities / environment
• Encourages engagement
• Ensures council capacity

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• 4 Local Government Finance Settlement 2008-2011
  

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National Context

• December 2007, covers three years 2008-2011
• North Tyneside Formula Grant Increases 2 for
  2008/09 1.8 for 2009/10 and 1.5 for 2010/11
• National Formula Grant Increases 3.6 for
  2008/09 2.8 for 2009/10 and 2.6 for 2010/11
• Capping of council tax increases at 5 for next
  three years (increases should be substantially
  under 5)
• Supplementary business rates
• Area based grants Working Neighbourhoods Fund
• Concessionary travel 5.8 million to the Tyne
  and Wear Passenger Transport Authority

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General
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LABGI SBR(Local Authority Business Growth
Incentive Supplementary Business Rate)

• Supplementary Business Rate 2p in the pound
  additional rate (Lyons 4p)
• LABGI reduction from 1bn over SR04 to 150m over
  CSR07 (nothing 2008/09)
• 2009/10 195k and 2010/11 390k for us (if on
  same basis as 2006/07)
• SBR intended to replace (in part) the LABGI grant
  but not available until 2010/11
• SBR power to levy from 2010/11 for economic
  regeneration and limited to businesses with a
  rateable value of over 50,000

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• 5 Key Financial Risk Assessment

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Risk assessment

• Council tax increases well under 5 (CLG)
• Movement in Formula Grant floor
• Pension Fund
• Job evaluation
• Equal pay / equal value
• Oil and gas prices
• Demand-led service pressures
• Efficiency savings at 3 year on year

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Risk assessment I

• Income targets
• Fall-out of grants
• Minimising use of one-off monies unless it is for
  one-off investment
• Treasury management
• Startegic investment
• Transfers from specific grants into formula grant
  and transfers into area based grants

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• 6 General Fund Dedicated Schools Grant

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Revenue investment where the money comes from
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Revenue investment what we intend to spend it on
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New revenue investment

• Fuel4kids
• Re-investment into adult social care, e.g.
  occupational therapists, community access officer
• Learning disabilities
• Wallsend leisure facilities
• Working closer with neighbourhoods
• Garden care scheme
• Fair cost of care

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New revenue investment I

• Accommodation and joint service centres
• Job evaluation
• Marketing and engagement
• Revenue costs of borrowing for the strategic
  investment plan

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• 7 Strategic Investment Plan

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Criteria for prioritising investment

• Closes the gap
• Delivers Council Plan objectives
• Ability to lever-in resoirces, invests to save
  and is affordable
• Contributes towards the Sustainable Community
  Strategy and the 2030 Vision
• Provides value for money

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Capital investment where the money comes from
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Capital investment what we intend to spend it on
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Building for the Future
REGENERATION Whitley Bay East Howdon Wallsend Long
benton Battle Hill North Shields Transport
investment Tyne Tunnel North Bank of the Tyne