Medium Term Financial Strategy

Oadby Residents’ Forum 2nd March 2011

Leicestershire• 644,800 residents, 800 square miles

County Council• Highest rating for use of resources (and value for money)

• Low spend per head of population on low funding

• Responsibilities for• roads and transport, education and learning, social care and health, libraries and museums, environmental services, waste disposal

Context

Context

Leicestershire County Population: 645,800 Charnwood Borough

Population: 167,100

Blaby District Population: 93,400

Harborough District Population: 82,800

Hinckley & Bosworth Borough Population: 105,200

Melton Borough Population: 49,300

NW Leicestershire District Population: 90,800

Oadby & Wigston Borough Population: 57,200

Population: ONS population estimates for mid-2008, August 2009

Leicestershire CountyPopulation: 644,800

Charnwood BoroughPopulation: 165,000

Melton BoroughPopulation: 48,900

Oadby & Wigston BoroughPopulation: 58,500

Harborough DistrictPopulation: 83,400

Blaby DistrictPopulation: 93,600

Hinckley & BosworthBoroughPopulation: 104,800

NW Leicestershire DistrictPopulation: 90,600

Population: ONS population estimates for mid-2009, Oct 2010

• Budget informed by extensive consultation with local people – workshops and questionnaire (Leicestershire Matters and online)

Questionnaire

• 6 week consultation ended 6th December

• Over 5,300 responses

• Three main questions– Service reductions

– Council tax

– Any other comments

Consultation

‘To what extent do you think the County Council should consider making reductions in the services listed below?’

Response options:

– Reduce: A great deal

– Reduce: To some extent

– Reduce: Not very much

– Reduce: Not at all

– Don’t know

Consultation

Where respondents thought LCC should consider making reductions ‘a great deal’ or ‘to some extent’:

Street lighting 75%

Grass cutting 72%

Museums, Record Office and Arts 63%

Country parks and rights of way 60%

Library Services 56%

School transport 51%

Public transport subsidies 49%

Consultation

Where respondents thought LCC should consider making reductions ‘not very much’:

Helping older & disabled (moderate need) 36%

Providing social care transport 34%

Maintaining roads and pathways 33%

Youth service including youth workers 33%

Waste management contracts 31%

Consultation

Where respondents thought budgets should not bereduced at all:

Winter maintenance, e.g. gritting 66%

Helping older & disabled (substantial & critical need) 54%

Children’s social care and child protection 53%

Prevention/early intervention for older & disabled 51%

Recycling inc. local tips 48%

Working with Police to reduce crime and ASB 48%

Consultation

Q2 Council Tax

Over the next three years the County Council is not planning to increase council tax. The council tax bill for county services is currently £1,063 for a band D property. Would you be prepared to pay more than a 0% council tax increase to have less service reductions.

No increase 0.5% 1.0% 1.5% 2.0% 2.5% 3%+ No response

52% 6% 13% 6% 10% 4% 7% 1%

Consultation

• Agreed by the County Council on 23rd February

• Over four years budget (excluding schools) reduces from £350m to £330m – this reflects

– Reduced funding from Government

– Council Tax frozen

– Growth £46m – to meet demographic and other service pressures

– Savings of £79m – Efficiency £57m– Service reductions £22m (£19m of which agreed in

10/11)

MTFS - Overview

• Homecare/ day care/ residential care/ direct payments - £29m by 2014/15

• Children’s Social Care - £2m

• Special educational needs and adult social care transport - £1.1m by 2014/15

• Waste disposal - 20%+ growth largely due to landfill tax

• Big Society - £850,000 each year from 2011/12

MTFS – Some Key Growth Areas

Efficiencies and service reductions – many agreed last year

• Change to adult social care eligibility criteria - £6.5m by 2014/15

• Libraries, Heritage and Arts Review - £4.2m by 2014/15

• Youth Service - £1.78m

• Highways maintenance - £3.25m by 2014/15 but offset by growth of £1.5m in 2011/12

• Home to School transport - £500,000 each year from 2014/15

• Local Transport Service - £1m each year from 2012/13

• Police Community Support Officers – up to £500,000 each year from 2013/14

• Review of parks and forestry - £235,000 by 2014/15

MTFS – Some Key Savings

MTFS - Council Tax

Average council tax 2011-12 (£1,477)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1

County Council(£1,063)

District & Parish(£191)

Fire (£53)

Police (£170)

• Extremely difficult financial position with large savings required over the next few years

• Broadly in line with expectations / planning assumptions

Summary