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Milton Keynes Council 2015/16 Budget Consultation -

Let’s Talk Budget

Tim Hannam – Corporate Director, Resources

Nicole Jones – Service Director, Finance & Resources

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Objectives

The aim of this session;

• To explain the financial context for Milton Keynes Council and why we need to make significant changes

• To explain the financial impact of the draft 2015/16 Budget and the outlook to 2020

• To highlight the ongoing budget consultation and clarify how you can participate

• To discuss how the citizens of Milton Keynes can support the Council in providing sustainable services

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Financial Context

• The Council continues to face significant financial challenges over the medium term.

• Government funding has reduced by c40% from 2010-15 and is expected to continue to reduce by up to 15% per year

• Local demographic pressures are increasing, including unprecedented demand for social care (children’s and adults)

• Low Council Tax (0% increase for 2015/16)

• There are also a number of changes which lead to uncertainty:– National economic outlook

– Introduction of Universal Credit

– Care Act

– Changes to national insurance payments

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2015/16 Draft Budget Summary

2015/16 Budget Pressures

£9.5m £10.5m

Service / Corporate Pressures Government Funding Reductions

£2.6m

Savings Requirement

£22m

Savings identified: Service Re-design - £4.5m Overhead Reduction - £4.5m Service Reduction - £3m Charges to Users - £5m Commissioning Efficiency - £5m

Includes: Reductions in Revenue Support Grant

£4.6m

Includes: Pay and Contractual Inflation

Includes: Demographic, Legislative Pressures and Sustainability Items

Inflationary Pressures

Additional Council Tax Income (through forecast property growth)

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Savings Delivery to Date and Future Requirements

Savings from 2011/12 to 2014/15 = £68m Savings in 2015/16 = £22m Savings already identified between 2016/17 to 2019/20 = £14mSavings yet to be identified between 2016/17 to 2019/20 = £32m

Funding gap

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Original gap £68m

Revised gap£32m

An increase to forecast social care demographic pressures and deeper Government funding reductions could increase the financial gap to £56m by 2019/20

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Strategy to Address the Gap

Cost reduction; a drive to reduce all costs associated with the Council

New models of service delivery; to reconsider the purpose of the Council and to engage the public about alternative ways to deliver and access services

Outcomes based commissioning; working with partners, to allow a broader approach than with current commissioning arrangements

Commercialisation; to increase awareness of the cost of service delivery with the development and implementation of new income generation ideas

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A Co-operative Council

• Milton Keynes Council is now a Co-operative Council

• Working with communities and individuals on the services which are the most important to them

• This ethos will underpin our Community and Cultural Services Review– We cannot continue to deliver services as we do currently

– We need a sustainable solution, beyond 2020

– We need communities to be part of the solution

• Innovative delivery models– Social Enterprises or staff mutual

– Partnership / community co-location / delivery

– Parish / town council-led provision

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Areas of potential interest

Areas of potential interest;

•Investment in adults (£3.2m) and children's (£1.5m) social care

•Community and Cultural Services Review

•Changes to concessionary fares and bus subsidies

•Ways that citizens can work with the Council to deliver services differently

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Budget Consultation

• The Council’s annual Budget is the level of planned resource required to fund the following services;

– Children’s & Education Services– Adult Social Care – Highways, Roads & Transport Services– Environment & Planning Services– Housing Services / Culture and Related Services

• Milton Keynes Council is seeking your views on it’s draft 2015/16 Budget (consultation runs until 31st Jan).

• This feedback will inform final 2015/16 budget, which the Cabinet meeting on 9 th February recommends to full Council on the 18 th February.

• The draft Budget is also subject to independent scrutiny of the all party Budget Review Group (Oct-Feb).

• You can respond to the consultation at:

Email: letstalkbudgetmk@milton-keynes.gov.uk Social Media: @mkcouncil #budgetMK Website: www.milton-keynes.gov.uk/letstalkbudgetmk