The challenges ahead - key issues for District Treasurers

Sally Marshall, Corporate Director (Finance & Governance), Dacorum Borough Council

Paul Cresswell, Corporate Director, Section 151, Ryedale District Council

Society of District Council TreasurersWorkshop

10 July 2013

Society of District Council Treasurers

Sally MarshallPresident of the Society of District Council TreasurersCorporate Director (Finance & Governance) Dacorum Borough Council

Welcome to the SDCT workshop

Q & AQ & A

Society of District Council Treasurers

Spending Round and Other Key Issues

Key Issues in Local Government Finance

• Reduction in total spending in real terms by the same rate as SR2010 • 2015/16, 2016/17 and 2017/18

• 10% Reduction in Council Core Funding• £2.1bn cut in CLG Core Funding to Councils in 2015/16

• Council Tax – further support to freeze Council Tax• Equivalent to 1% increase• 2014/15 & 2015/16• Impact on Council Tax base• Referendum limits 2% (now includes levying bodies)

• £100m Council efficiency and transformation fund

• £200m Troubled families programme (subject to LA match funding)

• Lord Heseltine’s recommendation to devolve funding to LEPs• Single Local Growth Fund• £2bn pot per annum• Majority of fund is a reallocation of existing council or devolved

funding• Top slicing of New Homes Bonus £400m• Government consultation on mechanism for Local pooling of NHB

at LEP level• Single Local Growth Fund allocation competitive process• England’s EU Structural and Investment funds devolved to LEPs

• How involved is your Council with your LEP?• Is the LEP growth strategy in place?• At what stage is your Growth Deal?• Do you have local funding in place?

• Rewiring Public Services • Current Local Government model will not last much longer• 10 big ideas for rewiring Public Services

• Local Treasury• Local services & decisions in one place• A single government department - England Office• Needs based funding• Local Government finance distributed by agreement• Municipal bonds• Multi-year funding settlement aligned to next parliament

• Future Funding Outlook for Councils from 2010/11 to 2019/20• Funding cuts and unavoidable growth pressures• Annual growth in gap £2.1bn• £14.4bn by end of decade• Assumed use of reserves• Impact on individual authorities• 87% (ave) of Shire District expenditure funded in 2019/20• Range - minimum 56% funded through to 100% funded

• Welfare Reform• Council Tax Support year two and beyond • Administration Grant• Impact on Homelessness

• Universal Credit• Managed migration - when?• Impact of transition – managing service in decline• New Burdens payment – support claimants transition to UC• Housing Benefit Overpayments

• Single Fraud Investigation Service• Delayed until April 2014 or beyond

Summary

The challenges ahead - key issues for District Treasurers

Sally Marshall, Corporate Director (Finance & Governance), Dacorum Borough Council

Paul Cresswell, Corporate Director, Section 151, Ryedale District Council

Localisation of Council Tax Support (and more….)

Paul Cresswell

Society of District Council Treasurers Workshop

Well done!

• We got there in the end!• Doom and Gloom predictions• We always make things work for our taxpayers• Doesn’t mean it was easy• Doesn’t mean it’s getting easier• Thanks to Sandra• Baton passed to me & Dean Langton (Pendle)

Straw-Poll

• Everyone put one hand in the air• Put your hand down if:

– You did not make a cut to working age claimants– You went up to 8.5%– Your cut was 8.5% to 19%– Your cut was 20% to 29%– Who is left (find highest)– Who found that interesting?– OK mildy interesting!

SDCT LCST Survey

• Why?– Help authorities set schemes for 2014/15– Learn from others– Put pressure on other preceptors (hopefully)– Assist decision making (e.g. Parishes Treatment)– Provide evidence to assist Members– Helps SDCT lobby DWP/DCLG

Survey

• 34 questions• 23 in 10 minutes!• Benefits and Revenues specifics• More value the more completed• Live now (survey monkey)• Closing Date 9 August 20139 August 2013• Results by end August hopefully

Survey

• Sections:– Name and Authority (1)– Your 2013/2014 Scheme (13)– Collection Rates (6)– Parishes (4)– Technical Reforms (7)– Plans for 2014/15 (3)

Discounts and Exemptions

• Flexibility• Major

– Class A (now Class D PCLD) – change period– Class C (now Class C PCLC) – Period and %

• Second Homes to 100%• Empty Homes Premium • Old ‘Class L’ (Mortgagees)

Class A and C

• Different approaches• Covered in survey• Some abolished Class A• Class C – 10% for 28 days lowest known!

Empty Homes Premium

• DCLG Guidance 7 May 2013• All one page of it• Up to billing Authorities• Issue generating significant correspondence,

members, MP etc.

Looking ahead….

• More of the same– higher %age LCTS reduction– Lower discounts

• More Radical– Continue to protect all Pensioners?– Lower Single Persons Discount?– Discount Scheme?– Another Band (or two?)– Revaluation

The challenges ahead - key issues for District Treasurers

Sally Marshall, Corporate Director (Finance & Governance), Dacorum Borough Council

Paul Cresswell, Corporate Director, Section 151, Ryedale District Council