Agenda item
Budget 2010-11
- Meeting of Cabinet, Monday, 22nd February 2010 6.15 p.m. (Item 332.)
- View the background to item 332.
Minutes:
The Director of Finance presented the draft revenue estimates for 2010/11. A decision was required to enable recommendations to be made to the Council concerning the budget and Council Tax for 2010/11. This involved a key decision on the matter forming part of the budget and policy framework and it had been included in the Forward Plan.
The Leader of the Council submitted and commented on a motion which set out the budget proposals of the joint administration. He informed that the Council Tax rise in Wirral resulting from these proposals would be 1.29%, which would give an overall Tax of 1.67% when the precepts were included, and therefore a below-inflation increase, with the January RPI figures running at 3.7%. He went on to pay tribute to Cabinet Members and officers for their hard work in supporting the budgetary process.
The Leader reported that under the proposed budget there would be no Council Tax increase for pensioner households over 75 years of age and that for the Financial Year 2010/11 the Council would ensure that no pensioner household over 75 would have any increase in Council Tax liability, including the consequences of any police and fire increases. This applied where:
· the Council Tax payer paid Council Tax in Wirral as their main home and all individuals in the household that were counted as resident for Council Tax purposes were aged 75 or over on 1 April 2010 (but where the qualifying age criterion was met after 1 April 2010 eligibility would be effective from the date of birth only);
· this reduction would be calculated after deduction of all other Council Tax discounts and reliefs;
· application must be made for the reduction where it was not currently in payment of the potential claimant was not in receipt of Council Tax Benefit; and
· no pensioner household in receipt of full Council Tax Benefit would qualify for the reduction.
In seconding the motion and endorsing the Leader’s remarks, the Deputy Leader of the Council informed that this was a positive budget, focussed on the future.
Resolved – That
1. Investing in Wirral’s Future
A BUDGET FOR JOBS, THE ENVIRONMENT AND SAFER, STRONGER COMMUNITIES.
As we emerge from the worst recession since the Second World War, the economic recovery is fragile and expected to be long and slow. The country also faces unprecedented levels of debt in the public finances.
This is a time when many people are being forced to make sacrifices and when those in public service need to be sure that everything they do stands up to public scrutiny, which is why no councillor is accepting any increase in their allowances and rail travel will be strictly scrutinised to ensure only the most appropriate and economic fares are used.
However, against this background, the Council’s finances are in good shape, as the effect of previous budget measures in the three-year efficiency plan finally work through. There exists a window of opportunity for the Council to invest in the long term future economic prosperity and environmental sustainability of the Borough, before the National Government brings to bear the expected squeeze on the public finances.
So this budget contains key investments at its heart to support the economy and the environment with measures to invest in next generation communications technology for business to make it more competitive and create more jobs, doubling the original target of 100 apprentices to 200, better equipping our youth for future employment and a scheme to provide free insulation for every home in the Borough, saving people money on their energy bills, attacking fuel poverty as well as reducing carbon emissions and our impact on global warming.
Also, for the first time, this budget includes a carbon budget, set out in a report to Budget Cabinet, which will be the mechanism whereby the Council sets targets to reduce its own spending on energy and carbon emissions year on year.
The budget also provides support for vulnerable people and safer communities. The proposed investment in assistive technology will enable more elderly and vulnerable people to stay in their homes longer, delaying their need for residential or nursing care. This not only improves the freedom and quality of life of our elderly and vulnerable, but is a more cost effective means of delivering care. The popular discount scheme for pensioner households over 75 is further extended so that there is no increase in the level of Council Tax paid in these homes.
Speed is the key factor in reducing both the number and severity of road traffic accidents. Following the success of the Accidents Down 2 Zero campaign, which has reduced average traffic speeds in the trial areas, the budget provides for a comprehensive new policy to introduce a statutory speed limit of 20 mph on non major routes in all residential areas and for variable speed signs for schools on major routes.
Finally, this budget invests in the future of our young people through additional capacity to prepare a multi-million pound bid for further enhancing the physical fabric of our schools. Narrowing the gap in literacy levels between neighbourhoods, and reducing social exclusion, is also a key theme, with funding being provided to continue the successful ‘Get into Reading’ initiative in the Borough’s most deprived wards. Community cohesion will also be promoted by providing extra resources to more effectively address the needs of our ethnic minority communities.
All the above measures seek in these difficult times to advance the aims of the Council’s corporate plan, to create a more prosperous and equal Wirral.
2. Council Tax Levels
The proposed Council Tax increase for Wirral is 1.29%, which will give an overall Council Tax of 1.67% when the precepts are included. This is less than half the current rate of inflation, with the January RPI figures running at 3.7%
3. Revenue Estimates
The Revenue Estimates for 2010-11, as set out in the Estimates Book now submitted, be approved subject to the amendments set out below.
|
4. Zero Council Tax increase for Pensioner Households over 75. |
£ |
|||||
|
The sum of £465,000 to be allocated to maintaining the Council Tax discount for pensioner households over 75 and meeting the increased cost of a growing number of eligible households claiming the discount, which in 2009/10 amounted to £260,000, to be met from balances in the current year. The sum allocated will also equalise the system so that everyone who is eligible will receive exactly the same percentage discount. This means that no pensioner household over 75 will pay any increase in Council Tax this year, including the consequences of any increases in Police and Fire precepts. This honours the target set, (which is dependent on the Council’s finances), to keep Council Tax increases for pensioner households over 75 at or beneath the level of the published inflation rate in the January Retail Price Index, which this year is 3.7% This is the equivalent of more than 8% discount on their Council Tax Bill. |
465,000 |
|||||
|
5. Creating new Jobs |
|
|||||
|
Investing in digital infrastructure with the next generation Super-fast fibre optic broadband network for Wirral businesses. |
|
|||||
|
The sum of £1,075,000 be added to the revenue base for a period of four years, complementing the initial sum of £7.7m from Wirral’s Working Neighbourhoods Fund, to create a provision which will allow the phased installation of a brand new, next generation, fast fibre optic communications network in Wirral. Current facilities on Wirral are poor, and this £12m investment in a new, next generation access network will allow current Wirral businesses to compete more effectively in the international market, and will also act as a major incentive to attract to Wirral international companies dependent on fast data transmission who want to locate in the UK or Europe. |
1,075,000
|
|||||
|
This will create jobs in the short term, during the period of installation, and in the longer term as new businesses are attracted in and current businesses develop the capacity to expand. |
|
|||||
|
The Director of Regeneration is asked to bring a full report to Cabinet on March 18th. |
|
|||||
|
New Apprenticeships |
|
|||||
|
The sum of £500,000 be allocated from balances to bring the total number of apprenticeships under the successful Wirral Apprentices Scheme to a minimum of 200, which is double the original target of 100 apprentices. Officers are asked to investigate all relevant sources of finance to ensure this programme continues to grow, working in partnership with Wirral Businesses, giving new opportunities to Wirral’s young people and maximising any opportunities provided by the two major schemes for digital infrastructure and for extensive home insulation (outlined below). Freeze car parking charges To help support local businesses through the fragile economic recovery the sum of £75,000 is allocated to allow car parking charges in the borough to be frozen at 2009/10 levels in Council managed car parks and on street parking areas. No charges will be introduced in areas where there are currently none. |
500,000
75,000
|
|||||
|
6. Investing in Young People and life long education |
|
|||||
|
ADDITIONAL MONEY FOR SCHOOLS Cabinet welcomes the fact, as outlined in the Schools Budget Resolution, that an additional £5.9m has been allocated by the government for Wirral Schools in 2010/11 and notes that this equates to an increase of 4.4% per pupil, which is significantly above the rate of inflation. |
6,400,000
|
|||||
|
Cabinet reaffirms its commitment to Wirral Schools by allocating over £493,000 of Area Based Grant resources. |
|
|||||
|
Building Schools for the future |
|
|||||
|
The sum of £100,000 be allocated from the Efficiency Fund to assist in the specialist preparation of a major bid under the Building Schools for the Future programme, which would produce £90m investment in new and modernised schools buildings in Phase 1 alone. |
100,000
|
|||||
|
Cabinet notes that this is in addition to the building of a brand new secondary school in Woodchurch, the proposals for a new academy in Birkenhead, and the building or refurbishment in the last ten years of 8 secondary schools and one primary school under the PFI scheme, which demonstrate the total commitment of this administration to the improvement of Wirral’s Schools. |
|
|||||
|
Get into Reading |
|
|||||
|
100,000
40,000
|
|||||
|
7. Help for the elderly and vulnerable |
|
|||||
|
£8.9m Investment in Assistive Technology |
|
|||||
|
£1.4m be allocated from the Efficiency Fund, with £400,000 being allocated from the current 2009/10 Efficiency Fund budget in order to allow a rapid start to the programme, and £1m being allocated from the 2010/11 Efficiency Fund budget as the start of a major £8.9m three year investment in Assistive Technology. |
1,400,000 |
|||||
|
This substantial investment in Assistive Technology for Health and Social Care will dramatically increase the number of people who can be supported in their own homes, using the latest sophisticated telecare monitoring and alarm systems, (examples of which can be seen on the Department’s website) with the aim of increasing the numbers supported by this technology from just over 1,500 now to over 14,000 people, by March 2013, enabling many people of all ages and abilities to live safely without fear in their own homes. |
|
|||||
|
This builds on the success of Wirral’s current Assistive Technology Service which has been nationally recognised as good practice and which received the North West award in April 2008 for Innovative Health and Social Care Technology, Health and Social Care Awards. |
|
|||||
|
The Director of Adult Social Services is asked to bring a full report to Cabinet on March 18th. |
|
|||||
|
8. £18m 4 year investment in Free Home Insulation Initiative. |
|
|||||
|
Tackling Fuel Poverty, improving Wirral’s housing stock and reducing our carbon footprint. |
|
|||||
|
The sum of £1,049,000 be allocated to revenue as the first year requirement of an ambitious £18m four year investment in extending a free insulation offer to the whole of the borough’s private sector households, working in partnership with the energy companies under the auspices of the government’s Carbon Emissions Reduction Target scheme. This assumes that government funding will continue after March 2011.(The scheme does not apply to HMRI areas, where free insulation schemes are already available, or to Social Housing where schemes are also already in place.) By the end of year four, the scheme will have been promoted across the whole borough with resources available for widespread free insulation, with the potential for nearly all of Wirral’s homes to have been properly insulated. |
1,049,000 |
|||||
|
Cabinet notes that the scheme will work with the Warmer Wirral initiative and will, in the first instance, be promoted, and resources concentrated, in areas of high fuel poverty. Householders will, where appropriate, also be referred to other, wider, energy efficiency schemes, improving overall levels of carbon reduction, along with other fuel poverty prevention measures such as benefit entitlement checks and referrals into other initiatives such as the government’s Warm Front scheme. These measures should contribute substantially to lifting households out of fuel poverty. |
|
|||||
|
The Director of Regeneration is asked to bring a detailed report to Cabinet on March 18th.. |
|
|||||
|
9. Improving the Environment, Energy Efficiency and Carbon Reduction. |
|
|||||
|
ENERGY EFFICIENCY The sum of £188,000 be allocated from the Efficiency Fund for a number of measures to improve the Council’s energy efficiency, including the installation of Automatic Meter Reading, the use of Automatic PC Power down programmes to ensure non essential computers and monitors are not left switched on when they are not needed, Voltage optimisation and the use of Variable Speed Drives. Together these measures will yield an annual saving of £130,000 as well as contributing to a reduction in the Council’s carbon footprint. Eco Schools Officer and support for initiatives The sum of £80,000 be invested in the creation of a full time post for an Eco Schools Officer with resources to engage with and educate children and community groups to reduce waste and to increase the amount and quality of waste recycled in schools and in children's homes. Energy Efficiency Grants for community buildings To support the long term sustainability of community groups running community buildings, the sum of £66,000 be made available from balances as individual grants to enable those communities to access the appropriate energy efficiency technologies to help reduce their fuel bills and their carbon emissions. The Director of Law, HR and Asset Management is asked to report to Cabinet with the details of an appropriate scheme. Promotion and development of CRED scheme The sum of £30,000 be invested from balances to extend and develop use of CRed, the web-based carbon reduction tools, with residents, school children, communities and our partners, in support of the corporate priority to reduce carbon emissions across the borough. Dont give a Dog a Bad Name The sum of £40,000 be used to build on the current successful scheme with funding being used in conjunction with Jobs for the Future funding in order to employ two or three trainees who will be trained in patrolling and enforcement and add to the strength of the team, giving greater coverage over longer periods of time than is possible at the moment. Additional investment in waste collection round The sum of £114,000 be allocated to provide weekly residual waste collections from those multi occupancy households with insufficient storage space for inclusion in alternate weekly collection rounds. Investment in bulk recycling The sum of £171,000 be invested to secure development of the bulk recycling service for multi occupancy properties. Make the staffing within the waste reduction team permanent The sum of £100,000 be allocated in order to place on permanent staff those existing members of staff working to improve environmental quality standards and encourage recycling and waste reduction. Currently these posts are funded on a temporary basis from the recycling credits. An increase in recycling credits of £230,000 be used to partially offset the cost of these items. 10.Improving Road Safety comprehensive 20mph zones in residential areas The revenue sum of £275,000 be allocated to a rolling four year £1.1m programme to reduce traffic speeds both in residential areas and outside schools, where there are higher numbers of vulnerable road users like pedestrians and cyclists. Cabinet notes that reducing traffic speeds helps reduce the number of accidents, and their severity. This four year programme will phase in statutory 20mph speed restrictions in non major routes in residential areas across the borough. It will also implement (following the introduction of regulations from the Department of Transport) variable time specific 20mph speed signs to be used outside schools on through routes where casualties have occurred, with the signs in use at key times in the school day.
Dealing with extreme winter conditions. Cabinet notes that the Sustainable Communities Overview and Scrutiny Committee has been charged with a formal review of winter maintenance arrangements, following this year’s severe weather and that one of the options under consideration will be the practicality of building a new salt barn to store additional salt as a hedge against future extreme conditions. Should this be deemed necessary, Cabinet accepts an addition to the future capital programme may be required. Addition to “You Decide” allocation for Area Forums. The additional sum of £5,000 per Area Forum be allocated for one year only to allow communities to make provision for individual winter resilience items for their areas, such as salt bins etc. 11..Strengthening Wirral’s communities and increasing choice. You Decide The revenue sum of £260,000 be allocated to change the status of the You Decide programme from a pilot to mainstream activity funded from the base budget, given its continuing success. This success last year saw local communities choose to spend money, amongst other things, on additional sporting and youth activities, including diversionary activity to improve community safety, on crime prevention measures and on environmental improvements. Community Transfers Cabinet welcomes the progress made in transferring a number of the Council’s assets to the community, but recognises that a number of factors, including the need for community empowerment, procurement issues and the impact of the recession on the private sector, mean that the end transfer date in many cases is later than anticipated, although the pace of transfer will quicken considerably in 2010/11. The sum of £578,000 is therefore allocated from balances in 2009/10 and a provision of £1,362,000 is allocated for 2010/11 to allow for the successful completion of transfers without placing undue pressure on other budgets. Guinea Gap Baths In the case of Guinea Gap Baths, Cabinet notes that the original intention was to provide for Guinea Gap baths to remain open while the potential for alternative schemes as part of a longer term waterfront development was explored. The impact of the recession on private sector development now makes this a much more distant possibility. Cabinet therefore asks the Director of Law, HR and Asset Management to bring a report to Cabinet which will allow the Cabinet to restore the funding of Guinea Gap to the base budget when the current funding runs out. Supporting community groups – finance and governance. The sum of £40,000 be allocated to the creation of a peripatetic post, to be held by a qualified accountant and based in the finance department, to support the development of community groups and to support the establishment of models of good governance, sound financial practice and the development of business plans. Co-ordination of services for ethnic minority communities in Wirral The sum of 30,000 be allocated to a new two year post, jointly funded by the local authority, NHS Wirral and the Wirral Multi-Cultural Organisation, in order to stimulate and actively encourage, the establishment of fully representative and inclusive BME strategic leadership in Wirral. This is one-off funding subject to subsequent negotiation and agreement about outcomes, monitoring and evaluation. The post-holder will be expected to identify and generate sufficient income to sustain this post once the Council and PCT funding has ended. 12.Running a more efficient Council The following savings form part of the drive to run a more efficient Council and keep Council Tax increases to a minimum. |
188,000
80,000
66,000
30,000
40,000
114,000
171,000
100,000
275,000
55,000
260,000
1,362,000
40,000
30,000
|
|||||
|
|
|
SAVINGS |
|
|||
|
|
8 months savings from the investment in Assistive Technology of which 2 months are bridged for one year at the cost of £400,000 from balances. |
£1.6m |
|
|||
|
|
EVRs and subsequent staffing re-organisations. |
Net Saving of £560,000 |
|
|||
|
|
Creation of an Integrated Passenger Transport Unit combining the current functions within the Department of Adult Social Services and the Children and Young Peoples Department, to be managed within the Department of Adult Social Services with a consequent transfer of staff and budgets, to yield a saving in 2010-11 of £600,000 with a target saving by 2014 of £1.5m |
£600,000 |
|
|||
|
|
Restructuring of management and administrative staff within the Department of Adult Social Services £240,000 |
£240,000 |
|
|||
|
|
Continuation of the HESPE project continues to provide ongoing staffing savings which for 2010/11 equates to £80,000. |
£80,000 |
|
|||
|
|
Funding the DASS Reform Unit and its activities relating to the development of personalised support from the Efficiency Fund £350,000 |
£350,000 |
|
|||
|
|
Increased income from enforcement under NRASWA |
£200,000 |
|
|||
13.It be noted that, at its meeting on 9 December 2009 the Council calculated the figure of 104,690.0 as its council tax base for the year 2010-11 in accordance with regulation 3 of the Local Authorities (Calculation of Council Tax Base) Regulations 1992, made under Section 33 (5) of the Local Government Finance Act 1992.
14.The following amounts be now calculated by the Council for the year 2010-11 in accordance with Sections 32 to 36 of the Local Government Finance Act 1992 and the Collection Fund (Council Tax Benefit) (England) Direction 2002: -
(a) £870,622,200 being the amounts which the Council estimates for the items set out in Section 32(2)(a) to (c) of the Act;
(b) £581,564,100 being the aggregate of the amounts which the Council estimates for the items set out in Section 32(3)(a) to (c) of the Act;
(c) £289,058,100 being the amount by which the aggregate at 14(a)above exceeds the aggregate at 14(b) above, calculated by the Council in accordance with Section 32(4) of the Act, as its budget requirement for the year;
(d) £157,860,500 being the aggregate of the sums which the Council estimates will be payable for the year into its General Fund in respect of redistributed Non-domestic Rates and Revenue Support Grant, adjusted for the amount of the sums which the Council estimates will be transferred in the year between its Collection Fund and it’s General Fund in accordance with Section 97(3) of the Local Government Finance Act 1988 and any amount which the Council estimates to be transferred between its Collection Fund and its General Fund pursuant to the Collection Fund (Community Charges) Directions under Section 98(4) of the Local Government Finance Act 1988, issued on 7 February 1994;
(e) £1,253.20 being the total amount at (14c) above less the amount at 14(d) above, divided by the amount at 13 above, calculated by the Council in accordance with Section 33(1) of the Act, as the basic amount of its council tax for the year;
Valuation Bands
A £835.47 B £974.71 C £1,113.96 D £1,253.20
E £1,531.69 F £1,810.18 G £2,088.67 H £2,506.40
being the amounts given by multiplying the amount at 14(e) above by the number which, in the proportion set out in Section 5(1) of the Act, is applicable to dwellings listed in a particular valuation band divided by the number which in that proportion is applicable to dwellings in Valuation Band D, calculated in accordance with Section 36(1) of the Act, as the amounts to be taken into account for the year in respect of categories of dwellings as listed in different valuation bands.
15. It is noted that this equates to a Wirral Council Tax rise of 1.29%.
16. It be noted that for the year 2010-11 the major precepting authorities have stated the following amounts of precept issued to the Council, in accordance with Section 40 of the Local Government Finance Act 1992, for each of the categories of dwellings shown below:-
Fire
A £43.18 B £50.38 C £57.57 D £64.77
E £79.16 F £93.56 G £107.95 H £129.54
Police
A £97.49 B £113.73 C £129.98 D £146.23
E £178.73 F £211.22 G £243.72 H £292.46
17. Having calculated the aggregate in each case of the amounts at 14 and 16 above, the Council, in accordance with Section 30(2) of the Local Government Finance Act 1992, hereby sets the following amounts of council tax for the year 2010-11 for each of the categories of dwelling shown below:-
Valuation Bands
A £976.14 B £1,138.82 C £1,301.51 D £1,464.20
E £1,789.58 F £2,114.96 G £2,440.34 H £2,928.40
18. It is noted that this equates to an overall increase in Council Tax of 1.67%.
Supporting documents:
PDF 404 KB