Group Seminar21st January 2017This presentation is private and confidential and accordingly is not a document available for inspection under freedom of information legislation without reference to Councillor Tim MitchellSaturdayAgenda9:009:30 – 9:459:45 - 11:15RefreshmentsIntroduction – Nickie Financial Summary – Tim• 2016-17

2017-18, 2018-19 and beyond Risks and reserves

Examination of Savings options Finance, Property and Corporate Services - Tim Children, Families and Young People – Danny / Richard (Karen) Adult Social Care and Public Health – Rachael / Heather Housing – Daniel / Rachael Business, Culture and Heritage – Daniel / Robert Planning and Public Realm – Robert / Daniel Environment, Sports and Community – Melvyn (Robert R) /

Heather / David City Transport, Highways and Parking – Melvyn (Robert R) /

Heather / Danny Public Protection and Licensing – Nickie / Antonia

Coffee Break Council TaxCity For All Close of meeting

11:1511:3012:00 – 12:30 12:30

Page 2BackgroundProcess for 2017/18 budget

Started in May 2016 Member reviews October – November 2016 Scrutiny 1-3 February 2017 Cabinet approval 20 February 2017 Full Council 1 March 2017

Key Values Clean Streets Low Tax Protecting the Vulnerable

Lobbying Agenda – Devolution, business rates, planning and licensing fees. Tri-boroughCommercial Income

 Page 3Finance SettlementKey points of note –

Changes to “core funding” largely as expected ASC precept can optionally be raised by 3% in

both 2017/18 and 2018/19 but max 6% across next 3 years. Current assumption is 2% per annum for next 3 years.

Changes to the New Homes Bonus reduced income by £3.5m in 2017/18 and £2.1m in 2018/19

WCC will receive a one-off ASC grant allocation of £1.33m which partially offsets the NHB reductions

 Page 4Budget – January 2017 Decisions & Agreed Direction

AGREED DIRECTIONFour approaches to be targeted in achieving savings, ensuring we:Transform our servicesMaximise commercial opportunitiesCreatively finance while maintaining public probity Continue to improve efficiencies

 Page 5FINANCIAL POSITION – THIS FINANCIAL YEAR 2016/172016/17End year estimated general reserves of circa £46MCurrent forecast underspend £12M, of which £8M Parking Capital programme being significantly re-profiled into 2017/18 Accounts on track for further early close and improved quality

 Page 6MEDIUM TERM PLAN – Next Three Years2017/18Target circa £35M net, found in full Deliverability will be key2018/19Net target £37M, but significantly short of this target. Gap of circa £30M (under review). Gross savings will be higher. A number of proposals will need to be replaced or reassessed for achievability. We are likely to face some difficult decisions to be able to deliver this saving. Work to find savings to fill this shortfall needs to be begun at the earliest opportunity so as to finalise decisions, start consultation and enable implementation.2019/20No target determined yet, but if funding is flat there will still be a need to cover contract and staffing inflation, service pressures and the impact of legislative change etc. The need for savings will continue.

 Page 7Risks – Commercial IncomeRecent years’ savings have increased commercial income to the point where we are becoming at risk from any economic downturn.The 2016/17 budget includes £126.5m of fees and charges income, of which the top 5 sources of income are:ParkingCommercial Waste Road Management PlanningSports & Leisure£78.8m £15.5m £6.7m £6.3m £4.1m

 

Representing a total £111.4m or 88% of all fees and charges.In 2017/18, out of gross savings of £41.8m,

approx £18m relates to commercial income, £10m of which is from Parking. It can therefore be seen that with a budget approaching £145m for commercial income, a downturn could have a dramatic impact on the outturn.Page 8Risks - OtherThere are a wide range of other risks that the Council faces:

An economic downturn, e.g. from Article 50, could hit commercial income. Parking, Road Management, Planning, Waste, CIL all susceptible – a 10% fall would result in a loss of around £14m.

In year planned savings could fall short of expectations

It could take longer to identify and deliver future savings required.

The housing shortfall and cost of temporary accommodation will continue to bring cost pressures

Legislation to be implemented in housing and universal benefits could impact further

The growing cost of the aging population is becoming real and changes made by NHS will impact on social care costs.

Other grants are still potential targets for cuts (New Homes Bonus, Better Care

Fund)

 Page 9Risks – Capital ProgrammeThere are a number of risks associated with the Capital Programme that the Council faces:The capital programme is very important and significant and brings with it a number of risks, some are shown below:

Inflation risk – construction cost inflation would increase costs

Interest rate risk – currently historically low, increases would affect the cost of financing

Slippage risk – continued slippage of the programme creates uncertainty and difficulty with financing the programme

Market risk – heavy dependency on capital receipts and commercial income

 Page 10Risks - ReservesThe importance of building a healthy general reserves position while we can is increasingly apparent:If some or all of the risks noted above materialise and cannot be mitigated reserves would be neededIn the circumstances the call on reserves could be majorHistorically this has happened – circa 2008/09 with the economic downturn when reserves fell very significantlyEssential that we continue to increase reserves whenever we can

 

Page 11Gross Savings Identified by Cabinet Member for 2017/18 to 2018/19Cabinet Portfolio – from 25th January

2017/18 £000

2018/19 £000

Finance, Property and Corporate Services 8,599 4,610Adult Social Services and Public Health 6,835 3,103Children, Families and Young People 5,299 1,887Housing 1,737 2,000Business, Culture & Heritage 3,763 200Planning & Public Realm 750 -Environment, Sports and Community 2,501 -City Transport, Highways and Parking 12,297 110Public Protection and Licensing 85 -TOTAL 41,866 11,910

 2018/19 figures above are a continuation of 2017/18 proposals and exclude new proposals for 2018/19.Page 12

Finance Property & Corporate ServicesTim MitchellPage 13Key IssuesDeclining Property Income – Property income for the Council is contracted and mostly secure. However risk exists over the quantum of income increases at rent review and the re-letting of void accommodation.

Project and Programme Management – Establish a structure that is able to co-ordinate, monitor and deliver across the capital programmeDelivery of digital programme transformation

Page 14Key Issues

Stabilising and optimising the Managed Service Programme will eliminate waste and inefficiency and generate greater capacity towards achieving the Council’s strategic objectives.

Delivery of the commercial trading model for procurement. The income target set is ambitious and any unforeseen delay or change in the market conditions such as Brexit can dilute the planned income.

Delivery of some of the ICT savings will require end user cooperation e.g. notifying ICT when people leave so that accounts can be closed and savings realised.

Page 15Initiatives Proposed 2017/18Initiatives Proposed £000Digital Transformation 533Tri-Borough Corporate Services - Legal Services  266Business Intelligence 200Reduced spend on Legal Services 100Increase in Council Tax Base 472Revenue & Benefits – contract extension 233Commercial operating model for procurement 350

Page 16Initiatives Proposed 2017/18 (2)Initiatives Proposed £000

Corporate Property Strategy 76Major Projects - Income generation 687IT staff structure and trading 250Transition to new comms contract/model 291Property Rationalisation and Asset Management

1,257

ICT - CCTV contract on Parking 1,386

Recharging of Comensura contract 250Review of staffing within PPC 200Review of staffing, supplies and services - Chief of Staff  100Review of the complaints process 110City Treasurers Budget Reviews 393

Page 17Initiatives Proposed 2017/18 (3)Initiatives Proposed £000Review of vacancies within corporate services  316Review of ICT budgets 657TOTAL 8,599

Page 18Key Initiatives additional information (1)Digital transformation (£0.533m):The programme will look to drive customer contacts online, streamline business processes, thereby avoiding unnecessary and costly contacts and deliver process efficiencies to reduce running costs of services. The outcomes will be more efficient processes, digital by default customer contacts and an enhanced customer experience overall.Tri-Borough Corporate Services - Legal (£0.266m + £0.100m):To generate additional external trading income (£0.250m); reduce external barristers fees by building an in-house advocates team (£0.100m); plus residual pay cost benefits from the legal restructure implemented in April 2015.Business Intelligence (£0.200m):It is expected that the Business Intelligence tool can assist in identifying savings within the council. Potential areas are being explored to assist services with enhanced management information to enable them to reduce costs or generate additional income.

Page 19Key Initiatives additional information (2)Council Tax base increase (£0.472m):This reflects the annual growth in the number of households in the city, leading to anincrease in amount of council tax collected.Commercial operating model for procurement (£0.350m):This initiative will generate income through a pan London Frameworks let by the council. It will also promote the capitalEsourcing as solution of choice for local authorities. Development of Business Case for procurement traded model ”consultancy practice” offering services to other local authorities and public sector organisations.Major Projects Income Generation (£0.687m):Aimed at recovering our costs associated with the major redevelopment sites atLuton Street, Tollgate Gardens and the Sir Simon Milton UTC.Transition to new comms contract/model (£0.291m):The savings will be realised through a review of the telephony contract and maximise value for money.

Page 20Key Initiatives additional information (3)Property Rationalisation and Asset Management (£1.257m):This programme is aimed at reducing the Council's operational property footprint to reduce costs.ICT - CCTV contract on Parking (£1.386m):Savings will be realised from end of Serco Wireless City contract (expires Dec 2016) currently used for CCTV parking enforcement.City Treasurers budget reviews (£0.393m):Review the potential for longer term investments and alternative investment opportunities, ensure the most cost efficient financing of the capital programme and review all budgets to ensure income is maximised and expenditure minimised. Undertake a review of non pay spend within the Directorate to reduce spend.Review of ICT budgets (£0.657m):Charges for the BT Lot 1 contract are scheduled to decrease in 2017/18 due to the cessation of legacy CapGemini Datacentre services and the transition of these functions to Office 365 (primarily) and the BT Cloud “SIP” datacentre platform.

Page 21

Children, Families & Young People

Richard HollowayPage 22Key Issues

National Funding Formula for Schools and role of LA in Education

Special Educational Needs: increased numbers of young people receiving an Education, Health and Care (EHC) Plan and home to school travel assistance due to the extension of the age range to 25

Legislative Pressures on Placement Costs (Homeless 16-18 Year Olds, UASC and Care Leavers)

Ensuring that children remain safe and the excellent standard held by Family Services (Outstanding Ofsted grading) is not allowed to slip

Partners In Practice/ Centre for Social Work (Sustainability)

Page 23Initiatives Proposed 2017/18 (1)Initiatives Proposed £000

Commissioning contracts (specialist services)  587Commissioning team 17Early Help - Children's Transformation

3,135

Education 140Finance & Resources 400Focus on Practice 130Other family services savings 540

Page 24Initiatives Proposed 2017/18 (2)Initiatives Proposed £000Virtual School Funding 300Passenger Transport Mitigations  50

TOTAL 5,299

Page 25Key Initiatives additional information (1) Commissioning Contracts:Contract re-procurement and contract savings including legal services (£0.587m) Full year effect staffing restructure (£0.017m)Early Help (£3.135m) – full year effect of savings delivered in 2016/17

Reconfiguration of internal services for Early Help

Reconfiguration of Children Centre's – Best start in life

Reconfiguration of Youth servicesEducation Services (£0.140m):

Asset Strategy - Reduction of discretionary expenditure

Funding and Income Opportunities Staffing opportunities and efficiencies

Page 26Key Initiatives additional information (2)

Finance and Resources (£0.400m):Savings from release of the Revenue budget for Building Schools for the Future

Focus on Practice (£0.130m):Focus on Practice – reduced expenditure through reduced demand, lower numbers

of children in care due to more effective family intervention

Other Family Services Savings (£0.540m): Further Family services savings though changes

in service configuration Funding and income opportunities Placement cost reduction and demand

management, review of high costplacements

Review of Virtual School Funding (£0.300m) Passenger Transport Cost Pressure Mitigation

(£0.050m): Independent travel training Eligibility reviews

Page 27

Adult Social Services and Public HealthHeather ActonPage 28Key Issues

Demographic growth and an increasingly ageing population

Increase in acuity and complexity of needs

Workforce challenges, pressures and increasing costs due to the introduction of the living wage

Customer journey and service re-design Reduced opportunities for commissioning

and contract efficiencies Fragile state of the care market Focusing on preventative activities

including cross-council focus Working more closely with Health partners

on integration and service transformation. There is a National expectation that full integration has been achieved by 2020 as part of the NW London Sustainability and Transformation Plan

Pressures in homecare linked to prevention of unnecessary hospital admissions and safe and timely discharge

Page 29Key Issues

Further reductions in the Public Health Grant allocation from Central Government.

Identifying ways to achieve and fund Public Health outcomes in other Council departments

to improve health and wellbeing and reduce health inequalities across the life course.

It remains essential that Public Health funds are only spent on activities whose main or primary purpose is to improve the public health of local populations.

Significant re-procuring, staff restructure and redesigning services in light of reducing resources

Page 30Initiatives Proposed 2017/18Initiatives Proposed £000A – Commissioning, Transformation and Contract Efficiencies 383B – Well being and prevention services - including Assistive Technology 922C – Placements for people with learning disabilities and supplies/services review 200D – Health Integration Benefits 500E – High Costs, High Needs packages review 150F – Public Health investment in reduction in social isolation 200G –Line by line review of supplies and services 200H – Mental Health: Supported Housing and Placements review 100

I – Increased funding through 2017/18 ASC levy increase of 2% 983J – PH efficiencies to fund other public health outcomes

3,197

TOTAL 6,835

Page 31Key Initiatives additional information (1)Commissioning and Contract efficiencies (£0.383m):Consists of a programme of work-streams, resulting in a combination of maximising value out of existing contracts, re-procurement, contract reductions, renegotiation with existing providers and harmonising contracts where beneficial. This saving will not result in service reduction as ASC customers will still have their assessed needs met as per the Council’s statutory duties.Well being and prevention services – including Assistive Technology (£0.922m):Consists of an evolution of work undertaken over the past two years to use Assistive Technology and other preventative services to reduce new and increasing demand for home care. Practitioners will consider the use of assistive technology, equipment, reablement and/or major adaptations before

commissioning new or increasing long term home care and/or support services.Learning Disability placements and supplies/services review (£0.200m): Consists of a continuation of work to manage budgets, the market, client pathways and individual placement reviews to deliver efficiency savings.

Page 32Key Initiatives additional information (2)Health integration benefit share (£0.500m):This proposal sets out the anticipated share of financial benefits that will be achieved through work with Health. This will be achieved through the implementation of integrated services within the Better Care Fund (BCF) and supporting other existing associated integration programmes.High cost, high needs packages review (£0.150m):This is a continuation of work to promote independence amongst existing clients and in particular, targeting highest cost packages and placements to deliver efficiency savings.Public Health investment in reduction in social isolation (£0.200m):Adult Social Care delivers public health outcomes for tackling social isolation and is

therefore funded via the Public Health ring fenced grant.

Page 33Key Initiatives additional information (3)Line by line review of supplies and services (£0.200m).Consists of a continuation of work to manage budgets to deliver efficiency savings.Mental health: supported housing and placements review (£0.100m). Consists of a continuation of work to manage budgets, the market, client pathwaysand individual placement reviews to deliver efficiency savings.Increased funding through 2017/18 ASC levy increase of 2% (£0.983m).This represents the discretionary precept based levy which is used to fund pressures in Adult Social Care. The corresponding budget pressures are detailed in the relevant section of this presentation.PH efficiencies to fund other public health outcomes (£3.197m).Public Health has identified savings, efficiencies and reserves to support othercouncil departments which meet public health outcomes.

Page 34

HousingRachael RobathanPage 35

Key IssuesContinuing Increased Demand for Temporary Accommodation - Partly driven by long term unemployment this issue will continue to affect the CityHousing Options – need to leading the reshaping of the existing Housing Options Services contractRough Sleeping – Major savings to be delivered

Page 36Initiatives Proposed 2017/18Initiatives Proposed £000Review of Housing Options and Homeless Service costs  500Temporary Accommodation homes purchase 357Rough Sleeping and Supported Housing 880TOTAL 1,737

Page 37

Key Initiatives additional informationReview of Housing Options and Homeless Service costs (£0.500m):This is a reshaping of the existing Housing Options Services contract with majorchanges due to start in October 2017.Temporary Accommodation homes purchase (£0.357m):This involves two initiatives which propose to acquire more properties directly &therefore create an income stream for, rather than a cost to, the General Fund.Rough Sleeping and Supported Housing (£0.880m):Through a blend of re-procurements, efficiencies, service redesign and reduction in service levels, delivery of any savings will be designed to minimise impact on other service areas.

Page 38

Business, Culture & HeritageRobert DavisPage 39Key IssuesEmployment - numbers of long term unemployed supported into work has grown this year by 150%. Strong links are being built with housing, adults and children's services. These include two shared posts: 1) to support

apprenticeships and 2) the other to promote employment opportunities for looked after children.Enterprise Space Programme - to include new spaces - Ingestre Court in Soho and Hub Paddington - adding value to the Place Making agenda.The Opportunity of Securing External Funding – £5m in external funding has been raised in the last 12 months for broadband connectivity, enterprise space and employment. These are multi-year programmes and currently represent future commitments. The service will continue to look for such opportunities.Agreement for media sites and implementation timeline of projects

Page 40Key IssuesBusiness Engagement – Continuing pro-active engagement with the business community to address growth issues and to

deliver social value will be a priority over the next year.The Business Unit supported over 200 companies with a 90% clear up rate for their problems. This will grow as we seek to co-ordinate support across the council.Enterprise Week - attracted 3000 young people to a week of events - we want to make it a year long programme promoting enterprise, creativity, career planning (not just jobs), apprenticeships and to help reduce NEETsThe BIDS offer new opportunity to promote employment, enterprise and business engagement.

Page 41Initiatives Proposed 2017/18Initiatives Proposed £000

Outdoor Media 2,250

Events and Films 243Lord Mayor's Secretariat 75Economy team - alternative funding 110

Street Trading Licensing Fees Income200Westminster Adult Education Service 42Review of staffing, supplies & services (GPH)  843TOTAL 3,763

Page 42Key Initiatives additional information (1)Outdoor media phase 2 (£2.250m):A stream of revenue for Westminster City Council (WCC), utilising Council-owned assets and land for advertising and sponsorship opportunities. Projects will require initial council investment to develop, fabricate and construct, but this will be underwritten by the commercial value of the sites and the income they generate.Events and Filming fees (£0.243m):Income from fees and charges for City Promotions, Events and Filming.Lord Mayor's Secretariat (£0.075m):Delivered through a reviews of T’s & C’s of Macebearer and a review of workload toassess whether current staffing levels can be justified.Street Trading Licensing Fees Income (£0.200m):This is the first fee review proposal to be taken to the licensing sub-committee since 2003. Statutory

consultation process will commence as per requirement of City of Westminster Act 1999. Dependent on street trader views/responses as part of consultation.

Page 43Key Initiatives additional information (2)Westminster Adult Education Service (£0.042m):This is a commitment to reduce costs and enhance efficiency across this servicearea.Review of Staffing, Supplies & Services in GPH (£0.873m):A series of proposals have been pulled together from the existing GPH budgets. These primarily result from the reductions of operational costs across the GPH Directorate and the creation of the new Place Shaping team.

Page 44

Planning & Public RealmDaniel AstairePage 45Key IssuesDeclining Planning Income – Uncertainty over Brexit and the economy may have a longer term impact on both Planning income and the Code of Construction Impact initiative.Impact of Strategic Infrastructure Schemes – Continuing to manage the long term impacts of the Thames Tideway, HS2, and Crossrail 2.

Housing and Planning Act 2016 – Government is expected to implement a number the provisions made in the following Act. This includes the idea of utilising alternative suppliers to determine planning applications.Impact of any economic downturn on Code of Construction Practice income

Page 46Initiatives Proposed 2017/18Initiatives Proposed £000Development Planning Transformation  50Code of Construction Practice 700TOTAL 750

Page 47Key Initiatives additional informationTransformation (£0.050m):

The planning application process went digital in November 2015. Around £800k of savings have been delivered from this programme through the gradual reduction in overheads e.g. paper / postage / staff time etc.Code of Construction (£0.700m):The new Code of Construction practice went live in September 2016. As works start on site following approval of schemes by Planning, the level of income is expected to increase as more chargeable sites work their way through to commencement on street

Page 48

Environment, Sports & Community David HarveyPage 49Key IssuesDelivery of new target operating model in LibrariesCommercial Waste Income would be affected by an economic downturn.

We are collecting more waste than projected and as such this is putting pressure on our waste disposal budgets, currently projected to overspend by £630k – can be accommodated within increases in commercial waste income.Possible financial impact of the Parks and Cemeteries contract re-let

Page 50Initiatives Proposed 2017/18Initiatives Proposed £000

Commercial waste income 1,250

Sports & Leisure - Phase I 265Libraries Service Delivery - Service Reform 750Registration Service Income Growth - Commercialisation  150Further staffing and channel shift efficiencies 86TOTAL 2,50

1

Page 51Key Initiatives additional informationCommercial waste income (£1.250m):Income growth is planned through a review of fees to take into account inflationary pressures and market conditions; increased marketing activities and continued enforcement action against unpaid commercial waste.Sports and Leisure – Phase I (£0.265m):This proposal will deliver a cost neutral service as a minimum by 2018/19. Thetransformation programme promotes a fully commissioned sports & leisure service.Libraries Service Delivery - Service Reform (£0.750m):A new vision and target operating model have been developed, to implement a new organisational structure, develop enhanced partnerships and volunteering, there is also further consideration around commercialisation to increase income, and a review of the digital provision for the service.Registration Service Income Growth – Commercialisation (£0.150m):To further boost the income generated in the service by additional new customer

service offers and returning to Old Marylebone Town Hall.

Page 52

City Transport, Highways & ParkingDanny ChalkleyPage 53Key Issues

Potential economic impacts on parking income

The reductions in Highways revenue budgets mean that there is very little resilience left, however this will be managed through a corporate finance held reserve which can be called on if needed, e.g. a sudden increase in potholes following a harsh winter.

Page 54Initiatives Proposed 2017/18Initiatives Proposed £000Highways - Alternative Service Delivery Models 140Highways - Service Level Changes 260Compliance and audit contract - reduction in service levels 25

Highways - Expenditure Review 1,060

Parking Transformation Programme 819

Parking Suspensions Charges Review – Demand Management 

8,000

Review of On Street Parking charges to manage demand 350

Page 55Initiatives Proposed 2017/18 (2)Initiatives Proposed £000CCTV - Moving Traffic 643Introduction of minimum stay duration (Parking)  1,000

TOTAL 12,297

Page 56Key Initiatives additional information (1)Highways Expenditure Review (£1.060m):Following an expenditure review savings or additional income have been identified within the Highways service. This includes increases in project

management income, efficiencies within the Highways’ maintenance contract, staffing savings, and reductions in supplies and services budgets.Parking Transformation Programme (£0.819m):Following the new contract which went live in November 2014 further benefits are being realised over the contract term as a result of continued improved operational efficiencies, linked to the implementation of new technology.Parking Suspensions Charges Review – Demand Management (£8.000m):This recognises the higher than budgeted income following the introduction of a tiered suspension charging structure. Implementation has resulted in the desired behaviour change and seen a reduction in suspension days, freeing the kerbside for motorists and other users, but not to the budgeted level.

Page 57Key Initiatives additional information (2)Review of On Street Parking charges to manage demand (£0.350m):This relates to project implementation costs for the parking occupancy survey nowbeing taken out of the base budget as the work is complete.

CCTV moving traffic (£0.643m):21 old cameras replaced with 12 automated cameras at new locations. Compliance at new locations is likely to be low initially, resulting in the issue of PCNs. Compliance will be monitored and cameras rotated to other locations as and when safety improvements are observed.Introduction of minimum stay duration (£1.000m):Introduction of a minimum stay length for parking transactions generating additional income through ensuring all parking transactions are for an appropriate minimum stay duration.

Page 58

Public Protection & LicensingAntonia CoxPage 59Key Issues

Historically a significant number of temporary staff employed in PP&L – this is now being tackled and impact on budgets will be closely managed.

Consideration is being given to how the digital savings that have to be made will be delivered and this will be reported back to the cabinet member over the coming months.

Pest Control – service is non-statutory and does not generate sufficient income to cover its cost. A number of options are currently being considered which will be reported back to the cabinet member in due course.

Better Working in our Neighbourhoods – opportunity to improve how we work in neighbourhoods, focusing on more blending of roles and improved information to enable us to focus our resources more effectively.

Devolving powers to others, eg BIDs.

Page 60Initiatives Proposed 2017/18Initiatives Proposed £000Commercial Opportunities in Private Rented Accommodation (Licensing) 35Licensing Fees Income 50TOTAL 85

Page 61Key Initiatives additional informationCommercial Opportunities in Private Rented Accommodation (Licensing) (£0.035m):Ensuring that we maximise opportunities under our current policies and processes in the licensing of Houses in Multiple Occupation (HMO). This is with the aim of improving conditions for local occupiers and the surrounding community.Licensing Fees Income (£0.050m):A review of all fees where the Council has discretion in the level of fees charged on a cost recovery basis.

Page 62

Council TaxTim MitchellPage 63FINANCIAL POSITION – COUNCIL TAX & INFLATIONCOUNCIL TAXContributed circa £49.4m in 2016/17 towards the Council’s General Fund funding. Group froze Council Tax in 2007/8 for eight years.INFLATION (CPI) INCREASESYear CPI WCC* GLA Band D Total WCCPICisPsIour` Inflated

Band D Precept Band D Band D2006/07

78.8 £370.39 £288.61 £659.00 £370.39

2007/08 81.0 £377.80 £303.88 £681.68 £380.752008/09

83.0 £377.80 £309.82 £687.62 £390.22

2009/10

85.6 £377.80 £309.82 £687.62 £402.52

2010/11

88.2 £377.80 £309.82 £687.62 £414.46

2011/12

92.0 £377.80 £309.82 £687.62 £432.49

2012/13

95.1 £377.80 £306.72 £684.52 £447.35

2013/14

97.8 £377.74 £306.72 £684.46 £459.80

2014/15

99.5 £377.74 £299.00 £676.74 £467.72

2015/16

99.5 £377.74 £295.00 £672.74 £467.87

2016/17

99.8 £392.81 £276.00 £668.81 £469.20

*CPI is sourced from the Office for National Statistics**2016/17 WCC Band D includes the Adult Social Care Precept at 2%***Excluded from this table are precepts for Queen's Park Community Council and Special Expenses for Montpelier Square. 

Page 64FINANCIAL POSITION – COUNCIL TAX OPTIONSCOUNCIL TAX

In 2016/17, applying a CPI-inflated Band D amount since 2006/07 of £469.20 would have yielded £58.7m of Council Tax income compared to the £49.4m expected on the current Band D amount - a saving to the average Band D taxpayer of £76.39 but a loss of Council Tax income to the Council of £9.4m.FOR 2017/18 OPTIONSEach 2% would generate £0.983m, 1% generates £0.491m (Plus cumulative effect going forward if maintained in future years). Options F and G below would require a referendum.

Options Change (£)

Band D (£)

AFreeze Council Tax, no Adult Social Care Levy - £392.81

BAgree Adult Social Care Levy at 2% +£7.85 £400.66CIncrease by 1.0%, plus 2% levy +£3.92 +

£7.85 £404.58

DIncrease by CPI (1.6% Dec 2016), plus 2% levy

+£6.28 + £7.85 £406.94

E Increase by 1.99% plus 2% levy +£7.81 + £7.85 £408.47

F Increase by CPI (2.3% Est Council inf.), plus 2% levy 

+£9.03 + £7.85 £409.69

GIncrease by CPI (2.7% 4th Qtr 17/18), plus 2% levy

£10.61 + £7.85  £411.27