Budget options and our Medium Term Financial Plan

2015/16 – 2017/18

What have we done so far?• Comprehensive Spending Review• All Member discussions – February 2014 and July 2014• Revised forecasts 2015/16 – 2017/18 in July;

– Updated our assumptions, including:• Council tax increase of 2%• Inclusion of £1.4 million per annum for Local Living

Wage Supplement• Continuing reductions in revenue support grant (25-

30%)• Policy Committee debates – Area working / Early Intervention

and Prevention / Libraries

Funding Gap – July Council

2014/15 2015/16 2016/17 2017/18

£m £m £m £m

Forecast Net Spend 324.1 330.0 342.7 353.5

Business Rates Scheme / RSG -160.0 -138.8 -124.8 -114.6

Specific Grants -22.6 -21.2 -22.8 -22.8

Council Tax income -135.8 -140.3 -143.6 -147.0

Forecast income total -318.4 -300.2 -291.2 -284.4

Funding gap (before balances) 5.7 29.7 51.5 69.1

Balances -5.7 -9.3 -10.8 -8.0

Funding gap (after balances) 0.0 20.4 40.7 61.1

MTFP 2015-18 Options and Proposals

• Published on the website on 14 August

• Early open Cabinet facilitated debate on the options

• Encourage alternative costed ideas to come forward

• Proposed allocation of 10% of New Homes Bonus Grant to District Committees (equates to £726,900)

MTFP options and proposals• Main features:

– Not just incremental budgeting– Comprehensive Spending Review– Two main strategies:

• Economic Strategy• Joint Health and Well being strategy

– New potential model

Early intervention and social productivity

• Shift resources to early intervention and prevention

• A single approach to families and individuals

• Build community capacity using the skills resources and assets of communities

• Sponsor a new relationship with citizens

Economic Resilience• Implement Kirklees Economic Strategy Action Plan

which will identify a number of specific targeted interventions designed to achieve the greatest impact on businesses, communities and individuals throughout the district

• Provision of a general web based advice service for welfare benefits

• A new way of supporting people

Health and Wellbeing• Support vibrant towns and neighbourhoods, and the Health and Wellbeing

of the people of Kirklees

• Implement the Kirklees Joint Health and Wellbeing strategy

• Promote local decision making via a new political devolution model

• Tackle local environmental, cultural and leisure priorities

• Address community safety, anti-social and nuisance behaviour

• Build capacity in the community and unlock innovation at a local level

• Support the leadership role of councillors

• Maintain towns and neighbourhoods

Impact of options and proposals

2015/16 2016/17 2017/18

£m £m £m

Funding gap; July update* 29.7 51.5 69.1

MTFP options and proposals (net) -12.1 -23.5 -49.0

Revised funding gap 17.6 28.0 20.1

* Before use of balances

What next?• Budget Consultation:

– Phase 1: 8 September to 3 October;– Phase 2: October through November– How to share your views:

www.kirklees.gov.uk/budget2015 – Or email us at consultation@kirklees.gov.uk

• Outcome debated at January Council

• 18 February 2015 Council decisions