Chris Malyon Director

1
Chris MalyonDirector

• Given the CSR 07 Settlement, the Challenges
  facing Local Government Finance

2
Issues to be covered

• CSR Overview
• Direct Grants
• Concessionary Travel
• Performance Framework
• Efficiency
• Grant Distribution - ACA

3
Political Statements

• Local Government Minister John Healey
• tight but fair settlement
• Communities and Local Government Secretary Hazel
  Blears
• its not super generous
• Chairman of the Local Government Association Sir
  Simon Milton This is the worst settlement in a
  decade..will mean above inflation rises in
  council tax and there is a black hole in social
  care funding

4
CSR 07 Summary

• An increase in local governments Aggregate
  External Finance of
• 4.2 in 2008/09
• 3.5 in 2009/10
• 3.4 in 2010/11
• 5bn of specific grant transferred to non ring
  fenced grants
• Power to implement a Supplementary Business Rates
• Revised LABGI scheme (150m)

5
CSR07 Summary Continued

• 3 Cashable savings included (4.9bn)
• Reduction in performance indicators
• Capping limit 5
• Consultation paper on the care system
  insufficient funding in the system
• Increase in housing investment
• Increase in PFI funding for waste
• Power to charge for waste pay as you throw!

6
The CSR07 contextNet Aggregate External Finance
7
(No Transcript)
8
Direct Grants
CSR07 Grants to be delivered via Revenue Support
Grant Access and Systems Capacity Delayed
Discharges Children's Services Waste Performance
and Efficiency
9

• CSR07 Grants to be delivered via Area Based
  Grant
• A comprehensive list to be published with
  provisional local government finance settlement.
• Area Based Grant will include, as a minimum, the
  following grants.
• In addition, CLG aim to include Supporting People
  programme grant from 2009/10, dependent on pilots
  in 2008/09
• DCSF aim to include Contact Point from 2010/11.
• 14-19 Flexible Funding Pot DSCF
• Adult Social Care Workforce (formerly HRDS and
  NTS) DH
• Aggregates Levy Sustainability Fund Defra
• Care Matters White Paper DCSF
• Carers DH
• Child and Adolescent Mental Health Services DH
• Children's Social Care Workforce (formerly HRDS
  and NTS) DCSF
• Children's Fund DCSF

10
Choice Advisers DCSF Cohesion CLG Conne
xions DCSF Crime Reduction, Drugs Strategy
and Anti Social Behaviour HO Detrunking DfT
Education Health Partnerships DCSF Extended
Rights to Free Transport DCSF Extended Schools
Start Up Costs DCSF Local Enterprise Growth
Initiative CLG Local Involvement Networks
DH Mental Capacity Act Ind Mental
Capacity Advocate Service DH Mental Health
DH Positive Activities for Young People
DCSF Preserved Rights DH Secondary
National Strategy Behaviour and
Attendance DCSF Secondary National Strategy
Central Coordination DCSF Preventing
Extremism CLG
11
Primary National Strategy Central
Coordination DCSF Respect HO Road Safety
Grant DfT Rural Bus Subsidy DfT School
Development Grant (Local Authority
element) DCSF School Improvement
Partners DCSF School Intervention
Grant DCSF School Travel Advisers DCSF S
ea Fisheries Committee Defra Stronger Safer
Communities Fund CLG Supporting People
Administration CLG Sustainable Travel General
Duty DCSF Teenage Pregnancy DCSF Working
Neighbourhoods Fund (Neighbourhood Renewal
Fund) CLG
12
(No Transcript)
13

• Concessionary Bus Travel Act 2007

14
What does the Act mean?

• Good news for people, environment traffic
  congestion
• Peak time free travel anywhere in England
• Reimbursement based on boarding
• Admin stays with present CTAs for now
• National SMART (dumb) Pass design
• Funding of pass distribution scheme
• Procurement of SMART Cards
• Regulations Guidance due soon

15
Actions needed by you

• Plan in place
• Research DfT Bulletins
• Collect client data photos
• Key decisions made-
• Enhancements to national scheme?
• Procurement arrangements for cards and bureau
• Budget in 2007/08 for set up and admin
• Budget in 2008/09 and forwards for admin and
  reimbursement
• Review existing scheme usage data
• Negotiations with operators
• Reimbursement on the basis of boarding

16
Preparations

• Many CTAs still not upto speed
• Checklist advice in Bulletin 7 (DfT)
• Plain English Guide of DfT website
• Framework Agreements for procurement of SMART
  Cards
• Help available from DfT support team
• Media plan by DfT

17
Funding current position

• Setup grant increased to 4/pass
• 212m to be Special Grant not Formula Grant as in
  2006
• Consultation distribution formula
• CSR07 announced grant levels to meet
  reimbursement costs-
• 212m in 2008/09
• 217m in 2009/10 (2.36)
• 223m in 2010/11 (2.76)

18
Funding current issues

• Grant distribution consultation - four options
  focus on
• Option 1 day visitors, net in-commuters, popn
  density, incapacity benefit etc.
• Option 2 eligible popn, and density, passes
  issued in whole local area
• Option 3 eligible popn, net in-commuters, bus
  stop density
• Option 4 eligible popn, Bus journeys, overnight
  visitors, retail floor space.
• Payment direct to County where as districts
  agree?

19
Funding current issues

• We will have differing views!
• Work of the LGA and CFWG to make sure
  distribution is as right as possible
• Winners losers why?
• Distribution wrong in 2006?
• Quantum wrong in 2006, 2007 and 2008?

20
Funding current issues

• Current costs of reimbursement rising-
• Increase in patronage
• New and innovative bus routes
• Bus fares inflation (e.g. 12 to 20)
• Appeals against reimbursement factors
• Current Budget pressures

21
Delivering better outcomes for local people The
new performance framework
22
The Improvement Journey
23
Overall Current Performance of District
Councils in CPA
24
Why is change so important?

• We are a high performing sector
• Strong record on efficiency
• But
• CPA has reached its limits
• New emphasis on efficiency
• New challenges and solutions
• Devolution better decision making

25
Our long term objective has always been to match
ambitious national standards with a vigorous
local autonomy and flexibility, where we maximise
efficiency, equity and a personalised service for
the patient, the pupil and the citizen generally
- Gordon Brown More local decision making is
the key to better services and greater public
satisfaction and will show what local democracy
in action can do Hazel Blears
26
What does it mean in practice?

• The new performance framework will include
• New LAAs that deliver key local priorities
• a reduced set of 200 indicators
• Devolved improvement and efficiency support and
• a more proportionate and outcome-focused
  assessment through CAA

27
LAAs the heart of the NPF

• LAAs will
• Reflect story and ambitions for people and places
• Build on community strategy
• Negotiate shared priorities
• Agree up to 35 targets (17), chosen from the 198
• Not include mandatory targets
• Be agreed by June 2008
• Last for 3 years
• Be funded by a general area-based grant
• Will attract PRG amount yet to be confirmed

28
LAAs are a really powerful conceptual framework
for devolution, for joining up services locally
and for having a single conversation with
government Sir Simon Milton
29

• New National Indicator Set announced in CSR
• Cut from 600-1200
• Help focus resources
• 198 Indicators to track PSA targets
• For local authorities working alone or in
  partnership
• Key data source for CAA components
• Technical consultation will follow announcement

30
CAA - a new approach?

• The newest element of the CAA will be the area
  risk assessment. This will hold members of the
  local strategic partnership jointly to account
  for their impact on the priority outcomes for
  local people, as set out in the Local Area
  Agreement
• Gareth Davies, Audit Commission

31
CAAassessing performance

• Citizen/outcome-focused, area and risk-based,
  proportionate
• annual area risk assessment based on LAA
• annual scored Use of Resources judgement
• annual scored Direction of Travel judgement
• annual publication of performance against 198
• judgments for any inspections triggered by risk
  assessment.

32
(No Transcript)
33

• We are giving local government the space it
  needs to thrive - they must now make the most of
  this once in a generation opportunity and deliver
  on local peoples priorities and take the tough
  decisions to make a positive difference." Hazel
  Blears
• The rest is up to us!

34
Efficiency

• A national target
• A national PI
• Changed reporting requirements
• New resources to support programme
• A VFM Delivery Plan
• Streamlined arrangements for supporting
  authorities

35
The efficiency challenge Efficiency Savings
SR04 and CSR 07
36
Improvement and efficiency strategy

• Delivering better outcomes through
• Supporting improvement
• RIEPs at the heart of sector-led improvement
• Across the partnership
• To meet LAA targets
• Role of LGA
• Increasing efficiency with the help of 150m!
• procurement,
• commissioning,
• business process
• Driving innovation
• Focus on service transformation
• Reducing bureaucracy and waste
• Sectors architecture
• Better coordination and streamlining

37
Service transformation agreement key elements

• Tell us once initiative
• Reducing avoidable or duplicated contacts with
  call centres and local offices
• Website rationalisation
• Accreditation of publicly funded call centres
• Empowering individuals to influence service
  design and delivery
• Improving management of information and identity
  across government delivery systems

38
Delivering Efficiencies within the South East
Region

• South East Centre of Excellence
• Regional Improvement and Efficiency Partnership
• County Wide Improvement Boards
• Hampshire Improvement Board
• Hampshire Improvement Group
• Capacity Fund up to 2008
• Bid for new resources 3 year programme

39
Hampshire IOW Improvement Board

• 1.3m Capacity Fund
• New Bid Being Developed
• Revenues Benefits
• Planning
• Waste Management
• Wellbeing
• Leadership Management Capacity
• Project Management
• Learning Portal
• Recruitment Portal
• Member Development Community Engagement
• Procurement

40
Shared Services Opportunities

• Revenues and Benefits Project
• CIPFA SDCT Financial Services Project

41
Grant Distribution

• No major changes to methodology
• Consideration of alternative tourism data
• Population figures still big issue
• Draft Settlement Figures December
• Could be yr 1 only with yrs 2 3 to follow
• Area Cost Adjustment!
• Floor Ceilings

42
(No Transcript)
43
Summary

• A tough CSR settlement
• A challenging efficiency target
• A real change in reporting and monitoring?
• Local government will rise to challenge?