Effects on Londons Public Services and what to do about it'or

1
Effects on Londons Public Services and what to
do about it.or

• the Recession - my part in its downfall
• Bob Heaton
• Executive Director Resources
• Newham LBC

2
Its more than just a Credit Crunch

• Recession impact on a Local Authority
• As a place
• Residents
• Businesses
• The Future
• As an organisation
• Resources
• Processes and Performance
• Future Plans

3
The Place

• Promote wellbeing under LGA 2000
• Community Strategy
• Community Leadership Role
• Not just Council.public services
• Impact on place leads to impact on organisation
• Helping the place helps the organisation
• Resilience Factor risk index

4
The Impact on People

• Job losses/cant find work
• Reduced earnings (overtime etc)
• Business closures
• Third Sector feeling it
• Get into (more) debt e.g. C Tax
• Default on mortgage, loans etc
• Loss of home and other assets
• Risk taking insurance, loan sharks
• Tension/Stress and Relationships
• Increased Crime and ASB

5
Impact on Services

• Risk Assessment for
• Collecting income write off levels
• Supply Chain interruptions
• Local unemployment rates
• Benefit claimants
• Prevention and Safeguarding services
• People presenting as Homeless
• Stray dogs
• Increase in Crime/ASB
• Trading Standards loan sharks, sales etc
• Viability of regeneration activity

6
Tactics

• Preventative stop it the Canute Plan
• Ameliorative cushion it
• Developmental recover from it (quicker)
• Organisational manage it (internally)
• Community Leadership lead the response to it
• Need to show VfM
• Need to be legal supported by Community Strategy

7
Our Mayors Response

• Mayors Recession Package
• On your side in tougher times
• Supporting residents businesses
• Cant stop it but can mitigate impact.
• Zero Council Tax increase
• Money/debt advice - rescheduling debts
• Faster payments - lt10 days
• Procurement/supply chain opportunities
• Employment, training etc prospects
• Being counter cyclical bring forward capital
  investment

8
Risks when responding

• Challenge wellbeing v equalities?
• Recession - how long how deep?
• How resilient are you?
• Over-promising
• Know your limits
• Understand impact
• Sustainability
• Cost drain on resources
• But do we have a choice?

9
Recession can lead to.

• Us being paid less/more slowly
• Us paying more/more quickly
• Our services being accessed by those who
  previously have not done so
• Results?
• Negative cash flow
• Less resources
• Higher Cost
• Poorer Performance
• Interruptions to supply
• Good job we like a challenge eh?

10
Assess Risks

• Resources
• Service Delivery
• Process
• Performance
• Current Policies
• Future Plans
• Budget
• Capital Programme
• Regeneration

11
Financial

• Collecting money
• Council Tax/Rent/Rates
• Funding levels
• 2009/10 ok but 2010/11?? Beyond?
• The Banks have got our money?
• BSF et al closing deals and pulling teeth
• Treasury Management
• Depositing at 1
• Borrowing at 4
• Credit Risk Iceland zzzzzzzzzzz
• The Slumberland Plan
• But low inflation!!!

12
Staff and Property

• Staff
• Capacity to respond?
• Some extra/affordable capacity in market
• Welfare issues (family circumstances)
• Sickness levels
• Property
• Value v Price
• Slow down redevelopment schemes
• Empty Property Rates
• Get out of property - policy direction

13
Process and Performance

• C Tax/NNDR/Rent collection rates
• HB new claims and change of events
• LAA Targets e.g. employment rates
• Safeguarding
• Treasury Management
• Consumer Protection
• Even Dog Wardens!!!

14
Current Policies

• Corporate Income Policy
• Time to Pay
• Recovery and Write Offs
• Procurement
• Community Benefit Clauses
• Market management
• Employment
• Temporary opportunities
• Local apprenticeships/graduate trainees
• Construction jobs
• Need backing through Community Strategy

15
Future Plans

• How far ahead can we plan?
• Assume to 2012
• Loss of grant e.g. WNF
• Lower/slower collection rates
• Reduced investment income
• Higher demand for supportive services
• Recession Package
• Lower (immediate) capital receipts
• Later (but higher) capital receipts
• Delays to redevelopment requiring private sector
  investment
• 2012 Olympics will probably go ahead

16
Strategies and Tactics

• Help your population, as that helps you
• Find your levers e.g. 2012
• Watch your cash flow/working capital interest
  rates wont do the work for us?
• Monitor performance even more closely
• Review risks and responses
• Renegotiate targets (LAA etc)
• Regular communication esp businesses
• Be innovative but remember prudence

17
Recession Task Force

• A group of bright, young, talented people
  andme

18
Local Businesses

• Helping with arrears (rates, rents etc)
• Faster payment turnaround 10 days
• Loans to manage cash flow problems
• Cheaper premises our commercial portfolio
  vacancies
• More procurement through local businesses
  including community benefit clauses
• Help develop capacity so can respond to future
  tender invites.

19
Residents

• Zero Council Tax rise for 2 years
• Time to pay/clear arrears
• Greater access to money advice and debt
  counselling through LSCs
• Promote Credit Union avoid loan sharks
• Hardship/discretionary payment funds
• Mortgage arrears preventing eviction and future
  homelesness

20
Residents too

• Family stress - early intervention to avoid
  abuse, break up etc
• Workplace newly unemployed as well as longer
  term
• Extended free use of leisure and fitness
  opportunities
• Access to jobs in Council priority
  applications, apprenticeships, graduate trainees
  etc

21
And so finally

• Acknowledge the wider impact
• Helping the Community can help you
• Wellbeing and Community Strategy
• Prudent/realistic planning
• Regular risk reviews
• Look after your balances and working capital
• Look for counter cyclical measures
• Let the politicians lead!
• Dont Panic