Thursday, January 31, 2013

2013/14 Budget proposals in full

As indicated yesterday, we're publishing today - a week prior to actual Budget Day - the full and final draft of our revised budget proposals for 2013/14.

And as also mentioned yesterday, you can still access our initial draft proposals here - with the associated, detailed figures here - and a report on the feedback we received from the public here.

I'll now simply replicate the main text of our final draft motion for 2013/14 below, but it can also be accessed here, with the associated paperwork available here.

I think the motion below speaks for itself ... and it will now be debated at the Budget Day Council Meeting, 10am on Thursday 7th February, to be webcast here.



Motion by the Capital Coalition

REVENUE BUDGET 2013- 2014;
CAPITAL INVESTMENT PROGRAMME 2013-2018;
HOUSING REVENUE ACCOUNT AND CAPITAL PROGRAMME 2013-2014


City of Edinburgh Council
07 February 2013

1.         Introduction

1.1       In May 2012, the Capital Coalition agreed a new Contract with the Capital, a fresh start for Edinburgh, seeking to create a Council that listens to, and works with, local people in a co-operative, fair, accountable and responsible manner.  As part of this contract, the Coalition agreed six key commitments as detailed in section 2 of this motion.  These budget proposals, and the manner in which they have been developed, reinforce the Coalition’s intent to deliver on its commitments.
                                  
1.2         As part of the budget setting process the Capital Coalition has, for the first time, given residents and stakeholders the opportunity to comment on the Council's draft budget, months ahead of it being agreed.  A first draft budget was published in November 2012 and has been consulted upon with a wide range of individuals and groups including the business community, parents, community organisations, trade unions and the voluntary sector.

1.3       A full report on the consultation process was considered at a meeting of the Finance and Budget Policy Development and Review Sub-Committee on 23 January 2013.  As a direct result of the consultation, changes have been made to the proposals in a number of areas including:

·          employability  - helping to support young people into work
·          grants to the voluntary sector –  providing the services you want
·          revised parking charges – supporting the business community
·          looking at how we improve our public realm

1.4       This budget has been developed within the challenging context of:

·          savings of £95 million over the next five years of which £3.8 million falls due during financial year 2013/14
·          pressures over the next five years relating to Welfare Reform and an increasing elderly population
·          a reduction in the money local government gets from the Government
·          a background of economic austerity and growing demand for services
·          a commitment to freeze Council Tax

1.5       The Capital Coalition has responded to this challenge by adopting a priority based budget planning approach designed to assure delivery of the Coalition’s commitments through focussing on outcomes, detecting problems earlier and helping people more quickly.

1.6       The Coalition also acknowledges a welcome additional £3.5 million of capital funding received from the Scottish Government for the coming financial year.

2.         Coalition Commitments

Council accordingly agrees: 

Ensuring every child has the best start in life

2.1       investment of £558k in 2013/14 for the recruitment and retention of more Council foster carers to reduce use of residential care with a planned further investment over the following four years of £8.267m

2.2       investment of £725k in 2013/14 to support children with additional support needs, with a planned further investment over the following four years of £7.057m

2.3       completion of the Wave 3 school replacement programme with a funding commitment over the next five years of  £7 million towards the replacement of St John’s RC Primary School, £6.382 million for a replacement St Crispin’s Special School;

2.4       allocation of £618,000 in capital for 2017/18 to fund early stage design works for a new secondary school in Craigmillar

2.5       an additional allocation of £10.5 million for new capital projects in the Children and Families estate

Reducing poverty, inequality and deprivation

2.6       to encourage the roll-out of the Living Wage to all service providers working with/on behalf of the Council following its introduction for Council staff earlier this year

2.7       investment of £1.2 million of grant funding to third sector organisations, reversing the saving previously approved for the 2013/14 budget

2.8       a review of the grants to third parties process during 2013/14, conducted in partnership with third sector stakeholders, to ensure financial stability for organisations and value for money for the Council

Providing for Edinburgh’s economic growth and prosperity

2.9       continued support for youth employment by maintaining funding of £1 million for the Edinburgh Guarantee for a further year

2.10    the reinstatement of £800,000 in grant funding to employability services in the city for a further year

2.11    continuing investment in festivals and events to maintain Edinburgh’s leading position

2.12    development of a strategy, to be finalised before Christmas 2013, to help maximise the economic potential of the city centre following the conclusion of tram line construction in 2014

2.13    development of a Strategic Investment Fund of £7.5 million and instructs the Chief Executive to report to Council on 22 August 2013 on how this will be established

Strengthening and supporting our communities and keeping them safe

2.14    devolution of £120,000 to neighbourhood areas for targeted clean-ups

2.15    employment of an additional 12 Environmental Wardens to help keep our streets clean and neighbourhoods safer

Ensuring Edinburgh and its residents are well cared for

2.16    capital investment of £4 million for construction of a 60-bed care home in the north of the city

2.17    additional investment of £2 million to provide care for an increasing number of older people to support them in their own homes

2.18    additional investment of £2.9 million to meet the needs of people with physical and learning disabilities

2.19    investment of £500,000 to support carers

2.20    agrees an increase of 5.9% in Council housing rent in accordance with the rent strategy agreed with tenants in the Housing Revenue Account Business Plan

Maintaining and enhancing the quality of life in Edinburgh

2.21    investment of an additional £12 million in the city’s roads and pavements with a commitment to begin to remedy the particular issues in rural west Edinburgh

2.22    employment of additional inspectors to ensure utility companies repair roads to an appropriate standard

2.23    additional income of £325,000  from increased parking capacity

2.24    commitment of 6% of the transport revenue and capital budgets for creation and maintenance of cycle infrastructure

2.25    allocation of an additional £2 million in capital for pitches, pavilions, parks and new sports infrastructure

2.26    to strengthen the Council's drive toward greater reductions in carbon emissions sustainable working and energy efficiency

2.27    to commit up to £60,000 to begin an options assessment and stakeholder analysis on the future of Meadowbank Sports Centre

2.28    to commit £20,000 to pilot alternative opening hours for city centre museums and galleries during peak periods.

3.         Proposed Savings

3.1       Key corporate savings include:

·          strengthening the Council’s procurement practices to save £9 million in 2013/14
·          reviewing IT provision resulting in savings of £7.5 million by 2017/18
·          implementing internal improvement plans for Corporate and Transactional Services, Environmental Services and Integrated Facilities Management generating savings of £10 million in 2013/14.

4.         Future Budget Development

4.1      Council further agrees:      

·          to continue development of the priority based planning framework to ensure that expenditure achieves key outcomes of the Council efficiently and effectively
·          to strengthen internal financial scrutiny, accountability and governance
·          to continue the move toward increased involvement of individuals and organisations in the budget process including reaching out to people who would not normally engage with the Council in developing its budget
·          that continuous consultation will be an integral part of budget development from February 2013
·          to aim for publication of the draft 2014/15 Council Budget by the end of September 2013, thus ensuring all public consultation can be concluded by the end of 2013
·          establishment of a new Property Conservation service by April 2013, in light of public comments, which is fit for Scotland’s historic capital city
·          delivery of the tram project within the approved revised budget, ensuring the start of operational services by summer 2014
·          to examine options for using co-operative and trust models in the delivery of services.

5.         Risks and Challenges

5.1       Council notes that the Council faces significant risks and challenges as set out in the accompanying Revenue Budget 2013-14 - Risks and Reserves Report, particularly in the areas of:

·          welfare reform
·          major capital projects
·          property conservation
·          changes in population.

5.2    Council will also continue to assess the risks, challenges and opportunities arising from the integration of Health and Social Care.

6.         Recommendations

Council notes:

·          the reports by the Director of Corporate Governance setting out the revenue budget framework
·          the report by the Director of Corporate Governance setting out the potential equality and rights risks associated with the revenue budget framework
·           the reports by the Director of Corporate Governance setting out the overall position on capital resources for the period 2013 to 2018
·          the consultation undertaken in setting the 2013/14 budget and the intention to further engage in subsequent years, especially in light of the review of funding the third sector, meeting sustainability targets and meeting future challenges.

            Council approves:

·          the revenue budget set out in the reports, subject to the adjustments (or amendments) set out in Annex 1 to this motion
·          the 2013 to 2018 capital budget as set out in the report by the Director of Corporate Governance, subject to the adjustments (or amendments) set out in Annex 3 to this motion
·          A band D Council Tax of £1,169
·          the Council Tax and Rating resolution as set out in Annex 2 to this motion;
·          the schedule of charges for Council services as set out in Annex 4 to this motion
·          the prudential indicators as set out in Annex 5
·          the recommendations contained in the report by the Director of Services for Communities to increase rents by 5.9% and to approve the outline 5 year HRA capital programme for 2013 to 2018.

  

Moved by

Alasdair Rankin

Seconded by

Bill Cook



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