South Cambridgeshire Disctict Council's leaders are pledging innovation and 'smart' savings to help protect local people from swingeing service cuts following a 24% reduction in grant funding from government.

SCDC’s budget, published on 5 February, outlines how cuts to national grant funding mean further savings equivalent to £20 for every band D home are needed.

The Council has already delivered efficiency savings of around £5 million over the last four years – and leading councillors say the task of finding even more savings is harder than ever as all the 'low hanging fruit' has already been picked.

Successive cuts of 25%

Following three years of successive cuts of around 25% a year, the Council’s Government Grant now stands at just £2.65 million to provide services from planning and housing to benefits, waste and recycling.

To balance the books next year, another £300,000 of savings will have to be made by SCDC – with a further £790,000 in 2015/16.

Looks like a 2% Council Tax rise for 2014/15

SCDC plans to absorb almost 90% of the reduction in government funding by generating income and delivering further efficiencies – equivalent to £18 per average band D home – with a proposed £2.40 (2%) rise in Council Tax for band D properties, a rise of less than 5p per week.

To meet the bulk of the savings target, the Council is looking to change some of the blue bin collection rounds along with moving to a monthly green waste collection during the winter months.

It is felf these will have a low impact on residents, for during the winter, when most people are not cutting their grass, the amount of garden waste being collected halves – some other councils do not collect any garden waste during the winter months, but analysis of what is collected in South Cambridgeshire has shown a monthly collection will be a better fit.

£7m housing investment

To protect services from the full extent of the cuts in national funding, SCDC is also investing £7 million in a housing company – which will deliver an annual income to pump back into supporting council services.  An initial project with around 40 homes will begin to be rolled out in 2014/15.

And to generate more income, changes to trade waste services provided by the Council are also proposed.  This will help them to be more competitive with private sector firms operating in the district, as well as increase the amount of waste companies are recycling.

Alongside the housing company, the Council is also investing in new council houses as part of the biggest building programme since the 1950s.

The first new houses were completed at the end of last year and the millions of pounds being invested will see up to 1,000 new council and social rented homes built in the district over the next 30 years.

Generating income from investments will also ease the reliance on the grant funding from government which councillors fear will be totally withdrawn in the future.

Working with other councils

Councillors will also continue to look at working closer with partners to explore shared service opportunities, including a possible joint waste service with Cambridge City Council, which could operate from the Waterbeach depot.

The proposed budget would also see the Council continue with their medium term financial strategy – which would run reserves down to £2.5 million by 2018/19.

Cllr Simon Edwards, South Cambridgeshire District Council’s deputy leader and cabinet member for finance, said: “Setting a budget to meet the cuts in funding we are facing is tougher than ever, especially as we have already made £5 million of efficiency savings over the last four years.

“Although there are no easy answers, we are very committed to making sure we continue to maintain top class services for our residents. The changes proposed in waste and recycling will help to meet our savings target while minimising the impact on residents.

“By being innovative and generating income through projects such as our housing company, we are able to absorb three quarters of the reduction in national funding – but freezing Council Tax is not a viable option as we would need to make swingeing cuts to front line services.

"Any rise in Council Tax will still see us as one of the lowest charging district councils in the country – we are very proud of the value it demonstrates.”

South Cambridgeshire District Council’s Cabinet will consider the proposed budget at a meeting on 13 February before it is presented to all councillors at a full council meeting on 27 February.

South Cambridgeshire District Council’s proposed precept for 2014/15 on a band D property is £122.86.

County Council's budget proposals

As reported on 14 January, County Council cabinet members have agreed budget proposals which also show the public services they are responsible for the 'tough times ahead' to meet nearly £149 million in savings over the next five years.
 
The cabinet agreed draft budget proposals to meet the huge savings required for 2014/15 and the following years, with some services needing to be cut or reduced folowing £74 million savings in the last two years.
 
They decided the Council should stick to its already agreed plan and, like other authorities across the country, increases Council Tax by 1.99 per cent to help protect frontline services.
 
Cambridgeshire is one of the hardest hit authorities in the country and has to account for a reduction in the Government’s Settlement Funding Assessment of 20.9 per cent (£29.9m) over the next two financial years.

The County is also the lowest funded for education in the UK, despite having the fastest growing population. This means the Council is seeing more and more demands on its services – especially for those who are the most vulnerable – as more people need them or are living longer and require more expensive care services.

The increasing population in the County puts a £9 million strain on the Council’s budget every year, while inflation also adds extra pressure on decreasing funds.
 
Cambridgeshire County Council is expected to make savings over the next year (2014/2015) of around £38 million. This is following savings of £42 million last year (2012/2013), and a further £32 million this current financial year (2013/2014).

The main areas of SCDC spend for 2014/15 are

• Environmental services – including waste and recycling, environmental protection, public health and food safety: £6.1m.
• Planning and economic development – including conservation, building and development control: £2.4m.
• Finance and staffing – including administration of benefits for residents; collection of business rates and Council Tax: £2.2m.
• Planning policy and localism – including Northstowe and other growth areas; sports and planning policy: £1.7m.
• Corporate and customer services – including costs of council meetings, Member allowances and elections: £1.8m.
• Housing – including homelessness, housing strategy and letting and advisory services: £1.3m.

South Cambridgeshire District Council

       T 03450 450 500.
       F 01954 713 149.
       E scdc@scambs.gov.uk.
       W www.scambs.gov.uk.
       Election results  website.

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