South Cambridgeshire District Council approved its budget at a meeting of its Full Council today (27 February) – with leading councillors warning there are no easy answers to making savings following a third successive year of 25% cuts to grant funding from government.
Over the last four years, around £5m of efficiency savings have been made by SCDC and the latest reduction in funding means further savings, equivalent to over £20 for every Band D home in the District, will be needed.
And while absorbing almost 90% of the reduction in funding by finding savings of £300,000 in 2014/15 (and another £790,000 in 2015/16), the proposed 1.99% increase in Council Tax was also agreed – meaning a £2.40 a year increase for Band D properties. (The County Council is also increasing its Council Tax by 1.99%, although so far have not stated what this means for Band D properties.)
£7m investment to generate income
To minimise the impact of cuts to grant funding, the Council is investing an initial £7m in a housing company to generate an income to spend on Council services for residents.
However, to deliver the necessary savings in 2014/15, the Council has already agreed to 'redesign' some of the blue bin collection rounds and move to monthly green waste collections during the winter months, believing this will have 'minimal impact' on residents as data shows the amount of garden waste being collected halves.
Over the last four years, the Council has modernised its IT systems for staff (saving thousands of pounds), reduced senior management posts and brought the Council’s contact service back in-house, saving £250,000 per year. It is also expecting to make further significant savings by sharing waste collection with Cambridge City.
Government grant funding expected to be almost totally withdrawn
The Council’s five year business plan shows government grant funding is expected to be almost totally withdrawn before 2020, meaning a more commercial approach to generate income from investments will be vital to keeping services going.
Cllr Simon Edwards, South Cambridgeshire District Council’s deputy leader and cabinet member for finance, said: “As we have already delivered around £5m of efficiencies there are no easy answers for us to balance the budget.
"The continued major cuts to our government grant means we are having to make really difficult decisions now – but more importantly, we are looking at least five years into the future as plans need to be in place for when our government grant is totally withdrawn.
"By making smart investments now, which will deliver year on year returns, we will make sure we are in as good a position as possible to minimise the impact of the cuts.
“There is no doubt this is a challenging period for all local authorities," he said, "but we are absolutely committed to doing all we can to provide the services people most need as well as maintaining the quality of life we all enjoy in South Cambridgeshire.”
12 objectives to maintain quality of life
Twelve objectives to keep South Cambridgeshire as one of the best places to live, work and study in the country were also agreed at today's Council meeting.
The Council’s corporate plan will guide how resources are focussed over the next five years – with a public consultation where communities have their say.
The plan includes making sure newly built communities are successful and helping parish councils to keep existing villages vibrant.
New council houses a top priority
Building new council houses continues to be a top priority – as is helping vulnerable people by increasing the amount of high quality temporary accommodation.
Further work is also pledged to cut red tape for businesses, along with a package of support to help the rural economy by encouraging companies to grow and create new jobs.
Cllr David Whiteman-Downes, South Cambridgeshire District Council’s cabinet member for corporate and customer services, said: "This plan focusses our minds and ensures we are tackling the most important issues for local people.
"National cuts to funding mean we have fewer and fewer resources at our disposal, but we are an ambitious council and will work hard to build on what we have achieved for communities over the last few years.
“Being more commercially minded and innovative to drive down costs is a must if we are to realise our goals and help communities fulfil their aspirations.”
The 12 objectives are
- Develop the property company pilot scheme into a full business plan to deliver affordable housing and generate income.
- Improve efficiency and value for money within a viable financial strategy.
- Make the district an even more attractive place to do business.
- Work with tenants, parish councils and community groups to sustain successful, vibrant villages.
- Build new council houses to provide affordable homes to meet the needs of local communities.
- Ensure best use of Council assets and benefit from opportunities to achieve efficiencies from partnership working.
- Move to a commercial approach to service delivery.
- Work with RECAP waste partners to reduce costs, carbon impact and waste sent to landfill.
- Work with GPs and partners to link health services and to improve the health of our communities.
- Ensure the impacts of welfare reform are managed smoothly and effectively.
- Establish successful and sustainable New Communities with housing and employment at Northstowe and the major growth sites, served by an improved A14.
- Increase the range and supply of temporary accommodation to help minimise the use of bed / breakfast accommodation for homeless households.
There is more detailed information on the SCDC website:
South Cambridgeshire District Council
T 03450 450 500.
F 01954 713 149.
E scdc@scambs.gov.uk.
W www.scambs.gov.uk.
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