News in Hersham and Elmbridge

Budget speech - 23 February 2011
"Looking after our Residents in difficult times"

Mr. Mayor,

The central overriding message from this Budget is that this Council, this Administration, is determined to do all we can to "help our residents in these difficult times".

And that must mean, above all, not imposing any additional financial burden upon our Council Tax payers while at the same time protecting and preserving the important services that our residents so value.

Mr. Mayor, I believe that this budget accomplishes both these objectives.

First, I am delighted to confirm that we have achieved the ambitious target we set ourselves last year and that the Elmbridge component of the Council for the 2011/12 fiscal year will be frozen.

In the five years since we formed the Administration, the Elmbridge component of the Council Tax has risen by just 4.9%, compared to an overall inflation rate of three times that. During this time and subject to our discussions tonight, Council Tax levels will have been frozen 4 out of 5 years. And all this in a period of huge economic uncertainty when we have experienced unprecedented falls in our income and investment levels, and a sharp reduction in central government grant

Our Council continues to provide tremendous value to our residents at just £3.83 per household per week again using the Band D property as the standard comparator. It remains a fact that Band D households still pay less than £ 200 per annum for our services.

For the third year running, in our proposals tonight we have absorbed a further £1.4m of financial pressures and we have achieved this by:

• Continuing to review the Council's expenditure
• Continuing to review staffing levels and introducing further measures, which has reduced staff numbers and associated costs by over 10%.
• Freezing salaries for staff for the second year except those on the very lowest pay, and freezing allowances for members
• Continuing to scrutinise and review our income sources
• Continuing to scrutinise and review every aspect of the Council's business by following on from the VFM reviews with the nationally acclaimed BEAM reviews which delve deeper into operational practises to streamline and optimise our business activities and improve customer experience
• Continuing to look at ways we can deliver services more economically
• Using our reserves wisely through the interest equalisation reserve to offset the continuing reduction in investment income due to low interest rates.

Moreover

• to help our residents in difficult times, we have once again not increased any Fees & Charges with the exception of Garden waste. And I note with particular satisfaction that charges for meals in our Community Centres and those for frozen and meals on wheels will not have increased for three out of five years. This is no mean feat with CPI now at 4%
• And we have even absorbed the additional cost of the VAT increase from January this year (around £ 40 k per year)
• Unlike many other authorities, we have protected the Voluntary Sector Grants - no reduction in 11/12, and amounting to almost £350,000, including
  - our two CABs
  - Voluntary Action Elmbridge
  - RentStart
  - CHEER
  - Small and Medium Grants to Voluntary Organisations
  - Elmbridge Sports Council
  - And in all our reviews and actions we are taking every precaution to ensure that changes in service delivery continue to protect the vulnerable members of our Communities.

The basis for delivering this budget is sound, unquestionably cautious because of the years of austerity that lie ahead, but unashamedly progressive:

• it is a balanced budget
• it is fully in accordance with our medium to long term financial strategy which this Council approved in July 2010
• We have retained healthy reserves for what we believe will continue to be a trying and uncertain economic future for at least the next 5 years, and quite possibly beyond that as well.

Mr. Mayor,

This Administration is committed to preserving and protecting our valued front-line services. The last year alone has seen significant enhancements to our Borough.

• I am also pleased to say that we are nearing completion of the major improvements to Walton High Street from the ECIF funds we put aside, and this work is scheduled to finish in March.
• Several other ECIF awards have been made to various business initiatives around the borough
• We are setting aside some funding for the "Community Connect" initiative
• We are committed to refurbishing the Walton Playhouse and set aside some Capital funds in the budget
• We continue to protect the Quality and character of the Borough by - taking over the grass cutting from SCC and increasing the number of cuts and, continuing to run the Street Smart service. Our intention is to take on hedge cutting from April.
• We have reduced our impact on the Environment by more than doubling our recycling targets since 2006 and continue to reduce energy usage in our properties.
• We are providing services to our community 24/7 and our web site remains heavily used and highly rated for customer service.
• In true partnership style the Thames Ditton centre now operates as an Inter generational centre and I am sure this will become a model for the future not just in our Borough, but right across the County as well.
• With our feet firmly on the ground this is a budget backed up by a sound, robust financial strategy and businesslike approach that continues to balances the needs of service users with those of the Council taxpayer and one that anticipates a continuing and increasing demand for the Council's services.

In addition, we have a fully financed although more modest capital programme:

• With a general capital programme provision of nearly £ 1 million
• Plus specific earmarked provisions of £550,000 (including the reinvestment of some external funding and Section 106 monies)

Capital Programme covers a wide range of activities, benefiting all of our residents, and include:

• Building upon our enhanced waste management programme, new recycling contract and street cleansing services - investing in recycling
• Continued investment in enhancing our children's' play areas, where it's needed
• Refurbishing our much loved Playhouse in Walton
• Grant to Lower Mole Countryside Project to buy a wood store which will help generate income
• Capital grants to our most vulnerable for home improvements

All this, despite a 20% reduction in Formula Grant received for 11/12
In 2011/12 we will receive a reduction in Formula Grant of £ 1.3 million, a reduction of 20%

• This equates to a total government grant of just £ 39 per resident
• A further 15 % reduction in grant in 2012/13 that will equate to £33 per resident
• I expect the financing of public finances to be seriously curtailed in the years ahead which underlines the wisdom of our prudent approach to budget formulation.

All Budget proposals have been reported as Part 1 and information has been available for members to provide input and scrutiny of this budget.

• Our Medium Term Financial strategy was approved by Full Council in Feb 2010
• An updated financial strategy for 2011/12 was submitted for Full Council approval in July 2010
• The bulk of our proposals went to Cabinet in September and onto Council followed by smaller financial proposals in October, November, December and finally February - the reasons for us doing this was twofold:
  - Firstly to allow officers to move ahead with approved proposals so that we have the best chance to realise savings from the start of the 2011/12 fiscal year
  - And secondly so that members had ample time to study and scrutinise the proposals - and where they felt necessary members had the opportunity to suggest amendments, tweaks or whatever to enable Council achieve best results from these proposals.

I cannot remember a time when this Council faced such challenging budget pressures and yet was able to formulate a response entirely in public and have the bulk of it debated and agreed by the December Council meeting.

Over the past three years the Council has made significant progress in the achievement of its strategic financial priorities. Achieved nearly £ 5m savings over a three-year period, real and sustainable year on year.

The Council's underlying financial position remains strong and has received recognition from the Audit Commission who in their Annual Audit Letter reported

"The council has continued to build on its successful approach to achieving value for money and delivering efficiencies".

And be in no doubt we shall be unrelenting in our determination to deliver our services more economically and effectively.

In this recession, it is our duty to hard-pressed Council-taxpayers that we explore every opportunity to increase efficiencies, reduce costs and promote innovations. Our residents expect nothing less.

Looking forward, in addition to the state of the national economy we have other specific factors to deal with:

• Obviously we are unaware of other possible ways central government may revise funding local authorities so, if any emerge, we shall have to review and deal with these changes as they occur
• On the positive side, there are early and encouraging signs that income from planning applications and car parking have bottomed out
• Our medium and long term financial strategy has factored in a modest and partial recovery for these income streams
• We continue to participate in the Surrey First initiative where all the Boroughs and Districts in Surrey together with SCC are collaborating to explore savings through shared delivery of both back office support functions and frontline services

Mr. Mayor, within the last week we have had notice of a provisional allocation of the New Homes Bonus for 2011/12 amounting to £452,619.

Final confirmation is expected in April, but the Minister has set a broad context for the use of these monies, including the need to accommodate growth and required infrastructure.

These funds are not included in the budget proposals and Members will need to give careful consideration to their use. I will therefore be moving an amendment to Recommendation (F) which will take the funds into the 2011/12 budget, but also enable a discussion on the future use of the New Homes Bonus at a later Council meeting.

Mr. Mayor, Before I conclude, I am sure the entire Council will wish to place on record our collective thanks and admiration to all our dedicated employees who serve our community in Elmbridge to such an exemplary standard right across the Board. Some members may be surprised that almost one-third of our staff earn less than £21,000. I hope that puts the rhetoric about 'town hall fat cats" into some perspective. As far as this Budget is concerned I would like to acknowledge the role that CMB and all staff played in the formulation of proposals over many months and the sheer professionalism of Sarah Selvanathan and her team deserves the highest commendation.

As does the "Quiet Man" of Elmbridge Borough Council whose brilliant strategic policy direction and expertise for the last five years has transformed our Borough for the better. I refer, of course, to Cllr Roger Whittaker. The Leader may be the front-man or woman in presenting the Budget, but all the really hard graft has been done by Cllr. Whittaker. He has chosen to retire in May. What can be said without fear of contradiction is that his successor will have an almost impossible task to follow. If I might use a nautical metaphor, Cllr Whittaker leaves the bridge with the Elmbridge ship of state in robust condition to navigate the choppy waters ahead. We salute him.

So, Mr. Mayor, In summary we have in this budget, even under the most trying of circumstances

• Promoted service improvements, and will continue to innovate
• Achieved further efficiencies, and will strive to find more
• Protected front line services
• Invested sustainably for the long term
• Set a balanced budget, backed up by healthy reserves
• Continued to act prudently and creatively for an increasingly uncertain economic future.
• Not levied increase in fees and charges
• Protected the Grants to our Voluntary Sector
• And frozen our Council Tax for the fourth year out of five

Some of our residents in Elmbridge have fallen on hard times. Jobs have been lost and pensioners have seen their pockets hit. Our overriding priority has to be to help our residents through difficult times. The message to them from this Council in this budget is that "we are on your side".

And I commend it to the Council