The Future of WinchesterPart 1: Business Budget

Briefing2016/17 – 2020/21

Achievements in 2014/15

• Rural focus

• City centre focus

• Business support

Rural focus

• Market towns

• LEADER• Planning

officer support

City centre focus

• Purple Flag

• Casson block

• Christmas festivities

Business support

• Grants

• Food hygiene rating

• Local Plan Part 2

• Training and events

• Signposting

2015/16 Budget - Expenditure

Efficient & Effective

35%

High Quality Environment

25%

Prosperous Economy

12%

Active Communities

28%

General Fund 2015/16 by Community Strategy

2015/16 Budget - Income

Revenue Consequences of the Capital Programme

Significant challenges

Guiding Principles

• Keep Council Tax increases to a minimum

• Protect front line services

• Maintain diversity of income/funding streams

• Support a programme of capital projects

• Reduce dependency on funding streams such as New Homes Bonus

Priorities

• Grow sources of income

• Maximise returns from the Council’s non-operational estate

• Maximise efficiency and value for money in all areas of activity through service transformation

• Continue effective management of paybill

Spending Review and Autumn Statement 2015 – Highlights

• The government will consult on reforms to the New Homes Bonus, including means of sharpening the incentive to reward communities for additional homes and reducing the length of payments from 6 years to 4 years. This will include a preferred option for savings of at least £800 million (2/3 of the current allocation).

We are forecasting significantly lower future receipts. There is still a risk that

this could be worse than expected.

Spending Review and Autumn Statement 2015 – Highlights

• DCLG will shortly consult on changes to the local government finance system to pave the way for the implementation of 100% business rate retention by the end of the Parliament. As part of these reforms, the main local government grant will be phased out and additional responsibilities devolved to local authorities.

Financial Risks

• Major projects – e.g. Silver Hill, Station Approach• Significantly reduced government funding – e.g.

Revenue Support Grant (RSG), New Homes Bonus (NHB).

• Transfer of risk from central to local government – e.g. Devolution, Business Rates Retention.

• Delivering Transformation and Organisational Development savings in order to meet savings targets.

Questions