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APPENDIX 1

PORTFOLIO: ADULT CARE SERVICES

PROPOSED RESOURCE BUDGET 2006/07 – 2009/10

Chief Officer: Sarah Pickup, Director of Adult Care Services (01992 556300)

Contact for queries: Ralph Paddock, Head of Finance (01992 556354)

APPENDIX 1 - CONTENTS

A CommentaryB Revenue Budget 2006/07 - 2009/10 and Movement from Current Year’s

BudgetC Pressures for ChangeD Savings

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APPENDIX 1A

COMMENTARY

1.1 This Appendix outlines details of the proposals for a revenue budget of £215,582 million (excluding capital charges and the FRS17 pension adjustment) for Adult Care Services.

1.2 The cashable efficiency savings included in the proposals are summarised below with fuller details provided in the following appendices:

Cashable Efficiency Savings £’000FYE of Previous Efficiencies 23406/07 Gershon Savings 4,526

06/07 Other Savings 237

Total 4,997

1.3 In addition to the cashable efficiencies, a further £1.9 million of non-cashable efficiency savings have been identified and these are detailed in appendix 1D.

1.4 There continues to be severe pressures on the Adult Care Services budget.

1.5 The key continuing pressures on the budget are as follows:

There is continuing demographic pressure on all budget areas. The largest client group is those aged over 85 and the number of such people in Hertfordshire is expected to increase by 4.26 per cent over the year. The number of adults with learning disabilities is expected to increase by 60 in 2006/07 and most of these will receive a service from the County Council. Similarly, there are year on year increases in the numbers of people with mental health problems and with physical disabilities.

The service continues to face increasing targets that have to be met. The elderly and physical disability staffing review is in part a response to this and the need to meet tougher assessment targets, ensuring that all assessments are completed within 28 days.

Person centred care and the increased registration standards that Adult Care Services and the private and voluntary sector suppliers have to meet is also a major challenge. This continues to put pressure on prices and, in terms of the accommodation the County Council owns, also results in cost pressures. For example, to meet Supported Living standards, there is a possibility that the number of beds will reduce and this will mean ultimately that higher prices will have to be

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paid in the private and voluntary sector, or more accommodation will have to be provided using County Council capital.

Adult Care Services continue to operate in a challenging environment in which to recruit and retain staff, particularly in terms of care workers. This leads to particularly high vacancy levels in supporting people in accommodation and many recruitment initiatives have to take place to avoid an increasing dependency on agency staff.

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APPENDIX 1B

REVENUE BUDGET 2006/07 – 2009/10AND MOVEMENT FROM CURRENT YEAR’S BUDGET

ADULT CARE SERVICES

2006/07 2007/08 2008/09 2009/10£'000 £'000 £'000 £'000

2005/06 Original Budget 197,659 197,659 197,659 197,659Technical Adjustments 2005/06 5,710 6,067 6,397 6,7022005/06 Adjusted Budget 203,369 203,726 204,056 204,361Technical Adjustments 2006/07 1,322 1,322 1,322 1,322Inflation 9,134 9,134 9,134 9,134Pressures for Change:Previous Policy Decisions:2005/06 & Prior Years

a) Introduction of fairer charging (2,824) (3,184) (3,184) (3,184)b) Maximising charging income (327) (350) (350) (350)

FYE of previous efficiencies: a) Homecare externalisation (104) (166) (217) (217)b) Business Process Review / SHARP

savings (80) (80) (80) (80)c) Enabling Homecare (50) (100) (150) (150)

Demography:a) Elderly 2,593 5,186 7,779 10,372b) Learning Disability – previous years 2,400 2,400 2,400 2,400c) Learning Disability 2,820 5,357 7,860 10,048d) Physical Disability 812 1,624 2,436 3,248e) Mental Health 788 1,576 2,364 3,152

Legislative Changes:a) Introduction of national minimum

standards40 80 80 80

Other Pressures:a) Business Rates (2) 3 6 6b) LGPS employers’ contributions 283 573 796 1,292c) Regrading of in house unit managers’

posts 31 31 31 31d) Revenue Effects of Capital 93 466 686 786e) Revenue Effects of Telecomms 21 47 91 134f) Capital Payback 198 313 273 220g) Reduction in Supporting People grant 1,000 1,500 1,500 1,500

Funded from Grant (1,172) (499) 0 0

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2006/07 2007/08 2008/09 2009/10£'000 £'000 £'000 £'000

Cashable Efficiency Savings:a) Individual banded budgets for

Learning Disability placements (180) (360) (540) (720)b) Expert purchasing of care placements

for Learning Disability (250) (500) (1,500) (2,000)c) Community Learning Disability Teams (150) (150) (150) (150)d) In-house: reduction in holiday

entitlements (100) (100) (100) (100)e) Transport (200) (200) (200) (200)f) Review day services for older people (500) (500) (500) (500)g) Cost benefits of long stay booking

system (100) (100) (100) (100)h) Reduction in top up targets for older

people (200) (200) (200) (200)i) Greater use of sheltered housing (100) (200) (300) (400)j) Rollout enabling homecare (500) (500) (500) (500)k) Central units staff (123) (123) (123) (123)l) Finance (140) (240) (240) (240)m) Manpower contract (207) (207) (207) (207)n) Supporting People Budget (1,000) (1,500) (1,500) (1,500)o) Meals on Wheels (20) (160) (160) (160)p) Delayed discharges agreement (200) (200) (200) (200)q) Reduce EPD agency staff (20) (20) (20) (20)r) Reduce Blue Badge admin (100) (100) (100) (100)s) Better procurement & individual

budgets for Physical Disability (50) (100) (150) (200)t) Herts Partnership Trust (HPT)– better

purchasing (300) (300) (300) (300)u) Employer’s liability insurance (56) (66) (66) (66)v) Disability Information Project (30) (30) (30) (30)w) Learning & Development grant

additional work (200) (200) (200) (200)x) Mainstreaming Supporting People

admin (37) (37) (37) (37)

STANDSTILL BUDGET 215,582 222,866 229,410 235,852

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APPENDIX 1C

2006/07 PRESSURES FOR CHANGE £’000

Previous Policy Decisions2005/06 & Prior Yearsa) Introduction of Fairer ChargingIntroduce fairer charging – charge against benefits.

- 2,824 2006/07- 3,184 2007/08

onwards

b) Maximising Charging IncomeMaximising charging income by implementing policy changes including:- a charge for meals that reflects more closely the

cost of providing the meal- introduce charging for transport services

- 327 2006/07- 350 2007/08

onwards

Full Year Effect of Previous Efficienciesa) Home care externalisationThe in house home care service was transferred to Leonard Cheshire on 1 February 2000. The estimated savings are based on the same assumptions as last year in respect of the rate at which transferred staff are leaving Leonard Cheshire to be replaced by new staff appointed by Leonard Cheshire.

- 104 2006/07- 166 2007/08- 217 2008/09

onwards

b) Business process reviewIt is anticipated that significant savings will be generated by the review of the department’s business processes. This is the full year effect of the savings identified last year with the main impact being on financial services.

- 80 2006/07onwards

c) Enabling HomecareThis is part of the new model for homecare and the pilot indicated that there would be an estimated annual reduction in costs, net of the enablement service, of £956 per client. The £956 could be increased by improved commissioning but reduced by loss of charging income (approximately 10%). An estimated saving of £1,000 per client has therefore been assumed.

- 50 2006/07- 100 2007/08- 150 2008/09

onwards

Demographic ChangesUnavoidable increased service demands result in the following pressures for each of the four main client groups.

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2006/07 PRESSURES FOR CHANGE £’000a) ElderlyAround 50% on the ACS budget for older people is spent on the 85 and over age group, 40% on the 75 to 84 age group and 10% on the 65 to 74 age group. The projected increases in the numbers in these age groups have been used together with the estimated spends on these age groups to produce the year on year budget increases required to meet demographic pressures.

+ 2,593 2006/07+ 5,186 2007/08+ 7,779 2008/09

+ 10,372 2009/10

b) Learning Disabilities – previous yearsDemography for 2004/05 and 2005/06 was understated. It was based on 40 net new clients and 52 unavoidable placements were made in 2004/05 and 62 are expected to be placed in 2005/06. Needs have also increased. Care and Health Consultants have reviewed placements and confirmed that they were appropriate and unavoidable as eligibility criteria they "could not be tightened as they were set at the most stringent level acceptable to central government" Consequently the base budget is £2.4million short and extra demography is required.

+2,400 2006/07onwards

c) Learning DisabilityThe demographic pressure estimates for the Learning Disability client group are those calculated by Care and Health Management Consultants in their draft report Modelling of Demand and Future Costs.

+2,820 2006/07+5,357 2007/08+7,860 2008/09

+10,048 2009/10

d) Physical DisabilityThe projection for demographic pressures is based on the increase in costs and numbers of clients (especially for residential care) over the last three years.

+ 812 2006/07+ 1,624 2007/08+ 2,436 2008/09+ 3,248 2009/10

e) Mental HealthThe projection for demographic pressures is based on the increase in costs and numbers of clients (especially for residential care) over the last three years. HPT have assisted in producing these estimates.

+ 788 2006/07+ 1,576 2007/08+ 2,364 2008/09+ 3,152 2009/10

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Legislative Changesa) Introduction of national minimum standards Introduction of national minimum standards in care homes will result in an increase in the charges made by some providers.This change is being phased in by 2007. Providers will increase their weekly rates to reflect, for example, room size and en-suite specifications in independent sector residential homes.

+ 40 2006/07+ 80 2007/08

onwards

Other Pressuresa) Business RatesThis relates to the estimated additional costs arising from the 2005 revaluation of property for rating purposes.

- 2 2006/07+ 3 2007/08+ 6 2008/09+ 6 2009/10

b) LGPS employers’ contribution + 283 2006/07Estimated cost of the increase in employers‘ + 573 2007/08contributions to the local government pension scheme. + 796 2008/09

+ 1,292 2009/10

c) Regrading of in house unit managers’ postsA review of the grading of certain in house unit managers’ posts has resulted in additional staffing costs being incurred in 2004/05 and subsequent years.

+ 31 2006/07onwards

d) Revenue Effects of CapitalThese are the revenue consequences of undertaking capital works within the agreed capital programme.

+ 93 2006/07+ 466 2007/08+ 686 2008/09+ 786 2009/10

e) Revenue Effects of TelecomsThe department’s share of the revenue consequences of undertaking corporate telecommunications capital works within the agreed capital programme and the Telecommunications Infrastructure Fund.

+ 21 2006/07+ 47 2007/08+ 91 2008/09

+ 134 2009/10

f) Capital PaybackPayback associated with the ACS general capital programme.

+ 198 2006/07+ 313 2007/08+ 273 2008/09+ 220 2009/10

g) Reduction in Supporting People Grant + 1,000 2006/07Funding to replace the anticipated reduction in + 1,500 2007/08

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Hertfordshire’s allocation of Supporting People Grant. onwardsAPPENDIX 1D

SAVINGS £’000

Cashable Efficiency Savings - Gershona) Individual Banded Budgets for Learning Disability PlacementsThis is a pilot scheme that will require a project manager and will be applied to “client turnover”.

- 180 2006/07- 360 2007/08- 540 2008/09- 720 2009/10

b) Expert Purchasing of Care Placements for Learning Disability Expert purchasing of care placements for Learning Disabilities will produce savings. These savings will be generated by reviewing unit costs.

- 250 2006/07- 500 2007/08

- 1,500 2008/09- 2,000 2009/10

c) Community Learning Disability TeamsEstimated savings of 5% will be generated by streamlining Community Learning Disability Teams.

- 150 2006/07onwards

d) In-house: reduction in holiday entitlementsIn-House services – possible reduction in staff entitlement to holidays when they are on sick leave. Subject to necessary changes in Corporate Policy.

- 100 2006/07onwards

e) TransportSavings on transport will be achieved through a variety of measures including: - changing the eligibility barrier- reimbursement of staff and carers for mileage- reimbursement for taxisThe new policy of New Direction of Travel will be implemented.

- 200 2006/07onwards

f) Review Day Services for Older PeopleSavings will be achieved through a review and reconfiguration of day services for older people. This will be based on looking geographically at needs and existing provision and rationalising where there is under-use of provision.

- 500 2006/07onwards

g) Cost Benefits of long stay booking systemCost benefits of introducing a long stay booking system for residential and nursing care home placements will be achieved through a reduction in the number of voids.

- 100 2006/07onwards

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SAVINGS £’000

h) Reduction in top-up targets for older peopleTargets will be set to reduce the level and number of top-up payments agreed for older people entering residential and nursing care homes.

- 200 2006/07onwards

i) Greater Use of Sheltered HousingAn increase in the supply and use of extra care sheltered housing rather than residential care will generate saving estimated to be £5,000 per person per annum.

-100 2006/07- 200 2007/08- 300 2008/09- 400 2009/10

j) Rollout Enabling HomecareAdditional savings will be generated by rolling out the enabling homecare model which was piloted in 2005/06.

- 500 2006/07onwards

k) Central Units StaffSavings on central units staff costs of 5% within the following sections: - Policy and Performance Unit - Management Information Unit - Human Resources (shared services)

- 123 2006/07onwards

l) FinanceSavings generated within the finance unit from the implementation of the business process review. This is in addition to the £160,000 generated in 2005/06 (including the full year effect in 2006/07 referred to above). The total saving is therefore £300k in 2006/07 and £400k every year there after. Subject to office move in April 2006.

- 140 2006/07- 240 2007/08

onwards

m) Manpower Contract HR savings from the implementation of the new Manpower contract including advertising initiatives.

- 207 2006/07onwards

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SAVINGS £’000

n) Supporting People BudgetSavings on the Supporting People budget from the ODPM. The budget will be reducing by around 5% in real terms. Reduction in spend will be matched by an equivalent loss of grant.

- 1,000 2006/07- 1,500 2007/08

onwards

o) Meals on WheelsMeals on Wheels – social enterprise will provide the meals that are currently paid for by ACS. It needs to be confirmed if the saving is gross or net. The expected start date is early 2007.

- 20 2006/07- 160 2007/08

onwards

p) Delayed Discharges AgreementReview of the various Delayed Discharges Agreements by using some funding for the mainstream budget. A review of the existing funding arrangements has been undertaken.

- 200 2006/07onwards

q) Reduce EPD agency staffReduce the use of agency staff within the elderly and physical disability client groups.

- 20 2006/07onwards

r) Reduce Blue Badge AdminA reduction in the costs of administering the Blue Badge scheme should generate savings amounting to around £100,000.

- 100 2006/07onwards

s) Better procurement & individual budgets for Physical DisabilitySavings will be generated by the better procurement and setting of individual budgets for the physical disability client group. A new commissioning strategy will be developed and implemented and a bid will be submitted to pilot a model of individual budgets.

- 50 2006/07- 100 2007/08- 150 2008/09- 200 2009/10

t) Herts Partnership Trust (HPT) savings – better purchasingHPT savings will be generated from better purchasing and from integrated teams.

- 300 2006/07onwards

u) Employer’s liability insuranceThe actuaries have reviewed the number and value of claims likely to be successful against the Council. Their estimate of the value of employer liability claims is lower than it was the year before, due to improved risk management in the authority. This will result in lower charges to services for insurance.

- 56 2006/07- 66 2007/08

onwards

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SAVINGS £’000

v) Disability Information Project Disability Information Project (PD Best Value budget) – this project will be completed by May 2006 and hence savings will be achieved in 2006/07 and future years.

- 30 2006/07onwards

Cashable Efficiency Savings - Otherw) Learning & Development Grant Additional WorkAdditional grant for Learning & Development – this will be achieved by budgeting more current work against the specific grant.

- 200 2006/07onwards

x) Mainstreaming Supporting People AdminSavings will be achieved by mainstreaming some of the costs currently charged against the Supporting People administration grant.

- 37 2006/07onwards

Non-cashable Efficiency Savings - GershonShort Stay Booking SystemIntroduce a short stay booking system. This will lead to more efficient working practices.

- 100 2006/07onwards

Reasonable Adjustments - SicknessA level of sickness, reasonable adjustments and suspensions are covered by in-house units without additional staffing thus generating a non-cashable saving.

- 200 2006/07onwards

In-home Client Support Outside SLA Extra support is provided to some in-house clients beyond that required by the service level agreement. As no extra staffing is employed this generates a non-cashable saving.

- 300 2006/07onwards

Absorption of Unbudgeted Staff in ContractsContracts Unit have taken on extra responsibilities which they will deliver without extra budget.

- 36 2006/07onwards

Increasing Number of Clients Served by Same Number of StaffAssessment and Care management Client numbers are growing at a rate of around 3% per year but they are served by the same number of social worker staff i.e. there is no corresponding increase in staff numbers so productivity is increasing.

- 750 2006/07onwards

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SAVINGS £’000

Non-cashable Efficiency Savings - OtherAvoid the costs of paying extra for sleeping-in duties (i.e. opt out of the working time directive). Subject to necessary changes in Corporate Policy.

- 550 2006/07onwards

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APPENDIX 2 (1)

PORTFOLIO: CHILDREN, SCHOOLS & FAMILIES – EDUCATION (SCHOOLS)


Chief Officer: John Harris, Director of Children, Schools & Families(01992 555700)

Contact for queries: Claire Cook, Head of Central Finance(01992 555737)

APPENDIX 2 (1) - CONTENTS

A CommentaryB Revenue Budget 2006/07 – 2009/10 and Movement from Current Year’s


Please note this section of the CSF service budget appendices is included for information only.

When schools funding transfers to the new Dedicated Schools Grant from 1 April 2006, unless we opt to ‘top-up’ schools revenue budgets from our own resources, they will no longer form part of the authority’s budget for council tax purposes.

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APPENDIX 2 (1) A

COMMENTARY

1.1 This Appendix outlines details of the proposals for a revenue budget of £566.033 million (excluding capital charges and the FR17 Pension adjustment) for Children, Schools and Families (Schools), which is delivered by way of a targeted ring-fenced grant known as the Dedicated Schools Grant (DSG)


Cashable Efficiency Savings £’000FYE of Previous Efficiencies 175


Total 752

Minimum Funding Guarantee

1.3 The DSG settlement covers two financial years (2006/07 and 2007/08) and provides for a Minimum Funding Guarantee (MFG) per pupil for schools. There is a continuing restriction on growth on the central part of the schools budget known as the Central Expenditure Limit (CEL) which will now be subject to agreement with the Schools Forum.

1.5 Schools Forum will need to be consulted about decisions on the use of available ‘headroom’ (i.e. the difference between the funds required to deliver the MFG and the increase in DSG) in February. These will relate to:

The proportion of funds in the headroom delegated to schools The proportion of funds in the headroom to be targeted at pressures in

the centrally held part of the DSG.

Increases in the CEL must not exceed the level of increase in the amounts delegated to schools, except in exceptional circumstances.

1.5 The interaction of the Minimum Funding Guarantee (MFG) with the Hertfordshire formula funding and pupil number changes can produce perverse results and lock in protection funding that was intended to reduce over time. Exemptions to the MFG can now be agreed with the Schools Forum except where they impact on more than 20% of schools, where a Section 28 application must be made to the Secretary of State. The move in 2006/07 to a single pupil count and regulation about the way this needs to be dealt with in the MFG produces an anomalous result. This locks in £3.5m into the MFG calculation, which would otherwise be available to support ‘headroom’. Whilst some schools receive too much protection, others do not receive protection where it would seem to be appropriate. We have sought the views of the Schools Forum and it has agreed that we should approach the DfES to seek exemption for these items.

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1.6 We have calculated the cost of operation of the MFG over and above the provision for inflation, pressures etc. This is estimated to total £6.5m in 2006/07. The cost of the MFG (without taking account of the potential mitigating effect from the section 28 application to the DfES described above) and the pressures set out in the schedules would result in a Schools Budget of £563.3m and provide headroom of £2.647m. If the DfES grant the exemption this would increase to £6.147m.

1.7 As more funding is applied to the formula budget shares, the protection generated by the MFG reduces and the overall available headroom increases. We estimate that if the exemption from the DfES mentioned in paragraph 1.5 was granted and the total headroom of £6.147m was available this would displace a further amount of protection. If the total increase in MFG protection above the 2005/06 levels was displaced, this could amount to a further £1m.

Potential pressures on ‘headroom’

1.8 The DfES moved to a needs related grant for Ethnic Minority Achievement from 2005/06. This resulted in a reduction in the grant level over two years. In 2005/06 the Schools Forum indicated their support for a contribution of £239k from the Schools Block to mitigate the impact of the grant loss for that financial year. There is potential for a further contribution of £141k in 2006/07, to mitigate the impact of further grant loss in 2006/07, which the Schools Forum indicated that they would consider in the context of available headroom. This would result in a total contribution from the schools budget of £380k above the total grant of £1.427m.

1.9 The analysis of the relative needs of the school sectors, measured in terms of the funding quantum available from central government, and relative cost pressures in the primary sector supports the case for targeting an element of headroom to primary schools. Particular issues have been highlighted with the lack of flexibility that JMI schools without nurseries, Junior schools and specifically 1.5 FE JMI’s have to respond to budget pressures. This could be addressed through an adjustment to the lump sum funding allocation. It is estimated that this would result in a cost of approximately £2m across the primary sector resulting in additional funds to schools of between 100 and 400 pupils (excluding nursery pupils). Targeted use of the funding will ensure that schools with between 200 and 300 pupils will get the largest share of the additional funds.

1.10 The balance of any headroom would be available for more general distribution across all school sectors.

1.11 The government has asked that we consider the funding for deprivation as part of the headroom considerations. This is in the context of increasing pressure on schools to support the more challenging pupils. We will be required to provide information to the DfES on the level of funding targeted towards deprivation by the end of May 2006. Although it will not be mandatory to consider this until the 2008 budget cycle, it would be

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possible to consider an increase to the deprivation elements as part of the use of headroom.

Central spend on schools budget

1.12 Increases in the central spend part of the schools budget are limited and must not exceed the level of increase in the amounts delegated to schools, except in exceptional circumstances. The Authority would be able to make an application to the Secretary of State if it was likely to exceed that limit. The efficiencies set out in paragraph 1.2 mean that the Authority will not exceed the Central Expenditure Limit for 2006/07, and will be able to respond to a number of key pressures.

1.13 The total level of pressure on central spend is projected to be £3.742m in 2006/07, although those pressures in relation to the extension of nursery provision and the increase in schools contingency do not form part of the CEL calculation. A key priority is the support for children out of school at Key Stage 4 to ensure that the needs of this group of children are met in accordance with the legislative requirements. Other pressures include increased demand for support for children with specialist needs include speech and language.

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APPENDIX 2(1)B


CHILDREN, SCHOOLS & FAMILIES (SCHOOLS)

2006/07£’000

2007/08£’000

2008/09£’000

2009/10£’000

2005/06 Original Budget 530,692 530,692 530,692 530,692

Technical Adjustments 2005/06 0 0 0 02005/06 Adjusted Budget 530,692 530,692 530,692 530,692Technical Adjustments 2006/07 2,551 2,551 2,551 2,551

Inflation 16,171 16,171 16,171 16,171

Pressures for Change:

Previous Policy Decisions

2005/06 & Prior YearsHertsmere Jewish High School 165 505 940 1,413

FYE of Previous EfficienciesSchool amalgamations (175) (360) (650) (816)

Demographic Changea) Autism 154 184 184 184b) Speech and language bases 74 119 119 119c) Changes in pupil numbers (1,600) (3,000) (4,900) (4,900)d) Specialist advisory service 100 100 100 100

Legislative Changea) Provision for children out of

school 709 1,216 1,216 1,216b) DfES Code of Practice on Free

Nursery Education 1,527 2,138 2,688 3,850c) Holiday pay 378 756 756 756

Other Pressuresa) Business rates (1) 18 18 18b) LGPS employer’s contributions 700 1,418 1,970 2,630c) Management information contract testing (60) (60) (60) (60)d) Capital Payback 617 659 662 662e) Workforce reform 1,518 1,518 1,518 1,518f) Exam invigilation 211 211 211 211g) Units & bases 200 200 200 200h) Stevenage Federation 100 100 42 0i) Early years SENCOs 65 65 65 65j) Personalised & practical learning 4,717 12,560 12,560 12,560k) Increase in schools contingency 650 500 500 500l) Increase in cost of MFG 4,500 4,500 4,500 4,500

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2006/07£’000

2007/08£’000

2008/09£’000

2009/10£’000

Cashable Efficiency Savingsa) Centrally held human resources provisions (35) (35) (35) (35)b) AWPU recovery (100) (100) (100) (100)c) Additional Welfare & Tuition (200) (200) (200) (200)d) Repairs & maintenance budgets (82) (82) (82) (82)e) Home & hospital education (160) (160) (160) (160)

Headroom 2,647 2,647 2,647 2,647STANDSTILL BUDGET 566,033 574,831 574,123 576,211

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APPENDIX 2(1)C


Previous Policy Decisions2005/06 & Prior Yearsa) Hertsmere Jewish High SchoolThe element of funding for the new school expected to be covered by additional DSG.

+165 2006/07+505 2007/08+940 2008/09

+1,413 2009/10

FYE of Previous Efficienciesb) School AmalgamationsSavings in lump sum and premises related funding in school budget shares as a result of school re-organisations.

-175 2006/07-360 2007/08-650 2008/09-816 2009/10

Demographic Changesa) AutismIn order to meet the growing number of pupils recognised as having autism disorders, there is a requirement to develop additional provision in 3 special schools.

+154 2006/07+184 2007/08

onwards

b) Speech and Language BasesTo provide an additional 16 places in the West Area (Borehamwood and Hemel Hempstead) of the county at two speech and language bases. This is to deal with the increased numbers requiring speech and language therapy.

+74 2006/07+119 2007/08

onwards

c) Changes in Pupil NumbersImpact of the changes in AWPU and other pupil led funding in school budget shares. The 3% budget share protection may impact on the level of savings.

-1,600 2006/07-3,000 2007/08-4,900 2008/09

onwards

d) Specialist Advisory ServiceNational strategies in relation to early intervention have impacted on the requirement for specialist support programmes to support complex needs in mainstream settings. There has been an increasing demand to support the complex needs of children who are surviving with disabilities. This has impacted on the requirement for specialist intervention.

+100 2006/07onwards

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Legislative a) Provision for Children out of schoolThere is a requirement for the authority to provide statutory provision for 25 hours for children ‘out of school’ which is not currently being met. The development of Key Stage 4 Learning Centres would provide additional capacity and high quality alternative curriculum for students who have been excluded from schools and for whom the existing provision at KS4 is inappropriate.

+709 2006/07+1,216 2007/08+1,216 2008/09

onwards

b) DfES Code of Practice on Free Nursery EducationThe draft Code of Practice on nursery provision for 3 and 4 year olds in private provision proposes an extension of entitlement from 33 to 38 weeks from April 2006 together with a phased extension of entitlements from 12.5 hours to 15 hours a week from April 2007.

+1,527 2006/07+2,138 2007/08+2,688 2008/09+3,850 2009/10

c) Holiday PayProvision for costs resulting from new legislation to prevent bank holidays from being included in the four week statutory annual leave entitlement under the working time regulations. This will affect midday supervisors and some term-time only staff. Best information available at present indicates that this is likely to be implemented from 01 October 2006.

+378 2006/07+756 2007/08

onwards

Other Pressuresa) Business RatesThis relates to the estimated additional costs arising form the 2005 revaluation of property for rating purposes.

-1 2006/07+18 2007/08+18 2008/09+19 2009/10

b) Local Government Pension SchemeEstimated impact of the increase in the employers’ contributions to the Local Government Pension Scheme.

+700 2006/07+1,418 2007/08+1,970 2008/09+2,630 2009/10

c) Management Information ContractThis was a one-year pressure relating to the requirement to test that our MIS systems will support schools with changing requirements. There is no longer a requirement to make this provision with the base budget.

-60 2006/07onwards

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2006/07 PRESSURES FOR CHANGE £’000d) Capital PaybackPayback associated with the general capital programme.

+617 2006/07+659 2007/08+662 2008/09

onwards

e) Workforce ReformThese figures are based on the DfES assessment of the impact of workforce reform on school budget shares of nursery and primary schools.

+1,518 2006/07onwards

f) Exam InvigilationThis pressure relates to the impact of workforce reforms on exam invigilation costs for secondary schools. The DfES has costed this at 0.1% of secondary school budget shares.

+211 2006/07onwards

g) Units and BasesThe impact of the teachers pay reform grant has caused pressure on the costs of operating units and bases. These costs are not fully funded by grant and due to the specialist skills required by unit and base teachers, schools have little discretion over their grading.

+200 2006/07onwards

h) Stevenage FederationThis relates to the pilot costs of federation in Stevenage schools which will inform future school re-organisation arrangements.

+100 2006/07+100 2007/08

+42 2008/09Nil 2009/10

i) Early Years SENCOsThis relates to 50% of the costs of these posts currently funded by the Sure Start Grant. The DfES has notified the authority that Sure Start Grant can no longer be used to support these posts but that they should be funded from DSG.

+65 2006/07onwards

j) Personalised and Practical LearningThe element of the DSG earmarked by the DfES for supporting Personalised and Practical Learning options.

+4,717 2006/07+12,560 2007/08

onwards

k) Increase in Schools ContingencyReinstating the £500k removed from the contingency in 2005/06, plus provision of £150k in 2006/07 only regarding three admissions primary schools.

+650 2006/07+500 2007/08

onwards

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2006/07 PRESSURES FOR CHANGE £’000l) Increase in cost of Minimum Funding Guarantee (MFG)The cost of operating the MFG, plus protection, over and above the cost of the normal operation of the Hertfordshire School Funding Formula.

+4,500 2006/07onwards

A24

APPENDIX 2 (1) D

SAVINGS £’000

Cashable Efficiency Savings - Othera) Centrally held Human Resources provisionsThere is reduced demand for entitlement within the provisions for gratuities and supply cover in schools.

-35 2006/07onwards

b) AWPU RecoveryThis reflects the extent to which recovery of the AWPU for excluded pupils exceeds the payments for readmitted pupils. This sum forms part of the schools contingency and it is prudent to make this saving.

-100 2006/07onwards

c) Additional Welfare and TuitionThe demand for Applied Behaviour Analysis programmes to support autistic children has levelled off in recent years resulting in available resource in this area of the budget.

-200 2006/07onwards

d) Repairs and maintenance budgetsThis reflects the reduced demand on centrally held budgets as a consequence of increased availability of devolved formula capital grants in schools.

-82 2006/07onwards

e) Home and Hospital EducationA review of the equality of provision across the county identified that the average number of children per year taught in the East Area is 30 more than justified on the basis of population, Super Output Areas and SEN. In addition a move to permanent contracts for staff would result in further savings.

-160 2006/07onwards

A25

APPENDIX 2 (2)

PORTFOLIO: CHILDREN, SCHOOLS & FAMILIES – EDUCATION (NON-SCHOOLS)


Chief Officer: John Harris, Director of Children, Schools & Families (01992 555700)

Contact for queries: Claire Cook, Head of Central Finance (CSF) (01992 555737)




A27

APPENDIX 2 (2)A

COMMENTARY

1.1 This Appendix outlines details of the proposals for a revenue budget of £69.709 million (excluding capital charges and the FRS17 Pension adjustment) for Children Schools and Families Education (Non-Schools).


Cashable Efficiency Savings £’0002006/07 Gershon Savings 3,5522006/07 Other Savings 115Total 3,667

1.3 This area of the service has made significant contributions to the overall efficiency targets particularly arising from transport costs linked to the Integrated Transport Review. Other proposed savings against this area of the CSF budget include these within core activities within the Learning and School Effectiveness and Commissioning, Performance and Resources portfolios. These savings are intended to avoid any impact on front line services. Proposals in relation to the Music Service aim to protect the quality and range of activities whilst reducing overall costs. Other savings are proposed on Youth Service linked to the review of the structure of the service as part of the ‘Growth and Change’ programme within CSF taking account of the recent ‘Youth Matters’ Green Paper .

1.4 Particular issues for the LEA block relate to the risks around the delivery of the Adult and Community Learning programme as a consequence of the inspection by the Adult Learning Inspectorate in 2004.

1.5 The changes in the funding for Ethnic Minority Achievement Grant are still impacting on this area of the budget. The needs based grant, has resulted in an overall reduction in total resource for Hertfordshire from £2.272 million in 2004/05 to £1.427 million in 2006/07.

1.6 There are a number of uncertainties for the CSF non schools budget, in relation to the transition services for students with SEN given the increase in eligible students and a possible review of safe transport routes.

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APPENDIX 2(2)B

DRAFT REVENUE BUDGET 2006/07 – 2009/10AND MOVEMENT FROM CURRENT YEAR’S BUDGET

CHILDREN, SCHOOLS AND FAMILIES (EDUCATION – NON SCHOOLS)

2006/07£’000

2007/08£’000

2008/09£’000

2009/10£’000

2005/06 Original Budget 70,069 70,069 70,069 70,069Technical Adjustments 2005/06 (360) (360) (360) (360)2005/06 Adjusted Budget 69,709 69,709 69,709 69,709Technical Adjustments 2006/07 747 747 747 747Inflation 1,913 1,913 1,913 1,913Pressures for Change:Other Pressures

(a) Business Rates 6 9 16 19(b) Revenue effects of Telecomms 203 258 354 448(c) Home to School Transport –

Volume increases: SEN 380 760 760 760(d) LGPS employer’s contributions 247 500 695 1,127(e) Adult & Community Learning 143 143 143 143(f) Hertfordshire Youth Charter 28 28 28 28

Cashable Efficiency SavingsGershon:(a) Long-term efficiency gains (927) (941) (941) (941)(b) Home to School Transport (1,177) (1,482) (1,602) (1,602)(c) Youth Service (275) (266) (266) (266)(d) Standards & School

Effectiveness (436) (618) (618) (618)(e) Music Service (125) (225) (225) (225)(f) Health & Safety (30) (30) (30) (30)(g) Manpower contract (71) (71) (71) (71)(h) Human Resources (162) (162) (162) (162)(i) Further long term efficiency

gains (93) (8) (8) (8)(j) Schools causing concern &

workforce school development (100) (100) (100) (100)(k) Sure Start 0 (226) (226) (226)(l) Community use of schools (45) (125) (125) (125)(m) Discretionary awards (78) (150) (150) (150)(n) Employer’s liability insurance (33) (45) (45) (45)

Other:(o) Health & Safety (15) (15) (15) (15)(p) Early retirement – school staff (100) (100) (100) (100)

2006/07 STANDSTILL BUDGET 69,709 69,503 69,681 70,210

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APPENDIX 2(2) C


Other Pressures(a) Business Rates This relates to the estimated additional costs arising from the 2005 revaluation of property for rating purposes.

+ 6+ 9

+ 16+ 19

2006/072007/082008/092009/10

(b) Revenue effect of telecommsThis is the department’s share of the revenue consequences of undertaking corporate telecommunications capital works with the agreed capital programme.

+ 203+ 258+ 354+ 448

2006/072007/082008/092009/10

c) Home to School Transport – volume increases : SENAnticipated increase in the number of children eligible for free transport given the current trends of increasing SEN numbers. The integrated transport review led by the Director of CSF, is looking to minimise the level of growth in this area and has targets for savings from 1 September 2006.

+ 380+ 760

2006/072007/08

Onwards

(d) LGPS employer’s contributionsEstimated cost of the increase in employer’s contributions to the Local Government Pension Scheme.

+ 247+ 500+ 695

+ 1,127

2006/072007/082008/092009/10

(e) Adult & Community LearningThere has been a change in emphasis in Learning & Skills Council (LSC) funding towards post 16 education. This has resulted in the LSC reviewing all of their funding streams. As a consequence there have been changes in the areas which could count against grant. This includes a proportion of the work of Community Education Development officers, areas of the work within schools and library service which was previously identified against grant. Actions to eliminate this pressure will be required as an outcome of the inspection action plan.

+ 143 2006/07Onwards

(f) Hertfordshire Youth Charter The Children’s Act requires us to feed the views of children and young people into our services. As part of the changing agenda for engaging children and young people this initiative will draw up some models for us to achieve this. The Youth Charter is a vital link in feeding in the views of children and young people. This pressure funds both staffing and projects and has already been identified as a risk within the CSF budget 2005/06.

+ 28 2006/07onwards

A30

APPENDIX 2(2) D

SAVINGS £’000

Cashable Efficiency Savings - Gershon(a) Long term efficiency gainsRestructuring of budgets as a consequence of ‘Growth & Change’ has resulted in a number of areas being identified where efficiency savings can be made from non-frontline budgets.

- 927 2006/07- 941 2007/08

onwards

(b) Home to School TransportA thorough review of Home to School Transport in both Mainstream and SEN areas has identified a number of areas where efficiencies can be made. These include the impact of improved route planning and the Integrated Transport Review.

- 1,177 2006/07- 1,482 2007/08- 1,602 2008/09- 1,602 2009/10

(c) Youth ServiceThese savings are linked to the review of the structure of the Youth Service as part of the ‘Growth and Change’ program and will be implemented so that any changes minimise impact on front line delivery.

- 275 2006/07- 266 2007/08

onwards

(d) Standards & School Effectiveness (SSE)SSE group undertook a review to establish where further savings and efficiency gains could be made. This identified efficiencies / savings in a range of budgets and opportunities to increase trading with schools and external bodies.

- 436 2006/07- 618 2007/08

onwards

(e) Music ServiceA review of the music service has highlighted a number of areas for potential efficiencies through rationalising roles, reducing central support for County Music activities (whilst not reducing the county programme), increasing lettings income at music centres and revising the remission scheme.

- 125 2006/07- 225 2007/08

onwards

(f) Health & SafetyMore efficient use of staffing (at less cost) to undertake Curriculum Health & Safety Reviews.

- 30 2006/07onwards

(g) Manpower contract HR savings from the implementation of the new Manpower contract including advertising initiatives. The final figure is being agreed with Corporate HR.

- 71 2006/07onwards

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SAVINGS £’000(h) Human ResourcesA review of Human Resources has highlighted a number of areas for potential efficiencies through increasing trading and rationalising budgets.

- 162 2006/07onwards

(i) Further Long Term Efficiency GainsA further review of budgets particularly within the Commissioning, Performance and Resources area has identified a numbers of small efficiencies that can be made as a result of changes made through Growth & Change.

- 93 2006/07- 14 2007/08- 18 2008/09- 22 2009/10

(j) Schools Causing Concern & School Workforce DevelopmentImproved efficiency in the management of the schools causing concern and school workforce development budgets are planned to produce these efficiencies. The CSF Board will specifically monitor the schools causing concern area closely to ensure that these efficiencies are being achieved.

- 100 2006/07onwards

(k) Sure StartMaximising grant by recovery of overhead.

- 226 2007/08onwards

(l) Community Use of SchoolsThis is a non-statutory budget which promotes community use of schools. This saving recognises the changing nature of funding through development of extended schools given pressure on central funding.

- 45 2006/07- 125 2007/08

onwards

(m) Discretionary AwardsMaximising the use of grant to fund this area will enable these efficiencies to be made.

-78 2006/07-150 2007/08

onwards

(n) Employer’s liability insuranceThe actuaries have reviewed the number and value of claims likely to be successful against the Council. Their estimate of the value of employer liability claims is lower than it was the year before, due to improved risk management in the authority. This will result in lower charges to services for insurance.

- 33- 45

2006/072007/08onwards

Cashable Efficiency Savings - Other(o) Health & SafetyReduced call on central health and safety budget for school related minor works as a consequence of increased devolved formula capital.

- 15 2006/07onwards

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SAVINGS £’000(p) Early retirements for school staffThere is expected to be reduced demand for early retirement for school staff through the effective more use of performance management.

-100 2006/07onwards

A33

APPENDIX 2 (3)

PORTFOLIO: CHILDREN, SCHOOLS & FAMILIES – CHILDREN SERVICES







A35

APPENDIX 2(3) A

COMMENTARY

1.1 This Appendix outlines details of the proposals for a revenue budget of £84.489 million (excluding capital charges and the FRS17 Pension adjustment) for the Children Schools and Families Children’s Services budget.


Cashable Efficiency Savings £’000FYE of Previous Efficiencies 9002006/07 Gershon Savings 2,596


Total 3,797

1.3 This part of the service has made significant contributions to the overall efficiency target particularly through review of service contracts and core activities and review of CSF planned commitments. Increased efficiencies are shown as a result of the Looked After Children (LAC) strategy over and above the level of reinvestment in preventative strategies. However, the further targets within the LAC strategy hold some risks as they concern children with particularly complex needs who are more difficult to support in county. We have included this risk within our calculation of uncertainties. The level of this risk will reduce as the preventative strategies are fully embedded.

1.4 We have taken a prudent approach in all savings targets and investment in this area. We are looking to reduce the overall pressures as part of this strategy. Aligned to this is the Private Finance Initiative project which provides for the re-provision and expansion of children’s residential homes and the refurbishment of family support centres. The budget impact of this is first shown within 2007/08.

1.5 The pressures on the service are in the main legislative. These include the Social Care Complaints procedures and the requirements from the Care Standards Act for children receiving shared care or respite breaks. The statutory requirements to record social work case records electronically will require investment in ICT if the service is to work effectively. We anticipate that this investment would realise benefits in terms of reduced administration of case files in future years. We now need to further develop IRIS and its support arrangements to enable us to meet a range of statutory obligations, directives and business needs that have arisen from the Children Act, the implementation of the Electronic Social Care Record, the government’s expectation around partnership working for children and adults (for example, the Single Assessment Process),

A36

expectations on efficiencies and delivering the new proposals in the Independence, Well Being and Choice green paper. This is subject to a bid within the capital programme.

1.6 The ending of the Safeguarding Children Grant, which supports critical services in relation to Child Protection, has also resulted in a significant pressure on this area of the budget.

A37

APPENDIX 2(3) B


CHILDREN SCHOOLS AND FAMILIES (CHILDRENS SERVICES)

2006/07£’000

2007/08£’000

2008/09£’000

2009/10£’000

2005/06 Original Budget 82,510 82,510 82,510 82,510Technical Adjustments 2005/06 (98) (98) (98) (98)2005/06 Adjusted Budget 82,412 82,412 82,412 82,412Technical Adjustments 2006/07 276 276 276 276Inflation 2,547 2,547 2,547 2,547Pressures for Change:

Previous Policy Decisions:a) Recruitment and Retention of

qualified Social Workers150 215 215 215

b) PFI bid 0 1,000 1,170 1,200Full Year Effect of Previous Efficiencies:

a) LAC “invest to save” strategy (900) (900) (900) (900)b) PFI bid 0 (1,000) (1,170) (1,200)

Demography:a) Leaving care (259) (259) (259) (259)

Legislative Changes:a) Social Care Complaints

Regulations 85 85 85 85b) Independent Review Team 180 180 180 180c) Access to records 33 33 33 33d) Electronic social care records. 377 377 377 377

Other Pressures:a) Business rates 0 1 1 1b) LGPS employer’s contributions 106 214 297 482c) Capital payback 100 100 100 100d) LAC “invest to save” strategy 900 900 900 900e) Interpreting & translation 60 60 60 60f) Safeguarding children 1,319 1,319 1,319 1,319

Cashable Efficiency Savings:Gershon:a) Long term efficiency gains (595) (595) (595) (595)b) LAC Strategy – Out County (1,100) (1,100) (1,100) (1,100)c) LAC Transport (500) (500) (500) (500)d) Fostering project (200) (200) (200) (200)e) Learning & Development (119) (182) (182) (182)f) Manpower contract (30) (30) (30) (30)g) Further long term efficiency

gains (37) (6) (12) (18)

h) Employer’s liability insurance (15) (18) (18) (18)

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2006/07£’000

2007/08£’000

2008/09£’000

2009/10£’000

Other:i) Learning & Development (81) (81) (81) (81)j) Respite Care (120) (120) (120) (120)k) CAMHS (100) (100) (100) (100)


A39

APPENDIX 2(3) C


Previous Policy Decisions(a) Recruitment & retention of qualified social workersCosts of supporting the ongoing strategy for attracting qualified social workers to reduce the level of unallocated child protection cases and ensure consistency in referral, assessment and long term casework.

+ 150 2006/07+ 215 2007/08

onwards

(b) PFI BidThese are the PFI payments required once the PFI accommodation comes on stream. These costs are off-set by the savings made on Out County and repairs & maintenance budgets shown below.

Nil 2006/07+ 1,000 2007/08+ 1,170 2008/09+ 1,200 2009/10

Full Year Effect of Previous Efficiencies(a) Looked After Children (LAC) “invest to save” strategy“Invest to Save” proposals through a review of services contracts, core activities and review of CSF planned commitments.

- 900 2006/07onwards

(b) PFI BidThese are the savings that should result from the impact of reduced reliance on Out County provision and associated savings in repairs and maintenance and other premises costs once the PFI accommodation comes on stream.

Nil 2006/07- 1,000 2007/08- 1,170 2008/09- 1,200 2009/10

Demography(a) Leaving careThe number of qualifying care leavers has reached a plateau and there is capacity to scale back the budget.

- 259 2006/07onwards

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Legislative Changes (a) Social Care Complaints RegulationsThe introduction of a new complaints procedure for social care complaints will involve publishing new procedures, training front line managers and staff, improving data collection and developing the role of the Conciliation & Appeals Unit. This will happen, but has been delayed because of the reorganisation of the Commission for Social Care Inspection / Ofsted. We are expecting this to be implemented from Spring 2006 and have already started work to put processes in place. This has already been identified as a risk within the CSF budget 2005/06.

+ 85 2006/07onwards

(b) Independent Review TeamIncrease in the Independent Review Team (IRT) capacity to chair reviews for children receiving shared care and respite breaks. Regulations and guidance from the DfES make it clear that this must happen on a 6 monthly basis, but this is not currently being undertaken.

+ 180 2006/07onwards

(c) Access to recordsThere is an increased demand for access to personal records as a consequence of Access to Records (35%) and the Data Protection Act (25%). We are required to respond to such request within a deadline of 40 days and this is not possible within current resources. This could lead to loss of reputation if applicants register complaints with the Information Commissioner.

+ 33 2006/07onwards

A41

2006/07 PRESSURES FOR CHANGE £’000(d) Electronic Social Care RecordsTo comply with the DoH’s Defining the Electronic Social Care Record Strategy, that all documents for all active cases from 1st October 2006 are available electronically to support case work.

A pilot project has already started to scan in client files in the West Area in preparation for staff moves to Apsley One in January 2006. Laptops, and other equipment, required to enable Social Workers to maintain Electronic Social Care Records (ESCR) for Apsley One, have already been funded from efficiencies identified in the CSF budget. Additional funding is required to provide similar equipment for social Workers moving to Apsley Two and in the East area.

Once new working practices for ESCR have been established it should be possible to reduce the administration of case files and consequently the cost of this process.

+377 2006/07onwards

Other Pressures(a) Business ratesThis relates to the estimated additional costs arising from the 2005 revaluation of property for rating purposes.

Nil 2006/07+ 1 2007/08

onwards

(b) LGPS Employers’ ContributionThis is the department’s share of the increases in employers’ contributions towards the Local Government Pension Scheme.

+ 106 2006/07+ 214 2007/08+ 297 2008/09+ 482 2009/10

(c) Capital paybackPayback associated with the general capital programme.

+ 100 2006/07onwards

(d) LAC “Invest to Save” Strategy“Invest to Save” proposals relating to the moving on of care plans for LAC / adoption and care leavers, statutory / safe services and the balance of statutory preventative work for children in need. This is intended to reduce the pressure on this part of the committee’s budget and to develop an integrated service for children with disabilities as part of the LAC “Invest to Save” proposals.

+ 900 2006/07onwards

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(e) Interpreting & Translation (I&T)Greater awareness of the service coupled with increasing numbers of minority ethnic families and children being identified as likely to benefit from I&T support and an increased emphasis on I&T support in child protection cases has led to an increase in the volume of demand for this service.

+ 60 2006/07onwards

(f) Safeguarding ChildrenThe two year Safeguarding Children grant comes to an end on 31st March 2006. A number of on-going commitments, including additional child protection posts (in response to recommendations from the Climbie Inquiry) and independent review officers need to continue.

+1,319 2006/07onwards

A43

APPENDIX 2(3) D

SAVINGS £’000

Cashable Efficiency Savings - Gershon(a) Long term efficiency gainsRestructuring of budgets as a consequence of ‘Growth & Change’ has resulted in a number of areas being identified where savings can be made plus smaller efficiencies including increased charges.

- 595 2006/07onwards

(b) LAC Strategy – Out CountyThis relates to the success of the LAC strategy in reducing numbers of placements and smarter commissioning of packages in the current year, over and above previous projections and estimated continued future success in both of these areas.

- 1,100 2006/07onwards

(c) LAC TransportManagement action to review high cost transport commitments for individual children. This includes reducing the use of private taxi companies by using more volunteer drivers and taking decisions to place children in local schools.

- 500 2006/07onwards

(d) Fostering projectA review of expensive fostering project placements has enabled these to be absorbed within the mainstream fostering service.

- 200 2006/07onwards

(e) Learning & DevelopmentAs part of the outcome of ‘Growth & Change’ the priorities for Learning and Development have been reviewed. This has resulted in a more focused programme that better meets the needs of the service.

- 119 2006/07- 182 2007/08

onwards

(f) Manpower contract HR savings from the implementation of the new Manpower contract including advertising initiatives. The final figure is being agreed with Corporate HR.

- 30 2006/07onwards

(g) Further Long Term Efficiency GainsA further review of budgets particularly within the Commissioning, Performance and Resources area has identified a numbers of small efficiencies that can be made as a result of changes made through Growth & Change.

- 37 2006/07- 6 2007/08

- 12 2008/09

- 18 2009/10

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SAVINGS £’000(h) Employer’s liability insuranceThe actuaries have reviewed the number and value of claims likely to be successful against the Council. Their estimate of the value of employer liability claims is lower than it was the year before, due to improved risk management in the authority. This will result in lower charges to services for insurance.

- 15 2006/07-18 2007/08

onwards

Cashable Efficiency Savings - Other(i) Learning & DevelopmentThe impact of the Recruitment and Retention strategy is expected to result in reduced demand for secondments to Social Work Degree courses.

- 81 2006/07onwards

(j) Respite CareThis saving relates to three areas of respite care expenditure. Creation of the two Area Children’s Services through ‘Growth & Change’ provides an opportunity to rationalise the allocation and introduce eligibility criteria for respite care. Introducing charging for some clients and more efficient management of one of the block contracts also contributes towards the saving.

- 120 2006/07onwards

(k) CAMHSFull utilisation of the children’s element of the CAMHS grant should reduce expenditure elsewhere in the CSF budget.

- 100 2006/07onwards

A45

APPENDIX 2 (4)

PORTFOLIO: CHILDREN, SCHOOLS & FAMILIES – LIBRARIES, HERITAGE & ARTS






BudgetC Pressures for ChangeD SavingsE Fees and Charges

A47

APPENDIX 2 (4) A

COMMENTARY

1.1 This Appendix outlines details of the proposals for a revenue budget of £18.538 million (excluding capital charges and the FRS17 pension adjustment) for Libraries, Heritage & Arts.


Cashable Efficiency Savings £’000

2006/07 Gershon Savings 57Total 57

1.3 The vision for the service ‘Libraries for the 21st century’ aims to address the major challenges facing the service, that is:

To meet the Public Library Service Standard (PLSS) on aggregate opening hours

To increase usage, that is people visiting and borrowing items from the libraries

To improve the network of buildings in need of repair, refurbishment or replacement.

1.4 There is a requirement to meet the PLSS standard on aggregate opening hours. To achieve this a phased approach is proposed which would require investment of £0.585 million in 2006/07, rising to £0.943 million in 2007/08 to meet the full costs of implementation. This investment would allow remodelling of the libraries infrastructure which would generate some resource to off-set these costs.

A48

APPENDIX 2 (4) B


LIBRARIES, HERITAGE & ARTS

2006/07£’000

2007/08£’000

2008/09£’000

2009/10£’000

2005/06 Original Budget 17,645 17,645 17,645 17,645Technical Adjustments 2005/06 (142) (142) (142) (142)2005/06 Adjusted Budget 17,503 17,503 17,503 17,503Technical Adjustments 2006/07 35 35 35 35Inflation 484 484 484 484Pressures for change:

Other Pressuresa) Business Rates 35 64 76 77b) LGPS employer’s contributions 67 136 189 306c) Revenue effects of capital 165 201 277 353d) Revenue effects of telecoms (14) (13) (11) (9)e) Capital payback 186 186 177 186f) Shortfall on fees and charges 134 134 134 134

Cashable Efficiency Savings:a) Manpower Contract (23) (23) (23) (23)b) Schools Library Service (27) (27) (27) (27)c) Libraries remodelling 0 (100) (100) (100)d) Employer’s liability insurance (7) (9) (9) (9)


A49

APPENDIX 2 (4) C

CHILDREN, SCHOOLS & FAMILIES: Libraries, Heritage & Arts

NARRATIVE


Other Pressures(a) Business RatesThis relates to the estimated additional costs arising from the 2005 revaluation of property for rating purposes.

+ 35 2006/07+ 64 2007/08+ 76 2008/09+ 77 2009/10

(b) LGPS employer’s contributionsThis is the department’s share of the increases in employers’ contributions towards the Local Government Pension Scheme.

+ 67 2006/07+ 136 2007/08+ 189 2008/09+ 306 2009/10

(c) Revenue effects of capitalThese are the revenue consequences of undertaking capital works within the agreed capital programme.

+ 165 2006/07+ 201 2007/08+ 277 2008/09+ 353 2009/10

(d) Revenue effects of telecommsThese are the authority’s total revenue consequences of undertaking corporate, telecommunications capital works.

- 14 2006/07 - 13 2007/08- 11 2008/09 - 9 2009/10

(e) Capital paybackPayback associated with the general capital programme.

+ 186 2006/07+ 186 2007/08+ 177 2008/09+ 186 2009/10

(f) Shortfall on fees and chargesA combination of factors has impacted on the level of fees and charges received within the service. This includes the decision to reduce a number of fees and freeze others. Many people in Hertfordshire have access to digital TV channels and can pay or choose films to watch easily from the comfort of their own homes.

+ 134 2006/07onwards

A50

APPENDIX 2 (4) D

SAVINGS £’000

Cashable Efficiency Savings - Gershona) Manpower Contract HR savings from the implementation of the new Manpower contract including advertising initiatives. The final figure is being agreed with Corporate HR.

- 23 2006/07onwards

b) Schools Library ServiceThis will be achieved by using an alternative approach to the delivery of ICT staffing needs and using the new exchange mobile for both the exhibition and loan/purchase stock, thus releasing the exhibition mobile. There will also be a rationalisation of routes enabling deliveries to schools to be undertaken in 4, rather than 5, days.

- 27 2006/07onwards

c) Libraries remodellingInvestment in the libraries infrastructure will provide the opportunity to review and remodel libraries for the 21st century.

Nil 2006/07- 100 2007/08

Onwards

d) Employer’s liability insuranceThe actuaries have reviewed the number and value of claims likely to be successful against the Council. Their estimate of the value of employer liability claims is lower than it was the year before, due to improved risk management in the authority. This will result in lower charges to services for insurance.

- 7 2006/07- 9 2007/08

onwards

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APPENDIX 3

PORTFOLIO: COMMUNITY SAFETY


CONTENTS

Commentary

Appendix 3 (1): Fire & Rescue(a) Revenue Budget 2006/07 – 2009/10 and Movement

from current year’s budget(b) Pressures for Change(c) Savings

Appendix 3 (2): Trading Standards(a) Revenue Budget 2006/07 – 2009/10 and Movement


Appendix 3 (3): Registration Service(a) Revenue Budget 2006/07 – 2009/10 and Movement


Appendix 3 (4): Coroners Service(a) Revenue Budget 2006/07 – 2009/10 and Movement


Appendix 3 (5): Emergency Planning(a) Revenue Budget 2006/07 – 2009/10 and Movement


Appendix 3 (6): Crime & Drugs Strategy Unit(a) Revenue Budget 2006/07 – 2009/10 and Movement


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COMMENTARY

1.1 This Appendix outlines details of the proposals for a revenue budget of £43.327 million (excluding capital charges and the FRS 17 Pension adjustment) for Community Safety.

The breakdown of this across individual services is as follows:

£’000Fire & Rescue (incl. Fire Pensions) 35,626

Trading Standards 2,588

Registration Service 771

Coroners Service 976

Emergency Planning 666

Crime & Drugs Strategy Unit 2,700

Total Community Safety 43,327

1.2 Cashable efficiency savings included in the proposals are summarised below with fuller details provided in the following appendices.

£’000

2006/07 Gershon Savings 80


Total 287

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PORTFOLIO: COMMUNITY SAFETY – FIRE & RESCUE

Chief Officer/Head of function: Mr R Wilsher (01992 507501)Contact for queries: Mr J Wallace (01992 507508)

APPENDIX 3 (1) A


FIRE & RESCUE

2006/07£’000

2007/08£’000

2008/09£’000

2009/10£’000

2005/06 Original Budget 29,127 29,127 29,127 29,127Technical Adjustments 2005/06 (51) (51) (51) (51)2005/06 Adjusted Budget 29,076 29,076 29,076 29,076Technical Adjustments 2006/07 59 59 59 59Inflation 1,249 1,249 1,249 1,249Pressures for Change:Legislative Changes:

a) Fire Certificates 16 16 16 16b) Emergency Planning Officer 35 35 35 35

Other Pressuresa) Business Rates (5) (4) (3) 0b) LGPS employer’s contributions 20 41 57 93c) Capital Payback 353 851 805 810d) Revenue effects of capital 10 10 10 10e) IRMP 250 250 250 250f) Breathing apparatus 33 0 0 0

Cashable Efficiency Savingsa) Manpower contract (5) (5) (5) (5)b) Employer’s liability insurance

(34) (40) (40) (40)STANDSTILL BUDGET 31,057 31,538 31,509 31,553

FIRE PENSIONS

2006/07£’000

2007/08£’000

2008/09£’000

2009/10£’000

2005/06 Original Budget 5,427 5,427 5,427 5,427Technical Adjustments 2006/07 (1,000) (1,000) (1,000) (1,000)Inflation 142 142 142 1422006/07 STANDSTILL BUDGET 4,569 4,569 4,569 4,569

A55

APPENDIX 3 (1) B


Legislative Changesa) Fire Certificate IncomeChanges in the regulatory framework means that businesses are no longer required to have a fire certificate, resulting in a loss of income to the fire Service.

+ 16 2006/07 onwards

b) Emergency Planning OfficerFunding is sought for this post to meet the requirements of the Civil Contingencies Act and the New Dimensions programme and to meet our responsibilities as a CAT 1 responder.

+ 35 2006/07 onwards


- 6 2006/07- 4 2007/08- 3Nil

2008/092009/10

b) LGPS employer’s contributionsEstimated cost of the increase in employer’s contributions to the Local Government Pension Scheme.

+ 20+ 41+ 57+ 93

2006/072007/082008/092009/10

c) Capital PaybackPayback associated with the capital programme.

+ 353 2006/07+ 851 2007/08+ 805 2008/09+ 810 2009/10

d) Revenue Effects of CapitalThe revenue consequences of the capital programme.

+ 10 2006/07 onwards

e) IRMPPending decision on implementation of IRMP

+ 250 2006/07 onwards

f) Breathing apparatus The total care contract for the maintenance of Breathing Apparatus (BA) is due to end in April 2006. Because of the development of new national standards for BA and a regional procurement initiative it is inappropriate to replace the current equipment at this time. Funding is sought for a one year extension of the existing total care maintenance agreement, rather than proceed with a comprehensive procurement process in 2006/07.

+ 33 2006/07only

A56

APPENDIX 3 (1) C

SAVINGS £’000

Cashable Efficiency Savings - Gershona) Manpower Contract HR savings from the implementation of the new Manpower contract including advertising initiatives.

- 5 2006/07Onwards

d) Employer’s liability insuranceThe actuaries have reviewed the number and value of claims likely to be successful against the Council. Their estimate of the value of employer liability claims is lower than it was the year before, due to improved risk management in the authority. This will result in lower charges to services for insurance.

- 34 2006/07- 40 2007/08

onwards

A57

PORTFOLIO: COMMUNITY SAFETY – TRADING STANDARDS

Head of Trading Standards: Guy Pratt (01727) 813849

Contacts for queries: Tolu Cliffe (01992 555391) Sally Crouch (01992 555389)

APPENDIX 3 (2) A

2006/07£’000

2007/08£’000

2008/09£’000

2009/10£’000

2005/06 Original Budget 2,626 2,626 2,626 2,626Technical Adjustments 2005/06 (107) (107) (107) (107)2005/06 Adjusted Budget 2,519 2,519 2,519 2,519Technical Adjustments 2006/07 20 20 20 20Inflation 75 75 75 75Pressures for Change:

Other Pressures:a) Revenue effects of telecoms 14 16 18 20b) Business Rates (5) (3) (3) (3)c) LGPS employer’s contributions 13 26 36 59

Cashable Efficiency Savings:a) Removal of Assistant Director

post (40) (40) (40) (40)

b) Analytical requirements – more effective targeting (8) (8) (8) (8)


A59

APPENDIX 3 (2) B


Other Pressuresa) Revenue Effects of TelecomsThe department’s share of the revenue consequences of undertaking corporate telecommunications capital works within the agreed capital programme and the Telecommunications Infrastructure Fund.

+14 2006/07+16 2007/08+18 2008/09+20 2009/10

b) Business RatesThis relates to the estimated additional costs arising from the 2005 revaluation of property for rating purposes.

- 5 2006/07- 3 2007/08

onwards

c) LGPS employer’s contributionsEstimated cost of the increase in employer’s contributions to the Local Government Pension Scheme.

+13+26+36+59

2006/072007/082008/092009/10

APPENDIX 3 (2) C

SAVINGS £’000

Cashable Efficiency Savings - Gershona) Removal of Assistant Director PostRemoval of Assistant Director position, productivity costs of £40K to be absorbed within existing posts.

- 40 2006/07onwards

b) Analytical requirements - more effective targetingEfficiency savings will be achieved by more effective targeting of our analytical requirements with the result of reduction in tests on products, thus the savings are produced.

- 8 2006/07onwards

Non-cashable Efficiency Savings - GershonIntroduction of regional Trading Standards training resourceWith the introduction of a regional Trading Standards training resource will enable more efficient on going professional development for Services Officers by use of a dedicated IT database.

- 5 2006/07onwards

A60

PORTFOLIO: COMMUNITY SAFETY - REGISTRATION SERVICE

Head of Statutory Services: Tom Hawkyard (01707 897375)


APPENDIX 3 (3) A


2006/07£’000

2007/08£’000

2008/09£’000

2009/10£’000

2005/06 Original Budget 762 762 762 762Technical Adjustments 2005/06 21 21 21 212005/06 Adjusted Budget 783 783 783 783Technical Adjustments 2006/07 (21) (21) (21) (21)Inflation 20 20 20 20Pressures for Change:Other Pressures

a) Business Rates 10 10 10 10b) LGPS employer’s contributions 8 16 22 35

Cashable Efficiency Savingsa) Streamlining the processing of

birth and death registrations(11) (11) (11) (11)

b) Web based system for birth and death registration (18) (18) (18) (18)

2005/06 STANDSTILL BUDGET 771 779 785 798

A61

APPENDIX 3 (3) B



+ 10 2006/07 onwards


+8+16+22+35

2006/072007/082008/092009/10

APPENDIX 3 (3) C

SAVINGS £’000

Cashable Efficiency Savings - Gershona) Streamlining the processing of birth/death registrationsCurrently, births and deaths must be registered by the Register Office in the district where the event actually took place. If a member of the public attends a different office they can only make a declaration. That office must then forward the relevant documentation to wherever the birth/death occurred to enable registration.

The county intends to merge the current eight Registration districts into one, resulting in a more streamlined process, as births and deaths can then be registered at any Hertfordshire Register Office without the need to forward documentation elsewhere.

- 11 2006/07onwards

Cashable Efficiency Savings - Otherb) Web based system for birth and death registrationThe Registration Service is due to have a new web based computer system during 2006. The latest information available would suggest this will quicken the process of birth and death registrations.

- 18 2006/07onwards

A62

PORTFOLIO: COMMUNITY SAFETY - CORONERS SERVICE

Head of Statutory Services: Tom Hawkyard (01707 897375)


APPENDIX 3 (4) A


2006/07£’000

2007/08£’000

2008/09£’000

2009/10£’000

2005/06 Original Budget 828 828 828 828Technical Adjustments 2005/06 89 89 89 892005/06 Adjusted Budget 917 917 917 917Technical Adjustments 2006/07 (19) (19) (19) (19)Inflation 47 47 47 47Pressures for Change

a) LGPS employer’s contributions 3 5 7 12b) Toxicology and histology tests 40 40 40 40

Cashable Efficiency Savingsa) ISO 9002 process review staff

savings(12) (12) (12) (12)

STANDSTILL BUDGET 976 978 980 985

APPENDIX 3 (4) B

2006/07 PRESSURES FOR CHANGE £’000Other Pressuresa) LGPS employer’s contributionsEstimated cost of the increase in employer’s contributions to the Local Government Pension Scheme.

+ 3+ 5+ 7

+ 12

2006/072007/082008/092009/10

b) Toxicology and histology testsThere are substantial increases in the numbers of Toxicology and Histology tests being requested by HM Coroner. The need for these to be carried out is directly related to the cause of death.

+ 40 2006/07onwards

A63

APPENDIX 3 (4) C

SAVINGS £’000

Cashable Efficiency Savings - Gershona) ISO 9002 process review staff savingsThe Coroners Service will be reducing the number of administration staff. This has been made possible by a reduction in the administrative burden on the Coroner’s Service following a process review through ISO9002

- 12 2006/07onwards

A64

PORTFOLIO: COMMUNITY SAFETY - EMERGENCY PLANNING SERVICE

Head of Safety, Emergency and Risk Management Unit: John Boulter (01992 555951)


APPENDIX 3 (5) A


2006/07£’000

2007/08£’000

2008/09£’000

2009/10£’000

2004/05 Original Budget 607 607 607 607Technical Adjustments 2005/06 0 0 0 02005/06 Adjusted Budget 607 607 607 607Technical Adjustments 2006/07 47 47 47 47Inflation 18 18 18 18Pressures for Change:

a) LGPS employer’s contributions 3 6 8 13Cashable Efficiency Savings

a) Increased income from Hesmic seminar

(4) (4) (4) (4)

b) Sharing revenue costs for control vehicle with districts

(5) (5) (5) (5)

STANDSTILL BUDGET 666 669 671 676

APPENDIX 3 (5) B

2006/07 PRESSURES FOR CHANGE £’000a) LGPS employer’s contributionsEstimated cost of the increase in employer’s contributions to the Local Government Pension Scheme.

+3+6+8

+13

2006/072007/082008/092009/10

APPENDIX 3 (5) C

SAVINGS £’000

Cashable Efficiency Savings - GershonIncreased income from Hesmic seminarIncreased revenue income generation from the annual emergency planning seminar.

- 4 2006/07onwards

Sharing revenue costs for control vehicleSharing of revenue costs for a Local Authority Control Vehicle with district councils in return for them having use of it during a major emergency in their locality.

- 5 2006/07onwards

A65

PORTFOLIO: COMMUNITY SAFETY – CRIME & DRUGS STRATEGY UNIT

Head of Crime & Drugs Strategy Unit: Philip Winter (01992 588719)

Contacts for queries: Andrew Major (01992 556352)

APPENDIX 3 (6) A


2006/07£’000

2007/09£’000

2008/09£’000

2009/10£’000

2005/06 Original Budget 2,673 2,673 2,673 2,6732005/06 Technical Adjustments 7 7 7 7Adjusted 2005/06 Budget 2,680 2,680 2,680 2,6802006/07 Technical Adjustments (53) (53) (53) (53)Inflation 71 71 71 71Pressures for Change:Previous Policy Decisions:2005/06 & Prior Year:a) Police Community Support

Officers (PCSO’s) 150 150 150 150Other Pressures:a) LGPS employer’s contributions 2 4 6 10

Cashable Efficiency Savings:a) Increased Government funding

for PCSO’s (150) (150) (150) (150)STANDSTILL BUDGET 2,700 2,702 2,704 2,708

A67

APPENDIX 3 (6) B


Previous Policy DecisionsPolice Community Support OfficersBalance of Growth agreed in 2005/06

+150 2006/07onwards

Other Pressuresa) LGPS employers contributionsEstimated cost of the increase in employer’s contributions to the Local Government Pension Scheme.

+2+4+6

+10

2006/072007/082008/092009/10

APPENDIX 3 (6) C

SAVINGS £’000

Cashable Efficiency Savings - Othera) Increased Government funding for Police Community Support OfficersIncreased Government funding for PCSOs will be used to offset HCC base budget contribution.

- 150 2006/07onwards

A68

APPENDIX 4

PORTFOLIO: ENVIRONMENT & TRANSPORT


Chief Officer: John Wood (01992 555200)

Contact for queries: Mike Collier (01992 556010)




A69

APPENDIX 4A

COMMENTARY

1.1 This Appendix outlines details of the proposals for a revenue budget of £96.889 million (excluding capital charges and the FRS17 pension adjustment) for Environment.


£’0002006/07 Gershon Savings 1,366

2006 Other Savings 143

Total 1,509

1.3 In addition to the cashable efficiencies, a further £200,000 of non-cashable efficiency savings have been identified and these are detailed in appendix 4D.

2. Local Transport Plan Settlement

2.1 The County Council bids for Central Government support for highway maintenance and other capital schemes through the Local Transport Plan (LTP). The formal allocation of funds is made on an annual basis, with the announcement for 2006/07 being received on December 14th.

2.2 The ‘award’ for integrated transport schemes and structural maintenance came in at £20.597 million. The Integrated Transport ‘Allocation’ was lower than the Provisional Guidelines of £12.3 million due to the implementation of a funding formula which reduced the guidelines to £12.023 million. The guidelines were then reduced again by 5% due to the Annual Progress Report score of ‘fair’, to the actual allocation of £11.422 million. The Maintenance ‘Allocation’ was increased by £165,000 to include bridge repairs to the Gascoyne Way Viaduct. The history of recent awards is shown in the table below:

2002/03 2003/04 2004/05 2005/06 2006/07Actual

£000Actual

£000Actual

£000Actual

£000Indicative

£000Actual

£000Integrated Transport 12,950 14,170 12,350 12,600 12,300 11,422Maintenance 10,586 7,939 9,262 8,596 9,010 9,175Totals 23,536 22,109 21,612 21,196 21,310 20,597

2.3 The County Council was also ‘awarded’ £6.5 million in grant and supported borrowing in 2006/07 for continued work on the Baldock bypass as expected. Decisions on future major schemes will be taken after regional advice has been considered by Government.

A70

2.4 In the past, the LTP allocations for Integrated Transport and Maintenance have been funded by increases in the County Council's overall revenue grant settlement to reflect the debt charges that are incurred in increased borrowing. Major schemes, such as Baldock Bypass, have been funded 50% from specific capital grants and 50% from grants to reflect debt charges. However, changes to the way in which the funding mechanisms work for Hertfordshire from 2006/07 mean that the debt charges are no longer supported by government grant. This means that the 'allocation' is no longer specifically funded.

2.5 The Highways & Transport Panel received a report on the LTP settlement at its meeting on 12 January. At that meeting the panel would normally have been invited to advise on how the allocation of LTP funding should be split amongst its constituent parts. However, they were informed that due to the fact that the LTP is no longer specifically funded, the actual allocation will not be determined until the County Council budget meeting on 27 February. The Panel agreed, by a majority, to ask the Cabinet to provide sufficient funds to cover the full 'allocation' as set out in the government's settlement letter of 14th December (£11.422 million for Integrated Transport and £9.175 million for maintenance)

2.6 The Integrated Works Programme (IWP) of highways schemes will be adopted in March 2006. The programme will include schemes funded from revenue and capital and will be drawn up after consultation with the Executive Member and the Highways & Transport Panel.

3. Highways Maintenance

3.1 The investment in highways maintenance has been supported in part over the last two years by one-off funding provided in both the revenue and capital budgets. These amounts have been removed from the revenue budget shown in appendix 4b and from the existing capital programme shown in appendix 16.

3.2 Taking the standstill revenue budget, together with the LTP settlement and the existing capital programme, the total amount available for highway maintenance in 2006/07 is currently £43.8 million. This is £4.8 million less in cash or £9.0 million less in real-terms than 2005/06. Further bids of £8.8 million for County Funded capital have been made to maintain the real-terms value of the amounts. The figures for recent years are shown in the following tables.

A71

3.3 Cash Budgets

HCC Funds

LTP

£m

Total

£m.

Revenue

£m

Capital

£m

Total

£m

2002/03 23.2 3.5 26.7 10.6 37.3

2003/04 28.9 4.4 33.3 7.9 41.2

2004/05 27.4 8.1 35.5 9.3 44.8

2005/06 28.4 11.6 40.0 8.6 48.6

2006/07 27.9 6.6 34.5 9.2 43.7

3.4 Real-terms budgets (at 2006/07 prices)

HCC Funds

LTP

£m

Total

£m.

Revenue

£m

Capital

£m

Total

£m

2002/03 28.4 4.5 32.9 13.8 46.7

2003/04 34.2 5.5 39.7 9.9 49.6

2004/05 31.3 9.5 40.8 10.9 51.7

2005/06 30.7 12.7 43.4 9.4 52.8

2006/07 27.9 6.6 34.5 9.2 43.7

A72

APPENDIX 4B


ENVIRONMENT

2006/07£’000

2007/08£’000

2008/09£’000

2009/10£’000

2005/06 Original Budget (less one-off funding) 87,761 87,761 87,761 87,761

Technical Adjustments 2005/06 (54) (54) (54) (54)2005/06 Adjusted Budget 87,707 87,707 87,707 87,707Technical Adjustments 2006/07 315 315 315 315Inflation 7,309 7,309 7,309 7,309Pressures for Change:

Previous Policy Decisions2005/06 & Prior Yearsa) Local Transport Plan 2 (47) (47) (47) (47)b) Herts Observatory (20) (20) (20) (20)Demography:a) Waste Volumes 450 1,050 1,650 2,250b) Road length increases – routine

maintenance 194 388 582 776c) Road length increases –

structural maintenance 480 960 1,440 1,920d) Baldock bypass – routine

maintenance 400 400 400 400Legislative Changes:a) Countryside & Rights of Way 25 50 50 50b) New roads & Street Works Act

– buried apparatus (30) (30) (30) (30)c) Traffic Management Act 80 0 0 0d) Hazardous Waste & Waste

Electrical & Electronic Equipment Regulations 650 650 650 650

e) Hazardous Waste – treatment of coal tar planings 100 100 100 100

Other Pressures:a) Business rates 29 34 37 38b) LGPS employer’s contributions 122 247 343 557c) Revenue effects of capital 75 150 150 150d) Capital payback 569 569 569 569e) Revenue effects of telecoms 20 28 41 55f) Bus routes requiring support 200 400 600 800g) Increased legal fees 25 25 25 25h) Regional transport issues 25 50 50 50i) Public inquiries 0 200 0 0j) Local Transport Plan 3 0 0 40 80k) New Road & Street Works Act –

Section 74 Income 250 250 250 250l) Future highways contracts 0 80 150 80

A73

2006/07£’000

2007/08£’000

2008/09£’000

2009/10£’000

m) Local Area Agreement Support 50 50 50 50n) Aldenham Country Park 50 50 50 50o) Removal of global grants

contribution (30) (30) (30) (30)p) Support for lead up to 2012

Olympic Games 50 50 50 50Funded from Grant (650) (650) (650) (650)Cashable Efficiency Savings:

Gershon:a) Hertfordshire Highways (600) (600) (600) (600)b) HERMIS system maintenance (100) (100) (100) (100)c) SMARTCARD savings (83) (83) (83) (83)d) Road Safety Unit (55) (55) (55) (55)e) Land Management advice (53) (53) (53) (53)f) Resources Group – staffing

review (52) (52) (52) (52)g) Environmental Management –

project management (50) (50) (50) (50)h) Rights of Way/CMS promotions

integration (50) (50) (50) (50)i) Regeneration & Partnerships

Unit - restructuring (50) (50) (50) (50)j) Land Use Monitoring –

refocusing resources (17) (17) (17) (17)k) Mainstream TravelWise budget (20) (20) (20) (20)l) Monitoring of traffic & accident

data (15) (15) (15) (15)m) Review of overheads (10) (10) (10) (10)n) Manpower Contracts Savings (44) (44) (44) (44)o) Employer’s liability insurance (167) (200) (200) (200)Other:p) Abandoned vehicles (75) (75) (75) (75)q) Internal charges for planning

applications (25) (25) (25) (25)r) Land management grants (15) (15) (15) (15)s) Section 106 income (10) (25) (25) (25)t) Increased income from district

council SLAs (10) (10) (10) (10)u) Planning applications (8) (8) (8) (8)


A74

APPENDIX 4C


Previous Policy Decisions (2005/06 & prior years)(a) Local Transport Plan 2 (LTP2)This removes a temporary provision that was made in earlier years.

- 47 2006/07onwards

(b) Herts ObservatoryThis removes a temporary provision that was made in earlier years.

- 20 2006/07onwards

Demographic Changes(a) Waste volumesThe volumes of household waste that the county council is obliged to dispose of each year continue to rise in common with all waste disposal authorities.

+ 450 + 1,050+ 1,650+ 2,250

2006/072007/082008/092009/10

(b) Road length increases – routine maintenanceWith increases in residential developments, the length of roads that the county council has a responsibility to maintain continues to grow each year. Recent calculations have revealed that it costs an average of almost £6,800 per kilometre to maintain local roads. An additional 28.4 kilometres were added to the network last year.

+ 194+ 388+ 582+ 776

2006/072007/082008/092009/10

(c) Road length increases – structural maintenanceIn addition to routine maintenance costs which are covered by item (b) above, roads need significant structural repair of increasing intensity at 15, 25 and 40 years at an average annual cost of £16,900 per kilometre.

+ 480+ 960

+ 1,440+ 1,920

2006/072007/082008/092009/10

(d) Baldock bypass – routine maintenanceThe opening of the Baldock bypass will result in additional maintenance costs being incurred by the county council.

+ 400 2006/07onwards

Legislative Changes(a) Countryside & Rights of Way ActThis item reflects the increases in legal and administrative costs of Definitive Map changes as well as materials and labour costs of improving priority routes on the network.

+ 25+ 50

2006/072007/08onwards

A75


Legislative Changes(b) New Roads & Street Works Act – buried apparatusThis item removes growth that was allowed for in 2004/05 for two years only.

- 30 2006/07onwards

(c) Traffic Management ActAn additional £50,000 was allowed in the 2005/06 budget for this item. However, as the requirements of the Act have become clearer it has become apparent that additional one-off funding will be required to develop and implement a roadspace booking system.

+ 80 2006/07 only

(d) Hazardous Waste & Waste Electrical & Electronic Equipment RegulationsThese regulations classify everyday items such as televisions and computer monitors as ‘hazardous’ when requiring disposal. This significantly increases the costs of disposal. It is unclear whether Government funding will be made available to offset these costs and if so, whether this will be through the FSS formula or specific grants.

+ 650 2006/07onwards

(e) Hazardous Waste – coal tar planingsChanges to the waste classification of road planings that contain coal tar mean that they can no longer be treated and re-used using previously acceptable methods. New ways of working have been found but these are more expensive.

+ 100 2006/07onwards

Other Pressures(a) Business ratesThis relates to the estimated additional costs arising from the 2005 revaluation of property for rating purposes.

+ 29+ 34+ 37+ 38

2006/072007/082008/092009/10


+122+247+343+557

2006/072007/082008/092009/10

(c) Revenue effects of capitalThese are the revenue consequences of undertaking capital works within the agreed capital programme.

+ 75+ 150

2006/072007/08onwards

(d) Capital paybackPayback associated with the general capital programme.

+ 569 2006/07onwards

A76


(e) Revenue effects of telecommsThese are the authority’s total revenue consequences of undertaking corporate, telecommunications capital works.

+ 20+ 28+ 41+ 55

2006/072007/082008/092009/10

(f) Bus routes requiring supportAs operators surrender bus routes that were previously commercially viable, HCC has a statutory duty to decide whether to provide support to keep the services going. This budget allows for some additional support following route rationalisation.

+ 200+ 400+ 600+ 800

2006/072007/082008/092009/10

(g) Increased legal feesIncreased enforcement activity is leading to an increase in the need for legal advice. Costs of legal services are also rising.

+ 25 2006/07onwards

(h) Regional transport issuesAn additional post is required to work on Regional Transportation issues, growth areas / infrastructure proposals and representing HCC at various working parties.

+ 25+ 50

2006/072007/08onwards

(i) Public inquiriesThe existing provision of £500,000 for public inquiries will need to be increased for 2007/08 to support the county council’s case at Stansted, Luton Airport and North of Harlow inquiries.

+ 200 2007/08only

(j) Local Transport Plan 3 (LTP3)Extra costs will be incurred towards the end of this budget period in preparing, producing and consulting upon the next Local Transport Plan. Costs are likely to be considerably higher than for LTP2 because of the requirement for additional consultation and Strategic Environmental Assessment work. There will also be a need to appoint additional temporary staff.

NilNil

+ 40+ 80

2006/072007/082008/092009/10

(k) New Roads & Street Works Act - Section 74 incomeCharges are made to utility companies who disrupt the highway for longer than agreed timescales when they carry out their works. Recent clarification of the law has resulted in fewer occasions when the county council can impose charges. In addition, as the charges begin to have their desired impact of reducing the number of ‘overstays’ the income to the county council automatically reduces.

+ 250 2006/07onwards

A77


(l) Future highways contractsThe current Hertfordshire Highways contracts run until September 2009, with a possible extension of a further three years. This item will ensure that resources are in place to develop, tender and let the next generation of contracts.

Nil+ 80

+ 150+ 80

2006/072007/082008/092009/10

(m) Local Area Agreement (LAA) supportAdditional project management and communications resources are required to support the LAA process and Hertfordshire Forward.

+ 50 2006/07onwards

(n) Aldenham Country ParkThe current gap between expenditure and income needs to be filled to allow more effective local management and cost-control.

+ 50 2006/07onwards

(o) Removal of Global Grants contributionThis removes the county council’s contribution to the European Social Fund Herts Community Foundation Programme which ends at the end of 2005/06.

- 30 2006/07onwards

(p) Support for lead up to 2012 Olympic GamesPreparations for the 2012 Olympics have already begun and talks between the county council and other bodies have revealed the need for the council to provide extra resources in this area.

+ 50 2006/07onwards

A78

APPENDIX 4 DSAVINGS £’000Cashable Efficiency Savings - Gershon(a) Hertfordshire HighwaysFurther efficiency savings should be possible from within the Hertfordshire Highways contract.

- 600 2006/07onwards

(b) HERMIS system maintenanceIntegration of the support provided to the HERMIS system into the wider work of the Information management Unit will give savings of £100,000 per year. Two staff that were previously employed by an outside consultant are now employed by the county council and the work of other consultants is being absorbed within the unit.

- 100 2006/07onwards

(c) SMARTCARD savingsA review of leases and contracts for smartcard will result in savings.

- 83 2006/07onwards

(d) Road Safety UnitA review of the staffing of the unit has identified savings of £55,000 per year.

- 55 2006/07onwards

(e) Land Management adviceAbsorbing forestry/woodland advice into the Countryside Management Service (CMS), and streamlining area teams, should release savings.

- 53 2006/07onwards

(f) Resources Group – staffing reviewReviews of staffing in the units within the Resources Group have identified savings of £52,000 per year.

- 52 2006/07onwards

(g) Environmental Management – project managementStreamlining project management work within this group should enable savings to be made.

- 50 2006/07onwards

(h) Rights of Way / CMS promotions integrationIntegrating the promotions activity of the Rights of Way unit within the CMS service should result in savings of £50,000 per year.

- 50 2006/07onwards

(i) Regeneration & Partnerships Unit – restructuringA review of the structure of this unit will result in savings of £50,000 from reducing the number of team leaders from three to two.

- 50 2006/07onwards

A79

SAVINGS £’000

(j) Land use monitoring – refocusing resourcesRefocusing the resources within this unit should allow a saving of £17,000 to be made without affecting the service provided.

- 17 2006/07onwards

(k) Mainstream TravelWise budgetEnsuring that the TravelWise message and ethos is ‘mainstreamed’ more throughout the work of the department will allow this saving to be made.

- 20 2006/07onwards

(l) Monitoring of traffic & accident dataReorganising the way in which traffic and accident data is collected and monitored will result in this saving.

- 15 2006/07onwards

(m) Review of overheadsA saving of £10,000 per year is achievable from reviewing the department’s overhead budgets.

- 10 2006/07onwards

(n) Manpower contract savingsHR savings from the implementation of the new Manpower contract including advertising initiatives.

- 44 2006/07onwards

(o) Employer’s liability insuranceThe actuaries have reviewed the number and value of claims likely to be successful against the Council. Their estimate of the value of employer liability claims is lower than it was the year before, due to improved risk management in the authority. This will result in lower charges to services for insurance.

- 167 2006/07- 200 2007/08

onwards

Cashable Efficiency Savings – Other(p) Abandoned vehiclesThe county council entered into a joint contract with the district councils for the disposal of abandoned vehicles. The higher performance achieved by the joint contract has had a positive effect on the numbers dealt with.

- 75 2006/07onwards

(q) Internal charges for planning applicationsCurrently no charges are made to HCC departments for planning applications that are determined by the county council in its role as planning authority. While this would have an impact on other departments, it is believed that £25,000 of this may be chargeable to grant income where the scheme under consideration is externally funded. This assumes that fees will be recoverable on approximately half of applications at the current level of activity.

- 25 2006/07onwards

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SAVINGS £’000

(r) Land Management grantsReplace HCC contribution with funding from external sources.

- 15 2006/07onwards

(s) Section 106 incomeA review of what costs can legitimately be charged against section 106 income has revealed that this saving should be possible but will take some time to fully achieve.

- 10- 25

2006/072007/08onwards

(t) Increased income from district councils SLAA review of the Service Level Agreement (SLA) with district councils for the provision of Strategic Environmental Appraisals and Information & Monitoring should allow for a greater contribution to be made towards overhead costs.

- 10 2006/07onwards

(u) Planning applicationsWhile Minerals and Waste Planning application income can be very volatile, this increase should be possible provided the statutory fees are increased in line with inflation and we do not see a fall-off in applications.

- 8 2006/07onwards

Non-cashable Efficiency Savings – GershonMapping Services agreementThe county council has participated in the mapping services agreement negotiated by IDeA which has resulted in the costs being significantly lower than they would have been had we sought to negotiate separately.

- 160 2006/07onwards

Freedom of Information ActThe introduction of the requirements of the Freedom of Information Act from January 2005 has resulted in additional work for staff which has been absorbed without extra resources being made available.

- 20 2006/07onwards

CMS staff savingThe CMS, working in partnership with Groundwork Hertfordshire are piloting a Green Apprenticeship Scheme. This will provide valuable experience and training for the apprentices on a non-paid voluntary basis and assist in meeting the objectives of the CMS at no additional cost to the authority.

- 20- 20

2006/072007/08

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PORTFOLIO: RESOURCES (Corporate Services)


Chief Officers/Heads of Function: Caroline Tapster, Chief Executive (01992 555600) Andrew Laycock, County Secretary (01992 555500)Chris Sweeney, Finance Director (01992 555304)Alan Warner, Corporate Director, People & Property (01992 556650)Geoff Brown, Head of Performance Improvement (01992 555370)Andrew Robertson, Director of Commercial Services & Information (01992 555609)

Contacts for queries: Tolu Cliffe (01992 555391)Matthew Buckland (01992 555387)Alison Cannur (01992 555457)




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APPENDIX 5A

COMMENTARY

1.1 This Appendix outlines details of the proposals for a revenue budget of £9.707 million, (excluding Capital Charges and the FRS17 Pension adjustment).


£’0002006/07 Gershon Savings 136


Total 427

1.3 In addition to the cashable efficiencies, a further £26,000 of non-cashable efficiency savings have been identified and these are detailed in appendix 5D.

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APPENDIX 5B


RESOURCES

2006/07 £’000

2007/08£’000

2008/09£’000

2009/10£’000

2005/06 Original Budget 11,584 11,584 11,584 11,584Technical Adjustments 2005/06 (684) (684) (684) (684)2005/06 Adjusted Budget 10,900 10,900 10,900 10,900Technical Adjustments 2006/07 (1,821) (1,821) (1,821) (1,821)Inflation 397 397 397 397Pressures for Change:Other Pressuresa) Business Rates 181 204 216 216b) LGPS employer’s contributions 99 200 278 451c) Revenue Effects of Telecomms 34 46 66 87d) Capital Payback 81 81 (3) (3)e) BVPI survey 45 0 0 48f) ICT Infrastructure upgrades 154 154 154 154g) Members Broadband 64 64 64 64

Cashable Efficiency SavingsGershon:

a) Printing and Postage (6) (6) (6) (6)b) Reduction in use of external

consultants (8) (8) (8) (8)c) Reorganisation within Corporate

Services (58) (58) (58) (58)d) Internal Audit (5) (5) (5) (5)e) Information Technology (24) (24) (24) (24)f) Manpower contract (27) (27) (27) (27)h) Employer’s liability insurance (8) (10) (10) (10)Other:i) Staff Housing (10) (10) (10) (10)j) Land Charges (10) (10) (10) (10)k) SERMU (10) (10) (10) (10)l) Audit Fees (80) (80) (80) (80)m) Bank Charges (60) (60) (60) (60)n) Other (121) (121) (121) (121)


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APPENDIX 5C



+ 181 2006/07+ 204 2007/08+ 216 2008/09+ 216 2009/10


+ 99+200+278+451

2006/072007/082008/092009/10

c) Revenue Effects of TelecommsThese are the authority’s total revenue consequences of undertaking corporate, telecommunications capital works.

+ 34 2006/07 + 46 2007/08+ 66 2008/09

+ 87 2009/10

d) Capital PaybackPayback associated with the general capital programme.

+ 81 2006/07+ 81 2007/08

- 3 2008/09- 3 2009/10

e) BVPI SurveyBVPI survey is a triennial statutory survey led by ODPM. The £45,000 will be used to engage in a more detailed face to face survey, as in 2003/04. This will ensure consistency and accuracy of data.

+ 45 2006/07Nil 2007/08Nil 2008/09

+ 48 2009/10

f) ICT Infrastructure UpgradesRecent government legislation/ guidance requires the authority to implement electronic social care records. In order to support this, the technical IT platform will need to be upgraded. The revenue effect of this will be £154,000.

+ 154 2006/07 onwards

g) Members BroadbandThe annual cost of the contracted managed broadband service to member’s homes.

+ 64 2006/07onwards

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APPENDIX 5 D

SAVINGS £’000

Cashable Efficiency Savings – Gershona) Printing and Postage Across corporate services there will be greater use of emails, second class post and the internet, to reduce printing and postage costs.

- 6 2006/07onwards

b) Reduction in use of external consultantsSavings will be made by using internal trained staff, rather than external consultants, where appropriate within Corporate Services.

- 8 2006/07onwards

c) Reorganisation within Corporate ServicesSavings will be made through a combination of reorganisation and a review of roles, within Corporate Services.

- 58 2006/07onwards

d) Internal AuditThe saving will be achieved from additional income and reduced audit costs generated by the Galileo system.

- 5 2006/07onwards

e) Information TechnologySavings will be made through reductions in the prices of projects / consultancy as well as IT equipment. Efficiencies will be achieved as new infrastructure becomes more standards based.

- 24 2006/07onwards

f) Manpower Contract HR savings from the implementation of the new Manpower contract including advertising initiatives. The final figure is being agreed with Corporate HR.

- 27 2006/07onwards

h) Employer’s liability insuranceThe actuaries have reviewed the number and value of claims likely to be successful against the Council. Their estimate of the value of employer liability claims is lower than it was the year before, due to improved risk management in the authority. This will result in lower charges to services for insurance.

- 8 2006/07- 10 2007/08

onwards

Cashable Efficiency Savings - Otheri) Staff Housing A significant demand from HCC employees for assistance with the direct provision of housing accommodation has resulted in a reduced level of voids in the Staff Housing Pool. In addition, some properties have been added to the pool. The two factors combined have created a surplus.

- 10 2006/07onwards

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SAVINGS £’000j) Land ChargesThe section has taken on additional work from the Highways Agency, this alongside increased computerisation, will generate more income.

- 10 2006/07onwards

k) SERMUThe saving will be taken from the Risk Management fund.

- 10 2006/07onwards

l) Audit FeesA change in audit fee charging has resulted in a saving.

- 80 2006/07onwards

m) Bank Charges A scrutiny of bank charges has identified that savings can be found.

- 60 2006/07onwards

n) Corporate Services Efficiency Savings achieved across corporate services from non-front line budgets.

- 121 2006/07onwards

Non-cashable Efficiency Savings - OtherScrutinyThe creation of the Scrutiny Officer post has given scope for activities currently covered by external providers to be taken in-house.

- 7 2006/07onwards

County SecretaryThe department have met the workload demands generated by the Freedom of Information Act within existing resources.

- 14 2006/07onwards

SERMURenegotiation of the insurance claims handling service will result in an additional £5,000 worth of risk management consultancy being available to support risk management initiatives.

- 5 2006/07onwards

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· web view2006/02/07 · this is part of the new model for homecare and the pilot indicated that...

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