Archived decisions


	Hampshire County Council
	Cabinet		Item 11
	21 May 2007
	2007/08 Savings Plans
	Report of the County Treasurer

Contact: Nick Gibbins, (01962) 84 7544; [email protected]

1 Introduction

1.1 In preparing revenue budgets for 2007/08, services were required to identify savings and redeployments of £21.4m in order to offset unavoidable pressures for additional spending and to meet savings targets reflected in service budget guidelines. £2.5m of redeployments involved the use of earmarked reserves or the allocation of contingency sums, leaving savings of £18.9m that need to be planned and monitored. This report reviews the progress in developing and implementing plans to achieve the savings.

1 Recommendations

1.1 To note the progress that has been achieved in planning budget savings in 2007/08, with further monitoring reports being presented on a quarterly basis.

2 2007/08 Savings Plans

2.1 The appendix to the report summarises progress in achieving budget savings in 2007/08. It identifies whether or not the savings have already been achieved and if not what progress has been made in planning for their achievement. Finally, there is an assessment of the extent to which, based on the evidence currently available, the savings are likely to be achieved in 2007/08.

2.2 The table below summarises progress to date:

	Savings achieved	Savings for which plans in place and expected to be achieved	Other savings expected to be achieved	Savings options still being developed	Alternative savings likely to be required	Total
	£000	£000	£000	£000	£000	£000
Adults	-¹	11,214	-	-	1,864	13,078
Children's	1,033	-	340	820	135	2,328
Environment	942	-	-	694	-	1,636
Policy and Resources	15	595	-	-	-	610
Recreation and Heritage	89	1,155	-	-	-	1,244
	2,079	12,964	340	1,514	1,999	18,896

¹ some savings proposals partially achieved but not yet quantified.

2.3 Satisfactory progress has been made in implementing savings plans, with savings already achieved or planned and expected to be achieved for £15.0 m (80%) of the overall programme of savings. Only a minority of the savings proposals, £2.0m (11%) are not expected to be achieved and alternative savings are being identified. Further work is required to develop savings plans covering £1.5m (8%) of the overall savings. This includes the proposed savings of £0.7m in bus subsidies, a significant part of which is to cover potential higher costs arising from retendering and deregistration of services, so that the scale of the savings required is dependant upon the extent of the cost increases which arise during the year.

This proposal is linked to outcomes 1 and 2 of the Corporate Management Plan relating to the achievment of value for money and ensuring that resources follow priorities.

Section 100 D - :Local Government Act 1972 - background documents

The following documents discuss facts or matters on which this report, or an important part of it, is based and have been relied upon to a material extent in the preparation of this report.

NB: the list excludes:

1. Published works

2. Documents which disclose exempt or confidential information as defined in the Act.

2007/08 SAVINGS PROPOSALS
Service and Proposal	£000	Has saving already been achieved? (Yes or No)	If saving not yet fully achieved, is there a detailed implementation plan in place, containing actions, responsibility and timings? ( Yes or No)	Comments on progress in implementing plan or if no plan any other evidence of progress in achieving savings	Savings for which you consider there is firm evidence of likely achievement £000

ADULT SERVICES
a) Financial Recovery Plan
Review and modernisation of services to:
People with learning disabilities	1030	No	Yes	Savings on in-house residential services and commissioned day services won't now be achieved, therefore the target for reduction of high cost placements has been increased. Lists of placements, contracts and individuals to be reviewed has been drawn up.	1200
People with physical disabilities	845	Partially achieved.	Yes	Reviews are underway to ensure clients meet the eligibility criteria and the care packages are appropriate to meet the clients needs. There is a established process for pursuing Continuing Care Funding.	820
Older people	4188	Partially achieved	Yes	Delays in recruitment has had an impact on the numbers of admissions into in-house nursing homes, which may impact on the anticipated reduction in purchasing costs. A phased approach to admissions has been implemented and high occupancy levels are being maintained in all homes. Reviews are underway to ensure services are provided only to those meeting the eligibility criteria and care packages are being reviewed on a rolling programme to ensure they meet the clients needs. The reprovisioning programme is running in line with scheduled timescales A business case is in development for Extra Care Housing Day Services - Programme of reprovision for services in line with the Wellbeing Agenda is being implemented.	3392
Additional income from revised non-residential charging policy	3280	Partially achieved	Yes	As a result of changes to the charging policy, additional income is being realised	2500
b) Other efficiency savings
Purchased residential and day care for older people	1618	No	Yes	Home Care Modernisation - new implementation time scale of 18 months has been proposed and now involves appointing existing staff to the Re-enablement Service or Peripatetic Service, helping to avoid use of agency workers and reduce overtime costs. Phases 1 & 2 of the restructure have been successfully completed, with all new management appointments formally in post as of 1^st April. Detailed design and planning is underway for the restructure of the Wellbeing & Community Teams. The additional residential beds that are available now that the ENHANCE project has been completed are reporting high occupancy levels.	1570
Purchased residential and other care for people with physical disabilities	235	Partially achieved	Yes	Contract terminated for the OT Resource Centre. Move from residential care to supported living - Clients are being reviewed to identify those who would benefit most from a supported living package.	235
More effective procurement of services to:
People with learning disabilities	190	No	Yes	Residential Care Brokers are now in post and working to ensure that commissioned care provides value for money. Move from residential care to supported living - Clients are being reviewed to identify those who would benefit most from a supported living package	190
People with mental health needs	172	Partially achieved	Yes	Contracts in the process of being reviewed.	172
Staffing efficiencies for older people	300	Partially achieved	Yes	Enhancements paid to staff are now consistent with the departments employment terms and conditions.	300
Pay and benefits realisation for financial services	30	No	Yes	Part of the restructure process to take place during this financial year	30
More efficient assessment, commissioning and procurement - all client groups	500	No	Yes	Report received from PBRS with some anticipated savings for Domiciliary Care for Older People which is being examined by Adult Services	500
c) Other
Further service reductions for day and other care services to people with learning disabilities	260	Partially achieved	Yes	Service reductions for day care are now not achievable, therefore the target for reducing high cost placements has been increased to reflect this. The contact for SCIL has now been terminated.	10
Increased income over and above inflation	430	Partially achieved	Yes	The in-house nursing sector are recruiting to a part-time post to work on the project to provide 20 Continuing Care beds.	295
	13078				11,214
CHILDREN'S SERVICES
LEA
Youth support services	100	No	No	Support Service Review started - unlikely to achieve full £100k in 2007/08	0
Pay and benefits realisation for financial services	8	Yes	N/A	Budget allocation for CSDFU recharge reduced	8
Duke of Edinburgh Awards	60	No	No	Offsetting saving to be identified	0
Trailblazer	17	Yes	N/A	Budget reduced but £20k made available from 2007/08 School Development Grant	17
Family group conferences	30	No	No	See also £70k under social care.	0
Core funding - study centres	95	Yes	N/A	Leader has agreed to meet funding from P&R budget in 2007/08	95
Core funding - HIAS	225	Yes	N/A	Core funding reduced	225
Grants to youth organisations	20	No	N/A	Budget allocation for Youth Service grants reduced. Review to be undertaken	20
Denominational transport	25	Yes	N/A	Eligibility criteria for access to free transport for pupils starting denominational schools altered with effect from September 2006	25
Interest on Schools' balances	100	No	No	Detailed plan not required - reflects level of balances and increase in interest rates, which will be monitored.	100
Community Education	300	Yes	N/A	Community subsidies ceased, no inflation added to community school charges	300
SOCIAL CARE
Training	120	Yes	N/A	Funding to be met from LPSA1 Reward Grant	120
Market supplements - North/South equalisation	180	Yes	N/A	Market supplements in the north of the county reduced w.e.f. 1/1/07	180
Teenage pregnancy	125	No	No		100
Contract support	50	No	No	Temporary post funded from LPSA1 reward grant is planned to identify savings	0
Discontinuation of 24 hour legal cover	24	Yes	N/A	Agreement with Chief Executives Department altered to more accurately reflect usage	24
Pay and benefits restructuring	320	No	No	Restructuring has achieved part of savings. Balance achieved by top-slicing but savings to be sought.	70
Savings from investment of PSA reward grant in fostering services	300	No	No	Being offset against growth allowed. To be monitored	0
Regional fostering contract	100	No	No	Monitoring of cost reductions following tendering exercise in place	0
Family group conferences	70	No	No	See also £30k under LEA. £50k shortfall -possible funding from Standards Fund	50
Children's social care grants	20	No	No		0
Earmarked grants savings	39	Yes	N/A	This is a net figure for 3 grants (Children's Fund -£115k, Youth Justice +£50k, CAMHS +£26k) - all planned changes	39
	2328				1373
ENVIRONMENT
Review of highway maintenance priorities	716	Yes		Savings of £480k to be achieved from reduced expenditure on columns replacement, on the basis that deferred work would be covered by the proposed future PFI project. Increased Government capital maintenance grant is available to offset the balance of the highways maintenance savings (£236k).	716
Savings in bus subsidies	694	No	No	Proposals for reductions in subsidised bus contracts are currently being developed, including weekday and Sunday evening services, together with other savings options to be implemented as part of the ongoing programme of Area transport reviews.	-
Savings in staff and supports costs:
Highways and transport	180	Yes		Savings in staff and other support costs have been achieved.	180
Planning and development	33	Yes		Savings in staff and other support costs have been achieved.	33
Waste management	13	Yes		Savings in staff and other support costs have been achieved.	13
	1636				942
POLICY AND RESOURCES
Chief Executive
Pay and benefits realisation	133	No	Yes	In budget plans.	133
Other savings	88	No	Yes	In budget plans for department	88
County Treasurer
Pay and benefits realisation	62	No	Yes	In budget plans for department	62
Other savings	22	No	Yes	In budget plans for department - top sliced from pay vote	22
Property, Business and Regulatory Services
Pay and benefits realisation	197	No	Yes	Administrative savings from co-location of Regulatory services staff being achieved together with administrative/ secretarial staffing reductions within property services	197
Other savings	93	No	Yes	IT and Travel plans in place to achieve savings	93
Audit fee	15	Yes		Savings achieved from reduced fees for auditing grant claims	15
	610				610
RECREATION AND HERITAGE
IT efficiencies and service reductions:
Libraries and information	636	No	Yes	Savings to be achieved through restructure of Library service	636
Museums and Archives	155	83.9 achieved	Yes	Savings to be achieved primarily through savings in expenditure on staffing.	155
Countryside	188	No	Yes	Savings to be achieved through increased grant income and savings in expenditure on staffing.	188
Arts, tourism, marketing and design	84	No	Yes	Savings to be achieved through additional sponsorship income and savings in expenditure on staffing	84
Sport and Community	79	No	Yes	Savings to be achieved through reductions of expenditure on supplies and services and savings in expenditure on staffing	79
Policy fund, Director and Business development	102	5 achieved	Yes	Savings to be achieved through proactive budget management.	102
	1244				1244

TOTAL	18,896				15,383

This content is archived

1 Introduction

1 Recommendations

2 2007/08 Savings Plans