Your council tax explained 2014/15 The council budget for 2014/15 Herefordshire Council is responsible Service pressures The deteriorating state of the roads is for delivering many different services Herefordshire Council is not a well- also a priority. The capital programme to our local communities, such as resourced council. Government grants for 2014/15 includes an additional £15 children’s education, support to attempt to make allowances for the million to be spent on road vulnerable and elderly residents, additional burden and complexity of improvements (with a further £5 million maintenance of parks and open delivering services in a sparsely budgeted to be spent in 2015/16). The spaces, highway repairs, domestic populated area but underestimate the improvements will reduce the need to waste collection, libraries and trading additional costs involved. spend on maintenance in the future. standards. Herefordshire’s residents are scattered The weak economy continues to have a 2014/15 will be another challenging across its 842 square miles with more direct impact on income from planning year with government funding being than half living in rural areas. and parking fees and on the level of reduced by a further £6.5 million Herefordshire also has an ageing demand for some services. (with a further £9 million being cut population. The number of people the year after). over the age of 65 is increasing both Reducing costs in number and in proportion to the Due to reduced government funding, rest of the county’s population. In together with increasing costs and 2014 the number is demand for services, the council will estimated to be need to save an additional £33 million 44,700 and nearly by 2016/17. In order to achieve this one-quarter of the target the council must make savings of total population. £15 million in 2014/15 (with a further Demand for services £18 million of savings over 2015/16 and has grown not only in 2016/17). the area of adult Of the £15 million of savings, over £10 social care but also in million of these, or approximately 65%, other essential areas relate to efficiency savings achieved such as children’s through reviewing how services can safeguarding. best be delivered and by renegotiating contracts. 2 However, opportunities to make independent lives; and invest in n Invested £10 million, match funded efficiency savings reduce every year projects to improve roads, create jobs by government, to ensure that and because of budget pressures, the and build more homes. every property in the county has council is no longer able to pay for all To continue to fund these priority access to faster broadband the services it has traditionally services, the council will have to provided. reduce or stop the funding of other In addition the council is looking to The council is working with parish services. increase its income in 2014/15 by councils and communities to enable reviewing the amounts charged for some them to deliver services for Increasing income services. This includes introducing and themselves. We already have thriving In order to balance the budget and increasing parking charges to promote and successful community projects support key services, the council other transportation methods and running shops, libraries and museums needs to attract new businesses into charging for social care services in line and providing community toilets. the county, along with increasing the with the council’s fairer charging policy. Within the resources available, the number of council tax payers through Council tax receipts will also increase due council’s priorities are to keep new housing. The council has to the council reducing or removing the children and young people safe and already: availability of some discounts. give them a great start in life; enable n Attracted £90 million of private residents to live safe, healthy and investment in the Old Livestock Listening to your views Market. Debenhams, Waitrose, a A budget consultation towards the end six-screen cinema along with a host of last year sought the views of local of other shops and restaurants will residents, businesses and parish councils open this year to find out what is important to those n Obtained Enterprise Zone status for living and working in Herefordshire. 72 hectares of land located at More than 700 responses were received Rotherwas which helped us identify our priorities n Built the first new pedestrian and and will continue to be used as we take cycle bridge across the River Wye decisions over the coming year. for over a hundred years, making it easier for people to access the Rotherwas Enterprise Zone from the city centre 3 About your council tax The following pages show how your Budget changes £million are provided, however, some savings council tax for 2014/15 is calculated and 2013/14 Net budget 150 relate to reduced service provision how it will be used to support the Inflation 3 many services the council provides. Also n Due to continuing funding cuts the included are explanatory notes for the Capital financing costs 1 council is no longer able to pay for council tax demand notice. Net service pressures 7 all the services it has traditionally Contingency 1 provided and must prioritise services n Your council tax makes an important Efficiencies and savings (15) contribution to the funding of n Excluding committed funds (such as Grants (3) Herefordshire Council, your town or school funding, servicing debt and parish council and the police and Reserves movement 2 the waste PFI contract) of the fire authority, all of whom provide 2014/15 Net budget 146 remaining budget nearly 70% is services to the people of spent on providing statutory services Herefordshire million. This amount funds special to support adults and children’s educational needs, nurseries and wellbeing and demand for these n The council’s net budget for 2014/15 early years services and amounts services is rising rapidly is £146.1 million and changes from delegated to county schools last year’s budget are shown in the n The budget proposals result in a following table n This year’s budget includes service Band D council tax charge of pressures of £7.3 million. This £1,251.32 a below inflation increase n The net budget comprises total gross includes an additional £5.3 million of 1.90%. The council rejected the expenditure of £329 million less for adult social care and a further government’s council tax freeze income and specific government £0.5 million for safeguarding grant (equivalent to a 1% increase grants, such as Dedicated Schools children in council tax) because of service Grant pressures n The budget also includes savings of n The Dedicated Schools Grant for £15.4 million. Most of these savings 2014/15, excluding amounts going relate to efficiency savings derived directly to academy schools, is £75.4 from changing the way that services 4 How will the money be spent? Gross Net expenditure Income expenditure Funding 2014/15 Service requirements: £'000 £'000 £'000 Met from % £’000 Adult social care 66,778 14,664 52,114 Herefordshire Children and young people’s services 109,041 82,429 26,612 Council’s 55.6 . 8 1 , 2 6 3 Public health 8,109 7,970 139 council tax charge Business rates and Waste collection and disposal 15,820 2,266 13,554 19.9 . 2 9 , 0 6 0 Cultural and community services (including rates top-up leisure, parks and libraries) 7,531 3,038 4,493 Revenue Support 24.5 . 3 5 , 8 1 2 Highways and transportation 14,371 4,892 9,479 Grant Environmental health, licensing and trading 2014/15 Net budget 100.0 .. 146,135 standards 2,202 912 1,290 Planning 2,311 1,558 753 Housing and independent living 3,706 887 2,819 Economic and community regeneration 2,202 369 1,833 Corporate (including support services 20,838 5,925 14,913 and property) Costs of council tax and benefit administration 52,631 52,199 432 Capital financing costs 16,305 430 15,875 Contingency and centrally held budgets 3,345 0 3,345 Reserves movement 3,580 0 3,580 General grants 289 5,385 (5,096) Total budget 329,059 182,924 146,135 5 How is the council tax bill calculated? 2013/14 2014/15 2014/15 2014/15 Amount per Amount per Total Total Band D property person . £000’s £000’s £ £ Total budget requirement 150,296 146,135 2,250.24 783.99 (before parish or town councils) Add: Collection fund deficit 761 , - - - Less: Business rates (22,726) (22,374) (344.52) (120.03) Business rates top-up (6,559) (6,686) (102.96) (35.87) Formula grant (42,861) (35,812) (551.44) (192.12) Herefordshire Council’s charge 78,911 81,263 1,251.32 435.97 Add: Parish and town councils’ charge 2,499 2,838 43.70 15.22 Hereford & Worcester Fire and Rescue Authority 4,732 4,875 75.06 26.15 Office of the Police and Crime Commissioner for West Mercia 11,485 11,837 182.28 63.51 Council tax 97,647 100,813 1,552.36 540.85 The net expenditure is divided by the tax base of 64,942 (the number of chargeable homes in Herefordshire calculated as if all were in Band D). This gives a basic charge of £1,251.32. The amount of the bill will vary once the police and fire authority charges are added and also the individual parish or town council charge is added; these amounts are shown on your bill. It will also vary if your home is other than Band D.