Policy & Resources Cabinet Panel

Agenda Item No.

HERTFORDSHIRE COUNTY COUNCIL

POLICY & RESOURCES CABINET PANEL 4 FRIDAY 7 DECEMBER 2007 AT 10.00 AM

COUNTY COUNCIL STANDSTILL BUDGET 2008/09 TO 2011/12

Report of the Finance, Information and Commercial Services Director

Author: Chris Sweeney, Finance, Information and Commercial Services Director Tel: 01992 555304

Executive Member: David Lloyd

1. Purpose of the Report

1.1 To allow the Panel to consider cost pressures and efficiency savings relating to the revenue budget, the assumptions underlying the budget figures and capital programme bids and make recommendations/ comments as appropriate.

1.2 Service Cabinet Panels will consider the standstill budget position, capital programme bids and strategic compasses for the service, between the 8th and 16th January 2008. There will be an opportunity for Policy and Resources Cabinet Panel on 17th January to review the comments made by Service Panels as well as to review the Corporate Services budget. Any comments/recommendations will be considered by Cabinet on 4th February 2008, along with the latest information on resources and the outstanding uncertainties. At its meeting on 4th February Cabinet will make its budget proposals. These will then be considered by each of the service panels, following which Resources Scrutiny Committee on 14th February will make consolidated comments to Cabinet. Policy and Resources Cabinet Panel on 14th February will then consider any further comment from service panels or Resources Scrutiny Committee and make recommendations to Cabinet. Cabinet on 18th February will recommend a budget to Council. The County Council will agree the budget and council tax level on 26th February.

1 0ea2fce3a5f8edcdc26283d6c66b4ccd.doc 2. Summary

2.1 Appendices 1 to 5 outline the inflation and cost pressures facing each service in 2008/09 and in the medium term. This gives rise to a 2008/09 standstill revenue budget after efficiency savings of £630.816 million (excluding capital charges and the FRS17 pension adjustment). The expenditure figures presented in this report assume that the proposed schools budget is set at the level of the Government’s Dedicated Schools Grant allocation for Hertfodshire.

2.2 The cashable efficiency savings which have been identified by Executive Members and Chief Officers are summarised below with further details provided in Appendices 1 to 5.

£’000 Cashable Efficiency Savings FYE of Previous Efficiencies 4,225 2008/09 Gershon Savings 9,809 2008/09 Other Savings 3,974 Total 18,008

2.3 Several areas of uncertainty remain and these are outlined in section 5 of the report. The Provisional Local Government Finance Settlement will be announced on 6th December and details will be presented to the Policy and Resources Panel at the meeting. The final figures for Formula Grant, the council tax base , the collection fund surplus and the flood defence levies are not expected to be finalised until late January/early February 2008.

2.4 The Government have stated that they expect the overall increases in council tax to be well under 5% in each of the next three years. However, the precise level at which a council would be capped is unclear.

2.5 Information relating to the capital programme, including all bids for capital expenditure and available capital resources is detailed within sections 10 to 12 of this report.

2.6 The budget process has been running alongside the service planning process and the public consultation. Information relating to this is provided in sections 2 and 14 of the report.

2 0ea2fce3a5f8edcdc26283d6c66b4ccd.doc 3. Conclusions

3.1 The Panel is invited to consider comments they may want to make to Cabinet on the standstill budget (including efficiency savings), underlying budget assumptions and capital programme bids.

3 0ea2fce3a5f8edcdc26283d6c66b4ccd.doc CONTENTS OF THE REPORT

Pages Section 1: Background 5 Section 2: Service Planning Process 5 Section 3: Revenue Expenditure Forecast 5 - 6 Section 4: Pay and Price Inflation 6 - 7 Section 5: Pressures for Change 7 - 8 Section 6: Uncertainties 8 Section 7: Efficiency Savings 8 - 9 Section 8: Revenue Resources 9 - 10 Section 9: Council Tax 10 - 11 Section 10: Capital Programme 11 - 12 Section 11: Capital Resources 12 - 13 Section 12: Capital Expenditure 14 Section 13: Reserves 14 Section 14: Public and Stakeholder Consultation 14

Appendix 1 Adult Care Services Standstill Revenue Budget 15 - 24 2008/09 – 2011/12 Appendix 2 Community Safety Standstill Revenue Budget 25 - 37 2008/09 – 2011/12 Appendix 3 Children, Schools & Families Standstill Revenue 39 - 62 Budget 2008/09 – 2011/12 Appendix 4 Corporate Services Standstill Revenue Budget 63 - 67 2008/09 – 2011/12 Appendix 5 Environment Standstill Revenue Budget 69 - 78 2008/09 – 2011/12 Appendix 6 2008/09 Standstill Budget - Movement 79 Statement by Service Appendix 7 Pressures for Change 2008/09 81 - 82 Appendix 8 Efficiency Savings 2008/09 83 - 85 Appendix 9 Capital Bids Submitted by Services 87 - 97 Appendix 10 Glossary of Terms 97 - 103

4 0ea2fce3a5f8edcdc26283d6c66b4ccd.doc 1. Background

1.1 This report provides the latest information on the standstill budget, capital programme bids and projections of resources over the next four years for consideration by the Policy and Resources Cabinet Panel.

2. Service planning process

2.1 Services have, as with previous years, worked up strategic compasses for their key service areas, making links to the Challenges. Copies of the individual strategic compasses will be considered by service panels between the 8th and 16th January 2008.

2.2 The strategic compasses include key national performance indicators and unit cost data, and illustrate where services see themselves to be currently positioned by marking their position on a grid of performance against cost, and indicating their direction of travel.

2.3 Services also identify on these strategic compasses, where they want to be in three years time and have presented the results to Executive members in the Autumn to help them determine a budget strategy aligned with the agreed service outcomes and priorities.

3. Revenue Expenditure Forecast

3.1 It is estimated that the Council will need to spend £630.8 million in 2008/09 for a budget with all services at standstill and taking account of efficiency savings.

3.2 A movement statement showing the analysis of the movement from the 2007/08 original budget over the years 2008/09 to 2011/12 is shown in the table below and an analysis of the resultant budget by service is shown at Appendix 6.

5 0ea2fce3a5f8edcdc26283d6c66b4ccd.doc Movement Statement

2008/09 2009/10 2010/11 2011/12 £m £m £m £m

2007/08 Original Budget 613.3 613.3 613.3 613.3

Less one-off highways funding (10.0) (10.0) (10.0) (10.0) 603.3 603.3 603.3 603.3

Technical Adjustments 0.4 0.6 0.6 0.6

Inflation 19.3 38.8 58.3 77.8

Base Budget 623.0 642.7 662.2 681.7

Pressures for Change Previous Policy Decisions (0.1) (0.4) (0.8) (0.8) Full Year effect of previous efficiencies (4.2) (6.2) (6.8) (7.4) Demography 12.8 20.2 27.7 35.2 Legislative Changes 5.2 8.3 8.3 8.3 Other Pressures 7.9 21.9 36.0 46.9 Total Pressures for Change 21.6 43.8 64.4 82.2

New Efficiency Savings (13.8) (14.2) (14.2) (14.2)

STANDSTILL BUDGET 630.8 672.3 712.4 749.7

3.3 This represents a spending increase of 4.5% on last year’s budget adjusted for changes in function and funding.

3.4 The service budgets shown in Appendices 1 – 5 do not include the movements in the allocation of overheads, capital charges, or the FRS 17 Pension adjustments. These adjustments do not affect the council’s bottom-line budget or impact on council tax and will be made in the budget report to Cabinet in February 2008.

4. Pay and Price Inflation

4.1 The government expenditure allocations are at 2008/09 outturn prices and to be comparable the spending forecasts need to include inflation for pay and prices.

6 0ea2fce3a5f8edcdc26283d6c66b4ccd.doc 4.2 It is estimated that inflation for pay and prices will cost £19.3 million in 2008/09, £6.4 million for pay, and £12.9 million for prices. This incorporates specific inflation rates for utility and contract related spend where more relevant inflation factors are available and increases in fees and charges where these are above standard inflation, including bus fares in line with the market and Savercard charges.

4.3 The pay inflation projection takes into account the full year effect of the 2007/08 pay awards. A projected pay award for 2008/09 of 2.5% is included for all pay groups. A 1% variation in the pay award for all pay groups from the 2.5% increase budgeted for would have a £2.5 million impact on costs in 2008/09.

5. Pressures for Change

5.1 The cost of pressures for change reflect the additional expenditure required to continue to deliver the same level of service on the same basis as the previous year and to meet new responsibilities. Pressures for change have been estimated at £21.6 million (including the full year effects of committed efficiency savings) in 2008/09, rising to £82.2 million by 2011/12. Details of pressures are shown by service in Appendices 1-5 and a summary is provided at Appendix 7.

5.2 The components of the 2008/09 pressures are shown in the table on the previous page. Demographic pressures include increases in:

 elderly client numbers at a cost of £3.2 million  learning disability client numbers at a cost of £2.7 million  physical disabilities client numbers at a cost of £0.9 million  mental health client numbers at a cost of £0.8 million  eligible children with disabilities numbers at a cost of £1.8 million  an increase in the number of independent placements within children’s services at a cost of £3.2 million.

5.3 The implementation of new legislation and regulations is estimated to produce an increase in costs of £5.2 million in 2008/09, rising to £8.3 million from 2009/10 onwards. The main reason for this is the increase in landfill tax (£3.6 million).

7 0ea2fce3a5f8edcdc26283d6c66b4ccd.doc 5.4 Other pressures will cost an additional £8.0 million in 2008/09, rising to £46.9 million in 2011/12. These pressures include replacing the £2.7 million of LPSA1 Reward Grant which was used to support the 2006/07 and 2007/08 budget, capital financing costs, increased SEN home to school transport costs, employer’s pension contributions, capital payback, interest on balances and the cost of supporting people services that will be ineligible for specific grant.

6. Uncertainties

6.1 At this stage a number of uncertainties are still remaining which could potentially increase costs including contracts and litigation, demand led budgets and the deliverability of efficiency savings. An assessment of risks and reserves will be presented to Cabinet on 4th February for consideration as part of the final budget setting process.

6.2 The budget includes in its base a special provision for uncertainties of £9.0 million.

6.3 In addition there are also a number of other items where further information is awaited and which will impact on the budget process. These include:-

 Collection Fund and taxbase – these figures will be known by the end of January.

 Local Government Finance Settlement – the provisional settlement will be announced on 6th December. Following the Department of Communities and Local Government’s (DCLG) consultation period the provisional Formula Grant figure may change. The final settlement is expected at the end of January/early February.

7. Efficiency Savings

7.1 The DCLG have set a cashable efficiency savings target of 3% per annum for the years 2008/09 to 2010/11 for the public sector overall. Individual authorities will no longer have an efficiency target unless agreed as one of the Local Area Agreement targets. However, they must notify the DCLG of the planned savings for the year and the actual amount achieved. Where poor performance in generating efficiency savings is identified the local Government Office will discuss the reasons with the authority.

8 0ea2fce3a5f8edcdc26283d6c66b4ccd.doc 7.2 3% efficiency savings for Hertfordshire County Council’s (excluding schools and Fire and Rescue) would equate to around £20 million per annum. The Government has assumed 1.6% savings for the Fire and Rescue Service.

7.3 For 2008/09 Executive Members and Chief Officers have identified new cashable efficiency savings of £13.8 million, of which £9.8 million meet the “Gershon” criteria. The full year effects of previous efficiency savings total a further £4.2 million and have been included within the previous policy decisions category of pressures for change.

7.4 Future year’s budget projections in the report do not include any assumptions for any further new cashable efficiency savings from 2009/10 onwards.

7.5 Details of efficiency savings are shown by service in Appendices 1 - 5 and a summary is provided at Appendix 8.

8. Revenue Resources

8.1 In the Comprehensive Spending Review 2007 the Government announced that they would significantly reduce the level of ring-fenced grants by 2010/11. Grants previously ring-fenced will be delivered either as Formula Grant or a new un-ring-fenced Area Based Grant. The information presented in this report assumes that the Area Based Grant for 2008/09 will continue to be applied to services in the same way as in the current year. At its meeting on 17 January 2008 Policy and Resources Cabinet Panel will consider the budget process required in respect of Area Based Grant for 2009/10 and future years.

8.2 The provisional Local Government Finance Settlements for 2008/09, 2009/10 and 2010/11 will be announced on 6th December 2007. We are expecting to receive three year figures for Formula Grant, Area Based Grant and specific grants (except for those which are demand-led or performance related).

8.3 The methodology used to calculate the Formula Grant will incorporate any changes made following the Government’s autumn consultation on the Formula Grant distribution system.

9 0ea2fce3a5f8edcdc26283d6c66b4ccd.doc 8.4 In 2007/08 Hertfordshire received £150.436 million in Formula Grant. The following table shows the County Council’s estimated Formula Grant for 2008/09 and future years, based on estimated increases of 1% per annum.

2008/09 2009/10 2010/11 2011/12 £m £m £m £m

Projected Formula Grant 151.9 153.5 155.0 156.5

A 1% variance in the assumed increase would have a £1.5 million impact on the level of resources.

8.5 The above figures do not take account of any changes in function and funding. The impact of these will also need to be built into the expenditure projections after the provisional settlement is announced.

8.6 The budget figures in this report assume £0.5 million of Local Authority Business Growth Incentive grant (LABGI) will continue to be available to support the budget in 2008/09 and nil for 2009/10 onwards. There will be a new scheme in place from 2009/10, with a significant reduction in the amount of funding available for this initiative. It is too early to predict how much Hertfordshire County Council will receive under the new scheme although it is expected that the level of funding will drop significantly.

9. Council Tax

9.1 The level of Council Tax will be dependent on the proposals made by Cabinet on 4th February. On the basis of the resource projections detailed in section 8 a standstill budget would require a council tax increase of 4.9% in 2008/09, 7.8% in 2009/10 and 6.7% in 2010/11.

9.2 The Local Government Minister has the power to restrict (or cap) an authority if the budget requirement increase is deemed to be excessive. The provisions of the capping legislation also allows the Government to determine other principles, such as increases in council tax.

9.3 The Government does not specify the capping principles until after local authorities have set their budgets. If the authority were capped it may ultimately be required to set a reduced budget and re-bill council tax payers. This exercise could cost in excess of £1 million.

9.4 In the Comprehensive Spending Review 2007 the Government stated that they expect the overall increase in council tax increase to be well under 5% in each of the next three years.

10 0ea2fce3a5f8edcdc26283d6c66b4ccd.doc 9.5 In 2007/08 the Government did not cap any local authorities. The average council tax increase in 2007/08 was 4.2% for England and 4.4% for county councils. Hertfordshire County Council’s increase in 2007/08 was 5.0%

9.6 For 2008/09 to decrease council tax by 1% would require a £4.5 million reduction in spending.

9.7 In 2007/08 the County Council will receive a collection fund surplus of £3.1 million from the district councils. The level of the collection fund in 2008/09 will not be known until the end of January 2008. The level of the collection fund has a direct impact on the council tax increase. A variation of £455,000 on the collection fund surplus would have a 0.1% impact on the council tax in 2008/09.

10. Capital Programme

10.1 Under the current system for Local Government finance, authorities are able to consider revenue and capital proposals to meet corporate and service priorities alongside each other. The Council can make choices about the most cost effective method of financing the acquisition of buildings, vehicles and equipment without imposed constraints on access to capital resources. The Council is free to decide on the best solutions, having due regard to the impact of additional borrowing on council tax, and on the level of the authority’s external debt.

10.2 Government provides the ‘support’ for its supported borrowing allocations, for schools and transport programmes for example, in the form of revenue grant towards the cost of principal repayment and interest charges incurred by local authorities in servicing the loans. However, changes made by the Government to the revenue grant formula in 2006/07 means that floor authorities like Hertfordshire that receive the minimum revenue grant increase will see no benefit from additional Government supported borrowing allocations in terms of revenue grant. This is because the increase in the underlying formula for capital finance merely takes the authority closer to the floor for grant purposes. In other words, an increase in supported borrowing allocations does not translate into extra revenue grant.

10.3 This means that there is now a direct financial cost for Hertfordshire if the Council continues to invest in new capital projects at the levels suggested by the Government’s published ‘supported borrowing’ allocations for schools and transport. Because the capital financing costs of such ‘supported borrowing’ programmes must now be met from the Council’s own resources, all such schemes are now prioritised alongside all other schemes.

11 0ea2fce3a5f8edcdc26283d6c66b4ccd.doc 10.4 In setting its revenue and capital budgets for future years, the Council will have to review the prudential indicators that were agreed when the 2007/08 budget was approved. These indicators set out the incremental impact of our capital plans on council tax, the planned ratio of financing costs to total revenue expenditure, the planned capital financing requirement, and limits on the amount of external debt the Council will incur. Together with a range of decisions relating to the interest rate and maturity structure of borrowing, these indicators will be formalised in the Treasury Management Strategy and Prudential Code for Capital Finance report which will be considered when the budget is considered by cabinet and cabinet panels in February 2008.

10.5 To inform consideration of the appropriate level of capital programme investment over future years, the following sections provide information on the funding available from all sources and on the level of capital bids put forward by services.

11. Capital Resources

11.1 The latest estimate of capital resources to support the capital expenditure (including annual provisions) is outlined in the table below. These resource estimates include receipts, grants or third party contributions relating to all capital bids listed in Appendix 9, so the final total of capital grants or third party contributions that can support the programme depends on the nature and level of capital bids finally approved.

Latest Estimates of Capital Resources

2008/09 2009/10 2010/11 £’000 £’000 £’000

Capital Receipts 38,100 62,170 49,813 Capital Grants 41,865 36,795 35,231 Direct Revenue Contributions 2,570 2,634 2,700 Direct Revenue Contributions (from 9,840 10,086 10,338 schools budget) Capital Payback Contributions 6,307 6,363 6,215 Developers’ Contributions 2,385 390 Capital Resources (before 101,067 118,438 104,297 borrowing) Borrowing 30,309 24,889 25,000 Total Capital resources 131,376 143,327 129,297

12 0ea2fce3a5f8edcdc26283d6c66b4ccd.doc 11.2 The projections of available capital receipts shown in the table above are an estimate of the sustainable level of receipts that could be achieved over the period, based on the latest information about potential sales. These projections include receipts related to self financing schemes.

11.3 Capital grants relate to grant aided programmes within the schools, libraries and highways sectors. Grants include allocations for extended schools, ICT in schools, Devolved Formula Capital paid to schools, Local Transport Plan (LTP) grants, a lottery grant and other grants for major highways infrastructure projects. The projected figures for capital grants are substantially below the figures for 2007/08 because government support for both the Schools Modernisation Programme and LTP Highways Maintenance which were previously partly funded from grants are now to be entirely funded from supported borrowing. The change to supported borrowing for schools modernisation programme was signalled last year, but the change to LTP funding was only announced in late November 2007. Because the floor mechanism means that the council receives no benefit from supported borrowing allocations this change represents a loss of capital funding of £4.5 million for LTP highways maintenance, partly offset by an increase in grant support for integrated transport schemes of £0.8 million.

11.4 The council’s capital programme has always been partly financed through direct contributions from the revenue budget, and the revenue budget figures presented in this report assume that this level of revenue support for capital continues in future years.

11.5 Capital payback available to support the programme assumes that all payback from services relating to the agreed capital programme, up to and including the 2007/08 programme, are recycled into new capital investment.

11.6 Developers’ contributions are included in projected capital resources relating to a number of potential schemes. Work continues to improve arrangements for the management of available developer’s contributions to ensure that they are deployed as efficiently as possible to meet the requirements of individual agreements with developers and contribute to meeting council priorities.

11.7 As part of the council’s medium term financial strategy approved in February 2007 the council reduced its overall level of borrowing for 2007/08 and subsequent years. The borrowing projections contained in this report assume that borrowing in future years is as set out in the Medium Term Financial Strategy. The revenue budget takes into account financing costs of this projected borrowing. For illustration, if borrowing levels were varied by £10 million then this would lead to a variation in capital financing costs of £0.9 million in a full year.

13 0ea2fce3a5f8edcdc26283d6c66b4ccd.doc 12. Capital Expenditure

12.1 The total capital programme spending bids to be considered during this budget cycle amount to £428m over the next three years. This total includes committed schemes and all bids including those which are either totally or partially self financing from related receipts or external grants. The full list of all capital bids and a list of annual provisions is set out in Appendix 9. Business cases for schemes can be obtained by contacting Jenni Petanen in Corporate Finance (01992 555332).

13. Reserves

13.1 General reserves are currently projected to be £22.9 million by the start of April 2008, which is around £5 million above the current minimum prudent level. Budget monitoring for 2007/08 is suggesting that a further £5 million may be available by the year end.

13.2 A review of the adequacy of reserves taking into account the impact of the corporate risk analysis will be incorporated into the budget report to Cabinet on 4th February. This report will also provide information on specific reserves.

14. Public and Stakeholder Consultation

14.1 Since 2004, Hertfordshire County Council has commissioned an annual survey of residents which tracks results for a number of key issues of importance to the Council, including the Challenges. The initial top-line results are reported to the panel in agenda item 3, to help inform the decision-making and budget process.

14.2 Any further feedback from public or stakeholder consultation activity on budget priorities will be reported to members to enable these views to be taken into account.

Background information referred to by the author.

Hertfordshire County Council Medium Term Financial Strategy 2007/08 to 2010/11, February 2007.

2007 Pre- Budget Report and Comprehensive Spending Review: Meeting the Aspirations of the British People. H M Treasury, October 2007.

Delivering Value for Money in Local Government : Meeting the challenge of CSR07. Department for Communities and Local Government, October 2007.

14 0ea2fce3a5f8edcdc26283d6c66b4ccd.doc APPENDIX 1

PORTFOLIO: ADULT CARE SERVICES

STANDSTILL REVENUE BUDGET 2008/09 – 2011/12

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

Contact for queries: Ralph Paddock, Acting Assistant Director – Finance, Adult Care Services (01992 556365)

APPENDIX 1 – CONTENTS

A Commentary B Standstill Revenue Budget 2008/09 – 2011/12 and Movement from Current Year’s Budget C Pressures for Change & Savings

15 APPENDIX 1 A

COMMENTARY

1.1 This appendix outlines the inflation and cost pressures facing the service in 2008/09 and the medium term. This gives rise to a 2008/09 standstill budget for Adult Care Services, after efficiency savings, of £239.354 million (excluding capital charges and the FRS17 pension adjustment).

1.2 The cashable efficiency savings which have been identified by Executive Members and Chief Officers are summarised below with further details provided in Appendices 1B and 1C.

£’000 Cashable Efficiency Savings FYE of Previous Efficiencies 2,010 2008/09 Gershon Savings 6,210 2008/09 Other Savings 1,700 Total 9,920

16 APPENDIX 1 B

REVENUE BUDGET 2008/09 – 2010/11 AND MOVEMENT FROM CURRENT YEAR’S BUDGET ADULT CARE SERVICES

2008/09 2009/10 2010/11 2011/12 £’000 £’000 £’000 £’000 2007/08 Original Budget 231,895 231,895 231,895 231,895 Technical Adjustments 2007/08 (178) (178) (178) (178) 2007/08 Adjusted Budget 231,717 231,717 231,717 231,717 Technical Adjustments 2008/09 359 664 664 664 Inflation 8,263 16,526 24,789 33,052 Base Budget 240,339 248,907 257,170 265,433 Pressures for Change: FYE of Previous Efficiencies: (a) Individual budgets for Older People (500) (1,000) (1,000) (1,000) (b) Re-tendering Homecare Contract (630) (880) (880) (880) (Goldsborough) (c) Enabling Homecare (50) (50) (50) (50) (d) Individual banded budgets for (180) (360) (540) (720) Learning Disability Placements (e) Expert purchasing of care (500) (1,000) (1,250) (1,500) placements for Learning Disabilities (f) Increase Extra Care (100) (200) (300) (400) (g) Meals on Wheels – reconfiguration - (100) (100) (100) of service (h) Better procurement & individual (50) (100) (150) (200) budgets for Physical Disability Demography: (a) Elderly 3,215 6,430 9,645 12,860 (b) Learning Disability 2,709 5,077 7,406 9,769 (c) Physical Disability 854 1,708 2,563 3,417 (d) Mental Health 828 1,655 2,483 3,310 Legislative Changes: (a) Implementation of the Working Time 250 250 250 250 Directive in April 2007 Other Pressures: (a) Business Rates 4 6 6 6 (b) Local Government Pension Scheme 381 1,036 1,719 1,719 (c) Revenue Effects of Capital 287 391 464 464 (d) Revenue Effects of Telecomms 54 102 102 102 (e) Capital Payback 86 124 60 32 (f) Reduce EPD staffing compared with (400) (400) (400) (400) 2007/08 (g) Supporting People VFM and 667 1,334 2,000 2,000 ineligible services Total Pressures for Change 6,925 14,023 22,028 28,679

17 APPENDIX B (continued)

STANDSTILL BUDGET BEFORE 247,264 262,930 279,198 294,112 EFFICIENCIES Cashable Efficiency Savings - Gershon (a) Hertfordshire Partnership NHS Foundation Trust to absorb (1,000) (1,000) (1,000) (1,000) demographic pressures and make efficiencies (b) Restricting increases in fees paid to (2,500) (2,500) (2,500) (2,500) care providers (c) Review in house provision with high (350) (350) (350) (350) unit costs (d) Individual budgets for Older People (1,500) (1,500) (1,500) (1,500) (e) Reduction in CLDT staffing (60) (60) (60) (60) (f) Reconfiguration of external LD (500) (500) (500) (500) contracts (g) Savings on Strategic & Centre Units (300) (300) (300) (300) Total Cashable Efficiency Savings - (6,210) (6,210) (6,210) (6,210) Gershon Cashable Savings - Other (a) Continuing Care funding (1,000) (1,000) (1,000) (1,000) (b) Increase Charges for Non-residential Services to more closely reflect (700) (700) (700) (700) actual cost of the service provided Total Cashable Savings - Other (1,700) (1,700) (1,700) (1,700) STANSTILL BUDGET AFTER 239,354 255,020 271,288 286,202 EFFICIENCIES

18 APPENDIX 1 C PRESSURES FOR CHANGE

£’000

Full Year Effect of Previous Efficiencies

(a) Individual Budgets for Older People Savings will be achieved in 2008/09 from the introduction of - 500 2008/09 individual budgets for older people, however, the precise - 1,000 2009/10 size of the savings will not be known until further work has onwards been undertaken. Savings of £500,000 have been included in 2008/09 and £1m has been included in 2009/10 and subsequent years. (See Gershon cashable efficiency savings below which refers to further savings being achieved from the introduction of individual budgets).

(b) Re-tendering Homecare Contract (Goldsborough) Efficiencies will be achieved from 2008/09 onwards as a - 630 2008/09 result of re-tendering the homecare contract that had been - 880 2009/10 awarded to Leonard Cheshire in February 2000. onwards

(c) Enabling Homecare This relates to the pilot for the new model for homecare. - 50 2008/09 The pilot indicated that there would be an annual reduction onwards in costs, net of the enablement service, of an estimated £1,000 per client. The £1,000 could be increased by improved commissioning but reduced by a loss of charging income (approximately 15%). An estimated saving of £1,000 per client has therefore been assumed for the 50 clients within the pilot.

(d) Individual Banded Budgets for Learning Disability placements - 180 2008/09 Following the Care & Health Management Consultants’ - 360 2009/10 report on Learning Disability placements, individual budgets - 540 2010/11 will be applied to “client turnover”. - 720 2011/12

(e) Expert Purchasing of Care Placements for Learning Disability -500 2008/09 Expert purchasing of care placements for people with a -1,000 2009/10 Learning Disability will produce savings. Some savings will - 1,250 2010/11 be generated by reviewing the unit costs of existing clients. - 1,500 2011/12 However, the majority of the projected savings will be achieved by assessing the estimated cost of a new client based on their dependency level and then negotiating with providers to ensure that the cost of the placement is in line with the estimated cost.

(f) Increasing Extra Care An increase in the supply and use of extra care sheltered - 100 2008/09 housing rather than residential care will generate savings - 200 2009/10 estimated to be £5,000 per person per annum. - 300 2010/11 - 400 2011/12

19 APPENDIX 1 C (continued)

(g) Meals on Wheels A reconfiguration of the meals on wheels service across the nil 2008/09 county will result in a social enterprise organisation - 100 2009/10 providing the meals. Negotiations are progressing with onwards District / Borough Councils to take forward and implement the changes.

Efficiency savings that where expected to be achieved in 2008/09 will probably now not be achieved until 2009/10.

(h) Better procurement & Individual Budgets for Physical Disability - 50 2008/09 Savings will be generated by the better procurement and - 100 2009/10 setting of individual budgets for the physical disability client - 150 2010/11 group. A new commissioning strategy is being developed - 200 2011/12 and implemented. A pilot scheme to test the proposed model of individual budgets was set up on 1 October 2007.

Demography

(a) Elderly Around 50% on the ACS budget for older people is spent on + 3,215 2008/09 the 85 and over age group, 40% on the 75 to 84 age group + 6,430 2009/10 and 10% on the 65 to 74 age group. The projected + 9,645 2010/11 increases in the numbers in these age groups have been + 12,860 2011/12 used together with the estimated spends on these age groups to produce the year on year budget increases required to meet demographic pressures.

Also, based on the current numbers of assessments and reviews being undertaken there is a need for some additional funding. Comparing 2006/07 with 2005/06, the number of assessments and reviews increased by 3.1%.

(b) Learning Disability The demographic pressure estimates for the Learning + 2,709 2008/09 Disability client group are based on those calculated by + 5,077 2009/10 Care and Health Management Consultants in their report + 7,406 2010/11 Modelling of Demand and Future Costs. + 9,769 2011/12

( c) Physical Disability The projection for demographic pressures is based on the + 854 2008/09 increase in costs and numbers of clients (especially for + 1,708 2009/10 residential care) over the last few years. + 2,563 2010/11 + 3,417 2011/12

20 APPENDIX 1 C (continued) (d) Mental Health The projection for demographic pressures is based on the + 828 2008/09 increase in costs and numbers of clients (especially for + 1,655 2009/10 residential care) over the last few years. HPFT has assisted + 2,483 2010/11 in producing these estimates. + 3,310 2011/12

Legislative Changes

(a) Implementation of the Working Time Directive in April 2007 + 250 2008/09 The rate for a sleep in allowance increased by almost 56% onwards to £56.23 from April 2007. There are also budget implications from the introduction of leave entitlement and the payment for certain absences (sick, maternity etc.) in respect of sleep in allowances.

Other Pressures

(a) Business Rates This relates to the estimated additional costs arising from + 4 2008/09 the 2005 revaluation of property for rating purposes. + 6 2009/10 onwards

(b) LGPS Employers’ Contribution Estimated cost of the increase in employers’ contributions to + 381 2008/09 the local government pension scheme. + 1,036 2009/10 + 1,719 2010/11 onwards

(c) Revenue Effects of Capital These are the revenue consequences of undertaking capital + 287 2008/09 works within the agreed capital programme built into the + 391 2009/10 cash target. + 464 2010/11 onwards

(d) Revenue Effects of Telecomms The department’s share of the revenue consequences of + 54 2008/09 undertaking corporate telecommunications capital works + 102 2009/10 within the agreed capital programme and the onwards Telecommunications Infrastructure Fund.

(e) Capital Payback Payback associated with the Adult Care Services general + 86 2008/09 capital programme. + 124 2009/10 + 60 2010/11 + 32 2011/12

(f) Reduce Elderly & Physical Disability (EPD) staffing levels Reductions in the EPD staffing budgets will be achieved - 400 2008/09 compared with 2007/08 since it is considered that the onwards temporary teams that were needed to reduce the backlog and improve data accuracy will no longer be required. These functions will be undertaken by permanent staff.

21 APPENDIX 1 C (continued) (g) Supporting People VFM and Ineligible Services As a result of the Value for Money exercise that is being + 667 2008/09 undertaken in respect of Supporting People schemes, + 1,334 2009/10 services and parts of services are being identified that will + 2,000 2010/11 be ineligible for Supporting People’s specific grant. The total onwards of the ineligible services is estimated to be over £2m. These ineligible Supporting People costs will be offset by a combination of re-tendering existing services, terminating existing contracts and additional care costs being borne by Adult Care Services.

22 APPENDIX 1 C (continued)

SAVINGS

£’000

Cashable Efficiency Savings - Gershon

(a) HPFT to absorb demographic pressures and make efficiencies - 1,000 2008/09 Hertfordshire Partnership NHS Foundation Trust is being onwards expected to absorb the impact of demographic change and achieve efficiency savings on services for adults (18 to 64 year olds) with a Mental Health problem.

(b) Restricting the increases in fees paid to care providers This efficiency saving is based on the increases in fees to - 2,500 2008/09 be paid to care providers being around 1.5% less than the onwards inflationary pressures identified and the increase in fees requested by the Hertfordshire Care Providers Association (HCPA).

(c) Review in house provision with high unit costs Efficiency savings will be achieved by reviewing some of the - 350 2008/09 in house services, especially residential accommodation onwards and supported living facilities with comparatively high unit costs.

(d) Individual Budgets for Older People See above, under the section “full year effect of previous - 1,500 2008/09 efficiencies” which refers to savings being achieved from the onwards introduction of individual budgets. Savings will be achieved in 2008/09 from the introduction of individual budgets for older people. However, the precise size of the savings will not be known until more work has been undertaken. Further savings of £1.5m. have been included in 2008/09 and subsequent years and it is considered that these can be achieved by reviewing the Resource Allocation System (RAS). The RAS determines the amount of resources that an individual is allocated based on a completed questionnaire.

(e) Reduction in CLDT staffing A review of the level of Community Learning Disability Team - 60 2008/09 (CLDT) management and administrative support costs will onwards produce efficiency savings in 2008/09 and subsequent years.

23 D:\Docs\2018-05-09\0ea2fce3a5f8edcdc26283d6c66b4ccd.doc APPENDIX 1 C (continued) £’000

(f) Reconfiguration of external LD contracts A review of the external contracts (especially block - 500 2008/09 contracts) for people with a Learning Disability will produce onwards efficiency savings in 2008/09 and subsequent years. The number of voids that are currently being paid for will be reduced as a result of this review.

(g) Savings on Strategic & Centre Units A review of the staffing levels, especially within the Learning - 300 2008/09 and Development, Performance and Workforce onwards Development and Contracts sections should result in efficiency savings being achieved.

Cashable Efficiency Savings – Other

(a) Continuing Care funding Regular meetings / panels will take place with health - 1,000 2008/09 representatives to ensure that all clients, especially older onwards people and people with a Physical Disability receive Continuing Care funding where appropriate. Overall this will increase the level of contributions from health and reduce the amount required from Adult Care Services. An announcement was made recently by central government that the level of Continuing Care funding payable to the health economy would be increased in 2008/09.

( b) Increase charges for Non-Residential Services to more closely reflect actual cost of the service provided - 700 2008/09 Clients who are assessed as being full cost are charged at a onwards standard rate for both home care and day care services. However, the actual cost of the service provided is greater than the standard charge currently being made. By increasing the standard charge to more closely reflect the actual cost of providing the service will generate additional income.

24 D:\Docs\2018-05-09\0ea2fce3a5f8edcdc26283d6c66b4ccd.doc APPENDIX 2

PORTFOLIO: COMMUNITY SAFETY

APPENDIX 2 - CONTENTS

A Commentary B Fire and Rescue C Trading Standards D Crime and Drugs Strategy Unit E Coroners Service F Registration Service G Emergency Planning

25 D:\Docs\2018-05-09\0ea2fce3a5f8edcdc26283d6c66b4ccd.doc APPENDIX 2 A

COMMENTARY

1.1 Appendices 2B to 2G outline the inflation and cost pressures facing the Community Safety portfolio in 2008/09 and the medium term. This gives rise to 2008/09 standstill budgets after efficiency savings (excluding capital charges and the FRS17 pension adjustment) as follows:

£’000 Fire & Rescue 36,715 Trading Standards 3,065 Crime & Drugs Strategy Unit 2,265 Coroners Service 1,078 Registration Service 1,069 Emergency Planning 719 Total Community Safety 44,911

1.2 The cashable efficiency savings which have been identified by Executive Members and Chief Officers are summarised below with further details provided in Appendices 2B to 2G.

Crime & Drugs Fire & Trading Strategy Regist’n Emergency Rescue Standards Unit Coroners Service Planning £’000 £’000 £’000 £’000 £’000 £’000 FYE of Previous - - 200 - 28 - Efficiencies

2008/09 Gershon 250 - - - - 16 Savings

2008/09 Other - 15 - - - 5 Savings Total 250 15 200 - 28 21

26 D:\Docs\2018-05-09\0ea2fce3a5f8edcdc26283d6c66b4ccd.doc APPENDIX 2 B

REVENUE BUDGET 2008/09 – 2011/12 AND MOVEMENT FROM CURRENT YEAR’S BUDGET FIRE & RESCUE

Chief Fire Officer: Roy Wilsher (01992 507501) Contact for queries: Mark Yates (01992 507503)

2008/09 2009/10 2010/11 2011/12 £’000 £’000 £’000 £’000 2007/08 Original Budget 36,241 36,241 36,241 36,241 Technical Adjustments 2007/08 - - - - 2007/08 Adjusted Budget 36,241 36,241 36,241 36,241 Technical Adjustments 2008/09 - - - - Inflation 706 1,412 2,118 2,824 Base Budget 36,947 37,653 38,359 39,065 Pressures for Change: Other Pressures: (a) Business Rates (7) - - - (b) LGPS employer's contributions 27 75 125 125 (c) Capital Payback (2) (23) (107) (170) Total Pressures for Change 18 52 18 (45) STANDSTILL BUDGET BEFORE 36,965 37,705 38,377 39,020 EFFICIENCIES Cashable Savings - Gershon (a) Efficiency Savings to Various (250) (250) (250) (250) Budgets STANDSTILL BUDGET AFTER 36,715 37,455 38,127 38,770 EFFICIENCIES

PRESSURES FOR CHANGE £’000 Other Pressures

a) Business Rates -7 2008/09 This relates to the estimated additional costs arising from only the 2005 revaluation of property for rating purposes.

b) Local Government Pension Scheme +27 2008/09 Estimated cost of the increase in employer's contribution to +75 2009/10 the local government pension scheme. +125 2010/11 onwards

c) Capital Payback -2 2008/09 Payback associated with the capital programme. -23 2009/10 -107 2010/11 -170 2011/12

APPENDIX 2 B (continued) 27 D:\Docs\2018-05-09\0ea2fce3a5f8edcdc26283d6c66b4ccd.doc SAVINGS £’000

Cashable Efficiency Savings - Gershon a) Efficiency adjustments to various Budgets -250 2008/09 This level of savings can be created by more effectively onwards managing various budget headings.

28 D:\Docs\2018-05-09\0ea2fce3a5f8edcdc26283d6c66b4ccd.doc APPENDIX 2 C

REVENUE BUDGET 2008/09 – 2011/12 AND MOVEMENT FROM CURRENT YEAR’S BUDGET TRADING STANDARDS

Head of Trading Standards: Guy Pratt (01727 813849) Contact for queries: Tolu Cliffe (01992 555391)

2008/09 2009/10 2010/11 2011/12 £'000 £'000 £'000 £'000 2007/08 Original Budget 2,862 2,862 2,862 2,862 Technical Adjustments 2007/08 - - - - 2007/08 Adjusted Budget 2,862 2,862 2,862 2,862 Technical Adjustments 2008/09 - - - - Inflation 61 122 183 244 Base Budget 2,923 2,984 3,045 3,106 Pressures for Change: Legislative Changes: (a) Copyright, Designs and Patents Act 82 82 82 82 (b) Feed Hygiene Enforcement on farms 9 9 9 9 (c) Home Information Pack legislation 43 43 43 43 Other Pressures: (a) Revenue effects of telecoms 2 4 4 4 (b) Business Rates 1 1 1 1 (c) Updating IT for flexible working in line 4 4 4 4 with TW3 (d) LGPS employer's contributions 16 44 72 72 Total Pressures for Change 157 187 215 215 STANDSTILL BUDGET BEFORE 3,080 3,171 3,260 3,321 EFFICIENCIES Cashable Savings - Other (a) Reduction in food sampling budget (10) (10) (10) (10) (b) Reduction in safety and fair trading (5) (5) (5) (5) sampling budgets Total Cashable Savings - Other (15) (15) (15) (15) STANDSTILL BUDGET AFTER 3,065 3,156 3,245 3,306 EFFICIENCIES

29 D:\Docs\2018-05-09\0ea2fce3a5f8edcdc26283d6c66b4ccd.doc APPENDIX 2 C (continued)

PRESSURES FOR CHANGE

£’000

Legislative changes Legislation has increased the duties and functions of the Trading Standards Service.

a) Copyright, Designs and Patents Act +82 2008/09 The enactment of Sections 107A and 198A of the Copyright, onwards Designs and Patents Act require additional counterfeiting and piracy enforcement as part of the wider fight against terrorist activities. This legislation follows the Gower Review.

Two new posts are required to ensure proactive enforcement of these additional duties.

b) Feed Hygiene Enforcement on Farms +9 2008/09 The revised EU Food & Feed Hygiene Directive, has been onwards enacted into UK law, and places new duties on local authorities to enforce on farms. The costs have been calculated by reference to the number of premises that require increased enforcement activity by virtue of the Directive.

The additional work equates to 0.25 post.

c) Home Information Park +43 2008/09 Legislation has also been enacted into UK law, and places onwards new duties on local authorities to enforce home information packs on the purchase and sale of houses.

1.25 additional posts are required to ensure full proactive enforcement.

Other Pressures

a) Revenue Effects of Telecomms +2 2008/09 These are the authority’s total revenue consequences of +4 2009/10 undertaking corporate telecommunications capital works. onwards

b) Business Rates +1 2008/09 This relates to the estimated additional costs arising from the onwards 2006 revaluation of property for rating purposes.

c) Updating IT for flexible working in line with TWWW +4 2008/09 Trading Standards IT solutions for flexible working have been onwards unchanged for over 10 years. Performance issues now make this a pressure that has to be met. Updating of trading standards IT for flexible working in line with TWWW project. APPENDIX 2 C (continued) 30 D:\Docs\2018-05-09\0ea2fce3a5f8edcdc26283d6c66b4ccd.doc d) LGPS Employer’s Contributions +16 2008/09 Estimated cost of the increase in employer’s contribution +44 2009/10 towards the Local Government Pension Scheme. +72 2010/11 onwards

SAVINGS £’000

Cashable Efficiency Savings – Other

a) Reduction in food sampling budget -10 2008/09 Currently the food sampling budget stands at £60,000. onwards

For food samples not taken with a view to potential prosecution action (informal samples), there is the ability within the legislation to use non Public Analyst laboratories. Using a proportion of the budget in this way will realise cashable savings of £10,000.

b) Reduction in safety and fair trading sampling budgets -5 2008/09 The service also has a fair trading, agriculture and safety onwards sampling budget, used for test purchases of goods in relation to their descriptions and safety. This budget currently stands at £28,000.

Similarly to the food budget above, managing the informal samples in a different way by potentially using non-accredited test houses, or in-house testing, will realise cashable savings of £5,000.

31 D:\Docs\2018-05-09\0ea2fce3a5f8edcdc26283d6c66b4ccd.doc APPENDIX 2 D

REVENUE BUDGET 2008/09 – 2011/12 AND MOVEMENT FROM CURRENT YEAR’S BUDGET CRIME & DRUGS STRATEGY UNIT

Head of Crime & Drugs Strategy Unit: Philip Winter (01992 588719) Contact for queries: Ralph Paddock (01992 556365)

2008/09 2009/10 2010/11 2011/12 £’000 £’000 £’000 £’000 2007/08 Original Budget 2,397 2,397 2,397 2,397 Technical Adjustments 2007/08 (20) (20) (20) (20) 2007/08 Adjusted Budget 2,377 2,377 2,377 2,377 Technical Adjustments 2008/09 - - - - Inflation 85 170 255 340 Base Budget 2,462 2,547 2,632 2,717 Pressures for Change: FYE of previous efficiencies: (a) Reduction in HCC contribution in respect of PCSOs (200) (200) (200) (200) Other Pressures: (a) LGPS employer’s contributions 3 7 12 12 Total Pressures for Change (197) (193) (188) (188) STANDSTILL BUDGET 2,265 2,354 2,444 2,529

£’000 Full Year Effect of Previous Efficiencies

( a) Reduction in HCC contribution in Respect of PCSOs - 200 2008/09 This will be met by reducing the amount paid to Hertfordshire onwards Constabulary for Police Community Support Officers (PCSOs)

Other Pressures

(a) Local Government Pension Scheme Employers’ + 3 2008/09 Contribution + 7 2009/10 Estimated cost of the increase in employers’ contributions to + 12 2010/11 the local government pension scheme (LGPS). onwards

32 APPENDIX 2 E

REVENUE BUDGET 2008/09 – 2011/12 AND MOVEMENT FROM CURRENT YEAR’S BUDGET CORONERS SERVICE

Head of Statutory Services: Steven Charteris (01707 897375) Contact for queries: Tolu Cliffe (01992 555391)

2008/09 2009/10 2010/11 2011/12 £’000 £’000 £’000 £’000 2007/08 Original Budget 1,080 1,080 1,080 1,080 Technical Adjustments 2007/08 - - - - 2007/08 Adjusted Budget 1,080 1,080 1,080 1,080 Technical Adjustments 2008/09 - - - - Inflation 24 48 72 96 Base Budget 1,104 1,128 1,152 1,176 Pressures for Change: Other Pressures: (a) LGPS employer’s contributions 4 10 17 17 (b) Potters Bar rail inquest (30) (30) (30) (30) Total Pressures for Change (26) (20) (13) (13) STANDSTILL BUDGET 1,078 1,108 1,139 1,163

£’000 Other Pressures

a) Local Government Pension Scheme +4 2008/09 Estimated cost of the increase in employer’s contribution +10 2009/10 towards the Local Government Pension Scheme. +17 2010/11 onwards

b) Potters Bar Rail Inquest -30 2008/09 Removal of one-off pressure in 2007/08 for the Potters Bar onwards Rail Inquest.

33 APPENDIX 2 F

REVENUE BUDGET 2008/09 – 2011/12 AND MOVEMENT FROM CURRENT YEAR’S BUDGET REGISTRATION SERVICE

Head of Statutory Services: Steven Charteris (01707 897375) Contact for queries: Tolu Cliffe (01992 555391)

2008/09 2009/10 2010/11 2011/12 £’000 £’000 £’000 £’000 2007/08 Original Budget 1,014 1,014 1,014 1,014 Technical Adjustments 2007/08 (34) (34) (34) (34) 2007/08 Adjusted Budget 980 980 980 980 Technical Adjustments 2008/09 56 56 56 56 Inflation 13 26 39 52 Base Budget 1,049 1,062 1,075 1,088 Pressures for Change: FYE of Previous Efficiencies: New Change of Name Service (28) (28) (28) (28) Other Pressures: (a) LGPS employer’s contributions 10 27 45 45 (b) Capital payback 0 9 9 9 (c) Revenue effects of capital 38 38 38 38 Total Pressures for Change 20 46 64 64 STANDSTILL BUDGET 1,069 1,108 1,139 1,152

£’000 Full Year Effect of Previous Efficiences

a) New Change of Name Service -28 2008/09 The Registration Service intend to introduce a ‘change of onwards name’ service from late autumn 2007. Based on figures available from the one other authority offering this service it is anticipated that 700 people will use this service in its first year paying £40 for the facility. This will produce additional income of £28,000. There are minimal additional costs as it is anticipated that the work will be carried out by existing staff.

34 APPENDIX 2 F (continued)

Other Pressures a) LGPS Employer’s Contributions +10 2008/09 Estimated cost of the increase in employer’s contribution +27 2009/10 towards the Local Government Pension Scheme. +45 2010/11 onwards b) Capital Payback nil 2008/09 Payback associated with schemes funded by the general +9 2009/10 capital programme. onwards c) Revenue Effects of Capital +38 2008/09 These are the authority’s total revenue consequences of onwards undertaking capital works.

35 APPENDIX 2 G

REVENUE BUDGET 2008/09 – 2011/12 AND MOVEMENT FROM CURRENT YEAR’S BUDGET EMERGENCY PLANNING

Head of Safety, Emergency and Risk Management Unit: John Boulter (01992 555951) Contact for queries: Tolu Cliffe (01992 555391)

2008/09 2009/10 2010/11 2011/12 £'000 £'000 £'000 £'000 2007/08 Original Budget 719 719 719 719 Technical Adjustments 2007/08 - - - - 2007/08 Adjusted Budget 719 719 719 719 Technical Adjustments 2008/09 - - - - Inflation 17 34 51 68 Base Budget 736 753 770 787 Pressures for Change: Other Pressures: a) LGPS employer's contributions 4 12 21 21 STANDSTILL BUDGET BEFORE 740 765 791 808 EFFICIENCIES Cashable Efficiency Savings - Gershon (a) Administration staff costs due to better (11) (11) (11) (11) processes (b) Office Supplies and services - (5) (5) (5) (5) increased use of TWWW Cashable Efficiency Savings - Other (a) Furniture (5) (5) (5) (5) STANDSTILL BUDGET AFTER 719 744 770 787 EFFICIENCIES

PRESSURES FOR CHANGE £’000

Other Pressures

a) Local Government Pension Scheme +4 2008/09 Estimated cost of the increase in employer’s contribution +12 2009/10 towards the Local Government Pension Scheme. +21 2010/11 onwards

36 APPENDIX 2 G (continued)

SAVINGS £’000 Cashable Efficiency Savings - Gershon a) Administration Staff Costs -11 2008/09 A review of office processes has enabled streamlining of onwards systems. Demands on administrative staff have been reduced as a result of this initiative which has meant that it is no longer necessary to fill an existing a part time vacancy. b) Office Supplies and Services -5 2008/09 Postage, printing and stationery costs have been reduced as a onwards result of increased use of both the Resilience Forum website and email to communicate with partner organisations and other stakeholders.

Cashable Efficiency Savings - Other a) Furniture -5 2008/09 Following the office moves taking place in 2007/08 and the onwards adoption of the Way We Work principles, there will be a reduced requirement for furniture in future years.

37 38 D:\Docs\2018-05-09\0ea2fce3a5f8edcdc26283d6c66b4ccd.doc APPENDIX 3

PORTFOLIO: CHILDREN, SCHOOLS & FAMILIES

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

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

A Commentary

APPENDIX 3(1) – CHILDREN’S SERVICES

A Standstill Revenue Budget 2008/09 – 2011/12 and Movement from Current Year’s Budget B Pressures for Change & Savings

APPENDIX 3(2) – EDUCATION (NON SCHOOLS)

APPENDIX 3(3) - LIBRARIES

APPENDIX 3(4) - SCHOOLS

COMMENTARY

1.1 Appendices 3 (1) to 3 (4) outline the inflation and cost pressures facing the service in 2008/09 and the medium term. These relate to the four service budget blocks; Education non-schools, Children’s Services, Libraries Heritage and Arts and the Dedicated Schools Budget. This gives rise to a 2008/09 standstill budget for Children, Schools and Families (CSF), after efficiency savings, of £187.598 million (excluding the Dedicated Schools Budget, capital charges and the FRS17 pension adjustment).

1.2 The cashable efficiency savings which have been identified by Executive Members and Chief Officers are summarised below with further details provided in Appendices 3 (1) to 3 (3).

Education Libraries, Children’s Non- Culture & Services schools Art Total £’000 £’000 £’000 £’000 Cashable Efficiency Savings FYE of Previous - 209 102 311 Efficiencies 2008/09 Gershon 230 486 94 810 Savings 2008/09 Other 73 1,711 - 1,784 Savings Total 303 2,406 196 2,905

40 D:\Docs\2018-05-09\0ea2fce3a5f8edcdc26283d6c66b4ccd.doc APPENDIX 3 (1) A

REVENUE BUDGET 2008/09 – 2011/12 AND MOVEMENT FROM CURRENT YEAR’S BUDGET CHILDREN, SCHOOLS AND FAMILIES (CHILDREN’S SERVICES)

2008/09 2009/10 2010/11 2011/12 £’000 £’000 £’000 £’000

2007/08 Original Budget 89,905 89,905 89,905 89,905 Technical Adjustments 2007/08 73 73 73 73 2007/08 Adjusted Budget 89,978 89,978 89,978 89,978 Technical Adjustments 2008/09 - - - - Inflation 2,199 4,398 6,596 8,795 Base Budget 92,177 94,376 96,574 98,773 Pressures for Change:

Demography: (a) Children with Disabilities – Direct Spend 1,750 1,750 1,750 1,750 (b) Independent Placements 3,200 2,973 2,817 2,817 (c) Higher Education Sponsorship for 31 31 31 31 Children in Care (d) Adoption Service 294 294 294 294 Legislative Changes: (a) Residential Homes 283 283 283 283 (b) Safeguarding Children 89 89 89 89 (c) Integrated Children’s System 200 - - - (d) Leaving Care 305 318 318 318 (e) Access to Records 28 28 28 28 (f) Conciliation & Advice (47) (55) (55) (55)

Other Pressures: (a) Capacity Building Team (100) (100) (100) (100) (b) PFI Preparation (345) (345) (345) (345) (c) Business Rates 2 3 3 3 (d) Local Government Pension Scheme 150 408 677 677 (e) Capital Payback (27) (27) (27) (27) Total Pressures for Change 5,813 5,650 5,763 5,763 STANDSTILL BUDGET BEFORE 97,990 100,026 102,337 104,536 EFFICIENCIES

41 D:\Docs\2018-05-09\0ea2fce3a5f8edcdc26283d6c66b4ccd.doc APPENDIX 3 (1) A (continued)

2008/09 2009/10 2010/11 2011/12 £’000 £’000 £’000 £’000

Cashable Efficiency Savings - Gershon: (a) Central Placement Service (14) (14) (14) (14) (b) Phoenix (216) (216) (216) (216) Total Cashable Efficiency Savings - (230) (230) (230) (230) Gershon Cashable Savings – Other: (a) Youth Offending Team (73) (73) (73) (73) Total Cashable Savings - Other (73) (73) (73) (73) STANDSTILL BUDGET AFTER 97,687 99,723 102,304 104,233 EFFICIENCIES

42 D:\Docs\2018-05-09\0ea2fce3a5f8edcdc26283d6c66b4ccd.doc APPENDIX 3 1 (B)

CHILDREN, SCHOOLS AND FAMILIES (CHILDRENS SERVICES)

£’000

Demography

(a) Children with Disabilities – Direct Spend +1,750 2008/09 Costs associated with an increase in the number of onwards packages of care for disabled children and their families and increased expenditure for some existing cases. There has been a considerable increase in numbers of eligible clients in the current financial year and we expect to see this continue for 2008/09. This is against a National picture of increasing need and demand for services related to better pre-natal and paediatric care and rise in diagnostic of autistic spectrum disorders and related conditions.

(b) Independent Placements +3,200 2008/09 There is continued pressure on the volume and level of +2,973 2009/10 spend in this area. Previous projections of the savings to +2,817 2010/11 be achieved were over ambitious and designed at a time onwards when we were completing less than half the current level of assessments. A rise in assessments being completed is likely to lead to a rise in the number of children being looked after in the short term. In addition the increase in assessments is taking place when preventative initiatives such as Family Group Conferences and Children in Need structures are not fully established or where the range of local placements particularly for older children have not yet been delivered.

(c) Higher Education sponsorship for Children in Care +31 2008/09 The improvements in educational performance for Looked onwards After Children has resulted in an increasing trend in number of care leavers participating in further education opportunities. The number of care leavers in higher education placements is anticipated to increase from 10 in 2005/06 to 41 in 2008/09.

(d) Adoption Service +294 2008/09 Increases in the numbers of children being placed for onwards adoption. Increased numbers are resulting in increased allowance payments to adopters and costs to administer the independent panels.

43 D:\Docs\2018-05-09\0ea2fce3a5f8edcdc26283d6c66b4ccd.doc APPENDIX 3 1 (B) (continued)

Legislative Changes

(a) Residential Homes +283 2008/09 The additional costs associated with complying the onwards requirements of the Working time Directive in Children’s Residential Homes resulting in additional payments for waking night duties and associated additional staff costs.

(b) Safeguarding Children +89 2008/09 Additional resource to ensure allegations against staff are onwards responded to appropriately. This is a statutory requirement resulting from Working Together to Safeguard Children (2006). This is a priority in the PIAP in improving safe staffing arrangements.

(c) Integrated Children’s System (ICS) +200 2008/09 There is a Government requirement to implement ICS, only which is being completed in two phases. The second phase which will deliver additional features and modules, such as the foster service, will be implemented during 2008/09. This pressure relates to the costs of supporting the project including training and software. This is a priority in the Post Inspection Action Plan (PIAP).

(d) Leaving Care +305 2008/09 To develop the Independent Support Service to meet +318 2009/10 statutory responsibilities of the authority for all young onwards people aged 16 years to 24 years old who are Looked After Children or care leavers. The service currently supports 50% of the total (545) number of young people. In order to ensure that we meet statutory requirements and prevent further care drift there is a need for investment in this area. This is a priority in the PIAP and relates to the agreed KPIs agreed with Department for Children, Schools and Families.

(e) Access to records +28 2008/09 Access to Records for Hertfordshire residents is a onwards requirement of the Data Protection Act, linked to electronic social care records requirements. Additional staff are required to respond to the growing number of Access to Records (social care) requests by Hertfordshire Citizens within the prescribed 40 working day timescale.

(f) Conciliation & Advice -47 2008/09 There is a reduced requirement for additional funding to -55 2009/10 cover the costs of independent investigation of onwards complaints. Other Pressures

(a) Capacity Building Team -100 2008/09 This was investment in a one-off resource to fund a onwards 'Capacity Building Team' in 2007/08 to support the Social Care teams in driving up performance in completion of initial assessments and improving standards of practice across all of the social care teams.

(b) PFI Preparation -345 2008/09 This was a one off contribution for the fees element of the onwards PFI project to provide replacement and expansion of Children’s Residential Homes, refurbishments to Family Support Centres and for Family Assessment Centres.

(c) Business Rates +2 2008/09 This relates to the estimated additional costs arising from +3 2009/10 the 2006 revaluation of property for rating purposes. onwards

(d) Local Government Pension Scheme +150 2008/09 This is the department’s share of the increases in +408 2009/10 employers’ contributions towards the Local Government +677 2010/11 Pension Scheme. onwards

(e) Capital Payback -27 2008/09 Payback associated with the general capital programme onwards

SAVINGS

(a) Central Placement Service -14 2008/09 The Central Placement Service is the centralised team onwards that makes and negotiates all placements for Looked After Children in CSF. A review of the service will produce efficiencies in line with the target set for this area.

(b) Phoenix -216 2008/09 The service, which is a joint CSF, Supporting People and onwards Welwyn/Hatfield Council Project providing accommodation and support for care leavers and young homeless people, is being re-tendered from April 2008. It is anticipated that this will result in a reduced contribution to the budget.

Cashable Savings - Other

(a) Youth Offending Team -73 2008/09 A review of the service will produce efficiencies in line onwards with the 4% efficiency target set for this service.

46 D:\Docs\2018-05-09\0ea2fce3a5f8edcdc26283d6c66b4ccd.doc APPENDIX 3 (2)A

REVENUE BUDGET 2008/09 – 2011/12 AND MOVEMENT FROM CURRENT YEAR’S BUDGET CHILDREN, SCHOOLS AND FAMILIES (EDUCATION - NON SCHOOLS)

2008/09 2009/10 2010/11 2011/12 £’000 £’000 £’000 £’000

2007/08 Original Budget 68,481 68,481 68,481 68,481 Technical Adjustments 2007/08 (238) (238) (238) (238) 2007/08 Adjusted Budget 68,243 68,243 68,243 68,243 Technical Adjustments 2008/09 - - - - Inflation 1,740 3,481 5,221 6,961 Base Budget 69,983 71,724 73,464 75,204 Pressures for Change: Previous Policy Decisions: 2007/08 & Prior Years: (a) Denominational Transport (126) (396) (819) (819) FYE of Previous Efficiencies: (a) Home to School Transport (120) (120) (120) (120) (b) Consortia travel arrangements (13) (13) (13) (13) (c) Learners & Adolescent Services - (84) (301) (301) (301) Local Areas (d) Strategic management savings 8 8 8 8 Demography: (a) Transport For Howe Dell pupils upon move of building - Mainstream Home (8) (16) (24) (24) to School Transport Other Pressures: (a) SEN Home to School Transport 1,118 1,118 1,118 1,118 (b) Hertfordshire Adult & Family Learning Service (HAFLS) - 101 101 101 101 Springfield (c) Business Rates 4 8 8 8 (d) Local Government Pension Scheme 350 952 1,581 1,581 (e) Revenue effects of Telecoms 103 193 193 193 Total Pressures for Change 1,333 1,534 1,732 1,732 STANDSTILL BUDGET BEFORE 71,316 73,258 75,196 76,936 EFFICIENCIES

47 APPENDIX 3 (2)A (continued)

2008/09 2009/10 2010/11 2011/12 £’000 £’000 £’000 £’000

Cashable Efficiency Savings - Gershon: (a) Strategy and Resources portfolio (88) (54) (54) (54) (b) ICT Equipment (60) - - - (c) Standards and Schools (144) (144) (144) (144) Effectiveness Advisory Services (d) Area Specialist Adolescent Teams (130) (130) (130) (130) (e) Specialist Advisory Service (18) (18) (18) (18) (f) Participation Team Efficiencies (46) (76) (76) (76) (g) Standards and Schools - (500) (500) (500) Effectiveness (SSE) Review Total Cashable Efficiency Savings - (486) (922) (922) (922) Gershon Cashable Savings – Other: (a) Criminal Records Bureau checks in (580) (580) (580) (580) schools - DSG Funding (b) Mainstream Home to School (309) (315) (315) (315) Transport (c) Dual Use - DSG Funding (498) (498) (498) (498) (d) Gifted and Talented Advisory (98) (98) (98) (98) (e) Schools HR re-organisation budgets (126) (126) (126) (126) (f) Youth Service (100) (100) (100) (100) Total Cashable Savings - Other (1,711) (1,717) (1,717) (1,717) STANDSTILL BUDGET AFTER 69,119 70,619 72,557 74,297 EFFICIENCIES

48 APPENDIX 3 (2) B

CHILDREN, SCHOOLS AND FAMILIES (EDUCATION – NON SCHOOLS)

£’000

Previous Policy Decisions

(a) Denominational Transport -126 2008/09 Phased withdrawal of the entitlement to free denominational -396 2009/10 transport in accordance with cabinet decision on 24th July -819 2010/11 2006, providing arrangements for low income families and onwards siblings.

(a) Home to School Transport -120 2008/09 Full year impact of review of Home to School Transport which onwards has identified a number of areas where efficiencies can be made. These include the impact of improved route planning and the integrated transport review.

(b) Consortia travel arrangements -13 2008/09 Full year impact of reductions in funding provided by the onwards authority to support the 14-19 consortia working and transport arrangements. This proposal recognises the significant funding available to the Strategic Area Partnership Groups to support partnership working on post 16 provision.

(c) Learners and Adolescent Services – Local Areas -84 2008/09 A review of the service through ongoing impact of savings -301 2009/10 resulting from business process changes and reviews of onwards contracts.

(d) Strategic Management savings +8 2008/09 A review of strategic management budgets has identified onwards savings associated with the transformation of support services.

Demographic Changes

(a) Transport For Howe Dell pupils upon move of building Mainstream Home to School Transport -8 2008/09 The phased reduction of free home to school transport for -16 2009/10 pupils who have moved to the new Howe Dell site. This cost -24 2010/11 will reduce over time as these pupils leave the school. onwards

49 APPENDIX 3 (2) B (continued)

Other Pressures

(a) SEN Home to School Transport +1,118 2008/09 This reflects the current continuing pressure on this budget onwards resulting from : - heavy reliance on the private hire market where year on year costs are rising higher than inflation - the impact on cost of increased vehicle regulations In order to contain the impact of the pressure officers brought forward the re-tendering of routes in the eastern half of the county in 2007/08. This pressure takes account of the full year effect of savings generated by this re-tendering exercise.

(b) Hertfordshire Adult and Family Learning Service (HAFLS) - Springfield +101 2008/09 Springfields Centre at Oaklands College is a specialist centre onwards for young people and adults with complex learning difficulties and/or disabilities. Currently 47 young people are predicted to attend programmes in 2007/08. The whole of the provision including the care element has been funded by the Learning and Skills Council through grant but they have confirmed that this cannot continue. Whilst this pressure relates to only a proportion of the total costs of the facility (£800k), it is necessary to secure its ongoing operation.

(c) Business Rates +4 2008/09 This relates to the estimated additional costs arising from the +8 2009/10 2006 revaluation of property for rating purposes. onwards

(d) Local Government Pension Scheme +350 2008/09 This is the department’s share of the increases in employers’ +952 2009/10 contributions towards the Local Government Pension +1,581 2010/11 Scheme. onwards

(e) Revenue Effects of Telecomms +103 2008/09 This is the department’s share of the revenue consequences +193 2009/10 of undertaking corporate telecommunications capital works onwards within the agreed capital programme.

50 APPENDIX 3 (2) B (continued) SAVINGS

£’000

(a) Strategy and Resources portfolio -88 2008/09 Reviews within the Directorate and the Policy, Planning and -54 2009/10 Improvement Team have identified a number of efficiencies onwards which do not impact on front line services. This includes printing and venue costs for management forums and publication costs and conferences.

(b) ICT Equipment -60 2008/09 Review of how equipment meets business needs in the only context of the more flexible ICT access offered by TWWW will deliver savings in ICT costs.

(c) Standards and Schools Effectiveness Advisory Services -144 2008/09 Efficiencies in the operation of the advisory service through onwards internal reviews in the Health & Well-being Team and more targeted use of the direct cost budgets in Governor Support, School Workforce Development and project budgets. In addition, sponsorship support will be sought for Herts Governor Services. Efficiencies will also be made in the centre management in preparation for the moves to Stevenage.

(d) Area Specialist Adolescent Teams -130 2008/09 Effective use of the grant to support this service will enable onwards base funding to be released.

(e) Specialist Advisory Service -18 2008/09 Efficiencies resulting from a review into business processes onwards and full utilisation of the Herts Equipment Service.

(f) Participation Team Efficiencies -46 2008/09 A review of the Participation Team will be conducted with the -76 2009/10 aim of securing efficiency savings through business process onwards changes.

(g) Standards and Schools Effectiveness (SSE) Review -500 2009/10 SSE will conduct further efficiency reviews for 2009/10 onwards onwards which will identify, through a new business plan, key areas for future cashable efficiencies. The potential areas for review are Minority Ethnic Curriculum Services.

(a) Criminal Records Bureau checks in schools – DSG funding -580 2008/09 Transfer of the costs of CRB checks on schools staff to the onwards Schools Budget. This reflects Governors responsibilities in relation to safe recruitment.

(b) Mainstream Home to School Transport -309 2008/09 Savings achieved from the replanning and withdrawal of -315 2009/10 routes through schools re-organisations. In addition phased onwards increases in charges for assisted places to align them with commercial fares.

(c) Dual Use – DSG funding -498 2008/09 Proposal to delegate the responsibility for dual use sports onwards facilities at school sites to Schools.

(d) Gifted and Talented Advisory Service -98 2008/09 Efficiencies achieved from trading the currently core funded onwards provision for Gifted and Talented advisory work, master classes and challenge days.

(e) Schools HR re-organisation Budgets -126 2008/09 Review of arrangements for funding and managing severance onwards and early retirements resulting from school re-organisations will produce savings within HR budgets.

(f) Youth Service -100 2008/09 As part of the arrangements for developing an Integrated onwards Youth Service from 1st April 2008 the potential for further reductions in management and other fixed costs is being reviewed. However, until the review is completed the potential that this saving will impact on services cannot be ruled out.

52 APPENDIX 3 (3)A

REVENUE BUDGET 2008/09 – 2011/12 AND MOVEMENT FROM CURRENT YEAR’S BUDGET CHILDREN, SCHOOLS AND FAMILIES (LIBRARIES)

2008/09 2009/10 2010/11 2011/12 £’000 £’000 £’000 £’000

2007/08 Original Budget 20,463 20,463 20,463 20,463 Technical Adjustments 2007/08 (52) (52) (52) (52) 2007/08 Adjusted Budget 20,411 20,411 20,411 20,411 Technical Adjustments 2008/09 - - - - Inflation 425 850 1,275 1,700 Base Budget 20,836 21,261 21,686 22,111 Pressures for Change: Previous Policy Decisions: FYE of previous efficiencies: (a) Reduction in Bibliomondo contract (5) (5) (5) (5) (b) Schools Library Service (69) (169) (169) (169) (c) ICT charging (28) (28) (28) (28) Other Pressures: (a) Business Rates 17 23 23 23 (b) Local Government Pension Scheme 90 245 407 407 (c) Revenue Effects of Telecoms 3 5 5 5 (d) Capital Payback 42 66 66 66 Total Pressures for Change 50 137 299 299 STANDSTILL BUDGET BEFORE 20,886 21,398 21,985 22,410 EFFICIENCIES Cashable Efficiency Savings - Gershon: (a) Libraries Management System (65) (65) (65) (65) (b) Recharge PC Leasing (29) (29) (29) (29) Total Cashable Efficiency Savings - (94) (94) (94) (94) Gershon STANDSTILL BUDGET AFTER 20,792 21,304 21,891 22,316 EFFICIENCIES

53 APPENDIX 3 (3)B

£’000

(a) Reduction in Bibliomondo Contract -5 2008/09 HCC negotiated a three year extension to the Bibliomondo onwards support contract for the Concerto Library Management System in February 2005. Yearly savings were agreed across the whole maintenance budget.

(b) ICT Charging -28 2008/09 Full year impact of charges for the use of public access onwards computers in libraries.

(c) Schools Library Service -69 2008/09 Changes to the Schools Library service will deliver a modern -169 2009/10 web-based assisted purchase scheme which will have onwards broader appeal to all school sectors. The training and development function will continue to be offered on a traded basis.

Other Pressures

(a) Business Rates +17 2008/09 This relates to the estimated additional costs arising from the +23 2009/10 2005 revaluation of property for rating purposes. onwards

(b) Local Government Pension Scheme +90 2008/09 This is the department’s share of the increases in employers’ +245 2009/10 contributions towards the Local Government Pension Scheme +407 2010/11 onwards

(c) Revenue Effects of Telecomms +3 2008/09 These are the authority’s total revenue consequences of +5 2009/10 undertaking corporate, telecommunications capital works onwards

(d) Capital Payback +42 2008/09 Payback associated with the general capital programme +66 2009/10 onwards

54 APPENDIX 3 (3) B (continued) SAVINGS

£’000

(a) Libraries Management System -65 2008/09 Re-negotiation of the contract for the Library Management onwards System has resulted in improved efficiencies and savings in relation to the business continuity and automated telephone renewals system.

(b) Recharge PC Leasing -29 2008/09 Changes to the commissioning arrangements for the public pc onwards hardware replacement from lease to outright purchase.

55 APPENDIX 3 (4)A REVENUE BUDGET 2008/09 – 2011/12 AND MOVEMENT FROM CURRENT YEAR’S BUDGET CHILDREN, SCHOOLS AND FAMILIES (SCHOOLS)

2008/09 2009/10 2010/11 2011/12 £’000 £’000 £’000 £’000

2007/08 Original Budget 597,226 597,226 597,226 597,226 Technical Adjustments 2007/08 373 373 373 373 2007/08 Adjusted Budget 597,599 597,599 597,599 597,599 Technical Adjustments 2008/09 - - - - Inflation 11,547 24,600 38,030 51,030 Base Budget 609,146 622,199 635,629 648,629 Pressures for Change: Previous Policy Decisions:

2006/07 & Prior Years (a) Stevenage Federation (58) (100) (100) (100) (b) Hertsmere Jewish High School 496 1,040 1,467 1,467 (c) Change in Pupil Numbers (1,800) (4,000) (5,900) (5,900) FYE of previous efficiencies: School Amalgamations (372) (639) (896) (896) Demography: (a) Maternity pay 130 130 130 130 (b) Independent (Out County) 1,400 1,400 1,400 1,400 Placements (c) Private, Voluntary and Independent 500 500 500 500 (PVI) Early Years Provision Legislative Changes: (a) Provision for permanently excluded pupils from day 6 of exclusion 100 100 100 100 (Authority) (b) Provision for permanently excluded pupils from day 6 of exclusion 200 200 200 200 (schools) (c) Provision for Children Out of School 350 550 550 550 (d) Education provision for Young 30 30 30 30 Offenders out of school (e) Single Early Years Funding formula 200 700 1,200 1,200 (f) Fire Insurance 110 110 110 110 (g) Maternity pay - Alabaster Case 43 43 43 43 (h) School Workforce Census 20 200 200 200 (i) Co-ordination of Secondary 66 66 66 66 Admission arrangements Other Pressures: (a) Common Assessment Framework 200 200 200 200 (b) CSF Workers 880 880 880 880 (c) Business Rates - 1 1 1 (d) Local Government Pension Scheme 552 1,778 3,035 3,035 56 APPENDIX 3 (3) B (continued)

2008/09 2009/10 2010/11 2011/12 £’000 £’000 £’000 £’000

(e) Capital Payback 3 3 3 3 (f) Criminal Records Bureau checks 730 730 730 730 (g) Dual Use 498 498 498 498 (h) Learning Support Units (LSUs) 250 188 125 125 (i) Personalised Learning & SEN 7,752 12,570 21,427 21,427 (j) Pockets of deprivation 46 46 46 46 Total Pressures for Change 12,326 17,224 26,045 26,045

STANDSTILL BUDGET BEFORE 621,472 639,423 661,674 674,674 EFFICIENCIES Cashable Savings - Other (a) Pupil Support – Hospital and Home (23) - - - Education Total Cashable Savings - Other (23) - - - STANDSTILL BUDGET AFTER 621,449 639,423 661,674 674,674 EFFICIENCIES

57 APPENDIX 3 (4) B

CHILDREN, SCHOOLS AND FAMILIES (SCHOOLS)

£’000

Previous Policy Decisions

(a) Stevenage Federation -58 2008/09 This relates to the pilot costs of federation in Stevenage -100 2009/10 which comes to an end at the start of the academic year onwards 2008/09 (September 2008).

(b) Hertsmere Jewish High School +496 2008/09 The element of funding for the new school expected to be +1,040 2009/10 delivered by additional Dedicated Schools Grant +1,467 2010/11 onwards

(c) Change in Pupil Numbers -1,800 2008/09 Impact of the changes in AWPU and other pupil led funding -4,000 2009/10 in school budget shares. -5,900 2010/11 onwards

(a) School Amalgamations -372 2008/09 Savings in lump sums and premises related funding in -639 2009/10 school budget shares as a result of school re-organisations. -896 2010/11 onwards

Demographic Changes

(a) Maternity pay +130 2008/09 Provision for costs resulting from ongoing trend of increase onwards in the numbers of teachers qualifying for maternity leave over the last 5 years. There are also almost twice as many staff employed in schools as there was in 1997and the development of ‘Family Friendly’ policies has made extended maternity leave more attractive. This has also increased the average cost of claims.

58 APPENDIX 3 (4) B (continued) (b) Independent (Out County) Placements +1,400 2008/09 Increases in the numbers of children with complex SEN onwards needs placed in Independent special schools. The numbers of children in such provision have increased by 6.8% per year since 2004. The children most often in specialist provision are those with behavioural, emotional and social difficulties and autistic spectrum disorders. These children have a range of needs including social care and health and there has been a growing requirement for more costly 52 week residential placements. The Joint Disabiliity strategy aims to provide integrated services for children with disabilities sharing the costs with children services and health. It aims to meet needs locally, providing better inclusion within the authority’s special schools to reduce reliance on out of authority placements where possible.

(c) Private, Voluntary and Independent (PVI) Early Years Provision +500 2008/09 Provide for further increase in the participation rate of 3 year onwards olds in private and voluntary nursery provision. The overall participation rate of 3 year olds in nursery provision has increased by 5% in the last year.

Legislative Pressures

(a) Provision for permanently excluded pupils from day 6 of exclusion (Authority) +100 2008/09 Under the Education and Inspections Act the Local Authority onwards is responsible for making full time provision for pupils from day 6 of a permanent exclusion, rather than day 15. This new responsibility came into force from 1 September 2007. Although there has been improvement in the authority’s performance in providing full-time education from day 15 of exclusion this remains an area of concern. This pressure allows for additional provision to be made for up to 25 pupils at any one time in order to ensure that all excluded pupils out of school have access to full-time provision. This pressure recognises the allocation notified by the DCSF to cover this new responsibility.

(b) Provision for permanently excluded pupils from day 6 of exclusion (schools) +200 2008/09 From September 2007 schools are required to arrange full- onwards time education for pupils excluded for a fixed period from the sixth day of an exclusion. This resource, which reflects the allocation notified by the DCSF, will be delegated to schools to enable them to meet this requirement.

(c) Provision for Children Out of School +350 2008/09 This pressure relates to phase 2 of the development of KS4 +550 2009/10 learning centres which will enable 6 centres to be fully onwards operational from September 2008. These centres will increase the capacity for pupils in years 10 and 11 to meet statutory requirements within alternative provision for excluded pupils and those at risk of exclusion.

(d) Education provision for Young Offenders out of school +30 2008/09 To provide for packages of support to enable Young onwards Offenders out of school to access educational provision. This would provide educational packages for approximately 20 young people per annum as a last resort for short periods.

(e) Single Early Years Funding formula +200 2008/09 All authorities are required to introduce a single formula +700 2009/10 covering both maintained and PVI settings from 2010/11 at +1,200 2010/11 the latest. This funding is aimed at delivering a single onwards formula on a phased basis and in 2008/09 provides an increase in the PVI nursery funding rate to the same level as nursery classes. From 2009/10 all elements will be reviewed including SEN, deprivation and premises.

(f) Fire Insurance +110 2008/09 To provide cover for fixed assets in VA schools on the same onwards basis as other school categories. Previously it was expected that DCSF would grant aid any rebuilding works but latest advice indicates that this cannot be relied on and therefore the authority's interest would not be protected.

(g) Maternity pay - Alabaster Case +43 2008/09 A recent ruling in the European Court of Justice, known as onwards the Alabaster case, allows for mothers to claim that any pay award, promotion or regrading applicable to their post should apply to the whole of their maternity pay period.

(h) School Workforce Census +20 2008/09 DCSF requirement on schools to produce new School +200 2009/10 Workforce Census. This will be piloted in 10% of schools in onwards January 2009 with full introduction to all schools in January 2010. This pressure recognises the additional administration workload specifically for primary and nursery schools.

(i) Co-ordination of Secondary Admission arrangements +66 2008/09 There is a requirement for the authority to co-ordinate onwards secondary transfer across all admitting authorities instead of passing the responsibility to voluntary aided and foundation schools from allocation day. This pressure recognises the additional staffing requirement to deal with the workload.

Other Pressures

(a) Common Assessment Framework +200 2008/09 Costs associated with the ongoing training and development onwards of key staff in schools in the use of the Common Assessment Framework(CAF). The CAF is a key process that supports systematic arrangements for early intervention and prevention for vulnerable children. All authorities are required to implement the CAF by March 2008. This is a priority in the PIAP.

(b) CSF Workers +880 2008/09 The appointment of these workers will underpin the work of onwards Multi-Agency Teams (MATs) linked to each of the 38 Extended School Communities, with one CSF Worker allocated to each MAT. CSF Pupil Support Workers will work directly with schools staff and local services teams to provide short term early interventions with children and families who are causing concern. This is a priority in the PIAP and represents schools’ contributions to the development funding of preventative services.

(c) Business Rates nil 2008/09 This relates to the estimated additional costs arising from the +1 2009/10 2005 revaluation of property for rating purposes. onwards

(d) Local Government Pension Scheme +552 2008/09 Estimated impact of the increase in the employers’ +1,778 2009/10 contributions to the Local Government Pension Scheme. +3,035 2010/11 onwards

(e) Capital Payback +3 2008/09 Payback associated with the general capital programme. onwards

(f) Criminal Records Bureau checks +730 2008/09 To reflect the ongoing cost of CRB checks on schools based onwards staff. This relates to the responsibility of governing bodies to make arrangements to promote the safeguarding and welfare of children in relation to safe recruitment.

(g) Dual Use +498 2008/09 Delegation of the responsibilities of funding for the costs of onwards dual use sports facilities at school sites. This relates to agreements at 7 secondary schools across the county.

(h) Learning Support Units (LSUs) +250 2008/09 Proposals made by HASSH for the expansion of the number +188 2009/10 of LSU's across the county from 21 to 23 and transition +125 2010/11 arrangements for the redistribution of funding. These units onwards provide targeted support for students at risk of exclusion or who are experiencing barriers in their learning. Eligible schools are in areas of the county where there are above average number of casual admissions and 'hard to place' students. (i) Personalised Learning & SEN +7,752 2008/09 Targeted resource to schools to enable them to meet the +12,570 2009/10 Government's priorities. Specifically ensuring all children +21,427 2010/11 are making good progress and early intervention and onwards targeted support for specific groups. This includes Looked after children, certain ethnic groups and those with SEN.

(j) Pockets of deprivation +46 2008/09 Allocated resource to target specific communities with high onwards levels of deprivation.

SAVINGS

(a) Pupil Support – Hospital and Home Education -23 2008/09 Following review of the staffing within the specific learning only difficulties provision, efficiencies have been identified which do not impact on service delivery.

62 APPENDIX 4

PORTFOLIO: CORPORATE SERVICES

Chief Officers/Heads of Function: Caroline Tapster, Chief Executive (01992 555600) Andrew Laycock, County Secretary (01992 555500) Chris Sweeney, Finance, Information and Commercial Services Director (01992 555303) Alan Warner, Corporate Director, People & Property (01992 556650) Geoff Brown, Head of Performance Improvement (01992 555370) John Sellgren, Communications Director (01992 555619)

Contacts for queries: Tolu Cliffe Finance Manager (01992 555391)

63 APPENDIX 4 A

COMMENTARY

1.1 This appendix outlines the inflation and cost pressures facing the service in 2008/09 and the medium term. This gives rise to a 2008/09 standstill budget for Corporate Services after efficiency savings of £9.230 million (excluding capital charges and the FRS17 pension adjustment).

1.2 The cashable efficiency savings which have been identified by Executive Members and Chief Officers are summarised below with further details provided in Appendices 4B and 4C.

£’000 Cashable Efficiency Savings FYE of Previous Efficiencies 1,542 2008/09 Gershon Savings 156 2008/09 Other Savings nil Total 1,698

64 D:\Docs\2018-05-09\0ea2fce3a5f8edcdc26283d6c66b4ccd.doc APPENDIX 4B

REVENUE BUDGET 2008/09 – 2011/12 AND MOVEMENT FROM CURRENT YEAR’S BUDGET CORPORATE SERVICES

2007/08 2008/09 2009/10 20010/11 £’000 £’000 £’000 £’000 2007/08 Original Budget 6,493 6,493 6,493 6,493 Technical Adjustments 2007/08 2,886 2,886 2,886 2,886 2007/08 Adjusted Budget 9,379 9,379 9,379 9,379 Technical Adjustments 2008/09 (85) (85) (85) (85) Inflation 1,337 2,674 4,011 5,348 Base Budget 10,631 11,968 13,305 14,642 Pressures for Change: FYE of previous efficiencies: a) HR, IT & Finance Transformation (1,542) (1,542) (1,542) (1,542) Other Pressures: a) Business rates 26 47 47 47 b) LGPS employer’s contributions 144 391 650 650 c) Revenue effects of telecomms 148 188 188 188 d) Capital payback (41) (31) (31) (49) e) BVPI survey - 48 - - f) Citizens Panel 20 20 20 20 Total Pressures for Change 297 663 874 856 STANDSTILL BUDGET BEFORE 9,386 11,089 12,637 13,956 EFFICIENCIES Cashable Efficiency Savings – Gershon: a) Senior Management Reorganisation (156) (156) (156) (156) Total Cashable Efficiency Savings – (156) (156) (156) (156) Gershon STANDSTILL BUDGET AFTER 9,230 10,933 12,481 13,800 EFFICIENCIES

65 D:\Docs\2018-05-09\0ea2fce3a5f8edcdc26283d6c66b4ccd.doc APPENDIX 4C

PRESSURES FOR CHANGE £’000

a) HR, IT & Finance Transformation -1,542 2008/09 These savings arise from the support services transformation onwards programme approved by Cabinet in November 2006.

Other Pressures

a) Business rates +26 2008/09 This relates to the estimated additional costs arising from the +47 2009/10 2006 revaluation of property for rating purposes. onwards

b) LGPS employer’s contributions +144 2008/09 Estimated cost of the increase in employer’s contribution towards +391 2009/10 the Local Government Pension Scheme. +650 2010/11 +650 2011/12

c) Revenue effects of telecomms +148 2008/09 These are the authority’s total revenue consequences of +188 2009/10 undertaking corporate capital works. onwards

d) Capital payback -41 2008/09 Pay back associated with schemes funded by the general capital -31 2009/10 programme. -31 2010/11 -49 2011/12

e) Best Value Performance Indicators survey +48 2009/10 BVPI is a triennial statutory survey led by Department for only Communities and Local Government (DCLG). It will not take place in 2008/09 but will next take place in 2009/10.

f) Citizens Panel +20 2008/09 The statutory requirement to engage with the public, service onwards users, and those at risk of disadvantage on the council’s key decisions and priorities has increased substantially in the last few years. In addition the number of topics on which the council needs to consult has also increased, including community cohesion, climate change, quality of life issues, crime and disorder, budget priorities public satisfaction and complaints handling. HCC want to be able to use the innovative techniques available to engage with all communities but currently these aren’t funded. £20,000 is needed to deliver the required standard.

66 D:\Docs\2018-05-09\0ea2fce3a5f8edcdc26283d6c66b4ccd.doc APPENDIX 4C (continued)

SAVINGS £’000

a) Senior management reorganisation -156 2008/09 Senior management carried out a reorganisation at a senior onwards management level and generated an efficiency saving of £156,000.

67 D:\Docs\2018-05-09\0ea2fce3a5f8edcdc26283d6c66b4ccd.doc 68 D:\Docs\2018-05-09\0ea2fce3a5f8edcdc26283d6c66b4ccd.doc APPENDIX 5

PORTFOLIO: ENVIRONMENT

Chief Officer: John Wood (01992 555200)

Contact for queries: Mike Collier (01992 556010)

COMMENTARY

1.1 This Appendix outlines the inflation and cost pressures facing the service in 2008/09 and the medium term. This gives rise to a 2008/09 standstill budget for Environment after efficiency savings of £106.211 million (excluding capital charges and the FRS17 pension adjustment).

1.2 The cashable efficiency savings which have been identified by the department are summarised below with further details provided in Appendices 5B and 5C.

£’000 Cashable Efficiency Savings FYE of Previous Efficiencies 134 2008/09 Gershon Savings 2,195 2008/09 Other Savings 470 Total 2,799

70 D:\Docs\2018-05-09\0ea2fce3a5f8edcdc26283d6c66b4ccd.doc APPENDIX 5B

REVENUE BUDGET 2008/09 – 2011/12 AND MOVEMENT FROM CURRENT YEAR’S BUDGET ENVIRONMENT

2008/09 2009/10 2010/11 2011/12 £’000 £’000 £’000 £’000 2007/08 Original Budget 100,354 100,354 100,354 100,354

Technical Adjustments 2007/08 (410) (410) (410) (410) 2007/08 Adjusted Budget 99,944 99,944 99,944 99,944 Technical Adjustments 2008/09 - - - - Inflation 4,411 8,977 13,543 18,109 Base Budget 104,355 108,921 113,487 118,053 Pressures for Change: Full Year Effect of Previous Efficiencies (a) Carriageway Condition Surveys (134) (134) (134) (134) Demography: (a) Waste Volumes (300) (50) 200 200 (b) Road length increases - routine 190 380 570 760 maintenance Legislative Changes: (a) Landfill tax 3,553 6,588 6,588 6,588 (b) Commons Act 2006 25 25 25 25 (c) Historic Environment Act 2008 25 25 25 25 (d) Traffic Management Act - Signals 50 50 50 50 Check (e) Aggregates Tax 60 60 60 60 (f) Natural Environment and Rural 10 10 10 10 Communities Act 2006 Other Pressures: (a) Business rates 5 6 6 6 (b) Local Government Pension Scheme 169 460 764 764 (c) Revenue effects of telecomms 14 27 27 27 (d) Local Transport Plan 3 40 80 80 80 (e) Future highways contracts 0 (60) (60) (60) (g) Capital Payback 714 719 719 719 (h) Retention of School Travel Plan Team - - 170 170 (i) Waste treatment procurement 100 100 (100) (100) Total Pressures for Change 4,521 8,286 9,000 9,190 STANDSTILL BUDGET BEFORE 108,876 117,207 122,487 127,243 EFFICIENCIES

71 D:\Docs\2018-05-09\0ea2fce3a5f8edcdc26283d6c66b4ccd.doc APPENDIX 5 B (continued)

2007/08 2008/09 2009/10 2010/11 £’000 £’000 £’000 £’000 Cashable Efficiency Savings – Gershon: (a) Increase income from Third Party (500) (500) (500) (500) Recoverables (b) Highways Management System (250) (250) (250) (250) (c) Review Annual Financial Provisions (750) (750) (750) (750) (d) Limit Budget and Manage Cat 1/Cat 2 (250) (250) (250) (250) Holistically (e) SMT Reorganisation following IWP (100) (100) (100) (100) Review (f) Net Increased Surplus From Speed (100) (100) (100) (100) Awareness Courses (g) New Franchise for the Provision of the (38) (38) (38) (38) Abbey Line Sunday Service (h) Reducing Admin Support by (69) (69) (69) (69) Reorganisation of Resources (i) Review and reconfigure consultancy (45) (45) (45) (45) (HERMIS development) (j) Integrate management / landscape (18) (18) (18) (18) (k) Herts Forward Support (5) (5) (5) (5) (l) LAA Performance Monitoring (15) (15) (15) (15) (m) TravelWise Combined With Other (5) (5) (5) (5) Campaigns (n) General Reductions in Overheads (50) (50) (50) (50) Through Increased Efficiencies Total Cashable Efficiency Savings – (2,195) (2,195) (2,195) (2,195) Gershon Cashable Savings – Other: (a) Increase income from NRSWA/TMA (100) (100) (100) (100) (b) Change Charging Policy for Post- (200) (200) (200) (200) Planning Development Control (c) Restructuring Strategic Partnerships (105) (105) (105) (105) Unit (d) Increase income – Rural Estates (40) (40) (40) (40) (e) Increase income (10) (10) (10) (10) (f) Income Generation: Charge for Pre- (10) (10) (10) (10) Application Advice (Dev Cont) (g) Income Generation: Charge for Pre- (5) (5) (5) (5) Application Advice (Waste/Minerals) Total Other Savings (470) (470) (470) (470) STANDSTILL BUDGET AFTER 106,211 114,542 119,822 124,578 EFFICIENCIES

72 D:\Docs\2018-05-09\0ea2fce3a5f8edcdc26283d6c66b4ccd.doc APPENDIX 5C

£’000

(a) Carriageway Condition Surveys -134 2008/09 The introduction of new survey techniques in the past few onwards years means that the present approach can be phased out.

Demographic Changes

(a) Waste volumes -300 2008/09 The volume of household waste that the County Council is -50 2009/10 obliged to dispose of each year is still expected to rise each +200 2010/11 year but the latest projections suggest that the level of growth onwards will be around 1.5% per annum rather than the 2.5% that was previously forecast. This item also reflects the fact that we are not experiencing the level of growth originally anticipated and allowed for in 2007/08.

(b) Road length increases – routine maintenance +190 2008/09 With increases in residential developments, the length of roads +380 2009/10 that the county council has a responsibility to maintain +570 2010/11 continues to grow each year. Recent calculations show that it +760 2011/12 costs an average of just over £7,000 per kilometre to maintain local roads. Approximately 30 kilometres of new roads are added to the network every year.

Legislative Changes

(a) Landfill Tax +3,553 2008/09 Landfill Tax is currently £24 a tonne and was expected to be +6,588 2009/10 subject to an annual escalation of £3 a tonne. However, it was onwards announced in the Budget that the Tax will now rise at £8 a tonne a year.

(b) Commons Act 2006 +25 2008/09 This Act requires the county council to digitise all records of onwards the commons in the county to make them more accessible and usable. In addition, by raising the profile of commons, the act will result in more enforcement work for the authority as people realise what rights they have.

(c) Historic Environment Act 2008 +25 2008/09 This Act will devolve former English Heritage responsibilities to onwards the county council which will result in additional duties and costs. Areas of work being devolved includes the management and granting of scheduled monument consents, all heritage consent associated with listed buildings and the keeping, access to and management of Historic Environment Records to a new national standard.

(d) Traffic Management Act (TMA) Signals Check +50 2008/09 The County Council has a new statutory responsibility under onwards TMA to ensure that its signal installations are operating at optimal level. The TMA guidance indicates a triennial check is necessary.

(e) Aggregates Tax +60 2008/09 Increase in national rate of tax. onwards

(f) Natural Environment & Rural Communities Act 2006 +10 2008/09 This imposes a duty on public bodies to “have regard … to onwards biodiversity” when undertaking all activities and services. This is likely to lead to an increased demand for advice from Herts Biological Records Centre (HBRC) from internal HCC units.

Other Pressures

(a) Business rates +5 2008/09 This relates to the estimated additional costs arising from the +6 2009/10 2005 revaluation of property for rating purposes. onwards

(b) LGPS employer’s contributions +169 2008/09 Estimated cost of the increase in employer’s contributions to +460 2009/10 the Local Government Pension Scheme. +764 2010/11 onwards

(c) Revenue effects of telecomms +14 2008/09 These are the authority’s revenue consequences of +27 2009/10 undertaking corporate, telecommunications capital works. onwards

(d) Local Transport Plan 3 (LTP3) +40 2008/09 Extra costs will be incurred in preparing, producing and +80 2009/10 consulting upon the next Local Transport Plan. Costs are likely onwards 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.

74 D:\Docs\2018-05-09\0ea2fce3a5f8edcdc26283d6c66b4ccd.doc APPENDIX 5C (continued) (e) Future highways contracts nil 2008/09 The current Hertfordshire Highways contracts run until -60 2009/10 September 2009, with a possible extension of a further three onwards years. This item reflects the earlier provision of funds for the resources to develop, tender and let the next generation of contracts and the reduction of these in later years as the work is completed.

(f) Capital Payback +714 2008/09 Payback associated with the general capital programme +719 2009/10 onwards

(h) Retention of School Travel Plan Team nil 2008/09 Government Funding for this team ends in March 2010. This nil 2009/10 item is for retention of four staff and manager in order to meet +170 2010/11 the LTP2 target and support some work on Business Travel onwards Plans and work as a result of Faith Transport Review. It supports the Congestion challenge. In addition, the latest Education Bill includes a duty for LEAs to prepare a strategy each year for promoting sustainable modes of travel

(g) Waste Treatment Procurement 100 2008/09 To implement the Hertfordshire Waste Strategy the County 100 2009/10 Council, as waste disposal authority, is obliged to secure the -100 2010/11 facilities and supporting infrastructure to treat residual waste - onwards that part of municipal waste that cannot be recycled or composted. The strategy sets out various technological solutions which need to be assessed and procured through appropriate financing and contract arrangements. This budget will enable relevant and timely expertise and project management to be put in place.

SAVINGS

£’000

Cashable Efficiency Savings – Gershon

(a) Increase income from Third Party Recoverables -500 2008/09 Amey LaFarge took over the recovery service in 2007. Based onwards on current successful recovery rates projected income can be increased.

(b) New Highways Management System -250 2008/09 Procurement of a replacement for the existing Hermis system onwards using capital funding in 07/08 and 08/09 will provide longer term revenue savings.

(c) Review Annual Financial Provisions -750 2008/09 The maturity of contracts and working relationships mean that onwards the need to hold contingency funding for unforeseen events reduces.

(d) Permanent Cat 1 Repairs -250 2008/09 The introduction of permanent repairs to pot holes to reduce the onwards number of "repeat" pot holes should save £250,000 per year..

(e) Strategic Management Team Reorganisation Following IWP -100 2008/09 Review onwards Reducing the size of the IWP community and streamlining processes will provide efficiencies and improve reliability.

(f) Net Increased Surplus From Speed Awareness Courses Work undertaken in the Road Safety Unit has significantly -100 2008/09 increased the number of people attending the speed awareness onwards courses it runs resulting in an increase in net income.

(g) New Franchise for the Provision of the Abbey Line Sunday -38 2008/09 Service onwards The new franchise arrangement provides for the Sunday service without the need for HCC subsidy.

(h) Reducing Admin Support by Reorganisation of Resources -69 2008/09 Opportunities have been identified across the department to onwards reorganise administrative support to deliver the same level of service with fewer resources.

(i) Review and Reconfigure Consultancy Development work on the final module of HERMIS relevant to -45 2008/09 Definitive Map work is complete and consultancy budget is no onwards longer required. The 2nd generation Highways Management System currently under development will include relevant rights of way modules from the outset so additional consultancy expenditure will not be required. 76 D:\Docs\2018-05-09\0ea2fce3a5f8edcdc26283d6c66b4ccd.doc APPENDIX 5C (continued) £’000

(j) Integrate Management / Landscape Following a minor restructuring it is possible to incorporate the -18 2008/09 management of the HBRC in to the Landscape service allowing onwards for the deletion of the currently vacant, part time, HBRC Team Leader position.

(k) Herts Forward Support: -5 2008/09 Agreement has been reached with Democratic Services for onwards them to take on the servicing of the three or four meeting of Herts Forward Core Group per year, saving £5,000 per year.

(l) LAA Performance Monitoring -15 2008/09 Agreement has been reached with the Corporate Performance onwards Team for them to take on the responsibility for LAA Performance Monitoring saving £15,000 per year.

(m) TravelWise: Combine with other Departmental Campaigns -5 2008/09 Savings will be achieved by ‘piggybacking’ the TravelWise onwards message on the printed material of other appropriate campaigns, thus reducing the amount of TravelWise material that is printed.

(n) Overhead Efficiencies Progress made through the reduction of car mileage and other -50 2008/09 support costs has made it possible to reduce cost without onwards reducing effectiveness.

Cashable Efficiency Savings –Other

(a) Increase income from NRSWA/TMA -100 2008/09 A steady income from S74's and inspections enables more to be onwards drawn down from the NRSWA account.

(b) Change Charging Policy for Post-Planning Development -200 2008/09 Control onwards A more systematic and transparent approach enables HCC to pass on its own costs for service as well as that of its consultant.

77 D:\Docs\2018-05-09\0ea2fce3a5f8edcdc26283d6c66b4ccd.doc APPENDIX 5C (continued) £’000

(c) Restructure Strategic Partnerships Unit -105 2008/09 Reshaping this unit will save £105,000 per year and create a onwards sharper focus on Hertfordshire Forward Support, Sustainable Community Strategy, Local Area Agreement Management, support for Lead Officers and liaison with District LSP’s. The team would no longer be involved in District-based Community Development work such as the Sopwell project in St Albans, the Peartree project in Welwyn Hatfield, working with the voluntary sector in Borehamwood, which have added value locally but are not specific HCC priorities. In future the work of the Unit would focus on improved communication and liaison between Hertfordshire Forward, District LSPs and 4 Strategic Partnerships, to ensure improved commitment and understanding of Herts Forward, the Sustainable Community Strategy and LAA targets, and ultimately put us in a strong position for future CAA.

(d) Increased Income – Rural Estates Anticipated additional income following programmed rent -40 2008/09 reviews of rural estate properties, sale of milk quota and onwards wayleaves for utilities and statutory undertakers.

(e) Increase Income – External Sources An estimate of the amount of additional income that may be -10 2008/09 secured from sources such as Natural England, District and onwards Borough Councils etc. This would be ‘core’ rather than project funding.

(f) Income Generation: Charge for Pre-application Advice -10 2008/09 Charge developers for pre-application highways development onwards control advice in line with a number of District Councils in Hertfordshire who are now charging for such advice. The charge will apply to proposed developments over 5 residential units or equivalent.

(g) Income Generation: Charge for Pre-application advice -5 2008/09 Would apply to Waste and Minerals applications and some onwards externally funded County Council applications. Based on 15 external applications and 5 HCC applications per annum with charges per application depending on complexity.

78 D:\Docs\2018-05-09\0ea2fce3a5f8edcdc26283d6c66b4ccd.doc APPENDIX 6

2008/09 STANDSTILL BUDGET - MOVEMENT STATEMENT BY SERVICE

Coroners, Registration, Crime & Emergency Drugs Planning and Education Children' Libraries, Strategy Fire & Trading Non- s Heritage Environment Central Adult Care Unit Rescue Standards Resources schools Services & Arts Items TOTAL £m £m £m £m £m £m £m £m £m £m £'000 Original Budget 2007/08 (less one-off 231.9 2.4 36.3 5.7 6.5 68.5 89.9 20.5 100.3 41.3 603.3 funding) Technical Adjustments 2007/08 (0.2) 0.0 0.0 (0.1) 2.9 (0.2) 0.1 (0.1) (0.4) (2.0) 0.0

Adjusted Budget 2007/08 231.7 2.4 36.3 5.6 9.4 68.3 90.0 20.4 99.9 39.3 603.3

Technical Adjustments 2008/09 0.4 0.0 0.0 0.1 (0.1) 0.0 0.0 0.0 0.0 0.0 0.4 Inflation 8.3 0.1 0.7 0.1 1.3 1.7 2.2 0.4 4.4 0.1 19.3

Base Budget 240.4 2.5 37.0 5.8 10.6 70.0 92.2 20.8 104.3 39.4 623.0

Pressures for Change: Previous Policy Decisions - 2007/08 & Prior 0.0 0.0 0.0 0.0 0.0 (0.1) 0.0 0.0 0.0 0.0 (0.1) Years Previous Policy Decisions - FYE of Previous (2.0) (0.2) 0.0 0.0 (1.5) (0.2) 0.0 (0.1) (0.2) 0.0 (4.2) Efficiencies Demography 7.6 0.0 0.0 0.0 0.0 0.0 5.3 0.0 (0.1) 0.0 12.8 Legislative Changes 0.2 0.0 0.0 0.1 0.0 0.0 0.9 0.0 3.8 0.2 5.2 Other Pressures 1.1 0.0 0.0 0.0 0.3 1.6 (0.4) 0.2 1.1 4.0 7.9 Total Pressures for Change 6.9 (0.2) 0.0 0.1 (1.2) 1.3 5.8 0.1 4.6 4.2 21.6 Funded from Grant 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 New Cashable Efficiency Savings (7.9) 0.0 (0.3) 0.0 (0.2) (2.2) (0.3) (0.1) (2.7) (0.1) (13.8)

STANDSTILL BUDGET 239.4 2.3 36.7 5.9 9.2 69.1 97.7 20.8 106.2 43.5 630.8

79 80 APPENDIX 7 PRESSURES FOR CHANGE 2008/09 Crime & Drugs Education Libraries, Adult Fire & Strategy Other Non- Children's Heritage Central Care Rescue Unit Services # Resources schools Services & Arts Environment Items TOTAL £'000 £'000 £'000 £’000 £'000 £'000 £'000 £'000 £'000 £'000 £’000 Previous Policy Decisions: 2006/07 & Prior Years: Denominational transport (126) (126) Total Previous Policy Decisions 0 0 0 0 0 (126) 0 0 0 0 (126) Demography: Elderly 3,215 3,215 Learning Disability 2,709 2,709 Physical Disability 854 854 Mental Health 828 828 Transport For Howe Dell pupils upon move of building (8) (8) Mainstream HTST Children with Disabilities – Direct Spend 1,750 1,750 Independent Placements 3,200 3,200 Higher Education sponsorship for Children in Care 31 31 Adoption Service 294 294 Reassessed Demographic Pressures for Waste (300) (300) Growth Road length increases - routine maintenance 190 190 Total Demography 7,606 0 0 0 0 (8) 5,275 0 (110) 0 12,763 Legislative Changes: Implementation of the Working Time Directive ( April 250 250 2007 Copyright, Designs and Patents Act 82 82 Feed Hygiene Enforcement on farms 9 9 Home Information Pack legislation 43 43 Residential Homes 283 283 Safeguarding Children 89 89 Integrated Children’s System 200 200 Leaving Care 305 305 Access to records 28 28 Conciliation & Advice (47) (47)

81 APPENDIX 7 (continued) Landfill tax 3,553 3,553 Commons Act 2006 25 25 Historic Environment Act 2008 25 25 Traffic Management Act - Signals Check 50 50 Aggregates Tax 60 60 Natural Environment & Rural Communities Act 2006 10 10 Changes Working Time Directives 225 225 Total Legislative Changes 250 0 0 134 0 0 858 0 3,723 225 5,190 Other Pressures: Business Rates 4 (7) 1 26 4 2 17 5 52 Local Government Pension Scheme 381 27 3 34 144 350 150 90 169 210 1,558 Revenue Effects of Capital 287 38 325 Revenue Effects of Telecom 54 2 148 103 3 14 (56) 268 Capital Payback 86 (2) (41) (27) 42 714 772 Reduce EPD staffing compared with 2007/08 (400) (400) Supporting People VFM and ineligible services 667 667 Potters Bar rail inquest (30) (30) Updating IT for flexible working in line with TW3 4 4 Citizens Panel 20 20 SEN HTST 1,118 1,118 Capacity Building Team (100) (100) PFI Preparation (345) (345) Hertfordshire Adult & Family Learning Service (HAFLS) - Springfield 101 101 Waste treatment procurement 100 100 Local Transport Plan 3 40 40 Capital Financing & Interest on Balances 2,005 2,005 Office Rationalisation Project 354 354 Office Rationalisation Project - additional funding requirement (1,356) (1,356) LPSA 2,700 2,700 Environment Agency: Thames Region 161 161 Environment Agency: Anglian Region 6 6 Business Rates 4 (7) 1 26 4 2 17 5 52 Total Other Pressures 1,079 18 3 49 297 1,676 (320) 152 1,042 4,024 8,020 TOTAL PRESSURES FOR CHANGE 6,925 18 (197) 155 (1,245) 1,333 5,813 50 4,521 4,249 21,622 # Other Services include: Trading Standards, Registration, Coroners & Emergency Planning

82 APPENDIX 8 EFFICIENCY SAVINGS 2008/09 Crime & Drugs Education Libraries, Adult Fire & Strategy Other Non- Children's Heritage Environment Central Care Rescue Unit Services # Resources schools Services & Arts Items TOTAL £'000 £'000 £'000 £’000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Cashable (Gershon): Hertfordshire Partnership NHS Foundation Trust to (1,000) (1,000) absorb demographic pressures and make efficiencies Restricting increases in fees paid to care providers (2,500) (2,500) Review in house provision with high unit costs (350) (350) Individual budgets for Older People (1,500) (1,500) Reduction in CLDT staffing (60) (60) Reconfiguration of external LD contracts (500) (500) Savings on Strategic & Centre Units (300) (300) Efficiency Savings to Various Budgets (250) (250) Administration staff costs due to better processes (11) (11) Office Supplies and services - increased use of WWW (5) (5) Strategy and Resources portfolio (88) (88) ICT Equipment (60) (60) Standards & Schools Effectiveness Advisory Services (144) (144) Area Specialist Adolescent Teams (130) (130) Specialist Advisory Service (18) (18) Participation Team Efficiencies (46) (46) Central Placement Service (14) (14) Phoenix (216) (216) Libraries Management System (65) (65) Recharge PC Leasing (29) (29) Increase income from Third Party Recoverables (500) (500) New Highways Management System (250) (250) Review Annual Financial Provisions (750) (750) Limit Budget and Manage Cat 1/Cat 2 Holistically - (250) (250) Tranche 1 Potholes SMT Reorganisation Following IWP Review (100) (100) Net Increased Surplus - Speed Awareness Courses (100) (100) New Franchise for the Provision of the Abbey Line (38) (38) Sunday Service Reduce admin support by Reorganisation of (69) (69) Resources Review and reconfigure consultancy (HERMIS (45) (45) development) 83 Crime & Drugs Education Libraries, Adult Fire & Strategy Other Non- Children's Heritage Environment Central Care Rescue Unit Services # Resources schools Services & Arts Items TOTAL £'000 £'000 £'000 £’000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Intergrate management / landscape (18) (18) Doing Things Differently: Herts Forward Support (5) (5) Doing Things Differently: LAA Performance (15) (15) Monitoring TravelWise Combined With Other Campaigns (5) (5) General Reductions in Overheads Through Increased (50) (50) Efficiencies PC Purchase Savings (TBC) (172) (172) Senior Management Reorganisation (156) (156) Hertfordshire Partnership NHS Foundation Trust to (1,000) (1,000) absorb demographic pressures and make efficiencies Subtotal: Cashable (Gershon) (6,210) (250) 0 (16) (156) (486) (230) (94) (2,195) (172) (9,809) Cashable (Other): Ensure that all clients, especially Older People and People with a PD receive Continuing Care funding (1,000) (1,000) where appropriate Increase charges for Non-residential Services to more (700) (700) closely reflect actual cost of the service provided Reduction in food sampling budget (10) (10) Reduction in safety and fair trading sampling budgets (5) (5) Furniture (5) (5) Criminal Records Bureau checks in schools (580) (580) Mainstream Home to School Transport (309) (309) Dual Use (498) (498) Gifted and Talented Advisory (98) (98) Schools HR re-organisation budgets (126) (126) Youth Service (100) (100) Youth Offending Team (73) (73) Change charging policy for Post-Planning (200) (200) Development Control Increase income from NRSWA/TMA (100) (100) Increase income - Rural Estates (40) (40) Increase income (10) (10) Income Generation: Charge for Pre-Application (10) (10) Advice (Dev Cont) Income Generation: Charge for Pre-Application (5) (5) Advice (Waste/Minerals) Restructuring Strategic Partnerships Unit (105) (105) Subtotal: Cashable (Other) (1,700) 0 0 (20) 0 (1,711) (73) 0 (470) 0 (3,974) 84 Crime & Drugs Education Libraries, Adult Fire & Strategy Other Non- Children's Heritage Environment Central Care Rescue Unit Services # Resources schools Services & Arts Items TOTAL £'000 £'000 £'000 £’000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 FYE of Previous Cashable Efficiencies (Gershon): Individual budgets for Older People (500) (500) Re-tendering Homecare Contract (Goldsborough) (630) (630) Enabling Homecare (50) (50) Individual banded budgets for Learning Disability (180) (180) Placements Expert purchasing of care placements for Learning (500) (500) Disabilities Increase Extra Care (100) (100) Better procurement & individual budgets for Physical (50) (50) Disability HR, IT & Finance Transformation savings (1,542) (1,542) Home to School Transport (120) (120) Learners & Adolescent Services - Local Areas (84) (84) Strategic management savings 8 8 Consortia travel arrangements (13) (13) Reduction in Bibliomondo contract (5) (5) Schools Library Service (69) (69) ICT charging (28) (28) New Change of Name Service (28) (28) Carriageway Condition Surveys (134) (134) Reduction in HCC contribution in respect of PCSOs (200) (200) Subtotal: FYE of Previous Cashable Efficiencies (Gershon) (2,010) 0 (200) (28) (1,542) (209) 0 (102) (134) 0 (4,225) TOTAL CASHABLE EFFICIENCY SAVINGS (Incl. (9,920) (250) (200) (64) (1,698) (2,406) (303) (196) (2,799) (172) (18,008) FYE of Previous Cashable Efficiencies)

# Other Services includes: Trading Standards, Registration, Coroners and Emergency Planning

85 86 APPENDIX 9 Capital Programme - Preferred Cashflows on all Major Schemes

Service Scheme Description and Location Start Date Gate- Funding Source Total 2008/09 2009/10 2010/11 Priority way Band £'000 £'000 £'000 £'000 ADULT CARE SERVICES 1 Annual Provisions 01/04/2008 general programme: new 148 148 148 2 IRIS - Future Development 01/04/2006 general programme: existing 3,100 600 500 LD Housing & Support Strategy - 3 01/10/2007 general programme: existing 1,500 625 High Needs Supported Living Day Centre Modernisation - phase II 4 (Geddings, Leyden House, Jarman, 01/04/2006 capital receipt 4,500 1,500 1,500 Butterwick) Gypsy Sites Refurbishment Barley 5 01/01/2008 Mow and Dyes Lane: Government Grant 75% capital grant 538 538 HCC contribution 25% general programme: new 179 179 Gypsy Sites Refurbishment Watling 5 01/06/2008 Street, Sandy Lane: Government Grant 75% capital grant 990 990 HCC contribution 25% general programme: new 330 330 Service Total 11,137 4,910 2,148 148

CSF EDUCATION (SCHOOLS) A Howe Dell 2003 5 general programme: existing 25 25 - - Hemel Hempstead - Specialist Pre-G general programme: new 100 A 100 - - diploma - Creative Media 1 capital grant 863

Building Schools for Future A general programme: new 3,000 1,000 1,000 1,000 procurement Key Stage 4 Learning Centres: A Hitchin June '06 5 general programme: existing 750 38 - - A Chessbrook Feb '07 2 general programme: existing 750 38 - -

87 APPENDIX 9 (continued)

Capital Programme - Preferred Cashflows on all Major Schemes

Service Scheme Description and Location Start Date Gate- Funding Source Total 2008/09 2009/10 2010/11 Priority way Band CSF EDUCATION (SCHOOLS) A Broxbourne March ‘08 general programme: existing 750 488 37 - general programme: additional funding 750 750 A Schools Access Initiative On-going Various general programme: existing 2,788 1,394 - - A Brookmans Park March ‘07 Pre-G1 general programme: existing 175 140 - - A Francis Bacon general programme: existing 150 120 - - A Simon Balle July ‘06 4 general programme: existing 200 160 - - A The Links Education Support Centre general programme: existing 300 240 - - Primary Area Reviews: A Hoddesdon/ Wormley Apr ‘06 4 capital receipt 3,843 2,461 75 - A Potters Bar May ‘06 3 capital receipt 2,340 1,210 50 - A Hemel Hempstead Pre-G1 capital receipt 4,600 3,300 100 - A Hatfield Pre-G1 capital receipt 2,970 330 - - A Turnford School 2003 5 capital grant 6,207 678 - - general programme: additional funding 120 120 A Birchwood School 2003 4 capital grant 12,472 803 - - A Bernards Heath Infants’ School Pre-G1 general programme: new 400 360 40 - A Letchworth and Harpenden reviews Pre-G1 general programme: new 3,000 750 2,100 150 A St Albans –New Primary Places Pre-G1 general programme: new 11,400 400 7,000 4,000 KS4 Centres -Establishing KS4 A Pre-G1 general programme: new 750 187 525 38 centres in St Albans KS4 Centres -Establishing KS4 A Pre-G1 general programme: new 350 200 150 - centres in Dacorum Alma Rd – Relocation of County A 1 capital receipt 550 550 - - Music Studio.

88 APPENDIX 9 (continued) Capital Programme - Preferred Cashflows on all Major Schemes

Service Scheme Description and Location Start Date Gate- Funding Source Total 2008/09 2009/10 2010/11 Priority way Band CSF EDUCATION (SCHOOLS) A New Borehamwood Multipurpose 2.5 capital receipt 1,200 800 400 - Centre contributions from third parties 939 700 239 - A 2.5 general programme: new 1,046 793 253 New Borehamwood Multipurpose Capital grant 500 500 Centre - Library contributions from third parties 151 151 A 1 capital receipt 300 300 Watford High St Integrated Youth Service Centre contributions from third parties 54 54 general programme: new 200 200 Boxmoor House -New' special school Pre-G A general programme: new 1,800 90 1,260 450 provision 1 A Highfield -Sports Hall 2 general programme: new 1,770 1,303 197 1,000 1,000 Bishop Stortford Secondary A general programme: additional funding 200 preparation work Sir John Lawes -Seperation of wood Pre-G A general programme: new 200 150 50 - preparation 1 Food safety - School Kitchens -H&S Pre-G A general programme: new 236 236 - - (food hygiene) non compliance 1 Hemel Hempstead (The) -Food B 1 general programme: new 730 183 511 36 Technology provision Thundridge -Replacement of double Pre-G B general programme: new 600 150 420 30 mobile classroom 1 Ponsbourne St Mary's -New B 1 general programme: new 263 210 53 - classroom Woolenwick -Remodel of open plan Pre-G B general programme: new 420 336 84 - classrooms 1 Beech Hyde -Remodel of open plan B 1 general programme: new 368 294 74 - classrooms

APPENDIX 9 (continued) 89 Capital Programme - Preferred Cashflows on all Major Schemes

Service Scheme Description and Location Start Date Gate- Funding Source Total 2008/09 2009/10 2010/11 Priority way Band CSF EDUCATION (SCHOOLS) First Package of Science: - B Chancellors 4 general programme: new 409 292 82 - B Fearnhill 4 general programme: new 402 286 80 - B Priory 4 general programme: new 416 271 83 - B Sele 4 general programme: new 397 284 79 - Second half of Science: - B St Albans Girls School 4 general programme: new 397 283 79 - B Sandringham 4 general programme: new 374 267 75 - B Cavendish 4 general programme: new 408 291 82 - B Chauncy 4 general programme: new 318 263 55 - First half of staff and admin: - B Woolgrove 1 general programme: new 320 256 64 - B Camps Hill 2 general programme: new 230 184 46 - B Stonehill 1 general programme: new 220 176 44 - B Hartsfield JMI 2 general programme: new 190 152 38 - B Mount Pleasant Lane JMI 1 general programme: new 190 152 38 - B Abbots Langley Pre-G1 general programme: new 184 147 37 - B Newberries 1 general programme: new 165 132 33 - B Hartsbourne 1 general programme: new 165 132 33 - B Eastbury Farm 1 general programme: new 185 148 37 - Second half of staff and admin: - C Kimpton 1 general programme: new 158 126 32 - C Morgans JMI 1 general programme: new 184 147 37 - C Wheatcroft Primary 1 general programme: new 184 147 37 - C Priors Wood 1 general programme: new 158 126 32 - C Redbourn Junior 1 general programme: new 158 126 32 - C Thorn Grove 1 general programme: new 158 126 32 - C Spellbrook Primary 1 general programme: new 123 98 25 - C Broadfield Junior School 1 general programme: new 336 168 168 -

Service Scheme Description and Location Start Date Gate- Funding Source Total 2008/09 2009/10 2010/11 Priority way Band CSF EDUCATION (SCHOOLS) C Graveley –Replacement of mobiles Pre-G1 general programme: new 525 132 368 26 C Edwinstree –Changing rooms Pre-G1 general programme: new 250 63 175 12 C De Havilland –Car parking Pre-G1 general programme: new 210 53 147 11 Sir John Lawes –Replacement of C Pre-G1 general programme: new 1,600 460 1,050 90 mobiles Aycliffe Drive –Replacement of C Pre-G1 general programme: new 500 125 350 25 nursery mobile and staff and admin D Presdales –Sports Hall 2.5 general programme: new 2,570 245 2,100 225 summer D Beaumont School –Sports Hall Pre-G1 general programme: new 2,675 552 1,947 176 2008 D Chauncy –Specialist Teaching Block 1 capital receipt 3,463 300 3,000 146 summer D Roundwood Park –Sports Hall Pre-G1 general programme: new 2,675 560 1,935 180 2008 D Verulam School, new 6th Form Block contributions from third parties 1,300 860 - - summer D Verulam School -6th Form Block Pre-G1 general programme: additional funding 900 180 675 45 2008 - Devolved formula capital Capital grant 23,557 23,507 23,507 - Extended schools Capital grant 1,700 1,700 931 - ICT Harnessing Technology Capital grant 4,080 3,892 3,851 Service Total 94,677 60,288 57,495 34,929

CSF – LIBRARIES, HERITAGE & ARTS Replacement of Library Issues/return 1 stations Apr-08 N/A general programme: new 1,879 1,879 Libraries for the 21st Century: 1 Hertford Library Jun-08 pre G1 general programme: additional funding 1,033 118 capital receipt 460 10 1 Oxhey Library Oct-08 pre G1 capital grant 1,424 1,238 84 general programme: new 64 1 Sawbridgeworth Library Jun-08 Pre G1 general programme: existing 204 22

Service Scheme Description and Location Start Date Gate- Funding Source Total 2008/09 2009/10 2010/11 Priority way Band CSF – LIBRARIES, HERITAGE & ARTS 1 Harpenden Library general programme: new 2,267 1,117 1,150 capital receipt 750 750 contributions from third parties 8 8 3 Ware Library Aug-08 pre G1 general programme: new 1,506 679 800 27 capital receipt 500 500 4 Bushey Library Apr-08 pre G1 general programme: new 305 305 contributions from third parties 41 41 Service Total 10,377 5,917 2,848 27

COMMUNITY SAFETY – FIRE & RESCUE 1 Stevenage Fire Station * general programme / capital receipt To be developed Service Total - - - * Note: Options for the replacement of Stevenage Fire Station are currently being explored. It is hoped that a fully self financing scheme may be feasible. Once the preferred option has been selected this may be brought forward for Cabinet consideration at any point during the year. COMMUNITY SAFETY – OTHER Hatfield Reg office 08/09 general programme: new 96 96 - - Hitchin Reg office 08/09 general programme: new 84 84 - - Service Total 180 180 - -

RESOURCES (CORPORATE SERVICES) 1 The Way We Work Programme 04/05 capital receipt 35,676 1,200 200 1 Support Services Transformation 08/09 general programme: existing 4,265 820 2 Whole Estate Review 07/08 general programme: existing 1,000 325 325 - 2 County Hall upgrade Transformation 08/09 capital receipt 3,094 3,094 - - Electronic Documents and Records 08/09 general programme: new 2,303 1,100 601 601 2 Management System 3 Installation of traffic barriers 08/09 pre G 1 general programme: new 165 165 - 3 Planning Obligation Data base S106 08/09 general programme: new 120 120 4 Time recording system 08/09 general programme: new 100 100 4 Corporate Complaints 08/09 general programme: new 85 85 Service Total 46,808 7,009 1,126 601

Service Gate- Priority Scheme Description and Location Start Date Funding Source Total 2008/09 2009/10 2010/11 way Band ENVIRONMENT Structural Maintenance – Non 1A Principal Roads Ongoing general programme: existing 32,760 10,920 10,920 10,920 Structural Maintenance – Principal 1A Roads Ongoing general programme: existing 13,650 4,550 4,550 4,550 2B Work to Secure LTP Funding Ongoing general programme: existing 330 110 110 110 2A Road Marking Refurbishment Ongoing general programme: existing 960 320 320 320 3A Street Lighting Refurbishment Ongoing general programme: existing 1,440 480 480 480 1B Disabled Crossing Facilities Ongoing general programme: existing 1,140 380 380 380 Rights of Way – Management of the 1A Network Ongoing general programme: existing 960 320 320 320 Street Lighting – Emergency Column 1A Replacement Ongoing general programme: existing 2,520 840 840 840 2A Next Generation Hermis Ongoing general programme: existing 360 260 100 1B Bridge Parapet Upgrading Ongoing general programme: existing 1,380 460 460 460 general programme: additional funding 1,390 150 620 620 2A Safety at Road/Rail Interfaces Ongoing general programme: existing 450 150 150 150 LTP – Maintenance – Roads & 1A Footways * Ongoing general programme: existing 18,210 6,070 6,070 6,070 capital grant 12,150 4,050 4,050 4,050 1B LTP - Maintenance – Bridges * Ongoing general programme: existing 2,580 860 860 860 capital grant 1,710 570 570 570 1A to 3B LTP - Integrated Transport * Ongoing general programme: existing 14,850 4,950 4,950 4,950 capital grant 9,180 3,060 3,060 3,060 general programme: additional funding 14,680 4,150 5,430 5,100 1A LTP - Baldock Bypass Ongoing capital grant 3,346 1,800 1,300 246 Section 106 - Speed Limit 2A Compliance Ongoing contributions from third parties 690 690 Section 106 - Mode Share of 2B Journeys to School Ongoing contributions from third parties 32 32 2A Royston Rail Crossing April '08 general programme: new 3,350 130 2,670 550

Service Gate- Priority Scheme Description and Location Start Date Funding Source Total 2008/09 2009/10 2010/11 way Band ENVIRONMENT 3B Over-height detection at rail bridges April '08 general programme: new 245 245 2B Household Waste Recycling Centres Ongoing general programme: new 3,750 1,250 1,250 1,250 Work to Secure and Contribute to 2B GAF/CIF etc funding April '08 general programme: new 2,850 950 950 950 3B Lighting Energy April '08 general programme: new 60 60 1B Bridge strengthening & maintenance 394 1,456 2,380 1A Capital detrunking 1,775 1A Road Safety Cameras 475 486 479 Service Total 145,023 50,451 52,352 49,665 Notes: * The additional funding amounts are the amounts required to get back to the figures included in the County Council’s approved Local Transport Plan. * The grant figures presented in the table for LTP maintenance and integrated transport do not take account of the LTP settlement detail announced on 27 November 2007. The settlement now indicates that the grant will be available to support LTP maintenance . The list grant to support integrated transport schemes has now increased to £3.837m.

Total Capital bids for all services 312,702 96,774 84,928 54,222

94 APPENDIX 9 (continued) 2008/09 Annual Provisions Scheme Description and Location 2008/09 2009/10 2010/11 £'000 £'000 £'000

ADULT CARE SERVICES Planned Maintenance 562 562 562 Minor Works 110 110 110 Minor Adaptations 280 280 280 Total Annual Provisions 952 952 952

CSF EDUCATION (SCHOOLS) Minor works 925 925 925 Structural Repairs and maintenance 13,717 13,717 13,717 Mobile Classrooms 460 460 460 Health and Safety 378 378 378 Feasiblity studies 24 24 24 School meals Equipment 647 647 647 Music service instrument purchase 25 25 25 Total Annual Provisions 16,177 16,177 16,177

CSF (LIBRARIES, HERITAGE & ARTS) Planned Repairs and Maintenance 155 155 155 Library Automation 196 196 196 Public PC provision 176 176 176 Libraries Security, Risk Management & Health and Safety 12 12 12 Minor Refurbishments to a number of Libraries and HALS 81 81 81 Total Annual Provisions 620 620 620

95 APPENDIX 9 (continued) 2008/09 Annual Provisions Scheme Description and Location 2008/09 2009/10 2010/11 £'000 £'000 £'000 COMMUNITY SAFETY - Fire and Rescue Repairs & Maintenance 215 215 215 Equipment 92 92 92 IT Equipment 148 148 148 Total Annual Provisions 455 455 455

COMMUNITY SAFETY - Other Trading Standards 26 26 26 Registration 20 20 20 Total Annual Provisions 46 46 46

RESOURCES (CORPORATE SERVICES) Vehicle purchasing 3,183 3,183 3,183 PC purchasing 1,200 1,200 1,200 Land Purchase, Feasibility Studies, Rationalisation Schemes & Development Opportunities Fund, of 1,119 1,119 1,119 wich Smallford Pit, St Albans exceeds £50,000. Energy Conservation 229 229 229 Civic Buildings 1,106 1,106 1,106 Civic Buildings -Health & Safety 146 146 146 ICT: Core network infrastructure, which underpins and supports the growing demands being placed on the data network to meet service needs. Technical Security capacity upgrade is the only item 417 417 417 exceeding £50,000 Total Annual Provisions 7,398 7,398 7,398

96 APPENDIX 9 (continued) 2008/09 Annual Provisions Scheme Description and Location 2008/09 2009/10 2010/11 £'000 £'000 £'000 ENVIRONMENT Sustainable Transport Policies (note 1) 1,502 1,502 1,502 HWRC Improvements (note 2) 144 144 144 Environmental Management 85 85 85 Total Annual Provisions 1,731 1,731 1,731 Notes: 1. Contributions towards larger schemes that are part financed through the LTP. Whilst individual projects are often over £50,000, funding from this budget to each project are not. 2. This budget is usually used to fund minor improvements of less than £50,000 each at the county council's 19 Household Waste Recycling Centres. However, it is occasionally used to contribute towards more significant developments as and when opportunities arise.

TOTAL ANNUAL PROVISIONS 27,379 27,379 27,379

Projected Capital spend required to release receipts 2,500 7,000 6,000

Total bids, annual provisions and spend to release receipts 158,634 150,348 118,749

97 APPENDIX 10

GLOSSARY OF TERMS

ANNUAL PROVISIONS Capital expenditure on minor capital works, of a non- routine nature, such as repairs and refurbishment schemes. These are generally funded from the revenue budget.

BASE BUDGET The original budget 2007/08 plus technical adjustments and inflation.

BEST VALUE The budget adjusted to incorporate the requirements of the CIPFA Best Value Accounting Code of Practice (BVACOP), to allow greater consistency between authorities for Best Value comparisons.

BUDGET REQUIREMENT The planned spending of the authority after deducting any funding from reserves and income (other than general funding from the government).

BUSINESS RATES These rates are levied on businesses based on the rateable value of the property occupied. This is then paid into a central pool and redistributed to all local authorities and police authorities on the basis of population.

CAPITAL CHARGES A charge covering fixed assets used in the provision of the service.

CAPITAL PROGRAMME The Council’s three-year plan for capital expenditure on both major capital schemes and minor capital works.

CAPITAL RECEIPTS Proceeds from the sale of land, buildings or other capital assets. Capital receipts are used to repay the debt outstanding on assets financed from loans, and to finance new capital expenditure. The receipts cannot be used to finance revenue expenditure.

CAPPING The process where the Government limits an authority’s budget requirement because it is deemed excessive or deemed to be an excessive increase over the previous year.

COLLECTION FUND A surplus/deficit arising from either more or less SURPLUS/DEFICIT council tax than expected being collected by the district councils.

98 APPENDIX 10 (cont’d)

COUNCIL TAX A local tax set by local authorities in order to meet their budget requirement. The tax is levied on households and amount payable is based on the value of the domestic property.

COUNCIL TAX BENEFIT Assistance provided by billing authorities to adults on low incomes to help them pay their council tax bill. Below a guideline increase in council tax the cost to local authorities is largely met by government grant, but above the guideline increase authorities must contribute to the additional cost of council tax benefit on a sliding scale up to 100%.

DEDICATED SCHOOLS A ring fenced grant introduced in 2006/07 to fund GRANT (DSG) school spending.

DEMOGRAPHY Used in context of pressures for growth on the budget, resulting from changes in the population if the cost of care per person is not changed year to year.

DIRECT REVENUE Resources provided from the revenue budget to FINANCING finance the cost of capital projects.

FINANCING CHARGES Charges borne by the revenue budget to meet the cost of financing the council’s capital expenditure. These charges include the principal and interest elements of loans outstanding, leasing rentals and direct revenue financing.

FLOORS A method by which stability in funding is protected through limiting the effect of wide variations in grant increase. A floor guarantees a fixed level of increase in grant. The grant increases of authorities who are above the floor are scaled back by a fixed proportion to help pay for the floor.

FORMULA GRANT An individual authority’s Revenue Support Grant and redistributed business rates.

FOUR BLOCK MODEL Introduced in 2006/07 to distribute formula grant to local authorities. The model contains four blocks: relative needs, resources, central allocation and damping.

FRS17 PENSION To comply with the Code of Practice on Local Authority ADJUSTMENT Accounting, service figures within the final 2005/06 budget will need to be adjusted to reflect Financial Reporting Standard 17 (FRS17) on Retirement Benefits. These changes are designed to ensure that financial statements reflect at fair value the assets and liabilities underlying the employer’s obligations relating to retirement benefits. These adjustments do not affect the council’s bottom-line budget.

FORMULA SPENDING A series of formulae used by the government from SHARE (FSS) 2003/04 to 2005/06 to divide up resources according to councils’ relative needs and circumstances. From 1990/01 to 2002/03 this was done using Standard Spending Assessments.

FULL YEAR EFFECT The impact of a previous policy decision implemented part way through the year on future spending that has not been allowed for in the base budget.

GROWTH Additional expenditure which increases the quality or volume of service.

INFLATION The additions made to the budget each year to take account of pay and price increases.

LOCAL GOVERNMENT The annual determination of local authority spending FINANCE SETTLEMENT made by the Government and debated by Parliament. It includes details of the amount of central Government support for spending and how it will be distributed amongst local authorities.

ORIGINAL BUDGET The original estimate cost of services for the financial 2007/08 year from April to March

OUTTURN PRICES A budget is at outturn prices if it includes provision for the effect of all pay and price increases expected during the year.

PAY INFLATION Pay inflation includes the additional cost of the previous year’s pay awards and any part year cost of the budget year’s awards.

PRICE INFLATION In any year there is a year on year cost increase equivalent to forecast change in the published retail price index.

PRESSURES FOR Those items required to achieve the same level of CHANGE service as last year, including demography, new legislation, increments, and increased employer’s pension contributions.

PREVIOUS POLICY The additional costs falling on the new budget that DECISIONS arose from decisions taken in previous budgets.

PRUDENTIAL Indicators relating to capital expenditure, external debt INDICATORS and treasury management, together with other information, in order to demonstrate that local authority capital spending plans are affordable, prudent and sustainable.

RECHARGES The transfer of costs from one account to another. Part of the cost of Central Services is recharged/transferred to the service departments that use them, e.g. The cost of legal work completed by County Secretary’s for Children, Schools & Families will be recharged to the Children, Schools & Families budget.

RELATIVE NEEDS A series of formulae used by the government to divide FORMULA (RNF) up resources according to councils’ relative needs and circumstances.

RESERVES Sums set aside to meet revenue or capital expenditure needs in the future without being earmarked for any particular service or projects. Reserves offer scope for greater flexibility in financing future expenditure.

REVENUE BUDGET An estimate of annual income and expenditure which sets out the financial implications of the Council’s policy for the year.

SPECIFIC GRANTS Government grants to local authorities for particular projects or services.

SPENDING REVIEW The public expenditure planning process introduced by the government in 1997 to replace the system of annual public expenditure surveys. Each Spending Review covers a three year period. The last one was in July 2004 and the next one is due in 2007.

STANDSTILL BUDGET The total budget that would be required to maintain services at the previous year’s levels. These figures include efficiency savings but are before changes are made as a result of policy decisions.

101 APPENDIX 10 (continued)

SUPPORTED Government support for local authority capital BORROWING investment delivered through on-going revenue support (formula grant).

SUPPORTED CAPITAL Government support for local authority capital EXPENDITURE (SCE) investment is delivered through a combination of ongoing revenue support and capital grants.

TAX BASE A measure of the ability to raise council tax in the county. It is the sum of estimates made by finance officers in district councils of the number of Band D equivalent properties on which council tax is expected to be paid.

TECHNICAL These refer to changes relating to transfer of function, ADJUSTMENTS change in funding or changes in responsibility between departments.

UNSUPPORTED Local authority borrowing for capital purposes which BORROWING the Government is not prepared to fund is known as unsupported borrowing.