COMMITTEE REF:
REF: EX/06(B)/20
NOTICE OF MEETING
COMMITTEE : EXECUTIVE
DATE : MONDAY, 29 JUNE 2020
TIME : 18:00
PLACE : VIRTUAL MEETING VIA *SKYPE ,
COUNCILLORS : SIMMONS (CHAIR) A. KHAN BURNETT MALCOLM CASTLEMAN K. MALIK J. HUSSAIN SHAW M. HUSSAIN TIMONEY
QUORUM : 3 MEMBERS
Name (01582 546070) Email angela.fraser@luton.gov.uk
Skype Meeting Link
Item Description
INFORMATION FOR THE PUBLIC
PURPOSE: The Executive is the Council’s primary decision-making body dealing with a range of functions across the Council’s activities and services.
*SKYPE: During the Covid 19 emergency period, this meeting will take place virtually, via Skype. To access the meeting, please click on the link to the meeting above.
Page 1 of 177 AGENDA
Agenda Subject Page Item No.
1. APOLOGIES FOR ABSENCE
2. PUBLISHED RECORD OF THE MEETING (TO BE SIGNED IN DUE COURSE)
None this time.
SECTION 106, LOCAL GOVERNMENT FINANCE ACT 1992
Those item(s) on the Agenda affected by Section 106 of the Local Government Finance Act 1992 will be identified at the meeting. Any Members so affected is reminded that (s)he should disclose the fact and refrain from voting on those item(s).
DISCLOSURES OF INTERESTS
Members are reminded that they must disclose both the existence and nature of any disclosable pecuniary interest and any personal interest that they have in any matter to be considered at the meeting unless the interest is a sensitive interest in which event they need not disclose the nature of the interest.
A member with a disclosable pecuniary interest must not further participate in any discussion of, vote on, or take any executive steps in relation to the item of business.
A member with a personal interest, which a member of the public with knowledge of the relevant facts would reasonably regard as so significant that it is likely to prejudice the member’s judgment of the public interest, must similarly not participate in any discussion of, vote on, or take any executive steps in relation to the item of business.
Disclosable pecuniary interests and Personal Interests are defined in the Council’s Code of Conduct for Members and Co-opted members.
3. BUSINESS NOT COVERED BY CURRENT FORWARD PLAN: GENERAL EXCEPTION
The Executive Leader to report on any business which it is proposed should be considered by the Executive following compliance with Regulation 10 of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012.
4. BUSINESS NOT COVERED BY CURRENT FORWARD PLAN: SPECIAL URGENCY
Page 2 of 177
The Executive Leader to report on any business which it is proposed should be considered following compliance with Regulation 11 of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012.
5. REFERENCES FROM COMMITTEES AND OTHER BODIES
6. RECOMMENDATIONS FROM SCRUTINY REVIEWS
7. PETITIONS
BUSINESS ITEMS
CUSTOMER & COMMERCIAL (FINANCE)
8. Emergency Budget Report 5 - 69 (Report of the Service Director, Finance & Audit)
9. Summary Provisional Revenue Capital Outturn Report 70 - 116 2019-20
(Report of the Service Director, Finance & Audit)
PLACE & INFRASTRUCTURE (BUILDING ECONOMIC GROWTH)
10. Library Strategy 117 - 177 (Report of the Service Director, Healthy Lives, Children's Joint Commissioning)
11. REGULATION 4 OF THE LOCAL AUTHORITIES (EXECUTIVE ARANGEMENTS)(MEETINGS & ACCESS TO INFORMATION)(ENGLAND) REGULATIONS 2012 To consider whether to pass a resolution under Regulation 4 of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012 to exclude the public from the meeting during consideration of the item(s) listed below as it is likely, that if members of the public were present during the transaction of the item(s), exempt information within the meaning of the Paragraph(s) of Part 1 of Schedule 12A to the Local Government Act 1972 indicated next to the item, would be disclosed to them.
NOTE: RESCHEDULED ITEMS
Note: Five days’ notice is hereby given of items to be considered in private as required by Regulations (4) and (5) of the Local Authorities (Executive Arrangements) Meetings and Access to Information) (England) Regulations 2012.
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Details of any representations received by the Executive about why any of the above exempt decisions should be considered in public: none at the time of publication of the agenda. If representations are received they will be published separately, together with the statement given in response.
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Report For: Executive Item No: Date: 29 June 2020 Report Of: Service Director – Finance & Audit 8 Report Author: Dev Gopal
Subject: Emergency Budget Report 2020/21 Lead Executive Cllr Malcolm Member(s): Wards Affected: All Consultations: Councillors ☒ Scrutiny ☒ Stakeholders ☐ Others ☐
Recommendations 1 The Executive is recommended to:
(I) Approve the revisions to the 2020/21 revenue estimates of net expenditure as set out in Appendix A taking into account the impact of COVID-19 and expenditure properly incurred to date for submission to Council.
(II) Approve use of reserves of up to £13.4m over two years (£10.4m for 2020/21), as set out in Appendix A, for submission to Council.
(III) Delegate authority to the Chief Executive in consultation with the S151 Officer and Finance portfolio holder to allocate the reserves based on progress made on the stabilisation plan.
(IV) Approve the revisions to the Capital Programme set out in Appendix B for submission to Council, noting that those projects relating to additional debenture loans to London Luton Airport Limited require specific Executive approval before they proceed, based on appropriate reports and scrutiny.
(v) Approve the revisions to the Treasury Management Strategy and note the impact in 2020/21 is not significant due to postponement of capital projects amounting to £64.23m.
(VI) Approve the list of in-year savings proposals set out in Appendix C for submission to Budget Council, and approve the service changes necessary to give effect to those savings subject to appropriate consultation taking place and being properly considered.
(VII) Approve the additions to the Budget Risk Management Strategy set out in paragraphs 35 and 37 below, for submission to Council.
(VIII) Approve the provisions set out in the Revenue Budget Management section, paragraph 40 and 42 below, for management of the budget in the circumstances
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of the additional financial risks arising as a result of the COVID-19 emergency, for submission to Council.
(IX) Note the additional support from Central Government to businesses and community as described in paragraph 28 and Appendix F
(x) Note the extent of future financial risks and uncertainties, and the importance of a corporate focus on developing a viable strategy to balance the budget for 2021/22.
(xi) Note that further discussion is taking place with MHCLG and Full Council will be updated if there are any notable progress.
(xii) Note discussion is taking in place between LLAL and LLAOL, the airport operator, and a further report will be submitted to the Council as the shareholder at the appropriate time.
(XIII) Note the feedback received from the public and staff engagement which is summarised at paragraph 72 to 80 and detailed in full at Appendix E.
Executive Summary
2 Full Council approved the Council’s 2020/21 Revenue and Capital Budget on 19 February 2020. In accordance with the Council’s Standing Orders, the Executive is expected to manage the budget within the estimates approved by Council, with officers reporting any expected variations together with proposals as to how those may be managed.
3 The COVID-19 Emergency has caused fundamental changes to the Council’s budget. In addition to extreme pressures on many services such as care, homelessness and public health, it has dramatically affected the Council’s commercial activity, particularly the Council’s 100% owned company, London Luton Airport Limited (LLAL), and the company’s ability to pay the dividend that in previous years the Council has used to fund essential services in the town.
4 The extent of the financial impact requires an emergency response with some substantial amendments to the revenue and capital estimates approved previously, in order to deliver a balanced budget this year. New savings proposals are set out in Appendix C, alongside the savings previously approved for the 202/21 budget. It must be noted that those proposals significantly affecting service delivery or jobs are only to be approved for consultation, and at the end of that consultation the Executive will receive further reports in order to determine whether the proposal should be approved, or whether alternative options are required.
5 The total savings as shown in the table below covers four main areas as follows: Impact on workforce: the proposed base budget includes savings of £4 million in changes to organisational structures. It is anticipated that a minimum of 365 posts (12%) across the council are affected. A number of these posts are currently vacant, and every effort will be made to protect jobs by working closely with partner organisations, including schools. However, sadly, it is inevitable there will be redundancies. The council’s organisational change and active redeployment procedures will be used to minimise the number of staff actually made redundant. One of the proposals shown at Appendix C relates to a £500,000 saving
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from a review of the current senior leadership team structure (corporate and service directors) which currently has three vacancies. Impact on front line services: Where possible this budget seeks to protect cuts to frontline services by making back office efficiencies, contract management savings, savings from buildings being closed and proposals to bring in more income. But given the magnitude of the savings it is unavoidable that some front line services will be affected. This includes a proposal for a new customer services model reducing face to face contact except for our most vulnerable residents and those who don’t have access to the telephone or the internet, a cessation of cash kiosks and the development of a new council tax reduction scheme. This budget also includes saving proposals in relation to neighbourhood enforcement and public protection, highways maintenance, energy savings on street lights and green waste. Impact on adult social care: Many of the savings from Public Health and Wellbeing will result from contractual renegotiations and remodelling of services. For example adult social care will be remodelled in line with the successful implementation of the side by side programme, which takes an asset based approach to adult social care. There will, however, be a reduction in some front line services such as day care, which fewer people have been choosing to access. Savings across the department will result in a reduction in preventative and supportive services across all ages including vulnerable adults.
Impact on children’s social care: A number of the savings in Children’s services will come from service redesign. There will be changes to services including the reduction or ceasing of some frontline provision such as the universal and targeted parenting provision and support – however through a redesign in services all families most in need will have access to support to prevent their needs escalating . It will be necessary to seek alternative provision of the catering service and the savings within our education service will see a reduction in the services ability to support schools with school improvement.
6 The major changes proposed to the Council’s 2020/21 budget are summarised below. Budget Change Cost or (Saving) (£m) Reduction in LLAL Dividend for 2020/21 16.0 COVID-19 loss of income – net, after Government reimbursement 3.5 COVID-19 additional spend – net, after Government reimbursement 2.0 Children’s Services Ofsted improvement plan (Exec min.EX/58/20) 1.7 Reduced revenue costs of Capital Programme (one off) -1.0 Total Additional Net Costs 22.2 Savings and Use of Reserves Additional Savings Proposals 2020/21 total (see Appendix C) -16.9 Use of one-off Reserves to balance budget -5.3 Total of budget reductions and use of reserves -22.2
7 The assumptions used for the 2021/22 budget have been revised in order to take into account the potential impact of COVID 19. These estimates are based on the best information available and some of the planning assumptions are necessarily based on
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limited information as the full financial impact of COVID 19 is yet to be felt. That will happen once the support from central government comes to an end. 8 The main changes to the costs and income figures are explained below. Loss of income represents reduction in areas such as parking, licensing, trading activities, commercial income and other fees and charges. Costs – as explained in paragraph 26 these are based on latest information and on best estimates taking into account the uncertainties and risks associated with COVID -19. C Tax and Business rates changes reflect the state of the economy and potential for reductions in collection rate, increases in bad debts, and an increase in demands on the Council Tax support scheme. Dividend receivable – reflects the reduction in income projection based on detailed scenario analysis and forecasts of passenger numbers.
9 It should be noted that the current risk assessment of the budget reduction proposals indicates that not all will be able to deliver the full amount of saving proposed for 2020/21, and therefore the more likely level of reduction in the Council’s reserves is £10.4m and £13.4m over two years. Even more reserves will be used up if not all the proposals are approved, or if the unachieved savings from previous years (see paragraph below) are not delivered in 2020/21.
10 The key issues arising from the 2019/20 outturn elsewhere on this agenda are as follows. An overspend of £4.7m in Children’s and Families social care An overspend of £3.5m on the Homelessness budget including temporary accommodation These major overspends were largely offset by the use of the contingency and short-term savings in Treasury Management. This emergency budget incorporates significant proposed savings in Treasury Management - £1m from re-profiling the Capital Programme – so it is not prudent to assume that there will be an equivalent level of compensating underspends at the end of the current year.
Background
11 In February 2020 the Council set a balanced budget for 2020/21. However, the impact of COVID-19 now means that many of the estimates for both spend and income included in that budget are no longer realistic. As a result, it is necessary for the Executive and Council to consider making some emergency changes to the 2020/21 budget.
12 The financial impacts of the COVID-19 emergency for the Council can be put into four types, as set out below.
1) Increased expenditure directly and indirectly related to the key work required as part of the emergency response. 2) Reductions in tax income, from Council Tax and National Non-Domestic Rates. 3) Reductions in fees and charges income, including commercial rents. 4) Income reductions and risks relating to the Council’s 100% owned company, London Luton Airport Limited (LLAL).
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13 The current expectation is that the Government will reimburse the majority of the initial emergency response and the losses incurred during lockdown, but that there is likely to be a longer-lasting impact on the vulnerable, and on the use of Council facilities, both during the easing of lockdown and afterwards, which will continue to require a significant response from the Council as well as to reduce income, that this is not likely to be reimbursed. Further, no commitment has been made by Government in relation to item 4, the airport- related risk, despite the petition the Council has made.
14 In addition to the impacts of COVID-19, this report needs to consider the overall budget position and risks at the current time, in order to assess the changes needed to ensure that the budget remains balanced, and that spend is duly authorised.
15 The airport risk is key to the Council’s current financial position. For many years, Luton has derived major financial benefits from the operation of the airport. In 1998 a 30 year concession agreement was signed by LLAL and the airport operator, that gave LLAL a share in the rewards and risks involved in the running of the airport. The agreement was extended in 2013 with minor amendments to enable the developments of the airport that have taken place in recent years. Under the terms of the agreement LLAL’s income is based on the annual number of passengers (and amount of freight) each year. The income has increased greatly over time. The risks relating to this have been emphasised in the Budget papers every year, and the Council-approved Budget Risk Management Strategy (Appendix B of every Budget Report) includes the risk that Airport income reduces significantly – a risk that was given a low likelihood, but with a critical impact should it occur. The risk management required is to maintain a prudent minimum reserve balance, to regularly review the airport situation, and ‘readiness for a radical reappraisal of the council’s budget and capital programme should there be any long-term impact on airport income.’ The Council now faces the need to make that radical reappraisal, as the huge, ongoing impact of the COVID-19 emergency on the aviation industry, combined with the nature of the concession agreement, means that LLAL will not be able to make any dividend payment for the current year and no dividend can be expected for next year either. It should be noted that the concession agreement is based on LLAL bearing the risks relating to ‘force majeure’ only or unforeseeable events.
16 The Council’s position as 100% owner of a major airport is unique amongst local authorities. The nearest equivalent is those authorities who are shareholders in the Manchester Airport Group, but that comprises 10 authorities between them owning 65% of the operating company. It has been reported recently by the Manchester Evening News that those authorities have agreed to make loans totalling £260m to the Manchester Airport Group as a direct result of the effects of the COVID-19 crisis on the aviation industry, and that their expected dividends for 2020/21 and 2021/22 have gone from £110m (shared between the 10 authorities), to zero.
The Current Position
London Luton Airport Limited and the Council’s Budget
17 The net dividend and interest income from LLAL has increased significantly over the years: from £7.6m in 2012/13 to £33.5M in the original budget for 2020/21; this would have funded
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around 23% of the Council’s total net service expenditure. At the same time government grant income has reduced substantially. These major changes have made airport income an essential financial lifeline for the Council. However, the COVID-19 emergency has had a massive negative impact on airport activity. The current approved budget for 2020/21 includes £16million income from LLAL dividend. The LLAL Board have determined that they will not be able to make dividend payments for 2020/21 or 2021/22, and therefore this income can no longer be included in the Council’s budget.
18 The LLAL Board has reviewed its financial and contractual position as a matter of urgency, and has developed a financial stabilisation plan as a result. The contract between LLAL and the airport operating company, London Luton Airport Operating Limited (LLAOL) includes clauses relating to ‘force majeure’. These appear in many commercial contracts and relate to what happens when there is an event outside the control of the parties to the contract that prevents one or other of them from fulfilling their obligations. Exactly how each of these clauses will apply in current circumstances is now a subject of considerable legal interest and interpretation, the outcome of which will impact on LLAL’s financial position.
19 In view of the risks associated with the potential application of the Force Majeure clauses, combined with the sudden reduction in passenger numbers at the airport, the LLAL Board has determined that the company cannot prudently afford to make dividend payments until business at London Luton Airport returns to something approaching normal and the company’s own financial position has been stabilised.
20 The Direct Air Rail Transport scheme has continued, with forecast expenditure above the levels of the existing debenture loans approved by the Council, and LLAL’s preparations for the proposed Century Park Access Road (CPAR) and other costs relating to the Century Park development included taking options on the purchase of properties that had to be bought if the road was to be built as planned. A number of those options came up and the company bought those properties and incurred other expenditure on CPAR using the working capital i.e. internal borrowing. Now that the company is receiving no concession- fee income, its financial position is completely different. As a result, the cash holdings of the company were used to fund capital expenditure rather than being held as cash to back its reserves. At the time, this represented a pragmatic approach as part of treasury management – offsetting the financing cost of loans by sacrificing the very much smaller amount of interest that could be earned on cash investments, and keeping the differential in interest rate within the company. As a result, the stabilisation of the company will require it to borrow £59.6m, as its reserves previously used to finance capital projects amounting to £16.9m are not cash-backed. It also needs to borrow to finance past and future borrowing costs capitalised on the DART and DCO schemes amounting to £24.7m while the assets are in the course of construction and additional costs for the DART project amounting to £18m.
21 Members will be aware that the Council has been the company’s sole source of borrowing – and that debenture loans have been made on the basis that the company should not seek any other source of funds, since the alternative lender would also then have a claim on some of LLAL’s assets in the event of a default. Therefore, a key factor in LLAL’s financial stabilisation plan is to request further borrowing from LBC.
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22 This report does not request specific approval of any further loans to LLAL, although amounts of loan are included in the Capital Programme. Good governance requires that loan requests are made and considered separately, and are subject to detailed appraisal and appropriate scrutiny. It should be noted that when considering these requests, the Executive will need to assess the robustness of LLAL’s financial stabilisation plan, an updated position on the capital programme and progress made to date, and overall position in light of the impact of COVID-19 and the potential further impact of the force majeure clauses in the contract.
23 While giving further loans to LLAL at this stage involves risk that requires detailed consideration (including assessment of the company’s stabilisation plan), it is a similar risk to that faced by the Manchester councils when making their loans reported by the press as totalling £260million. Further, if LBC is unable to support the stabilisation of LLAL, then the gross income from LLAL included in the Council’s budget – currently £43.7m for 2020/21 – is at risk, and not just for the next few years. Additionally, LLAL’s community funding programme would also be put at risk.
24 A full comparison between the LLAL position used for the 2020/21 budget and medium term plan, and the latest central case prediction of the medium term, is set out below. To put this table in perspective, in 2012/13, the last year before the extension of the current contract, the total income was £7.6m, net income £7m.
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LLAL Interest and Dividend Income in the February 2020 Budget Report
Income 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 £m £m £m £m £m £m Dividend 20.0 16.0 14.0 14.0 15.0 17.0 Debenture Interest 16.0 24.6 29.2 29.8 29.8 29.8 Financing Income 36.0 40.6 43.2 43.8 44.8 46.8 Rental Income 2.8 3.1 3.1 3.1 3.1 3.1 Total Income 38.8 43.7 46.3 46.9 47.9 49.9 Debt Financing -6.5 -10.3 -12.4 -12.7 -12.7 -12.7 Net Income 32.3 33.5 33.9 34.2 35.2 37.2 Yearly Increases 1.2 0.4 0.3 1.0 2.0
LLAL Interest and Dividend Income latest estimate Post COVID -19
Income 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 £m £m £m £m £m £m Dividend 20.0 0.0 0.0 10.3 14.1 16.1 Debenture Interest 16.0 24.6 29.2 29.8 29.8 29.8 Financing Income 36.0 24.6 29.2 40.1 43.9 45.9 Rental Income 2.8 3.1 3.1 3.1 3.1 3.1 Total Income 38.8 27.7 32.3 43.2 47.0 49.0 Debt Financing -6.5 -10.3 -12.4 -12.7 -12.7 -12.7 Net Income 32.3 17.4 19.9 30.5 34.3 36.3 Yearly Increases/(Decrease) -14.9 2.5 10.6 3.9 2.0
As shown in the above table the reduction in LLAL dividend over the two years amounts to £40m. It is assumed that the passenger numbers will reach the pre-COVID-19 level in three years’ time. However if the recovery takes longer, then the loss of dividend will extend beyond 2022/23. This is also subject to the current discussions taking place with the airport company LLAOL to address any further contractual issues arising from COVID-19.
Key risks arising from the 2019/20 Outturn Report
25 The Outturn Report for 2019/20 is a separate item on this agenda. The overall position shows a net overspend of £0.195million, after deploying the full £5.9m of general contingency budgets included in this year’s budget and by some one-off gains in the corporate resource accounts relating to borrowing costs, interest earned on investments and capital financing. The key points are as follows: 1) The major overspends relate to: a) Children’s and Families Social Care, including Special Educational Needs transport (£4.7million) prior to the introduction of the additional expenditure approved to implement the Ofsted improvement plan, and;
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b) Homelessness, £3.5million, with a significant increase in expenditure towards the year end, leaving this as an area of real risk when government support for COVID-19 related expenditure ceases. 2) The short-term reductions in treasury management expenditure, which were the largest part of the offsetting underspends, cannot be expected to continue. Therefore in the Financial Sustainability section, below, the projections include a continuation of the underlying £7.5m budget pressure that has been present for the last few years as a result of planned efficiencies in these areas, and some others, not having been realised and the continued high levels of demand.
COVID-19 Related spend to date
26 The table below shows the level of COVID-19 related expenditure incurred and reported to Government for April and May, and as currently estimated for the whole financial year. The expenditure to date has been incurred under the Council’s emergency procedures, and Executive is asked to note and approve this.
COVID-19 Spend Full Year £000s Adult Social Care including PPE 4.191 Children’s Social Care and SEND 303 Education 755 Homelessness 421 Cultural and related spend 131 Environment & Regulatory 1.014 Finance, IT and corporate 924 Other General Fund 2.068 General Fund Total 9,548 Housing Revenue Account 183
27 On top of the additional expenditure, there is the loss of income, a huge issue for Luton. The full year impact on the Collection Fund is estimated to be £7.97million, the losses in fees and charges £3.944 million, and the total commercial income loss, including airport dividend £16m and loss of commercial income £0.52 million. The additional loss of income for LLAL amounts to £30.7 million which brings the total loss of income for LBC and LLAL to £59.14 million as per Appendix D
28 It should be noted that to date, government has confirmed COVID-related grants of £11.25million, and the emergency budget has been prepared on the assumption that the Council will also receive a further £6.3million to cover additional costs and loss of income forecast by the Council linked with COVID-19. In addition Government has agreed to fully fund the cost of new or extended out of hospital health and social care support packages,
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subject to a joint arrangement with the CCG, has offered a Local Council Tax support fund of £2.1million and provided business rate relief and grants for Luton businesses totalling £56 million. There are other various grants and assistance as listed in Appendix F and most of these grants are paid directly to external organisations.
Budget Reduction Proposals
29 In view of the financial situation facing the Council, officers have worked to develop budget reduction proposals throughout the Council’s services, at the same time as responding to the demands of the COVID-19 emergency response. Numerous proposals have been developed, and they are set out in Appendix C. They are summarised below by department and by type of proposal. The full year savings is planned to be delivered over two years and any in year gap to be funded by drawdown from reserves up to £10.372m in 2021/22 and £3.047m in 2021/22. The Council is already using its reserves at the rate of £1.8m per month. However every effort should be made to deliver those savings as early as possible to minimise the drawdown from reserves.
Department Full Year Saving (£m) (incl. original savings) Chief Executives 1.004 Customer & Commercial 4.350 Children Families & Education 3.173 Place & Infrastructure 5.956 Public Health & Wellbeing 7.124 Grand Total 21.607
Proposed budget reductions analysed by type
Type of Budget Reduction Net Saving/Income £m Process & Efficiency Improvements 5.552 System/Service Redesign to customers 8.207 Changes to Organisational Structures & responsibilities 4.038 Trading & Commercialisation 1.926 Procurement & Commissioning Efficiencies 1.884 Total 21.607
30 The savings proposals have to be viewed in the context of risks and uncertainties posed by COVID 19. Moreover it is worth noting the following points. 1) Those budget reduction proposals requiring consultation prior to full approval are marked with 1 & 2 in the Appendix C.
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2) The risk assessment and sensitivity analysis indicate that the likely saving achievable in 2020/21 is significantly below both the full year total shown above and the initial estimate of the potential saving for the year (estimated £16.9m). As mentioned in paragraph 29 above the Council is planning to use £13.4m of reserves over two years to balance the budget and provide the breathing space to recover and achieve an affordable and sustainable budget which is a statutory requirement. 3) If specific proposals are unacceptable to members, the shortfall will increase and further savings proposals will have to be considered. This risk may be mitigated by developing a pipeline of projects. 4) The delivery of the savings will also require investment as part of the spend to save or invest to save programmes. The Council has earmarked reserves which could be released to assist with delivery and pump priming. This will be assessed on a case by case basis and supported by robust business case and complies with the governance and scrutiny process. 5) It is worth noting that the level of savings required in future years is difficult to predict due to various risks and uncertainties including COVID – 19, the airport and the state of the economy and pace of recovery.
Reserves and the Budget Risk Management Strategy 31 The most important thing to note about reserves is that they are one-off funding. They can only be used once, to deal with single events. If the risk that they were created to address still remains when they are used-up and gone, then they have to be built up again, by making additional savings or underspends over and above what is required simply to balance the budget. At the end of 2019/20 the Council held £77.9m in its general fund reserves, of which £5.4m was an advance payment by Government towards the current year’s COVID-19 emergency response, giving an effective balance of £72.5m.
32 The general fund reserves, excluding schools balances, are set out below. When determining what can be used in the current circumstances, it is first necessary to consider the minimum reserve level, and then the reason for holding each reserve. Appendix B of the original budget report (the Budget Risk Management Strategy) set out a calculation of the minimum reserve requirement, which totalled £13million. This is higher than the standard approach to setting the minimum reserve, which is to use 5% of the net budget requirement, which would be about half of the current figure. However, the current situation demonstrates that the financial risks facing Luton are significantly greater than those faced by most authorities. Luton’s income from commercial sources is – or was, prior to COVID-19 - a greater proportion of its budget than any other English local authority apart from the City of London, and the largest proportion of that income is directly linked to airport throughput, which is highly vulnerable to pandemics. The concession fee income is also subject to the contractual risk of ‘force majeure’ – events being legally determined to be unforeseeable and out of the control of the operator. Luton’s economy has been assessed to be particularly vulnerable to the risks of COVID-19, and so many of its jobs are airport-related. As a result of the pandemic, the financial risks associated with the Council’s lending and borrowing activities have increased and this has to be closely monitored.
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33 Given this position the £13million is an absolute minimum general reserve requirement, and it would be prudent to retain the current total level of unallocated reserve funds, which is £14.02million, as a minimum for the current year. The original Budget Risk Management strategy also noted that retaining the £2.97m specific risk requirement reserve was essential in addition, and that the high level of proposed capital spend made the retention of the Major Projects and Insurance risks reserve balance is vital. The Council is embarking on a big change programme and also a transformation programme to drive efficiencies. This would require payment for potential redundancies and also pump priming invest to save investments which will draw down on the Invest to Save, Pension and Re-organisation Reserves amounting to £14.4m.
34 The Council has two specific reserves which it would be reasonable to consider as being available in the current circumstances: the Welfare Reform and Recession Reserve, current balance £1.471m, and the Funding Equalisation Reserve, current balance £14.885m, in order to ‘buy time’ if the proposed savings cannot achieve the full target immediately, but there is a realistic, viable plan as to how the budget can be balanced from 2021/22 onwards. That gives a total of £16.356m. It should be noted that the Funding Equalisation Reserve was established to address the risk of reductions in business rates and/or income from commercial activities, including LLAL and Foxhall Homes, in any one year, and that those risks will continue. The Welfare Reform and Recession Reserve was established to provide help to those badly affected by social change in difficult times. If all of those reserves are used up, the Council will need to consider in future how it can address those ongoing problems. Therefore it is essential that the amount used is minimised.
35 The review of financial risks as set out above makes it necessary to add some specific risks to the Council’s budget risk management strategy. 1. Some COVID-19 related costs may not be fully reimbursed by central Government. 2. The adverse impact of COVID-19 on the social and economic fabric of the town may result in ongoing additional demands on services for the vulnerable and may impact negatively on net council tax income, on business rates and on fees and charges. 3. The impact of a pandemic, or other major unforeseeable event, on the Council’s commercial activities, and that of its subsidiaries. 4. The specific risk to the viability of LLAL arising from a pandemic, with the potential impact on the town from reductions in, or the ceasing of, its local community funding policies, together with the consequential additional financial risk to the Council from additional lending required to stabilise the company.
36 All of these additional risks are beyond the direct control of the Council, and the potential mitigation is principally ensuring that the Council keeps sufficient reserves and is prepared to react quickly when catastrophic events occur, by campaigning for additional government funds, and to develop viable budget strategies and proposals to ensure that it can continue operating effectively within the resources available.
37 Financial risks are substantial and ongoing. The speed of recovery of airport passenger numbers is highly uncertain, but the Council must face the prospect of no LLAL dividend for both this year and next. The potential impact of the force majeure clauses on LLAL’s financial position is not yet established. The impact of a second wave of COVID-19, and the extent of the government’s willingness to fund local authorities for that impact, is unknown. The extent of Government support in future years for local government in general, and
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Luton in particular, may be impacted by national financial difficulties due to the aftermath of COVID-19 and the potential impact of Brexit, both of which are currently highly uncertain. Therefore it is vital, not only that a significant amount of usable reserves is retained at the end of the current financial year, but also that the 2021/22 budget process starts early and is a key corporate focus, and that it involves the development of a viable budget strategy and plan to address the need to balance the budget on an ongoing basis as quickly as possible.
Financial Sustainability 2020/21 onwards
38 The chart above shows the level of savings that are currently estimated to be required in future years. It does however need to be emphasised that the level of savings required in future years is difficult to predict because there are so many risks and uncertainties involved, at both a national and local level, including COVID-19, the state of the economy and the pace of recovery and the extent of future support to local government from central government. The chart below shows the level of income over the next four years and the stagnation in the years 2020/21 and 2021/22 mainly due to the drop of £16m in dividend.
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Budget & MTFS Assumptions
39 At this stage the planning assumptions used for the original medium term financial plan have been followed for future years, except for the changes to the income from LLAL shown in this report. This will need careful review and appraisal when the 2021/22 budget is considered, and it will be important to assess the risks relating to all of the Council’s income budgets, together with the potential demands on the budgets used for the care and support of the vulnerable.
Revenue Budget Management
40 The Council’s Standing Orders state that ‘subject to the provisions of any Scheme of Devolved Financial Management approved by the Council, the Executive shall confine its expenditure to the amounts included in the capital or revenue estimates approved by the Council, and wherever it appears that expenditure in excess of the amount included in the estimates for any item has been or is likely to be incurred in any department, the appropriate Chief Officer shall forthwith report the fact to the Executive.’
41 In view of the extraordinary circumstances of the current situation, it is suggested that for the remainder of the 2020/21 financial year only, the Council allow the Executive to commit necessary expenditure in excess of the amount included in the estimates, subject to a risk assessment, provided that the overall expenditure level does not threaten to deplete the Council’s general reserves below the minimum level deemed by the Section 151 officer to be required for medium and long term financial sustainability and also are within the parameters as approved by this emergency budget.
42 It is recommended that the Chief Executive is delegated authority, in consultation with the Finance Portfolio Holder and the Section 151 Officer, to allocate necessary use of reserves based on progress with the stabilisation plan. It is also suggested that monthly meetings be arranged for the Finance Portfolio Holder, the Chief Executive and the Section 151 Officer to review each month’s budget outturn predictions, to consider the potential impact on the
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budget and reserve levels, and to determine whether any further action, such as an urgent report to Executive, is required, rather than waiting for the outcomes of the quarterly monitoring reports.
Value for Money & Efficiency (Modernisation Agenda)
43 The Council has a statutory duty to deliver value for money with public funds. The external auditors as part of the annual audit have a duty to report whether the Council have put in place proper arrangements to secure economy, efficiency and effectiveness in its use of resources. It is essential that the Council continues this effort, including learning lessons from the increased remote working during the COVID-19 emergency, in order to develop its revised modernisation programme.
44 The savings proposed aim to reflect the application of value for money principles in order to produce budget proposals which are robust and sustainable.
Capital Programme 2020- 2025
45 There has been a significant amount of postponement of the capital programme, and the proposals result in a net reduction of £1m in revenue costs in 2020/21. This is set out in Appendix B. The main changes are as follows: the revised capital programme has a net reduction of £0.7m in 2020/21 and an increase of £87.34m in 2021/22. The reduction is due to postponement of capital projects amounting to £64.23m, additions to the capital programme amounting to £3.562m and increase in debenture loans to London Luton Airport Limited (LLAL) amounting to £83m (£60m in 2020/21 and £23m in 2021/22). the revised programme includes £64.23m of capital projects postponed to 2021/22 which includes: Century park access road - £45.085m, Crawley road mullti-storey car park - £6.107m, Town Hall refurbishment £2.657m, Vauxhall Way improvements - £1.977m, LBC street lightning led conversion £1.125m, vehicle and plant replacement programme - £0.7m, others – £6.58m), Additional projects amounting to £3.562m include: Vale cemetery extension - £2m, NTS/MRF refurbishment - £1.2m and Contingent Labour Joint Venture - £0.36m) and additional debenture loans (2020/21 - £60m and 2021/22 - £23m) to LLAL. the revised capital programme’s reduction in cost of borrowing in 2020/21 of £0.975m reflects the postponement of £64.23m of projects in year. Additional borrowing costs incurred for LLAL debentures will be fully recovered. the capital financing requirement (CFR) which is the sum of money required from external sources to fund capital expenditure, and represents the Council’s underlying need to borrow for capital purposes cumulatively increased to £86.53m in 2021/22. This is due to increases in capital programme in 2021/22 of £64.23m for the postponed capital projects and additional LLAL debenture loan of £23m as well as a reduction in CFR in 2020/21 of £0.7m).
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Capital Programme Governance arrangements
46 The proper governance arrangements of all new projects will be even more vital in the light of the impact of COVID-19 on the Council’s financial position. As noted in the original budget report, all new projects will have to submit robust business cases to the Executive for approval before the allocated funds are released. The business case will have to follow best practice and also comply with guidance published by HM Treasury namely the “Green Book” and the “Five Case Model”.
Significant Capital Expenditure and Financial Resilience
47 All the projects included in LBC’s capital programme are based on best estimates and some are indicative figures. The Council as part of the capital strategy has to include any capital projects in the capital programmes at the beginning of the financial year based on an outlined business case. However any disbursement is dependent upon Executive approval of a final business case and appropriate Gateway Reviews if necessary.
48 The Housing strategy includes an option to invest in residential properties. The Council already has a strategy to invest in commercial properties. A similar strategy has been developed in order to support any future investment in residential properties. The final business case has to be approved by Executive and proper governance arrangements have to be agreed in order to enable proper monitoring and reporting and facilitate scrutiny.
49 It must be reiterated that the level of borrowing in the overall capital programme is unprecedented. As stated in the original budget report its full implementation depends on the buoyancy of the travel industry at microeconomic level and the overall economy at macroeconomic level. As with any investment the value can go up as well as down. At this stage it is not possible to reasonably assess the longer term risks and uncertainty posed by COVID 19 and every country is trying to adjust to the new normal. In light of this it is worth noting that any potential financial impact on the Council and its subsidiaries may be significant and the level of reserves of the Council may prove not be enough to cope with any further significant risks, macro-economic shocks and/or major incident. Any future decisions by the Council will have to take into account this fact as part of the decision making process and the financial sustainability of both the Council and LLAL. All major projects will also be assessed and subject to scrutiny as and when detailed business cases are produced and will require Executive approval.
Public Health
50 Public health works to protect and improve the health and lives of individuals, families, communities, and populations. In the current COVID-19 emergency, Public Health have been working particularly hard in partnership with colleagues from the NHS providers and Clinical Commissioning Group to help Luton people to stay healthy as far as possible. The current assumption is that all the additional costs of this essential work will be reimbursed by central Government, and that Public Health expenditure remains ring-fenced.
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Revenue Budget – Key principles
51 For some years the Council has aimed to set a balanced budget without the use of reserves to pay for ongoing revenue expenditure. The original 2020/21 budget continued that approach. As it does not appear possible to keep to that principle when setting this emergency budget, it is essential that: Any use of reserves to fund ongoing expenditure is limited to 2020/21 only, and there is a clear strategy and viable plan to ensure that this does not happen in 2021/22 Any use of reserves to fund ongoing expenditure does not unduly deplete the Council’s reserves. For some years the budget risk management strategy has noted that the risks relating to the Council’s reliance on airport funding requires it to keep a larger than average minimum reserve balance. The current situation emphasises just how important this is. When essential reserves are depleted, it means that even more savings are required in future years to rebuild them which means that budgets in future years will need to run at a surplus.
52 The current key principles that guide the financial strategy are set out below:
To maintain a balanced budget position, and to set a medium term financial plan demonstrating how that position will be maintained; Spending plans will be closely aligned with the Council’s aims and objectives and are prudent, affordable, and sustainable and based on good governance and sound evidenced backed judgement; The Council will maintain a prudent level of reserves and one off gains not used for on-going expenditure; Budgets will be continually reviewed and modified to ensure that resources are prioritised and targeted on key objectives and deliver value for money.
53 The level of the contingency provision is unchanged from the original budget.
Costs of Implementing Savings
54 There will be a cost of implementing a number of the savings proposals in terms of redundancy and pension strain arising from staffing reductions. Every effort will be made to redeploy staff to minimise the human and financial impact. However, the voluntary redundancy scheme proposal, if approved, is likely to mean that the costs are greater than in previous years, again impacting on reserve levels. The general reserve – reorganisation will be used to meet the costs.
Treasury Management Strategy
55 The Council-approved Treasury Management Strategy is based on the borrowing and investment required to manage the original budget and capital programme. This is monitored regularly, and government regulations require a mid-year review to assess whether any changes are required to the strategy or to the prudential indicators included in it. The 2020-21 mid-year review will need to consider specifically whether any changes are required as a consequence of the emergency budget. However, treasury management is dependent on the overall levels of capital and expenditure and income, and is unaffected if
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savings are introduced in some budgets because of the need to spend more elsewhere. If the budget is kept in balance the impact will be limited. There is likely to be some movement in the capital financing requirements for 2021/22 onwards (Appendix B).
Minimum Revenue Position
56 There is no change to the policy statement on how the council will make a prudent Minimum Revenue Provision (MRP) for the year. As MRP is charge on opening balances, the impact as a result of the changes to the capital programme will not impact on the current year’s budget.
Scale of Charges
57 There are no changes proposed to the Scale of Charges.
Robustness of the Budget and Level of Reserves
58 The legal requirement under the Local Government Act 2003 for the Chief Finance Officer’s views on the necessary level of reserves and on the robustness of the budget to be reported to Council only applies when the level of Council Tax is being set. There is no such legal requirement relating to in-year amendments to the budget as they do not change the council tax setting. Despite this, it is important to review the emergency budget’s robustness and its potential impact on levels of reserves.
58.1 The report to full Council of 19 February 2020 sets out my view of the robustness of the original budget and the adequacy of reserves. This statement only considers the impact of the changes that have brought about the need for this emergency budget, and the budget changes themselves, in terms of the additional expenditure and reduced income arising from the Covid-19 emergency response, the savings proposals, and the changes to the capital programme, and the impact that this has on the adequacy of reserves.
58.2 The impact of Covid-19 has put an unprecedented strain on the Council, in terms of impact on services, members, staff, and finance. It has also highlighted that the Council’s greatest financial asset, its 100% ownership of the company (LLAL) that owns the freehold of London Luton Airport, is under considerable financial pressure due to COVID -19 and has to deal with any associated risks. The immediate impact of this risk on the Council’s finances demonstrates the need for the Council to hold an appropriate level of reserves in order to have sufficient financial resilience to give the Council enough time for the development of plans to address such a sudden resource shortfall.
58.3 The speedy development of this emergency budget, with major savings over and above those approved in February, has been completed soon after the approval of a significant increase in spend to support the Children’s Services Ofsted improvement plan, and alongside managing the COVID-19 emergency response (in partnership with colleagues from health and all the other Luton public services). It is a tribute to the calibre of the Council.
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58.4 The whole process has been completed in just eight weeks. Many of the savings proposals are subject to statutory consultation, and may require further amendment as a result. The initial risk assessment indicates that for 2020/21, they may only result in £11.24m of budget reductions, rather than the £16.9m shown in the savings schedule – a £5.66m reduction. As a result, there is a risk that the impact on reserves may be much greater than shown in the emergency budget. As mentioned in paragraph 29 of the budget report the Council may have to draw down £13.4m from reserves over two years to achieve the full savings and a balanced budget. It is worth noting that there is an overspend in the 2019/20 budget which has to be addressed as well.
58.5 As mentioned above the budget proposals had to be put in place within 8 weeks and therefore some of the savings proposals are based on limited detailed information and data. As these savings proposals are at an early stage further work needs to be done including developing detailed delivery plans with risk mitigation measures. As a result the budget carries all the inherent risks associated with those projects. The potential use of reserves acknowledges this fact, however further sensitivity and scenarios analysis will be carried out in due course in order to further stress test the savings programme and also the overall budget as and when new information come to light about COVID -19.
58.6 There is also a detailed consultation process and some specific proposals will have to come back for Executive approval.
58.7 Over and above this risk, there is the potential for a second wave of Covid-19 resulting in additional costs, and there is no certainty as to whether Government will be in a position to reimburse further costs that may arise. A key issue both locally and nationally is the pace of economic recovery, and how the safety requirements arising from Covid-19 may impact on that recovery. In this context it is concerning to note the analysis of Centre for Cities, who concluded that Luton’s economy was the second most vulnerable to COVID-19 of the large local economies in the country. If the local economy is badly affected it will increase demands on the Council’s services as more people become vulnerable and potentially homeless, as well as reducing the Council’s income from business rates, council tax and fees and charges.
58.8 The potential for a long period of economic stagnation will also impact on the length of time that the Council’s airport income remains well below previously budgeted levels.
58.9 Another issue for the Council, given the size of its capital programme, is the risk of cost- escalation due to additional safety requirements that may be required in the construction industry as a consequence of COVID-19.
The Adequacy of Reserves
58.10 The analysis above shows that there is a real risk of the Council’s reserves being depleted by £13m over two years. The reserves identified in the Emergency Budget Report for potential use, the Funding Equalisation Reserve and the Welfare Reform and Recession Reserve, together total £16.4m. Therefore it is essential that efforts continue both to deliver more of the savings levels proposed in the current year, and to develop ways to make the procurement and efficiency savings unachieved from previous years, principally in the homelessness and children’s services areas, in order to minimise that call on reserves.
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58.11 As stated in the emergency budget report, the COVID-19 emergency has demonstrated how essential an adequate level of reserve balance is, particularly for Luton Borough Council with its levels of commercial income. The fact that it is not lawful for Councils to borrow for revenue purposes makes this even more vital.
58.12 The Council’s reserves position and its use is described in paragraphs 31 to 37 of the main report and has to be closely monitored as and when savings are further developed and agreed by Executive for implementation.
58.13 While this overall level of reserves may seem relatively high, it is significantly lower than the levels held by 10 of the 15 other local authorities shown by Cipfa’s analysis to be statistically most similar to Luton, and the impact of Covid-19 on London Luton Airport Limited, combined with the analysis by Centre for Cities showing the vulnerability of Luton’s economy as a result of the Covid-19 outbreak, indicates that Luton has a greater need for a high level of reserves than other authorities.
58.14 On this basis, while the current level of reserves is adequate, the potential for a reduction in 2020/21 and 2021/22 in excess of the £13.4m held in the Welfare Reform and Recession Reserve and the Funding Equalisation Reserve is to be noted, and should this happen the Council will need to develop a plan to create surpluses in future years to replenish the reserve levels.
Initial Sensitivity Analysis
58.15 The emergency budget assumptions are based on what currently appears to a central case, assuming further government support for COVID-19 expenditure of £6.3million, and existing spend levels. At this point it is very difficult to assess what might be the worst case, if there were to be a sustained second wave of COVID, and if Government was unable to provide additional support to Councils and local businesses in those circumstances. This level of uncertainty is the reason why the revenue budget management proposed for the remainder of the year includes monthly monitoring with the potential of an additional emergency budget report to Executive should that prove necessary. The risk assessments by officers of the levels of savings included in the estimates do provide an element of sensitivity analysis. A significant improvement on the base case position would require MHCLG to support the Council by offsetting some of the LLAL income loss. The worst case scenario would be no LLAL dividend over the entire medium term planning period, which would require the Council to reassess the financial resilience and take appropriate measures to address and achieve an affordable and sustainable budget.
Housing Revenue Account, Schools and Public Health budgets
59 There are no proposed changes to the above budgets at this stage and will be kept under review.
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Financial Strategy
60 There are no proposed immediate changes to the Council’s overall financial strategy. However, further work will need to be done as the ‘new normal’ emerges after the COVID- 19 emergency, and an assessment of how the strategy needs to change as a result will be incorporated in the 2021/22 budget work.
Section 114 of the Local Government Finance Act 1988
61 There have been various reports in the national and local government press that a number of local authority chief finance officers are considering issuing ‘Section 114’ reports, and this has been described as being like a local authority being ‘bankrupt’.
62 Where an authority recognises that it needs to address the budget issues, and can and does take action to revise the budget effectively, as is proposed in this report, then the need for a Section 114 report does not arise. If action is not taken, or if the actions are not successful in addressing the budget pressures, or if the financial position develops to the point that expenditure will inevitably exceed available resources, then that would trigger another discussion and consideration for a Section 114 report.
63 Section 114 places a duty on the Chief Finance Officer to ‘make a report under this section if it appears to him that the expenditure of the authority incurred (including expenditure it proposes to incur) in a financial year is likely to exceed the resources (including sums borrowed) available to it to meet that expenditure’.
64 A Section 114 report requires an authority to hold a meeting within 21 days of the report being issued, to determine what should be done to remedy the situation. As the Council is taking the necessary measures to address the budget gap this year, at this stage there is no need to issue a Section 114 report.
65 On 11 June CIPFA published a statement on Section 114, reproduced here.
‘The role of S.114 in the current crisis has been the subject of understandable debate. This statement confirms that the statutory responsibilities of the CFO has not changed. However, CIPFA proposes that there should be a temporary modification to existing guidance in order to create an opportunity, within existing statutory limits, to enable an exploration of what further options and/or financial assistance may be available.
‘The proposed modifications are as follows:
At the earliest possible stage a CFO should make informal confidential contact with MHCLG to advise of financial concerns and a possible forthcoming S.114 requirement The CFO should communicate the potential unbalanced budget position due to COVID-19 to MHCLG at the same time as providing a potential s.114 scenario report to the council executive (Cabinet) and the external auditor
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‘In practice this means it should not normally be necessary for a s.114 report to be issued while discussions with the government that would address the issue are in progress.’
66 It should also be noted that, despite the wording of Section 114, Councils are not allowed to borrow to cover revenue costs – and an unbalanced budget can result in the de facto use of borrowing.
Goals & Objectives
67 The key goals and objectives are set out below.
1. To revise the 2020/21 budget taking into account the unprecedented situation that has occurred as a result of the COVID-19 pandemic. 2. To revise the capital programme in order to reduce the revenue costs arising in 2020/21. 3. To revise the budget risk management strategy to recognise the risks arising from the COVID-19 emergency. 4. To set up financial governance for 2020/21 to enable the authority to manage the risks arising as a consequence of the COVID-19 pandemic. 5. To amend the medium term financial planning figures in recognition of the impact of COVID-19. 6. To enable the Council to return to the position of having a balanced budget without the use of reserves as soon as possible, and to work effectively in the medium term towards meeting its service aspirations within the level of resources available to it.
Proposal
68 The proposal is to revise the 2020/21 budget by approving the following budget changes.
i. The additional savings proposals as set out in Appendix C ii. The changes to the capital programme set out in Appendix B iii. The changes to the Budget Risk Management Strategy set out in the February 2020 budget report. iv. The overall changes set out in Appendix A
69 In order to manage this effectively, the continued implementation of the Budget Risk Management Strategy set out in Appendix B will be essential of the February report.
Key Budget Risks
70 Appendix B of the original budget report sets out the Council’s detailed Budget Risk Management Strategy. The major risks now relate to:
The financial position of London Luton Airport Limited as a result of the impact of the COVID-19 emergency on its operations, and the impact of that on the Council’s budget, particularly in terms of the risk to interest repayments if the company is not stabilised, and the loss of interest payments in the short-term. Not achieving the undelivered 2019/20 savings now scheduled to be delivered in 2020/21.
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Not fully achieving the already approved savings set out in the original budget report of February in paragraphs 103 to104 and in appendix M of that report. Not fully achieving the new savings proposals set out in this report. Significant uncertainties for government and local government finance as a consequence of the impact of the COVID-19 pandemic, increased by the wider uncertainties as a consequence of Brexit COVID-19 related expenditure not being fully reimbursed by government. Reductions in the collection rate for Council Tax and Business Rates, increases in bad debt levels and losses as a result of appeals against rateable values. ; Future changes to the Business Rates Retention Scheme may have significant adverse financial implications. Potential ongoing negative impacts on Luton’s economic and social structures as a consequence of the COVID-19 pandemic increasing the demands on the Council still further. Analysis by the Centre for Cities concluded that Luton was the second most vulnerable economy post-Covid, in part due to its reliance on the Airport and on vehicle manufacturing. Increases in demand for high cost Adult Social Care, Children’s services and Homelessness services. These services are demand-led and driven by demographic changes. Overspends occurring in capital as well as revenue budgets, and estimated capital receipts not realised. Further reductions in specific grants such as New Homes Bonus and Independent Living Fund
71 It is also essential as stated above that robust Integrated Impact Assessments are completed and consulted on prior to implementation of savings to mitigate a risk of challenge of specific budget items.
Stakeholder and Public Engagement and Scrutiny
72 Public engagement on the original budget-setting took place at the beginning of the year, and the Council has been engaging with the public and staff on the emergency budget since 5 May 2020. We have also sought the views and comments from the public about its emergency budget, asking for ideas as well as asking people to consider signing a community petition to central government requesting government grant to cover the loss of airport income. .
73 Due to the COVID-19 crisis and lockdown, no physical face-to-face meetings could take place. The methodology was therefore adapted to mainly online communication and engagement method (e-briefs, website, emails, webinars, online forms etc). However virtual meetings have also been arranged with community leaders to discuss the proposals in more detail.
74 To date we have had over 300 emails with about 600 savings ideas put forward. A large proportion of the ideas put forward during the engagement are included in the list of savings proposals being considered by members for the emergency budget. This shows that those we engaged with are broadly in favour of many of the areas the council is looking at to make savings.
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75 FAQs has been produced and published to explain the financial situation in more detail, counter some of the myths and also to show residents and staff which of their ideas are being taken forward.
76 Some of the key themes/ideas for savings which have been put forward so far include: streets and parking – i.e. dim/turn off street lights, stop non-essential road improvements council office, buildings and land – i.e. more staff working at home and reducing the council’s office estate sports, leisure and culture – i.e. review the offer/number of buildings and events the council funds parks, open spaces and grass – i.e. have fewer grass cuts / create meadows with wild flowers capital projects – i.e. stop/delay major building and infrastructure projects where savings can be achieved pay and salaries – i.e. freeze recruitment at the council and have fewer higher-paid officers and managers debt recovery – i.e. chase more of the outstanding money owed to the council income generating ideas – i.e. organise fundraising events, establish a lottery fund, trade more of the council services for profit community and volunteering – i.e. get more volunteers to help with street services and other council services such as supporting the elderly and cleaning the streets.
77 Some of the key concerns raised by residents during the engagement so far include: cutting services to vulnerable people and the impact this could have on them
nervousness about any changes to black bin waste collections (but some support for reduced garden waste collections)
that there is not enough clarity on the budget to make informed views.
78 The detailed interim engagement report is included at appendix E
79 It is important to note that those schemes impacting on service levels and staffing numbers are subject to specific consultation prior to any decision being taken on their implementation.
80 The views of Finance Review Group on this report will be given to Executive at the meeting, and, as noted, in this report, the views of Scrutiny will be sought on individual requests for additional LLAL debenture loans prior to those requests being considered by Executive.
Equalities/Social Justice Implications – Report by the Social Justice Unit
81 The Council has a duty under the Equality Act 2010 to demonstrate its consideration of the Public Sector Equality Duty as part of the process of decision-making. The Council is required to have due regard to the need to eliminate discrimination, advance equality of opportunity, and foster good relations when making decisions on budget proposals. This involves an understanding of the potential impact of policy and decisions on different people and evidence on how decisions are reached.
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82 It is also relevant to show where the Act states that compliance with the duty may involve treating some people more favourably than others and this will be around those already at a disadvantage which may be because of disability or race.
83 While there is no legal requirement to conduct an Integrated Impact Assessment (IIA), the process enables a rigorous assessment of decision-making and identifies any negative and positive impact on people with protected characteristics: Age, Disability, Gender reassignment, Marriage and Civil Partnership (but only in respect of the requirements to have due regard to the need to eliminate discrimination), Pregnancy and Maternity, Race (ethnic or national origins, colour or nationality), Religion or Belief (including lack of belief), Sex (male/female), Sexual orientation.
84 The IIA process will help: • Understand the potential effects of the budget proposals by assessing the impacts on • Different groups • Identify any adverse impacts and develop actions to remove or mitigate them • Make transparent decision-making based on evidence
85 An initial review of all the budget proposals was undertaken using the IIA Impact Table to help give an early indication of likely impacts on particular groups. For proposals that did not have any disproportionate impact for service users/residents/staff, it was agreed that an IIA was not required. 86 This initial high-level overview of the assessment of the budget proposals helps give an early indication of likely impacts on particular groups. The assessment focuses on service based proposals that have been identified as having a direct impact on service users/residents. Impact assessments are also undertaken where staff are involved and at risk of redundancy, or will experience major changes to their job role. As the majority of the proposals are still too early in the development and implementation process, it was not possible to undertake a full IIA. 87 It is important to note that implementation of the proposals will not take place until a full IIA has been undertaken. 88 Consultation and engagement will be integral to all major proposals. This is to ensure that the Council is not in breach of legislation and importantly, is being open and transparent in its approach and in its consideration of the outcome of any specific proposal. 89 Service areas will gather relevant data and evidence from consultations to support a full assessment of their proposals, if required. IIAs of budget proposals and implementation plans will be published following a rigorous assessment of equality impacts. Further assessment will be made through the budget consideration process and in relation to implementation, if budget proposals are accepted. 90 The emergency budget savings estimated for 2020/2021 amount to £21.6m. Departments are meeting the savings as follows;
Department Savings Amount £m Chief Executive’s 1.004 Customer & Commercial (incl CTR for 21/22) 4.350 Place & Infrastructure 5.956 Wellbeing and Public Health 7.124 Children’s, Families and Education 3.173 Total 21.607
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91 The 68 proposals (with draft IIAs) that underpin this budget are broken down by department as shown in the table below and indicate where the greatest impact will be.
Department No. of Proposals with (No. of proposals with draft IIAs) potential negative impacts Chief Executive’s (6) 5 – impact on jobs Children’s, Families and 9 - impact on poverty Education (13) 7 - impact on age, race, jobs 6 - impact on disability and health 5 - impact on sex 4 - impact on skills 3 - impact on cohesion Customer and Commercial (15) 5 - impact on race, sex, disability, poverty 4 - impact on jobs 3 - impact on health Place and Infrastructure (15) 5 - impact on poverty 3 - impact on age 2 - impact on disability and health 1 - impact on race and jobs Wellbeing and Public Health (19) 13 - impact on jobs 11 - impact on age, race, poverty and health 7 - impact on sex 3 - impact on disabilities 5 – impact on pregnancy and maternity 2 – impact on religion/belief 3 – impact on gender reassignment 1 – impact on sexual orientation
92 The departments with the largest potential impact is Children’s, Families and Education and Wellbeing and Public Health. The savings for these two departments is approximately £10m.
93 The proposed base budget includes savings of £4 million in changes to organisational structures. One of the proposals relates to a £500,000 saving in the number of corporate and service directors on the senior leadership team. It is anticipated that a minimum of 365 posts (12%) across the Council will be affected, which will be managed through vacancy deletions and voluntary separation, to minimise impact on existing staff. A number of these posts are currently vacant, and it is envisaged that some roles will be transferred to partner organisations, including schools. However, the biggest impact on staff where the majority make up is female, will be in school catering and adult social care, which will disproportionately affect female staff. The Council’s Organisational Change and active redeployment procedures will be used to minimise the number of staff actually made redundant.
Page 30 of 177 Emergency Budget Report 2020/21
Budget Report Appendices Appendix A – Amendments to the 2020/21 Revenue Budget Appendix B – Amendments to the 2020-2022 Capital Programme Appendix C – Savings recommended for inclusion in the 2020/21 Revenue Budget Appendix D – Reduction in income due to pressures caused by COVID-19 including LLAL. Appendix E – Detailed Interim Engagement Report Appendix F. – Support from Central Government
Background papers Emergency Budget consultation papers, held by Adam Kearney, Luton 546178
Page 31 of 177 Emergency Budget Report 2020/21
IMPLICATIONS
For Executive Reports: ALL GREY BOXES MUST BE COMPLETED All statements must be cleared by an appropriate officer
Legal Clearance Agreed By Dated In compliance with their statutory responsibility and Raj Popat, Principal 17th June in accordance with the provisions of the Local Solicitor 2020 Government Finance Act 1992 the Council set and approved a balanced budget in February 2020.
The provisions of section 25 Local Government Act 2003 require that, when the Council is making the calculation of its budget requirement, it must have regard to the report of the Chief Finance (s.151) Officer as to the robustness of the estimates made for the purposes of the calculations and the adequacy of the proposed financial reserves.
The Council has a duty to maintain a balanced budget throughout the year and, accordingly, are required to regularly monitor their financial position.
Section 28 of the Local Government Act 2003 imposes a statutory duty on the Council to monitor its budgets throughout the financial year, using the same figures for reserves as were used in the original budget calculations. For the reasons set out in this report the Council must take necessary appropriate action to deal with the significant deterioration in the financial position since February 2020 and return to a balanced budget position.
Having regard to the Equality Duty an initial assessment of the proposals has been undertaken and Appendix C to the report sets out the individual savings proposals where specific equality impact assessments will need to be undertaken, as relevant proposals are developed, and considered prior to their implementation. In addition, and where relevant, consultation and engagement will be undertaken and considered prior to implementation
In accordance with Section 106 Local Government Finance Act 1992 members who are two months or more in arrears with their Council Tax must declare
Page 32 of 177 Emergency Budget Report 2020/21
this to the meeting and must not vote on budget recommendations, as to do otherwise can be a criminal offence.
Finance Clearance Agreed By Dated It is a statutory requirement for the Council to have a Dev Gopal, Service 16 June balanced budget. Director (Finance & Audit) 2020 This is an emergency budget for the current financial year 2020/21 and hence has to be read in conjunction with the budget approved by the Council back in February 2020. All the financial implications are addressed in the body of the report and my assessment as S151 Officer of the adequacy of reserves and robustness of estimates are covered in paragraphs 58 to 58.15 As mentioned in the report further discussions are taking place with MHCLG and also LLAL is in discussion with the airport operator LLAOL. The financial situation will be kept under review and any new significant information will be assessed in order to determine any impact on this Emergency Budget and the financial resilience of the Council current and future.
Integrated Impact Assessment (IIA) – Key Points
Equalities / Cohesion / Inclusion (Social Justice) Clearance Agreed By Dated A full assessment of the potential impacts is Maureen Drummond, 16 June identified in paragraphs 81-93 Interim Equalities Manager 2020
Environment Clearance Agreed By Dated There are no direct impacts of approving this Keith Dove, Strategic 16th June budget. However in setting the level of resources Policy Adviser 2020 available, and particularly with the Council committed to being zero carbon by 2040, indirectly there are a number of areas of capital and revenue that could contribute to reduce CO2 / improve air quality and encourage sustainable travel.
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Health Clearance Agreed By Dated IIAs are showing that there are likely to be health Sally Cartwright, Service 17/6/20 impacts from the savings proposed in the Director Healthcare Adults emergency budget. The full impact of these will be Commissioning reviewed as part of the development of individual proposals. Community Safety Clearance Agreed By Dated
Staffing Clearance Agreed By Dated The staffing implications are as set out in the body Angela Claridge 17/06/20 of the report Service Director (HR) & Monitoring Officer Other Clearance Agreed By Dated
Page 34 of 177 Appendix A
SUMMARY OF REVENUE ESTIMATES 2020/21 PROPOSED BUDGET AMENDMENTS FOR COVID-19 MANAGEMENT AND RECOVERY
Department 2020-2021 Supporting Reduced Emergency Government Funding Other Net New Budget Use of Revised 2020-21 Original the Income incl. Confirmed Further Support Resourcing Budget Savings Reserves to Emergency Budget Community Dividend and Received Expected Changes Impact (Risk meet Budget Budget (apportioned) (apportioned) Adjusted) Gap £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 DEPARTMENTS Chief Executive 3,823 504 -258 -144 102 -405 3,520 Children, Families & Education 47,180 411 434 -378 -212 1,704 * 1,958 -2,065 47,074 Customer & Commercial 4,786 1,320 96 -712 -398 305 -2,264 2,827 Place & Infrastructure 22,370 1,314 4,184 -2,254 -1,261 1,982 -1,750 22,602 Public Health & Wellbeing 65,640 6,052 187 -3,168 -1,773 1,298 -1,702 65,237 Capital Charges to Revenue 32,403 0 32,403 176,203 9,600 4,900 -6,770 -3,788 1,704 5,645 -8,186 0 173,662 CENTRAL ACCOUNTS Contingency & Other Corporate Costs 8,138 0 8,138 General Grants & Other Corporate Income -5,955 0 -5,955 Airport Dividend -16,000 16,000 16,000 0 Interest on Investment -25,843 0 -25,843 Capital Financing -15,330 0 -15,330 Borrowing & Treasury Management 13,945 -975 ** -975 12,970 Environmental Agency Levy 118 0 118 NET GENERAL FUND EXPENDITURE PRIOR TO 135,275 9,600 20,900 -6,770 -3,788 729 20,670 -8,186 0 147,760 MOVEMENTS IN RESERVES
HOUSING REVENUE ACCOUNT -2,089 -2,089 SCHOOLS Schools Budget 155,054 155,054 Dedicated Schools Grant -155,054 -155,054 0 0 0 0 0 0 0 0 0 0 Appropriations to / (-) from Housing Revenue Account Balances 2,089 0 2,089 Specific Reserves 6,493 0 -3,049 3,444 Funding Equalisation Reserve 0 0 -10,412 -10,412 TOTAL NET EXPENDITURE 141,768 9,600 20,900 -6,770 -3,788 729 20,670 -8,186 -13,461 140,791 Contributions to /(-) from Collection Fund Collection Fund Council Tax Surplus/Deficit -1,182 3,476 -1,956 -1,094 426 -757 Collection Fund Business Rates Surplus -2,574 4,501 -2,533 -1,417 551 -2,023 Collection Fund Business Rates -32,953 0 -32,953 Business Rates Top Up Funding -14,508 0 -14,508 Social Care Precept -6,939 0 -6,939 Revenue Support Grant -10,879 0 -10,879 COUNCIL TAX REQ. FROM COLLECTION FUND 72,732 9,600 28,877 -11,258 -6,300 729 21,647 -8,186 -13,461 72,732 -3,049 Savings in Original Budget notes * additional budget resources endorsed by the Executive in April 2020, for children's services -11,235 Total Savings in Emergency Budget ** reduction in borrowing costs from capital programme review
Page 35 of 177 Appendix B Capital Expenditure Programme 2021/22 Emergency Budget
2019/20 2020/21 2021/22 Capital Expenditure Estimate Estimate Estimate £’000 £’000 £’000 Place & Infrastructure 28,238 97,803 35,205 Children’s, Families & Education Services 9,599 14,210 13,065 Public Health & Wellbeing 0 100 0 Customer & Commercial 6,944 15,474 1,895 Corporate Projects 122,100 120,777 15,097 General Fund 166,880 248,364 65,262 HRA 23,131 18,607 24,165 Capital Expenditure 190,011 266,971 89,427
Change in Capital Expenditure 306 - 669 87,230
2019/20 2020/21 2021/22 General Fund Financing Estimate Estimate Estimate £’000 £’000 £’000 Capital Expenditure 166,880 248,364 65,262 Financed by Grants & Contributions 17,585 25,245 18,153 Revenue Contributions 90 446 0 Airport Dividend 5,153 5,153 5,153 Capital Receipts 6,112 8,118 2,645 Total 28,940 38,962 25,951 Capital Financing Requirement (CFR) 137,940 209,402 39,311
Change in Capital Financing Requirement (In-Year) 0 - 668 87,230
Borrowing 2019/20 2020/21 2021/22 General Fund Borrowing - - - New General Fund Borrowing - 669 - 86,561 HRA Borrowing - - - Change in Borrowing: Increase/(Decrease) - - 669 86,561
Page 36 of 177 Savings Recommended for Inclusion in the 2020/21 Emergency Budget Appendix C
Emergency Budget Saving includes savings Total Saving as Per Green Book as per Green Book Service Area Project Ref Project Name and Description
No. of 2021/22 2021/22 Estimated Vacancies 2020/21 2021/22 Cumulative 2020/21 2021/22 Cumulative Post within this Impact on Saving £'000 Saving £000 Saving £'000 Savings £000 Saving £000 Saving £'000 Reductions department Equalities
Chief Executive's Department
Policy, Communities & CE/20/002 Paper light Committees -10 0 -10 -10 0 -10 0 0 1 Engagement Policy, Communities & Review of base budgets across the CE/20/003 -47 0 -47 -47 0 -47 0 0 4 Engagement service Policy, Communities & Further review of base budgets CE/20/003a 0 0 0 -19 0 -19 0 0 4 Engagement across the service Policy, Communities & CE/20/004 Review provision of apprentices 0 0 0 -16 -14 -30 0 0 2 Engagement Structural & functional review - Policy, Communities & opportunities for focussing activity to CE/20/005 0 0 0 -155 -154 -309 8 2 2 Engagement support Luton 2040 and community empowerment Policy, Communities & Marketing Print and Design budget CE/20/006 0 0 0 -30 0 -30 0 0 4 Engagement centralisation and reduction Policy, Communities & CE/20/007 Print savings across all cost centres 0 0 0 -60 0 -60 0 0 4 Engagement Policy, Communities & Review of senior management CE/20/008 0 0 0 -125 -375 -500 TBC TBC 2 Engagement structures
Total Chief Executive's Savings -57 0 -57 -461 -543 -1,004 8 2
Customer & Commercial Department
BTS - increase surplus in line with Housing C&C/19/002 -50 0 -50 -50 0 -50 0 0 2 Business Plan
Human Resources C&C/19/010 Reduction in HR Support to Trusts 40 0 40 40 0 40 0 0 3
Revenues, Benefits & Fallout of 19/20 On-off saving for C&C/18/016 119 0 119 119 0 119 0 0 3 Customer Service council tax aged debt (coll. fund)
Page 37 of 177 Revenues, Benefits & C&C/19/004 Phase 2 discretionary funding review -400 0 -400 -400 0 -400 0 0 3 Customer Service Standardise staff parking policy - Human Resources C&C/19/018 -72 0 -72 0 0 0 0 0 4 additional income New recruitment service for Human Resources C&C/20/001 79 -273 -194 79 -273 -194 0 0 3 contingent labour Shared Cost Pension Additional Human Resources C&C/20/002 -20 0 -20 -20 0 -20 0 0 4 Voluntary Contributions
Human Resources C&C/20/003 Annual leave purchase scheme -50 0 -50 -50 0 -50 0 0 4
Cessation of cash kiosks and use of Customer Services C&C/20/008 -20 0 -20 -20 0 -20 0 0 3 alternative payment methods Review of major contracts within the Revenues & Benefits C&C/20/009 -20 0 -20 -20 0 -20 0 0 3 service Reduction in bank charges from Finance C&C/20/011 -100 0 -100 -100 0 -100 0 0 4 recommissioning Increased collection of temporary Housing C&C/20/012 -300 0 -300 -300 0 -300 0 0 2 accommodation charges Review of BTS medium term Housing C&C/20/013 -24 0 -24 -24 0 -24 0 0 3 contracts (procurement)
Finance C&C/17/001 Digitisation of Finance processes 0 0 0 -25 0 -25 0 0 1
All C&C/20C/011 Review Corporate Subscriptions 0 0 0 -62 0 -62 0 0 3
Reduction in corporate training budget Human Resources C&C/20C/012 to reflect reduction in employee 0 0 0 -23 0 -23 0 0 2 numbers Transformation & C&C/20/010 Review of wider ICT contracts 0 0 0 -100 0 -100 0 0 3 Technology (Application Portfolio Management) Revenues, Benefits & Customer Services new operating C&C/20C/001 0 0 0 -150 -150 -300 12 6 2 Customer Service model
All C&C/20C/002 Temporary recruitment moratorium 0 0 0 -1,150 500 -650 12 12 2 across department (except HRA and posts subject to OCA's)
Human Resources C&C/20C/003 Workforce reduction (vacancy 0 0 0 -1,141 0 -1,141 29 TBC 2 deletion / voluntary separation)
Page 38 of 177 Transfer DBS activity to Human Resources C&C/20C/006 Connect2Luton (Joint Venture 0 0 0 -30 0 -30 3 0 2 Partnership) Transfer of shopping parades from the HRA to General Fund, with GF properties moving to the HRA (subject Housing C&C/20C/013 0 0 0 -250 -250 -500 0 0 3 to appropriate arrangements being reached and consultation with the Tenants Board) BTS procurement saving on the Housing C&C/20C/014 materials contract starting in Aug 0 0 0 -150 150 0 0 0 3 2020 (one year saving but subject to the market and volumes) Revenues, Benefits & C&C/21/001 New Council Tax Reduction Scheme 0 0 0 0 -500 -500 0 0 2 Customer Service proposal for 21/22 Total Customer & Commercial Savings -818 -273 -1,091 -3,827 -523 -4,350 56 18
Public Health & Wellbeing Department
Adult Social Care WB&PH/20/001 Review Model of ASC Provision -150 0 -150 -459 -712 -1,171 TBC 16 2
Adult Social Care chargeable services Adult Social Care WB&PH/20/002 -100 0 -100 -100 0 -100 0 0 2 - inflation based increase
Financial efficiencies to ensure affordability of the Library Service, Commissioning WB&PH/20/003 whilst supporting the modernisation -100 -100 -200 -100 -100 -200 0 0 4 and transformation of the service in response to emerging needs
Commissioning WB&PH/20/004 Staffing Restructuring (vacant posts) -50 0 -50 -50 -129 -179 1 1 2
Adult Social Care WB&PH/20/005 ASC - Home Care Packages 0 0 0 -75 -100 -175 0 0 2
Adult Social Care WB&PH/20/006 ASC - Review of Reablement Flats 0 0 0 -20 0 -20 0 0 2
ASC Scale of Charges - Supported Adult Social Care WB&PH/20/007 0 0 0 0 -10 -10 0 0 4 Living Charges
Adult Social Care WB&PH/20/008 Review of ASC Transport 0 0 0 -100 -650 -750 TBC TBC 1
Review clients Travel Cost in Adult Social Care WB&PH/20/009 0 0 0 -50 -150 -200 0 0 2 purchased care budgets.
Page 39 of 177 ASC Restructuring - Side by Side Adult Social Care WB&PH/20/010 0 0 0 -400 -100 -500 TBC TBC 3 programme Review of Supported Living and Adult Social Care WB&PH/20/011 0 0 0 -50 0 -50 0 0 3 Respite. Implementation of Prepayment Cards Adult Social Care WB&PH/20/012 0 0 0 -300 -160 -460 0 0 1 to all DP clients.
Adult Social Care WB&PH/20/013 Review of Residential Care 0 0 0 -400 0 -400 0 0 1
Review Inflationary Increases to Adult Social Care WB&PH/20/014 0 0 0 -330 0 -330 0 0 4 Providers Review Adults Commissioned Adult Social Care WB&PH/20/015 0 0 0 -131 -394 -525 0 0 2 Services. Review of base budgets across the Commissioning WB&PH/20/016 0 0 0 -30 0 -30 0 0 4 service Review of Mental Health Social Work Commissioning WB&PH/20/017 0 0 0 0 -180 -180 0 0 3 provider
Commissioning WB&PH/20/018 Public Health Services Review 0 0 0 -1,000 -500 -1,500 0 0 2
Review of base budgets across the Commissioning WB&PH/20/019 0 0 0 -340 0 -340 0 0 4 service Review of base budgets across the Adult Social Care WB&PH/20/020 0 0 0 -4 0 -4 0 0 4 service
Whole Dept. WB&PH/20/021 Temporary recruitment moratorium 0 0 0 -350 350 0 0 0 1 across department (subject to OCA's) Total Public Health & Wellbeing Savings -400 -100 -500 -4,289 -2,835 -7,124 1 17
Place & Infrastructure Department
Generate additional Primary Authority Public Protection P&I/18/005 -50 0 -50 -50 0 -50 0 0 4 income Increase capital fee element of capital Public Realm P&I/19/008 -200 0 -200 -200 0 -200 0 0 4 schemes to 15% Introduce access charges for the Public Realm P&I/19/004 busway to fund ongoing costs and 0 -20 -20 0 -20 -20 0 0 4 environmental impact Reduce repair & maintenance costs Property & E&R/18/004B on the property estate. Also Links to -52 0 -52 -52 0 -52 0 0 4 Construction Services WB&PH/20/001 Procurement employee savings Procurement E&R/20/002 -100 0 -100 -100 0 -100 2 2 1 (vacancies)
Page 40 of 177 Passenger Transport Reduction in PTU External Vehicle E&R/20/003 -170 0 -170 -170 0 -170 0 0 4 Unit Hire Recycling/ Refuse Review of recycling stream collections E&R/20/004 -500 0 -500 -500 0 -500 0 0 2 Collection for glass & green waste
Property & Rationalisation of the Community, E&R/20/006 -825 -825 -1649 -825 -825 -1,649 0 0 1 Construction Services Leisure and Cultural Estate
Highways service options review Highways E&R/20/008 -400 0 -400 -400 0 -400 0 0 4 reduce costs and increase income
Additional parking income from Parking E&R/20/010 -152 0 -152 -152 0 -152 0 0 2 charges including inflation Remove consultants budget for waste Waste Management E&R/20/019 -145 0 -145 -145 0 -145 0 0 4 disposal contract review Neighbourhood Enforcement Team - Public Protection P&I/20C/002 Staff Reduction and reduction in 0 0 0 -170 0 -170 4 4 2 operational hours Service reduction in regulatory Public Protection P&I/20C/004 services due to deletion in vacant 0 0 0 -183 0 -183 6 6 2 posts Concessionary Fares - reduce spend Public Realm P&I/20C/005 in line with reducing number of 0 0 0 -580 0 -580 0 0 3 journeys Planning & Transport P&I/20C/006 Major Projects - delete 2 posts 0 0 0 -60 -22 -82 2 1 1
Planning Policy & Environment Team - Planning & Transport P&I/20C/008 temporary freeze on vacant posts 0 0 0 -126 126 0 0 0 1 (one-off) Moving Ecology to Parks and Public Realm P&I/20C/009 0 0 0 -15 0 -15 0 0 1 rationalisation of contracts Cease provision of free companion Public Realm P&I/20C/010 0 0 0 -25 0 -25 0 0 2 bus passes
Economic Development Team review and rationalisation, with alignment to Inclusive Growth P&I/20C/011 priorities of Luton 2040 and Covid-19 0 0 0 -79 -34 -113 3 1 2 Economic Recovery Plan and tapping into external funds to support delivery
Highways maintenance - reduce Public Realm P&I/20C/012 0 0 0 -393 0 -393 0 0 4 spend on maintenance Energy saving street lighting achieved Public Realm P&I/20C/013 0 0 0 -100 0 -100 0 0 1 through LED rollout
Page 41 of 177 Emergency revenue savings - School Public Realm P&I/20C/014 0 0 0 -23 0 -23 1 1 2 Crossing Patrols Green garden waste - move towards Public Realm P&I/20C/015 0 0 0 -300 0 -300 9 0 2 a chargeable model
Public Realm P&I/20C/016 Signs and lines reduce spend 0 0 0 -50 0 -50 0 0 4
Property & Savings from buildings being closed P&I/20C/017 0 0 0 -350 350 0 0 0 4 Construction Services for several months (one-off) Property & Deletion of vacant posts across the P&I/20C/018 0 0 0 -113 0 -113 3 3 2 Construction Services division
Planning & Transport P&I/20C/019 Waste contract inflation renegotiated 0 0 0 -100 0 -100 0 0 4
Employee underspends across the All P&I/20C/020 0 0 0 -121 0 -121 0 0 4 department April/May Property & P&I/21/001 Office Estate Rationalisation 0 0 0 0 -152 -152 0 0 4 Construction Services
Total Place & Infrastructure Savings -2,593 -845 -3,438 -5,380 -576 -5,956 30 17 Children, Families and Education Department Family Resource Service-To develop a Family Resource Service - Quality Improvement & reviewing all resource services in CFE/20/001 0 0 0 -1,345 -148 -1,493 TBC TBC 2 Practice Innovation children operational services to create one resource service.
LSCB-Savings in Local Safeguarding Quality Improvement & Board budget (reduction in training CFE/20/002 0 0 0 -16 0 -16 0 0 4 Practice Innovation budget and additional partner contributions) Quality Improvement & Services Review-Service Review- CFE/20/003 0 0 0 -79 0 -79 2 2 1 Practice Innovation Young people risk of offending Children in need and children looked after resource review. -Review current Operations, Social staffing establishment to create a CFE/20/004 0 0 0 -50 -50 -100 TBC TBC 2 Work and Early Help streamline process and remove any potential duplication.
Section 17-Reduce section 17 – Operations, Social CFE/20/005 financial assistance - based on 0 0 0 -270 0 -270 0 0 2 Work and Early Help underspend.
Page 42 of 177 Line by line budget review (supplies & services)-Based on 19/20 final outturn, line by line review of supplies Whole Dept. CFE/20/006 0 0 0 -107 0 -107 0 0 4 & services budgets (e.g. room hire, catering/members training)
Reduction in Investment-Reduction in investment into Children’s Social Care (agreed by Exec on 27/4/20 on Whole Dept. CFE/20/007 0 0 0 -500 500 0 0 0 4 demand led approach in year only) but to be reviewed again in readiness for 21/22 Family Information Service-Family Education CFE/20/008 Information Service Saving (one-off) 0 0 0 -21 21 0 0 0 4 14-19 Progression and Transition Team-Increase income to 14-19 Education CFE/20/009 0 0 0 -30 30 0 0 0 4 Progression and Transition Team (one-off) Education CFE/20/010 SEN-Savings in SEN budget 0 0 0 -51 32 -19 0 0 2 Education Welfare Service-Increased Trading Target (10k per annum) and Education CFE/20/011 deferment of appointment of vacant 0 0 0 -24 14 -10 1 1 4 post for 6 months (13k)
Moving from a School Improvement Service to an Education Standards Education CFE/20/012 and Effectiveness Service – staffing 0 0 0 -156 -43 -199 3 2 2 reduction
Schools Traded Service – Course Offer-This saving proposal ensures Education CFE/20/013 that the costs of operating courses 0 0 0 0 -4 -4 0 0 4 from The Leagrave Centre are fully covered by trading income. Education Psychology-Staffing Education CFE/20/014 0 0 0 -50 0 -50 1 1 2 reduction Virtual School Savings-Savings within Education CFE/20/015 0 0 0 -10 0 -10 0 0 3 the Virtual School budget Youth Advice Service -Staffing Education CFE/20/016 0 0 0 -50 0 -50 2 2 2 reduction Admission Appeals -This proposal Education CFE/20/017 increases the income target for 0 0 0 -32 0 -32 0 0 4 admission appeals Elective Home Education (EHE)-This savings will reverse the recent growth Education CFE/20/018 in funding allocated to this area. 0 0 0 -30 0 -30 0 0 2
Page 43 of 177 School Linking and Supplementary Education CFE/20/019 Schools-Cease these activities 0 0 0 -27 0 -27 0 0 1 Early years-Staff Reduction and Education CFE/20/020 ceasing of support contract 0 0 0 -20 -32 -52 1 0 1 School Meals Service-Ceasing to operate the School Meals Service and Education CFE/20/021 0 0 0 -75 -550 -625 260 45 2 remove completely the current GF subsidy. Total Children, Families and 0 0 0 -2,943 -230 -3,173 270 53 Education Savings
Total General Fund Savings -3,868 -1,217 -5,085 -16,900 -4,707 -21,607 365 107
Impact on Equalities Key 1 - Required, Not Started 2 - Work in Progress 3 - Completed 4 - Not Needed
Page 44 of 177 Appendix D
Reduction in income due to pressures caused by COVID-19 including LLAL.
Income source £ Business Rates cash receipt losses £4,494,072 Council Tax receipt losses - LCTS £3,476,000 Collection fund losses total £7,970,072 Highways and Transport Sales Fees & Charges (SFC) losses £1,993,012 Cultural & Related SFC losses £102,366 Planning & Development SFC losses £135,000 Other SFC income losses £1,713,557 Sales, Fees & Charges (SFC) income losses total £3,943,935 Commercial Income losses (airport) £46,700,000 Commercial Income losses (property) £521,377 TOTAL INCOME LOSS £59,135,384
Page 45 of 177 Appendix E
Emergency budget engagement – interim report
Executive summary
We have had a very positive response to the engagement so far:
Approximately 7,500 people have signed the petition to government for a crisis fund We’ve secured a huge amount of local, regional and national media coverage of the council’s budget plight to support our lobbying to government for crisis funding Almost 600 savings ideas have been put forward by the public and staff
A large proportion of the ideas received during the engagement are included in the list of savings proposals being considered by members for the emergency budget. This shows that those we engaged with are broadly in favour of many of the areas the council is looking at to make savings.
Savings ideas which have not been taken forward were usually because they can’t be done by law or because it is thought that they would not generate a saving.
Some of the comments received demonstrated some unhappiness from residents that the council is considering making cuts and there were some views expressed that there was an over-reliance on the airport to fund services. Some other responses also suggested that there was confusion over how the council is funded and the types of services it needs to fund.
To counter the above, comprehensive FAQs has been produced and published to explain the financial situation in more detail, correct some of the myths and also to show residents and staff which of their ideas are being taken forward. The FAQs are attached as appendices.
Some of the key themes/ideas for savings which have been put forward so far include:
Streets and parking – ie dim/turn off street lights, stop non-essential road improvements
Council office, buildings and land – ie more staff working at home and reducing the council’s office estate
Sports, leisure and culture – ie review the offer/number of buildings and events the council funds
Parks, open spaces and grass – ie have fewer grass cuts / create meadows with wild flowers
Capital projects – ie stop/delay major building and infrastructure projects where savings can be achieved
Pay and salaries – ie freeze recruitment at the council and have fewer higher-paid officers and managers
Debt Recovery – ie chase more of the outstanding money owed to the council
Income generating ideas – ie organise fundraising events, establish a lottery fund, trade more of the council services for profit
Community and volunteering – ie get more volunteers to help with street services and other council services such as supporting the elderly and cleaning the streets
Page 46 of 177 Appendix E
Some of the main concerns raised by residents during the engagement so far include:
Cutting services to vulnerable people and the impact this could have on them
Nervousness about any changes to black bin waste collections (but some support for reduced garden waste collections)
That there is not enough clarity on the budget to make informed views.
The next phase of engagement we’re currently in includes the council’s detailed spend, income breakdowns and fuller picture of savings proposals to give people as much information as possible to make informed comments.
Background
Covid-19 has thrown councils across the UK into turmoil but none more so than Luton Council which faces a £49 million deficit in our 2020-21 budget due to the massive reduction in revenue from our airport company, along with a drop in other commercial income, council tax income and business rates; and other costs. The council is able to draw on reserves to lessen the impact, but even after this one off injection of cash there is still a gaping hole in the budget of £22 million, hence the need to prepare an emergency budget in July.
Every effort has to be made to balance the budget by finding savings that do not directly impact on services and staff, however the impact is real and cannot entirely be avoided.
We have appealed to the public and council staff to support their council, firstly by signing a petition lobbying government for additional funding to stop essential services for our most vulnerable people being drastically cut or closed.
Secondly, we have asked them to put forward their ideas and savings proposals to help protect services as much as possible, and the people of Luton and staff did not disappoint as many ideas sent in are included in the emergency budget savings proposals.
This report is just an interim summary and people are encouraged to continue sending in suggestions and comments to [email protected], particularly on the full list of savings which have now been published. The consultation will close on 1 July and a report prepared to assist members in their decision-making at the emergency full council on 14 July.
Engagement programme overview
The engagement activity started on 5 May 2020 and is being delivered in four stages of engagement. We are now in stage 3:
Phase one (started on 5 May) To have a dialogue with the public and staff to explain the funding crisis and the need for an emergency budget, alongside continued lobbying to government. At this stage there were no savings proposals published and residents were invited to send in concerns and ideas for savings and to give their views on where cuts could be prioritised. Q&As were developed and regularly updated and a member-led webinar was recorded.
Page 47 of 177 Appendix E
Phase two (started on 26 May): Budget consultation and engagement on the high-level ‘ideas’ currently under consideration to give the public and staff an idea of where savings are being looked at. Residents and staff sent in feedback online and by email with their savings proposals.
Phase three (to start week 15 June): The more specific savings proposals have been published and people are encouraged to give their views. A series of video messages are being delivered by members and senior officers. The published list of savings makes clear what savings can be implemented right away and which ones require further service specific consultation and impact assessments before a decision is made by members. A final report will be included in the emergency budget papers.
Phase four (to start after 14 July): Full service specific consultations and impact assessments on the key savings proposals that require it.
The council’s senior leadership team have been reading all comments sent in by the public and staff to ensure that all proposals are duly considered and that all viable suggestions have been picked up and looked at in more detail.
Engagement methodology and communication
Due to the Covid-19 crisis and lockdown, no physical face-to-face meetings could take place. The methodology was therefore adapted to mainly online communication and engagement methods. However, it is recognised that it is important to reach out to members of the public who are not connected online and communication methods have been adapted where possible.
Below is a list of engagement methods used:
Dedicated email addresses: these were set up for staff and the public
Online feedback form: accessible from ‘Luton-Let’s talk’, the council’s consultation and engagement platform: www.luton.gov.uk/letstalk eLuton: the engagement was launched via eLuton and then regular updates have been provided reaching over 33,000 Luton subscribers. The regular updates contain key information, webinars and video messages. ePetition: working with our community, a petition was created to put pressure on government to provide emergency funding. Approximately 7,500 signatures have been collected so far, and we are aiming to get a total of 10,000 before the emergency budget meeting on 14 July in order to apply further pressure on the government through a further targeted lobbying effort backed by the community.
FAQs: put together from the questions and ideas received from the public and staff. Q&As are updated weekly and posted on the Intranet and website to keep people as up to date as possible, to respond to questions promptly and to bust common myths. See appendices for FAQs.
Webinars and video messages: from the corporate leadership team and members to increase engagement through a different method of communication for those who prefer listening rather than reading. The webinars were used not only to explain the current financial situation and need for an emergency budget but also to answer some of the questions raised and ideas proposed.
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Engagement workshops: these have been set up with young people and community and faith groups and their views will be incorporated into the final report.
Engagement with people in the community who do not have access online: working together with the Strategic Community Services Team, all community, faith and voluntary sector organisations have been contacted about the emergency budget engagement and the council’s call to submit concerns and ideas and ensure that their communities are represented.
Staff engagement: All departments have held meetings with their staff. In addition to the above, a dedicated page for the emergency budget was created on the Intranet holding relevant information, FAQs, staff focused webinars and video messages and various information to access support. The information is updated regularly.
Other ways to reach staff: To ensure that staff have every opportunity to access important council news and updates, key information has also been uploaded onto the eLearning platform, aimed at staff who cannot access the Intranet. There is small number of staff who do not have internet access and for these staff letters are being sent by post so they too can engage in the process.
Management brief: a summary update is sent to managers on key council information to help managers communicate important news and developments to their teams. The management briefs will include information on the emergency budget.
What has the feedback been so far?
This section reports on the comments made by the public and staff.
Staff comments to a large extent mirrored comments from the public but as expected many were more service and process focused.
It should be noted that all savings ideas received by the public and by staff were read by the Corporate Management Team and every staff member who wrote in received a personal response from the Chief Executive. The engagement has been mainly positive and constructive.
Staff Public Total Number of emails or online forms sent in 105 151 256 Number of ideas put forward 246 327 573 *these numbers represent comments processed as of 11 June so the number today will be much higher. Comments are sent in daily
A summary of these have been captured through the public Q&As (Appendix A) and staff Q&As (Appendix B). The Q&As show the breadth of excellent suggestions made and the responses given by the organisation. Many of these are being further explored.
The comments have been grouped in the following themes:
Streets and parking
A number of suggestions were sent in:
- dim or turn off street lights - stop all planned works for road improvements e.g. installing new roundabouts and road surfacing - use tarmac instead of concrete paving
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- increase or introduce parking enforcement – the car park at Leagrave Park was cited as an example to introduce car parking charges to stop commuters using the location as free parking
Council office, buildings and land
Many people observed that the majority of council staff had been working from home during the covid-19 lockdown and that this could be a new way of working for many enabling the council to sell stock, vacate rented offices or make a profit from a few council-owned premises.
Other suggestions were:
- collecting all outstanding monies from HMOs and office buildings - allowing residents to buy council land if residents wish to extend their property boundary - selling council owned housing stock
Sports, leisure and culture
Some residents suggested that some of the leisure and sports facilities should be closed, and where possible sold to private investors. Others suggested to merge Active Luton and The Culture Trust; and to review all library and community services with possible reduced opening hours or closures.
Others felt that prices could be increased, especially to users outside of Luton and to review the large community events such as the carnival and fireworks displays.
One of the ideas was to make exhibitions available online and live-stream performances and for the public to access these at a cost. Library services should invest in widening their online book offer ie audio books, Kindle books.
Parks, open spaces and grass
It was believed the council could save money by cutting grass less often and to leave parts of the parks and open spaces untouched to create meadows with wild flowers. One person suggested to mow paths in the park to allow easy public access.
Capital projects
The majority of comments and suggestions around this theme related to the airport, DART and Vauxhall Way. Some residents called for the council to stop the airport expansion and other capital projects either temporarily or permanently and to abandon the work on Vauxhall Way and DART. Residents wondered if instead assets, including land owned by LLAL should be sold to plug the deficit.
Some also questioned why there was such heavy reliance on the airport to fund council and local services. Responses to these are included in the Q&A.
Other residents held a different view and said that the airport’s closure would have devastating consequences for the local economy. A number suggested that the low cost of flying could be increased to bolster revenue.
The overriding message was to put on hold major non-essential projects where it could generate savings for the council.
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Pay and salaries
A number of suggestions were received on the topic of staff wages and councillor allowances. It was felt that in times such as these, as an act of solidarity, it should be considered for staff, mainly higher paid staff, to take a cut in wages and for councillors not to claim their allowance.
Other suggestions were to stop using consultants and contractors and to freeze all job recruitment.
There were also many suggestions to offer council staff voluntary redundancy, early retirement, a reduction in working hours, a career break or buying additional holidays in order to reduce compulsory redundancies. Other suggestions included removing car allowances and to end free parking for those staff that get it.
Debt recovery
It was the general view that the council should chase all outstanding money owed.
Some other ideas were to:
- develop a scheme where residents can lend the council money to protect certain services for example interest free or through bonds for residents who wish to invest in their council - negotiate all of the invoices/debts payable by the council including asking creditors for payment holiday
Income generating ideas
The public and staff came up with some very inventive ideas for the council to save money. Some of these are already being explored.
Some of these ideas included:
- organising fundraising events - establishing a lottery fund in Luton to sustain Luton services and projects - increasing income from private advertising on council property - providing low cost funerals (as a traded service) - a drive-in cinema in car parks - offering wedding packages at Wardown Park and Stockwood Park - Using open spaces, such as Stockwood Park and Warden Hills as temporary campsites for holiday makers
We also received suggestions for making more of existing and new trading opportunities and to join up services with other local authorities.
Community and volunteering
More involvement from the community in helping some of the council services was put forward as an idea by quite a few people, including for litter picking, keeping footpaths clear, neighbours getting together to care for their verges, flowers and shrubs on public land and parks, helping out vulnerable adults, reporting crime and antisocial behaviour. This was also seen by some as a way to improve communities coming together which has been so much more prevalent during the pandemic but also as a way to positively engage those involved in anti-social behaviour or community service.
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Benefits and council services
Some people offered to pay additional council tax, whereas others said that they would not be able to afford an increase. Others suggested that those who could afford it should contribute the bigger share. Others questioned the fairness of the method used for calculating council tax contribution and felt a review was needed. There was also a perception that the system is open to abuse and that this should be looking into and followed-up.
Looking after the vulnerable
A number of people wrote in to express their concerns about how cutting back services would affect the most vulnerable in society with some writing about the strain Covid-19 had put on their own personal circumstances. As a result a number of people were referred to the appropriate services to help them access support.
Particular concern for the future of the following groups of people was expressed:
- elderly and children needing care support - young people - those accessing adult social care services - those accessing mental health services (including children) - those accessing educational support services
Waste and recycling
A few people expressed concern that the council would reduce waste collection but others suggested a reduced or slightly revised service such as reducing garden waste and recycling but keeping the black bin waste as is. Some also suggested that the glass collection could be stopped altogether if bottle banks were made available.
Other ideas included:
- introducing modest charging for some services eg garden waste, large items - having designated public areas to deposit compostable waste - more fines for littering - reducing opening hours or close one of the tidy tips - joining forces with neighbouring authority for waste and recycling collections
Engagement and communications
We received comments requesting further information about the proposed cuts and generally about how the council currently spends the budget. The information about the council spend has been made available online as part of the Q&As. More information on the proposed savings have been made available now as part of the engagement
Other
Some of the other comments made have included:
- Concern expressed that children’s centres will close and would be willing to pay a little extra for the sessions - Plan for the next pandemic and reduce risk now
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- Less important council activity should be shelved until the situation improves - Turn all schools into academies - Automate more of our processes - Continue online meetings to cut down on the expense of travelling and printing
What next?
We are currently engaging on the full list of savings proposals which were published during the w/c 15 June.
Engagement workshops with young people, community and faith leaders and the voluntary sector to get their views on the proposals and some of their concerns
Staff engagement will continue in a more personalised way, led by corporate directors
All comments received will continue to be considered as they come in up until 1 July and the Q&As will be updated regularly to keep staff and public up to date on developments
A final report will be produced for Full Council on 14 July.
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Appendix A Frequently Asked Questions – public
Streets and parking
Could a chargeable ‘fast track’ road route to the airport be created? Enforced by ANPR cameras, with possible reduced rates for taxis, residents and plane ticket holders
This would take a considerable amount of resource and consultation to develop, and once the DART is complete we are aiming for this and other public transport to be the preferred method of travel for the majority of airport users.
Could you put non-essential roadworks, maintenance and grass cutting on hold?
We are reviewing our programme of works, however where projects have been started, or where disruption to residents will be reduced due to the lockdown, now is the best time to carry out that work.
Why have you lost money from car park charges in the crisis? Do you know how much?
In line with the government mandate that local authorities should provide free parking for NHS and care staff, the Council removed all car par parking charges for Council owned and managed car parks to support key workers and volunteers to easily access their places of work or other key locations (chemists, homes of patients/ vulnerable people etc.). Obviously with the country being in lockdown no-one else has allowed to be out so we are losing all the income we receive from people who normally pay to park when coming into work, town centre shops or to visit friends and family. Based on last year’s parking income – the cost of this is estimated to be around £125,000 per calendar month.
Can the council switch off street lighting or use more energy efficient bulbs?
The process towards using more efficient lighting has begun. We have already made significant savings by using LED lighting to dim street lights and with street lighting we must always balance costs with safety to the public.
Council office, buildings and land
Can the council sell off its office space and encourage staff to work from home more?
As a result of Covid-19 staff have been working remotely where possible with overwhelming success and this is something we anticipate continuing in the future. Not only that but we expect the town's air quality to improve as a consequence of a reduction in car journeys which will help us achieve our commitment of making the town net-carbon Zero by 2040
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Sports, leisure and culture
Can the council sell off all leisure facilities to the private sector?
The council is reviewing the offer of its leisure and cultural facilities. As part of this review, we are mindful that our leisure facilities offer more than just physical exercise opportunities and are intrinsic to the wider wellbeing of our communities and need to provide targeted services that are affordable and accessible to those in need.
Parks, open spaces and grass
Can the council reduce some parks to meadows/open spaces which require less maintenance?
The council has already reduced grass cutting in certain areas, allowing wild flowers and habitat to flourish. This has been appreciated by many and this may be something we can consider in our formal spaces without impacting on the enjoyment many take from our parks
Capital projects
Can the council order all work on the DART be stopped to save money?
Scheduled to open in 2021, work on the London Luton Airport-funded Luton DART is already at a very advanced stage with its major bridges, lengthy sections of the guideway, the core of both stations and some of the tunnelling already in place. The project continues to provide quality jobs and training for a local workforce and once operating will play a significant role in encouraging shift of passengers towards carbon neutral transport when travelling to and from the airport.
Can the council put the development of Power Court on hold?
Whilst the development of Power Court would provide significant regeneration to Luton centre it is not a council project, but is owned by 2020 Developments which is seeking to build a new football stadium as a centre piece for the area.
Pay and salaries
Has the council considered furloughing staff?
Yes, we have furloughed staff where it meets the government guidance, ie in our services which trade externally.
Can the council reduce the overall cost of salaries of senior management salaries to save money?
The council will have to look very carefully at everything it spends. We are having to review structures across the council at all levels, including those of senior management.
Can the council stop all current recruitment?
The council is looking at proposals that would freeze recruitment in some non-critical areas
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Can the council terminate the contracts of all interim staff/consultants?
The council is committed to reducing the numbers of consultants and agency staff it uses and has already made significant inroads in to this and will continue to address this issue through improved recruitment and retention schemes that value and reward permanent staff members.
Council Budgets
How does the council spend its budget and how is this divided between services?
Detailed figures grouped by Luton’s management structures are published in the Budget Book approved by the council each year. This can be found on our website as part of the Executive Agendas. The budget for 2020/21 can be found here
There are also charts, which show figures grouped by Local Authority reporting categories on pages 18 and 19 of the Council Tax Booklet, which can be found here.
Could residents pay future Council Tax in advance this year to make up the budget, and then freeze their payments at a later date?
This is not a viable option as Council Tax costs are re-calculated annually, and we do not yet have the data needed to make calculations for future years.
Can the council increase council tax?
Council tax, which is only a small proportion of our income, is already capped and we cannot increase it any more. The council currently has the lowest council tax in Bedfordshire and we have no desire to increase it putting further strains on household income.
Why is the council in this position?
The impact of coronavirus means our airport company has not been receiving any air passenger income so has been unable to pass on money to the council which we rely upon so heavily to fund many of your vital frontline services. Airport income is about half of all of our commercial income.
The other half comes from commercial rents, fees and charges and other trading income which is also massively reduced as a result of the crisis.
Over the last decade we have grown our commercial income to ensure that we could continue to deliver vital services in the face of massive drops in Government funding. On top of this, we will be receiving much less money through business rates, council tax, for this financial year.
Due to our successful activities over the last decade, commercial income makes up a larger proportion of our revenue than council tax to fund vital council services to our residents.
While almost all commercial organisations up and down the country have had a reduction in revenue due to the crisis, we are in a position where we still need to continue to deliver services to you.
Is an emergency budget and cuts to services the only option?
We have already made a plea to the government to provide the council with emergency and fair funding to help us through this crisis and have been lobbying through the regional and national
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media.
However if this money is not forthcoming we are compelled to consider painful solutions which will drastically affect services.
Many of you in the community are deeply concerned and have started an important petition to the government asking for emergency funding to avert what will be a disaster for the whole town. Please take time to sign it and pass it to others so together we can draw attention to the serious situation in which we find ourselves.
By law we have to produce and deliver a balanced budget. While we have financial contingencies in place meaning we don’t have to take the full £49m we’ve lost out of our budget, plans are now underway to prepare an emergency budget this summer where we will need to take £22m out.
Some figures say the council is facing a £49m shortfall this year and yet the emergency budget is looking at making savings of £22m. Can you explain these different figures?
The council is able to draw on reserves to lessen the impact of the loss of income from the airport and other sources in order to reduce the total anticipated shortfall of £49m. Even after this one off injection of cash there is still a massive hole in the budget of £22m hence the need to make savings of that order.
Has the council been too reliant on the airport?
Luton faced huge challenges throughout the period of government austerity. Since 2010 the council has had to make savings of £138m due to reduction in government funding. Government grant has gone from £120m in 2010 to £10m this year.
Our response to crippling years of austerity was to create innovative income streams to decrease our reliance on government funding. This enterprising approach is what has kept the town afloat during these years.
Money from the successful growth and operation of the airport has helped to meet the cost of council services. However, this is only one of many commercial income streams we’ve created to avoid drastic cuts before now. We are the second most successful local authority in the country for bringing in commercial income. (38% of our income is commercial income compared to just 36% for council tax. Our total commercial income last year was £53m, of this the Airport accounts for £27m
How much income does the council get from the airport?
Our airport company has been able to pay us an increasing revenue each year to fund services before Covid-19 hit, rising from £7m in 2013 to £27m last year.
How much money does the council hold in reserves and why can’t it be used to pay for the anticipated shortfall?
The council is using £23m of its reserves to meet some of the £49m in-year loss of income as a result of the Covid-19 crisis. While we have some additional reserves, these are designated for other purposes and contingencies, if required. Also the Chartered Institute for Public Finance and Accounting has very clear guidance regarding the use of reserves, namely that they cannot be drawn upon as a long-term solution for ongoing expenditure. While the future financial impact of the loss of income due to Covid-19 is still uncertain, we cannot afford to risk the long-term sustainability of the council’s finances by depleting its reserves.
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.
Has the council saved money from the airport and other income from previous years? If so why can't they use that to support services?
LLAL’s purpose is not to make a profit but to use the funds it receives from the airport in order to improve lives. The income it receives is used to fund vital council services, community organisations to support people in need and invest in future economic growth and job creation. LLAL is still exploring ways it can continue to support the VCS despite operations at the airport coming to a grinding halt.
Why have you lost money from council tax and business rates in the crisis? Do you know how much?
As a result of the coronavirus crisis, the economy has slowed down and we are facing the biggest contraction in the economy since the great depression of 1930. This is having an impact on the ability of people to be able to pay their council tax. We are receiving more and more council tax support claims and forecasting a huge rise in this over the coming months. Businesses are also being severely impacted by the crisis with many either closing or unable to pay their business rates at present. We are forecasting an £8m drop in income we usually receive from council tax and business rates which fund council services.
With airport travel likely to be curtailed for the foreseeable future, why is the council continuing to invest in this?
The council’s airport company is entirely focused on supporting and improving people’s lives, and driving economic and employment growth, both in Luton and neighbouring communities. We see it as vital that LLAL works hard not only to support safe passenger services at Luton but also continues to plan for how prudent investment in our stewardship of the airport can continue to benefit future generations.
This will be vital for supporting the local, regional and national recovery that will need to take place after the pandemic.
Since 2013 LLAL’s ongoing investment in the airport has delivered a £21m yearly increase in revenue to the council and significantly offset the need for harder cuts to vital frontline services in Luton, even after taking the financing costs of our development programmes into account.
Its additional social investment in key voluntary and charitable services now exceeds £130m over the last 12 years, and the value of this has never been more clearly demonstrated than through the emergency support LLAL has been able to provide over the last few weeks to the inspiring community response to coronavirus.
Income generating ideas
Could the council encourage the airport to increase their pricing, and in turn the income the council receives? E.g flight costs
We need to ensure that passenger charges to airlines remain balanced in order for London Luton Airport to remain competitive in relation to other airports in the UK market, therefore any changes in these need very careful consideration.
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Could the council offer the Council Chamber for hire for events?
The Committee Rooms are available to hire and we believe the Chamber will be a more attractive proposal following the refurbishment.
Can the council stop using translators for services or materials?
The council no longer translates materials as policy and only uses interpretation services when there are safeguarding issues that require us to fully understand a situation in order to protect vulnerable families.
Does the council have any lease contracts that can be terminated? For example company cars.
We will be reviewing all contracts to ensure we are getting absolute value for money, to drive further savings. We do not offer company cars.
Could we run a lotto?
This is worth considering but they are usually run to generate money for charities. We are also concerned about the resource to drive this at a challenging time.
The council should make sure they take action against benefit fraud, there is still a lot of this happening in Luton
The council is part of the Shared Anti-Fraud Service with local authorities across Hertfordshire and Bedfordshire to combat benefit fraud and would encourage anyone who is aware of, or suspects somebody of benefit fraud to report it here https://www.luton.gov.uk/Council_government_and_democracy/Fraud%20Investigation/Pages/def ault.aspx
Community and volunteering Can the council use volunteers or those doing community service to keep the streets clean and tidy?
It is always a shame that the council needs to spend money on clearing up after antisocial individuals and we regret having to spend money on this. We already have wonderful volunteers across the town doing this and we invite as many people as possible to join in with the community clean up days held throughout the year. We are always looking for more volunteers and anyone interested in helping can email [email protected]
Is there a way to consolidate advice agencies and their funding in Luton so there is no overlap? If the number of advice agencies were reduced then the number of management positions at these agencies could be cut back.
A number of these organisations are independent of Luton Council and we therefore have no jurisdiction over how they are structured. However, where we are responsible for services, we will continue to ensure they are run in the most effective way possible.
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Appendix B Frequently Asked Questions – staff
Council budgets
Why is the council in this position?
The impact of coronavirus means our airport company has not been receiving any air passenger income so has been unable to pass on money to the council which we rely upon so heavily to fund many of your vital frontline services. Airport income is about half of all of our commercial income.
The other half comes from commercial rents, fees and charges and other trading income which is also massively reduced as a result of the crisis.
Over the last decade we have grown our commercial income to ensure that we could continue to deliver vital services in the face of massive drops in Government funding. On top of this, we will be receiving much less money through business rates, council tax, for this financial year.
Due to our successful activities over the last decade, commercial income makes up a larger proportion of our revenue than council tax to fund vital council services to our residents.
While almost all commercial organisations up and down the country have had a reduction in revenue due to the crisis, we are in a position where we still need to continue to deliver services to you.
Some figures say the council is facing a £49m shortfall this year and yet the emergency budget is looking at making savings of £22m. Can you explain these different figures?
The council is able to draw on reserves to lessen the impact of the loss of income from the airport and other sources in order to reduce the total anticipated shortfall of £49m. Even after this one off injection of cash there is still a massive hole in the budget of £22m hence the need to make savings of that order.
Is an emergency budget and cuts to services the only option?
We have already made a plea to the government to provide the council with emergency and fair funding to help us through this crisis and have been lobbying through the regional and national media.
However if this money is not forthcoming we are compelled to consider painful solutions which will drastically affect services.
Many of you in the community are deeply concerned and have started an important petition to the government asking for emergency funding to avert what will be a disaster for the whole town. Please take time to sign it and pass it to others so together we can draw attention to the serious situation in which we find ourselves.
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By law we have to produce and deliver a balanced budget. While we have financial contingencies in place meaning we don’t have to take the full £49m we’ve lost out of our budget, plans are now underway to prepare an emergency budget this summer where we will need to take £22m out.
Has the council been too reliant on the airport?
Luton faced huge challenges throughout the period of government austerity. Since 2010 the council has had to make savings of £138m due to reduction in government funding. Government grant has gone from £120m in 2010 to £10m this year.
Our response to crippling years of austerity was to create innovative income streams to decrease our reliance on government funding. This enterprising approach is what has kept the town afloat during these years.
Money from the successful growth and operation of the airport has helped to meet the cost of council services. However, this is only one of many commercial income streams we’ve created to avoid drastic cuts before now. We are the second most successful local authority in the country for bringing in commercial income. (38% of our income is commercial income compared to just 36% for council tax. Our total commercial income last year was £53m, of this the Airport accounts for £27m
How much income does the council get from the airport?
Our airport company has been able to pay us an increasing revenue each year to fund services before Covid-19 hit, rising from £7m in 2013 to £27m last year.
How much money does the council hold in reserves and why can’t it be used to pay for the anticipated shortfall?
The council is using £23m of its reserves to meet some of the £49m in-year loss of income as a result of the Covid-19 crisis. While we have some additional reserves, these are designated for other purposes and contingencies, if required. Also the Chartered Institute for Public Finance and Accounting has very clear guidance regarding the use of reserves, namely that they cannot be drawn upon as a long-term solution for ongoing expenditure. While the future financial impact of the loss of income due to Covid-19 is still uncertain, we cannot afford to risk the long-term sustainability of the council’s finances by depleting its reserves.
Working from home/reducing office space
Can a greater proportion of staff continue working from home so that the council can stop renting expensive buildings, let or sell office space?
A large number of colleagues have raised the possibility of reducing our need for office space through continued working from home, allowing us to either dispose of existing office accommodation or use it as a source of income.
This is very much part of the council’s thinking for the future. Working from home works, as the last few weeks have proved. Obviously it is not an option for all services, but in many areas of the council we envisage that working from home for at least part of the time will become the norm.
Currently we are looking to arrange a phased return to offices and other council sites for those colleagues whose situation makes working from home impossible. However, social distancing
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requirements mean that office capacity will be limited to approximately one third of the previous level, so working from home will continue to be the requirement for many people.
It will take some time to evaluate exactly how we can make use of any surplus office space that becomes available, but we recognise that this is a very real opportunity for the council to either reduce its expenditure or increase income, and will take full advantage of the opportunity.
Agency & External Staff
Are there any plans to reduce the number of consultants and agency staff we currently use, and where possible redeploy existing staff to those roles?
We are working hard to increase the proportion of permanent workforce and have been starting with the managers. This is a process that has to be managed with the key objective of service delivery maintained as a priority, but minimising costs on agency appointments is definitely part of our plan going forwards.
Does the council spend a significant amount on external legal services that could be delivered in house? Would there be the capacity to bring this in house, and if capacity allows, offer legal support as a traded service?
We would always much rather use in house than external where possible and as the Unitary LA with the 2nd highest proportion of commercial income in the country are always keen to trade rather than cut.
Increasing Income
In the Food Legislation it allows Councils to charge for certain things including Food Hygiene Rating Scheme (FHRS) ‘rescores’. Is this something we can introduce?
This is absolutely something we should look into and has been raised with the relevant team.
Is the council in a position to sell any of their housing?
The council owns around 7,700 homes, most of which it lets out as council housing. Financial rules mean that these properties are held in their own separate account, so any sales would only be available within the council housing service rather than for the wider council as a whole. Therefore, there would be no financial benefit to selling council homes in this way. And we wouldn’t want to do this anyway given the severe shortage of affordable accommodation in the town.
We do own some homes that are not let for council housing and therefore don’t have the same financial restrictions. These are currently used as temporary accommodation for homeless households. If we sold them, we would still have to find housing for the homeless households living in them, which is usually more expensive to access.
Could a chargeable ‘fast track’ road route to the airport be created? Enforced by ANPR cameras, with possible reduced rates for taxis, residents and plane ticket holders
This would take a considerable amount of resource and consultation to develop, and once the DART is complete we are aiming for this to be the preferred method of travel for the majority of airport users.
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Could we operate an outdoor cinema at London Luton Airport, like Birmingham Airport?
The company organising the tours are still considering the airport as a potential additional location. They are splitting the locations across the country based on catchment areas and proximity to each other. They have two locations in London already.
Is development close to Stockwood Park a possibility? There is open space for a potential housing development near the redundant bowling green.
This is a complex matter that would require the full backing of planners; members and residents, which may be hard to secure.
We could hold a number of events, such as fun days, across the town where profits and entry fees go back to the council budget. The events would also be a chance to showcase the variety of services the council can offer residents.
A very innovative idea. One of the many, many things that makes Luton special is the money donated by LLAL to the local VCS- circa £9m a year. Given we are having to reduce our support for the VCS sector going forward to £8m a year and our local voluntary and community sector organisations are so vital to making Luton work and helping the Council to function, it might be better that they are the beneficiaries?
Would vending machines in council offices bring income back to the council?
This seems logical, but in fact when we had the vending machines in offices previously we had to subsidise them as they didn’t make a profit.
Would a paid for phone line offering company for those in isolation generate income?
This is something we would prefer to do through volunteers so that we are encouraging people out of isolation.
Could the council expand its business opportunities, such as with an energy business or investing in solar energy farms?
Unfortunately other Local Authority energy companies are not doing well financially currently. However we are looking at a solar farm investment working with Vauxhall and the airport.
Has the council looked at advertising and sponsorship opportunities on council property, including screen advertising on the waste fleet?
We already do this but are determined to increase advertising revenue and have been using industry best practice to help us shape our advertising and sponsorship strategy going forward, which will continue, and we welcome new ideas.
Some councils operate a tip shop where folk can buy stuff that otherwise go to landfill. Such as furniture, mirrors, light fittings, timber, kitchen units, baths etc. is this an option for Luton?
We can look into examples of this and see if this could work.
Could the Highways team charge for pre-agreement consultations with developers?
Thanks for the suggestion. We will explore this.
Page 63 of 177 Appendix E
Could open spaces, such as Stockwood Park and Warden Hills act as temporary campsites for holiday makers? As we are close to the Chilterns, the Chilterns cycleway and the Chilterns Way running around the town the region may become popular this year.
We will certainly look into this and look at a business case.
Could we look at holding a car boot sale in the town centre?
This would be something we can look into in the future, once the lockdown is lifted.
Would the council be in a position to offer large areas for airport parking?
We do have plans for car parks as part of the Airport Plans
Could we create a “Luton Lotto” for Luton postcodes only so the money stays in Luton?
I would be interested to see examples of this in other areas.
IT development
Could we issue IT guidance to all staff when they receive new IT equipment, to ensure it has a good life expectancy?
The modern devices we are deploying tend to have longevity and good battery life. Our replacement battery bill is tiny. However, here is some good advice regarding battery life, from a reputable source: https://www.techradar.com/uk/news/mobile-computing/10-ways-to-make-your-laptop- battery-last-longer-513756
Will the council be exploring online meeting programmes such as Zoom and Microsoft Teams, in addition to Skype? This will save on rooms hire, travel expenses and parking etc?
We will be looking at all of these areas you mention. Our Transformation and Technology team is currently testing an alternative business meeting option to Skype that will offer a considerably improved service. Keep an eye out for updates on this in the near future.
Can the council make its documents digital, for example contracts?
We will look into this idea.
Many departments hold the same details on separate systems. Is there a single use system we could use to reduce licence fees across the council?
We are currently looking into systems across the organisations to see if there can be any reductions.
Could the council move to laptops and docking stations rather than desktops and Wyse terminals?
We are absolutely moving in that direction and will continue to do so.
Could departments with a large number of paper records go digital?
Absolutely, and this will continue to be encouraged where possible.
Page 64 of 177 Appendix E
Salaries, redundancy and staff T&Cs
Will pay reductions and a suspension of pay awards be considered?
The possibility of salary reductions has been considered, but could be counter-productive if it leads to a higher turnover. Across many roles within the council we are already paying a little less than other organisations and even with a smaller workforce we still need to keep and attract talented people.
Specifically, we already pay less than other councils at M3 and above. We generally pay more at below M3.
Regarding pay awards over the coming years, this is not really a matter the council can decide unilaterally as we are part of the national T&C negotiation.
Would a moratorium on all supplies and services, unless needed to deliver frontline or emergency services, be an option?
This is an option that is currently being explored.
Could a council wide voluntary redundancy scheme be considered?
It certainly is, and we will be opening up the Voluntary Redundancy Scheme in June.
Where there is capacity could we look at a reduction in hours for some staff?
Where the needs of the service allow it is currently possible to vary/reduce hours. We will do more to promote this option.
Could a freeze on essential car user allowance and free parking be suspended for all staff, especially those working from home?
This has been discussed, but at present Members and Unions aren’t keen on changes to Terms and Conditions.
Could the council furlough some staff, as other authorities have?
We have furloughed some where it meets the government guidance and have asked the LGA for guidance as we are aware that some councils might be going further than we are.
Would a freeze on all but statutory training save money?
Whilst this might produce a short-term saving, there are arguments against it if we aren’t developing our staff.
Could the council structure be flattened any further?
We will be looking at the structure.
Will the flexible retirement scheme be promoted so those eligible can decide if they would benefit?
We will look into making sure this process is clearly promoted so employees can see if it is an option for them.
Page 65 of 177 Appendix E
Service changes
Could changes be made to waste collections, including looking at charges for garden waste, special waste collections, and the possibility of reducing households bins and collections in favour of collection points?
These are interesting ideas. The waste services that we offer are currently being looked at to see what further savings can be made.
Is there scope to pool/centralise services, such as PA support, across the council.
We will look at this as we develop the proposals around the shape and function of the council.
Would suspending large projects, such as the DART, be of financial benefit?
Contractually it would cost us more money to pause or halt the DART project than to complete it. Additionally as part of the growth of the airport that has seen an increase in annual revenue to LBC from the Airport from £6m per year in 2013 to £27m last year (after the costs of financing the DART), we made a commitment to the airlines that we would deliver the DART.
Could we look at anti-social behaviour fines, such as open alcohol, in the town centre?
This is already in place
Could enforcement officers (traffic, neighbourhood etc.) report issues they see when out and about, for example fly tipping and blocked drains?
We will explore this idea.
Could the library service be changed to be more of a digital book ordering service to save on building and staff costs?
The Library Strategy is currently being looked at and this suggestion has been passed to the team for consideration.
Could street lights be turned off or dimmed to save costs?
The recent change in street lights is to LED lights that use a fraction of the energy of the old type and are cheaper to run. One of the proposals for Members to consider is to dim the lights by 50 per cent.
Could becoming part of Central Bedfordshire Council make a number of savings?
This would need to be decided by national government.
Other Ideas
The council could create a register of “street champions” who volunteer to litter pick, clean up their streets, paint fences, meet and greet and support vulnerable people- along the lines of the coronavirus champions. They could also support the council in delivering some of its advisory services locally.
Really like this thinking, we will look into what can be done with this.
To help invest in future growth locally, could we allow businesses who need to social distance their customers have more street space –chairs tables etc.
A good idea which we will discuss with the relevant teams.
Page 66 of 177 Appendix F
National Luton Funding Source Background Comments Date The first tranche of funding announced on 19 March was primarily to meet the increased demand for and enable additional support across adult social care; meet the £3.2bn £11,258,007 Emergency Grant Funding additional costs of providing children’s social care; provide 19-Mar-20 additional support for the homeless and rough sleepers; support those at higher risk of severe illness from COVID-19; and meet pressures across other services. Budget 2020 established a £500m hardship fund to support £1.4m is allocated “economically vulnerable people and households” affected per £150. by COVID-19, administered by local authorities. It is £500m £2,100,000 Hardship Fund Allocation 24-Mar-20 anticipated this funding will primarily be used to reduce the delayed due to council tax liability for individuals in an area by £150 in system issue 2020/21. At Budget 2020 (covered in BRIL 3/2020) and announcements throughout March, the government S31. At 15 Jun, Est. Business rate 100% relief - increased the Retail and Rural Businesses discounts already £9.7bn estimate £25m 22-Apr-20 £25,000,000 (retail & hospitality) available to move these to discounts of 100%, with the relief award applying to occupied retail, leisure and hospitality properties in the year 2020/21 Local authorities will claim be able to costs incurred from government up to a maximum based on the number of C-19 Rough Sleeper (for self £3.2m £32,250 rough sleepers reported in the Autumn 2019 snapshot. 17-Mar-20 isolate) MHCLG wrote directly to councils to advise them of the maximum figure and providing a grant claim form. CBSSG can only be spent on supporting bus services that C-19 Bus Service Support £1.67m £33,205 have been affected by, or need to be adjusted because of, 6-May-20 Grant the impact of COVID-19.
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National Luton Funding Source Background Comments Date Initially at Budget 2020 and then through further announcements the government introduced a Small Business Support Grant Business Grant Fund (SBGF) with £10,000 paid to those (Small Business Grants Fund £24.5m paid out. businesses eligible. A Retail, Hospitality and Leisure Grant £12.3b £31,114,000 (SBGF) and the Retail, £30m planned. 12 02-May-20 Fund (RHLGF) has also been introduced to award grants of Hospitality and Leisure Jun. Julie either £10,000 for properties with a rateable value of up to Grants Fund (RHLGF) £15,000; or £25,000 for properties with a rateable value of over £15,000 and less than £51,000. 5% of £31b if On 2 May, the government announced that £617m (5% on spent. At 12 June, top of the £12bn already committed to business support £1.3m is assumed £617m £1,555,700 Discretionary Grant Funding grants) of additional funding for local authorities. The 13-May-20 to be available. funding is to provide top-up grants to businesses not £1.3m spend covered by the SBGF or RHLGF schemes. planned. The primary purpose of this fund is to support adult social 75% Care home care providers, including those with whom the local providers, 25% £600m £1,498,481 Infection Control Fund authority does not have a contract, to reduce the rate of 14-May-20 Dom care COVID-19 transmission in and between care homes and providers support wider workforce resilience Families with children that have complex needs and disabilities will receive grants for vital equipment to make their lives easier while implementing social distancing £37.3m TBC Family Fund 19-May-20 measures, including computers, specialist equipment and educational toys. Families in England can find out more and apply for grants from Family Fund directly. Reopening High Streets Help councils in England introduce a range of safety £50m £187,988 Safely Fund (European measures in a move to get people back to work and 24-May-20 Regional Development Fund) customers back to the shops.
Page 68 of 177 Local authorities will be central to supporting the new test £300m £1,425,693 Track & Trace and trace service in England, with the government providing 11-Jun-20 a new funding package of £300 million. The additional funding will allow councils to continue to Local Welfare Assistance provide discretionary support to those facing severe £63m TBC 11-Jun-20 Fund hardship to allow them to pay for food and other necessities.
Page 69 of 177 Report For: Executive Item No: Date: 29 June 2020 Report Of: Dev Gopal. Service Director, Finance & Audit 9 Report Author: Tim Lee, Principal Accountant
Subject: 2019/20 Provisional Revenue and Capital Outturn Lead Executive Councillor Malcolm Member(s): Wards Affected: All Consultations: Councillors ☐ Scrutiny ☒ Stakeholders ☐ Others ☐
Recommendations 1. Executive is recommended to:
a) note the over-spend of £0.195m reported at the provisional outturn figures for 2019/20, subject to finalising some areas of capital resourcing and treasury management. b) approve the budgets requested for carry forward to 2020/21 c) approve the movements in reserves arising from the outturn position for 2019/20 d) approve the following items of capital expenditure where 2019/20 spend was in excess of the current budget: PI1, LTP Package for Integrated Transport, £206,000, funded by capital grant PI2, LTP Highway Maintenance, £9,000, funded by capital grant PI52, Library Building Refurbishment, £98,000, funded by capital receipt
Background 2. The Council’s Budget is monitored monthly throughout the year and reported to the Executive on a quarterly basis. This report shows the provisional outturn position for 2019/20 subject to Audit, compared to the approved budget and the cumulative monitoring forecast.
3. Additional budget resources of £10m (gross) were provided in 2019/20 to the services facing the largest spend pressures. A specific savings contingency was also included in this year’s budget, to allow for the phased delivery of the 2019/20 budget savings over 2 financial years through to March 2021.
4. The closure of this year’s accounts has taken place concurrent with the emergence of the Corona Virus pandemic and this has impacted on the final outturn position for 2019/20 in some services, including some areas of income and receiving the first instalment of Emergency Funding from the Government on 27th March 2020, prior to 19/20 closure. The emergency funding will be set aside in reserves and earmarked against the additional costs and income losses that will need to be managed in 2020/21 due to Covid-19.
Page 70 of 177 5. The impacts from the pandemic are extremely serious for the Council, particularly in relation to the loss of commercial income that supports delivering the services needed by the community. A Revised Emergency Budget Report for 2020/21 is also being considered by the Executive alongside this report, detailing the expected financial impact of the pandemic and the recovery measures that will be needed.
The Current Position 6. The Council has been managing a number of significant cost pressures in delivering core services over recent years, against the backdrop of cumulative cuts in funding from Government. To assist managing these pressures, additional budget resources of around £10m (gross) were provided in 2019/20 to the services facing the largest spend pressures; in order to assist with achieving the longer term measures needed to keep the Council’s budget sustainable, including the additional budget savings needed to set future budgets. A specific savings contingency was also included in the 2019/20 budget to allow for the phased delivery of this year’s savings over the 2 financial years through to March 2021.
7. Work continued during 2019/20, to implement the efficiency & sustainability measures originally set out in 2018/19, toward reducing costs where possible or to increase income without impacting on the front-line services needed by the community. But as reported in the Quarterly monitoring reports, this has only had a limited impact on the reducing the scale of the budget overspends reported by services for 2019/20, given the ongoing levels of demand.
8. The largest cost pressures over the year continue to be:
supporting the needs of vulnerable children and families providing temporary accommodation to relieve homelessness repair and maintenance costs on the operational property estate
9. These are also supplemented by smaller pressures across several other service areas.
10. The final monitoring forecast reported to the Executive in April predicted total service overspends of around £9.25m for 2019/20. This was mitigated in the wider monitoring forecast by deploying the full £5.9m of general contingency budgets included in this year’s budget and by some one-off gains in the corporate resource accounts relating to borrowing costs, interest earned on investments and capital financing costs; giving a total net position that was approximately balanced at the final forecast for the year
11. The provisional outturn position at closure of the 2019/20 accounts, after allowing for £0.284m of carry forward budgets and prior to Audit is an overspend of £0.195m for the General Fund.
Cumulative Monitoring Variations to Budget 2020/21 – Largest Movements
12. The largest movements reported in this year’s monitoring forecasts and the provisional outturn position are shown in the table below. There are a few notable changes in the final position compared to Q3 forecast but in total, these have been largely contained by other compensating underspends elsewhere in the accounts. Further information on the main variations is provided later in this report and on Appendices A to F, that detail the outturn positions for each department.
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Monitoring Cumulative Main New Variations Forecast on Costs/Income Report Forecast Quarter 1 £3.0m net £3.5m overspend on children’s care/family support incl. travel overspend £1.3m overspend on temporary accommodation for homelessness (incl. partial £0.5m overspend on repairs & maintenance on property estate use of £0.7m IT Costs contingency) £0.5m unachieved procurement savings £0.6m revenues and benefits service (costs & income) £0.4m Coroners Service/Parking Income £0.4m Adult Learning/ Crematorium Income -£2.9 use of specific savings contingency -£2.1m net gain on Borrowing Costs, Investment Income & Airport Dividend Approx. balanced net of remaining contingency budgets Quarter 2 £3.7m net £0.3m increased overspend on children/family support overspend £0.9m increased overspend on temporary accommodation for (incl. partial homelessness use of £1.0m increased overspend on property estate repairs & contingency) maintenance £0.4m overspend on business intelligence & strategic change £0.7m £0.1m increased overspend on IT Costs increase from £0.3m of smaller service overspends (net) Q1 -£0.3m increased net gain on Borrowing Costs, Investment Income & Airport Dividend -£1.4m of additional corporate level grants incl. business rates compensation £1.0m overspend net of remaining central contingency budgets Quarter 3 £0.1m net £0.4m increased overspend on children/family support underspend £0.2m increased overspend on IT Costs after use of £0.6m increased overspend on property estate repairs & all maintenance contingency £0.4m overspend on food waste trial/street light energy costs -£1.3m estimated underspend on net housing benefit costs -£0.5m underspend on Adult Social Care costs £3.8m -£0.4m of smaller service underspends (net) gross/£1m -£2.8m use of contingencies to meet forecast service overspends net reduction -£0.4m further net gain from Borrowing Costs, Investment Income, from Q2 Airport Dividend and capital charges
Small surplus after full use of central contingency budgets Provisional £0.2m Including £0.3m of budgets to be carried forward to 2020/21. Outturn overspend Analysis of the final variations to budget is shown at paragraph 7
13. Consolidation of the Council’s statutory accounts is now underway. The deadlines for publishing the accounts have been deferred to allow for the impacts of Covid-19 on both Local Authorities and the Audit Sector.
Goals and Objectives 14. To report the provisional outturn position for 2019/20, subject to Audit and to approve the resulting movements in reserves arising from this.
Page 72 of 177 Proposal General Fund Revenue Budget 2019/20
15. The provisional outturn position for 2019/20 after contributions to and from specific operational reserves is a net overspend of £0.195m compared to the annual budget, a variation of around 0.15% on total net expenditure during the year. This is slightly worse position than the small surplus of £0.062m forecast in the year’s monitoring up to Q3.
The final overspend is however a net position, with significant additional costs incurred for the year across several services, that has been offset by the full use of this year’s approved central contingency budgets and some significant short-term and one-off gains in the corporate resource accounts. The largest variations to the base operational budget underlying the provisional outturn position are:
Main Variations to Base Budget 2019/20 £’m Cost or Income Pressures children & family social care, including SEN transport (above £3.6m budget 4.7 increase) temporary accommodation for homelessness 3.5 corporate property estate and services (net R&M costs, above £0.8m budget 0.9 increase) transformation & technology services including ICT 0.8 unachieved corporate procurement savings 0.5 reduced parking income including penalty notices (part Covid-19 impacts) 0.6 planning & transportation services 0.5 revenues & benefits cost and income pressures (above £0.5m budget increase) 0.4 cemeteries & crematorium income 0.3 coroners service 0.2 Cost Reductions, Income Gains & Contingency Budget (one-off *) general contingency budgets, including phased savings delivery -5.9 * borrowing costs/investments/airport dividend (net position linked to major capital -2.7 schemes) * net additional corporate level grant funding (business rates relief compensation, -1.2 levy surplus and EU exit) * reduction in revenue costs of capital spend (mrp and resourcing) -1.2 * reduced pension costs (to specific reserve) -0.7 * reduced requirement on redundancy budget (to specific reserve) -0.6 GF education services including schools transport -0.5 operational self-insurance surplus -0.4 adult social care (excluding covid-19 emergency support funding) -0.3 Waste management -0.3 net cost of housing benefits -0.2 EU exit funding (to specific reserve) -0.2 Increased Butterfield profit share (to specific reserve) -0.2 Movements in Reserves (incl. emergency grant) emergency grant funding for covid-19 (initial payment in advance of -5.4 spend) one-off contribution to reserves (ring-fenced for covid-19 impacts in 2020- 5.4 21)
Page 73 of 177 increased contributions to specific operational reserves (Butterfield, 1.9 Pensions, Redundancy, EU Exit Funding) budgets carried forward to 2020/21 0.3 Net General Fund Overspend 0.2
Summary General Fund Outturn Position by Department 2019/20
16. The final net spend on General Fund services for 2019/20 was £129.905 million prior to movements in reserves. After allowing for the final operational contributions from and to specific reserves, there is a final overspend of £0.195m compared to budget, subject to Audit.
17. The Housing Revenue Account has a net underspend of £0.974m compared to budget for 2019/20, giving a final operational surplus of £1.619 million for the year. The surplus will help to maintain a prudent level of operational reserves to help meet future costs, including supporting the capital programme to improve and add to the housing stock. Within the outturn position, a contribution of £1.624m has been provided from revenue resources this year to support HRA capital spend on repairs and maintenance. Further information on the HRA outturn position and variations to budget is provided at Appendix F/Fi.
18. Total spend on the Schools Budget for 2019/20 is £152.944m against a budget of £150.542 million, giving a gross overspend of £2.402 million for the year. This has been met by contributions from available School reserves. The overspend divides approximately equally between central School functions and Schools individual budgets. Further information on the Schools outturn position is provided at Appendices C - Ciii.
19. A summary of each department’s outturn position compared to the approved operating budget and is shown in the table below:
General Fund Position 2019/20 Operating Final Variation Compared to Operating Budget Budget Spend +over/-under £million £million £ million Chief Executive 4.544 4.250 -0.294 Appx A Customer & Commercial 10.487 15.067 4.580 Appx B Children, Families & Education 54.289 58.535 4.246 Appx C Place & Infrastructure 35.834 37.874 2.040 Appx D Public Health & Wellbeing - gf 66.599 66.134 -0.465 Appx E Public Health 15.176 14.630 -0.546 Appx E Public Health Grant -14.978 -14.979 -0.001 Appx E Total Service Variation to Budget 9.560 General Contingencies 6.780 -0.239 -7.019 Corporate Accounts (excl. reserves) -46.198 -51.367 -5.168 Total Prior to Movements in Reserves 132.533 129.905 -2.627 Advance receipt of Covid-19 funding 0 -5.423 -5.423 Net contribution to specific operational 8.240 7.953 0.287 reserves, incl. Covid-19 funding Carry Forwards to 2020/21 0 0.292 0.292 Net GF Overspend 2019/20 132.820 133.014 0.195
Other Accounts Schools Budgets (met by DSG) 150.542 152.944 2.402 Appx C
Page 74 of 177 Contribution from Schools Reserves -2.402 HRA Operational Revenue Surplus -0.645 -3.243 -2.598 HRA contribution to capital resources 1.624 1.624 Final HRA Surplus -0.974 Contribution to HRA Reserves 0.645 1.619 0.974 Appx F
20. The final cumulative monitoring for the General Fund in 2019/20 predicted an underspend of £0.061m compared to budget. The final outturn position is an overspend of £0.195m, an increase of £0.256m compared to the predicted position. The change compared to the final forecast is summarised below, together with the HRA and Schools Budget:
General Fund Position 2019/20 Forecast Final Variation Compared to Forecast Budget Budget Spend +over/-under £million £million £ million Chief Executive 4.405 4.250 -0.155 Appx A Customer & Commercial 13.773 15.067 1.294 Appx B Children, Families & Education 58.417 58.534 0.117 Appx C Place & Infrastructure 38.833 37.874 -0.959 Appx D Public Health & Wellbeing - gf 66.046 66.134 0.088 Appx E Public Health 14.975 14.630 -0.345 Appx E Public Health Grant -14.978 -14.979 -0.001 Appx E Total Service Variation to Forecast 0.039 General Contingencies 0.954 -0.239 -1.193 Corporate Accounts (excl. reserves) -49.952 -51.367 -1.415 Total Prior to Movements in Reserves 132.473 129.905 -2.569 Advance receipt of Covid-19 funding -5.423 -5.423 Net contribution to specific operational 8.240 7.956 0.285 reserves (incl. Covid-19 funding) Carry Forwards to 2020/21 0.292 0.292 Net GF Overspend 2019/20 132.758 133.014 0.256
Other Accounts Schools Budgets (met by DSG) 151.291 152.944 1.653 Appx C Contribution from Schools Reserves HRA Net Surplus -1.247 -3.243 HRA contribution to capital resources 1.624 Final HRA Surplus -1.247 -1.619 -0.372 Appx F Contribution to HRA Reserves 1.247 1.619 0.372
21. More detailed analysis of each department’s final revenue position and monitoring over the year is included in the Appendices A to F of this report. Each appendix gives explanations for the most significant variations reported in the monitoring and the changes since the final monitoring forecast.
22. As reported in this year’s monitoring, the largest overspend pressures for 2019/20 are: Children Care & Family Services £4.7m overspend, £0.5m higher than the Q3 forecast. Homelessness including Temporary Accommodation £3.5m overspend, £1.4m higher than the Q3 forecast.
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23. Recovery measures in both services have had a limited impact on improving the position to budget over 2019/20.
24. Other notable changes from the Q3 forecast include:
a reduction in the net underspend on Housing Benefits due to higher than forecast final benefit payments a reduction in the net overspend on the operational property estate, due to additional income from a rent review and increased trading income, offsetting the overspend reported for repairs & maintenance.
Approved Central Contingency Budget
25. The final use for the central contingency budget is similar to the position reported in this year’s monitoring, with the full £5.9m of general and savings contingency budget needed to cover final costs for 2019/20. 2 further specific contingencies for redundancy and self- insurance costs are not fully used and the £0.8m underspend on these has been transferred to specific reserves at closure and is ring-fenced to help manage future costs in these areas.
Corporate Resource Accounts – Borrowing, Investments & Capital Financing
26. The corporate accounts for borrowing costs, investment income, capital financing and corporate level grant funding have contributed a short term net gain of £5.1m to assist the 2019/20 outturn position. The includes:
Inter-dependant Resource Accounts £’ million Borrowing Costs -2.377 Interest Earned on Investments & Debentures 2.725 Airport Dividend -3.125 Capital Financing -1.176 Net Treasury Management Gain -3.953 short term
Corporate Grants, (primarily business rates compensation) -1.183 one-off Total Net Gain -5.136
27. The costs and the funding resources for the major projects in the capital programme continued to be intensively managed throughout 2019/20, to ensure that the Council achieves the maximum benefit from investing in these projects and the treasury management variations shown above are inter-dependant and best viewed in total.
28. The use of internal cash balances and low-cost short term borrowing to fund capital spend has generated a short-term reduction in borrowing costs, but also impacted on the income returns achievable this year and in turn on the airport dividend position. The net gain from this totals £2.8m for the year compared to budget. A further £1.1m underspend is available in capital financing costs from a reduced provision this year for the future repayment of debt (minimum revenue provision) and some modest further capital resourcing gains.
Page 76 of 177 29. It is important to note that the corona virus pandemic has changed the future prospects on the corporate resource accounts, particularly in relation to the returns on investments from LLAL ltd. Additional information on this is provided in the Emergency Budget Report 2020/21, also presented to this meeting of the Executive.
Corporate Level Grants 30. Additional one-off grant income of £1.183m above budget was received for 2019/20, primarily relating to business rate grant funding:
Additional business rates compensation grant of £0.567m for 2019/20, plus a final reconciliation payment of £0.258m for 2018/19. This is received to compensate for lost rates income from the additional rate reliefs introduced by Government.
A refund of £0.164m for Luton from the government’s national business rates safety net levy, which was in a surplus position at March 2020.
Instalment 2 of the EU exit funding provided by Government. This was partly used in 2019/20 to cover early costs and the remaining £0.194m has been transferred to a specific reserve at closure, to be used to meet further preparation costs in 2020/21.
31. The final position for the corporate resource accounts is a further net gain of around £1.0m compared to the monitoring forecast, due to additional managed reductions in borrowing costs and the final capital financing position for the year.
Budgets to be Carried Forward to 2020/21
32. The use of carry forwards is advocated as good financial management in Local Authorities and the Council’s Financial Regulations make provision for carrying forward managed net underspends, subject to approval by the Executive.
33. Appendix G shows the budgets that managers have asked to carry forward to 2020/21, totalling £0.284m. The final underspend of £0.349m on the 2019/20 Public Health Budget has also been allocated to the specific reserve held for this, in line with the grant conditions on public health spend.
34. Executive is asked to consider and approve the requests. Following approval, the carry forwards will be subject to further review in the 2020/21 monitoring when they are requested for release.
Movements in Reserves 2019/20
35. The full movements in reserves for 2019/20 are attached at Appendix H of this report. Total General Fund Reserves have increased by £8.3m (net) in 2019/20, including the movement required to cover the net overspend. This includes:
£3.5m contributions to reserves approved when the original 2019/20 budget was set. This relates to gains in prior year collection fund balances and the repayment of prior invest to save project funding. This increase in reserves will assist the Council with continuing to manage the changes expected at future funding settlements and to continue transforming and investing in future service delivery.
Page 77 of 177 -3.2m use of specific operational reserves during the year, including use of carry forward budgets from prior years, spend on the Luton Investment Framework and on Flying Start children’s centres.
£5.4m one-off contribution to a new Covid-19 Emergency Funding Reserve. This results from the advance receipt on 27th March for instalment 1 of the Government’s emergency funding for Luton. This funding will be used in 2020/21 to help meet the additional costs of managing the pandemic and the income reductions faced by the Council.
£2.6m of additional contributions to other specific operational reserves from underspends or additional income in 2019/20 on: pension costs, EU exit funding, Butterfield site profit-share, insurance, redundancy costs, public health, carry forward budgets and the cover the net overspend
36. School Reserves have reduced by £2.4 million in 2019/20, to meet a net overspend of £1.2m on Individual School budgets, plus a £1.2m overspend on the central LEA functions of the budget. £1.1m of the central overspend relates to increased costs on high needs education in maintained schools and independent settings, plus the costs of alternative educational provision. Further information is included at Appendices C to Cii of this report.
37. The HRA revenue reserve has increased by £1.6m in 2019/20, an increase of £0.9m compared to the original budget set for the year. Further details of the variations to budget are included at Appendix F of this report.
Prospects from the 2019/20 Revenue Outturn Position
38. Although the final net overspend on the total budget is relatively small, larger underlying service pressures will continue to impact on the Council’s financial position in 2020/21, including the delivery of the remaining 40% of the 2019/20 budgeted savings in year 2 of the original phasing.
39. The final cost of homelessness in 2019/20 is concerning and further urgent work is underway during Quarter 1 of 2020/21 toward improving from this. This is focussing on:
how prevention work can be further enhanced to reduce homelessness the commissioning, provision and cost of temporary accommodation used reassessing the application of existing policies, including the current charging policy and the provision of repair and maintenance services developing an integrated team structure, improving processes and procedures to enhance work flow and case management and implementing a different software system to improve performance management and reporting
40. The cost of children’s care also remains high and although the average cost of placements in 2019/20 remained at the same level as in 2018/19, the total number of children supported increased by around 2% over the year, giving an increased final cost. The service is continuing to review the measures needed to further develop the delivery of prevention, safeguarding and care services, whilst also assisting with improving it’s longer term sustainability within the Council’s overall future budget. Measures in development include:
Improving the recruitment and retention of permanent in-house social care staff and reducing the use of temporary agency staff
Page 78 of 177 Establishing a social work academy in Luton, to advance the recruitment of new staff and to maximise staff development Increasing in-house fostering capacity and reducing the use of placements with independent fostering agencies. Reviewing the commissioning and delivery of residential care placements
41. Additional funding is being provided to assist with this.
42. Wider work from the 2019/20 outturn position will include identifying opportunities to re-align current budget resources from areas of underspend, to areas that need additional budget resources to manage current levels of demand.
43. It must be noted the core overspend pressures for homelessness and children’s care are not unique to Luton, but are a concern nationally as well. The cost reductions needed to improve sustainability within the overall budget will take time to fully achieve. Luton’s ongoing budget prospects therefore remain difficult and improving this a long term challenge.
44. The impact from managing the corona virus pandemic will also have additional major implications for the Council’s finances and a revised Emergency Budget for 2020/21 is also on the agenda at this meeting of the Executive.
Revenue Impacts of Outstanding Debt 2019/20
45. A prudent adjustment has been made on the provision for doubtful debts this year, increasing this by £1.7m for general fund services, primarily on income relating to homelessness, adult social care and housing benefit overpayments. However all outstanding sums will continue to be pursued and collected where possible, with any improvement from the current doubtful debt position reflected in the Council’s subsequent accounts.
46. The level of uncollectable general debt written off in 2019/20 (excluding council tax and business rates and housing) totals around £0.410m representing 0.31% of the annual debt raised on general services this year.
Capital Outturn 2019/20
47. The original 2019/20 capital programme approved in February 2019 totalled £218.066 million for the General Fund with a further £34.407 million for the HRA. Capital projects have been monitored monthly during 2019/20, with progress reported to the Executive on a quarterly cumulative basis.
48. Final capital expenditure for the year is £134.777 million for the General Fund and £24.466 million for the HRA. A breakdown of the expenditure compared to the original programme for the year is shown in the table below:
Page 79 of 177 Capital Programme 2019/20 Opening Final Total Total Spend Analysis Programme Spend Variation Variation Appendix A £million £million £million % Place & Infrastructure 37.796 24.034 -13.762 -36.41% People Department 9.989 7.159 -2.830 -28.33% Chief Executive's Department 2.364 1.273 -1.091 -46.15% Customer & Commercial 4.417 3.011 -1.406 -31.83% Total General Fund Excluding Corporate Projects 54.566 35.477 -19.089 -34.98% Corporate Projects 163.500 99.300 -64.200 -39.27% Total General Fund Programme 218.066 134.777 -83.289 -38.19% Housing Revenue Account 34.407 24.466 -9.941 -28.89% Total LBC Capital Programme 252.473 159.243 -93.230 -36.93%
49. The financing of the original 2019/20 capital programme compared to the financing of the final capital programme is shown in the table below.
50. Prudential borrowing is significantly lower than originally budgeted for, due to the re- profiling of programmed spend on the LLAL Debentures and the Wholly Owned Housing Company.
Capital Programme 2019/20 Opening Final Total Total Financing Analysis Programme Spend Variation Variation £million £million £million % Grants & Contributions 17.141 13.381 -3.760 -21.94% Revenue Contributions 0.446 0.120 -0.326 -73.09% LLAL Dividend - Capital Element 5.153 5.153 0.000 0.00% Capital Receipts 6.112 1.076 -5.036 -82.40% General Fund Prudential Borrowing 25.714 15.747 -9.967 -38.76% General Fund Prudential Borrowing for Corporate Projects 163.500 99.300 -64.200 -39.26% Total General Fund Financing 218.066 134.777 -83.289 -38.19% Major Repairs Reserve 15.491 14.995 -0.496 -3.20% Grants & Contributions 0.000 0.778 0.778 n/a Revenue Contributions 4.559 4.305 -0.254 -5.57% Capital Receipts 12.401 2.432 -9.969 -80.39% Prudential Borrowing 1.956 1.956 0.000 0.00% Total HRA Capital Financing 34.407 24.466 -9.941 28.89% Total LBC Capital Financing 252.473 159.243 -93.230 -36.93%
51. The monitoring for the General Fund capital programme in 2019/20 predicted a net reduction in spend of £83.289 million for the year compared to the opening programme, £64.200 million of which related to Corporate Projects. The final costs compared to the Quarter 3 monitoring forecast are shown below by department, together with the final position for the HRA.
Page 80 of 177 Comparison to Quarter 3 Forecast
Capital Programme 2019/20 Final Final Total Total Spend Analysis Forecast Spend Variation Variation Appendix A £million £million £million % Place & Infrastructure 30.983 24.034 -6.949 -22.43% People Department 5.861 7.159 1.298 22.14% Customer & Commercial 6.537 4.284 -2.253 -34.47% Total General Fund Programme 43.381 35.477 -7.904 -18.22% Corporate Projects 131.400 99.300 -32.100 -24.43% Total General Fund Programme 174.781 134.777 -40.004 -22.89% Housing Revenue Account 23.520 24.466 0.946 4.02% Total LBC Capital Programme 198.301 159.243 -39.058 -19.70%
52. The final forecast estimated General Fund expenditure of £174.8 million and HRA expenditure of £23.5 million for the year. For the final spend there has been a further £39.1 million re-phasing across the General Fund and HRA programmes. The largest re-profiled schemes include:
£2.5 million for Street Lighting LED Lantern Conversion (PI79) – the underspend has been re-phased to 2020/21. The project was delayed as the expected energy savings were not immediately visible, but following discussions with the energy provider the issue was resolved and the project was restarted although some delay was experienced. £5.687 million for Multi Storey Carpark for Luton Town Centre (PI46) – Initial testing on site has been undertaken but the commencement of the construction has been delayed and is now expected to start in 2020/21. £3.739 million for Schools Basic Need/Condition Funding (PI & P6) – The expenditure has been re-phased over two years. £20 million for LLAL Debentures (CORP1,3,5) – re-phased to 2020/21 in line with the latest business plan. £10.9 million for Foxhall Homes Loans (CORP6) – re-phased to 2020/21 in line with the latest project plan.
53. The accuracy of Capital Programme forecasting has improved in 2019/20, but still needs further focus to reduce the level of variations being reported. This of vital importance to overall financial management as there are considerable treasury management implications from not accurately forecasting for capital expenditure and financing. This is an area which will be developed further during 2020/21
54. Spend on 3 projects has increased compared to budget and this has been funded by additional external resources received in 2019/20, reducing future years budgets or releasing budgets from other schemes. The final financing analysis compared to forecast is shown below:
Page 81 of 177 Capital Programme 2019/20 Outturn Final Total Total Financing Analysis Budget Spend Variation Variation £million £million £million % Grants & Contributions 13.723 13.381 -0.342 -2.49% Revenue Contributions 0.261 0.120 -0.141 -50.02% LLAL Dividend - Capital Element 5.153 5.153 0.000 0.00% Capital Receipts 5.485 1.076 -4.409 -80.38% Prudential Borrowing 18.757 15.747 -3.010 -16.05% Prudential Borrowing for Corporate Projects 131.400 99.300 -32.100 -24.43% Total General Fund Financing 174.779 134.777 -40.002 -22.89% Grants & Contributions 0.742 0.778 0.036 4.85% Revenue Contributions 4.807 4.305 -0.502 -10.44% Major Repairs Reserve 12.872 14.995 2.123 16.49% Capital Receipts 4.168 2.432 -1.736 -41.65% Prudential Borrowing 0.930 1.956 1.026 110.32% Total HRA Capital Financing 23.519 24.466 0.947 2.75% Total LBC Capital Financing 198.298 159.243 -6.240 -3.15%
55. The major re-profiling explained in paragraph 5 has created a reduction in General Fund prudential borrowing of £3.010 million. The re-profiling of the LLAL and Foxhall Homes Debenture loans has created a further reduction in £32.100 million, both are illustrated in the table above.
56. The HRA capital spend was £0.947 million less than forecast. The main variance in funding is the reduction in the use of Capital Receipts of £1.736 million which is offset by the use of Major Repairs Reserve funding of £2.123 million.
57. The potential re-phasing of project spend in to 2020/21 identified in this report may be further affected by the Council’s revised plans in the 2020/21 Emergency Budget, required as a result of the Corona virus.
Key Risks 58. The main financial risks arising from the 2019/20 outturn position are the continuing high levels of cost in demand-led volatile service areas, most notably for support to children & families and the cost of temporary accommodation, alongside pressures across other several service areas.
59. Difficult decisions will continue to face the Council to ensure that budgets are kept within the level of future resources available to the Council, including the further expected reductions in grant support from central government and the impacts and legacy from the Corona virus.
60. Effective financial planning remains key to ensuring that the Council continues to set a balanced budget each year that supports the delivery of essential services to the community
Page 82 of 177 Consultations 61. None
Alternative options considered and rejected (please specify) 62. The Executive can accept, reject or the amend report
Appendices Attached 63. Revenue Outturn Appendices:
Appendix A/A(i) Chief Executive’s Department
Appendix B/B(i) Customer & Commercial Department
Appendix C, C(i) to C(iii) Children, Families & Education Department
Appendix D/D(i) Place & Infrastructure Department
Appendix E/E(i) Public Health & Wellbeing Department
Appendix F/F(i) Housing Revenue Account
Appendix G Budgets to be carried forward to 2020/21
Appendix H Movements in Reserves 2019/20
Capital Outturn Appendices:
Appendix I Capital Monitoring & Outturn
Background Papers None
Page 83 of 177 IMPLICATIONS
For Executive Reports: All grey boxes must be completed All statements must be cleared by an appropriate officer
For Reports: Only the dark grey boxes must be completed Clearance is not required
Legal Clearance Agreed By Dated The service director finance & audit’s Michelle Mwangi 15/06/2020 responsibilities with regard to budget monitoring are Solicitor set out in the council's constitution. The report provides members with financial information on the pressures likely to cause significant variances from the budget as well as ensuring service managers have the latest financial information to maximise their use of resources within authorised limits.
Finance Clearance Agreed By Dated Although a final outturn position has been achieved Dev Gopal, Service 15/06/20 within the overall General Fund budget set for the Director Finance & Audit year, the scale of the underlying cost pressures across several services remains a serious concern. The continuing impact from this in to 2020/21, and managing the additional strain on the Council’s budget arising from the corona virus pandemic will be extremely challenging. The Schools outturn position also has significant cost pressures, requiring a use of reserves for 2019/20. Schools are working on 3 year financial plans to review their budget within the revised funding available at the 2020/21 finance settlement. A thorough, in-depth analysis is required on the overspends reported in some service areas and this work is being undertaken, to strengthen the existing recovery plans.
Integrated Impact Assessment (IIA) – Key Points
Equalities / Cohesion / Inclusion (Social Justice) Clearance Agreed By Dated There are no direct equalities implications in this Maureen Drummond, 15/06/20 report. Interim Equalities Manager
Environment Clearance Agreed By Dated
Page 84 of 177 There are no direct environmental implications of Keith Dove, Strategic 12/06/20 this report. However, indirectly some of the projects Policy Adviser funded during 2019-20 may have environmental implications. Health Clearance Agreed By Dated There are no direct Health implications in this Sally Cartwright (Service 15/06/2020 report. Director Healthcare and Adults’ Commissioning) Executive Leader YES
Portfolio Holder YES
Community Safety Clearance Agreed By Dated
Staffing Clearance Agreed By Dated
Other Clearance Agreed By Dated
Chief Executive YES/NO
Page 85 of 177 Appendix A SUBJECT: CHIEF EXECUTIVE’S DEPARTMENT REVENUE OUTTURN 2019-20 Report of: Chief Executive Report Author: Darren Lambert, Finance Business Partner
LEAD EXECUTIVE MEMBERS: COUNCILLOR SIMMONS
REPORT
Revenue Budget Overview for the Year
1. Net expenditure for the Chief Executive’s Department in 2019/20 was £4.250 million, an under-spend of £0.294 million for the year, representing a variation of 4.3% from the operating budget before recharging internal support to other departments.
Forecast Movements Reported in the 2019/20 Monitoring
2. The cumulative position forecast for the department in this year’s monitoring was a net underspend of around £0.139 million for the year. The main variations reported in the monitoring include:
Overspends & Income pressures
Minor variations across the department £42,000
Underspends, Savings or Additional Income:
Communications team £69,000. This related to various underspends in supplies and services budgets across the service
Employees £112,000 across the department. The service carried a number of vacancies during the course of the year
Final 2019/20 Position and Changes from the Forecast
3. The department’s final spend compared to the approved budget and to the monitoring forecast is attached at Appendix A(i), summarised by service level for each Service Director. This shows an increase of around £0.155 million in the final underspend for the year compared to the forecast. This is primarily due to:
Communications & Engagement £94,000 above forecast. This was due mainly to the deletion of the internal design and print management service which resulted in an under recovery of income. This is however offset by underspends in print budgets across the Council. Community Development £98,000 below forecast. This was due mainly to . Additional income of £44,000 from the Cultural Services Trust to cover the deficit from 2018/19 . Additional net income from Community Centres of £54,000, mainly from Lewsey Community Centre (£34,000) and Hockwell Community Centre (£19,000) Democracy £89,000 below forecast. This was due mainly to
Page 86 of 177 Appendix A . the Registration of Electors being underspent by £71,000 (postage £42,000, printing £12,000 and employee £10,000) . Local elections underspent by £24,000 Corporate & Democratic Core costs £47,000 below forecast, relating to excess pension costs
£20,883 of the departments 2019/20 budget needs to be carried forward to 2020/21 subject to approval by Executive, to meet the costs of replacing count staging equipment and polling booths for future elections.
Departmental Outlook from the 2019/20 Outturn
4. The internal design and print management service has now ceased and alternative, lower cost arrangements are now in place.
Page 87 of 177 Appendix A(i)
Chief Executive's Revenue Budget Outturn Statement 2019-20
Service Director/Service Area Approved Q3 Variance to % of Budget Forecast Actual Forecast Budget Approved £'000 £'000 £'000 £'000 £'000 Budget Policy, Communities & Engagement Communications and Engagement -10 -70 24 94 34 Community Development -17 -17 -115 -98 -98 Democracy 1,731 1,723 1,634 -89 -96 Head of Service and Investment Framework 540 536 518 -18 -22 Local Resilience 93 93 119 25 25 Museums 351 351 352 0 0 Social Justice 801 747 724 -23 -76 3,488 3,363 3,255 -108 -233 -4.2%
Chief Executive Chief Executive 1 -11 -11 0 -12 Corporate and Democratic Core Costs 1,054 1,053 1,006 -47 -49 1,056 1,042 995 -47 -61 -4.5%
Total Department (net of income) 4,544 4,405 4,250 -155 -294 -4.3% before internal recharges
Page 88 of 177 Appendix B(i)
Customer & Commercial Revenue Budget Outturn Statement 2019-20
Service Director/Service Area Approved Q3 Variance to % of Budget Forecast Actual Forecast Budget Approved £'000 £'000 £'000 £'000 £'000 Budget Transformation & Technology Corporate Improvement -168 75 63 -12 231 Information Technology 2,393 3,284 2,834 -450 441 Transformation & Technology 2 257 214 -43 212 2,228 3,617 3,112 -505 884 6.1%
Human Resources & Monitoring Officer Human Resources 63 55 -36 -91 -100 Legal Services -112 -31 -124 -92 -11 -49 23 -160 -184 -111 -2.1%
Housing (general fund) Allocation Of Costs From HRA 64 64 64 0 0 Assisted Technology Service -250 -65 -49 16 201 Building Technical Services -184 -193 -117 76 67 Corporate Costs 739 739 649 -90 -90 Gypsy Caravan Site - Stopsley -71 -71 -71 0 0 Homelessness 1,418 3,574 4,965 1,390 3,547 Housing Development 492 372 330 -43 -163 Stopsley Mobile Home Park -21 -21 -21 0 0 Strategy & Private Sector Housing 1,277 1,264 978 -286 -299 3,465 5,664 6,728 1,063 3,262 12.1%
Finance & Audit Accountancy Services 20 23 91 68 70 Audit and Investigation -16 -15 -69 -55 -53 Departmental Finance Teams -91 -91 -152 -61 -61 Exchequer Services 37 37 -24 -61 -61 Head of Corporate Finance 30 30 151 121 121 Traded Management Services -63 -63 -130 -67 -67 -82 -79 -133 -55 -51 -1.2%
Director of Customer & Commercial Services Corporate & Democratic Core 2,172 2,143 2,061 -81 -111 Director of CCS -401 2 141 140 542 1,772 2,144 2,203 58 431 22.7%
Revenues, Benefits & Customer Services Customer Solutions 81 -14 -32 -18 -112 Housing Benefits 651 -595 406 1,002 -245 Local Taxation 2,473 2,392 2,427 35 -46 People in Crisis 257 278 253 -25 -4 Revenues -308 340 264 -77 571 3,154 2,402 3,318 917 165 1.2%
Total Department 10,486 13,772 15,067 1,295 4,580 6.9%
before internal recharges
Page 89 of 177 Appendix C SUBJECT: CHILDREN, FAMILIES & EDUCATION DEPARTMENT REVENUE OUTTURN 2019-20
Report of: Director Children, Families & Education Report Author: Atif Iqbal, Finance Business Partner
LEAD EXECUTIVE MEMBERS: Councillor Mahmood Hussain (Children – Health & Wellbeing), Councillor Aslam Khan (Children’s Services – Enhancing Skills & Education)
REPORT
General Fund Revenue Budget Overview for the Year
1. Net expenditure for the Children, Families & Education Department (GF) for 2019/20 is £58.535 million, an over-spend of £4.245 million for the year, a variation of 7.4% from the operating budget before recharging internal support.
Forecast Movements Reported in the 2019/20 Monitoring
2. Education division projected a net underspend which mainly relates to additional income from appeals in respect of school admissions, staff vacancies and underspends on mainstream home to school transport. It is worth noting that underspend in mainstream statutory home to school transport was re-directed to supplement additional staffing costs for the SEND improvement programme. In Operations, Statutory Social Work, Early Help & Prevention division as previously reported for a number of years, the budget of children’s placements and staffing was still under severe pressure during the year due to the high levels of care and support needed by children and families in the town and the agency staff required to cover the increased level of vacancies. Children’s services approved budget for 2019/20 included £8.365m of increased budget reallocation with the assumption that work streams created under Luton families programme would deliver £2.837m of savings/cost reduction during 2019/20. This means a net £5.532m of additional budget was allocated in 2019-20 base line budgets within Children Services including social care grant of £1.346m. Although £217k cost reductions delivered following placement reviews, transfers to lower cost support settings and successful adoptions however a number of invest to save projects under the Luton Families programme have not delivered the expected cost reductions for a range of complex reasons including changes of leadership, impact of Ofsted planning and inspection and capacity linked to this . The whole Children Deficit recovery plan is being reviewed to understand the alternative approaches to address the un-achieved cost reduction work streams. Other cost pressures are within Emergency Duty Team and in Legal costs. Quality, Improvement & Practice Innovation division projected an overspend mainly due to use of agency staff in the Child Protection Team and agency covering senior management position to help support commissioning activity following transfer of some positions from Public Health and Wellbeing.
3. Based on the 2019/20 final outturn placement costs, it is also worth noting that the average cost per placement in 2019/20 remained almost identical to 2018/19.
Page 90 of 177 Appendix C 4. The cumulative position forecast for the department in this year’s monitoring was a net overspend of around £4.128m million for the year. The main variations reported in the monitoring include:
Overspends & Income pressures
£0.03m planned overspend on Additional staff spend regarding the SEND improvement programme (underspends identified and re-aligned to deliver this cost pressure)
£0.193m overspend on Children’s Residential Placements
£2.001m overspend on Independent Fostering Agency placements
£0.389m overspend on Special Guardianship Orders
£0.233m overspend on 16+ Placements (LAC & Non LAC)
£0.436m overspend on 18+ UASC
£0.142m overspend on Legal costs
£0.951m overspend on the staffing costs due to of agency use
£0.267m overspend on the Emergency Duty Team
£0.211m overspend on the Adoption Fees
Underspends, Savings or Additional Income:
£0.167m underspend on Home to School Transport
£0.252m underspend on Section 17 payments
£0.200m underspend on various staffing and supplies & services lines
Final 2019/20 Position and Changes from the Forecast
5. The department’s final spend compared to the approved budget and to the monitoring forecast is attached at Appendix C(i), summarised by service level for each Service Director. This shows a small increase of around £0.117 million in the final overspend for the year compared to the forecast. This is as a result of various minor movements in staffing and placements costs.
There were four departmental 2019/20 budget carry forward to 2020/21 requests made, subject to approval by Executive, to meet the ongoing one-off commitments as following:
£0.041m for commitment related to PLAC grant as a result of late receipt of grant meant delay in recruitment to temporary post. The post will need funding in 2020-21. £0.033m to help meet statutory duties and actions specified at the Ofsted inspection. £0.050m in SENAT team to clear the backlog of Education, Health and Care (EHC) plan reviews caused by staffing shortages.
Page 91 of 177 Appendix C £0.007m for the Luton Children’s Safeguarding Board which is the balance remaining on the Luton hosted pooled budget. This money will be used to continue the work programme of the board in 2020-21.
Departmental Outlook from the 2019/20 Outturn
6. The current pressures on the children and families budget are not short term and will continue to impact beyond the current financial year. However, this pressure is not unique to Luton or any particular type or group of councils. Across the country, local authority children’s services are under significant and increasing pressure. According to LGA published data, at national level the last decade has seen an 84% increase in children being supported on child protection plans, and an additional 15,920 children in care resulting in severe funding shortages and huge demand pressures meant that councils were forced to overspend on their children’s social care budgets by nearly £800 million in 2018/19 despite of Councils budgeting an additional £542 million for Children Social Care. At the same time, government funding has reduced to the point that children’s services will face a funding gap of almost £3.1 billion by 2025 at the national level. A one year spending round for 2020/21 was announced by the Chancellor in September which confirmed that the Troubled Families Grant and Social care Grant would be available in 2020/21 with an additional £1.0 billion for Adults and Children’s Social care. Luton’s allocation of this social care grant in 2020/21 is £3.3m which is being fully allocated to Children’s services to deal with Inflation, Growth, Pay Award and Pension related additional costs expected in 2020/21.
7. The overall budget impacts from the Covid-19 crisis are included in the corporate report summarising the 2019/20 outturn.
SCHOOLS BUDGET REPORT - DEDICATED SCHOOLS GRANT
8. £150.542 million of Dedicated Schools Grant (DSG) was received for 2019/20, reduced by £0.071 million Early Years adjustment relating to 2018/19. It has been necessary to drawdown on the £3.856 million of unspent grant available from previous years to cover the £1.171m over spend during 2019/20 and the £0.071m adjustment, so the final position of the Central DSG reserve is £2.614m. The final outturn position for 2019/20 is a total overspend of £1.242 million in the Central DSG and £1.160m in Individual Schools DSG, total £2.402m compared to the starting DSG budget. This consists of:
Budget Outturn Variation £’000 £’000 £’000 Central School Budgets 24,518 25,717 1,199 Central budgets now deemed ISB 379 422 43 Total Central Budgets 24,897 26,139 1,242 Individual Schools Budget 124,664 125,824 1,160 Total DSG 149,561 151,963 2,402
Page 92 of 177 Appendix C Central Schools Budget
The gross overspend for central schools budget in 2019/20 is £1.199m, representing 4.9% of the available budget. The main variations for the year were:
£162k net underspend in the Early Years Block - relating to reduced numbers of 3 & 4 year olds and also low take-up of the additional 15 hours early years education entitlement for working parents
£1.101m net overspend in the High Needs Block – comprising of increased costs on alternative provision placements, and increased top up funding in special maintained schools and special independent settings.
£191k overspend in the Central Provision – mainly due to a reduction in schools using the catering service.
£40k overspend on Central Budgets now deemed ISB – this is mainly due to an increase in Early Years Pupil Premium.
INDIVIDUAL SCHOOL BALANCES
9. Individual School Balances have decreased between 1 April 2019 and 31 March 2020 by £1.159m with balances now standing at £15.879m, as detailed in Appendix C(ii). There are various factors which have resulted in schools balance decreasing this year including reduced pupil numbers and use of agency staffing to cover short to medium term absence. At the end of 2019, the Chancellor announced the increase in Schools funding for the future years. Schools are now working on three year financial plans to estimate the on-going budget forecast and pressures.
An analysis of Consistent Financial Reporting returns at the 31st March 2020 from all maintained schools is shown below.
£’000 Total School Balances 15,879
Analysed as: Committed Balance 2,038 Community Focused Balances 0 Uncommitted Balance 13,841
Committed Balances
An analysis of the committed expenditure of £2.038m is shown in the table below and in more detail at Appendix C(iii).
£’000 % Capital and Building Works 620 30.4 Pupil Premium Grant 491 24.1 Universal Infant Free School Meals Grant 7 0.3 Prior Year Commitments 238 11.7 Partnership Funding 327 16.0 Specific Grant Balances 357 17.5
School financial advisers will be engaging with schools to ensure that the sums identified as being committed are correctly assigned and are being spent as intended.
Page 93 of 177 Appendix C
Uncommitted Balances
The level of uncommitted balances stands at £13.841m. The Schools Forum has approved the removal of the balances clawback mechanism in the light of government guidance and the ever tighter financial climate for schools, pending the implementation of the national funding formula. This decision will be reviewed next year. Schools in Deficit
10. Lealands High School has come out of its deficit position and is now showing a year end surplus of £67k, a turnaround of £109k
Norton Road Primary School has a deficit of £83k, a small increase on the deficit of £72k shown at the end of 2018/19. Local Authority officers are working with the school to ensure that the budget is brought back into balance.
The deficit at Bushmead Primary School has increased by £121k to £383k. The school’s financial adviser is working with the school to formulate a new licensed deficit recovery plan.
Stopsley Primary School has fallen into a deficit position, with its balances reducing from a £180k surplus to a £42k deficit. The school’s financial adviser has worked with the school to formulate a recovery plan.
Park Lea Primary school is a new school formed by bringing together Cheynes Infants School and Sundon Park Junior School. This school has a deficit at the end of 2019/20 of £12k and the financial advisor for this school is working with the school to formulate a recovery plan.
Page 94 of 177 Appendix C(i)
Children, Families & Education (Non-Schools) Revenue Budget Outturn Statement 2019/20
Service Director/Service Area Approved Q3 Variance to % of Budget Forecast Actual Forecast Budget Approved £'000 £'000 £'000 £'000 £'000 Budget Allison Parkinson Childrens Joint Commisioning 127 129 129 0 3 Disabled Children and Support 3,010 2,858 2,785 -73 -225 Early Years 1,017 959 934 -25 -84 Family Services 4,037 4,284 4,322 38 284 Management 370 359 388 29 18 PEI Integrated Services 800 760 730 -30 -70 Purchased Care Services 17,178 20,425 20,968 543 3,790 Services for Looked After Children 7,233 8,189 8,304 115 1,071 Unapportioned Overheads 798 798 687 -111 -111 Youth Service 57 58 58 0 1 34,627 38,819 39,305 486 4,678 13.4%
Amanda Lewis Capital Asset and PFI 7,617 7,588 7,596 8 -22 Corporate and Democratic Core 492 481 426 -55 -66 Management 585 703 726 23 141 School Central Costs 1,025 1,025 1,027 2 2 9,719 9,796 9,775 -22 56 0.5%
Damien Elcock Child Protection and LSCB 1,391 1,619 1,643 23 251 Early Years 2,661 2,543 2,430 -113 -232 Management 771 944 866 -78 95 Youth Offending 1,632 1,623 1,615 -8 -16 Youth Service 444 341 325 -17 -119 6,899 7,070 6,878 -192 -21 -0.3%
John Wrigglesworth Admissions 157 110 112 2 -45 Assessment & Care Management 799 830 805 -24 6 Behaviour and Tuition 0 36 36 0 36 Business Unit -23 -33 -20 12 3 Children in Care 108 108 67 -41 -41 Disabled Children and Support 131 112 114 1 -17 Early Years 161 126 118 -8 -43 Eductaion Psychology Service 538 539 546 7 8 Education Welfare 10 -33 -65 -32 -75 Home Educate 71 63 58 -5 -14 Inspection and Advice 523 460 426 -34 -97 Learning Support 88 94 61 -33 -27 Music Services 63 62 62 0 -0 School Improvement 79 81 76 -6 -3 School Meals (gf) -11 -6 -6 1 5 School Transport 349 182 188 7 -161 3,044 2,732 2,577 -155 -466 -8.4% Total Non-Schools 54,289 58,417 58,535 117 4,245 7.4% before internal recharges
Page 95 of 177 Appendix C(ii) SCHOOL BALANCES AS AT 31 MARCH 2020
Increase in Balances 2019-20 2019-20 Opening Closing Change in School Balance Balance Balance % change £ £ £ % Lealands High School (41,715) 67,258 108,973 -261% Ashcroft High School 1,913,039 2,121,910 208,870 11% Lea Manor High School 1,160,604 1,415,938 255,334 22% Stopsley High School 1,146,019 1,309,175 163,156 14% Luton Futures 0 0 0 0% Chapel Street Nursery 184,296 231,632 47,337 26% Grasmere Nursery 321,976 380,659 58,683 18% Hart Hill Nursery 194,987 280,029 85,042 44% Pastures Way Nursery 166,367 164,002 (2,365) -1% Rothesay Nursery 259,755 292,400 32,644 13% Gill Blowers Nursery School 261,025 330,437 69,412 27% Cheynes Infant School (30,281) 0 30,281 -100% Foxdell Infant School 48,736 122,748 74,012 152% Hillborough Infant School 304,241 248,092 (56,149) -18% Someries Infant School 265,498 189,740 (75,758) -29% Warden Hill Infant School 58,200 101,147 42,947 74% William Austin Infant School 386,721 280,760 (105,960) -27% Crawley Green Infant School 43,436 47,849 4,413 10% Farley Junior School 227,628 166,924 (60,704) -27% Ferrars Junior School 235,235 332,071 96,836 41% Foxdell Junior School 309,324 329,292 19,968 6% Hillborough Junior School 619,680 436,223 (183,457) -30% Someries Junior School 168,292 131,791 (36,501) -22% Sundon Park Junior School 255,268 0 (255,268) -100% Warden Hill Junior School 126,426 87,009 (39,417) -31% Wenlock VA Junior School 234,806 5,608 (229,198) -98% William Austin Junior School 248,106 163,228 (84,877) -34% The Meads Primary School 389,491 486,025 96,534 25% Norton Road Primary School (72,119) (83,025) (10,906) 15% Surrey Street Primary School 164,710 19,639 (145,071) -88% Tennyson Road Primary School 291,617 0 (291,617) -100% Wigmore Primary School 161,214 164,791 3,577 2% Bramingham Primary School 164,848 97,869 (66,979) -41% Beech Hill Community School 63,633 21,473 (42,160) -66% Leagrave Primary School 363,796 257,868 (105,928) -29% Waulud Primary School 218,524 150,743 (67,781) -31% Bushmead Primary School (261,732) (383,196) (121,463) 46% Stopsley Primary School 179,972 (42,206) (222,178) -123% Ramridge Primary School 671,991 651,969 (20,023) -3% Icknield Primary School 263,778 219,503 (44,275) -17% Sacred Heart Primary School 86,562 139,869 53,307 62% Beechwood Primary School 423,972 452,825 28,853 7% Maidenhall Primary School 353,074 335,941 (17,133) -5% St Matthews Primary School 214,653 37,212 (177,442) -83% Pirton Hill Primary School 322,247 407,623 85,376 26% Southfield Primary School 418,719 0 (418,719) -100% Whitefield Primary School 333,304 0 (333,304) -100% Denbigh Primary School 443,959 456,404 12,446 3% Downside Primary School 1,479,594 1,579,006 99,412 7% Putteridge Primary School 496,253 471,868 (24,385) -5% St Joseph's Primary School 93,461 162,956 69,495 74% Park Lea Primary School (11,773) (11,773) Avenue Centre for Education (21,415) 164,499 185,914 -868% Woodlands Secondary School 23,593 325,527 301,934 1280% Richmond Hill School 506,174 403,938 (102,235) -20% Lady Zia Wernher School 196,779 155,595 (41,184) -21% Page 96 of 177 17,038,325 15,878,867 (1,159,458) -7% Appendix C(iii) School Committed Balances at 31 March 2020
Capital/ Unspent Specific Building & Pupil UIFSM Prior year Partnership Grant ICT Works Premium Grant commitments Funding Balances School £ £ £ £ £ £ Total £ Lealands High £ - £ - £ - £ - £ - £ - £ - Ashcroft High £ 200,000 £ 151,325 £ - £ - £ - £ 14,222 £ 365,547 Lea Manor High £ 404,000 £ - £ - £ 11,120 £ - £ 25,129 £ 440,249 Stopsley High £ - £ - £ - £ 28,861 £ - £ 92,577 £ 121,438 Total Secondary £ 604,000 £ 151,325 £ - £ 39,980 £ - £ 131,928 £ 927,233 Chapel Street Nursery £ - £ 6,233 £ - £ 3,571 £ 1,328 £ 16,352 £ 27,484 Grasmere Nursery £ - £ - £ - £ - £ - £ - £ - Hart Hill Nursery £ - £ - £ - £ 23,656 £ - £ - £ 23,656 Pastures Way Nursery £ - £ - £ - £ - £ - £ - £ - Rothesay Nursery £ - £ 7,368 £ - £ 5,098 £ - £ 152,074 £ 164,540 Gill Blowers Nursery £ - £ 12,855 £ - £ 4,605 £ 164,247 £ - £ 181,707 Total Nursery £ - £ 26,457 £ - £ 36,929 £ 165,575 £ 168,426 £ 397,387 Foxdell Infant £ - £ - £ - £ 8,667 £ - £ - £ 8,667 Hillborough Infant £ - £ - £ - £ 6,663 £ - £ 10,000 £ 16,663 Someries Infant £ 16,000 £ - £ - £ - £ - £ - £ 16,000 Warden Hill Infant £ - £ - £ - £ - £ - £ - £ - William Austin Infant £ - £ - £ - £ - £ - £ 2,656 £ 2,656 Crawley Green Infant £ - £ - £ - £ - £ - £ - £ - Farley Junior £ - £ - £ - £ - £ - £ - £ - Ferrars Junior £ - £ - £ - £ 11,093 £ - £ - £ 11,093 Foxdell Junior £ - £ 155,385 £ - £ 18,893 £ - £ - £ 174,278 Hillborough Junior £ - £ - £ - £ - £ 60,623 £ 26,135 £ 86,758 Someries Junior £ - £ - £ - £ - £ - £ - £ - Warden Hill Junior £ - £ - £ - £ - £ - £ - £ - Wenlock Junior £ - £ - £ - £ - £ 42,000 £ - £ 42,000 William Austin Junior £ - £ - £ - £ - £ - £ - £ - The Meads Primary £ - £ 89,066 £ - £ - £ 40,799 £ 17,409 £ 147,274 Norton Road Primary £ - £ - £ - £ - £ - £ - £ - Surrey Street Primary £ - £ - £ - £ - £ - £ - £ - Wigmore Primary £ - £ - £ - £ - £ - £ - £ - Bramingham Primary £ - £ - £ - £ - £ - £ - £ - Beech Hill Primary £ - £ - £ - £ - £ - £ - £ - Leagrave Primary £ - £ 68,276 £ 6,918 £ 33,750 £ - £ - £ 108,943 Waulud Primary £ - £ - £ - £ - £ - £ - £ - Bushmead Primary £ - £ - £ - £ - £ - £ - £ - Stopsley Primary £ - £ - £ - £ - £ - £ - £ - Ramridge Primary £ - £ - £ - £ - £ - £ - £ - Icknield Primary £ - £ - £ - £ - £ - £ - £ - Sacred Heart Primary £ - £ - £ - £ - £ - £ - £ - Beechwood Primary £ - £ - £ - £ - £ - £ - £ - Maidenhall Primary £ - £ - £ - £ - £ - £ - £ - St Matthew's Primary £ - £ - £ - £ 30,467 £ 2,605 £ - £ 33,072 Pirton Hill Primary £ - £ - £ - £ - £ 15,359 £ - £ 15,359 Denbigh Primary £ - £ - £ - £ - £ - £ - £ - Downside Primary £ - £ - £ - £ 5,051 £ - £ - £ 5,051 Putteridge Primary £ - £ - £ - £ - £ - £ - £ - St Joseph's Primary £ - £ - £ - £ - £ - £ - £ - Parklea Primary £ - £ - £ - £ - £ - £ - Total Primary £ 16,000 £ 312,727 £ 6,918 £ 114,583 £ 161,385 £ 56,200 £ 667,813 Avenue Centre for Education £ - £ - £ - £ - £ - £ - £ - Woodlands Secondary £ - £ - £ - £ - £ - £ - £ - Richmond Hill £ - £ - £ - £ 2,407 £ - £ - £ 2,407 Lady Zia Wernher £ - £ - £ - £ 43,643 £ - £ - £ 43,643 Total Special/Alternative Provision £ - £ - £ - £ 46,050 £ - £ - £ 46,050 Grand Total £ 620,000 £ 490,509 £ 6,918 £ 237,543 £ 326,961 £ 356,554 £ 2,038,483
Page 97 of 177 Appendix D SUBJECT: PLACE AND INFRASTRUCTURE DEPARTMENT REVENUE OUTTURN 2019-20
Report of: Director of Place & Infrastructure Report Author: Darren Lambert, Finance Business Partner
LEAD EXECUTIVE MEMBERS: COUNCILLORS BURNETT, CASTLEMAN, KHAN, SHAW, TIMONEY
REPORT
Revenue Budget Overview for the Year
1. Net expenditure on the Place & Infrastructure Department for 2019/20 is £37.874 million, an over-spend of £2.040 million for the year, a variation of 3.2% from the operating budget before recharging internal support.
Forecast Movements Reported in the 2019/20 Monitoring
2. The cumulative position forecast for the department in this year’s monitoring was a net overspend of around £2.999 million for the year. The main variations reported in the monitoring include:
Overspends & Income pressures
Public Realm o Cleansing – food waste collection trial costs £143,000. Following a 12 month trial this service has now ceased o Cleansing – trade waste non achievement of additional £75,000 income tracker saving. The service instigated a full audit review and following the recommendation, significant changes have been made through developing a business plan to generate additional income. However, due to Covid-19 and the lockdown of businesses this has had an impact on the changes and is now further delaying the achievement of the tracker saving. o Fleet External Customers - £179,000 shortfall in trading income due to loss of contracts, plus an associated £53,000 under recovery in salary recharges to trading accounts o Parks, cems and Crem - £280,000 shortfall in income partly due to new crematoria opening in Hitchin and Aylesbury Inclusive Growth o Adult Learning £214,000 increase in accommodation costs following relocation to Arndale House Property & Construction Services o Commercial Investment & Development Strategy - £113,000 bad debt provision relating to a tenant of an investment property that went into administration o Corporate Landlord & FM Services - £1.625m ongoing maintenance pressures on town centre and operational sites combined with a general increase in repair costs o Design & Maintenance - £455,000 adjustment for design fees incorrectly charged to schools in 2018/19
Page 98 of 177 Appendix D o Corporate Health & Safety - £108,000, due mainly to a reduction in trading with schools of £64,000 Public Protection o Coroners Service increased costs £202,000 o Car parking Service £189,000 loss of income due to the disposal of Bute Street Shoppers Car Park to Barnfield College in 2017/18 o Licensing £98,000 shortfall in income o Environmental Health – £50,000 shortfall in income due to Public Health ceasing to support investigative work on food and tobacco sales o Private Sector Housing £109,000 due to the selective licensing scheme being delayed Planning & Transport o Development Control. Additional spend of £300,000 on legal costs relating to a Judicial Review, appeals and costs awarded, external consultants who provided conservation advice and airport specialist noise assessments, and agency staff to support airport and other major planning applications. This was partly offset by employee underspends and additional income
Underspends, Savings or Additional Income:
Public Realm o Waste Disposal & Management – estimated £250,000 saving from the Waste Strategy and alternate weekly collections, and £145,000 underspend in the budget for waste consultants Inclusive Growth o Economic Development M & A – release of £256,000 of regeneration grants held as potential clawback, that were no longer required o Modern Apprentice Scheme £207,000 as more support is provided through the Apprentice Levy o Procurement employee underspends of £131,000 due to vacancies Property & Construction Services o Commercial Investment & Development Strategy - £315,000 additional rental income mainly from investment properties Public Protection o Neighbourhood Delivery employee underspends across the service of £470,000 Planning & Transport o Development Control additional income of £85,000
Final 2019/20 Position and Changes from the Forecast
3. The department’s final spend compared to the approved budget and to the monitoring forecast is attached at Appendix A(i), summarised by service level for each Service Director. This shows a reduction of around £0.959 million in the final underspend for the year compared to the forecast. This is primarily due to:
Public Realm o Cleansing - an underspend of £301,000, relating mainly to a £211,000 underspend in transport costs, including maintenance costs £91,000 and internal contract hire costs £79,000 o Fleet Management – an overspend of £185,000, due mainly to a shortfall in income of £122,000 relating to the underspends in cleansing above
Page 99 of 177 Appendix D o PTU underspend of £131,000, relating to an underspend of £190,000 on transport costs, mainly maintenance and internal contract hire, an underspend on employees of £82,000, partly offset by a shortfall in income of £136,000 o Waste Disposal and Management – an underspend £132,000 in the disposal contract due to reduced waste levels Director of Place & Infrastructure o Corporate & Democratic Core – an underspend of £191,000 relating mainly to excess pension costs Property & Construction Services o Building control overspend of £134,000 due mainly to a shortfall in income against projection of £88,000, and £28,000 unbudgeted legal costs associated with an ongoing legal prosecution case. o Commercial Investment & Development Strategy – a further underspend against projection of £819,000. This relates mainly to additional income of £876,000, including £602,000 relating to a rent review dating back to 2014/15 on a car park close to the airport o Corporate Landlord & FM Services – an underspend of £104,000 against projection, related mainly to Arndale House (underspend of £169,000) o Head of Fixed Assets. An underspend of £300,000 related mainly to additional net external income of £243,000 from Foxhall Homes and London Luton Airport Ltd Public Protection o Car Parking Service – an overspend of £424,000 against projection which was related to a shortfall in income, mainly Penalty Charge Notice income which may in part be due to Covid-19 Planning & Transport o Strategic Planning – Strategic Planning underspend of £163,000 relating mainly to a contribution of £124,000 from the Planning Reserve to cover legal costs associated with the examination of the Central Bedfordshire Local Plan. These costs had been reported at Quarter 3 as an overspend. o Transportation Strategy overspend of £236,000 related primarily to costs incurred and a shortfall in income from recharges to the Century Park Access Road capital project (£183,000)
£131,670 of the departments 2019/20 budget needs to be carried forward to 2020/21 subject to approval by Executive, to support investment in new apprenticeships across the Council.
Departmental Outlook from the 2019/20 Outturn
4. A number of the budget pressures experienced in 2019/20 are also likely to be pressures going forward as well, particularly with the impact of Covid-19. Public Realm o Fleet External Customers will be a challenge unless new contracts can be secured. However, the service manager is planning to reduce staffing resources in response by not recruiting to vacant posts. o Crematorium income has been a challenge for some time with the opening of newer facilities nearby, and it was hoped the investment in the Vale Chapel might ensure that the service could continue to compete. Income in the early stages of 2020/21 is up, which may be influenced by Covid-19, and the service are also reviewing their business plan. Property & Construction Services
Page 100 of 177 Appendix D o Commercial Investment & Development Strategy. Income from investment properties always requires continuous monitoring. The Government have also recently announced a national review of investment by Local Authorities in investment properties. Covid-19 may also have a longer term impact on income opportunities. All investment decisions are made in line with criteria agreed by the Executive. o Corporate Landlord & FM Services. The last 2 years have seen significant overspends in this service area, primarily due to increased repairs and maintenance. This is not sustainable and the Service Director is reviewing options for reducing the size of the estate to reduce the ongoing liability. Public Protection o Car Parking Service. Income has been affected by Covid-19 and future changes in personal travel plans and also potential changes in how employers operate in response to Covid-19 may have longer term impacts on parking income. If income reduces significantly, the costs of the service will need to be reviewed. o Licensing. Similarly, licensing income has been affected by Covid-19 and there may be longer term implications. As with parking, the costs of the service will need to be reviewed if income reduces.
Page 101 of 177 Appendix D(i)
Place & Infrastructure Revenue Budget Outturn Statement 2019-20 Service Director/Service Area Approved Q3 Variance to % of Budget Forecast Actual Forecast Budget Budget £'000 £'000 £'000 £'000 £'000 Public Realm Cleansing 3,932 4,114 3,813 -301 -120 Cleansing Customer Servs Unit -211 -211 -215 -4 -4 Fleet External Customers -284 -120 -118 2 166 Fleet Management 13 57 242 185 229 Grounds Maintenance 105 129 100 -29 -5 Highways Services 13,920 13,969 13,871 -98 -49 Parks, Cems & Crem 1,283 1,608 1,551 -57 268 PTU -55 -20 -150 -131 -96 Recycling 1,698 1,723 1,779 56 81 Waste Disposal & Management 9,923 9,713 9,581 -132 -342 30,324 30,962 30,453 -509 128 0.3% Inclusive Growth Corporate & Democratic Core 152 152 131 -21 -21 Economic Development M & A 38 -218 -182 36 -220 Economic Growth and Investment 248 248 256 8 8 Service Director Inclusive Growth 0 0 3 3 3 Modern Apprentice Scheme 179 -28 47 75 -132 Other Adult Education 37 254 254 0 217 Skills and Funding 244 244 175 -69 -69 Procurement 18 -102 -46 56 -64 915 550 638 88 -277 -12.7% Director of Place & Infrastructure Corporate & Democratic Core 2,423 2,399 2,208 -191 -216 Management & Support Services -29 -69 21 90 50 2,394 2,330 2,228 -102 -166 -5.6% Property & Construction Services Building Control 57 47 181 134 124 Commercial Investment & Development Strategy -5,473 -5,657 -6,476 -819 -1,003 Corporate Landlord & FM Servs 1,210 2,981 2,877 -104 1,667 Design & Maintenance -463 -4 -101 -97 362 Corporate Health & Safety 10 119 127 8 116 Head of Fixed Assets -113 -135 -434 -300 -321 -4,772 -2,649 -3,826 -1,177 946 19.9% Public Protection Admin. of Justice Services 200 402 389 -13 189 Car Parking Service -1,812 -1,622 -1,198 424 614 Community Safety and Civil Protection 243 253 217 -35 -25 CCTV 306 395 468 73 162 Licensing -295 -190 -187 3 108 Environmental Health 481 588 589 1 108 Management & Administration 16 16 28 12 12 Neighbourhood Delivery 1,530 1,045 1,140 94 -390 Pest Control & Dog Wardens 167 170 139 -31 -28 Private Sector Housing 469 578 566 -12 97 Registration Services 206 126 110 -17 -97 Trading Standards 256 330 395 65 139 1,768 2,091 2,656 565 888 34.6% Planning & Transport Development Control 148 358 396 38 248 Environment & Neighbourhoods 161 161 157 -4 -4 Environmental Initiatives 150 150 134 -16 -16 Highways & Engineering Services 226 226 316 90 90 Management & Support Services 9 9 11 2 2 Public Transport -40 -40 -47 -7 -7 Strategic Planning 574 678 515 -163 -59 Transportation Strategy 3,976 4,007 4,243 236 267 5,204 5,548 5,725 176 521 8.3%
Total Department 35,834 38,833 37,874 -959 2,040 3.2%
before internal recharges
Page 102 of 177 Appendix E SUBJECT: PUBLIC HEALTH & WELLBEING DEPARTMENT REVENUE OUTTURN 2019-20
Report of: Director of Public Health and Wellbeing Report Author: Atif Iqbal, Finance Business Partner
LEAD EXECUTIVE MEMBERS: Councillor Khtija Malik (Public Health & Commissioning), Councillor Javed Hussain (Adult Services)
REPORT
Revenue Budget Overview for the Year
1. Net expenditure for the Department for 2019/20 was: Public Health Services £14.630 million, fully funded by the Public Health Grant; Wellbeing Services, including Adult Social Care £60.711 million (incl. advanced receipt of Covid-19 funding)
The Public Health budget has an underspend of £0.546 million (3.6%) in 2019/20 against the approved budget at the start of the year and in line with the specified grant conditions, this has been allocated to the specific Public Health reserve and will be carried forward to 2020/21 to continue supporting spend on public health activity.
Wellbeing has a total underspend of £5.888 million for the year compared to budget, but £5.423m of this relates to the first instalment of LA Emergency Support Funding received from the Government to meet cost on tackling Covid-19. The variation to budget excluding this grant is a small underspend of £0.465 million (0.7%) in 2019/20. The £5.423 million received for Covid-19 has been transferred to reserves, so this can be drawn-down and used to meet the additional Covid-19 related costs being incurred in 2020/21.
Forecast Movements Reported in the 2019/20 Monitoring
1. The Public Health Grant saw a further planned central government reduction of £0.406m leaving a total available grant of £14.979m in 2019-20. Committed spend in 2019/20 was being partly funded by use of £0.124m of the specific reserve held by the service and a BCF contribution of £0.100m towards Social Prescribing spend. The Wellbeing service was projecting a net underspend which was made up primarily of over spends in Special Education Transport, Adult Social Care contracts, and the department’s contribution towards the nation graduate development programme; offset by various under spends across staffing and other budgets. The Adult Social Care service was also projecting an overall underspend however there continued to be cost pressure across Mental Health purchased care, Learning Disability Purchased care, additional payments to home care providers to help stabilise the market, in house Supported Living and Respite services, Emergency Duty Team and continued use of expensive agency staff to sustain the service. These budget pressures were offset by underspends across in-house support in the community services covering Day Care, Extra Care and Reablement due to staff vacancies and in care management as the Side by Side early help project is embedded as business as usual. and also existing staffing resources benefited from grant funding including iBCF and Winter Pressure funding.
2. The cumulative position forecast for the department in this year’s monitoring was:
Page 103 of 177 Appendix E an underspend of £0.201 million for Public Health services a net underspend of around £0.553 million for wellbeing services primarily on adult social care costs
The main variations reported in the monitoring include:
Overspends & Income pressures
£0.091m overspend on Mental Health & Residential Purchased Care £0.143m overspend on in-house Respite Service and Supported Living £0.105m overspend on Emergency Duty Team £0.105m overspend on Home Care Purchase Care £0.109m overspend due to of increased ASC Bad Debts provision £0.274m overspend on SEN and home to school transport
Underspends, Savings or Additional Income:
£0.181m underspend within Public Health funded posts due to of vacancies £0.261m underspend on Physical Disability and older Persons Purchased Care
£0.230m underspend on Physical Disability and Older Persons Day Care
£0.300m underspend on Extra Care and Reablement
£0.136m underspend as a result of reduction in internal Support Service charges from the Passenger Transport Unit for day services
£0.185m underspend in Adults Commissioning due to of vacancies
£0.136m underspends on Healthy Lives Children Commissioning due to of staff vacancies.
Final 2019/20 Position and Changes from the Forecast
3. The department’s final spend compared to the approved budget and to the monitoring forecast is attached at Appendix E(i), summarised by service level for each Service Director. This shows: a change of £0.345 million further underspend in the final position for public health services compared to the forecast a reduction of around £0.088 million in the underspend in the final position for Wellbeing including Adult Social Care compared to the forecast.
This is primarily due to:
Further underspends in staffing and demand led public health contracts and also £0.224 million contributions to Social Prescription from the specific reserve and BCF Various minor movements within Wellbeing services including Adult Social Care resulted in £0.088 million reduction in underspend.
Page 104 of 177 Appendix E There are no budget carry forward requests made into 2020/21.
Departmental Outlook from the 2019/20 Outturn
4. Although the department’s generala fund services have underspent at the end of the financial year, there continues to be cost pressures around continued growth particularly around specialist mental health and residential placements. Local providers can support the needs of some clients, however additional support is required over and above the standard service which is increasing costs. Early analysis of the early support project Side by Side is showing fewer people need to have long term care support following assessment and those that do are at a lower cost.
5. Public Health & Wellbeing department has successfully identified cost reductions to deliver the savings target needed in 2019/20 for the General Fund and has reduced Public Health spend to match the further grant reduction of £406k in 2019/20. The latest spending round announced by the Chancellor increased the Public Health Grant for 2020/21 by 4.03% however there is uncertainty about any additional costs which may also be transferred to the Council.
6. The Chancellor announced the continuation of the Improved Better Care Fund and Winter Pressure Grant in 2020-21. The Council has also applied a further 2% Council Tax precept for adult care. These will both help fund cost and demand pressures within Adults Social care, however the funding that is available will only cover the impact of inflation, provider cost increases from the rise in the national living wage, pay and pension costs increases and some demographic growth in particular clients transitioning from Children’s Services. The Government has also proposed continuation of the Social Care Grant for Adults & Children’s Services but the majority of this will be used to meet the ongoing pressure in Children’s Social Care.
7. The overspend on SEN external transport budgets continued in 2019/20 due to of high levels of demand for the service. It has proved difficult to identify savings from the initial invest to save project and further modelling is required given the increasing number of children with SEN. However there are now new proposals that are being put forward to achieve reductions in spend. However this is a demand led and very volatile service, and continued growing demand pressure within SEN services may also impact on transport. The impact of the increased living wage, fuel costs and the level of complexity on young people’s transport support is also likely to impact on future negotiations on contract prices.
8. Furthermore as a result of Covid-19 pandemic, there is an immediate and urgent requirement for all the departments in the Council to deliver further efficiencies and savings in 2020/21. The Public Health & Wellbeing department is also looking at all the possible options to reduce GF expenditure further and deliver more savings including re-prioritising the Public Health spend within the grant conditions.
Page 105 of 177 Appendix E(i)
Wellbeing (Public Health Dept) Revenue Budget Outturn Statement 2019-20
Service Director/Service Area Approved Q3 Variance to % of Budget Forecast Actual Forecast Budget Budget £'000 £'000 £'000 £'000 £'000 Gerry Taylor Head of Community Living 16 16 16 0 0 Management 110 95 87 -8 -23 Performance & Management Suppt 57 75 65 -10 9 Unapportionable Central OHeads 344 344 329 -15 -15 526 530 497 -33 -29 -5.5% Lucy Hubber Arts & Entertainments 1 1 1 0 0 Childrens Joint Commissioning 190 171 171 0 -19 Head of Community Living 2 -2 -2 0 -4 Leisure Trust 2,399 2,368 2,368 -1 -31 Management 117 28 38 10 -79 Museums 3,054 3,042 3,028 -14 -26 Recreation Centres 13 13 8 -5 -5 5,776 5,621 5,611 -10 -165 -2.9% Maud O'Leary Assessment & Care Management 17,563 18,172 18,006 -165 443 Brokerage Enablement 3,944 3,644 3,668 23 -276 Covid 19 Control and Relief Measures 0 0 -5,423 -5,423 -5,423 Improved Better Care Fund -4,428 -4,586 -4,844 -259 -416 Management -901 -718 -639 79 261 Management Support 441 441 441 0 0 MH Pooled Budgets 6,563 6,647 7,070 423 507 Resources Adults Under 65 5,752 5,724 5,750 26 -1 Service Provision 1,874 1,680 1,625 -55 -249 Services for Adults Under 65 19,347 18,662 18,877 215 -470 Unapportionable Central OHeads 861 860 741 -119 -120 51,015 50,526 45,271 -5,255 -5,744 -11.3%
Sally Cartwright Assessment & Care Management 521 336 348 12 -173 Management 1,921 1,910 1,945 36 25 MH Pooled Budgets 1,752 1,764 1,765 1 13 SEN Transport 3,380 3,687 3,624 -63 244 Services for Adults Under 65 1,507 1,528 1,507 -21 1 Student Support Transport 200 144 142 -2 -59 9,281 9,369 9,332 -37 50 0.5%
Net Wellbeing Costs 66,599 66,046 60,711 -5,335 -5,888 -8.8% before internal recharges
Page 106 of 177 Appendix F SUBJECT: HOUSING REVENUE ACCOUNT REVENUE OUTTURN 2019-20
Report of: Director of Customer & commercial Services Report Author: Darren Lambert, Finance Business Partner
LEAD EXECUTIVE MEMBERS: COUNCILLOR SHAW
REPORT
Revenue Budget Overview for the Year
1. The 2019/20 Housing Revenue Account budget was set with an original contribution to balances of £0.645 million, in line with HRA financing regulations that require contributions from revenue balances to support capital improvements and additions to the housing stock.
The final position for the year is an underspend of £0.997 million compared to the original budget, giving a final contribution to balances of £1.624 million for the year.
Forecast Movements Reported in the 2019/20 Monitoring
2. The Quarter 3 monitoring predicted a net operational underspend of £0.602 million for the year, primarily due to staff vacancy savings and additional rental income from shops, with an indicative overall surplus and contribution of £1.246 million available for the HRA capital programme.
3. The main variations reported in the monitoring include:
Overspends & Income pressures
£85k increased expenditure on communal lighting arising from the receipt of invoices, which went back to 2015. The amount of the invoices exceeded the accruals provided as at 31/03/2019
Underspends, Savings or Additional Income:
£168k Additional leaseholder income due to settlement of 2018/19 final account balances
£245k Increased income from shop rents arising from the renegotiation of leases at higher annual rents together with additional income from garages
£45k Increased income from tenants service charges due to the expansion of the concierge service
£229k Savings arising from vacant posts within the service
Page 107 of 177 Appendix F Final 2019/20 Position and Changes from the Forecast
4. The department’s final spend compared to the approved budget and to the monitoring forecast is attached at Appendix A(i), summarised by service level for each Service Director. This shows an increase of around £0.395 million in the final underspend for the year compared to the forecast, providing a year end surplus of £1.642 million. This is primarily due to:
£64k increased spend on communal lighting £126k additional spend on responsive repairs £178k reduction in provision for bad debt £117k increase in investment interest £296k increase in dwelling rent
Departmental Outlook from the 2019/20 Outturn
5. Due to the Covid 19 outbreak the 2020/21 rent collection could be affected
Page 108 of 177 Appendix F(i)
Housing Revenue Account Revenue Budget Outturn Statement 2019-20 Service Director/Service Area Approved Q3 Variance to % of Budget Forecast Actual Forecast Budget Budget £'000 £'000 £'000 £'000 £'000
Housing Revenue Account Aids & Adaptatations 923 923 903 -21 -21 -2.2% Asset Management 12,426 12,426 10,728 -1,698 -1,698 -13.7% Business Development 655 655 525 -130 -130 -19.8% Capital Charges - Housing 15,143 15,143 17,195 2,052 2,052 13.6% Head of Landlord 223 223 275 52 52 23.5% Housing Management 5,121 5,057 5,217 160 96 1.9% HRA Shops 312 312 253 -59 -59 -18.9% Policy and Management - Housing 818 818 663 -155 -155 -18.9% Rent and Other Income - Housing -37,384 -37,842 -38,248 -406 -864 2.3% Sheltered Accomodation 1,118 1,038 870 -169 -249 -22.2%
Net HRA Costs -645 -1,247 -1,619 -372 -974
Page 109 of 177 List of Budgets Requested for Carry Forward to 2020/21 Appendix G Ref Department/Service Service Director Value Requirement for the Budget in 2020/21 General Fund Services Carry Forward Requests Chief Executive's CE01 Local Elections Mark Turner £20,883 Underspend from the 2019/20 Local Election budget, needed to replace count staging equipment and polling booths for future elections. Current equipment is at the end of it's useful life £20,883 Children, Families and Education CFE01 PLAC Grant John Wrigglesworth £41,500 Late receipt of grant meant delay in recruitment to temporary post. The post will need funding in 2020-21 CFE02 Children's Services (Ofstead related) John Wrigglesworth £33,322 To help meet statutory duties and actions specified at the Ofstead inspection: funding a Family Information Service assistant and establishing the SENDIASS website which was due to be in place by the of 2019/20, but delayed by procurement issues. CFE03 Children's Services - SENAT John Wrigglesworth £50,000 To clear the backlog of Education, Health and Care (EHC) plan reviews caused by staffing shortgages. This is a statutory requiremnt for the SEN assessment team and will be subject to re-inspection by Ofstead. External service to be commissioned to carry out the work £124,822 Place & Infrastructure PI01 Adult Learning - Apprenticeships Jodie Yandall Additional fixed term staffing resources to assist developing the necessary standards for the Councils's apprenticeships and to ensure that the Council fully uses all of the funding £131,670 available from the apprentice levy paid. £131,670
General Fund Services Total £277,375
Pooled Budgets hosted by LBC CFE05 LSCB Pooled Budget Damian Elcock £6,679 Balance on pooled budgets managed by the Local Safeguarding Children's Board. To be carried forward to continue work programmes in 2020/21.
Total Carry Forwards to 2020/21 £284,054 Page 110 of 177 Appendix I Capital Outturn 2019/20
2019/20 Budget 2019/20 Outturn Monitoring Explanation / Action Funded Unfunded Budget After Q3 Final Final Final Released Over- Over- Slippage Forecast Spend Variance Slippage Advances Budgets spend spend Ref Scheme Description Funding Total Total Total Total Total Total Total Total Total £m £m £m £m £m £m £m £m £m Place & Infrastructure Department Energy PI42 Energy Performance Contract Phase 1 & Phase 2 CR 0.043 0.043 0.034 -0.009 -0.009 0.000 Energy Sub Total 0.043 0.043 0.034 -0.009 -0.009 0.000 0.000 0.000 0.000 Highways Integrated Transport PI1 LTP Package for Integrated Transport CG 1.465 1.465 1.671 0.206 0.000 0.000 0.206 0.000 PI5 NPIF - JUNC IMPR AT CARDIFF RD-DUNST RD CG 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 PI57 Digitalisation of existing safety camera stock CR 0.440 0.422 0.283 -0.139 -0.139 0.000 0.000 0.000 0.000 PI61 Red Routes CR 0.070 0.070 0.004 -0.066 -0.066 0.000 0.000 0.000 0.000 PI63 Speed restraint measures CR 0.390 0.290 0.304 0.014 0.000 0.014 0.000 PI94 Dunstable Road, Bury Park CR 0.400 0.065 0.053 -0.012 -0.012 0.000 0.000 0.000 0.000 Integrated Transport Sub Total 2.765 2.312 2.313 0.002 -0.218 0.014 0.000 0.206 0.000 Roads Maintenance PI2 LTP Highway Maintenance CG 1.321 1.371 1.379 0.009 0.009 PI4 Resurfacing CR 1.307 1.315 1.298 -0.017 -0.017 PI14 Burr Street Square Public Realm Enhancements CR 0.105 0.105 0.105 0.000 PI15 Midland Road Square Public Realm Enhancement CR 0.033 0.033 0.005 -0.028 -0.028 Roads Maintenance Sub Total 2.765 2.823 2.787 -0.036 -0.045 0.000 0.000 0.009 0.000 Parking Enforcement PI62 Enforcement of Red Routes using CCTV CR 0.063 0.063 0.059 -0.004 -0.004 0.000 0.000 0.000 0.000 PI23 Deploy CCTV Cameras for enforcement around schools CR 0.004 0.004 -0.004 -0.004 0.000 0.000 0.000 0.000 Parking Enforcement Sub Total 0.067 0.067 0.059 -0.008 -0.008 0.000 0.000 0.000 0.000 Other PI3 Replacement Highway Lighting 18/19 CR 1.000 1.000 0.463 -0.537 -0.537 PI8 Chobham Walk Parking Scheme CR 0.000 0.000 -0.001 -0.001 -0.001 PI9 East Luton Corridor (South) CR 0.027 0.027 -0.027 -0.027 PI10 Luton Dunstable Busway - Works CG/CR/CG 2.000 0.014 0.014 0.000 PI11 Luton Town Centre Transport Scheme CG/CR 1.272 1.272 0.012 -1.260 -1.260 PI12 M1 Junction 10a - Construction CG/CR 0.511 0.510 0.005 -0.505 -0.505 PI13 Parkway Station Northern Entrance CR 0.058 0.058 -0.058 -0.058 PI16 Luton Station Gateway CG 0.129 0.129 -0.129 -0.129 PI51 LLA Highway Access (Junctions of ELC) CG 2.078 2.078 1.338 -0.740 -0.740 PI79 Street Lighting LED Lantern Conversion CR 4.500 2.250 1.604 -0.646 -0.646 Century Park Access Road PI95 Napier Park - East of Luton 106 0.445 0.530 0.085 0.085 Other Sub Total 11.574 7.782 3.964 -3.819 -3.903 0.085 0.000 0.000 0.000 Highways Sub Total 17.170 12.984 9.123 -3.861 -4.174 0.099 0.000 0.214 0.000 Parks PI17 Sports Facilities at Wandon Park PB/EF 0.000 0.000 0.000 0.000 0.000 0.000 0.000 PI18 Stockwood Park Veteran Tree Measures CG/CR/CG 0.057 0.013 -0.004 -0.017 -0.017 0.000 0.000 0.000 0.000 PI64 Town centre Tree management programme CR 0.098 0.018 0.139 0.122 0.122 0.000 0.000 0.000 Page 111 of 177 Appendix I Capital Outturn 2019/20
2019/20 Budget 2019/20 Outturn Monitoring Explanation / Action Funded Unfunded Budget After Q3 Final Final Final Released Over- Over- Slippage Forecast Spend Variance Slippage Advances Budgets spend spend Ref Scheme Description Funding Total Total Total Total Total Total Total Total Total £m £m £m £m £m £m £m £m £m PI70 Wardown Park & Peoples Park play area safety surface CR 0.000 0.000 0.000 0.000 0.000 PI86 New Childrens Play Area Leagrave Park CR 0.075 0.075 0.000 -0.075 -0.075 0.000 0.000 0.000 0.000
PI88 New Vale Cemetery Boundary Fence CR 0.180 0.180 0.000 -0.180 -0.180 0.000 0.000 0.000 0.000 PI101 Wardown Park Bandstand CG 0.134 0.134 0.131 -0.003 -0.003 0.000 0.000 0.000 0.000 Parks Sub Total 0.544 0.420 0.267 -0.153 -0.275 0.122 0.000 0.000 0.000
Property PI24 Vale Crematorium & Chapel Upgrade/Refurbishment CR 0.000 0.000 PI25 Property Maintenance - Priority Programme CR 1.443 3.505 2.527 -0.978 -0.978 PI26 Asbestos Management and Removal CR 0.291 0.291 0.368 0.076 0.076 PI28 Risk Management - Fire protection CR 0.009 0.009 0.009 PI29 Alterations to Town Hall to support TWTP CR 0.377 0.379 1.354 0.975 0.975 PI32 Depot - Major Refurbishment CR 0.431 0.431 0.544 0.113 0.113
PI34 Building Schools for the Future (BSF) Life Cycle costs 25 yrs CR 0.380 0.380 0.380 0.000 PI36 Lewsey Learning Centre - Maintenance and Compliance CR 0.460 0.000 0.000 0.000 PI38 Community Centres - Maintenance and compliance CR 0.116 0.116 0.029 -0.088 -0.088 PI39 Parks Buildings - Maintenance & compliance CR 0.000 PI40 Active Luton new Head Quarters CR 0.000 0.000 0.000 PI41 Depot - Building Compliance & Dilapidations issues CR 0.000 Roof renewals to operational building following aerial survey PI43 reports CR 0.000 0.000 PI44 Investment Properties Project PB 3.029 6.590 6.590 0.000 PI45 Silver Street Car Park Culvert Repairs CR 0.831 0.020 0.084 0.064 0.064 PI46 New Multi Storey Car Park for Luton Town Centre CR 5.788 0.100 0.263 0.163 0.163 PI47 Lea Manor Recreation - Major Refurbishmt CR 0.000 0.000 0.000 0.000 PI52 Library Buildings - Refurbishment Programme CR 0.292 0.292 0.389 0.098 0.098 PI53 Town Hall Clock Tower Structural Repairs CR 0.150 0.010 -0.010 -0.010 PI54 Arndale House Fit Out & IT (3.5 floors) CR 0.000 0.168 0.168 -0.001 -0.001 TSLT (BWA/BSA) post construction outstanding work PI55 completion CR 0.250 0.250 0.323 0.073 0.073
PI72 Clemitson House Refurbishment to Floors 1 & 2 CR 0.500 0.500 0.075 -0.425 -0.425
PI73 Depot Waste Transfer Station - Fire Safety Works CR 1.200 1.200 0.068 -1.132 -1.132
PI74 Energy Performance Contract - Phase 3 CR 0.500 0.500 0.346 -0.154 -0.154 Town Hall Extension - External Fabric Renewal & PI80 Replacement Windows CR 0.600 0.010 0.035 0.025 0.025
PI88 New Vale Cemetery Boundary Fence CR 0.000 0.173 0.173 0.000 0.000 0.000 0.000 0.000 0.000
Page 112 of 177 Appendix I Capital Outturn 2019/20
2019/20 Budget 2019/20 Outturn Monitoring Explanation / Action Funded Unfunded Budget After Q3 Final Final Final Released Over- Over- Slippage Forecast Spend Variance Slippage Advances Budgets spend spend Ref Scheme Description Funding Total Total Total Total Total Total Total Total Total £m £m £m £m £m £m £m £m £m
PI183 Stockwood Park Academy Water Compliance 0.050
PI84 Stockwood Pak & Chalk Hills Academy Fire Prevention CR 0.250 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
PI91 Apex House Refurbishment to Floor 3 CR 0.400 0.010 0.010 0.000 0.000 0.000 0.000 0.000 0.000
Property Sub Total 17.338 14.926 13.734 -1.192 -2.788 1.498 0.000 0.098 0.000
Transport PI22 Transport Replacement Programme CR 2.308 2.308 0.634 -1.675 -1.675 0.000 0.000 0.000 0.000 Transport Sub Total 2.308 2.308 0.634 -1.675 -1.675 0.000 0.000 0.000 0.000
Waste PI19 Recycling Centre & Bins CR/CG 0.078 0.134 0.116 -0.017 -0.017 0.000 0.000
PI20 WCSS Implementation (Weekly Collection Support Scheme) CG 0.240 0.116 0.109 -0.007 -0.007 0.000 0.000 PI21 In Cab Technology CG 0.040 0.035 -0.035 -0.035 0.000 0.000 PI67 Replacement Litter Bins CR 0.035 0.018 0.018 0.000 0.000 0.000 PI71 Bins CR/CG 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Waste Sub Total 0.392 0.302 0.243 -0.059 -0.059 0.000 0.000 0.000 0.000
Place & Infrastructure Total 37.796 30.983 24.034 -6.949 -8.979 1.719 0.000 0.312 0.000 0.000 People Department Schools School Expansions Basic Need 2018/19 to 2022/23 (incl. P1 S106) CG 5.659 3.200 3.202 0.002 0.002 0.000 P4 Devolved Formula Capital Grant 2018/19/ to 2022/23 CG 0.604 0.653 1.343 0.690 0.690 0.000 P6 School Conditional Funding (LA Capital Maintenance) CG 2.842 1.561 2.479 0.918 0.918 0.000 P8 BSF Phase 1 Barnfield South - Construction CR 0.028 0.028 0.000 -0.028 -0.028 0.000 P10 Development of Putteridge Playing Fields CR 0.005 0.005 -0.005 -0.005 0.000 0.000 0.000 0.000 P11 Demolition of Challney Girls School PB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 P23 Resourced Provision at Woodlands CG 0.060 0.000 -0.060 -0.060 0.000 0.000 0.000 0.000 P26 Special Units and Resourced Provision SEND CG 0.450 0.000 0.017 0.017 0.000 0.017 0.000 0.000 0.000 Schools Sub Total 9.588 5.507 7.041 1.533 -0.093 1.627 0.000 0.000 0.000
Children P12 2 Year Old Entitlement CG 0.007 0.007 0.007 -0.001 -0.001 0.000 0.000 P14 Manor Family Centre Refurbishment Phase 2 CR 0.000 0.000 0.000 0.000 P15 Liquid Logic Child Sexual Exploitation Module CR 0.073 0.073 0.007 -0.067 -0.067 0.000 0.000 P16 Child Protection Information Sharing (CPIS) CR 0.025 0.025 0.002 -0.023 -0.023 0.000 0.000 P17 Profile System Replacement CR 0.050 0.003 0.003 0.000 0.000 0.000 0.000 0.000 0.000 Page 113 of 177 Appendix I Capital Outturn 2019/20
2019/20 Budget 2019/20 Outturn Monitoring Explanation / Action Funded Unfunded Budget After Q3 Final Final Final Released Over- Over- Slippage Forecast Spend Variance Slippage Advances Budgets spend spend Ref Scheme Description Funding Total Total Total Total Total Total Total Total Total £m £m £m £m £m £m £m £m £m P18 Multi Agency Safeguarding Hub CR 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 P21 Transforming Care-Housing (4 Properties) PB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 P22 Healthy Pupil Capital Grant CG 0.246 0.246 0.093 -0.152 -0.152 0.000 0.000 0.000 0.000 Children Sub Total 0.401 0.354 0.111 -0.242 -0.242 0.000 0.000 0.000 0.000
Adults P20 Modernisation of Day Services & Respite CR 0.000 0.000 0.007 0.007 0.000 0.007 0.000 0.000 0.000 Adults Sub Total 0.000 0.000 0.007 0.007 0.000 0.007 0.000 0.000 0.000
People Total 9.989 5.861 7.159 1.298 -0.336 1.634 0.000 0.000 0.000
Chief Executive's Department Replacement/Status Quo CE1 Application Software CR 0.010 0.010 0.002 -0.008 -0.008 CE2 Desktop Refresh Programme CR 0.193 0.193 0.285 0.092 0.092 CE3 Network Hardware Replacement CR 0.009 0.009 0.003 -0.007 -0.007 CE4 Mobile telephony estate refresh CR 0.070 0.070 0.008 -0.062 -0.062 CE5 Mobile and tablet refresh CR 0.146 0.146 0.001 -0.145 -0.145 CE6 Hot Swap Stock CR 0.024 0.024 0.019 -0.004 -0.004 CE7 Improved Workspaces CR 0.010 0.010 0.010 0.000 0.000 CE8 Laptop/Hybrid refresh CR 0.000 0.000 CE9 Website - refreshing and replacing core digital platform CR 0.170 0.105 0.050 -0.055 -0.055 CE10 ICON PCI update refresh CR 0.007 0.007 0.007 0.000 CE11 Data Centre Refresh CR 0.371 0.371 0.298 -0.073 -0.073 CE12 Corporate Wifi CR 0.021 0.000 0.000 CE13 Sharepoint replacement CR 0.030 0.030 -0.030 -0.030 CE15 Addition of a further internet Connection CR 0.000 0.000 0.000 CE21 Intranet replacement CR 0.160 0.160 0.112 -0.047 -0.047 Replacement/Status Quo Total 1.220 1.134 0.795 -0.339 -0.432 0.092 0.000 0.000 0.000
Transformation CE16 Digital Inclusion CR 0.036 0.000 0.000 0.000 0.000 0.000 0.000 CE18 Transition PS for Data Centre Refresh CR 0.306 0.306 0.005 -0.301 -0.301 0.000 0.000 0.000 0.000 CE19 W2 Improvement CR 0.045 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Implementing unified communications for new telephony CE23 system CR 0.063 0.000 0.027 0.026 0.000 0.026 0.000 0.000 0.000 CE24 Business Intelligence CR 0.213 0.213 0.269 0.056 0.056 0.000 0.000 0.000 CE25 New ICT Software - Technology CR 0.090 0.090 0.000 -0.090 -0.090 0.000 0.000 0.000 0.000 CE26 New ICT Software - BI CR 0.133 0.133 0.000 -0.133 -0.133 0.000 0.000 0.000 0.000 CE32 Digital Strategy Implementation CR 0.258 0.209 0.178 -0.031 -0.031 0.000 0.000 0.000 0.000 Transformation Sub Total 1.144 0.951 0.479 -0.473 -0.555 0.082 0.000 0.000 0.000
Page 114 of 177 Appendix I Capital Outturn 2019/20
2019/20 Budget 2019/20 Outturn Monitoring Explanation / Action Funded Unfunded Budget After Q3 Final Final Final Released Over- Over- Slippage Forecast Spend Variance Slippage Advances Budgets spend spend Ref Scheme Description Funding Total Total Total Total Total Total Total Total Total £m £m £m £m £m £m £m £m £m Chief Executive's Total 2.364 2.085 1.273 -0.812 -0.987 0.174 0.000 0.000 0.000
Customer & Commercial Department Housing General Fund Grants for the improvement and adaptation to private CC1 housing CG/CR 1.895 1.895 2.116 0.221 0.221 CC2 Modernisation of Mobile Home Park and Travellers Site RC/CR 0.389 0.389 0.239 -0.149 -0.149 CC3 Mobile Homes and Caravan Sites RC 0.005 0.005 0.000 -0.005 -0.005 CC4 Renovation of Highways Agency Properties (GF) CR 0.000 0.000 0.000 0.000 CC6 Empty Homes CR 0.400 0.400 0.000 -0.400 -0.400 CC7 Wigmore Hall Conversion (into Housing Scheme) PB 0.000 0.000 0.000 CC8 Wardown Park Museum Redevelopment CG/CR 0.000 0.035 0.049 0.015 0.015 CC9 New Storage Building for BTS CR 0.275 0.275 -0.275 -0.275
CC11 Temporary Accommodation Purchasing Scheme (TAPS) CR 0.958 0.958 0.382 -0.576 -0.576 CC12 Right To Buy receipts Grant to Housing Associations RTB 0.425 0.425 0.183 -0.242 -0.242 Freehold Purchase of 51 Flats for Nightly Lets CC13 Accommodation CR 0.000 0.000 0.042 0.042 0.042 CC14 BTS Whole Job Costing RCCO 0.070 0.070 0.000 -0.070 -0.070 Customer & Commercial Total 4.4171 4.452 3.011 -1.370 -1.648 0.277 0.000 0.000 0.000
Corporate Projects CORP1 LLAL Debentures - DART PB 92.000 82.000 97.400 15.400 0.000 15.400 0.000 0.000 0.000 CORP3 LLAL Debentures - DCO PB 33.500 28.500 0.000 -28.500 -28.500 0.000 0.000 0.000 0.000 CORP4 LLAL Debentures - CPAR PB 9.300 9.300 1.900 -7.400 -7.400 0.000 0.000 0.000 0.000 CORP5 LLAL Debentures - Bartlett Square PB 9.500 4.500 0.000 -4.500 -4.500 0.000 0.000 0.000 0.000 CORP2 Foxhall Homes - Share Capital PB 1.200 0.000 0.000 0.000 0.000 0.000 0.000 CORP6 Foxhall Homes - Loans PB 18.000 7.100 0.000 -7.100 -7.100 0.000 0.000 0.000 0.000 CORP7 LEP Share Acquisition RCCO 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Corporate Projects Total 163.500 131.400 99.300 -32.100 -47.500 15.400 0.000 0.000 0.000
General Fund Total 218.065 174.781 134.777 -39.933 -59.449 19.203 0.000 0.312 0.000
Housing Revenue Account HRA1 Purchase of Ex RTB properties HRA 0.360 0.360 0.357 -0.360 -0.360 0.000 0.000 0.000 0.000 HRA2 Marsh Farm Central Area Redevelopment HRA 6.937 6.304 5.439 -0.151 -0.151 0.000 0.000 0.000 0.000 HRA3 Major Works (BTS Capital) HRA 20.582 13.614 15.970 -1.498 -1.498 0.000 0.000 0.000 0.000 HRA4 Highways Agency Properties HRA 0.142 0.000 0.012 0.000 0.000 0.000 0.000 0.000 0.000 HRA5 Refurbishment of Cornish Units HRA 0.093 -0.093 -0.093 0.000 0.000 0.000 0.000 HRA6 Hightown Area Refurbishment HRA 0.141 0.142 -0.041 -0.041 0.000 0.000 0.000 0.000 HRA7 Acquisition of Homes (Highways Agency Bungalows) HRA 0.000 -0.311 0.000 0.000 0.000 0.000 0.000 0.000 HRA8 Additional New Affordable Homes HRA 0.000 1.316 0.000 0.000 0.000 0.000 0.000 0.000 Page 115 of 177 Appendix I Capital Outturn 2019/20
2019/20 Budget 2019/20 Outturn Monitoring Explanation / Action Funded Unfunded Budget After Q3 Final Final Final Released Over- Over- Slippage Forecast Spend Variance Slippage Advances Budgets spend spend Ref Scheme Description Funding Total Total Total Total Total Total Total Total Total £m £m £m £m £m £m £m £m £m HRA9 HRA Garage and Infill HRA 2.718 2.867 -0.316 -0.316 0.000 0.000 0.000 0.000 HRA10 Buckle Close HRA 3.038 0.068 0.000 0.068 0.000 0.000 0.000 HRA11 Freemans Green Land Adj Sherd Lodge HRA 0.397 HRA12 Birdsfoot Lane Development HRA 0.375 1.540 HRA15 Freemans Green Land Adj Sherd Lodge HRA 0.000 -0.135 -0.135 0.000 0.000 0.000 0.000 Housing Revenue Account Total 34.407 23.520 24.467 -2.527 -2.595 0.068 0.000 0.000 0.000
Council Total 252.473 198.301 159.244 -42.460 -62.043 19.271 0.000 0.312 0.000
Page 116 of 177 Report For: Executive Item No: Date: 29 June 2020 Report of: Lucy Hubber 10 Report Author: Matthew Hudson
Subject: Library Strategy Lead Executive Cllr Sian Timoney Member(s): Wards Affected: All Consultations: Councillors ☐ Scrutiny ☒ Stakeholders ☒ Others ☐
Recommendations 1. Executive is recommended to adopt the library strategy (at Appendix A), which has been developed in consultation with local people and focuses on:
a. aligning the Library offer with strong outcomes to benefit communities; b. providing sustainable and safe warm spaces for communities to learn and grow; c. enhance and increase the digital offer; d. co-locating library services with partner organisations so several services to be accessed in one visit; e. increasing the use of trained volunteers; f. replacing poorly used library collections; and g. seeking investment in libraries to instil civic pride through a modern and vibrant offer.
Background 2. Luton Borough Council’s 2040 Luton strategy envisions that people, communities and organisations of Luton work together to realise a town built on fairness; providing opportunities for all residents to reach their full potential and achieve a good quality of life.
3. Luton 2040 aspires for Luton to be a sustainable, resilient and inspiring place, where communities work together to ensure no one lives in poverty.
4. The reduction in local government funding presents significant challenges for all public bodies and both statutory and non-statutory services are now subject to increasing scrutiny and review. Library services are not immune from this as the Council considers how to meet its statutory responsibilities in the context of significant reductions in public spending.
5. Locally and nationally, library services are facing challenges to many of its traditional functions. In the context of significant reductions in public spending at Government level that have been exacerbated by the catastrophic implications of COVID-19, the Council cannot afford to spend as much on its library service as it has in the past.
6. This Strategy will be the driver for developing the service to ensure relevance in a digital world, in a context of smaller budgets, increased partnerships, shared services and buildings and consortium working.
Page 117 of 177
7. Luton Borough Council has a statutory responsibility (legal duty) to provide a local library service in accordance with the Public Libraries and Museums Act 1964. The Act requires that the Local Authority provide a library service that is ‘comprehensive and efficient’. It is for local decision how the library service best meets this requirement practically, including how many libraries there are, where they are, when they are open, and what each one offers. Provided that:
a. Facilities for the borrowing of books and other materials are made available to any persons whose residence or place of work is within the library area of the authority or who are undergoing full time education within that area;
b. Keeping adequate stocks available for the borrowing of, or reference to, books and other printed matter, pictures, gramophone records, films and other materials, sufficient in number, range and quality to meet the general requirements and any special requirements of both adults and children;
c. Encourage both adults and children to make use of the Library Service, and of providing advice as to its making available such bibliographical and other information as may be required by persons using it;
d. Of securing, in relation to any matter concerning the functions both of the library authority as such as and any authority whose functions are exercisable within the library area, that there is full cooperation between persons engaged in carrying out those functions; and
e. The law makes it clear that councils cannot charge people for library services that make up part of their statutory provision.
8. Libraries Deliver: Ambition for Public Libraries in England 2016-2021, published by the DCMS in December 2016 and endorsed by the Local Government Association, sets out a vision for public library services in England.
9. The document challenges local authorities “to explore alternative forms of delivery and financing for library services before making any reductions in library services”, and sets out the current context for libraries as a nationally mandated service delivered locally, to local priorities:
a. “Libraries change lives for the better. They not only provide access to books and other literature but also help people to help themselves and improve their opportunities, bring people together, and provide practical support and guidance. As a locally accountable service, they are well-placed to respond to local needs and issues.”
10. To support the development of the Strategy and to help identify what local people need, and to understand how Luton Borough Council can deliver its statutory duty of a ‘comprehensive and efficient library service’, a survey was designed to capture the views of both users and non-users. The consultation responses are present at appendix C, and the identified needs/demands for change to the Library Service have been summarised below:
Page 118 of 177 a. aligning the Library offer with strong outcomes to benefit communities;
b. providing sustainable and safe warm spaces for communities to learn and grow;
c. enhance and increase the digital offer;
d. co-locating library services with partner organisations so several services to be accessed in one visit;
e. increasing the use of trained volunteers;
f. replacing poorly used library collections; and
g. seeking investment in libraries to instil civic pride through a modern and vibrant offer.
The Current Position 11. The Council has not described or characterised a ‘comprehensive and efficient’ service at any point. However in previous option appraisals Luton Central Library has consistently featured to retain and it could reasonably be concluded that it is fundamental to meeting any test.
12. The draft Library Strategy sets out the challenges, considerations and direction of travel over the next five years that will ensure Luton’s Library Service is robust, sustainable and relevant to the diverse and changing needs of people who live, work or study in Luton.
13. The draft strategy demonstrates a commitment to the delivery of a broad range of modern, affordable library services to meet needs in reading, accessing information, learning, literacy, health and wellbeing, business and leisure.
14. The implications of COVID-19 mean that user interactions and requirements of the library service are likely to change. The strategy provides the flexibility and opportunity to allow the library service to respond appropriately to emerging needs.
Goals and Objectives 15. To define what “comprehensive and efficient” library service looks like for Luton’s residents and those who work or study here; and
16. To maintain the quality of the library service through a model that is best able to achieve this in both the short and the long term.
Proposal 17. The strategy considers opportunities for both efficiencies and where possible investment, such as the rationalisation or strategic alignment of community services, and investment to maintain and, where possible, enhance the current service offer.
18. The draft strategy covers four main outcomes:
a. Promoting lifelong learning for all; b. Building community through outreach, programmes and partnerships; c. Supporting and enabling health and wellbeing; and
Page 119 of 177 d. Driving sustainable economic growth through modernisation of the service, and finding innovative ways to improve the offer and save money.
19. This strategy will be kept under review during its lifetime to ensure delivery of the targeted outcomes is monitored, and to allow for re-evaluation of the ambition and focus.
Key Risks 20. Significant reductions in public spending, notwithstanding the implications of COVID-19, means that libraries will need to become more efficient to contribute to local government savings targets, becoming financially efficient and affordable based on community needs and modernised to meet the future needs of residents.
21. Libraries are incredibly important, and it is important that the Council engage fully with communities around proposals for rationalisation or transformation of the Library Service, and that they are consulted widely, allowing reasonable time for communities to develop alternative or complementary proposals.
Consultations 22. To understand the views of Luton residents (library user and non-user) on usage and satisfaction of the current provision, as well as to establish preferences and priority areas for future library service provision, data was collected via a questionnaire available through the Council’s consultation portal (hard copies were made available through the libraries). The consultation was run for eight weeks in autumn 2019. The questionnaires asked for quantitative data through fixed response questions, supported by qualitative feedback through free text boxes.
Alternative options considered and rejected (please specify) 23. NA
Appendices Attached 24. Appendix A – Library Strategy
25. Appendix B - Integrated Impact Assessment
26. Appendix C – Consultation Report
Background Papers 27. None
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For Executive Reports: All grey boxes must be completed All statements must be cleared by an appropriate officer
For CLMT Reports: Only the dark grey boxes must be completed Clearance is not required
Legal Clearance Agreed By Dated Duties to provide are referred to in the body of the Steven Sparshott 2 June 2020 report Senior Solicitor
Finance Clearance Agreed By Dated Due to of reduction in revenue support grant from Atif Iqbal, Finance 12 June the Central Government and also C-19, the Council Business Partner 2020 has a budget gap of £22m which means all the services in the Council will need to be reviewed to ensure that efficiencies can be achieved. Financial implications of any emerging projects relating to the strategy will require in-depth finance scrutiny on a case by case basis and separate reports will need to be approved by the Exec with all the financial implications.
Integrated Impact Assessment (IIA) – Key Points
Equalities / Cohesion / Inclusion (Social Justice) Clearance Agreed By Dated Implications relating to any proposal around Maureen Drummond, 5 June 2020 rationalisation, reduction or transfer of services will Interim Equalities Manager need to be reviewed. The IIA has identified a positive impact for young people but a negative impact for the elderly. Library staff and volunteers will be negatively impacted by the relocation or closure of library sites Environment Clearance Agreed By Dated No direct implications, however, there is the Katarzyna Wysocka, Team 11 June potential for both positive and negative implications. Manager Sustainable 2020 The strategy will need to consider the Development and environmental implications and, where appropriate, Transport ways to mitigate any negative impacts as part of its consideration of future decisions. Health Clearance Agreed By Dated The new strategy provides opportunities that would Sally Cartwright 10 June have positive implications for health and wellbeing. Service Director 2020 Equally, there is the potential for negative Healthcare
Page 121 of 177 implications. The strategy will need to consider the health and wellbeing implications and, where appropriate, ways to mitigate any negative impacts as part of its consideration of future decisions. Community Safety Clearance Agreed By Dated
Staffing Clearance Agreed By Dated
Other Clearance Agreed By Dated
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Luton Council Library Strategy 2020-2025
Introduction Our Library Strategy sets out our aspiration and vison for a library service that is sustainable and relevant to the residents of Luton. Whilst we recognise that Libraries are an invaluable community service providing access to learning, information and culture for all, the landscape for libraries has changed dramatically in the last ten years.
Libraries have a key role to play in enabling Luton Borough Council to deliver on its vision for Luton in 2040: a vibrant town built on fairness, where people live good lives and achieve their aspirations, everyone will be able to achieve their potential and inequality will be reduced, a town where no one lives in poverty. Our vision for the library service will inspire people to read, learn and access trusted sources of information, enabling individuals to improve their economic and social wellbeing. This will be achieved through the provision of easily accessible physical and online information, welcoming community spaces, access to health and wellbeing services, and supporting skill development to utilise this information for all. Our library service is therefore fundamental in breaking the link between information poverty and income poverty, and in reducing social isolation towards achieving the Luton 2040 vision.
Ensuring no one in Luton is living in poverty by 2040 is a bold ambition, but it's something we are absolutely determined to achieve. We see the role of libraries and other community assets as key to achieving this ambition. The strategic alignment of the Council’s community assets would enable the development of a unique configuration of services that best reflects and responds to local need, enabling: improvements in population health and wellbeing; reduction in health inequalities; empowered and engaged communities; reduce social isolation; and transforming neighbourhoods for the better.
This strategy will be the driver for developing the service to ensure relevance in a digital world in a context of reducing budgets, increased partnerships, shared services and buildings and consortium working. It will ensure that there is a clear transformation of the library service across the town to ensure that Luton Borough Council can deliver a high quality library service that is sustainable into the future and remains relevant to the diverse and changing needs of Luton residents. We will ensure transformation through the establishment of strategic priorities supported by the development of an action plan.
In developing this strategy, the Council has considered its statutory obligations and the contribution that libraries can make to wider Council priorities, specifically the Councils vision for 2040 priorities: Empowered families and communities; Reduced health inequalities; and School to employment pathways.
An independent inclusive growth commission has already provided valuable recommendations, which has shaped thinking on how Luton will become an inclusive, modern, and aspirational place and recognises the value of our young people and diverse population. Libraries are recognised nationally as providing a significant role to communities in delivering a broad range of outcomes, including increasing wellbeing, literacy targets and community cohesion. In addition, their role as a service located within communities provides a rich selection of resources and materials locally and can offer a venue that facilitates a social space, events and shared working in creative and innovative ways. Libraries are uniquely situated, as a trusted and valued service, to engage with local communities in responding to changing needs and neighbourhood priorities.
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The Library strategy has also been further informed by Harnessing Momentum: A Strategic Vision for the Arts, Cultural and Creative Industries in Luton 2017-2027.
Purpose of Service The purpose of our library service is improve access to knowledge, information and public spaces through engagement with partners and communities to build an inclusive town. The service exists to ensure that quality resources, knowledge and technology are available and accessible to everyone.
Luton Council’s principal objective is to maintain the quality of the library service through a model that is best able to achieve this in both the short and the long term.
Our Statutory Duty Luton Council has a statutory responsibility (legal duty) to provide a local library service in accordance with the Public Libraries and Museums Act 1964. The Act requires that the Local Authority provide a library service that is ‘comprehensive and efficient’.
There are no national standards for library provision, it is for local decision to how the library service best meets this requirement practically, including how many libraries there are, where they are, when they are open, and what each one offers. As a result, library services across the country are not all the same. Services are shaped by factors such as local policy, customer need and, in some cases, historical developments.
In formulating the library strategy the Council must also comply with the public sector equality duty (section 149 of the Equality Act). This requires the Council to have due regard to the need to eliminate discrimination, harassment, victimisation and any other conduct that is prohibited under the Act and to advance equality of opportunity and foster good relations between those who share a relevant protected characteristic and those who do not share it; the relevant protected characteristics are: age; disability; gender reassignment; pregnancy and maternity; race; religion or belief; sex; sexual orientation; and marriage and civil partnership.
How does our strategy compare to what is happening nationally? In 2010, the Chartered Institute for Library and Information Professionals published guidance for local councils which said that a good public library service would deliver:
“A positive future for children and young people; a fulfilling life for older people; strong, safe and sustainable communities; promotion of local identity and community pride learning; skills and workforce development; Health improvements and wellbeing; Equality, community cohesion and social justice; and Economic regeneration.”
Libraries Deliver: Ambition for Public Libraries in England 2016-2021, published by the Department for Digital, Culture, Media and Sport (DCMS) in December 2016, and endorsed by the Local Government Association, sets out a vision for public library services in England. The document provides seven outcomes to achieve the vision: i. Cultural and creative enrichment; ii. Increased reading and literacy; iii. Improved digital access and literacy; iv. Helping everyone achieve their full potential; v. Healthier and happier lives; vi. Greater prosperity; and vii. Stronger, more resilient communities.
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The document also challenges local authorities to “explore alternative forms of delivery and financing for library services before making any reductions in library services”, and sets out the current context for libraries as a nationally mandated service delivered locally, to local priorities.
Libraries Connected (formerly the Society of Chief Librarians) also produced and launched the universal offers for public libraries in 2013. These were reviewed with the public library sector and stakeholders in 2019 and re- launched as a streamlined and consistent framework with the mission of “Connecting communities, improving wellbeing and promoting equality through learning, literacy and cultural participation” with the four key themes of: Reading – engage, imagine, discover; Information and digital – inform, inspire, innovate; Health and wellbeing – healthier, happier, connected; and Culture and creativity – explore, create, participate
In developing this strategy, the Council has considered its statutory obligations, the universal offer and the contribution that libraries can make to Council priorities. To support us in identifying what local people need from the library service and understand how we can deliver our statutory duty of a ‘comprehensive and efficient library service’ a survey was designed to capture the usage and views of both users and non-users (full analysis available as Appendix 1).
This Strategy demonstrates a commitment to the delivery of a broad range of modern, affordable library services to meet people’s needs in reading, accessing information, learning, literacy, health and wellbeing, work and leisure.
Our library service will: Outreach and engage with community members and organisations to ensure Luton’s library offer adapts to meet local needs; enable all that live, work and study in Luton to access knowledge, information and cultural resources for themselves, and provide support for those who may need more help; contribute to the health and wellbeing of our communities; provide safe spaces (both physical and virtual) where anyone can go, without judgement, to read, to borrow, to learn, and to access information and online resources; enrich communities by fostering local culture and heritage, and provide opportunities for citizens to participate actively in community life; and Achieve financial resilience and sustainability by seizing opportunities to reduce costs and increase income.
The implications of COVID-19 mean that user interactions and requirements of the library service are likely to change. This strategy provides the flexibility and opportunity to allow the library service to respond appropriately to emerging needs and opportunities.
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Where we want to be: Strategic Vision for Libraries 2020-2025 Our vision is to create a modern Library Service at the heart of the community that is inclusive, efficient, safe and accessible, and meets the needs of all who live, work or study in Luton. Our service will be responsive, relevant, sustainable, and support residents to reach their potential.
“A library in the middle of a community is a cross between an emergency exit, a life-raft and a festival. They are cathedrals of the mind; hospitals of the soul; theme parks of the imagination. On a cold rainy island, they are the only sheltered public spaces where you are not a consumer, but a citizen instead” Caitlin Moran columnist and author (‘Moranthology’, 2012).
There are a number of reasons why libraries need to develop over the next five years, determined by local need, the Council’s priorities, and national policy (Libraries as a statutory service1).
Our ambition is that by 2025, we will have transformed the Library Service from its current offer (summarised at Appendix 2) to an inspiring Library Service shaped by the community where libraries are an integral part of a wider community hub; a place for people to meet/gather; a place for learning/self-improvement; a place for the promotion of health and wellbeing, and seen as ‘much more than just a library’.
The transformation of the Library Service will enable the service to be fit for purpose, sustainable, and able to support its users to access high quality services. In the context of this strategy, Community Hubs represent the potential transformation of the Council’s community estate to strategically align services, with the view of enabling more services to be accessed in one place, increasing convenience for residents, as well as enabling modern, vibrant, safe and sustainable spaces that will instil civic pride and enable communities to learn and grow.
Libraries are incredibly important, and the Council will engage fully with communities around any proposals for reform of the Library Service, ensuring any proposals are consulted widely, allowing reasonable time for communities to develop alternative or complementary proposals. This will enable the service to meet community needs, achieve financial sustainability, and ensure the best quality delivery of service.
Our Strategic Priorities
Priority 1: Promoting Lifelong Learning for all
Delivering on this strategic priority: Libraries provide public access to resources, information, and knowledge. Therefore, the library service has a pivotal role to play in the delivery and development of future systems of lifelong learning. Libraries offer guidance and training in how to search and use this information, and rate the quality of information sources. The service also supports employees and volunteers to develop new skills.
The library service will continue to work closely with education services, schools, colleges and the university to contribute to children’s literacy, school-readiness, and lifelong learning and development. Access to books and the promotion of reading has a significant effect on children’s academic skills as well as their mental health and wellbeing. The Library service will continue to inspire children from their earliest years to discover a love of reading and to learn and develop. This includes free Bookstart packs for babies, toddlers and school-starters, work with schools, Summer Reading Challenge, Rhyme times, story times, clubs and activities for children as well as books for all ages, dedicated study zones and online resources.
1 https://www.gov.uk/government/publications/guidance-on-libraries-as-a-statutory-service
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The library service will ensure diversity in the materials offered. The library service recognises the importance of library users ‘seeing themselves’ in the materials offered, through character representation in fiction, wider representation in non-fiction and linguistic representation in terms of the materials offered.
The library service will adapt to new demands, and help people to access library services and materials, signpost services offered by partners, and explore working in different ways as the library service evolves.
Target Outcomes: Encourage library users of all ages to become literate in all forms of contemporary communication; Library services to work closely with education services and schools, colleges and the university to contribute to children’s literacy, school-readiness and lifelong learning and development; Provide technology and access to resources that support people in self-study; Engage with community partners to develop and deliver various traditional and non-traditional literacy programs; Identify new ways our collections, programmes and services can assist with life-long literacy and discovery; Continue to build diverse collections to support programming and services, ensuring there is a diverse offering of materials, including dual-language picture books; Further develop partnerships that support people into employment; Offer core courses, learning and e-learning opportunities in libraries; Develop computer literacy skills, supporting entrepreneurs and assist in developing financial literacy; and Engage with local partners to reduce levels of digital exclusion and disadvantage.
Priority 2: Building community through outreach, programmes & partnerships.
Delivering on this strategic priority: The library service plays an important role in community development, as places to meet or through outreach work in communities. The Library service will strengthen its programme of outreach, providing library services and activities where they are most needed, including schools, and other community venues. The service will reach new communities, increasing service usage and bringing in new customers through outreach, marketing and by providing a service that is appealing and relevant to them.
Target Outcomes: Build on existing strong partnerships to ensure libraries are used by multiple agencies, to become community hubs for a number of quality service offers; Ensure that the service develops and delivers innovative and effective outreach programmes, based on identified needs; Identify and engage with community groups and partners to develop innovative and effective programmes, collections, and services; Improve accessibility and strengthen community resources and assets by extending the availability of the building outside staffed hours; Enhance the promotion of activities that take place in libraries that support people looking for employment and/or progression in their careers; and Build on the library's profile and participate in neighbourhood and community-wide events.
Priority 3: Supporting and enabling health and wellbeing.
Delivering on this strategic priority:
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Changes in local needs means that library services have to evolve and adapt. As well as being a source of information, lender of books, and other learning materials, libraries have an important role to play in the prevention of ill-health, and promotion of health and wellbeing. Libraries provide a safe space where people can access or find out about other services, meet others and socialise or simply spend time.
Target Outcomes: Contribute to the public health agenda, particularly in the areas of physical and emotional wellbeing; Build relationships with partners to help deliver health and wellbeing initiatives to Luton’s diverse communities; Improve the library environment whilst offering a venue that is universally accessible and free at the point of access, which provides a place of safety and companionship for people who have a sense of isolation; Improve and promote a wide cultural programme and social inclusion, increasing digital inclusion; Ensure that vulnerable and isolated customers who are unable to visit the local library in person are still able to access library services; reviewing current outreach services and exploring new delivery models to improve access for these customers, making greater use of developing technologies and home delivery solutions; and Promote mental and physical wellbeing by connecting people with knowledge, opportunities, and services, and with each other.
Priority 4: Driving sustainable economic growth through modernisation of the service and finding innovative ways to improve the offer and save money.
Delivering on this strategic priority: Despite the financial challenges the Council faces, we are determined to continue to transform how the library service operates. Within the context of significant reductions in public spending it has been recognised that libraries will need to contribute to local government savings targets by becoming financially efficient and affordable based on community needs. We need to target investment towards modernising the service to meet the future needs of residents. While we cannot speculate on the number or locations of libraries in the future, we can guarantee a quality, town wide service that is responsive, modern, relevant and sustainable in a changing world where its value to residents is acknowledged; where the service is the best it can be for all.
Target Outcomes: Ensure the service is run efficiently and provides value for money; Share library buildings to provide other services that people want locally, creating community hubs; Create a seamless user experience through the integration of our digital and physical spaces; Investigate innovative and alternative service delivery models; Invest in technology to improve library operation and services; and Use new technology such as self-service and e-books.
What will success look like? Our Vision and Strategic Priorities provide a clear direction for the future delivery of the Library Service over the next five years, and supports the Council’s overarching priority of eradicating poverty. Throughout our journey we will regularly review our outcomes and progress made against them.
This strategy will be kept under review during its lifetime to ensure that we continue to monitor and evaluate our ambition. An action plan will be developed in partnership with the provider of the Library Service and will be monitored periodically and reviewed annually. The action plan will bring together the strategic priorities, the Libraries Deliver outcomes, the libraries connected themes, and assessments of local needs with the aim of fulfilling the targeted outcomes. The Library Service will work with various partners to achieve the ambitions of this plan.
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This strategy and its action plan will support and respond to Luton 2040, the Health and Wellbeing Strategy, the Strategic Vision for the Arts, Cultural and Creative Industries in Luton, and Many Voices, One Town – a strategy for building a stronger community in Luton, as well as other key local and national strategic documents.
We will consider this strategy to have achieved our ambition for libraries if the following are achieved: Overall use of library services, whether online or in person, increases; The service is reaching new communities and bringing in new customers; The service is making a positive contribution to improving outcomes and opportunities for citizens; The service is economic, efficient, effective and sustainable; and The service is supporting and contributing to the wider strategic prioirites of the council.
Key performance indicators will be developed and reviewed periodically, and enhanced or adapted where appropriate, to achieve our ambition.
List of Appendices: Appendix 1 – Summary of consultation Appendix 2 – Overview of Existing Provision
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Appendix 1 – Summary of consultation
Appendix A - Survey Summary v0.1.docx
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Appendix 2: Overview of Existing Provision
Libraries offer a wide range of services for all ages, including: safe and welcoming spaces; quality book stocks for all ages (including different languages); homework help; activities to encourage reading and cultural engagement; information for local studies; access to a PC and free online resources (including Wi-Fi); informal learning; home library service; membership; concessions; signposting; and functional support such as photocopying. Libraries also engage with partners to deliver cross-cutting objectives through different programmes and projects.
Libraries There are six static libraries in Luton, which offer the full range of core services, and three Library Access Points, which provide access to a collection of books: Luton Central Library, St. George's Square, LUTON, LU1 2NG; Leagrave Library, Marsh Road, LUTON, LU3 2N; Marsh Farm Library, Lea Manor High School, Northwell Drive, LUTON, LU3 3TL; Lewsey Library, Landrace Road, Luton, LU4 0SW; Stopsley Library, Hitchin Road, Luton, LU2 7UG; and Bury Park Library, Bury Park Community Centre, 161 Dunstable Road, Luton, LU1 1BW. Library access points: o Hockwell Ring Community Centre o Chaul End Community Centre o Farley Community Centre
In addition, a home library service and a range of virtual resources are also available for Luton residents. Luton Central Library is the headquarters for the service and offers the main local studies collections for Luton.
Library core service Books in standard and large print; Audio books and e-Audio books; Music and films in appropriate formats; Newspapers and magazines in print and e-format; Books and newspapers in a range of community languages; Computer and internet access through the public library computers; Free Wi-Fi at all libraries (not currently available at Marsh Farm Library); Access to online services and resources; Bookstart Rhyme Time and Homework Help; Study space and quiet areas; and
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Events and activities to support reading and literacy. All libraries participate in the national Summer Reading Challenge and support other programmes, such as those set out in the Universal Offers Calendar.2
Library Access Points core services Books in standard and large print; and Free Wi-Fi.
2 https://www.librariesconnected.org.uk/resource/universal-library-offers-calendar-2020
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Appendix B The key aim of an impact assessment is to ensure that all Council policies, plans and strategies support the corporate mission statement
‘Enabling Luton to be proud, vibrant, ambitious and innovative’.
Why do I need to do an IIA? The aim of this impact assessment process is to: Ensure adherence to the legal duties contained within the Equality Act 2010 and associated Public Sector Duty to analyse the impact of decisions to be undertaken by Council. Ensure the Council has due regard to equality taking a proportionate and timely approach to analysing the impact on citizens. Minimise duplication of initial impact assessments with regards to Environment and Health and maximise consideration of other key Council priorities of Inclusion and Community Cohesion. Ensure that the Council has been able to consider the social, health, environmental and economic impacts in its decision making in a single document and, where necessary enable the production of a comprehensive action plan to mitigate any potential negative impacts identified.
When do I need to do an IIA?
An IIA must be started at the beginning of any project, policy or strategy, and cannot be finalised until such time as all consultations, as required, are undertaken.
The Impact Table will help you to make early consideration of the potential impacts of your proposal and should be used from the point at which preliminary report is taken to Corporate Leadership and Management Team (CLMT) where appropriate. By using this table at your earliest point in the project, potential impacts can be highlighted and it will also be clear whether you need to carry out a full IIA. If you complete this table and all impacts identified are neutral, i.e. there is no noticeable impact on characteristics and priorities listed and you are fully confident of this, please contact the SJU by email setting out how you have reached this judgement as it is unlikely you will need to carry out a full IIA. An IIA must at all times identify those who will be affected by the decision, policy or strategy. At a time of economic austerity IIA authors are minded to consider the whole range of decisions, both locally and nationally when analysing the impact on citizens. Your first early draft is to be sent to the Social Justice Unit for comments and guidance Once consultation has ended, the IIA must be updated with results of the consultation and returned to Executive, where required, for further consideration and approval – at this stage it will be signed off as completed by the Social Justice Unit.
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If you need further guidance please contact the Social Justice Unit (SJU). Please see links at the end of this document to key Corporate and Partnership documents that may help you complete this IIA.
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Proposal Title: Library Strategy Lead Officer Name: Matthew Hudson Date of IIA: 01/06/2020
Date updated after consultation: Early draft Seen by: (Please send an early draft of your IIA to the SJU to ensure all impacts are being considered at the appropriate time)
Finalised IIA Signed and seen by SJU : Name: Maureen Drummond, Interim Equalities Manager Date 5 June 2020
Names of all other contributors and Serena Abel, Lucy Hubber, Helen Barnett, stakeholders involved in the preparing of Toni Chivers this proposal who have been consulted with and agreed this assessment: (Please note the IIA must not be carried out by one person) If there is any potential impact on staffing The following persons received this IIA please include the name/s of the trade document: union representative/s involved in the Christina Beddows (Unison) preparation of this assessment or any Jimmy Cummings (Unite) supporting evidence of request to participate: Jason Childs (GMB)
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Proposal Outline
Information supporting the proposal (who, what, where, how, why). Breakdown of present users by ethnicity, age, sex, disability, religion/belief, sexual orientation (if recorded). Show areas in the town with the biggest and lowest needs. Greater emphasis is required at the start of the IIA on the service, how it is delivered now and how the new service will be delivered. Proposal To adopt the library strategy (at Appendix A), which has been developed in consultation with local people and focuses on: a) aligning the Library offer with strong outcomes to benefit communities; b) providing sustainable and safe warm spaces for communities to learn and grow; c) enhance and increase the digital offer; d) co-locating library services with partner organisations so several services to be accessed in one visit; e) increasing the use of trained volunteers; f) replacing poorly used library collections; and g) seeking investment in libraries to instil civic pride through a modern and vibrant offer.
Current offer There are six static libraries in Luton, which offer the full range of core services, and three Library Access Points, which provide access to a collection of books: Luton Central Library, St. George's Square, LUTON, LU1 2NG; Leagrave Library, Marsh Road, LUTON, LU3 2N; Marsh Farm Library, Lea Manor High School, Northwell Drive, LUTON, LU3 3TL; Lewsey Library, Landrace Road, Luton, LU4 0SW; Stopsley Library, Hitchin Road, Luton, LU2 7UG; and Bury Park Library, Bury Park Community Centre, 161 Dunstable Road, Luton, LU1 1BW. Library access points: o Hockwell Ring Community Centre o Chaul End Community Centre o Farley Community Centre
In addition, a home library service and a range of virtual resources are also available for Luton residents.
Libraries offer a wide range of services for all ages, including: safe and welcoming spaces; quality book stocks for all ages (including different languages); homework help; activities to encourage reading and cultural engagement; information for local studies; access to a PC and free online resources (including WiFi); informal learning; home library service; membership; concessions; signposting; and functional support such as photocopying. Libraries also work with partners to deliver cross-cutting objectives through different programmes and projects.
Consultation To support the development of the Strategy and to help identify what local people need, and to understand how Luton Borough Council can deliver its statutory duty of a ‘comprehensive and efficient library service’, a survey was designed to capture the views of both users and non-users: 92% of respondents to the Luton Library Needs Survey were library users. The majority were female
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(66%, n=449/681). Of those respondents that chose to declare sexuality, 93% (n=580/623) were heterosexual. When compared to the population profile of Luton, respondents were over- represented in the age groups 35-44, 45-54 and 55-64 and responses from young people were under-represented. 14% of respondents reported that they or a dependent had a disability, with 83% reporting they were personally disabled. There was a slight over-representation of ‘White- British’ at 58% (n=384/640) compared to 44.6% for Luton and an under-representation of ‘Asian/Asian British – Pakistani’ at 4% (n=26/640) compared to 14.4%.
The Library Strategy will be the driver for developing the service to ensure relevance in a digital world in a context of smaller budgets, increased partnerships, shared services and buildings and consortium working, whilst maintaining/developing a modern/high quality library service.
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Impact Table The purpose of this table is to consider the potential impact of your proposal against the Equality Act 2010 ‘protected characteristics’ and the Council’s Social, Environmental and Economic priorities.
Once you have completed this process you should have a clearer picture of any potential significant impacts1, positive, negative or neutral, on the community and/or staff as a result of your proposal. The rest of the questions on this form will help you clarify impacts and identify an appropriate action plan.
Citizens/Community Staff (for HR related issues) Protected Groups Positive Negative Neutral Positive Negative Neutral Race X X Sex X X Disability X X Sexual Orientation X X Age X X X Religion/Belief X X Gender Reassignment X X Pregnancy/Maternity X X Marriage/Civil Partnership X X (HR issues only) Care Responsibilities2 X X (HR issues only) Social & Health3 Impact on community cohesion X Impact on tackling poverty X Impact on health and wellbeing X Environment Impact on the quality of the natural X and built environment Impact on the low carbon agenda X Impact on the waste hierarchy X Economic/Business Impact on Luton’s economy and/or X businesses Impact on jobs X Impact on skills X
1 “Significant impact” means that the proposal is likely to have a noticeable effect on specific section(s) of the community greater than on the general community at large. 2 This is a Luton specific priority added to the 9 protected characteristics covered under the Equality Act and takes into account discrimination by association. 3 Full definitions can be found in section 3
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Please answer the following questions:
1. Research and Consultation
1.1. Have you made use of existing recent research, evidence and/or consultation to inform your proposal? Please insert links to documents as appropriate. Click here for local demographics and information To inform the development of a strategy for the provision of a modern library services, Luton residents were invited to give their views on purpose and quality of current library provision via a Luton Library Needs Survey.
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Integrated Impact Assessment Form (IIA)
Library Services Consultation January 2020
Background
Library services in Luton are provided by the Culture Trust Luton, with statutory library services under contractual agreement with Luton Council and discretionary library service provision funded through a donation from London Luton Airport Limited (LLAL).
Library services are provided in a range of locations, some standalone and some combined with other provision such as community centres. The estate is in need of modernisation. Library service usage has been falling and the service model has not been reviewed since the contract was awarded.
As part of the development of a strategy for the provision of modern library services to meet the needs of the population of Luton, residents were invited to give their views on purpose and quality of current library provision.
Purpose
To understand the views of Luton residents (library user and non-user) on usage of and satisfaction with current provision and to understand preferences and priority areas for future library service provision.
Methods
Data was collected via a questionnaire available through the Luton Council consultation portal. Hard copies were made available through libraries. The consultation was run for eight weeks in Autumn 2019. The questionnaires asked for quantitative data through fixed response questions, supported by qualitative feedback through free text boxes. A copy of the questionnaire is in Appendix 1.
One survey was spoiled and subsequently was excluded, all remaining questionnaire responses have been included in the analysis, regardless of degree of completion or compliance with response limitations (e.g. respondents were able to select more than the prescribed number of options).
The results were analysed through descriptive analysis of quantitative findings and thematic analysis of qualitative responses. To complete the thematic analysis, the free text comments were initially coded into recurring responses types, which were then grouped into high level themes (see appendix 2). Where possible, data is compared to known library or borough-wide baselines, to give an indication of variation or bias. Analysis was completed by Officers not directly involved in library service provision.
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1.2. Have you carried out any specific consultation with people likely to be affected by the proposal? (if yes, please insert details, links to documents as appropriate). Guidance Notes: If you have not yet undertaken any consultation you may wish to speak to the Consultation Team first as a lack of sufficient consultation could place the Council at risk of legal challenge.
Click here for the LBC Consultation Portal No consultation of the proposed Library Strategy has taken place at this time. Libraries are incredibly important, and it is important that we engage fully with communities around proposals for rationalisation or transformation of the Library Service, and that they are consulted widely, allowing reasonable time for communities to develop alternative or complementary proposals. 1.3. Have you carried out any specific consultation with citizens likely to be affected by the proposal? If yes, please insert details, links to documents, as appropriate above. Please show clearly who you consulted with, when you consulted and the outcomes from the consultation. Mitigations from consultation should be clearly shown in Action Plan at end of document. For advice and support from Consultation Team click here No consultation of the proposed Library Strategy has taken place at this time. Libraries are incredibly important, and it is important that we engage fully with communities around proposals for rationalisation or transformation of the Library Service, and that they are consulted widely, allowing reasonable time for communities to develop alternative or complementary proposals.
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Integrated Impact Assessment Form (IIA)
2. Impacts Identified
2.1. Where you have identified a positive impact, for communities or staff, please outline how these can be enhanced and maintained against each group identified. Specific actions to be detailed in action plan below. Guidance Notes: By positive impact we mean, is there likely to be a noticeable improvement experienced by people sharing a characteristic? The Luton Library Needs Survey revealed responses from young people were under-represented. However, responses revealed libraries provided an important resource for children and young people, especially for school/college study and children’s activities.
The library strategy proposes to strengthen the service offer for children and young people. However, given the low level of responses, consideration should be given on how to engage and capture the views of children and young people.
Enhancement of the digital library offer to meet the evolving needs of our communities may engage more young people in the library service.
2.2. Where you have identified a negative impact please explain the nature of this impact and why you feel the proposal may be negative. Outline what the consequences will be against each group identified. You will need to identify whether mitigation is available, what it is and how it could be implemented. Specific actions to be detailed in action plan below. Guidance Notes: By negative impact we mean is there likely to be a noticeable detrimental effect on people sharing a characteristic? The Luton Library Needs Survey revealed that when compared to the population profile of Luton, respondents were over-represented in the age groups 35-44, 45-54 and 55-64. Therefore any potential reduction or re-location of the library estate and/or access points may disproportionately affect older age groups.
One measure to mitigate this is to strategically align the re-provision and/or co-location of library services with other community services, as well as enhancing the home library service. Equally, enhancement of the digital offer will also help to mitigate, as the survey indicated difficulties with using the current systems (i.e outdates, unavailable, complex).
Enhancing the digital offer may have a detrimental impact on older age groups who do not use technology, and those experiencing digital poverty. Therefore development of the digital offer will need to ensure accessibility for all in the local population, and doesn’t risk widen inequalities.
The potential reform of libraries may negatively impact staff and volunteers. Any proposals will require consultation in accordance with appropriate policies, procedures, and litigation.
2.3. Where you have identified a neutral* impact for any group, please explain why you have made this judgement. You need to be confident that you have provided a sufficient explanation to justify this judgement. Guidance Notes: By neutral impact we mean that there will be no noticeable impact on people sharing a characteristic The library strategy should have a neutral impact on other protected groups, as current library usage is not over or under-represented by people sharing certain characteristics. Luton Borough Council’s principal objective is to maintain the quality and accessibility of the library service for all through a model that is best able to achieve this in both the short and the long term.
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Integrated Impact Assessment Form (IIA)
3. Social & Health Impacts
3.1. If you have identified an impact on community cohesion4’, tackling poverty5 or health and wellbeing6, please describe here what this may be and who or where you believe could be affected, Please also ensure that you consider any possible impacts on Looked After Children. Guidance Notes: Please use this section to describe the social and health impacts and detail any specific actions or mitigations in the action plan below.
For advice & support from the Social Justice Unit click here
For advice and support from the Public Health team click here The Library Strategy will have an overall positive impact on community cohesion and health and wellbeing through the promotion of providing safe, multipurpose community spaces which are trusted, free and open to all.
Co-locating services will enable more services to be accessed in one place, increasing convenience for residents.
Libraries working more collaboratively with partners to deliver cross-cutting objectives through different community programmes and projects will improve community cohesion.
The Library Strategy aims to deliver libraries that are able to support education, the local economy and play an important role in tackling poverty.
Access to books and the promotion of reading has a significant effect on children’s academic skills but also their mental health and wellbeing.
The library service will offer signposting to other local services to help with employment, training, and adult education opportunities.
4 is the proposal likely to have a noticeable effect on relations within and between specific section(s) of the community, neighbourhoods or areas. 5 is the proposal likely to have a noticeable effect on households that are vulnerable to exclusion, e.g. due to poverty, low income and/or in areas of high deprivation 6 Is the proposal likely to have a positive or negative impact on health inequalities, the physical or mental health and wellbeing of an individual or group, or on access to health and wellbeing services?
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Integrated Impact Assessment Form (IIA)
4. Environment Impacts
4.1. If you have identified any impacts related to the built and natural environment7, low carbon8 and waste minimisation please describe here what this may be and who or where you believe could be affected Guidance Notes: Is the proposal likely to impact on the waste hierarchy which includes issues shown in the table below:
Waste Hierarchy
For advice and support from the Strategy & Sustainability Team click here There is the potential for both positive and negative implications: - Investing in and improving existing library sites through co-location of services will make them more energy efficient than currently out-dated buildings, for example through improved insulation and instalments. Therefore the new strategy supports more efficient, sustainable and better quality estate. However, any construction involved in renovating and expanding existing sites would produce carbon emissions. As assets potentially become bigger to house more services, more energy will be required to maintain them; - Equally, any closure or relocation of library sites may require users to travel longer distances by car to access their nearest library service, which will increase emissions. Or alternatively, through an enhanced digital offer people may need to travel less by car to their physical library, thus reducing emissions. - Furthermore, increasing the home library service could have the impact of reducing the need for car-travel by residents, but simultaneously increase vehicle use for direct delivery of resources to people’s houses.
The strategy will support a minimum stance of neutral implications, and ways to mitigate will be part of the consideration of any decisions.
7 Is the proposal likely to Impact on the built and natural environment covers issues such as heritage, parks and open space, cleanliness, design, biodiversity and pollution? 8 Is the proposal likely to impact on low carbon includes issues such as use of energy, fuel and transport.
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5. Economic Impacts
5.1. If you have identified any impacts related to Luton’s economy and businesses 9, creating jobs10 or improving skill levels 11, please describe here what this may be and who or where you believe could be affected Guidance Notes: Please use this section to describe the social impacts and detail any specific actions or mitigations in the action plan below. Please detail all actions that will be taken to enhance and maintain positive impacts and to mitigate any negative impacts relating to this proposal in the table below.
For advice and support on Economic Development click here Co-location of services has the potential to reduce long-term demand against the capital budget for repairs and maintenance, which would result in efficiencies.
The new strategy supports lifelong learning and improving skill levels, for example aligning the library offer with strong outcomes to benefit community’s e.g. improving literacy in children and increasing number of trained volunteers.
The new strategy aims to deliver a library service that people want to use, ensuring value for money, maximising income generating opportunities through alignment of service, partnership working, and by attracting investment when it is appropriate to do so.
9 Is the proposal likely to impact on Luton’s economy and businesses for example by creating an opportunity to trade with the Council, support new business opportunities? 10 Is the proposal likely to impact on the creation of new jobs in the local economy? This will also link to health and well-being and the reduction of poverty in the social box. 11 There are significant skills gaps in Luton’s economy. Is the proposal likely to create opportunities for up skilling the workforce or to create apprenticeships?
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Integrated Impact Assessment Form (IIA)
Impact Enhancement and Mitigation Please detail all actions that will be taken to enhance and maintain positive impacts and to mitigate any negative impacts relating to this proposal in the table below:
Responsible Date Completed Action Deadline Intended Outcome Officer / Ongoing Ensure any NA Matthew To ensure any To be enacted proposals on the Hudson proposals for as part of the re-provision or co- transformation or library strategy location of library rationalisation of the services featuring community estate as part of any consider the value of future reform the library service; planning of the strategic alignment of Council’s services; community estate environmental impact, is appropriately and that the Council consulted upon. engage fully with communities around proposals. To ensure they are consulted widely, allowing reasonable time for communities to develop alternative or complementary proposals. Enhance home NA Matthew Notwithstanding the To be reviewed library service and Hudson/ implications of COVID- annually in digital offer, whilst Provider 19, enhancements to accordance with considering those the home library the strategy. of digital service and digital offer poverty/not features as part of the computer literate. strategy, and will enhance the service offer to users. Developments will ensure access for all in the local population, and any proposals do not risk widen inequalities. Any reform of the NA Matthew Ensure the provider To be enacted if library estate Hudson/ engages fully with staff there is any would be subject Provider on any proposals for proposal to to comprehensive the reform of the transform or staff consultation Library Service. rationalise the in accordance with library estate. the appropriate
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Integrated Impact Assessment Form (IIA) policies and litigation.
A review of the action plan will be prompted 6 months after the date of completion of this IIA.
Key Contacts Name Position Matthew Hudson Senior Integrated Commissioning Manager
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Integrated Impact Assessment Form (IIA)
Next Steps All Executive Reports, where relevant, must have an IIA attached All report authors must complete the IIA section of Executive Reports (equalities, cohesion, inclusion, health, economic, business and environment) All reports are to be forwarded to the Social Justice Unit, Legal Department, Public Health and Strategy & Sustainability Unit for sign off in time for Executive deadline On the rare occasion that the Social Justice Unit are unable to sign off the report, e.g. recommendations are in breach of legislation, a statement will be submitted by Social Justice Unit Manager or Equality and Diversity Policy Manager
Completed and signed IIA’s will be published on the internet once the democratic process is complete
Useful Documents Corporate Plan http://intranet/SupportServices/Document%20library/LBC-corporate-plan.pdf Equality Charter https://www.luton.gov.uk/Community_and_living/Lists/LutonDocuments/PDF/Social%20Justi ce/Equality%20Charter.pdf Social Justice Framework Joint Strategic Needs Assessment (JSNA)
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Appendix C
Library Services Consultation January 2020
Background Library services in Luton are provided by the Culture Trust Luton, with statutory library services under contractual agreement with Luton Council and discretionary library service provision funded through a donation from London Luton Airport Limited (LLAL).
Library services are provided in a range of locations, some standalone and some combined with other provision such as community centres. The estate is in need of modernisation. Library service usage has been falling and the service model has not been reviewed since the contract was awarded.
As part of the development of a strategy for the provision of modern library services to meet the needs of the population of Luton, residents were invited to give their views on purpose and quality of current library provision.
Purpose To understand the views of Luton residents (library user and non-user) on usage of and satisfaction with current provision and to understand preferences and priority areas for future library service provision.
Methods Data was collected via a questionnaire available through the Luton Council consultation portal. Hard copies were made available through libraries. The consultation was run for eight weeks in Autumn 2019. The questionnaires asked for quantitative data through fixed response questions, supported by qualitative feedback through free text boxes. A copy of the questionnaire at Appendix 1.
One survey was spoiled and subsequently was excluded, all remaining questionnaire responses have been included in the analysis, regardless of degree of completion or compliance with response limitations (e.g. respondents were able to select more than the prescribed number of options).
The results were analysed through descriptive analysis of quantitative findings and thematic analysis of qualitative responses. To complete the thematic analysis, the free text comments were initially coded into recurring responses types, which were then grouped into high level themes (see appendix 2). Where possible, data is compared to known library or borough-wide baselines, to give an indication of variation or bias. Analysis was completed by Officers not directly involved in library service provision.
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Main Findings In total, 751 surveys were submitted, either electronically through the Luton Council consultation portal or in paper format. The results have been analysed on all respondents, regardless of completeness, so denominators will be stated, where relevant. A full count of responses and all the free text responses are contained in appendix 3.
The majority of respondents were library users 92% (n=686/745). Very high levels of satisfaction were reported, with 83% (n=609/734) and low levels of dissatisfaction (4%, n=30/734). The majority of responses were from individuals (99%, n=736/744). The organisational responses were largely from library-associated activity, mainly literature groups (n=3/8).
Books were the most cited reason for visiting a library (45%, n=65/148) (see figure 3). The second highest theme was the digital offer (21%, n=31/148), with respondents using libraries to access IT (including printers/scanners) and the internet.
Figure 1. Reasons for using the library
4% 13%
21% Children’s Activities Books Use/borrow other resources Work/Research 10% Using internet/technology 44% Socialising 8%
The reasons for non-use included closure of local library, transportation (particularly bus fares and parking). Location was cited by 18% (n=10/55) with distance and fear/intimidation being amongst the reasons (see figure 2 and quote below), with 90% of respondents having visited a library in the last 12 months.
“Our local library is in the town and the thought of visiting there is a little frightening to be honest. I could walk but god knows who you'd come across, so I'd drive. This means paying to park. Lots of undesirables hang out in the square and we've seen all sorts of criminal activity at all times of day. Just not worth it for my toddler and me.”
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Figure 2. Reasons for non-use of library services
11% 20% Library closures 9% Transportation Accessibility Location 9% 15% Alternative book sources Opening Times 7% Digital 11% Lack of information 18%
The majority of respondents used Luton Central Library (45%, n=536/1187), followed by Leagrave (17%, n=204/1187) and Stopsley (17%, n=196/1187), as shown in Figure 3. Stopsley was comparatively over-represented when compared to footfall recorded by the library provider (17% compared to 10%). For library use outside of Luton, Bedfordshire was the most used alternative (n=17/28), as shown in table 1.
Figure 3. Respondents by library (%), compared with footfall 2018/19 60%
50%
40%
30%
20%
10%
0%
% Responses % 2018/19
Source: Culture Trust Luton
Table 1. Alternative libraries used County/Region Count Library Count London 6 Tottenham Library 1 Wood Green Library 1 British Library 2 London Westminster Library 2 Hertfordshire 4 Hertfordshire libraries 1
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County/Region Count Library Count Harpenden 1 St Albans library 1 Hatfield library 1 Bedfordshire 17 Bedford library 4 Central Bedfordshire Library 1 Flitwick library 1 Houghton Regis Library 2 Leighton Buzzard library 1 Dunstable library 4 Barton-Le-Clay 3 Toddington library 1 Cambridgeshire 1 St Neots library 1
Nearly a third of respondents (31%, n=17/55) said that improved access to libraries other than Central library would encourage greater use of library services. Creative events (15%, 8/55), such as art exhibitions or theatre productions were seen as important. Updating services in the libraries (13%, n=7/55) were the third highest reason, citing improved book selection and better facilities.
Figure 4. Reasons to encourage library use
Educational events
7% 7% Library access outside central Luton 15% Longer opening hours
31% Range of services 9% Updated services
13% Better parking 7% 11% Creative events
The highest frequency of respondents used the library weekly (48%, n=321/669), and there was significantly no preference for day of the week to attend. There was also no significant time of day for visiting expressed and most respondents expressed satisfaction with the current opening hours (83%, n=563/675). Respondents who expressed dissatisfaction with the current opening times requested longer opening (43%, n=46/107) and weekend opening (23%, n=25/107). The longer opening hours seemed to be related to wanting to use library services outside of school or work hours.
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“It is good that the Luton Central is open every day, however, I miss the longer opening hours of the branch libraries - having them closed on Sundays and some are not open everyday during the week can be problematic. It also means the Central Library is busier (especially Sundays) as it is the only one open”
As indicated by the reasons for visiting a library above, the responses for what is important in library provision included ‘borrow/return books’ (86%, n=576/670), ‘get information/advice’ (44%, n=297/675) and ‘use library computes/internet’ (41%, n=273/675) were the top 3 reasons (see figure 5).
Figure 5. Important functions of the library
When the areas of priority are compared to the reasons provided to using the library service (see figure 6), ‘borrow/return books’ are both ranked first. Although ‘get information/advice’ is seen as the second highest priority for library services, this wasn’t given as a reason for attendance by respondents. However, using the digital resources of the service and a place to study or research aligned. It is interesting to note that there is a noticeable disparity between the high ranking uses of children’s activities against a relatively low priority ranking.
Not many reasons were provided to support respondent’s choice of priority. Comments received included:
“Our local Library has been my lifeline as a single parent who is socially isolated and strapped for cash. The staff make us feel so welcome and always go above and beyond to help my boys with homework or obtain books for their hobbies. We would be lost without them. The library at Stopsley is a huge and valued part of our community.”
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“I sometimes like to just come and sit in the peace and quiet. Being surrounded by books (sometimes without reading) I find actually good for myself mentally. It's quite therapeutic.”
“I make a lot of use of the digital services the library provides, especially the ebooks, magazines and encyclopaedia Britannica subscription.”
“Place for peace and quiet”
Figure 6. Expressed priorities for services compared to reasons for library use
use WiFi attend play and learning activities for children read newspapers / magazines use photocopier / fax machine study, reference or research use library computers / internet get information / advice borrow / return books
0 1 2 3 4 5 6 7 8 9
Use Priority
22% (n=142/661) of respondents said that they came to the library for support or advice. The primary reason provided was books (21%) and were focused on book recommendations to access. The next reason was to receive community information (18%), such as information on local activities/clubs and cultural events, bus timetables to use notice boards. Support with digital resources (14%) was the next category, primarily focused with support to use the library facilities.
Figure 7. Reasons for seeking advice and guidance.
Books 7% Education 23% 14% Hobbies Community information 7% Children 11% Health and care 12% Council 2% 6% 18% Technology Career
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The most used online resource was online renewals (75%, n=309/410), followed by online reservations (58%, n=238/410) and the online catalogue (53%, n=217/410). A few respondents raised difficulties with accessing online resources, due to capability or system difficulties.
“Staff are knowledgeable about web sites and where to go for information, how to access and print off flight tickets. They understand their stock and where to find out if new books by favourite authors are available. Experienced staff are essential to the running of a professional library.”
“I am incredibly grateful for the very rich selection of e-audio books. As a parent of a young child with erratic sleeping patterns I was finding it difficult to read. In the last 12 months I have listened to more books than I would normally have read in that time from a variety of authors. I have fallen in love with some classics and discovered new genres and authors too. Thank you.”
In line with other findings, books were considered to be the most important library service (75%, n=628/722) (see figure 8), closely followed by ‘helpful and knowledgeable staff’ (71%, n=509/717).
Figure 8. Which library services were seen as important
other educational / cultural courses and… access to advice and support social and educational activities for adults activities for children to play and learn online services using self-issue and return services (258) access to good and trustworthy information ability to order books from any library in… comfortable and attractive spaces to… helpful and knowledgeable staff good selection of books
0% 20% 40% 60% 80% 100% % Respondents
“The libraries feel stuffy and old fashioned. Perhaps refurbishments and maybe even extensions would help”
“I have always found staff very helpful and friendly. Thank you for making the libraries such a warm and welcoming place.”
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Respondents were asked for any other comments or suggestions that they wished to make and these have been grouped into ‘supportive’ (see figure 9) and ‘areas for improvement’ (see figure 10). Respondents showed a clear commitment to libraries and strongly valued the staff and local proximity. Areas for improvement included noise levels, quality of building maintenance/facilities and book offer.
Figure 9. General comments and suggestions – ‘supportive’ theme
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Figure 10. General comments and suggestions – ‘areas for improvement’ theme
Demographics The majority of respondents were female (66%, n=449/681), which is higher than the Luton proportion of 49.8% (see figure 11), with two respondents selecting ‘other’ for gender. Of those respondents that chose to declare sexuality, 93% (n=580/623) were heterosexual.
Figure 11. Gender profile 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% Census Survey
Male Female
Source: Luton 2011 Census
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When compared to the population profile of Luton, respondents were over-represented in the age groups 35-44, 45-54 and 55-64 and responses from young people were under- represented.
Figure 12. Consultation age profile compared to Luton population 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 0-17 18-24 25-34 35-44 45-54 55-64 65-74 75-84 85+
Mid-year Estimate Survey
Source: Luton 2017 Mid-year estimates
Parents/guardians/carers comprised 50% (n=372/738) of respondents, with majority caring for children under the age of 12 (see figure 11). Only 12% of respondents (n=86/731) were young people, under the age of 25 years.
“I am a regular visitor. As a full time carer for my husband I find I have lots of time to read, I love reading.”
Figure 13. Parent/Guardian/Carer responsibilities
No Yes - 12+ Yes - 5-11 Yes - 0-5
NB: figures may add to more than 100% due to caring for multiple dependents
14% of respondents reported that they or a dependent had a disability, with 83% reporting they were personally disabled. The majority of disabilities reported were physical (31%) or mental/emotional health (30%) (figure 14).
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Figure 14. Reported types of disability
4% 8%
physical 8% 31% emotional/mental health hearing impaired/deaf learning 19% other Visually impaired/blind
30%
The respondents who chose to share their religious belief were largely in line with the population profile of Luton, with slightly lower proportion of Muslims of 18% (n=115/645) compared to 24.6%.
Figure 15. Declared religious belief
Jewish
Sikh
Buddhist
Hindu
Any other
Muslim
None
Christian
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
Survey Census
Source: Luton 2011 Census
For respondents who chose to share their ethnic group (see figure 16), there is a slight over- representation of ‘White- British’ at 58% (n=384/640) compared to 44.6% for Luton and an under-representation of ‘Asian/Asian British – Pakistani’ at 4% (n=26/640) compared to 14.4%; however, the small numbers concerned should be considered.
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Figure 16. Reported ethnic group
Other Asian White - Irish Other Other White Asian/Asian British - Pakistani Black/Black British - African Asian/Asian British - Bangladeshi Asian/Asian British - Indian Black/Black British - Caribbean White - British
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
Survey Census
Source: Luton 2011 Census
Limitations Completion of the questionnaire was by self-selection. This leads to inherent bias as the sample population may not fully represent the population of Luton (for example, the voice of young people was under-represented and there were significant references to library closures, two libraries closed in 2014, Wigmore and Sundon Park); the questionnaire didn’t allow distinction between parent and carer (of another adult) roles; and the questionnaire was only available in written English.
Discussion As would be expected, the importance of a good choice of books to borrow was viewed as important across every measure. Therefore, any future library strategy should ensure that access to physical books is retained. The importance of the digital offer is also a key theme that runs through both how people use library services and what is considered to be a priority for library provision.
It is clear from the free text comments that a full digital offer should include not only online resources, such as renewals or ordering and audiobooks but also hardware, including computers (and wifi), printers and scanners. A number of comments relate to difficulties with using the systems (i.e. outdated, unavailable, complex). Therefore, when developing the digital offer it is important to ensure that it is accessible for the local population.
“I don't have a computer at home so need the library computers”
School/college study was a large contributing reason for the work/research theme. When matched with children’s activities this suggests that libraries are an important resource for children and young people. The library service needs to ensure that is able to offer suitable space and supported activities for these groups. Given the low level of responses from these
Page 160 of 177 Appendix C age groups, consideration should be given to how to engage with the views of children and young people when developing the strategy.
“I introduced my 4 year old son to the library. He loves being able to read to and has just started school - I want to support his reading at home”
Good access to libraries services was frequently referred to, including: Opening hours: were generally considered to be acceptable. Evening opening would be valued, but it was stressed that reduced hours would be of concern. Some comments referred to were unclear on opening hours and changes from published times; Location: being able to walk to the local library or have access to mobile library services was highly valued. Parking costs or bus fares were repeatedly mentioned as limiting factors; Facilities: references were made to poor quality buildings, including leaking roofs and outdated facilities such as non-functional IT provision; and Having access to support and advice, on both library and non-library related matters was viewed as important. Knowledgeable staff were seen as important and valued.
In summary, library services are highly valued by those who use them. Local provision, with long opening hours and access to quality digital solutions were important. The use of libraries to study or research, as well as the link to other services or activities, and knowledgeable staff were important and valued.
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Appendix 1
Libraries Needs Survey
We are proud of our Library Service in Luton and are committed to unlocking the huge potential that libraries have to impact positively on individuals’ lives while at the same time, delivering against local and national priorities.
The Luton Library Needs Survey will provide us with information on different aspects of the Library Service, helping us to understand the needs of the communities they serve.
The purpose of this survey is to collect the views of library service users and anyone who wants to have a say about the current Library Service. Your responses will help inform decisions about the future Library Service offer.
Your feedback is important to us. All responses must be received by 22 October 2019.
Anonymity will be protected at all times. The retention period for the returned submissions is six months post end of survey, when they will be deleted.
Q1 Are you responding as an individual on behalf of an organisation Please state which organisation
Q2 Are you responding as Yes No
Q3 If you are a parent/guardian/carer, what age group(s) are your dependents? Please tick all that apply under 5's 5 – 11 12 upwards
Q4 Are you a young person (up to 25 years old)? Yes No
Q5 Do you visit libraries in Luton? Yes No Don't know If no, please tell us why
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Q6 Have you visited a library in Luton in the last 12 months? Yes No Don't know If yes, what was the reason for your visit?
Q7 Which libraries do you visit? Luton Central Library, St. George's Square, LUTON, LU1 2NG Leagrave Library, Marsh Road, LUTON, LU3 2NL Marsh Farm Library, Lea Manor High School, Northwell Drive, LUTON, LU3 3TL Lewsey Library, Landrace Road, Luton, LU4 0SW Stopsley Library, Hitchin Road, Luton, LU2 7UG Bury Park Library, Bury Park Community Centre, 161 Dunstable Road, Luton, LU1 1BW Hockwell Ring Community Centre - library access point Chaul End Community Centre - library access point Farley Community Centre - library access point Other Which other libraries do you also use?
Q8 If you don’t visit libraries what services or activities would encourage you to visit more?
Q9 How often do you use library services? daily weekly monthly yearly
Q10 Which day of the week is your preferred day to visit the library? no preference Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Q11 When in the day do you prefer to visit the library? no preference morning afternoon evening
Q12 Are the current opening times convenient for you? Yes No Don't know If no, please tell why not
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Q13 What does a library provide for you? Please select 5 most important to you A place to: borrow / return books attend social and use meeting rooms / educational activities for attend meetings adults get information / advice borrow / return DVDs attend courses / workshops study, reference or read newspapers / borrow / return research magazines audiobooks revise or do exam use library computers / use WiFi preparation/attend study internet group engage and interact with use photocopier / fax help using computers / friends or family machine attend IT course socialise/social access local / family use online databases gathering/social club history resources meet new people borrow / return music look for jobs / use CDs Jobsearch attend play and learning do homework other activities for children If other, please tell
Q14 Do you visit the library to get support or advice? Yes No Don't know If yes, what types of support or advice do you receive?
Q15 Please tell us if you use any of the following online resources? online renewals online reference library online reservations free e-book and audiobook service online catalogue other If other, please tell
Q16 Are the following services important to you? Please select 5 most important to you good selection of books access to advice and support comfortable and attractive spaces to ability to order books from any library in engage Luton access to good and trustworthy using self-issue and return services information social and educational activities for online services adults activities for children to play and learn educational / cultural courses and workshops helpful and knowledgeable staff other If other, please tell
Q17 Overall, how satisfied are you with the library service? very satisfied satisfied neither satisfied or dissatisfied dissatisfied very dissatisfied don't know
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Q18 Would you be interested in volunteering to help people in your community access a variety of library services in the future? Yes No If yes, please provide your email address Please note that Luton Council will pass on information to Luton Culture who manage the Library services on behalf of the council.
Q19 Please tell us if you have any further comments or suggestions you would like to make regarding the library service:
Demographics - optional
It's useful for us to understand who has taken part in the survey, so please can you provide some information about yourself. The following questions are optional but will help in the analysis of the feedback.
Q20 Please provide your postcode
Q21 Are you Male Female Other
Q22 Which one of the following best describes your sexuality? please tick one response only heterosexual bi-sexual lesbian other gay man
Q23 Which age group do you belong to? under18 55 - 64 18 - 24 65 – 74 25 - 34 75 - 84 35 - 44 85 and over 45 - 54
Q24 Do you have /or are you classed as having a disability? Yes No Please tell if this does apply to you and/or to your dependent(s)?
Q25 If yes, please state which of the following best describes your disability. Please tick all that apply hearing impaired/deaf emotional/mental health visually impaired/blind learning physical other If other, please specify
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Q26 Please indicate your religion/faith/belief? please tick one response only Christian Muslim Buddhist Sikh Hindu None Jewish Any other religion/faith/belief If other, please specify
Q27 Which of the following groups best describes you? Please tick one response only White - British Mixed - White and Asian Other Asian White - Irish Other Mixed Black/Black British - Caribbean White - East European Asian/Asian British - Black/Black British – Indian African Other White Asian/Asian British - Black Other Kashmiri Mixed - White and Black Asian/Asian British - Chinese - Caribbean Pakistani Mixed - White and Black Asian/Asian British - Other - African Bangladeshi
Thank you
We're committed to protecting your privacy when you use our services. We'll make sure we hold records about you (on paper and electronically) in a secure way, and we’ll only make them available to those who have a right to see them. If you want to know more about how the council keeps your data safe please see our main privacy statement at www.luton.gov.uk/privacy
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Appendix 2 Thematic Analysis
Do you visit Libraries in Luton? No Codes/Initial Thoughts Themes Library closed down Library closures (11) Lack of parking Transportation (8) High bus prices Disabled Accessibility (6) Mobility Chronic illness Young children Difficult to access Distance/location Location (10) None nearby Don’t know where Scared of journey Intimidated by students and locals Books cheap to buy Alternative book sources (4) Books at home Don’t read books Don’t enjoy reading Opening times Opening Times (5) Unable to get to one when open Download books/info online Digital offer (5) Online libraries Internet at home Outdated services Wait times too long No advertising Lack of information (6) Unaware of activities Unaware of services
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Yes Codes/Initial Thoughts Story/rhyme time Children’s Activities (19) Children’s books Summer reading challenge Sing songs Activities for children Storytime Kids Lego club Stay and play Support child in reading at home Read books Books (65) Borrow books Returning books Collect reserved books Borrow cds, cassettes etc. Use/borrow other resources (12) Audio books Magazines Read papers Help with homework Work/Research (15) Revision Studying Homework research Research Homework Find books for child College work Family history research Reference material Meet client Using online resources Using internet/technology (31) Internet Using scanner Using printer Use computers Chat Socialising (6) Meet family and friends Day out Attend book club Social activity Volunteer Knitting
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Which other libraries do you use? Initial thoughts Themes Tottenham Library (LDN) London (6) Wood Green Library (LDN) British Library (LDN) London Westminster library Hertfordshire libraries Hertfordshire (4) Harpenden St Albans library Hatfield library Bedford library Bedfordshire (10) Central Bedfordshire Library St Neots library Flitwick library Houghton Regis Library Leighton Buzzard library Dunstable library Barton-Le-Clay Toddington library
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If you don’t visit libraries what services or activities would encourage you to visit more? Initial Thoughts Themes Library run in conjunction with local schools Educational events (4) Free or reduced fee adult education courses Revision techniques for exams Classes to learn new skills Mindfulness and wellbeing sessions Library nearby (Sundon Park) Library access outside central Luton (17) One I can walk to Local library would be nice Taxis too expensive Cheaper bus fares for stay-at-home parents Open closed libraries Mobile service for outskirts of town Longer opening hours Longer opening hours (4) Later or weekend opening hours Variety of services Range of services (6) Provide BSL interpreter Advice service Genealogy assets with easy parking Coffee shops Co-working spaces Better books Updated services (7) Nicer libraries More up to date books Easy access Better parking (5) Better parking Nearby parking Art exhibitions Creative events (8) Creative Theatre productions Events Talks on local history Talks from authors Toddler based groups Activities for children (4) Play groups Dance groups for children Quiz activities with rewards
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Are the current opening times convenient for you? No (please tell why not) Initial thoughts Themes Open in evenings and Sundays Not open at weekends (25) Prefer 9am opening Saturdays Later close on Sundays Open on Sundays Does not open until 11am Mondays Not open all morning (17) 8am would be better Only open part of the morning during week Prefer mornings Interfere with school Conflicts with school/work (11) Could close later for revision Later times better for uni students Easier to drop books off after school drop off Conflicts with office hours Odd opening hours Need consistent/clear opening times (5) Never know when open Not clear when local libraries are open Can’t remember opening times during holidays Extend opening hours Longer opening hours (46) Library not open for long 9-9 Open everyday Open on Fridays Should be open 24/7 Close too early Busy town centre makes visiting difficult Busy town makes getting to library difficult Luton central busy (3) Have to plan visits around busy days
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Which reason(s) do you feel are most important to you and why? Initial Thoughts Themes Reading books Paper resources (11) Read newspapers Family history Printing Friendly, hardworking staff Support from staff (4) Finding community information Order books from other libraries Voluntary work Get recycling bags Help with homework Space to work (4) To research universities Using the space for work waiting for meetings Peace and quiet Calm environment (9) Conducive environment De-stress /mindfulness The multi-faith room Comedy show at library theatre Events (3) Watch performances Online databases Online resources (7) E and audio books Encourage children to do independent Children’s activities (3) research Lego club
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Do you visit the library to get support or advice? Yes Initial Thoughts Themes About books Books (22) Book recommendations Getting books that aren’t on shelves How to borrow books online Homework Education (11) Advice on courses References to books and note papers About books for studying Educational courses Learning a new language Hobbies Hobbies (2) Gardening magazines Info on local activities and cultural events Community information (17) Info on local clubs Community events Use notice boards Bus timetables Children’s events Children (6) School visits Info on caring for disabled and elderly Health and care (12) Books and leaflets on health Books about mental health About children Info on council services Council (7) Advice regarding electoral role Info about representative attendance Councillor meetings To pick up waste sacks Photocopying Technology (13) IT help To get voluntary job Career (7) Writing CV Careers Local job search programmes Reassurance filling in forms
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Please tell us if you use any of the following online resources Other Initial Thoughts Themes Pressreader Online reading materials (14) Online magazines Online papers To learn to read and write English Online educational tools (5) Elearning courses Theory test Family history Internet/printing Technology (4) Computers Scanners
Please tell us if you have any further comments or suggestions you would like to make regarding the library service Initial Thoughts Themes Love stopsley 7 Love local libraries Excellent local library 8 More funding needed for libraries 1 Don’t want libraries to close Ensure library continues 6 Loss of services would be loss to many people 1 Mobile library/home delivery for housebound 2 Parking is not always easy, limits use of library 1 Sad to see town hall matters invading ground and first floor 2 Excellent staff 4 Staff are viewed as vital part of libraries Staff are nice and knowledgeable 3 Staff are helpful and supportive 10 Excellent service 6 Provides an excellent service Invaluable service 4 Very satisfied with services 2 Good for small children 2 Great educational and entertainment Rhymetime is great 2 services for children Child education 4 Keep doing book adventures/certificates for children 1 Online borrowing allows frequent reading Excellent online services without worrying about fees 4 Ability to order books from London libraries 4 Not everyone has computer/internet 1
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Online courses 1 Access for all, important to community 5 Valued part of community Help with literacy 2 Addresses loneliness for adults 5 Vital for job seekers 1 Good place for advice Benefits programmes 1 Travel bookings 1 Visa forums 1 Warm and welcoming place 1 Nice environment Clean environment 1 Nice displays 2 Good new books 1 Variety of books Variety of books 3 Rich selection of audiobooks 1 Toilets in central library dirty 1 Toilets need upgrading Toilet dependent on staff 1 Toilets need upgrading, disabled loo wont lock 2 Quiet area should be closely monitored 1 Quiet areas need enforcing People use library for talking, drinking etc. 2 Ensure quiet areas are quiet 3 Limit use of phones 2 Feel stuffy and old fashioned 1 Needs updating Refurbishments and extensions would help 1 Library nicer before Luton access 1 Library catalogue is out of date 2 Libraries could support communal sharing of resources 1 More staff needed 2 More staff needed Fewer staff available 2 Not sure staff are that knowledgeable 1 Inability to deal with multiple customers at once 1 Fewer books available 2 Fewer books available Not a library anymore, not the selection of books I require 1 Books should be updated and restocked often 2 More books on fincance, sport, education 3 Do not reduce space given to adult books 2 Need scientific drawing to project monographs and scientific papers 1 Disorganised 1 Disorganised
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Books not in order 1 Papers need to be organised better 1 Library courses need better publicity 1 Needs better publicity Needs promoting on local radio 1 Outreach marketing where staff visit to inform of services 1 Make sure all activities are advertised online 1 Author and poet readings would be nice 1 More events needed Increase activities for various communities to increase integration 1 Need area for local art exhibits, 20% sale goes to library 1 More activities for under 5s 1 More activities for young children needed More activities in the summer for children 1 More baby sessions such as arts & crafts 1 Sessions focussing on early education 3-5 would be great 2 Sessions in stories 3-5 1 Sessions with songs 3-5 1 Need more children mandarin books 1 Get rid of the nasty plastic chairs 2 Better seating needed More seating 4 More comfortable seats 1 Coffee machine is too expensive, cheaper Drink facilities desired at the White House 2 Tea coffee facilities 2 Be nice to see the buffet reopen 1 Improve wifi in central library 2 Improvements to internet and technology Poor online services 1 services Need photography and photoshop facilities 1 Computers need upgrading, old and slow 1 No sound from PCs 1 Computer works but no printing service 1 Page print outs are costly 1 Increased and efficient security system 1 Security improvements needed Better security needed 1 Extended opening hours 2 Not open long enough Open Lewsley Fridays and 9am Mondays 1 Library open 24/7 1 Pictures of local councillors, MPs and MEPs Expand range of services with contact details 1
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Free board for activities in Luton, family based, community activities 1 Book drop when library is closed 1 Family history services have been moved 1
Does this apply to you and/or to your dependent(s)? Initial Thoughts Themes Me x 33 Me x 33 Me and my dependents x 3 Me and my dependents x 3 My spouse x 1 My spouse x 1 My child x 2 My child x 2
Which of the following best describes your disability? Initial Thoughts Themes Autism Fibromyalgia Asthma Vibrating colitis Mental health Bipolar Stuttering Reading glasses
Please indicate your religion/faith/belief Initial Thoughts Themes Atheist No religious beliefs Atheist Nihilist Church of England Christianity Christian-based Roman Catholic Roman Catholic Catholic Catholic Catholic Wiccan Wicca Wiccan Hoodoo Hoodoo Humanist Humanism Humanist Pantheism Pantheism
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