Our budget
Council plans for tough times ahead
The financial outlook is tough and we're looking hard at everything we do. As well
as delivering some services differently, we simply won't be able to carry on doing
everything.
We're already planning ahead for the next four years. Although this coming financial
year (2010/11) will be difficult, cuts in funding from central government for the
following three years are certain.
Pressures
Already (in 2010/11) there are increasing financial pressures on the Council, including
increased costs for the protection of children following the Baby Peter case in
Haringey, how to fund the Government's 'free personal care' proposals for older
people, the cost of waste disposal, the need to cope with increasing numbers of
road potholes and inflation generally.
Although Government has given us yearly increases in funding, a history of poor financial
settlements has meant we have learnt to manage very tight budgets. We don't underestimate
the future challenge. Over the next four years, we've set ourselves a savings target
of £60 million, to help us balance our books.
Lowest council tax rise 2.7%
Our priority continues to be keeping our council tax increases as low as possible.
Over several years we have ensured that, each year, the council tax rise is lower
than the year before. This year the County Council's share of the council tax will
rise by 2.7%, as the table below shows. This increase is the lowest increase
since 1996. Council tax rise kept as low as possible
| 2006/07 |
2007/08 |
2008/09 |
2009/10 |
2010/11 |
| 4.7% |
4.3% |
3.9% |
3.5% |
2.7% |
Our spending priorities
We have to balance council tax rises with our spending priorities on services. East
Sussex has a higher proportion of people over the age of 85 than any other county,
and this will increase even more. We have targeted increased spending on Adult Social
Care and Children's Services. We have also reduced 'real terms' spending on central
services.
The County Council is very aware of the effects of the economic downturn on residents,
businesses and the services of the County Council, and is acting to minimise these
effects as far as we can. The Audit Commission (an independent watchdog) has rated
our management of resources highly, with a '3 out of 4' rating. No other county
council achieved more than a 3 rating for managing their resources.
Efficiency and value for money
Because the increases we have received in central government funding have been consistently
less than our cost increases, we have made efficiency savings to balance the budget
and maintain the quality of the essential public services we provide.
We are now required by the Government to formally report on efficiency savings in
this leaflet. For East Sussex County Council, the cumulative value of efficiency
savings achieved since 2004/05 (excluding schools) by the end of March 2010 is forecast
to total £18.945 million.
This represents £92 per average Band D council taxpayer compared to the national
average for similar authorities of £98. The cumulative efficiency savings
for the year before (2008/09) was £10.376 million.
How we performed
The Audit Commission say we are 'Performing Well', and that most council services
are 'good' and are improving things for local people. We run day-to-day business
well and plan how we spend money very well. You can see a summary of our performance
by visiting our Council Plan pages.
Building programme
During 2010/11, we plan to invest £171 million on building projects such as:
- the academies programme
- a new Bexhill High School
- a new archive
and records office 'The Keep'
- improvements to primary schools and care homes
-
the new Bexhill-Hastings link road.
Over the next five years, we have a spending programme of £437 million for
building projects around the county. To pay for this some £284 million will
need to come from government grants and other scheme-specific income. The rest of
the programme will be paid for by borrowing money and using reserves set aside in
the past for this purpose.
Our budget
The following table shows how much we plan to spend on each service this year (2010/11)
compared to last year. The increase in spending of £22.6 million is largely
due to increases in specific government grants directed to the day-to-day running
of schools and other children's services. The amount being met from increased council
tax is £6.7 million. The table also shows that £100.1 million (almost
30%) of our general funding for services comes from the Government. This funding,
known as a 'formula grant', is made up of a 'revenue support grant' and our share
of the business rates collected throughout England. The remaining £237.8 million
(almost 70%) comes from council tax.
Note 1: This includes managing property, staff, finance, insurance, audit fees, economic
development, and revenue contributions to the building programme.
Note 2: Capital financing is the yearly cost of borrowing money.
Note 3: These are payments (called levies) to the following:
- £134,000 to the Environment Agency (for flood defence)
- £246,000 to Sussex Sea Fisheries
- £80,000 to Ashdown Forest Conservators
- £460,000 in total for 2010/11.
Note 4: We have adjusted the 2009/10 figure so you can compare budgets on a like-for-like
basis. The 2009/10 budget has decreased by £51,000 due to changes to student
loans' administrative arrangements.
Where the money goes – £904.1 million
The following chart shows the percentage we plan to spend on each service this year
(2010/11).
Where the money comes from – £904.1 million
The following chart shows the percentage of income we receive this year (2010/11).
Why our spending has changed
This table shows the increase in spending between 2009/10 and 2010/11 budgets.
Contact us
To find out more about how the County Council spends your money,
phone us on 0345 60 80 190,
email finance@eastsussex.gov.uk
or visit our finances and
council tax section.
Or, write to:
The Deputy Chief Executive and
Director of Corporate Resources
East Sussex County Council
County Hall
St Anne's Crescent
Lewes
East Sussex
BN7 1UE.
East Sussex County Council