Sutton Council Budget Consultation 2007/08 - Full Analysis

Below is my annotated conmmentary and analysis of the entire Council Budget options. It is unlikely that the two political parties on the Council or other media sources will provide this detailed analysis anywhere. A further paper setting out some possible options for a range of additional growth items will be published here in January


General Points

1. Despite all the hype, the level of grant, whilst tight, was in line with expectations. Sutton is a quarter of a billion pound local authority and has seen its budget increase from £134 million in 1997 to over a £250 million. An increase of £116 million in the last 10 years is well above inflation!

2. The extra ASD spending is a legitimate cost to the Dedicated Schools Grant and will impact on schools. However there are some opportunities for schools as well in this process.

3. Sutton Council Tax may well rise about 3.5% as the Lib Dems won't want to go too high with a Tory opposition going on about this single thing, without putting an alternative budget forward.

4. The GLA Precept will not go above 5% this year or next. Most extra GLA money is likely to go on extra Policing.

5. There are no proposed growth items at this stage, but look out for the overall level of contingency and balances to see how much flexibility the Council has. In the last two years, this sum has risen to nearly £10 million unallocated at the start of the financial year.


SAVINGS OPTIONS FOR CONSIDERATION 2007/08 - COMMENTARY

Notes:
The numbers after each option are:
a) 2007/08 actual saving - in many cases this will be a part year cost
b) Full year cost - presumably in 2007/08 estimated prices
c) After the factual detail on each budget option, I set out my views after the word commentary.


Adult Social Services & Housing

1 Reorganise Administrative Support and Other "Back-Office" Functions in Various Service Areas
- Secretariat 21 21
- Directorate and Management Support 22 22
- Systems and Complaints Support 24 24
- Housing Partnership Teams and Housing Centre 33 33
- Meals on Wheels Catering Contract 14 14
Commentary: Seems reasonable

2 Review Provision of Home Care Services
- Streamline management and admin function of in-house home care 100 100 service.
- Review current customs and practices around restbreaks. 60 60
- Increase proportion of care hours provided by the independent sector through "natural wastage" within the in-house service. 100 100
Commentary: This will reduce the percentage provided "in-house". Councillors may wish to ask what the percentage reduction is compared to this year and over the last 5 years?

3 Review Provision of Service to Clients with Learning Disabilities
Increase choice and independent living and reduce institutional care by 275 550 offering personalised modernised services.
Commentary: Seems reasonable as it is assumed some of this comes from the Orchard Hill process and Day Care Review.

4 Increase Charges for Meals on Wheels 25 25
Increase cost of meals from £2.70 to £3.00 and teas from £1 to £1.10, which, with likely increases in neighbouring boroughs, would still leave Sutton's prices at below the average.
Commentary: Paul Burstow as an MP used to criticise the government over rises, yet his own Council did not prioritise keeping the figure down here.

5 Changes to Care Centre Staffing 35 35
Review staff structures across care centres following implementation of reprovision programme. Commentary: Is this a good idea to reduce when we are redesigning the service? Surely we need extra capacity for a short while?

6 Review Placements Policy for Young People in Transition 25 100
Offer greater choice and support through local services to young people and their families, reduce spend on out of borough institutions.
Commentary: Seems reasonable, but some parents might not be happy.

7 Review Number of Vehicles Used by Service 64 64
By transferring responsibility for repairs and maintenance to the contractor, the service could operate with 4 fewer vehicles.
Commentary: Seems reasonable

8 Review Charging Policy for Domiciliary Intermediate Care 50 50
The proposal is to charge clients from the beginning of the period of care.
Commentary: Needs clarification on the current postion and impact on clients?

9 Reduce Pooled Budgets for Hospital Discharge 50 50
Reduce current pooled budget with health partners by £50k.
Commentary: Seems reasonable, but Councillors might want to ask for what response we have had from the Acute Trust and PCT?

Total Adult Social Services & Housing 898 1,248


Chief Executive's Group

1 Review Structure of Policy and Communications 100 100
Reduce staffing levels with the aim of streamlining service delivery.
Commentary: Seems reasonable. If the Tories were bright they would claim this as a victory and then shut Pickles up on the subject as they will need a large press unit to reassure a distrustful public if they ever secure power! However I fear hubris will triumph over common sense!!

2 Review Production of Sutton Scene Magazine
- Bring design in house. 0 12
- Introduce advertising space through increasing number of pages. 35 75
Commentary: Seems reasonable. Again if the Tories above...(ditto above item)!!

3 Review Grants to Voluntary Organisations 62 62
Reduce grant aid to the Citizens Advice Bureau and Sutton Racial Equality Council.
Commentary:
a) Even though the CAB shafted their St Helier service to keep North Cheam bureau, I would still defend their need for their current grant. Maybe the CAB will now shaft North Cheam too?
b) I suspect even the Tories might think spending some money on the SREC makes sense when the BNP got over 500 votes in St Helier and was leafleting Carshalton Central?

4 Restructure Safer Sutton Partnership Service 132 132
Reduce strategic policy function and implement changes in the way in which parks are policed.
Commentary: It would nice to have a debate and some scrutiny about this issue, rather than assume a blank cheque of a £132,000 saving at this stage! Will it be the Neighbourhood Wardens turn next?

Total Chief Executive's 329 381


Children, Young People & Learning Services

1 Review Play Service / Early Years Provision
- Transfer the operation of the Parent and Toddler group at The Grange to the voluntary sector in line with other similar groups in the area. Review current charging structure at The Grange for casual and non-booked places. 15 15
- Reduce administrative cost of the play service 37 37
- Administrative efficiencies from combining Tweeddale Play Centre with Tweeddale Children's Centre and extended services. 13 13
- Transfer Worcester Park and Culvers House out of school clubs to either schools (as part of the Extended Schools programme) or another provider. 15 15
- Streamline the range of administrative and business support provided to the Extended School Services and Early Years. 40 30
Commentary: Some of this was flagged up last year. I recall talking to Leslie Coman about it. Some ideas make practical sense, however thedanger with some of these proposals, especially the Grange, is they assume the new Childrens centres and Extended Schools will provide a full alternative, when the Council should be using its ability to subsidide to build capacity and choice into this quasi-market.

2 Review of Youth Service 90 90
Reorganise provision to allow the Youth Service to reach neglected groups in the local community rather than through the static facility at Club Constellation. Review the future of Centre 21 by providing more comprehensive activities in the context of the proposed citizenship and lifeskills centre highlighted in the Capital programme.
Commentary: Is Club Constellation being sold off and a new base being created at Centre 21 from the capital proceeds? The Centre 21 concept sound good, but its financing might be controversial?

3 Recharge the Dedicated Schools Grant in respect of increased costs in the management of permanently excluded pupils 50 50
Recharge the Dedicated Schools Grant for the increased management costs associated with the Loxley Centre Pupil Referral Unit as a result of the increase in permanently excluded pupils.
Commentary: Here we go! Having failed to take £500,000 of the Education Budget in 2002-04, they are now, with this and other items resorting to extra recharges on the Education Budget. Each one should be looked at carefully to see if it justified and explanation should be made as to why it was not done in the past?

4 Review Provision for Looked After Children 100 200
Develop the use of community-based and local services to keep more young people within the family unit or with local foster carers rather than placing them in more costly residential provision.
Commentary: Seems reasonable

5 Review Provision of Day Care and Associated Early Intervention Services for Children 50 50
Review eligibility criteria for early intervention services, continuing to prioritise those most in need and making stronger links with universal services such as the play service, children's centres and extended schools.
Commentary: The new eligibility criteria will reduce the number of children seen. Councillors may wish to ask what the current numbers are and what they will be after the change?

6 Leaving Care Team
Delete the vacant post of teacher case worker for young people leaving care. 40 40
Commentary: Seems reasonable to delete a vacancy at this stage.

7 Reorganise Administrative Support and Other 'Back Office' Functions in Various Service Areas - Special Educational Needs and Educational Psychology 22 30
- School Improvement 15 25
- School Government 0 10
- Service Management 25 25
- Policy and Research 20 20
- Children and Families 38 43
Commentary: Seems reasonable

8 Increase Income to Advice and Inspection Service 38 45
Increase fee income above inflation from consultancy services and training courses, including maximising government training funding for inspectors.
Commentary: Seems reasonable

9 Review Funding for Schools Causing Concern 50 55
Review the way funding is used, and targeted toward inspectors' and advisors time spent on providing intervention and support.
Commentary: More information on the implications of this is required?

10 Restructuring Advice and Inspection functions
Review the structure of the Integrated Support Service, Work Experience and the Education Business Partnership, and delete the vacant inspector post for Children's Workforce Development. 55 85
Commentary: Seems reasonable

11 Increase Income from Services Provided to Schools 50 50
Review charges for services to schools, and identify additional income from the sale of new services.
Commentary: Is this feasible when the ASD spedning is likely to put pressure on school budgets?

12 Recharge the costs of capital investment, for improved provision of ICT in schools, to the Dedicated Schools Grant 340 340
Charge to the Dedicated Schools Grant the prudential borrowing costs of matching the Government grant for ICT provision in schools.
Commentary: Here we go again! Is this a reasonable change?

13 Recharge Capital, Planning & Advisory staff costs to the Stanley Park High School Project 45 45
Recharge internally commissioned work on the Building Schools for the Future Pathfinder project to capital.
Commentary: Seems reasonable

Total Children, Young People and Learning Services 1,148 1,313


Environment & Leisure

1 Increase Charge for Pavement Crossing for Car Access 75 75
Increase charge by 20% to an average charge of £435.
Commentary: This is arguably discriminatory to the less well off areas of the borough with less off-street parking, who mainly have Lib Dem Councillors!! A bit tactically stupid really?

2 Review Charges for Waste Management Services
- Charge for replacement wheelie bins. 60 60
- Increase trade waste charges to incorporate Landfill Allowance Trading Scheme targets. 72 72
- Introduce tariff of charge for disposal of fridges and bulky items. 40 40
Commentary:
a) The charge for replacement wheelie bins could see bin snatching in some areas. Not very sensible.
b) The charge for disposal of fridges and bulky items is outrageous and will increase fly-tipping.

3 Review Waste Management Services
- Cease the 'Adopt-a-Bank' Scheme, which pays community groups for the maintenance of specific sites and local promotion of recycling services. 18 18
- Cease pilot household glass collection service which serves some 23,000 properties, install more glass banks at strategic neighbourhood recycling centres and review waste collection service with an intention to include glass in green wheelie bins in the future. 100 100
- Savings through reduced unauthorised use of the Re-use and Recycling centre through extra marshalling. 50 50
- Efficiency review of Waste Collection Service. 50 50
Commentary:
a) No doubt the great and good in the local green movement will lobby to keep the adopt a bank scheme. It doesn't seem a lot to spend on extra community engagement?
b) The ceasing of the glass collection will not be popular. I think bottles should go in the green bins ASAP for all areas.
c) I think we should have more details on unauthorised use. Don't we have CCTV on the site?
d) Any changes to the wheelie bin collection should in terms of less going in the brown bins should be piloted in three areas first.

4 Reorganise Administrative Support and Other 'Back-Office' Functions in Various Service Areas
- Business Services - Property Information. 38 38
- Environmental Sustainability. 45 45
- Eco-Management Audit Scheme (EMAS). 16 16
- Member and Management Support Service. 30 30
- Regulatory Services. 35 35
- Building Site Inspections 12 12
- Fleet Services 50 50
Commentary: Seems reasonable

5 Reduce Grant to Centre for Environmental Initiative (CEI) 12 22
Current grant is £27k, and used to cover administration costs.
Commentary: The Labour Group opposed this cut in the past. However CEI are now more of a national organisation with a realtively cheap lease of the Old School House in Carshalton?

6 Identify External Sources of Funding to Support Services 45 45
Seek external support for environmental sustainability and public health projects which offer positive opportunities for attracting external funding.
Commentary: Seems reasonable, but is it likely?

7 Increase Grave Charges 72 72
Increase charge by 50% to better reflect costs and continuing maintenance. Current cost of a new grave for two is £799.
Commentary: A bit of a steep rise. Useful to have comparative costs with other cemetaries?

8 Review Library Service Provision 150 150
Review staffing and media fund to secure efficiencies.
Commentary: Less books, less staff?

9 Funding of Highways Maintenance Programme 200 200
Transfer funding for major highways maintenance schemes from the revenue budget to the capital budget to recognise the scheme as an investment in the Borough's infrastructure.
Commentary: Seems reasonable in the current circumstance.

10 Review Inspection Services Council Wide 100 100
Rationalisation of "eyes and ears" services reporting defects and street problems including enviro crime, in conjunction with the Safer Sutton Partnership.
Commentary: Seems very reasonable to use our staff and the Police more effectiely. A very good idea.

11 Review Transport and Highways Function 70 70
A review to examine transport, highways and network management functions, generation of income and recruitment and retention issues.
Commentary: It would be helpful to understand what are the drivers (no pun intended) for the need for this review?

12 Use of Catering Service Reserve 90 0
Balance accumulated from previous years surpluses to assist with single status costs. No longer required for this purpose.
Commentary: Seems reasonable

Total Environment & Leisure 1,430 1,350


Resources

1 Management of Council's Debt and Cash Balances 274 74
Interest savings from restructuring Council's long term debt and improved cash flow and interest earnings.
Commentary: Seems reasonable

2 Reduce Budget for Human Resources (HR) Computer Services 17 17
Reduce running costs for HR and payroll computer system.
Commentary: Seems reasonable

3 Reorganise Finance Support Functions Following Centralisation of Service
- Streamline work of the finance service and review charges to schools and HRA 150 150
Commentary: Which means simply transferring more costs on to schools and the ALMO!

4 Reorganise Human Resources Functions Following Centralisation of Service 208 208
Streamline work of human resources service.
Commentary: Seems reasonable in view of new contract. HR is evidently setting a good example to other departments.

5 Review Postal Service 31 31
Cease all first class post, and reduce frequency of postal deliveries to some outlying buildings across the Council.
Commentary: Seems reasonable, but will it be used as an excuse in future.

6 Replace the Information Computer Technology (ICT) Managed Service Contract 111 206
Replace the current ICT managed service contract with a new 5 year contract with the incumbent supplier providing IT infrastructure services.
Commentary: Seems reasonable. Perhaps a few Topry Councillors can se if they can suggest a bigger saving?

7 Review Use of Room Hire for Meetings 60 60
Review cost of hiring external meeting rooms by making greater use of the Glastonbury Centre and provision of additional small meeting areas within Civic Offices
Commentary: Seems reasonable. Less money to be spent on the Holiday Inn?

8 Review IT Functions Following Centralisation of Service 58 58
Reduce training, general office expenses and support budgets through streamlining service provision.
Commentary: Seems reasonable. Maybe the IT department will want to start looking at Open Source and Web 2.0 applications to save money?

9 Review Car Parking Charges at Gibson Road and Times Square Car Parks 79 79
Increase cost of all day Sunday and Bank Holiday parking from 80p to £1 (both car parks). Increase charges for 1, 2, 3, 4, 5, 6 hours and daily rates by between Times Square 7% and 16% Gibson Road 5% and 25%
Commentary: Seems just about reasonable. Perhaps it could be badged as a "Green Tax" by both Lib Dems and Tories?

10 Review Charging for Residents' Visitors' Parking Vouchers 61 61
Amend from first 200 hours free to first 100 hours free and then £10 per book of 100 hours.
Commentary: Perhaps there should be some consultation on this significant change?

11 Restructure Car Parking Service 118 118
Review of staffing structure and administrative savings by increasing parking cards from a minimum purchase of £5 to £10.
Commentary: Seems reasonable

12 Review Functions of Business Service Managers 54 54
Refocus role of the managers on working with Heads of Service to identify business needs, exploitation of corporate systems and development of potential projects for decision, prioritisation and resourcing.
Commentary: But are they "pushing the envelope" on this? Doesn't sound too plain English too me?

13 Review Opening Hours of Civic Cash Hall 45 60
Revise public opening times to 9.00 - 13.00 on weekdays. Current opening times are 9.00 - 16.00, on weekdays, except Wednesdays when open from 9.30.
Commentary: At a time when many organisations are increasing hours, this does seem retrograde? It would be useful to see the hourly transaction stats?

14 Increase Income from Housing Benefit Subsidy 120 120
Efficiency gain from improved performance and rule changes.
Commentary: What impact will this have on the public as opposed to the Council?

15 Review Service Provision in Financial Services 53 53
Economies from supplies and services budgets and work on regeneration finance.
Commentary: Seems reasonable

16 New Contract for Mobile Telephony 43 43
Savings from reletting this contract.
Commentary: This will go through quietly, yet at a later point some Councillor will oppose a mobile phone mast in their ward. Let's hope they are honest with residents as to the quantity of usage by the Council.

Total Resources 1,482 1,392

COUNCIL GRAND TOTAL 5,287 5,684