Against a background of global economic crisis and the Government's priority of reducing the national deficit, West Berkshire Council has outlined its budget proposals for the coming financial year. Issued on: 31 January 2012
The financial change for West Berkshire over the last 18 months is highlighted by the Government's central grant to the Council having decreased £7.5 million in three years, a £9 million increase in the cost of social care, and inflation currently running at 4.8%. This means a need for the Council to save £25 million over the next four years, including £9 million for the coming year. Its current year total budget is £125 million.
In presenting the budget proposals, Council Leader Graham Jones explained his four main priorities. These are to minimise local taxation, protect services to vulnerable people as far as possible, maintain the services everyone uses as far as possible, and help people to help themselves. Regarding the current £38 million spend on social care, it is believed this area cannot remain totally immune from savings, although those detailed here are just 1% of all savings proposed.
Councillor Jones said: "We are aiming for a realistic savings package, which includes investing in the district to support renewal and shifting the way some of our services are provided. A good example here is the expansion of our shared trading standards service with Wokingham, to include environmental health which would save £60,000 a year. We are also looking at possibilities of co-managing our country parks with voluntary conservation groups which could benefit the public and save taxpayer's money."
Of the £9m proposed savings, £3m are on staff reductions - 47 jobs on top of the 120 lost last year (10% of the workforce); £2m from services affecting vulnerable groups; and £4m across other Council services. All this was announced in November last year. Staffing reductions include, as a result of a management review, one less director and a reduction in heads of services from 17 to 13. Savings have also been made by consolidating three council office buildings into two, with running costs down £85,000 a year.
Following consultation on savings affecting vulnerable groups which was launched last November, the Council, having considered all the responses, is proposing the following changes. With a reported 40% increase in users over the past year or so the £13,000 reduction to Citizen's Advice Bureau funding should not go ahead. The reduction of grants to five other organisations should be phased over two years.This year's reduction to PALS would therefore be £1,550; A2 Dominion £1,550; Dingley £5,000; Crossroads £5,400; and Mencap £11,500. It is worth noting that, to date this year the Council has spent £801,000 with Mencap, and it gives £3m of taxpayer's money annually to the voluntary sector. The other savings proposed in November should go ahead.
The remaining £4m proposed savings would be met through a combination of reducing spending and increasing income, examples of which are as follows: Planning fees for developers and others would increase raising £400,000; there would be a £300,000 annual contribution from the Parkway developers related to parking; £192,500 would be raised by increasing the cost of collecting bulky waste (there is the option of taking it to waste and recycling centres at no charge); and there would be some increase in parking charges. Parking in the district has been pegged for the last two years. It is proposed that the one hour rate at £1 remains unchanged, the half hour 50p rate is scrapped, and longer times are increased 10p an hour. Most car parks outside Newbury would see no change. Parking charges in the town remain competitive with Reading, Swindon, Oxford and Basingstoke. There would also be a flat rate £1 charge for Sundays and evenings.
The balance of savings would be made up by a long list of smaller savings and income changes. Examples are as follows: Room hire at the Riverside Centre, Turnpike up 15p to £8; football pitch at Henwick Worthy up £1.40 to £56.20; adult swim up 15p to £3.30 and so on. Other front-line savings across service areas include reduced maintenance of highways such as drainage and footpaths saving £107,000; reduced waste services such as street cleaning and weed treatment saving £70,000; a reduction in the library stock fund saving £100,000, reduced street light inspections saving £15,000, and new opening hours at Newbury Library saving £15,000.
Considerable savings can also be made through financial management, with the following proposed: Renegotiating contracts for Connexions saving £400,000 and home to school transport £200,000; Negotiating continuing health care charges from the NHS bringing in an additional £400,000; Removing the annual contribution of £20,000 to the Newbury Town Centre Partnership because the Business Improvement District is likely to take over; and re-tendering of ICT contracts saving £81,000. There would also be a reduction in councillors' travel expenses and allowances of £8,000 a year, a reduction in the postal budget of £10,000 with limited first class and more email, recruitment advertising via websites saving a further £10,000 a year, plus many smaller amounts.
Councillor Jones added: "Last year we created the community solutions fund which is paying ongoing dividends. There has been the creation of 'Carnation Day Care' for people with dementia at Walnut Close, Thatcham and 'Interakt' art therapy for people with learning disabilities. Clay Hill residents are providing youth services in their area, and the Community Furniture Project is expanding into support of day care services.
"Importantly, this is also a budget for renewal. There will be a freeze on council tax for the second year running which means a little more money in people's pockets. We are also promoting the local credit union to help people avoid the crippling interest rates of some loan sharks. We are also investing in our future, with building projects at Denefield, Little Heath, Kintbury, the Winchcombe, and the Willows schools. And we continue to invest in infrastructure with schemes such as junction improvements at Langley Hill and Hambridge Road, new rural cycle routes, and the Newbury flood defence scheme. Pedestrianisation following the opening of Parkway has also paid off with a number of new shops opening in town.
"It is highly significant that other stakeholders are also investing in West Berkshire. John Lewis is set to open in Parkway in the spring, IKEA want to invest in the east of the district, and Network Rail plan to electrify the railway through the district.
"I am also very pleased at the partnerships we are forging with local people. For example there is the new centre at Padworth and residents have really risen to the call to recycle. We have personal budgets with residents taking responsibility for deciding their own care. Volunteers are helping to support their communities at day centres and youth centres.
"In conclusion, I believe this proposed budget recognises financial realities, renewal opportunities, and individual responsibilities. It is also a budget that balances. In these times, this has been a challenge but we've achieved it."
Removing the annual contribution of £200,000 to the Newbury Town Centre Partnership because the Business Improvement District is likely to take over;
Is our secret quango dead?
Admin note: This is a mistake, the correct figure is nearer to £20,000. They will have to find another £180,000.00 of savings somewhere else. £200,000.00 is the figure that the BID is expected to raise.
From what I hear they have been unable to stick to this year's budget and have ended up borrowing to meet the shortfall. Does this new budget mean WBC will spend less - or borrow more?
Does the actual forecast sheet get published like income against expenditure. That would identify the borrowings and also might indicate where the S106 payments are going.
No, I was trying to keep clear of parking, but now you mention it.....
Is it fair to put up parking charges in Newbury, but not in Hungerford or Thatcham? Turns out it is not only unfair, but clearly illegal.
The OFT rules on the public sector says that councils are bound by competition law where they compete with the private sector (like car parks).
Is it fair on Newbury's retailers say to introduce Sunday parking charges, but not in Hungerford?
It's a paradox though....organisations which trade unfairly or abuse their market power can be fined up to £10m and the Chief Exec gets 5 years in jail.
Anyway chaps, don't worry, the budget defecit will easily be made up by the parkway crossing fines for the confused drivers who didn't know that there was a numberplate recognition camera waiting for them as they exited.
Is it fair on Newbury's retailers say to introduce Sunday parking charges, but not in Hungerford?
Is it fair to promote the building of a new shopping centre in Newbury but not in Hungerford? Perhaps the introduction of Sunday charging is redressing the balance a tiny bit.
It's a paradox though....organisations which trade unfairly or abuse their market power can be fined up to £10m and the Chief Exec gets 5 years in jail.
I don't think WBC have anything to worry about - apart from not getting as much from parking fees as they are budgeting for.
Don't you think WBC are acting unfairly by raising the parking charges in Newbury, but not Hungerford, Thatcham, Pangbourne, Theale?
Once again, it seems we're not all in this together after all.
If parking at privately run public car parks in Newbury costs more per space on average than the other towns you mention and you say "OFT rules on the public sector says that councils are bound by competition law" then they'd legally have to charge more in Newbury, wouldn't they?
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