Communities, Equality and Local Government Committee
CELG(4)-06-11 : Paper 1
Evidence paper - Local Government and Communities, Draft Budget
Allocations for 2012-13.
1. Introduction
This paper provides comments and information to the Committee regarding Local Government and Communities’ future programme budget proposals outlined within the Draft Budget which was laid on 4 October 2011. It covers those areas included in the remit of the Communities, Equality and Local Government Committee, namely communities and local government.
2. Background
Compared to indicative plans for 2012-13 published in the Final Budget 2011-12 (as restated based on the new structure in the First Supplementary Budget 2011-12), the total MEG allocation for Local Government and Communities (LGC) has decreased by £50.5m in 2012-13 and £45.5m in 2013-14. The indicative plan for 2014-15, which is published for the first time, is £5.154bn (£23.1m higher than in 2013-14). These changes are mainly due to a reduction in Transport’s non-cash budget (which provides for the depreciation and impairment of the trunk road network and reduces by £61.5m from 2012-13 onwards).
The following summary financial table shows the overall effect on the LGC Departmental Expenditure Limit (DEL) baseline budget. This does not include Annually Managed Expenditure (AME) which is outside the Welsh Assembly Government’s Departmental Expenditure Limit. The table also shows the £000 and percentage change in the budget from the previous year, and the £000 change from the previous budget (in italics).
Summary Financial Tables:
LGC MEG
£000
|
|
2011-12 |
2012-13 |
2013-14 |
2014-15 |
|
Revenue DEL |
4,834,155 |
4,842,872 |
4,897,837 |
4,920,978 |
|
£000 Change on Prior Year |
|
8,717 |
54,965 |
23,141 |
|
£000 Change on Previous Plan |
|
-50,502 |
-45,502 |
-22,361 |
|
% Change |
|
0.2% |
1.1% |
0.5% |
|
Capital DEL |
281,172 |
261,641 |
233,291 |
233,291 |
|
£000 Change on Prior Year |
|
-19,531 |
-28,350 |
0 |
|
£000 Change on Previous Plan |
|
0 |
0 |
0 |
|
% Change |
|
-6.9% |
-10.8% |
0.0% |
|
DEL Baseline |
5,115,327 |
5,104,513 |
5,131,128 |
5,154,269 |
|
£000 Change on Prior Year |
|
-10,814 |
26,615 |
23,141 |
|
£000 Change on Previous Plan |
|
-50,502 |
-45,502 |
-22,361 |
|
% Change |
|
-0.2% |
0.5% |
0.4% |
Following portfolio changes in May 2011, the LGC MEG also contains Transport budgets. Separate evidence will be provided to the Economy and Business Committee on those. As these make up the majority of LGCs capital budget and a significant part of the revenue budget, a separate table has been provided which summarises the LGC budgets excluding Transport.
LGC MEG (excluding Transport)
|
|
2011-12 |
2012-13 |
2013-14 |
2014-15 |
|
Revenue DEL |
4,397,892 |
4,410,143 |
4,463,007 |
4,485,407 |
|
£000 Change on Prior Year |
|
12,251 |
52,864 |
32,400 |
|
£000 Change on Previous Plan |
|
10,917 |
15,917 |
38,317 |
|
% Change |
|
0.3% |
1.2% |
0.7% |
|
Capital DEL |
46,775 |
43,618 |
38,942 |
38,942 |
|
£000 Change on Prior Year |
|
-3,157 |
-4,676 |
0 |
|
£000 Change on Previous Plan |
|
0 |
0 |
0 |
|
% Change |
|
-6.7% |
-10.7% |
0 |
|
DEL Baseline |
4,444,667 |
4,453,761 |
4,501,949 |
4,524,349 |
|
£000 Change on Prior Year |
|
9,094 |
48,188 |
32,400 |
|
£000 Change on Previous Plan |
|
10,917 |
15,917 |
38,317 |
|
% Change |
|
0.2% |
1.1% |
0.8% |
3. Budget Overview
Local Government and Communities contributes to a number of aims in the Programme for Government, in particular through our cross-cutting focus on strengthening public service delivery, on tackling poverty and promoting safety, and on improving the transport infrastructure which enables access to employment and underpins the quality of life of people in Wales.
Our departmental programmes support reforms to ensure effective, efficient and accessible public services that meet people’s needs. We are tackling anti-social behaviour, crime (including the fear of crime), substance misuse and working to reduce the incidence and impact of fires and other emergencies. We will seek to improve people's lives by working to reduce poverty, reduce the likelihood that people will become poor, and to help people and communities out of persistent poverty.
The additional resource funding is associated with the following expenditure programmes:
· Police Community Support Officers (PCSOs)– We have been allocated an additional £5m in 2013-14 and 2014-15 to support the delivery of an additional 500 Police Community Support Officers.
· Concessionary Fares – We have been allocated an additional £0.7m in 2014-15 for free bus travel for pensioners and disabled people and their carers.
· The pledge to increase funding for schools is met through an additional £22.4m for the Revenue Support Grant in 2014-15. This builds on the additional funding built into settlement in last year’s budget for schools. In total this will mean an additional £80m per annum for schools by 2014-15, compared to the current local government settlement.
Apart from these, budgets are either in line with previous published plans, or increase as a result of “five for a fairer future” pledges and other changes.
There are transfers into the Revenue Support Grant from 2012-13 totalling £11.1m in respect of the Strategy for Older People Grant and the First Steps Package. These will bring baselines for 2012-13 onwards into line with the 2011-12 final local government settlement. Further details will be provided when the Provisional Local Government Finance Report along with the basis of distribution are published on 18 October 2011. This will set out the amount of Revenue Support Grant the Welsh Government proposes to distribute to county and county borough councils in 2012-13 and beyond along with the basis of distribution.
In terms of revisions to revenue budgets, there are no material changes for Communities and Local Government areas of LGC. Capital budgets for the MEG remain constrained, with reductions from 2011-12 levels in line with previous published plans.
Some structural changes to the Local Government and Communities MEG have been made as part of this budget to facilitate alignment with the departmental business plan, and the bringing together of budgets which focus on local government and public services.
4. Five for a Fairer Future
We are determined to make our communities stronger and safer. We have committed to fund an additional 500 PCSOs. This will represent a significant expansion in numbers which will make a real difference to our communities. PCSOs are not a replacement for warranted police officers, they are there to complement and support existing police resources. These new officers will build upon the links between police and communities, providing visibility and reassurance and engaging with local people. They will be able to tackle the anti-social behaviour that still blights some of our communities. And they will develop the relationships that already exist between policing and other flagship Welsh Government priorities, such as Communities First.
5. Programme for Government
The Government will continue to support our most deprived areas through the next phase of the Communities First Programme. As highlighted in the "Communities First - the Future" Consultation Document (issued in July 2011), from April 2012 Communities First will focus on supporting the Government’s Anti-Poverty agenda. It will support the most disadvantaged people in our most deprived areas with the aim of alleviating persistent poverty. It will work alongside other programmes to narrow the education, skills, economic and health gaps between the most deprived and more affluent areas of Wales, and to help individuals into employment.
The Government will support action to improve public service delivery by strengthening local democracy and continuing to ensure funding settlements for local government which reflect local needs. The publication of indicative funding settlements for 2013-14 and 2014-15 will enable authorities to protect vital public services and plan for the future. There will be funding incentives for service improvement, and practical support will be provided to authorities that are not meeting expected standards. Planning and partnership arrangements will be simplified.
The Government has agreed a common footprint for public services, building on the Local Health Board and police boundaries. Standardising collaboration on common boundaries will enable and support joint working across local government, health and police services reducing complexity and providing a clear framework for collaborative working. This is particularly important with the move to implement the Simpson review and the other major reforms underway in education and social services.
A new Public Service Leadership Group will drive forward reform and a refreshed Partnership Council will provide strong governance for collaborative action to maximise efficiency and effectiveness locally, regionally and nationally.
6. Impact Assessments
In determining budget allocations, careful consideration has been given to the impact of changes on equalities. As part of last year’s budget process, we undertook a significant amount of work to assess the equality impact of the plans we published. The underlying assumptions of this year’s allocations are unaltered from last year’s plans. For example, the protection already given to local authority social care budgets takes account of this, as well as reflecting more generally the need to maintain services to the most vulnerable in society. Increases in allocations for priorities such as the free bus travel for pensioners and disabled people and their carers in 2014-15 also underline our commitment to the equalities agenda. While funding is being re-profiled within the transport budgets, and there are structural changes to local government and public services budgets, there are no potential impacts in terms of equalities. Finally, the next phase of the Communities First programme will be subject to an Equality Impact Assessment at the appropriate time.
Carl Sargeant AM
Minister for Local Government and Communities