Milton Keynes Council 2015/16
Budget Consultation Let’s Talk Budget
Tim Hannam – Corporate Director, Resources
Nicole Jones – Service Director, Finance & Resources
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Objectives
The aim of this session;
• To explain the financial context for Milton Keynes Council and
why we need to make significant changes
• To explain the financial impact of the draft 2015/16 Budget and
the outlook to 2020
• To highlight the ongoing budget consultation and clarify how
you can participate
• To discuss how the citizens of Milton Keynes can support the
Council in providing sustainable services
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Financial Context
• The Council continues to face significant financial challenges
over the medium term.
• Government funding has reduced by c40% from 2010-15 and
is expected to continue to reduce by up to 15% per year
• Local demographic pressures are increasing, including
unprecedented demand for social care (children’s and adults)
• Low Council Tax (0% increase for 2015/16)
• There are also a number of changes which lead to uncertainty:
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National economic outlook
Introduction of Universal Credit
Care Act
Changes to national insurance payments
2015/16 Draft Budget Summary
2015/16 Budget Pressures
£4.6m
£9.5m
£10.5m
Inflationary Pressures
Service / Corporate Pressures
Government Funding Reductions
Includes: Pay and
Contractual Inflation
Includes: Demographic,
Legislative Pressures and
Sustainability Items
Additional Council Tax Income (through forecast
property growth)
£2.6m
Savings Requirement
£22m
Savings identified:
Service Re-design - £4.5m
Overhead Reduction - £4.5m
Service Reduction - £3m
Charges to Users - £5m
Commissioning Efficiency - £5m
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Includes: Reductions in
Revenue Support Grant
Savings Delivery to Date and Future Requirements
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Savings from 2011/12 to 2014/15 = £68m
Savings in 2015/16 = £22m
Savings already identified between 2016/17 to 2019/20 = £14m
Savings yet to be identified between 2016/17 to 2019/20 = £32m
Funding gap
Original gap
£68m
Revised gap
£32m
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An increase to forecast social care demographic pressures and
deeper Government funding reductions could increase the financial
gap to £56m by 2019/20
Strategy to Address the Gap
 Cost reduction; a drive to reduce all costs associated with the
Council
 New models of service delivery; to reconsider the purpose of
the Council and to engage the public about alternative ways to
deliver and access services
 Outcomes based commissioning; working with partners, to
allow a broader approach than with current commissioning
arrangements
 Commercialisation; to increase awareness of the cost of
service delivery with the development and implementation of
new income generation ideas
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A Co-operative Council
• Milton Keynes Council is now a Co-operative Council
• Working with communities and individuals on the services
which are the most important to them
• This ethos will underpin our Community and Cultural Services
Review
– We cannot continue to deliver services as we do currently
– We need a sustainable solution, beyond 2020
– We need communities to be part of the solution
• Innovative delivery models
– Social Enterprises or staff mutual
– Partnership / community co-location / delivery
– Parish / town council-led provision
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Areas of potential interest
Areas of potential interest;
• Investment in adults (£3.2m) and children's (£1.5m) social care
• Community and Cultural Services Review
• Changes to concessionary fares and bus subsidies
• Ways that citizens can work with the Council to deliver services
differently
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Budget Consultation
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The Council’s annual Budget is the level of planned resource required to fund the
following services;
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Children’s & Education Services
Adult Social Care
Highways, Roads & Transport Services
Environment & Planning Services
Housing Services / Culture and Related Services
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Milton Keynes Council is seeking your views on it’s draft 2015/16 Budget (consultation
runs until 31st Jan).
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This feedback will inform final 2015/16 budget, which the Cabinet meeting on 9th
February recommends to full Council on the 18th February.
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The draft Budget is also subject to independent scrutiny of the all party Budget Review
Group (Oct-Feb).
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You can respond to the consultation at:
Email: letstalkbudgetmk@milton-keynes.gov.uk
Social Media: @mkcouncil #budgetMK
Website: www.milton-keynes.gov.uk/letstalkbudgetmk
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