The Minister for Local Government, Marcus Jones, has written to the council confirming that the council’s published Efficiency Plan will be rewarded by a multi-year settlement guaranteeing levels of specific streams of government funding for Cambridge to 2019-20.
The ability to plan for four years is a massive change from previous government practice of telling councils their funding one year at a time each winter, only months before the start of the new financial year.
Whilst this simpler approach is welcomed by the council, it also reflects the reality that by 2019 the government will no longer be paying the council any core grant at all.
This will leave city finances poorer but more financially independent than they have been for over 40 years.
The multi-year settlement was introduced by government to increase local authority certainty and confidence at a time of significant local transformation and change.
The council can now expect at least the minimum stated allocation of business rates and revenue support grant this year and in 2017-18, 2018-19 and 2019-20. In return they needed to demonstrate they have a clear plan for delivering future efficiencies.
The council’s Efficiency Plan tackles the need to deliver good services with fewer resources through five complementary strands of activity:
- Transforming the way the council delivers services by focusing on what’s important to service users and delivering that well; sharing services with neighbouring councils where possible to reduce costs and to create stronger and more resilient teams.
- Reducing the number of council offices and reusing other assets, including the sale of Hobson House on St Andrews Street and redevelopment of Park Street car park.
- Developing new council businesses, including a new vehicle maintenance garage and fleet operation at Waterbeach, and ensuring all services think commercially and explore income generating opportunities.
- Investing money wisely so it does not sit in bank accounts earning very little but works to generate a better return for council tax payers. £50million has been freed up to secure more commercial property assets and to invest in housing via Cambridge City Housing Ltd, generating income for reinvestment while addressing affordable housing need
- Challenging the council’s capital programme to reduce capital commitments by over £10m and ensure those schemes that do go ahead are well planned and delivered in a timely way.
Cllr Richard Robertson, Executive Councillor for Finance and Resources, said: “We welcome the government’s acceptance of our detailed Efficiency Plan and agreement to a multi-year settlement. It confirms that the government has confidence in Cambridge City Council’s sound financial plans to 2020 and our strategic planning for the future.
“The minimum funding guarantee gives Cambridge the certainty to make decisions over the medium term. Multi-year planning is essential given the challenges of a rapidly growing city, devolution opportunities and the need to transform our delivery of services.
“Major uncertainty factors following the Brexit vote will have significant impacts on our city’s prosperity and international economy so having certainty from this four-year settlement is very welcome.”
The letter the council received from the government (attached) states that the multi-year settlement is the first step towards self-sufficient local government, including a Fair Funding Review and 100% business rates retention.
Notes:
Final details of the council’s funding package for 2017-18 will be announced in the local government finance settlement, following the Chancellor’s Autumn Statement on 23 November.
The Efficiency Plan was approved alongside the Medium Term Financial Strategy at Strategy and Resources Committee in October. Reports presented to council committees are available on the council’s website: http://democracy.cambridge.gov.uk/ieDocHome.aspx
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