Summary of Budget 2004/05

The Council’s Performance and Priorities

In December 2003 the Government updated its assessment of the services provided by the County Council to Leicestershire people. It concluded that our services, including our financial management, were still strong across the board, and that we continued to improve by addressing remaining areas of weakness.

We are continuing to strengthen our management systems to help deliver further improvements in services particularly on the key priorities set out in the Medium Term Corporate Strategy - ‘Improving Life in Leicestershire’.

We recognise the significant benefits of working in partnership with other agencies in the County, including the private sector, to deliver better services. We have made good progress in developing closer working relationships with District Councils and other public bodies in 2003. A major step towards better co-ordination of services is the agreement of a Community Strategy by the ‘Leicestershire Together’ Partnership that sets out our common objectives to improve public services. We will continue to work towards the objectives set out in the Strategy in 2004/5.

In June we will publish a more detailed report on our progress to date and our proposals for further improvements to services in the annual Best Value Performance Plan. The table below shows the current rate of progress in improving some of the most important services we provide.

The budget for 2004/05 is aimed at maintaining our current high quality services and also at making further improvements in areas we have identified as priorities.

Performance Indicators

2002/03 2003/04 2004/05

Actual Estimate Proposed Target Comparative Position

Proportion of pupils aged 11 achieving the expected standard for Mathematics, English and Science combined 81% 81% 82% aa

Proportion of pupils aged 14 achieving the expected standard for Mathematics, English and Science combined. 77% 80% 82% aa

Proportion of pupils achieving 5 or more GCSEs at grades A* - C or equivalent. 53% 55% 60% aa

Proportion of older people aged 65 or over helped to live at home. 7.60% 7.70% 7.80% a

Percentage of care leavers who are in education, training or employment at age 19. 58% 66% 71% aa

The number of visits to public libraries per 1,000 population. 4,439 4,481 4,704 X

Number of road casualties per 100,000 population killed/seriously injured. 63.4 60 55.6 aa

Vehicle crimes per 1,000 population. 12.6 11.2 11.2 a

Percentage of household waste recycled or composted. 22.50% 23.50% 28% aa

The final column (Comparative Position) shows how we compare against local authorities that are most similar to Leicestershire. The symbols mean:

aa - Our performance was in the best 25% of authorities.

a - Our performance was at, or better than, average, but not in the best 25% of authorities.

X - Our performance was worse than average.

The Budget

The County Council provides the majority of local government services to Leicestershire people. Education and Social Services account for over 80% of spending.

Planned spending is £514.4m, an increase of £32.1m (6.7%). Most of the increase is to meet higher costs of services, which have been rated as high quality by the Government, and the increasing demands for them.

The increase consists of:-	£m
Pay and price inflation	12.0
Other costs of maintaining services	21.5
Improved efficiency and other savings	-3.8
Service improvements	2.4
Total	32.1

Maintaining Services

There are greater demands for services and some costs are increasing substantially e.g. school transport, caring for older people in their own homes or nursing homes, disposing of household waste, maintaining roads and funding bus services.

Savings

Savings are being made to restrict the Council Tax increase and to fund improvements. Greater efficiency will generate £2m of cash savings in 2004/5 to keep down Council Tax with even more the following year. In addition service priorities have been reviewed to make savings e.g. the current high level of subsidy on community education will be halved over the next 2 years (£1m).

Improvements

The budget allows for some improvements to high priority services. These include:-

new facilities for people with learning disabilities
helping more older people stay at home through effective social care
extending the Leicestershire ‘Roadline’ initiative enabling people to report faults and get better attention
improvements to library buildings
improving facilities for young people
making services more accessible for people, including more ‘service shops’ in central locations and better computer access (e.government)

Council Tax

The Council Tax bill shows a 2.3% increase for the County Council. However, allowance needs to be made for the fact that the cost of the Combined Fire Authority is now a separate part of the bill, whereas it was previously part of the County Council’s budget. After adjusting for this, the County Council’s real increase is 6.4%

Government funding is important as it meets the majority (64%) of the County Council’s spending.

In Leicestershire’s case, the system means that a 1% shortfall in Government funding translates into a 3% increase in Council Tax. Government funding assumes that spending will increase by 5.6%, which is about 1% less than is needed to maintain services. If the funding from the Government had been sufficient, the Council Tax increase would be around 3%, rather than 6.4%

Help with paying your Council Tax

There are benefits available for people on low income to help pay Council Tax. Information on this, and other Council Tax discounts and exemptions, is available from your District Council.

Waste

The cost of waste disposal has increased by 40% over the last three years. More waste is being produced and disposal is more expensive. The situation will get worse in 2005 with even bigger increases in the Landfill Tax. Please help by keeping down the amount of waste you produce and by recycling whenever possible.

The cost of County Services

The planned costs of each service are shown below

2003/4 2004/5

Gross Spending £m Income £m Net Cost £m Gross Spending £m Income £m Net Cost £m

399.6 92.3 307.3 Education 427.1 101.7 325.4

144.8 45.4 99.4 Social Services 161.6 49.6 112

35.4 2.3 33.1 Highways 38.8 2.7 36.1

18.7 4.8 13.9 Waste Management 16.6 0.7 15.9

7.2 1.9 5.3 Planning and Economic Development 7.5 2.2 5.3

2.8 0.4 2.4 Recreation and Tourism 2.7 0.3 2.4

10.6 1 9.6 Libraries and Information 11.1 1.1 10

4.6 0.9 3.7 Museums and Arts 4.3 0.6 3.7

8.8 4.5 4.3 Bus & Rail Support and Concessionary Fares 7.8 2.9 4.9

3.7 0.6 3.1 Regulatory Services 4.1 0.7 3.4

17 12.1 4.9 Other Services 19 12.5 6.5

2.6 0 2.6 Environment Agency Flood Defence Levy 0.2 0 0.2

17.9 0 17.9 Combined Fire Authority Levy 0 0 0

673.7 166.2 507.5 Total cost for all services 700.8 175 525.8

2003/4 2004/5

Net Cost £m Net Cost £m

-29.6 Charges included above for use of buildings, equipment etc. -34

20.8 Capital Financing Charges 22.6

498.7 Total Spending 514.4

-0.8 Contribution to / from (-) Financial Reserves 0.2

497.9 Total Budget Requirement 514.6

-154.6 Revenue Support Grant -174.4

-163.6 National Non Domestic Rate Income -155.2

-1.2 Net Surplus on District Council Collection Funds -0.7

178.5 Amount to be met from Council Tax 184.3

The following are Leicestershire County Council department contact numbers.

Education	0116 305 6631
Social Services	0116 305 7403/4
Highways,Transportation and Waste Management	0116 305 7127
Community Services	0116 305 7372
Chief Executive’s	0116 305 6284
Resources	0116 305 7831

Useful information

If you have any questions about:

your bill; making your payment; obtaining any rebate or refund, contact your local District Council:

Blaby District Council	0116 275 0555
Charnwood Borough Council	01509 263151
Harborough District Council	01858 821100
Hinckley & Bosworth Borough Council	01455 238141
Melton Borough Council	01664 502502
North West Leicestershire District Council	01530 454545
Oadby & Wigston Borough Council	0116 288 8961

How to contact your local County Councillor:
names and telephone numbers can also be obtained from your public library or by phoning 0116 305 6002
County Council activities and the services provided contact: the Public Relations Unit 0116 305 6284
Details of the County Council’s planned spending contact: your local library/service shop and ask to see a copy of the County Council’s Budget Book or contact: Financial Services 0116 305 7626.