Budget Simulator Exercise - Findings
Argyll and Bute Council · 12 October 2023
Back to Policy and Resources Committee — 12 October 2023 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
1 ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE CUSTOMER AND SUPPORT SERVICES October 2023 BUDGET SIMULATOR EXERCISE – FINDINGS 1.0 EXECUTIVE SUMMARY 1.1 Argyll and Bute Council aims to work with, as well as for, the people of Argyll and Bute. We therefore sought the views of our citizens, via a budget simulator, on high level priorities for the council’s budget. 1.2 Overall we received nearly 400 responses, involving around 17,000 choices from communities. We also received 170 comments and suggestions, via the simulator and other routes. 1.3 This report outlines the feedback provided.
Page 2
2 ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE CUSTOMER SUPPORT SERVICES October 2023 BUDGET SIMULATOR – FINDINGS 2.0 INTRODUCTION 2.1 This report outlines feedback from local communities on their priorities for bridging a budget gap of £10 million+. 3.0 RECOMMENDATIONS 3.1 It is recommended that Councillors take into account the budget simulator results when considering and preparing the budget for 2024/25. 4.0 DETAIL Simulator exercise 4.1 To raise awareness of the financial challenges facing the council, and get high level priorities from communities, the council ran a budget simulator exercise from June to August. 4.2 The simulator provided more than 40 options to consider for reducing budget spend or increasing income. 4.3 Overall we received nearly 400 responses, from people aged 16 to 75+, from mainland and island communities, with respondents making 17,000 choices to balance budgets. 4.4 As well as via the simulator, people gave views by contacting us at planningourfuture@argyll-bute.gov.uk, and via social media. We received around 170 comments and suggestions. 4.5 Responses overall provide mixed views with services receiving support for both budget increases and decreases; with lower level areas of spend being frequently chosen for reductions but comments supporting savings from the bigger areas of spend or for income generation. 4.6 Findings are presented here for consideration in planning the budget.
Page 3
3 Findings – awareness of financial challenges 4.7 Comments reflected the considerable difficulties in balancing the budget, and support for more funding for councils. For example: no more cuts, government funding increase would be best; there should be fair funding for councils, you should campaign for more funding; are you just accepting budget cuts? Findings – raising income to balance the budget 4.8 As well as comments about campaigning for more funding, all options for raising income – through property leases, fees and charges or council tax - received support for average increases of between 4.4% and 5%. 4.9 We received a number of comments about council tax: Most were in favour of increasing council tax – let’s not sacrifice our local services; this means everyone pays a bit more for services they use; tough but do-able. Lower number saying low income families could not afford an increase or that the council tax system is outdated. 4.10 Suggestions for how the council could raise income are listed in Appendix 1. Here are recurring suggestions: Increase tax on second homes Live Argyll should be financially independent; it’s a charity and can get grants councils cannot; Share/outsource central services Tourist tax/Air bnbs tax Use buildings efficiently: switch lights/boilers off when not in use; make schools energy efficient (eg switch boilers off in summer); sell closed schools/vacant buildings. Fees – the users of services should pay for them Findings – cutting service budgets to balancing the council budget 4.11 Service options received some support for increasing their budget, and all options were chosen for budget cuts to varying degrees. 4.12 As well as making choices about individual service areas, people provided comments on cuts overall: Make cuts from the big ticket service areas Aim for a balance between cuts and income generation, protect services
Page 4
4 4.13 The order in which services were most often chosen by respondents for some level of reduction is outlined in Appendix 2. The four service areas most often allocated a budget cut are: Councillors Committee services and support to councillors HR & OD (Human Resources and Organisational Development) Corporate Communications 4.14 Additional comments on the council’s financial position, and ideas for the council and communities working together, are listed in Appendix 3. 5.0 CONCLUSION 5.1 Many people gave time and thought to this year’s budget planning process. Overall there is a wish for more funding for councils, for efficient use of the resources we have, and recognition of how difficult the situation is for councils. 5.0 IMPLICATIONS This reports sets out findings for consideration rather than decisions for action therefore there are no implications at this stage. 6.1 Policy: None 6.2 Financial: None 6.3 Legal : None 6.4 HR : None 6.5 Fairer Scotland Duty: 5.5.1 Equalities – None 5.5.2 Socio-economic Duty – None 5.5.3 Islands – None 6.6 Climate Change – None 6.7 Risk – None 6.8 Customer Service – None. For further information contact: Jane Jarvie, Communications Manager 01546 604323 David Forshaw, Finance Manager 01546 604 721 Appendices Appendix 1: Income generation support and suggestions Appendix 2: Service areas most frequently chosen for a reduction Appendix 3: Additional comments
Page 5
5 Appendix 1 – Income generation support and suggestions Service Activity Average increase allocated Rank Income Property Lease Income (£0.656m) 5.0% 1 Income Fees and Charges (£10.069m) 4.8% 2 Income Council Tax Income (£59.277m) 4.4% 3 Council tax comments summary - Increase tax – ‘let’s not sacrifice our local services’; this means everyone pays a bit more for services they use; tough but do-able. - Lower number saying lower income families could not afford an increase or that the council tax system is outdated. Suggestions for raising income – recurring - Increase tax on second homes - Make cuts from the big ticket items - Live Argyll should be financially independent; it’s a charity and can get grants councils cannot; - Share/outsource central services - Tourist tax/Air bnbs - Use buildings efficiently: switch lights/boilers off when not in use; make schools energy efficient (eg switch boilers off in summer); sell closed schools. - Fees – the users of services should pay for them Other suggestions - Efficiency – streamline processes and be more efficient with resources - Cemeteries –use wild flowering as a support for reducing current maintenance approach - Crossing patrollers – put zebra crossings at schools, and add more 20 mph zones - School transport – charge pupils using it outside their catchment area; avoid duplication with service buses - Public toilets – charge for them - Cutting and cutting isn't a viable solution. Aim for a 50:50 balance between revenue spend reduction and income generation. - Develop a commercial culture to raise income - Maximise commercial waste income - Charge for support provided in organising events
Page 6
6 Appendix 2 – Service areas most frequently chosen for a reduction Service Activity Rank Elected Members Councillors (£1.261m) 1 Legal & Reg Support Committee Services and Services to Councillors (£1.060m) 2 CSS HR & OD (£2.714m) 3 CSS Corporate Communications (£0.324m) 4 Legal & Reg Support Procurement, Commissioning and Contracts (£1.511m) 5 Commercial Services Property Services (£2.993m) 6 Legal & Reg Support Legal Services (£1.076m) 7 Legal & Reg Support Information Management (£0.239m) 8 CSS Financial Services (£4.991m) 9 DEG Community Planning and Development (£0.597m) 10 DEG Business Start-up and Support Assistance (£0.380m) 11 CSS Customer Service Centers and Registration Services (£1.553m) 12 RIS Parking (£0.400m) 13 Commercial Services Live Argyll and contributions to other privately run Leisure Facilities (£4.692m) 14 Legal & Reg Support Trading Standards and Advice Services (£0.687m) 15 RIS Fleet (£5.821m) 16 RIS Environmental Warden Services (£1.734m) 17 DEG Economic Growth and Regeneration Services (£1.372m) 18 Legal & Reg Support Health and Safety (£0.357m) 19 DEG Planning (Development Policy and Management) (£2.318m) 20 Legal & Reg Support Civil Contingencies (Emergency Planning) (£0.109m) 21 DEG Building Standards (£1.054m) 22 RIS School and Public Transport (£9.001m) 23 RIS Cemeteries and Crematorium (£1.102m) 24 RIS Parks (£1.399m) 25
Page 7
7 RIS Roads and Bridges Design (£1.077m) 26 Education Schools (excluding the cost of teachers) (£9.649m) 27 Education Early Learning and Childcare (Pre-School Age) (£7.818m) 28 RISs School Crossing Patrollers (£0.139m) 29 DEG Environmental Health and Regulatory Services (£2.046m) 30 Education Education Contribution to Special Provision outwith A&B (£1.240m) 31 CSS ICT (£4.875m) 32 Commercial Services Catering & Cleaning (predominantly within schools) (£10.333m) 33 DEG Airports (£1.324m) 34 DEG Housing Support and Homelessness (£4.647m) 35 RIS Waste Collection (£4.424m) 36 RIS Street Cleaning (£0.981m) 37 RIS Roads Maintenance (£17.603m) 38 RIS Public Toilets (£0.470m) 39 Education Children with Additional Support Needs (£6.901m) 40 RIS Coastal and Flood Protection (£0.151m) 41
Page 8
8 Appendix 3 – additional general comments Support for council funding - Campaign for more funding - Fundamental underfunding of councils by central government - Councils not receiving fair funding - Most areas in the council are under-funded - Not happy about any cuts but an overspend and government funding increase would be best. Council tax rise would be hard but doable. Recognition that the council’s position is not easy - This is very difficult; I hadn’t realised how much everything costs - What is the function of a local authority when budgets are reducing? What’s needed from you in the modern world? - Push back on roles that should be delivered by others - No easy answers, but savings can only come by tackling the big ticket items Ideas for council and communities working together - Gift public toilets to communities to run - Live Argyll to be self-financing; give halls to communities - Appeal for environmental volunteers to help with park maintenance etc - Involve the public in dealing with issues they create eg litter, or street cleaning