BUDGET ON TRACK FOR COUNCIL TAX FREEZE

14 December 2006

Camden’s share of council tax bills is on track for no rise next year as the council’s latest budget report shows saving and spending plans will balance the books.

The latest budget proposals, agreed by the council’s executive committee on 13 December, outline progress in increasing efficiency and moving spending to the council’s priorities now, and in the long-term.

The council’s financial strategy aims to save money now and prepare the organisation for the challenges of the future. This includes catering for the demands of a growing population without the likelihood of similar rises in future government funding.

Under the latest budget proposals the council will:

Freeze Camden Council’s element of the council tax bills next year at £996.64 for a Band D property, bucking the projected national trend

Increase spending on services for residents by £10 million to £244 million, an increase of 4.3 per cent from the previous year. In addition, spending on schools will rise by £7.9 million to £119 million[1]
Save just under £8 million in employment costs – such as reducing the number of management posts and cutting out duplication of jobs in some areas by amalgamating services. In total, around 260 posts will be deleted in the next financial year[2]

Save a further £3.5 million by making the council more efficient in the way it procures services – such as ditching paper invoices and using on-line procurement and approved suppliers to buy stationery through the council’s new e-buy system.

Save around £6 million in making the services the council provides better value for money - such as saving on unnecessary and noisy 3am street cleaning in some areas and negotiating better contracts to make the most out of advertising space.

Approve fees and charges for services. This includes, in some cases, planning for future demands on services with rising costs by reducing the subsidy now to make them more affordable for the council. In some cases the proposed changes to fees and charges will bring the council’s charging policy more in line with other boroughs.
The final budget will be agreed by full council in February next year.

Cllr Keith Moffitt, Leader of Camden Council said:
“We’re making the council more efficient and taking costs out of services that don’t give residents value for their money. This means we can freeze our part of the council tax this year and prepare for the future when we expect money from government to reduce and we have to take on challenges such as a growing population.

“Change can be difficult and I’m extremely impressed with how council staff have risen to the challenge to get value for the public’s money so we can spend more on priorities. Through careful planning now we will spend over four per cent more in the next financial year. And we’ll continue to invest in the long-term in clean streets, excellent schools, and services to make Camden a borough of opportunity for both young and old.”

Deputy Leader Cllr Andrew Marshall added:
“We're very conscious that council tax is paid by people out of their post-tax income, and we’re showing that the council can provide better local services for a cheaper price tag. This budget and the associated restructuring also puts us in much better shape to avoid passing on unnecessary tax increases in the next few years, though central government funding decisions will inevitably be a factor.

“In some cases we’ll do this by procurement savings, such as around £1 million on simple things like stationery buying, so we can focus more money on important areas. So we’ll be able to spend £5 million extra on services for older people and vulnerable adults to keep up with demand, and £600,000 more on ensuring education for young people with Special Educational Need, for example.”

The latest budget projections follow the launch of a ‘better and cheaper’ efficiency programme, announced at the last executive budget meeting in October this year. The scheme aims to save the council money in the next financial year and in the future by cutting out inefficient processes and reducing spend on employment costs. Since October Camden’s Management Team have looked at all services the council provides to see whether there are better ways of delivering them at a cheaper price.

The budget proposals have been drawn up following consultation with a representative group of businesses, voluntary sector organisations and residents from the council’s citizens’ panel (Camden Talks).

Full details of the council’s budget proposals can be found at www.camden.gov.uk.

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