North Yorkshire County Council has decided this week to write to the Government to accept the offer of a four-year instead of annual financial settlement.
The Government has given councils an October deadline to develop efficiency plans to qualify for a four year instead of an annual budget settlement to aid financial planning through to 2020.
The settlement remains acutely challenging given that it represents the phased removal of the Government’s revenue support grant by 2020. However, it also offers a degree of certainty and the opportunity for contingency planning during a period of extreme uncertainty.
Given the national and global economic environment created by Brexit, the offer will form part of the Council’s prudent financial management and plan to maintain sensible levels of reserves as a buffer against unforeseen events.
“There is no doubt that even with this four-year settlement, the County Council faces some very tough challenges indeed,” said Cllr Carl Les, North Yorkshire’s Leader, after a meeting of the Council this week. “But I believe we are as well placed as any to ride the storm.
“During a recent peer review, when we were scrutinised by other local authorities, we were praised for our can-do attitude, our committed staff and for the tremendous grip on our finances. We have a prudent financial plan in place to help us through the choppy times ahead.”
To date North Yorkshire has delivered £116m savings and has firm plans for a further £36.3m. The Council has a strong track record of delivering savings in advance and has already begun to consider ways to bridge the remaining funding gap of £14m through to 2019/20. The Council has also earmarked reserves to mitigate the risk to its savings plan should these take longer to deliver or fall short of target.
By 2020 the Government will phase out Revenue Support Grant and is committed to local government retaining 100 per cent of its business rate tax. However, with control over additional tax, councils are likely to face greater financial responsibilities.
Through all of this, the County Council continues to do a good job in financial management, encouraging innovation to protect the front line.
As part of its 2020 North Yorkshire change programme the county council has moved forward with the following:
- Increased investment in highways capital improvement programmes as well as spending on highways maintenance, bucking the national trend;
- Appointed partner with Government to share nationally the Council’s high quality, innovative practice in children’s social care;
- Working with housing and district partners to extend Extra Care housing into every market town across the county. Extra Care enables people to live independently in their own homes with care and support available on site as needed;
- It is rolling out an innovative prevention service called Living Well in adult social care which is supporting older people to lead full, independent lives for as long as possible.
- The development of a commercial arm – selling high quality services to other authorities – spreading the North Yorkshire brand.
- Extending a Stronger Communities programme which supports community initiatives across the county – from youth groups to libraries, social networks for older people to breakfast clubs for farmers – helping communities to run services for themselves in imaginative and sustainable ways;
- The Council continues to spend relatively little on agency staff. For another year North Yorkshire had no agency social workers which is very rare for a local authority with many running on 20-30% agency staff.
- Continuing to reduce the cost of back office, management and administrative functions;
“We will carry on, building on our strengths and the strength of our communities”, said Cllr Les. “We have faced austerity head-on and now we will chart our way through the current uncertainty. We all have our part to play. We have much to be proud of and much to work hard for.”