County prioritises vulnerable and voluntary sector as budget confirms 0% tax rise

20 December 2011

Kent County Council today unveiled its spending plans for the next financial year – confirming a freeze in council tax at 0% and investing millions into protecting the county’s most vulnerable residents.

The majority of frontline services have been protected as Kent County Council, the country’s largest shire authority, achieved 75% of its spending reductions without touching services that matter the most to taxpayers. This is despite having to find £97m in savings this year.

However, the budget has inevitably meant hard decisions have been made – particularly around staffing, transforming service delivery, and increasing income.

Kent County Council is now proposing a £2.2billion budget based on following priorities:

1. Protecting front services for the most vulnerable people in Kent

• Spending an additional £22million on children’s services
• Spending an additional £12million on vulnerable adults and supporting health improvements

2. Invests money into growing the local economy

• £723million investment in capital infrastructure over the next 3 years, such as:
  • £340million on schools and academies
  • £140million on roads and public transport
  • £89million on adult social care and support for the vulnerable
  • £89million on economic development and housing
  • £16million on libraries and community facilities
  • £27million on waste disposal, flood defence and environmental projects
• Help for businesses (including £40million Regional Growth Fund to support East Kent and establishment of Kent & Medway investment fund to stimulate development opportunities)
• £20million fund for superfast broadband across the county
• £34million investment in housing initiatives (including loans to make use of empty homes and help for first time buyers)
• Measures to help more young people into employment including £2million from the Kent Big Society Fund

3. Supports the voluntary sector and puts local people in control

• By protecting the amount we spend with the voluntary sector so they can compete with private sector providers (including making £3m available for Big Society Fund in loans to social enterprises) 

4. Makes more than £97m of savings/new income without cutting frontline services:

• Efficiency savings of £38million from having fewer staff, improving the way we do business and removing funding which supported time-limited projects
• Transform some of our services to save £24 million
• Use one-off funds including reserves of £6million
• Secure £16m income from health authorities to fund joint initiatives in social care, in order to reduce longer term care costs
• Increase income by £13million from additional government grants, increase charges for some services and generate more from trading services to schools and other authorities.

5. Where the £38m has been saved:

• Remove £11.4million for time-limited projects in the current budget
• Remove £7.2million from staffing budgets (£2.4million full year effect of posts already removed in 2011/12 and £4.8million from further restructures)
• Save £13.1million on contracted services
• Save £1.3million from managing our buildings more efficiently
• Save £3.1million from children’s services through enhanced prevention

All this is despite Kent County Council facing unprecedented financial pressures. The council has had to save £97million and absorbed extra spending of £87million due to factors beyond its control, including:

• Spending an additional £22million on children’s services
  • Spending an additional £12million on vulnerable adults and supporting health improvements
• £7million from rising prices
• £5million on additional spending imposed by legislation
• £5million to fund the borrowing needed to support the capital infrastructure programme
• £15million to offset the one-off use of reserves in the current year’s budget

Clearly, this has resulted in difficult choices – and like every other council, Kent County Council has had to make hard decisions over what services to deliver differently, and whether to stop some services altogether.

This has inevitably meant changes to policies or funding, including:

• £5.7million staff supporting schools, pupils and parents and the introduction of the Kent Challenge – this is in addition to the transfer of over £11million worth of additional grant funded services to schools during next year
• £4million from the Supporting People programme including reprioritising floating support, reducing housing support and staff savings
• £2million from Early Years and Childcare Services including advisory services for and management of children’s centres – the 97 centres will be retained
• £1.45million from introduction of self service into libraries and review of archives management/front line staffing in Maidstone and staff engaged in procuring stock

Leader Paul Carter said:

“This is a challenging budget in the most difficult financial times. It is focused on supporting the residents of Kent by not increasing council tax and protecting the most vulnerable and investing into our priorities of growing the economy and getting people back into work.

“Government funding has reduced again and demand and inflation pressures have increased, particularly in children and adult social services. We have made 75% of the needed savings through efficiencies, by, over three years, shedding 1500 staff posts, increasing income and improving the way we buy goods and services. Above all, this is an innovative, intelligent budget which gives taxpayers value for money in difficult times.”

John Simmonds, Cabinet Member for Finance, said:

“We have had to look very closely at our budget for next year. Additional pressures mean that we have had to make more savings than first anticipated. For example, we have put more money in to children’s social services to support vulnerable children by employing more social workers and investing in ways of helping to reduce the number of looked after children. We will invest more money into adult social care to support the elderly, those suffering dementia and people with disabilities. 

“We have also had to take in to account Government grant changes and the general rise in prices. We have been prepared for this and with good planning we have once again found room to make efficiency savings and have made sure we are still protecting those front line services needed by the Kent residents. “