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Public Document Pack
Agenda
Cabinet
Date:
Monday, 15 February 2016
Time:
11.00 am
Venue:
Committee Room 1 - Civic Centre
To:
Councillors R Bright (Chair), P Cockeram, D Davies, G Giles, R Poole, J Richards,
R Truman, M Whitcutt and D Wilcox
Item
Wards Affected
1
Apologies
2
Declarations of Interest
All Wards
3
Minutes (Pages 3 - 8)
All Wards
4
2016/17 Budget & Medium Term Financial Plan (Pages 9 - 228)
All Wards
5
Strategic Equalities Plan 2016 - 20 (Pages 229 - 258)
All Wards
6
Work Programme (Pages 259 - 266)
All Wards
Contact: :
E-mail:
Date of Issue: Date Not Specified
This page is intentionally left blank
Agenda Item 3
Minutes
Cabinet
Date:
11 January 2016
Time:
11.00 am
Present:
Councillors R Bright (Chair), P Cockeram, D Davies, G Giles, R Poole,
J Richards, R Truman, M Whitcutt and D Wilcox
In Attendance:
Mr Will Godfrey ( Chief Exe cutive); Ms S Davies and Mr M Nicholson ( Staretgic
Directors)
Apologies:
See below
1
Apologies
No apologies were received. All Cabinet members were in attendance
2
Declarations of Interest
There were no declarations of interest at this stage
3
Minutes
The minutes of the meeting held on 18 December were confirmed as a true record by the
Cabinet
4
Improvement Plan 2016-2017
The Cabinet was informed that the Improvement Plan helps the Council demonstrate its
continuous improvement. The Plan contains the priority areas for improvements in service
delivery, and the tracking of various actions and measures will allow the authority to prove its
success in these areas. Every council in Wales must produce an improvement plan under
the Local Government Measure 2009. Generally, the Council produces its Improvement
Plan every year, however due to the planned elections; this Plan will span a two year time
frame.
The selection of potential priorities had been identified from the following sources:





lowest performing measures in Wales based on 14/15 data
Risk Register
Priorities in the 15/16 plan that are falling behind
Links to Single Integrated Plan
Priorities from the Council’s change programme and Medium Term Financial Plan
Consultation was undertaken on the ‘long list’ of priorities with Elected Members, Fairness
Commission, staff and the public. The Cabinet was told there had been more than 625
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participants in this consultation, an 18% increase on the responses from this exercise last
year.
Options for priorities were discussed and Cabinet considered that its preferred option was to
base the priorities on the results of the consultation. This sets the priorities as: (Corporate
Plan themes in brackets)








Supporting young people into education, employment or training (learning and working) 1st
City Regeneration and development (learning and working) 2nd
Improving Independent living for older people (caring) 3rd
Ensuring people have the right social services to meet their needs (caring) 4th
Improving educational outcomes for children (learning and working) 5th
Ensuring people have access to suitable accommodation (fairer) 6th
Preventing offending and re-offending of young people (safer) 7th
Increasing Recycling (green and healthy) 8th
Cabinet Members thanked everyone for their responses to the wide- ranging consultation.
The participation by the public and by organisations was very welcome.
The Cabinet welcomed the comments made by the Fairness Commission. There Cabinet
considered there was potential for confusion about changing targets and what could appear
as inconsistency. The Commission had picked out the inclusion of Welsh Language and
Food Safety. These were the subject of new requirements and were now included in the
priorities for improvement. It was clear that as things improve the priorities will change.
The final plan will be agreed by Council in the spring, following discussions by way of the
Scrutiny Committee.
Decisions:
To include the agreed priorities for the Improvement Plan 2016-2018, as set out above,
reflecting the results of the consultation process
5
Revenue Budget Monitoring
The Cabinet was informed that based on the November financial monitoring, the Council is
forecasted to underspend by £0.4m (September – underspend of £1.4m). The key
differences between the underspend in September reported at the November Cabinet, is that
this monitor includes a number of transfers to reserves which Cabinet are being asked to
approve, which reduces the projected underspend inclusive of the contingency to £0.4m.
The forecast prior to decisions to be made on the use of underspends is an underspend of
£2.1m, which would be £3.6m including the contingency amount.
The following transfers to reserves were agreed:
-
£1.7m to the Invest to save reserve – to replenish reduced Invest to save reserve
balances.
-
£1.5m to Capital Expenditure reserve – to fund future risks around Capital
Projects
This reduced the £3.6m underspend to £0.4m, which will provide a level of flexibility and
assurance for the remainder of the financial year for any unforeseen circumstances.
Page 4
The transfers to reserves provide the Council with a good foundation to manage risks and
challenges it faces in future years, and is a prudent use of in-year underspends to fund
these.
Generally service area budgets were on target. Social Care forecasts and delivery of cross
cutting savings continue to be a key risk, and with a further four months of the financial year
to go, these will need to be monitored closely. The deterioration in the Social Care forecast
was a concern, both in terms of reducing this year’s underspend and therefore generation of
potential one-off funds but more worrying, approval of next year’s budget and management
of next year’s budget when there will be significantly less under-spending in non-service
budgets, to mitigate.
In saying this, it is a continued overall good position at this part of the financial year and
provides a good foundation to move forward. Given the on-going risks in these forecasts and
inherent in parts of the Councils budget, Cabinet Members should ensure their service
responsibilities maintain on-going strong financial management, in particular plans are
brought forward to reduce under-spending in Social Care.
The Head of Finance confirmed that in the main, reserves were retained for specific reasons,
although there was some additional money added to the general reserve. He confirmed this
was sound financial management
The Leader thanked the First Minister and the appropriate Ministers at the Welsh
Government for listening to the Council’s submissions prior to the settlement announcement.
The budget was currently subject to wide consultation and the Council would respond to the
results of the consultation. The Chief Executive stated that he considered the decisions taken
today were important as there were significant challenges to be faced in the coming years.
The Chair mentioned the recent speech by the Chancellor which referred to the need to
continue to be prudent.
It had been disappointing that the reference to the City Region by the Chancellor had not
recognised the involvement of 10 local authorities in the City region, including Newport.
Decisions:
I.
II.
III.
IV.
V.
VI.
6
To note the current forecast position and the key risks within these at this stage
Cabinet Members, Directors & Heads of Service to maintain on-going strong financial
management, and Social Care confirm a comprehensive set of actions to reduce their
over-spending
Following the review of the Pay Reserve as agreed at the November Cabinet, to
approve the transfer of £3.5 million from the Pay Reserve to Invest to Save Reserve.
To approve the transfer of £1.5 million into the Capital Expenditure reserve for future
risks in relation to Capital Projects.
To approve the transfer of an additional £1.7 million from current underspends to
increase the Invest to save reserve to fund future Change/Efficiency Programmes,
following its use to fund the current MTRP budget process, which will reduce the level
significantly as per the report.
To approve the transfer of receipts of £500k in relation to previous capital expenditure
into the Capital Works reserve
Capital Budget Monitor and Additions
The Cabinet was informed that the changes to the capital programme identified in the report
by the Head of Finance had decreased the overall size of the remaining three year
programme by £5,633k. The changes were summarised and set out in detail in the report.
Page 5
This included:






New external grant funded schemes at £1,620,000;
An increase in S106 and other contributions at £80,000;
The use of earmarked reserve at £46,000;
A Budget increase, where previously omitted, to existing borrowing funded schemes
at £520,000;
Reduction of schemes/ removal of budget – £4,980,000;
A Re-profiling of the budget into the four year programme starting 2018/19 –
£2,919,000;
Details of the expenditure position as at December 2015 were set out in the report. These
details showed the forecast outturn position for the 2015/16 programme was estimated to be
£25,557,000. An update was also provided on the headline / high value schemes in the
programme.
The current position on capital receipts was set out in the report. The value of receipts
earmarked for use as match funding for the 21st Century Schools Programme Band A had
reached its target of £7.5m.
Cabinet Members were pleased to see the improved position in relation to slippage which
had been a matter of concern in the past.
Members expressed the importance of contractors meeting timescales. This was the subject
of discussions with Norse.
Decisions:
7
I.
To approve the additions to the Capital Programme requested in the report.
II.
To approve the re-profiled capital budgets and note the capital expenditure forecast
position as at January 2016.
III.
To note and approve the allocation of in-year capital receipts.
Council Tax Reduction Scheme
The Cabinet was informed that the Council Tax Reduction Scheme for 2016/17 updates the
scheme that was introduced on 1st April 2015. The Council is not required to consult on the
proposals of the new scheme as the amendments made are in consequence of amendments
made to the Prescribed Requirements Regulations. The local discretions that are available to
the Council will remain unchanged.
No changes to current arrangements were proposed and the Council will continue to
disregard the whole amount of War Disablement Pensions and War Widows Pensions when
calculating the income of a claimant.
If the Council did not adopt a local Scheme, the Welsh Government would impose the default
scheme. That would mean no support for War Disablement and War Widows Pensioners
Decisions:
To recommend to Council that it approves the Council Tax Reduction Scheme for 2016/17 in
accordance with the Council Tax Reduction Schemes (Prescribed Requirements and Default
Page 6
Schemes) (Wales) (Amendment) Regulations 2016 ("the Prescribed Requirements
Regulations") exercising its local discretions as indicated in the report.
8
Work Programme
The Corporate Assessment suggested to the Council that it should consider strengthening
committee work programming arrangements to ensure they are timely, meaningful,
informative, and transparent, balanced, monitored, and joined up.
In response to that suggestion, Cabinet agreed at a previous meeting that each month the
Head of Democratic Services will ask Chief Officers to update the Cabinet work programme
and this update will be reported to Cabinet each month.
An updated work programme suggested by Chief Officers was discussed. This was, of
course, a working document and will be subject to change.
Decision:
To adopt the suggested programme for update at the next meeting
9
Performance Board Minutes
The minutes of the meeting of the Performance Board held on 9 /12/ 2015 were received and
endorsed
The meeting terminated at 12.30pm
Page 7
Agenda Item 4
Report
Cabinet
Part 1
Date:
15 February 2016
Item No:
Subject
2016/17 Budget & Medium Term Financial Plan
Purpose
Cabinet is asked to consider the work completed on the change and efficiency
programme to date, the consultation feedback received on the programme and
taking a strategic and medium term view, agree:




The implementation of the full 4 year budget investments and saving
options contained within the Medium Term Financial Plan; and
The final 2 years of the Council’s 4 year Capital Programme
Fees & Charges for 2016/17
The strategic document ‘Newport 2020’ as a framework and general
basis for future service direction
Noting that these will be subject to on-going review/updating.
Cabinet also needs to agree a number of key 2016/17 budget matters, for
recommendation to full Council on the 24th February. These are:



the Council’s total revenue budget and resulting Council Tax for 2016/17
the Council’s Treasury Management Strategy
the Council’s Prudential Indicators for 2016/17, Investment Strategy and
its Minimum Revenue Provision (MRP) policy
noting that the Treasury Management & Investment strategies, MRP policies and
Prudential Indicators have been reviewed by the Council’s Audit Committee as
required by the ‘Prudential Code’ for Local Authorities.
Author
Head of Finance
Ward
General
Summary The Council has made significant improvement in how it plans its resources in the
medium term, ensuring alignment with its vision for the City, through the ‘Prospectus
For Change 2013-2017’ which underpinned it’s Medium Term Financial Plan
(MTFP) with plans to change the way services are delivered to the residents of
Newport within available resources. This resulted in a MTFP that was more or less
balanced at the outset. The worsening financial support from WG in 2015/16 and
beyond plus additional pressures on budgets now requires the delivery of significant
Page 9
further savings in order to ensure a balanced budget in the short term, and financial
sustainability of services in the medium to long term.
In line with Cabinet recommendation in February 2015, the existing approved 4 year
programme continues to be implemented, having undergone a review to re-confirm
deliverability. New change and efficiency proposals have been developed to meet
the increased challenge of 2016/17 and added to existing programme proposals.
Cabinet is recommended to take a strategic and medium term approach and
approve all the new investment and saving proposals over the life of this current
plan.
Whilst the MTFP is a four year plan, the Council is required to approve an overall
budget and resulting Council Tax level annually. Within the context of the MTFP and
the Capital Programme, Cabinet is asked to make final recommendations to the
Council on:


Proposal
the 2016/17 Council Tax and total revenue budget, resulting from the
budget proposals for 2016/17;
Treasury Management & Investment Strategies, Minimum Revenue
Provision (MRP) policy and Prudential Indicators for 2016/17.
Cabinet is requested:
Medium Term Financial Plan and Capital programme (paragraphs 4 – 12 and
55 - 69)
1.
2.
To agree the implementation of the full 4 year change and efficiency
programme, including all budget investments and saving options (Appendices 6
- 7), as summarised within the Medium Term Financial Plan (Appendix 10),and
the full 2 year Capital Programme (Appendix 8). Noting they are subject to ongoing review and updating.
To agree the fees & charges of the Council shown in Appendix 14
Overall revenue budget and resulting Council Tax 16/17 (paragraphs 13-51)
1.
2.
3.
4.
5.
6.
To note the formal consultation meetings on the budget as outlined in
paragraph 13-15 and the feedback received, shown in Appendices 1 to 4a
To note the equalities impact assessment summary on the budget proposals,
shown in Appendix 12
To note the Head of Finance’s recommendations that minimum General Fund
Balances be maintained at £5million, the confirmation of the robustness of the
estimates underlying the proposals, and the adequacy of the General Reserves
in the context of other earmarked reserves and a revenue budget contingency
of £1.5million
To note the current level of Council Tax for Newport City Council and the
monetary value of various percentage increase and how this compares to levels
of Council Tax at other Councils as shown in paragraph 51
To review changes to the draft budget proposals shown in paragraph 22, and
which are included in the list of budget investments and savings in Appendices
6&7
To recommend an overall net budget for the City Council and resulting Council
Tax to the Council, noting that a formal resolution including the Gwent Police
and Community Councils’ precepts will be presented to Council on the 24th
February.
Page 10
7.
Approve expenditure and use of the Invest to Save reserve in line with summary
shown in Appendix 13, noting they are based on detailed business cases
reviewed by Cabinet in their December 2015 meeting.
Capital programme and Capital budget & Schemes 2016/17 (paragraphs 55-69)
To agree the capital expenditure budget for 2016/17 and the following year as
shown in Appendix 8, being the final two years of the current medium term capital
programme noting that slippage on current schemes, whilst shown based on current
forecasts, will need to be confirmed in June.
Treasury Management and Annual Investment Strategies, Minimum Revenue
Provision Policies and Prudential Indicators (paragraphs 70-91)
1.
2.
3.
4.
5.
To recommend the Treasury Management Policies to Council (Appendix 9)
To recommend the Annual Investment Strategy to Council (Appendix 9)
To recommend the Council’s Counterparty list (external bodies for Council
investments) to Council (Appendix 9)
To recommend the Prudential Indicators to Council (Appendix 9)
To recommend the Minimum Revenue Provision policy to Council (Appendix 9)
Action by Head of Finance – prepare budget papers for full Council in line with
recommendations from this Cabinet
Timetable Immediate
This report was prepared after consultation with:


Corporate Directors
Heads of Law and Standards and People and Business Change
Page 11
Background
A ‘joined up approach’
1.
As in prior years, and in line with best practice for the budget setting process; we are asking
Cabinet to consider the key budget issues together and:


recommend a 2016/17 overall revenue budget and resulting Council Tax to the Council
recommend the Council’s treasury management and investment policies, plus its Prudential
Indicators to the Council
2.
In addition, we are asking Cabinet to continue to take a strategic and medium term view and
agree the implementation of the Council’s full 4 year change and efficiency programme,
including all budget investments and saving options, as summarised within the Medium Term
Financial Plan and the remaining years of the approved Capital Programme. Noting they are
subject to on-going review and updating.
3.
A key part in considering and agreeing the annual and medium term financial plan is a
consideration of key financial resilience issues and how the budget deals with its
Improvement Plans and Risks. These are considered in the report below for Cabinet’s
review.
THE MEDIUM TERM FINANCIAL PLAN
4.
The Council developed and implemented its ‘Prospectus for Change 2013-17’ in 2013, as
part of the development of the 2014/15 budget and medium term financial plan process. It
underpins the Councils MTFP and the Council’s Corporate Plan ‘Standing up for Newport’
and the document outlines a range of improvement initiatives which the Council would
implement over a 4 year period. A change and efficiency programme was developed,
supported by detailed business plans, which included the detailed change and other saving
proposals to meet the predicted financial challenges known at that time. The Prospectus and
Programme were key parts of the ‘golden thread’ that linked the Council’s vision with the
detailed change and efficiency projects and ultimately, annual service plans. The Cabinet
approved the 4 year MTFP in February 2014, including the programme of projects outlined
above, which was, more or less, balanced over the 4 years.
5.
The worsening revenue grant financial settlement from Welsh Government necessitated
significant further savings found for 2015/16 and this has continued into 2016/17, though not
at the same level. The grant funding outlook, though better than originally envisaged, will
continue to require the Cabinet to further develop its existing medium term organisational
changes and plans so that once again, the Council has an organisational plan that delivers
key services which are financially sustainable. In that respect, a document titled ‘Newport
2020’ has been finalised by officers, which, in general terms, maps out the general direction
of travel for service areas over the medium term and is shown in Appendix 15. Cabinet are
asked to endorse and approve this document as a key overarching framework for delivering
future change programmes within the Council.
6.
The medium term financial plan (MTFP) presented at Appendix 10 is the articulation of the
financial challenges and the current organisational change programmes and savings, over
the next 4 years. It includes those service changes/savings which have already been
approved for these years from the February 2015 Cabinet meeting and new proposals. As a
4 year plan, it should be noted that this document will inevitably develop and change as
assumptions are updated or confirmed for future years.
Page 12
7.
The Council financial strategy continues to be to maintain key services to the public, develop
improvements in how services are delivered and fund key priorities including city centre
regeneration.
8.
As noted above, business change/improvement and efficiency projects have been developed
over the medium term, and major projects within the change programme include:
-
Better procurement in Social Care
New Ways of Working across the Council
Moving our customers to on-line services wherever possible
Active Living / Promoting Independence within Adult Social Services
Reduced capital financing costs from re-phasing of the programme and a technical
review of our PFI funding model
- Increased income
9.
Significant one off costs will be required to implement these change and efficiency projects.
Currently costs are estimated at c£7.1 million, split between c£2.4m for the current financial
year 15/16 spend and £4.1m for the next four years to 2019/20. As further saving proposals
are developed for future years, we would expect this latter figure to increase. This total cost
projection for 16/17 onwards is made up of c£3.4m for potential redundancy/related costs
and c£0.7m other one off costs. These exclude any further project management costs which
are likely to be required. The funding of these amounts are considered at paragraph 38.
10.
The detailed assumptions used in the MTFP were noted in the September 2015 & December
2015 Cabinet meeting when the draft budget and MTFP were agreed for consultation. Since
then, the Council received its draft revenue support grant settlement for 2016/17 and the UK
Government outlined its Spending Review. In light of these, we have reviewed our reducing
WG Revenue Support Grant assumptions and changed our anticipated reductions from 2.5%
in each of the years 2017/18 and 2018/19 to 1.5% for 2017/18 and 1.25% in 2018/19. These
are based on:
- Analysis of the potential impact on Local Government funding based on work done
by the WLGA, which, under a medium and high impact scenario, saw funding
reduce by between 0.6%-2% in 17/18 and 1%-2.6% in 18/19 & 19/20
- Newport’s key demographic changes which results in better than average grant
settlements continuing
- Previous 2 year settlements
- The UK Governments Spending Review forecasts continue as outlined over the
medium term
- Known changes to the formula distribution for 2017/18 which will have an adverse
impact on urban Councils in that year
11.
There have been no further significant changes to this plan since the December 2015
meeting, other than those outlined at Paragraph 22.
12.
Cabinet is recommended to agree the implementation of the full 4 year change and efficiency
programme, including all budget investments and saving options (Appendix 6 & 7), as
summarised within the MTFP (Appendix 10), noting that it is subject to on-going review.
THE COUNCIL’S REVENUE BUDGET AND COUNCIL TAX
The draft budget and Consultation
13.
During the Summer and Autumn of 2015, Cabinet Members and Directors / Heads of Service
developed a detailed update to the existing change and efficiency programme with a range of
new proposals with associated business cases. Considerable ‘budget conversations’,
building on the extensive exercise carried out for the current year’s budget was undertaken
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14.
The resulting budget proposals agreed by Cabinet in December have been consulted on as
follows:
 With Trade Unions via the Employee Joint Liaison Group (EJLG) meetings on 14th
January 2016. The Unison and GMB unions have also separately responded with
observations. Responses are included in Appendix 1.
 With all Overview and Scrutiny Committees in their January 2016 meetings where
Members discussed the detailed change and efficiency programmes plus the
Medium Term Financial Plan. Their reports and conclusions are included in
Appendix 2.
 With the Schools’ Forum on 12th January 2016. Responses are included in Appendix
3.
 With the public. An analysis of responses is included at Appendix 4.
 The Council’s Fairness Commission. Responses are included in Appendix 4a
 With representatives from the business and voluntary sector on 4th February.
Responses are included in Appendix 1.
15.
In summary, there was general acknowledgement of the financial pressures facing the
Council. Whilst comments were made on a wide range of budget proposals, the main focus
of comments was as follows:
Unions
There was strong support for a Council Tax rise of 5% given that Newport’s Council Tax was
still one of the lowest in the UK.
Concern on the impact of the proposals on jobs and redundancies was made.
Specific concerns were raised about the various proposals linked to the young people and
youth of the city.
Given the flexibility in the budget for 2016/17, a general observation that this provided an
opportunity to minimise savings in 2016/17.
Schools’ Forum - statement
The schools forum carefully considered the Councils budgetary position for 2016/17 and
beyond and made the following comment for consideration following the consultation period:
“With regard to the Councils proposal on school overall funding, i.e. an addition to the base
of £2.3m in relation to National Insurance increases and the effects of Pay and Grading,
forum would bring to the attention of Cabinet that whilst the additions are welcome, they fail
to recognise the substantial pressures being faced by the school sector, especially with
regard to substantial demographic increases, pay awards for both teaching and non-teaching
staff, increased teacher’s pension costs, and other general inflationary increases.
There are concerns that children have one shot at an education however this budget will
deprive the children of Newport of receiving a good education and will not sustain Newport or
schools positions in their improvement tables.
With specific regard to the budget proposal to cease funding for SPLD and ALD Advisory
Services, forum appreciates that these services may be non-statutory. However they are
services which are greatly valued by schools and significantly offer children who require this
specific support greater opportunity to improve than otherwise would be the case. To
consider that schools have the capacity to absorb this type of work, when they too are facing
financial and an improvement pressures is at this time inappropriate, as there is a lack of
expertise and capacity within schools.”
Page 14
Public Consultation
There were 230 surveys completed and in these, the public were asked to give opinions on
each proposal, as they wished. Whilst there were 25 new budget saving proposals being
consulted on, only in 10 cases did most of the respondents disagree with the proposals. In all
others, making up over 60% of all the proposals, there was more agreement with the
proposals than disagreement.
The 10 areas where more respondents disagreed were in following areas:
-
Proposal EDU01, (People) – 188 respondents with 77.13% disagreement
Proposal CFS02, (People) – 150 respondents with 62.00% disagreement
Proposal STS01, (Place) – 141 respondents with 46.10% disagreement
Proposal LR02, (Corporate) – 138 respondents with 57.97% disagreement
Proposal NON005, (Non-Service) –148 respondents with 68.24% disagreement
Appendix 4 has further details of the results.
The proposed budget 2016/17
The budget
16. The starting point for the 2016/17 budget is the current year’s budget. Whilst it is a
challenging year, most services, with the exception of Social Services are currently
forecasting to operate close to or under their approved budget. Notwithstanding this, regular
budget monitoring has identified a number of base budget issues that require adjustment in
2016/17 and beyond and where required these have been included in service pressures /
investment proposals.
17.
Funding levels for Service Areas based on the draft proposals are shown in Appendix 5 with
the detailed budget investments / pressures and savings shown in Appendix 6 and 7
respectively. Proposals include c£10.4 million of budget investments / pressures over and
above the costs of inflation. The most significant area of additional expenditure are linked to:






18.
c£1,200k of funding to implement the UK Government National Living Wage policy
in 2016/17, with a further c£2,100k required thereafter to fully implement. This
relates to the Council’s external social care costs to meet their higher costs as they
implement this.
£2,800k of funding to meet the costs of increased ‘Employer National Insurance’
rates, following the UK Government policy change which stopped rebates given to
those employers with contracted out pension schemes.
£280k of funding to implement the WG Welsh Language Act standards.
£230k of funding for increased costs as capacity is increased at the Council’s Maes
Ebbw Special school.
c£360k of funding to meet adult social services demographic and transition
pressures
c£430k of additional funding for increasing children’s social care costs.
As is the case each year, the Welsh Government (WG) transfers some specific grants into
the Council’s overall grant settlement. The proposals make the assumption that these are
included in those Service Area budgets which were funded from the specific grants. This
Page 15
allows continuation of those services in the first year. Service funding levels in Appendix 5
reflect these changes.
19.
Significant specific grants are received from WG each year and at this time we still await the
finer details of funding levels for 2016/17. It is highly probable that we will see decreases in
some of these grants. It is proposed, in line with the Council’s current working policy here
that Service Areas deal with these matters with Cabinet Members in terms of identifying
issues as they become aware of them and developing necessary solutions to resolve them.
This may involve reducing / stopping services that WG specific grants no longer fund.
20.
The need to identify a significant level of savings to balance the budget, both for 2016/17 and
the next three years was recognised at the early stages of budget preparation and a robust
process has identified new savings of c£9.3m of savings over the 4 years, of which c£7m is
for 2016/17. These are in addition to already agreed savings of c£3.6m of savings over the
next 4 years, of which just under c£1.7m is for 2016/17. The savings are shown in Appendix
7
21.
The budget process does not stop and since Cabinet agreed the detailed budget proposals
for consultation in December 2015, they have been considering the responses received and
how to allocate the ‘over provision of savings’ in hand of £3,397k at that point, noting also the
medium term challenge to the budget that still exists in the future. Changes considered and
recommended are shown in the table below. A full reconciliation of the MTRP from the
original consultation budget papers is included at Appendix 11.
22.
The changes shown below are incorporated in the lists of 2016/17 investments / pressures
and savings in Appendix 6 & 7 and funding levels for services in Appendix 5 i.e. saving
items have been taken out or deferred/moved into future years as appropriate and new
budget investments added to the list, compared to the position at the draft budget stage.
Changes to MTRP (2016/17 only) following December 2016 / January 2016 Consultation
December 2015 Consultation budget
position
Remove saving No EDU01 – cease
funding for SPLD & AEN
Remove saving No STS14 – land
drainage and canal maintenance
Remove saving No CFS02 – Integrated
family support
Remove saving No CFS05 – reduce
children’s services preventions team
Remove saving No CFS06 – reduce
children’s services fostering /
placements team
Remove saving No LR02 – cease city
events
Remove saving No LR06 – city
marketing budget
Remove saving No LR11 – city tourism
Inflation
Investments
Savings
Tech
Adj
RSG/ C
Tax
GAP
£'000
£'000
£'000
£’000
£'000
£'000
(10,870)
(1,900)
(1,924)
+3,397
1,887
9,410
260
50
25
15
35
46
20
20
Remove saving No CSDI002 – reduce
customer services team
Remove saving No RIH18 – by £40K –
reduction in youth services and retain
school’s DoE capacity
Remove saving agreed at Feb 15 for
13
40
52
Page 16
Inflation
Investments
Savings
Tech
Adj
RSG/ C
Tax
GAP
£'000
£'000
£'000
£’000
£'000
£'000
CCTV involving generating additional
income – this is no longer achievable
Defer saving CFS03 – reduce children’s
social workers - to assess if current
improved staffing position and caseloads
are maintained and review Autumn 2016
Defer saving CFS01 – close Bryn Glas
residential home and sell spare beds
capacity - to allow time to assess if other
Councils buy into spare capacity, as
envisaged.
Defer saving SSA03 – LD
reassessments – as implementation is
challenging and allows more time to do
this before budget requires it to be done
Defer saving SSA10 – Telecare - as
implementation is challenging and allows
more time to do this before budget
requires it to be done.
Defer saving SSA11 – modernise
transport arrangement in adult social
care - as implementation is challenging
and allows more time to do this before
budget requires it to be done.
Defer saving PBC06 – cease general
grants to voluntary sector - to allow
more time to review alongside significant
funding also given for commissioned
services and period notice for
organisations to adjust
Defer saving STS01 – reduce
evening/Sunday bus subsidies - to allow
more time for these to become more
commercial following opening of Friar’s
Walk. Re-assess and negotiate Autumn
2016 and implement saving if usage not
increased sufficiently
Defer saving STS26 – review charging
for special collections – to allow time to
see take up at new rates and assess
saving level
Defer saving agreed at Feb 15 - Joint
Working with Social Services in respect
of out of county placements. To allow
further time for work to be done to
implement
Additional saving NON006 – this is a
reduction in the anticipated level of the
Caldicot & Wentloog Drainage Board
Levy. This is a cost reduction and will
not have an impact on service users.
New budget investment – increase
schools budgets further to recognise
significant pressure bought on by
increasing pupil numbers
New budget investment – increase
infrastructure maintenance to recognise
increased public realm schemes
144
297
531
58
104
63
52
44
43
(95)
520
350
Page 17
Inflation
Investments
Savings
Tech
Adj
RSG/ C
Tax
GAP
£'000
£'000
£'000
£’000
£'000
£'000
delivered through capital programme
which requires on-going maintenance
New budget investment – increased
funding to support recycling services as
external funding for service is reducing
New budget investment – short term
funding to tackle city centre parking
problems via investment in on-going
enforcement via Gwent Police whilst
longer term solution is investigated and
implemented.
New budget investment in Social Care
increasing costs and demography, as
reflected in the 15/16 financial position.
This has been funded from a reduction
in the Living Wage pressure, which,
following negotiations with providers, is
over provided but funds of £303k will be
re-designated into this area. Net zero
impact on financial position.
New budget investment – additional
funding to support ‘rough sleepers’ in the
city – 2 year initiative
Reclassify 1% additional council tax
increase from saving to funding
Current Budget Position
110
34
25
406
1,887
10,449
(8,647)
(406)
(1,900)
(2,330)
23.
Cabinet considered the schools’ funding position in its December meeting, noting that
additional funding of £2,520k was being invested in school’s but also the significant
budgetary pressures being faced by the school’s sector. In that respect, as shown above,
further funding of £520k is being proposed for the school’s overall budget, this being
equivalent to the value of the assessed demographic pressures on schools, resulting from
increased pupil numbers. In total, schools overall budget will increase by £3,040k, a 3.5%
increase in Council funding. In addition, whilst the values of some specific school grants
remain outstanding, the ‘School Deprivation Grant’ is known to be increasing and will affect
most, but not all, schools.
24.
As regards fees & charges, the proposed final fees/charges for 2016/17, following
consultation is shown in Appendix 14 and Cabinet are asked to agree these.
The grant settlement (RSG) and Tax Base
25.
The finance settlement from WG is important to the financial position of the Authority making
up 83% of its net budget funding. The UK Government’s Spending Review in the Autumn
2015 has meant that WG only notified Local Council’s with their draft budget settlements on
9th December 2015 and the final settlement is not due to be received until 2nd March, 2016.
For the first time, the Council’s Cabinet, like all other Welsh Council’s, will set a budget and
propose a Council Tax before the final grant settlement is known. This is entirely within their
legal powers and this therefore represents a ‘budget risk’ which requires managing. More
detail on this is included within the section on reserves below in para. 29 – 43 below.
26.
In saying this, all the relevant data required tor the final settlement was included within the
draft settlement and therefore no changes are expected from the draft settlement, though this
cannot be guaranteed. In addition, there could be further specific grants that could transfer
into the settlement and these also represent a potential risk, depending on the grants and
Page 18
+541
values transferred, though reducing the current levels of specific grants is generally
welcomed.
27.
The final budget here is therefore based on the draft RSG settlement of £209.1m, which
represents a 0.7% decrease in cash funding from the current year level, after taking account
of specific grant transfers into the settlement.
28.
The tax base is the estimated number of Band D equivalent properties within the city. As this
number increases, it generates additional income through Council Tax but a reduction is
made to the Council’s settlement from WG if any increase is disproportionate to average
increases across Wales and this adjustment is included in the draft settlement figure, as
noted above. An allowance for the increased costs of benefits is also required. For 2016/17,
the tax base is 56,145.64 (2015/16 - 55,560.04.)
General and Specific Reserves, Contingencies and Financial Risks
29.
The proposed budget incorporates a number of assumptions in terms of likely levels of
income and expenditure in future years. There are therefore inevitably a number of financial
risks inherent in the proposed budget. The key financial risks are highlighted below:
30.
Any overspend in 2015/16 over and above the revenue contingency budget would be an
issue. However, no overspend is currently forecasted and the revenue budget contingency is
not earmarked for any specific issues at this time. In saying that, there are a number of
significant base budget pressures and overspends in the current 2015/16 year and these
have been considered alongside the challenging savings targets for 2016/17. Additional
significant budget capacity has been provided where it has been deemed necessary.
31.
Saving proposals and additional income proposals in this report amount to approximately
£8.6m and will need to be delivered in order to achieve a balanced outturn for 2016/17. This
will result in implementation costs and inevitable financial risk around full delivery of all
savings. Realistic part year assumptions have been made where implementation cannot be
immediate but there is an inherent financial risk around achieving changes in time to deliver
the planned savings.
32.
Cross cutting (Council wide) saving proposals in areas of procurement, administrative
processing tasks and management/supervisory de-layering are progressing well but are
behind target in their delivery timescales. No budget adjustment to reflect this has been
made on account of progress being made in their delivery and the use of the revenue budget
contingency to offset the overspending here from late delivery.
33.
Inflationary increases in budgets have been set at a low level, consistent with most other
local authorities. Invariably, this introduces a degree of financial risk as key inflationary
pressures are not known with certainty at this time but this financial risk is no higher than in
any other year. In particular, any risk here in the area of ‘pay inflation’, being the highest risk
value potentially, is covered by the Council’s ‘Pay Reserve’
34.
In terms of any contingencies and reserves, the Head of Finance needs to review these in
their totality in conjunction with the base budget itself and the financial risks which face the
Authority. In addition, this review should incorporate a medium term view where needed and
should take into account key developments that may impact on the need for and use of one
off resources. In these respects, Cabinet will be aware that the current base budget has a
c£1.5million contingency budget.
35.
In light of the financial risks highlighted above, a robust view is being taken on managing
budget risks and protecting the financial health of the Council. In that respect, the Council’s
financial resilience is a key consideration and Appendix 13 shows the current ‘snapshot’ of
key data and information here, alongside the current position on the Council’s reserves.
Page 19
36.
The financial resilience ‘snapshot’ shows that the Council is mitigating potential risks through
a number of avenues, there are sufficient levels of general reserves discussed further below,
and there are a number of earmarked reserves which are set aside to mitigate against
specific risks such as the insurance reserve and capital expenditure reserve. There are also
earmarked reserves set aside which are set aside to fund expected future increases in costs
for projects and a reserve is set aside for the smoothing of the funding of these, the most
significant example being the Private Finance Initiative reserves. These contribute to a
strong balance sheet position that is shown in the ‘snapshot’.
37.
The Council has also been able to show strong financial control and has managed within its
budget over a number of years, despite the high level of savings. This is projected to be the
case for 2015/16 again which is summarised in the financial resilience ‘snapshot’ appendix.
38.
Specific one off costs for implementation of the change & efficiency programme will be
funded from the current Invest to Save and Pay reserve. Our forecasts indicate that there will
be sufficient funds within this reserve to meet the above one off costs over the medium term
of the current list of saving proposals here. A summary of the position is shown in Appendix
13 based on the detailed business cases for draft budget proposals agreed by Cabinet in
December 2015. Cabinet is requested to approve this expenditure, funded from the reserve,
noting it will be regularly reported to Cabinet as part of revenue budget monitoring.
39.
A ‘rule of thumb’ analysis for determining the level of general reserves suggests this is at
least 5% of net revenue expenditure (excluding schools’ budgets), unless a formal risk
assessment justifies a lower level. This implies a level of c£8.7million for Newport. However,
taking the approach outlined above:
40.
Whilst it is accepted that as significant budget reductions are made it invariably introduces
financial risks, Newport has a reputation of managing within its budget. Budget risks have
been addressed in the proposals.
41.
Protection against budget risks is provided through earmarked reserves and contingencies.
Whilst no general revenue contingency reserves are currently held (excepting the base
budget provision), the Council has a number of earmarked reserves for known but not always
easily quantifiable financial risks.
42.
In the context of the above and the financial risks inherent in the proposed budget, it is
recommended that the minimum level of general reserves remain at £5million, supported by
the base budget contingency of £1.5m. As shown in Appendix 13, the current level is higher
at £8.9m and this additional level is not considered excessive given the on-going austerity
and uncertainty on future funding, both for 2016/17 as the Council awaits the final WG grant
settlement and the medium term funding support, with no forward settlement indicated by
WG. In addition, the level is still low at this level, compared to other Council’s. The current
general reserve level of £8.9m is 3.4% of the Councils budget, which is lower in comparison
to other local authorities such as Monmouthshire (4.6%) and Caerphilly (4.5%).
43.
The base budget contingency built into the budget, alongside the level of recommended
general and earmarked reserves reflect the overall potential financial risk associated with
delivering the budget proposals in 2016/17. With general reserves, this provides sufficient
capacity to cover financial risks. In light of this approach, the Head of Finance, as part of his
S151 responsibilities, is content that the 2016/17 budget as proposed is robust.
RISK AND PERFORMANCE
44.
As part of setting the Councils budget, key consideration is given to the risks the Council
faces and the improvement objectives that the Council has put in place. The Council
maintains a corporate risk register and an Improvement Plan, this next section looks at these
Page 20
and identifies how they are dealt with currently in setting out the Councils 2016/17 and
medium term budgets.
Risk
45.
The Council maintains a corporate risk register which is regularly reviewed by the Corporate
Management Team and Cabinet, as well as the Audit Committee from a procedural/risk
management framework viewpoint. The Council’s budget strategy and MTRP framework
needs to reflect risks and incorporate appropriate financial mitigation, where required. The
table below lists the current approved corporate risks at the time of writing, though these will
be updated at the March Cabinet which will then require further on-going review from our
budget strategy viewpoint.
Table 1. Corporate Risk Register and associated financial mitigation
Risk
Financial planning mitigation
1. Legislative requirements including, but This will be assessed and budget provision
not limited to: Social Services Act,
/funding made available if deemed
Welsh Language Act and Future
essential/unavoidable
Generations Act
2. Increasing Ageing Population – puts
The MTRP has always and currently does
significant strain on services and costs reflect the demographic pressures in Social
Care budgets
3. Capacity and capability to meet the
The base budget has provision for the
councils objectives - That there are not increased costs associated with the new
skills and or capacity within the
pay/grading framework and adequate specific
workforce to deliver both operational
reserve exists to deal with one-off costs of
services and also the pace of change
equal pay settlements, pay protection and
needed to modernise services and
project cost. The Invest to Save reserve
balance the budget.
provides funding to change and modernise
services, including bringing in additional
capacity where necessary in the short term
4. Budget Challenge - That the continuing The Council has a robust business case
need for significant annual savings is
approach to service change which identifies
increasingly difficult to achieve and that impact on services.
could compromise organisational
capacity and service delivery including
statutory services
5. Safeguarding – Council
No current specific financial issue. All budget
policies/procedures may be inadequate saving proposals are supported by robust
to protect vulnerable children / adults
business plans which highlight, amongst other
things, impacts on service delivery / statutory
requirements.
6. Friars Walk – developer unable to sell / Project Governance is designed to highlight
re-finance at level required to pay back any problems early in this respect. In addition,
the Council
specific reserve has provision to cover some
losses and legal arrangements provides
adequate security against the Council loan
facility.
7. City Deal - That the SE Wales region,
No current financial issues here.
which includes Newport CC, cannot
conclude a city deal within the
timescales and as a result misses the
opportunity to secure investment to
improve economic outcomes for the
communities of the city
Page 21
In addition to considering each savings and pressure item in respect of achievability, a number of
additional specific or general Council risks exist. These include:
Table 2 – Other significant risks identified
Risk
The need to deliver significant levels of
savings during a period of
prolonged financial austerity particularly
given the impact that delays to delivery of
the proposal has on the budget monitoring
position.
Robust business cases to support saving proposals
Appropriate budget strategy to deal with the ongoing challenges
Base budget contingency to protect the core budget
in s/t
Robust financial monitoring and on-going review on
the delivery of savings
The cumulative impact of achieving the
savings, within this current year’s budget
in addition to the unachieved 2014/15
savings which remain to be
realised in 2015/16
The Council’s ability to meet the costs of
change e.g. voluntary severance,
The level of additional borrowing
undertaken in previous years and proposed
will require more revenue resources to be
used for capital
financing in future years.
The impact on Newport Bus, which is wholly
owned by the Council, from challenging
trading conditions and issues such as
reductions to the reimbursement
rate in respect of concessionary fares.
The risk of WG levying fines if the Council
fails to realise recycling or land fill diversion
rates
The potential for the Council to receive less
than the budgeted sum in respect of
Outcome Agreement Grant either due to
performance shortfalls or statutory
interventions
The impact of the on-going uncertainty in
respect of the outcome of local government
reorganisation.
46.
Financial planning mitigation
Robust financial monitoring and on-going review on
the delivery of savings
Base budget contingency to protect the core budget
in s/t
Established Invest to Save reserve in place and
processes to access funds from there to support
delivery of MTRP savings
Unavoidable risk based on historical spending
Low interest rates provides some mitigation in that
cost of borrowing is relatively cheap
Review of capital programme and funding sources,
including maximising capital receipts
Good governance arrangements – Board of
Directors includes officer rep and Members
No budget expectation for financial dividend
included in base budget
Specific reserve provides mitigation and given no
fines levied for 2014/15 performance, is now
recommended to be used to fund specific staff to
work with residents on a F2F basis to improve their
recycling habits/practices
Base budget contingency protects core budget in s/t
Regular monitoring of relevant performance to
ensure required achievement is being achieved.
Base budget contingency protects core budget in s/t
On-going review by Snr Management. No financial
issues known with certainty currently.
The impact of these challenges are reviewed as part of the financial monitoring process and
through the Corporate Risk Register both of which are reported regularly to the Cabinet and
the Senior Management Team. The Council’s Audit Committee also regularly review the
Corporate Risk Register.
Page 22
Performance
47. The Improvement Plan helps the Council demonstrate its continuous improvement. The Plan
contains the priority areas for improvements in service delivery, and the tracking of various
actions and measures will allow the authority to prove its success in these areas. The
Council has identified 8 Improvement Objectives to form part of the Improvement Plan for
2016-2018. The selection of the objectives followed a consultation with the public where over
600 responses were received.
48.
The Improvement Objectives for 2016-18 fit into the Corporate Plan themes as follows:
 A Caring City
 Ensuring people have the right social services to meet their needs
 Improving independent living for older people
 A Fairer City
 Ensuring people have access to suitable accommodation
 A Learning and Working City
 City regeneration and development
 Supporting young people into education, employment or training
 Improving educational outcomes for children
 A Green and Healthy City
 Increasing Recycling
 A Safer City
 Preventing offending and re-offending of young people
49.
The Councils base budget provides the resources required to meet the numerous targets
linked to these Improvement Objectives Annual service plans include further details about
the appropriate targets and budgets in place which contribute to their delivery/achievement.
Proposed Budget & Council Tax Level
The table below shows the available and required budget
funding with a 5% increase in Council Tax. Cabinet will be
aware that there has been a 4% increase implicit in our
MTFP planning parameters and there is a further 1%
included in the draft budget proposals. In setting Council
Tax, the Council needs to be aware of the need to set a
balanced budget.
Council Tax at Band D at 5%
5% Increase
Budget requirement
Base Budget 2015/16
Inflation & Re-pricing adjustments
BASE BUDGET 2016/17 (before investments/savings)
£000
261,370
1,887
263,257
Budget investments – (£10,449k shown in list of pressures
plus increase of £732k required in Council Tax Benefit
based on 5% Council Tax increase)
Budget savings (£8,647k shown in list of savings plus
£1,900k ‘technical saving)
DRAFT BASE BUDGET 2016/17
11,181
263,891
Funding available
Draft WG Settlement
Current Council Tax at new tax base
Increased Council Tax @ 5%
Total
Balance available ‘in hand’
209,133
52,666
2,633
264,432
+541k
Page 23
£984.92
10,547
50.
Before Cabinet can recommend a budget to Council, it now requires decisions based around
the figures shown in the above table. These decisions include:




51.
Delete specific saving items
Providing additional capacity within services
Fund new initiatives and policies
The level of Council Tax increase required to balance the budget. A 0.1% reduction in
Council Tax equates to £40.5k
For contextual purposes, the table below shows the monetary impact of different percentage
increases in Council Tax and current values at other Welsh Councils. Given the low starting
point on Newport Council’s tax, it will still be lower than most of the Council’s shown, even at
the 5% increase level and the actual monetary increases in tax are low in themselves.
Newport City Council tax will maintain its position as one of the lowest in Wales.
Percentage Increase
Newport Band D Tax
2016/17
Increase per annum
Increase per week
1%
£947.40
2%
£956.78
3%
4%
5%
£966.16 £975.54 £984.92
£9.38
18p
£18.76
36p
£28.14
54p
£37.52
72p
£46.90
90p
Comparison with existing Band D Council Tax (rounded)
Current year (2015/16) before any increase
NEWPORT
£938
Caerphilly
£992
Wrexham
£994
Cardiff
£1,022
Torfaen
£1,098
Swansea
£1,132
Monmouthshire
£1,095
Equalities Impact Assessments
52.
In delivering its services the Council has to be mindful of its duties to discharge its statutory
obligations for Equal Pay, Disability Discrimination Act (DDA) and other equalities legislation
including The Race Relations (Amendment) Act 2000 and the Equality Act 2006.
53.
The Council carries out an impact assessment to identify equalities issues across the
breadth of the budget as part of the MTFP and annual budget setting process to inform
spending decisions. As part of the budget process, equalities implications are considered for
all budget proposals and an EIA is carried out by the relevant service manager, supported by
the Council’s Policy team.
54.
Appendix 12 provides an overarching impact assessment as well as the impact assessment
for all those new saving proposals individually listed in Appendix 7, showing any issues, after
mitigation, of any equalities issues that Cabinet and Council need to be aware of.
THE COUNCIL’S CAPITAL BUDGET
55.
The Council’s capital resources come from four main sources:
(i)
Supported borrowing allocation from Welsh Government
(ii)
Unsupported or “Prudential” borrowing
(iii)
Capital receipts from the sale of Council owned assets
(iv)
WG General Capital Grant / other external grants and contributions
Page 24
56.
In reality, there is little difference between (i) and (ii) as they are both ‘borrowing’ and the
Council is required to identify a revenue budget to fund the financing costs that result from
this type of capital expenditure (i.e. capital principle repayment – MRP, and interest charges).
57.
In February 2014 a four-year capital programme was approved as part of the budget setting
process, for the years 2014/15 to 2017/18. Over the course of 2014/15 and 2015/16, the
programme evolved to reflect the requirements and priorities across the Council. New
schemes were approved and added to the budget, as well as existing schemes being rephased between financial years to reflect changes in deliverability.
58.
The remaining two years of the capital programme is detailed in Appendix 8. The 2016/17
budget includes slippage that has occurred against schemes in the 2015/16 programme,
based on forecast outturn as at the end of month 8. This is subject to change, as it is only
when the final outturn position is confirmed at the end of March (for reporting in June) that
the final slippage figures can be incorporated into the 2016/17 (and subsequent years’)
programme. As noted above, the programme has been recently reviewed extensively and
whilst a difference will exist, it should be relatively small compared to previous years.
59.
The current programme will also be subject to change over the remaining two years as new
priorities emerge and successful capital bids for new schemes are added to the budget. The
next capital programme commencing in 2018/19 will start being considered in due course.
Key schemes on-going in the current Programme
60.
The remaining two years of the programme (detailed in Appendix 8) includes the following
key schemes:
 Budgets of £15.7m relating to Welsh Medium Secondary School provision and £3.9m
for Duffryn High School refurbishment remain within the Capital Programme. Following
the recent decision at Planning Committee in February, the Authority is reviewing its
options in relation to these projects. The Capital Programme will need to be updated
once the alternative proposals have been agreed.
 21st Century Schools – whilst some of the strands of the Band A £15m programme
have been completed (approximately £7.2m spent to date), work continues across the
remaining projects with a remaining budget of £7.8m. The overall programme is 50:50
funded by WG grant and NCC capital receipts.
 Vibrant and Viable Places year 3 grant allocation of £4.365m, following on from the
2014/15 allocation of £5.822m and 2015/16 allocation of £4.111m. Underspends within
each year of this grant cannot be carried forward into subsequent years unless reprofiling is agreed in advance with WG.
 The Fleet Replacement Programme continues, with £3.5m budget available for the
remaining two year programme to 2017/18. Of the original budget, approximately
£2.75m has been re-profiled into the future four-year programme commencing 2018/19.
 Annual allocations for Disabled Facility and Safety at Home Grants (£1.436m), Asset
Maintenance (£1.5m), and Highways Capitalised Maintenance (£500k).
 Amounts set aside of £3m in 2016/17 and £2.2m in 2017/18 to fund future
Change/Efficiency Programme schemes.
61.
The overall Capital Programme including the above schemes totals £39.8m in 2016/17 and
£18.2m in 2017/18. These are funded from various sources, including Capital Grant from
WG, borrowing, capital receipts, Section 106 and other contributions, revenue contributions
and other external grants. This is summarised in the table in paragraph 64 below. In addition
to the schemes already in the capital programme, consideration will need to be made in the
near future of capital project implications of the recent developments regarding the Cardiff
City Region City Deal, once commitments and approvals are confirmed. The financial
commitments here are likely to be some years away at this time.
Page 25
62.
An amount of £5.2m remains reserved for the Change and Efficiency Programme, with
individual schemes yet to be determined. This amount is a reduced amount compared to the
original programme due to no requirement to spend, as highlighted in the business cases
supporting the saving proposals. It remains flexible and will continue to be reviewed on an
on-going basis.
63.
The revised capital programme also includes a new allocation, funded by borrowing of £80k
for replacement fencing at Rivermead Multi-Use Games Area.
64.
The table below shows the current approved four-year programme compared to the
proposed remaining two-year programme based on estimated 2015/16 outturn.
2014/15 2015/16 2016/17 2017/18
£000's
£000's
£000's
£000's
Total
£000's
Outturn
Current Approved Programme
as at January 2016
Remaining Two-Year
Programme to be approved
February 2016
Change
Change Funded by:
General Capital Grant
Supported Borrowing
Unsupported/ Prudential
Borrowing
Capital Receipts
Other External Grants
Revenue Contributions
S106 & Other Contributions
Total
27,197
26,146
39,036
18,198 110,577
27,197
0
25,016*
-1,130
39,763
727
18,198 110,174
0
-403
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
-729
0
-337
-4
-60
-1,130
647
0
21
0
59
727
0
0
0
0
0
0
-82
0
-316
-4
-1
-403
*forecast
outturn
65.
The provisional capital settlement (made up of a general cash grant of £2.479m and
Supported Borrowing funding of £4.073m) for 2016/17 from Welsh Government is a small
improvement on the allocations previously assumed based on 2015/16 figures. Due to
uncertainty around spending plans from Central Government, WG no longer provide
indicative settlement figures for the medium term, so to be prudent for the purposes of MTFP
forecasting the estimates for 2017/18 remain unchanged.
66.
External grant funding continues to be an important source of funding for specific capital
schemes, with the remaining two-year programme being 27% grant funded. The organisation
will continue to seek opportunities to secure external funding to finance both existing
schemes and new priorities that may emerge.
67.
As previously agreed by Cabinet, the majority of capital receipts funding is earmarked for use
on the 21st Century Schools programme (£7.5m for ‘Band A’ and up to £6m for Welsh
Medium Secondary subject to use of other capital reserves), as match funding against WG
grant. The useable capital receipts balance at 31st March 2016 is estimated to be circa
£6.5m, with a further £3.5m forecast to be received by the end of 2017/18. This forecast is
clearly uncertain at the moment and will depend on the property market over the coming
Page 26
years, so a conservative estimate has been used to inform the funding of the remaining twoyear programme in relation to 21st Century Schools.
68.
While the Council is continuing its strategy of minimising its actual long term borrowing and
funding as much of the capital programme via ready ‘cash’ sources (grants, capital receipts,
contributions), it is recognised that in certain cases this may not be possible due to limited
availability of cash resources. Funding capital expenditure via borrowing in a given year
results in revenue cost implication beginning in the subsequent financial year. The remaining
two-year programme assumes that undertaking new borrowing is unavoidable, but it should
be noted that this borrowing requirement will reduce if forecasts of capital receipts are
achieved/ exceeded and not used to fund further new schemes.
69.
The table below shows the capital financing revenue budget required to fund the remaining
two-year capital programme.
Capital Financing Budget Required
2016/17
£000’s
19,958
2017/18
£000’s
20,408
2018/19
£000’s
20,693
TOTAL
£000’s
61,059
TREASURY MANAGEMENT STRATEGY & PRUDENTIAL INDICATORS 2016/17
70.
The Council is involved in two types of treasury activity:


Borrowing long-term for capital purposes and short term for temporary cash flow
Investment of surplus cash
71.
These activities are controlled primarily via the Council’s Treasury Management Strategy and
various measures and limits set via its Prudential Indicators to regulate/control the
implementation of that strategy.
72.
CIPFA requires local authorities to determine their Treasury Management Strategy
Statement (TMSS) and Prudential Indicators (PIs) on an annual basis. This requires approval
by full Council following a recommendation from the Cabinet. The TMSS also includes the
Annual Investment Strategy (AIS) that is a requirement of the Welsh Government’s (WG’s)
Investment Guidance.
73.
Our detailed Treasury strategies for 2016/17 are included at Appendix 9. In addition, planned
strategies to 2019/20 are also included, in line with the Council’s 5 year Medium Term Plan.
Key points of interest are summarised below.
Borrowing Strategy
74.
The Council has significant long term borrowing requirements but in recent years, the
strategy has been to fund its capital expenditure from reducing investments rather than
undertaking more expensive new borrowing i.e. using ‘surplus cash’, whenever possible.
This is because the rates achievable on the Council’s investments are lower than the rates
that would be payable on long-term borrowing and therefore this strategy is more cost
effective.
75.
In terms of the revenue budget, the Council must ensure it sets aside sums to repay capital
expenditure funded from borrowing (irrespective of whether the borrowing itself is undertaken
externally or through dis-investing). This is done via the ‘Minimum Revenue Provision’
(MRP). In addition, a budget is also needed to fund actual interest payable on loans taken
out, which are based on predictions of actual external borrowing. Both are discrete budget
lines in the Council’s overall revenue budget.
Page 27
76.
Local Authorities measure their underlying need for long-term borrowing through their
‘Capital Financing Requirement’ (CFR). This takes into account the amount of capital
expenditure that needs to be funded through borrowing, (as opposed to external funding from cash grants, capital receipts or S106 contributions for example) irrespective of whether
the borrowing itself is undertaken externally or through dis-investing.
77.
In addition to normal planned capital expenditure, in December 2013 the Council approved a
loan of up to £89.1million to Queensbery Real Estates (Newport) Ltd (QRE) to fund the
building of the Friars Walk Development. The Council’s own borrowings to make the onward
loan are kept separate from the Council’s other borrowing requirements as these loans are
relatively short term given the loan is anticipated to be paid off in full via a capital receipt by
November 2016, when the Council’s own borrowings for this will then be redeemed as soon
as is possible. On this basis, the Council will not be required to make MRP charges to the
revenue budget in relation to the Friars Walk Development loan as the borrowing will be paid
off in full at the end of the scheme via the repayment of the loan by QRE (Newport) Ltd.
Loans in relation to the Friars Walk development have been taken at various stages
throughout the scheme build; therefore have variable dates when the loans are redeemable.
£40 million of loans are redeemable in July 2017, with the balance being taken over shorter
terms, currently up to the end of April 2016. This would mean if the loan by QRE (Newport)
Ltd is repaid before July 2017 the Council will have surplus funds to invest, unless we are
able to redeem early at nil or minimal cost.
78.
The table below shows the estimated Capital Financing Requirement/ New Net Borrowing
Requirement position for Newport City Council for 2015/16 to 2018/19:
Table 1: Newport City Council – CFR
31.3.15
31.3.16
31.3.17
31.3.18
31.3.19
Actual
Estimate
Estimate
Estimate
Estimate
£m
£m
£m
£m
£m
CFR
321.1
360.2
280.6
283.7
283.5
Less: Other long-term liabilities *
-51.6
-49.3
-47.4
-45.5
-43.8
Borrowing CFR
269.5
310.9
233.2
238.2
239.7
Less: External borrowing **
-190.3
-235.8
-246.6
-205.6
-204.5
Internal (over) borrowing
79.2
75.1
-13.4
32.6
35.2
Less: Usable reserves
-89.8
-83
-78
-74.2
-73.6
Less: Working capital
8
8
8
8
8
2.6
-0.1
83.4
33.6
30.4
Investments / (New Borrowing)
*finance leases and PFI liabilities that form part of the Authority’s debt
** shows only loans to which the Authority is committed and excludes optional refinancing
79.
As the table shows, the inherent ‘need to borrow’ as shown by the CFR is predicted to be
£280.6 million in 2016/17. The significant reduction in the CFR between 2015/16 and
2016/17 is due to the anticipated repayment of the loan in relation to the Friars Walk
development.
80.
Given current borrowing levels and repayment of the QRE (Newport) loan, no additional long
term borrowing is likely to be required during 2016/17. However, the Authority will be
required to be flexible to borrow up to the Authorised Limit, as there will be uncertainty to the
exact timing of repayment of the outstanding loan.
81.
The Authority will adopt a flexible approach to any borrowing necessary in consultation with
its treasury management advisers, Arlingclose Ltd. The following issues will be considered
prior to undertaking any external borrowing:
Page 28




Affordability
Maturity profile of existing debt
Interest rate and refinancing risk
Borrowing source
Investment Strategy
82.
The Authority holds minimal invested funds, representing income received in advance of
expenditure plus balances and reserves held. In the past 12 months, the Authority’s
investment balance has ranged between £0m and £25 million at any one point. In 2016/17,
the investment balances could increase significantly dependent on the timing of the
repayment of loans in relation to Queensberry, where a substantial receipt may be achieved
in advance of borrowing required to be repaid.
83.
Objectives: Both the CIPFA Code and the WG Guidance require the Authority to invest its
funds prudently, and to have regard to the security and liquidity of its investments before
seeking the highest rate of return, or yield. The Authority’s objective when investing money
is to strike an appropriate balance between risk and return, minimising the risk of incurring
losses.
84.
Given the increasing risk and continued low returns from short-term unsecured bank
investments, the Authority will continue to invest in relatively secure and/or higher yielding
investment classes during 2016/17. This is especially the case for any surplus funds
available for investment following the repayment of the Queensberry loan, before it is used to
repay its own loans for this purpose.
85.
Approved Counterparties: Whilst investment funds remain available and based on the
treasury management advice from Arlingclose; the Authority may invest its surplus funds with
any of the counterparty types in table 2 below, subject to the cash limits (per counterparty)
and the time limits shown:
Table 2: Approved Investment Counterparties and Limits
Credit
Rating
Banks
Unsecured
Banks
Secured
UK
Govt
Not applicable
Not applicable
£5m
£10m
2 years
AAA
AA+
AA
AAA+
A
A-
Corporates
Registered
Providers
Not applicable
Not applicable
£10m
£5m
£5m
2 years
2 years
2 years
2 years
£5m
£10m
£10m
£5m
£5m
2 years
2 years
2 years
2 years
2 years
£5m
£10m
£10m
£5m
£5m
2 years
2 years
2 years
2 years
2 years
£5m
£10m
£10m
£5m
£5m
2 years
2 years
2 years
2 years
2 years
£5m
£10m
£5m
£5m
£5m
2 years
2 years
2 years
2 years
2 years
£5m
£10m
£5m
£5m
£5m
13 months
2 years
2 years
2 years
2 years
£5m
£10m
£5m
£5m
£5m
Government
£ Unlimited
50 years
Page 29
BBB+
BBB
None
6 months
13 months
2 years
13 months
2 years
£2.5m
£5m
£2.5m
£2.5m
£2.5m
100 days
6 months
2 years
6 months
2 years
£2.5m
£5.0m
overnight
100 days
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
£1m
6 months
Not applicable
Pooled
funds
£10m
25 years
Not applicable
86.
Investment decisions are made by reference to the lowest published long-term credit rating
from Fitch, Moody’s or Standard & Poor’s. Where available, the credit rating relevant to the
specific investment or class of investment is used, otherwise the counterparty credit rating is
used. Whilst the credit ratings score drives the approved listing, the day-to-day operational
counterparties are generally limited to named counterparty listing as documented in
Appendix 9. However, where it is prudent to do so the Authority may also use other
approved investments based on the approved credit ratings as documented in the table
above.
87.
A more detailed explanation of the different approved counterparty types are included in
Appendix 9 but for the sake of clarity, the Council’s investment strategy will, as per the Welsh
Governments Investment Guidance, give priority to security and liquidity and will aim to
achieve a yield commensurate with these principles. Due to the expected increase in levels
of surplus funds during 2016/17, the total amount invested in any individual counterparty has
been increased to £10m, and the time limit increased from 6 moths to 2 years. This is in line
with the limits provided by our treasury advisers.
Prudential Indicators
88.
The Council must establish certain ‘checks’ required by CIPFA to ensure that its Treasury
Management Strategy is operating effectively. These are known as Prudential Indicators, and
they will be reported to the Council on a 6 monthly basis.
89.
Examples of our key indicators are noted below; again more detail is supplied at Appendix 9
Net Borrowing/Capital Financing Requirement
90. The Council’s net borrowing should not exceed its Capital Financing Requirements as
outlined earlier. This ensures that borrowing is only used to finance capital over the long
term. The Council does not note any difficulty in meeting this requirement.
Financing Costs to Net Revenue Stream
91. This ratio shows how much of the Council’s total revenue budget is used for capital financing
costs, as a percentage. The ratio for 2016/17 is 8.8%.
Risks:
92.
Detailed financial risks are included in the various sections of the report and appendices
where applicable
Risk
Budget
Impact of
Risk if it
occurs*
(H/M/L)
M
Probability
of risk
occurring
(H/M/L)
L
What is the Council doing or
what has it done to avoid the
risk or reduce its effect
(i) robust business case
Page 30
Who is
responsible for
dealing with the
risk?
Head of
savings not
delivered
Budget
savings not
delivered on
time leading to
in year
overspending
Unforeseen
Pressures
M
M
H
L
processes
(ii)robust budget monitoring
(iii) programme governance
(iv) service planning
(v) retention of reserves and
budget contingency
(i) robust budget monitoring
(ii) programme governance
(iii) retention of reserves and
budget contingency
Finance
Heads of
Service
(i) retention of reserves and
budget contingency
(ii) robust budget review
Head of
Finance
Directors /
Heads of
Service
Directors /
Heads of
Service
Head of
Finance
* Taking account of proposed mitigation measures
Links to Council Policies and Priorities
In drawing up budget proposals, due regard has been given to key Council policies and priorities
Options available
Taking a strategic and medium term view Cabinet should approve the 4 year change and efficiency
programme as summarised in the MTFP, though they could approve 2016/17 proposals only. For
2016/17 Cabinet must agree a revenue budget and then the resulting Council Tax for Council.
Cabinet have various options open to them on the detailed change and efficiency programmes
contained within this report.
Preferred Option and Why
That Cabinet continues to approve a 4 year change & efficiency programme and the detailed
projects over the 4 year period
Cabinet must set a balanced revenue budget and recommend the related Council Tax amount
required for this level of spending to Council
Comments of Chief Financial Officer
The financial implications stemming from this report are contained within the body of the report.
Comments of Monitoring Officer
The Revenue Budget Report has been prepared in accordance with the requirements of the Local
Government Act 2003 and the Local Government Finance Act 1992. In accordance with Section
25 of the 2003 Act, the Cabinet must have regard to the advice of the Head of Finance, as the
Council's Chief Finance Officer, regarding the robustness of the budget estimates and the
adequacy of the financial reserves. This advice must be taken into account when considering the
proposals in the Report and in making recommendations to Council regarding the budget and the
Council tax rate. In accordance with the Functions and Responsibility Regulations, agreeing the
overall budget and setting the Council Tax rate under the 1992 Act is a matter for full Council.
Therefore, the recommendations of the Cabinet will be subject to ratification and approval by full
Council, insofar as they relate to the overall budget and Council tax proposals for 2016/17.
However, the implementation of the individual proposals within the medium term efficiency and
change programmes are executive matters for the Cabinet, provided that they are in accordance
with the general budget framework set by the Council before the beginning of each financial
year. Therefore, Cabinet is able to approve the 4 year programme as set out in the MTFP, subject
to future budget decisions.
Page 31
Staffing Implications-: Comments of Head of People and Transformation
The change and efficiency programme outlined in the report will have a direct impact on
employees across the Council, including, potentially, schools. Changes to structures and staffing
will be required to make the necessary savings. This programme will be supported through Human
Resources, ensuring that the Council’s services are financially sustainable into the future and
continue to deliver high quality to Newport’s citizens. The change programme will need to
incorporate meaningful consultation with trade unions and affected employees and this has already
commenced.
The Council will aim to minimise the impact of the budget proposals on employees across our
services, and a number of actions are currently being undertaken to assist in this e.g. restrictions
on recruitment, reduction in use of agency staffing and overtime. However, given the scale of the
challenges facing the Council over the next 5 years, it has to be recognised that the Council cannot
rule out having to make redundancies. All employees directly affected will be supported by the
provisions of the Council’s Job Security Policy, which aims to minimise compulsory redundancies
and retain employees in our employment wherever possible.
Comments of Cabinet Member
The Chair of Cabinet, as Lead Member for strategic finance confirms he has approved this report.
Local issues
The budget proposals as shown affect the city as a whole although some specific proposals may
affect certain localities more than others
Scrutiny Committees
Comments from Scrutiny Committees are included in appendix 2 of the report
Equalities Impact Assessment
The detail of Equalities Impact Assessment undertaken is included in Appendix 12 of the report.
Consultation
Wide consultation on the budget has been undertaken, as outlined in paragraph 15 of the report
Background Papers
Equalities Assessments on saving proposals
Appendices
Appendix 1
Business, Union and 3rd Sector Consultations
Appendix 2
Extracts from Scrutiny Committee Minutes
Appendix 3
Extracts from Schools Forum Minutes
Appendix 4
Public responses to budget consultations & Responses
Appendix 4a Fairness Commission review
Appendix 5
Service Area Draft Budgets
Appendix 6
Budget Investments
Appendix 7
Budget Savings
Appendix 8
Capital programme/budget 16/17 and further 1 year program
Appendix 9
Treasury Management Strategy and Prudential Indicators
Appendix 10 MTFP
Appendix 11 Reconciliation of movements since Budget Consultation
Appendix 12 Equalities Impact Assessment
Appendix 13 Financial Resilience, Earmarked Reserves & Invest to Save requirements summary position
Page 32
Appendix 14 Fees & Charges
Appendix 15 Newport 2020
Page 33
Appendix 1
Business, Union & Third Sector Consultations
Minutes
Employee Partnership Forum
Date:
14 January 2016
Time:
10.00 am
Present: Councillors G Giles (Chair) Whitcutt; P Short, S Davies, I Reese, M Lavis
(Unison); R Haywood, B Dawkins, G Lucas (GMB); D Rees (NUT); R Tollman (NASUWT);
Officers In Attendance: D Wood-Lawson (Head of People and Business Change; M
Rushworth (Head of Finance); M Dickie (Business Improvement Manager; B Burns (Health
and Safety Manager; A Every (Senior HR Business Partner); A Jenkins (Democratic
Services)
Items Raised by Trade Unions: Budget Proposals 2016/17
Lengthy discussion ensued regarding the concerns that union representatives had with the
budget proposals.
The union representatives expressed their disappointment over the lack of changes to the
budget proposals by the Cabinet. This was in light of the recent announcement from the
Welsh Government where the funding allocation to Newport City Council was more than
originally expected. It was hoped that suggested cuts by the cabinet would be reconsidered.
The areas of concern that were highlighted by representatives was Children and Young
People and Education, in particular, Specific Learning Difficulties (SPLD) and Additional
Learning Needs (ALN), and the proposed reduction of funding in these areas. Unions
highlighted that reduced funding in these areas would have a huge impact on the people that
need the support of the council.
The Chair assured representatives that comments had been taken very seriously, and would
be noted.
The Head of Finance informed those present that £11M savings were expected to be made
by the Council for next year.
Unions position was that they understood that there would still need to be cuts however, it
was disconcerting that the figures were not revised when the provisional settlement from the
Welsh Government came out. The Head of Finance explained that the reason why no
revision had been made to the report was because the Welsh Government settlement came
in days before the report went out.
Councillor Whitcutt stressed that when the proposals were published the Cabinet wasn’t sure
of the likely settlement from Welsh Government. At Cabinet recently it was made clear that
Page 34
all stakeholders should participate in the budget consultation including the public and that it
was important to consider all the factors and representation should be taken seriously.
GMB raised concern where a staff group in Streetscene had not been informed of proposed
changes in their specific service. GMB and the service manager were due to have a
meeting to review this position and clarify later in the week. The Head of People & Business
Change stressed that there had been a number of staff engagement sessions undertaken
throughout the whole of the Authority in response to budget proposals, however if there was
an area that had not been informed in time, this that this was a one off incident which is
unfortunate. However it is anticipated clarification for these staff members will be given
following the planned meeting this week.
After lengthy discussion the Chair advised that comments were welcome were welcome to
enable the authority to take on board all concerns in relation to the budget proposals.
Unions asked for clarification on categorisation for Scheme of Delegation business cases.
Agreed:
Unions comments/position on the budget proposals noted.
Clarification/categorisation for Scheme of Delegation business cases to be sent to Unions.
Page 35
Appendix 1a – Union specific comments
UNISON
The Leader of Newport City Council and Members of the Cabinet
Dear Councillors
2016/17 Budget and Medium Term Financial Plan
We write to you as part of the 2016/17 budget consultation exercise and base this response
on the 18th December Cabinet Report. We have met Council Officers to discuss the Business
Cases underlining the proposals which affected staff and our members.
We note that the draft Welsh Government settlement is better than previously expected
and amounts to a 0.7% cut in funding. The proposals that have been put forward were in
anticipation of a 2.5% cut in the settlement. We understand that due to the timeframe the
proposals could not be amended to perhaps ‘relax’ some of the financial pressure, but we
remain concerned that there have been no amendments or addendums to allow us to
consider which proposals are likely to be rejected in the light of the better than expected
settlement.
The 18th December Report acknowledges that the Cabinet could now ‘take out savings
altogether’ (para 16). Furthermore, the healthy levels of reserves and budget consistency
allows for more flexibility, safety and resilience (para 20). Consequently, there is no
necessity to make any of the new cuts proposals that are now being brought forward for
Cabinet approval.
We support the proposal to further increase Council Tax (N0N005) above that already
planned in the MTFP. Newport has the lowest rates of Council Tax in Wales and doesn’t
spend up to its SSA (para 10). We hope that Cabinet and Council agree to this proposal as it
provides more revenue for the continuance of services albeit nowhere near where the
finances need to be.
We are also pleased to hear though cannot see a reference in the Cabinet Report, that the
Living Wage will be uplifted in line with foundation recommendations in April 2016.
Cabinet should take note of the risk level entailed in some of the proposals. There can be a
temptation to propose business cases with options that are high in terms of risk in the
change due to a pressure to reduce budgets and spending. We would ask that these types
of cases are considered carefully, and what the outcome could be if the risk was not
managed and could lead to a further financial outlay.
There are a number of proposals for cuts to services provided for children and young people
in the City. These are causing considerable concern for us not only in terms of staffing but
Page 36
also for their impact on vulnerable people. We would ask Cabinet to consider not to
implement these proposals as they will affect future generations considerably, and
potentially put the Authority at risk with not protecting children to the best of their ability.
CHILDREN’S SERVICES
There are multiple proposals which concern Children Services – the first of which we will
address is CFS01 which is to close Brynglas Bungalow Children’s Residential Unit and also to
sell excess capacity to neighbouring local authorities. UNISON believes that this proposal is
high risk and may well fail to provide savings. The business case proposes something which
has not been researched or undertaken by other local authorities; therefore the risk would
be whether the plan would come to fruition. Another point would be whether there would
be capacity time to accommodate those out of county placements.
Proposals CFS02, CFS03, CFS05, and CFS06 concern the deletion of Social Worker and front
line worker posts within Children Services. It seems ridiculous that the Authority undertook
an extensive Recruitment and Retention campaign for social workers some three years ago,
and now they consider them for redundancy! We believe these proposals hold a high risk of
the Authority not meeting the needs of children in the city and failing to be able to provide
the service required. We would also highlight that deletion of posts in this area will lead to
higher workloads for others including case work, which could add to high levels of anxiety
and stress for these workers.
YOUTH SERVICE
Disappointingly, the Council’s Youth Service appears again in the budget proposals.
Proposal numbers RIH18 and RIH07 both affect Youth Workers in the city. We understand
that some posts may be retained but through grant funding, but posts will be lost. We also
question the job security of grant funded positions.
SpLD
The proposal EDU01 ‘Ceasing Funding for Specific Learning Difficulties delegated services
and ceasing or partially ceasing funding for the Additional Educational Needs delegated
service’ is strongly opposed by UNISON. Not only would we see the loss of highly specialised
and experienced individuals in their field, but the extra support provided to children who
face particular difficulties in school would disappear. Schools are already stretched for
resources; we believe that withdrawal of the service would result in higher demands on
teaching and support staff, and lower attainment for children who require the additional
support.
STREET SCENE
Page 37
Proposal STS14 - Land drainage and canal maintenance – review of services - we would urge
Cabinet to consider events of recent weeks around the Country. To reduce maintenance of
canals and land drainage would be foolish in light of extreme weather events.
Proposal STS18 concerns the street cleansing teams and includes a proposal to change
working hours. We cannot support a proposal which sees staff move to a nine hour outdoor
working day in such a physically demanding role, without return to depot during shift.
UNISON has significant health and safety concerns and wishes to remind the Council of its
duty of care.
UNISON are disappointed again to see the reduction in Park Rangers in the budget. This
section of workers have seen severe cuts to staffing in the past 18 months, to lose another
member of staff will result in a further drop in morale. The Cabinet will have to remind
Council that if changes such as this proposal were to go ahead, then opening hours for parks
will have to be amended and the public will witness a reduction in the service as a result.
The Council cannot have the same service as previously and stretch those staff responsible.
OTHER
Proposal LR02 includes the cessation of provision for City events and we are concerned that
not all events have been considered within the proposals, such as Remembrance Parade
and Children’s Chartist Parade. Who would be responsible for these annual events? Also
the withdrawal of funding for the Food Festival would be damaging for Newport. Such hard
work has been put in to raising foot fall to the City Centre; surely a very successful food
festival will supplement this? Also it is confusing to know which members of staff are
involved in this planning, as the report states savings would be apportioned over 2 years –
whereas it previously states staff savings would be delivered April – July 2017 but that
ceasing of events would be April 2016? We would suggest that Cabinet gain more
information. We would ask that Cabinet consider all of the above comments. Please note
that there is no imperative for further cuts to jobs and services for the coming year.
UNISON has been criticised in some quarters for its lack of rigour in opposing cuts in
previous years. Our understanding for the Council’s position and requirement to balance its
books may evaporate if there are further unnecessary cuts to our members’ jobs and
services.
If you wish to discuss any of the above points, please do not hesitate to contact either of us.
Yours sincerely,
Miss Stephanie Davies
Branch Secretary
Mr Peter Short
UNISON Regional Organiser
Page 38
GMB
Councillor Bob Bright
Leader
Newport City Council
Dear Councillor Bright
2016/17 Budget and Medium Term Financial Plan
The GMB wish to make the following comments in relation to the Cabinet
Report regarding the 2016/17 Budget and Medium Term Financial Plan
proposals.
Newport City Council has received a better settlement figure from the Welsh
Government (0.7%) significantly less than the original figure of 2.5% cuts
which many of these proposed cuts are based upon. We therefore request
the Council now look at much less stringent cuts to its services.
Many of these proposals will vastly reduce the number of staff available to
deliver core services to vulnerable adults and young people as well as the
environment.
In particular the GMB wish to highlight areas that will have a major impact
upon people’s environment and the cleanliness of the streets where they live.
The current proposal is to cut street cleaning outside of the City Centre by
slashing the workforce. The Council will not be able to maintain the same
level of service with this massive loss of workers. Reduced street cleaning
would result in higher build-up of litter in the streets especially across the
outskirts of Newport where it is proposed to reduce the cleaning schedules.
The introduction of a 10 hour working day and closure of Park Square will
have significant detrimental impact upon the remaining workforce especially
as their work is very physical and can result in work related illness. Many of
these workers are very worried about the impact upon their family life as well
as the long term affect upon their health and wellbeing.
The GMB urge management to consider looking at income generation rather
than cutting the service to the public and staffing levels.
Cuts to grounds maintenance, land drainage and canal maintenance will
significantly lower the appearance, access and usage of much of the urban
area. The recent weather conditions have highlighted the risk of flooding to
homes and property. These cuts appear to have a high risk element attached
to them.
We have grave concern regarding the proposed reduction of social worker
posts especially as the council has striven in the past to build up the number
of social workers recognising the vital need to protect vulnerable adults and
children/young people. The high number of potential reduced posts across
Family Support Service, Fostering and Matching and Placement Service
(MAPS) will cause increased caseload and pressure on remaining staff,
Page 39
possible additional court costs, potentially putting the Service at risk as well as
possible long term financial implications.
The closure of Brynglas Bungalow Children’s Residential Unit and the hope to
sell excess capacity to neighbouring local authorities is both untested and will
drastically reduce staffing levels and may place this service in jeopardy if
unsuccessful. Especially where cuts are proposed in preventative and other
family and children service which as highlighted in their respective business
cases may result in higher residential need.
The proposed business case to cease funding for Specific Learning
Difficulties delegated services and the ceasing or partially ceasing funding for
Additional Educational Needs delegated services – the level of high risk
relating to these proposals indicate they should be rejected which the GMB
would support.
Cabinet Member Decision
The GMB is fully aware the increased cardboard collection service to
residents through Wastesavers is a cabinet member decision, however, the
GMB has been informed by its members and subsequently by management
that there are in fact 12 permanent staff (not 8 agency workers as reported in
the business case) who will be affected by this decision.
We are informed all of these workers will work on the green waste collection
but this work will last until the end of the year and management are unable to
inform us what will happen to our members at the end of 2016 or the other
permanent members of staff who previously worked on this function.
An Addendum to the business case was sent out on 22 January 2016 from
management (attached as appendix 1) to this statement. The Addendum
appears to identify 24 FTE posts will be lost allegedly from a daily average of
19 FTE agency staff and management of vacant posts (6 FTE and 3 FTE
operatives with long standing health conditions). Yet it is the GMB’s
understanding these vacant posts are filled by agency staff - is this double
accounting?
The GMB have the names of 12 permanent FTE workers who have been
working on the cardboard collection service for approximately 2-3 years. We
raised this information to management at the meeting with staff on the 15th
and this was not challenged.
Quite honestly this business case is very unclear and we are very concerned
that there has been no mention of a potential TUPE transfer or any
consultation with staff until the GMB intervened on 13th January.
Management then met with staff on the 15th.
If it transpires our members should be subject of a TUPE transfer but the
Council failed to undertake proper due diligence in this respect and later lose
their employment we will clearly take this further.
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The GMB is requesting the cabinet member to postpone any decision until a
proper business case is produced.
Conclusion
The GMB is very much aware the majority of budget cuts are the result of the
central government’s continued attack upon public sector workers. However
we would highlight the fact that once these services are reduced or lost it is
very unlikely they will ever return. We would therefore request the Cabinet to
pass on the settlement figure and protect its services.
Yours sincerely
Lyndon Clarke Gerald Lucas
Branch Secretary Convenor
Rowena Hayward
Membership Development Officer
Page 41
Responses from Trade Union, Third Sector and Business Sector meeting on 3rd
February 2016
Generally the feedback was positive with the Unions making the same points they had made
in their written submissions
-
Don’t be tempted to reduce the increase in Council Tax to less than 5% (Although it
was pointed out the assumption for future years was at 4%)
Consider removing savings proposed in children’s services ; youth services/
SPLD/AEN services
Consider removing saving proposed at Brynglas Bungalow; Social worker reductions;
Streetscene
Consider the on-going risk of service reductions
Generally they were pleased that their submissions were being seriously considered by the
Cabinet.
Page 42
Appendix 2
Extracts from Scrutiny Committee Minutes
Community Planning and Development Scrutiny Committee – 13 January 2016
2016-17 Budget and Medium Term Financial Plan: Scrutiny Consultation
The Head of Finance introduced the report and outlined the current position of the draft
Cabinet Budget Proposals. He explained that the Cabinet had confirmed the draft proposals
at its meeting in December, and that the proposals out for public consultation contained the
full range of options from which the Council could make savings. In light of the confirmed
settlement from the Welsh Government, the draft proposals contained more savings than
was required, as such not all the savings in the proposals would need to be taken. The
outcomes of this meeting would be presented to the Cabinet at its meeting in February for
consideration prior to making a final decision on the budget.
The Committee was asked to provide recommendations and comments on the proposed
savings and investment proposals, and comments on the Cabinet Delegated decisions. The
Head of Services delegated decisions were provided for information and related to
operational matters.
The following comments and questions were raised in relation to the specific proposals:
New Budget Investments 13 – National Minimum Wage
Members asked how this would impact upon our staff and our contracts with outside
organisations. Officers explained that this would likely increase costs for providers, and this
was linked to the work of the contracts and commissioning team, negotiating with providers
to agree the impact. The provisional figure included in the budget papers was based upon
high level analysis and would be confirmed once agreement was reached with providers. In
relation to internal staff, last year’s Living Wage agreement was already in place, and autoenrolment in the pension scheme (Proposal 25) would also be brought in this year.
14 – Welsh Language Scheme
Concerns were expressed at the level of investment needed to meet the new Welsh
Language requirements, at a time of severe financial pressure and proposed cuts to other
valuable services. It was recognised that these were legal requirements, and noncompliance would result in the authority being fined. Officers explained that public services
were subject to a timetable being rolled out for compliance, and representations had been
made to Welsh Government together with other similar local authorities regarding the impact
on areas with low percentages of Welsh speakers in the local population.
Agreed / Revised Investments
21 – Adults – Demographic Growth
The Committee discussed how these figures were calculated, and the difficulty of projecting
demographic growth accurately. An overspend was projected but it was reported that this
could be brought down by achieving planned savings.
New Budget Savings for Consultation
SSA10 – Telecare
It was confirmed that this was due for review, and would look at consistency of access and
cost across the service, and ensuring focus on prevention.
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SSA11 – Modernisation of Transport Provision
Officers explained that this review would be a staged process, focussing on encouraging
independence, and looking at all transport provision arrangements currently in place. The
review was long overdue, with some provision having been in place for a long time.
Transition was expected to be more difficult for those service users with longstanding
arrangements. Training and support would be provided to aid transitions to new
arrangements. It was clarified that this would not affect hospital transport.
It was suggested that “access to social interaction” should be included as a priority in the
new transport policy. It was also suggested that ongoing monitoring should take place of
those accessing or ceasing to access day services, so that the impact can be assessed /
mitigated. Officers confirmed that this proposal was linked to other business cases looking to
provide activities in hubs, with good transport links for ease of access.
STS01 – Bus Routes – Removal of Financial Support on Evenings and Sundays
The Committee expressed concerns regarding the potential impact of this proposal, for
example for those needing to make hospital visits on a Sunday. Such concerns were also
raised by the Street Scene, Regeneration and Safety Scrutiny Committee (7 January 2016),
which recommended a further breakdown of usage figures was required to properly assess
the likely impact, particularly for vulnerable groups.
CSDI002 – Customer Services – Reduction in Front Line Staffing
Following discussion of this proposal, the Committee agreed that they could not support this
reduction in staffing. Although this is not a statutory service, it is very important to the public
and the Committee were concerned that this proposal would have an adverse impact for the
sake of a relatively small budget saving.
LR01 – Members Neighbourhood Allowances
The Committee recommended that this proposal be reviewed. The Head of Service
confirmed that the rules regarding funding had recently been tightened up, and not all
allowances were spent (£15k was saved this year).
Concerns were raised regarding the impact on local organisations and voluntary groups. As
not all Members were using their allowances, it was suggested that the money could be
pooled and/or administered differently instead.
LR02 – Cease the Provision of All City Events
The Committee recommended that this proposal be reviewed. Concerns were raised
regarding the overall impact upon the economic development of the city centre, in
maintaining the profile of the city as a destination, and capitalising on the increased footfall
brought in by Friars Walk.
NB. The Street Scene, Regeneration and Safety Scrutiny Committee also made comments
on this proposal (7 January 2016).
LR11 – Reduction in Discretionary Tourism Budget
Linked with the concerns above, the Committee was reluctant to support any reduction in
tourism budget, at a crucial stage in the development of Newport. The Head of Service
advised that a Member group had been set up to look the promotion of culture and heritage
in the city.
PBC06 – Reduction in the Overall Budget Allocated Through Grants to Voluntary
Sector Organisations
Officers outlined the process being proposed to review the overall grant budget and the
system for allocating funds / commissioning services. It was highlighted that this should be
considered in conjunction with Proposal SSA06 (Adult and Community Services – Review
and Reconfigure Third Sector Contracts).
Page 44
The Committee raised concerns over the proposed reduction to voluntary sector grants,
particularly in the context of cuts to services provided to the Council, which would likely drive
more people towards voluntary sector services. Also in the light of more challenging times
nationally, for example with another recession forecast, and further changes to the benefits
system ahead. Members underlined the value of voluntary sector services, including the
money saved by statutory organisations as a result.
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Learning Caring and Leisure Scrutiny Committee – 20 January 2016
2016/17 Budget & Medium Term Financial Plan
Consideration was given to a report on the 2016/17 draft budget options and Medium
Term Financial Plan. The Cabinet was required to consult on the proposals before
recommending a budget to Council for approval, including Scrutiny Committees.
Public consultation was also taking place on the proposals for which a deadline for receiving
comments from the public engagement process of 22 January 2016 had been set.
The draft budget proposals had been split into three sections:
consultation. The Scrutiny
Committee was invited to comment upon and make any suggestions upon this section for
consideration by the Cabinet.
over the forthcoming period to implement these proposals and would undertake consultation
with Members as part of the usual decision making process, prior to each individual decision
being made.
–These were matters within the remit of
individual Heads of Service, that would be implemented over the forthcoming period.
Members were invited to comment on any aspect of the report which fell within the remit of
Committee, but encouraged to focus on those proposals within the formal consultation (Part
A).
Comments were also invited upon the budget process, particularly focussing on the public
consultation and engagement activities taking place add also to Fairness and Equality
Impact Assessments to ensure the process had been properly followed to support the
budget proposals.
Comments made related to:
– To close Brynglas bungalow children’s residential unit and sell excess capacity
to neighbouring local authorities. This would reduce the options available for looked after
children within the Authority. The three beds would be sold across the remaining two
residential units on the basis of standard, medium care. This outcome would reduce the level
of provision in Newport from 12 to 9 beds.
The high unit cost and small size of the unit and nature of the building also posed difficulties
in addressing aspects of provision for vulnerable children.
redesign its format.
performance.
Page 46
– Ceasing funding for SpLD delegated services. Ceasing or partially ceasing
funding for the AEN delegated service. This would remove funding for specific education
services of a non-statutory nature (AEN and SpLG provision, delegated to Maes Ebbw
Special School). Concern was expressed that this proposal would adversely affect support
for vulnerable students and the impact on performance, other services and citizens, since
pupils would not receive specialist service support and teachers would not receive free
advice, support and guidance.
The possibility of reconfiguring staffing arrangements was suggested as a possible option to
explore in order to mitigate the suggested saving.
It was suggested that the proposal should be reconsidered in the light of the implications of
proceeding with the proposal.
budget generally and associated financial issues. The Head of Finance explained that
underspent budget areas were proposed for appropriate reductions in the following year and
that corresponding cuts were not needed to front line services.
lengthy proposals. Concern was expressed that schools should be consulted regarding the
services they provide and be able to submit their own proposals for consideration when
preparing budgets. The Chief Education Officer indicated that Head Teachers had been
briefed at length regarding consultation proposals for the budget, informed of relevant dates
and invited to comment on them.
which a deadline of 22 January had been set. However, comments made subsequently
would also be submitted to the Cabinet for consideration, alongside the results of all
consultation outcomes on the budget proposals.
– Reduction in Social Worker posts. Concern was expressed at the likely impact
on the service arising from this proposal. Significant risks and challenges to performance
existed for any of the options explored. It was suggested that more preventative work was
desirable since reactive work often proved more costly to remedy issues that could have
been more economically dealt with preventatively.
– Review and reduction of Prevention Team. Similar concerns were raised to
those in CFS03 above. The Teams were considered a necessary service provision. Both
Teams should be active in providing parental support in individual cases.
– Review and reduction of Fostering and Matching and Placement Service
(MAPS) budgets. It was suggested that successful implementation of this service was
important to sustain long term placements. It was suggested that ways of reducing external
legal costs associated with the service should be investigated to assist in reducing service
costs.
– Reduction in Voluntary Sector Contracts. The possibility of investigating ways to
reduce the costs associated with this matter was suggested. Reference was made to the
complex funding arrangements associated with the voluntary sector contracts.
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– Restructure of the Council’s core Funded Youth Service. Comments were made
regarding elements of the service and the possible impact of the proposals to restructure the
service and facilitate efficiencies within a realigned model:
- Alternative Curriculum – This element would continue to be funded in full via the European
funded Aspire to Achieve programme.
- Duke of Edinburgh Award Scheme (DoE) – This would be discontinued but schools could
procure licences from DoE to deliver the programme should they identify DoE as a priority.
- It was intended that the core youth service provision would work more closely with schools.
- NEET work – The 1-2-1 advice provided by the service alongside the NEET programme
delivered by Communities First would continue in full but the advice and support provided
would be discontinued.
Resolutions and Actions
To convey the comments made, as part of the budget consultation process, on the budget
proposals relating to the Committee’s portfolio to the Cabinet for consideration.
Page 48
Streetscence, Regeneration and Safety Scrutiny Committee – 7 January 2016
2016/17 Budget and Medium Term Financial Plan: Scrutiny Consultation
The Head of Finance introduced the report and outlined the current position of the draft
Cabinet Budget Proposals. He explained that the Cabinet had confirmed the draft proposals
at its meeting in December, and that the proposals out for public consultation contained the
full range of options from which the Council could make savings. In light of the confirmed
settlement from the Welsh Government, the draft proposals contained more savings than
was required, as such not all the savings in the proposals would need to be taken. The
outcomes of this meeting would be presented to the Cabinet at its meeting in February for
consideration prior to making a final decision on the budget.
The Committee was asked to provide recommendations and comments on the proposed
savings and investment proposals, and comments on the Cabinet Delegated decisions. The
Head of Services delegate decisions were provided for information and related to operational
matters.
New Budget Investments
8 – Project Team
Committee Members requested clarification on the terminology used within this proposal.
The Project Manager clarified that this was an increase in the investment for this area to
cover a pressure within the budget, to cover a shortfall in the income that was achieved by a
capital team.
14 - Welsh Language Standards
Members commented on the amount of investment proposed to implement the Welsh
Language Scheme. Members were informed that this investment was required to meet the
necessary standards, most of which were required to be in place for April 2016, and mainly
related to making written information available to the public in Welsh. The £280,000
investment was primarily for translation costs, and the Council was looking at ways to reduce
this through collaborations with other Councils for a shared service. Members acknowledged
that investment was necessary to implement the standards, but questioned the amount of
spending that was required.
Suggested Investment – Barriers Reinstated in Town Centre
Members commented that one area where an investment would be beneficial would be to
reinstate the barriers within the town centre, on the understanding that this would support the
bus companies to reinstate the buses to the city centre and increase footfall within the city
centre. Members noted that at present the busses only stop at Friars Walk and the Market,
which did not promote footfall for small businesses in the centre, particularly on High Street.
Other issues raised with the removal of the barriers included car movements within the
pedestrian area, cars parking within the pedestrian area, and problems with cleaning the
streets due to parked cars.
The Strategic Director – Place advised that at its meeting in December, the Cabinet had
decided to undertake a review of traffic management issues in the city centre, which would
include the issues raised in terms of traffic flow, footfall, and issues associated with
pedestrian access to the city centre.
The Committee agreed to recommend that the Cabinet consider investing in reinstating the
barriers within the City Centre to improve pedestrian access to the city centre and overall
Page 49
footfall. The Committee believes this encourage bus companies to stop at different stops
within the town centre, which will improve footfall and help to support small businesses in the
area.
New Budget Savings for Consultation
STS01 – Bus Routes – Removal of Financial Support on evenings and Sundays
The Project Manager outlined the proposal to remove the Council subsidy for evening and
Sunday bus services, and advised the Committee that the Council had invested £5000 to
undertake surveys to gain a better understanding of the movement of passengers using
these services. It was agreed that the information from this survey would be distributed to
Members.
The Committee commented that the Council should be encouraging more public transport
use, and should be supporting Sunday trading and the night time economy in Newport with
the opening of Friars Walk presenting an ideal opportunity to encourage people into the city
centre. Members commented that the figures contained within the business case on
passenger usage figures would have been produced prior to Friars Walk opening and that
the Sunday and evening usage would likely to have changed following its opening.
The effect on vulnerable groups was also discussed, in particular the impact this proposal
would have on the elderly within these areas.
Members recommended that a further breakdown of the figures was required prior to a
decision being taken to establish how many passengers would be affected for each service.
The figures included within the business case were summarised for Sunday and Evening
Services per week and there was no weekly passenger figure provided for the X15 Service
(Brynmawr to Newport, Stagecoach). It was also not clear from the business plan the wider
impact this proposal will have, such as impact on access to recreation and services.
STS014 - Land Drainage and Canal Maintenance – Review of Services
The Project Manager outlined the proposed changes to the service as part of this proposal to
move from a cyclical rota of maintenance, to a priority based schedule of works.
Members queried if there were grants from external sources that could support this work.
The Head of Regeneration, Investment and Housing advised the Committee that the
Community Development Team could assist in this area, to work with Members and look at
grant funding and work with the community, if there was an interest within the Community to
set up volunteer groups.
Members were concerned of the effect of this proposal on flooding risk for these areas, and
the associated costs of reactive works to fix these areas should flooding occur.
Members also suggested that the links with the Probation service be explored.
It was noted that mention was made in the business cases to working with community and
volunteer groups to work alongside the Councils maintenance to support work for these
areas. Members agreed that this was a viable option, but were recommended that a
decision on changing the maintenance schedule should not be taken before arrangements
with community groups were already established.
STS18 – Street Cleansing – Review and Restructure of Services
Members questioned how the savings were being made without reducing services. The
Project Manager advised the Committee that the savings were based on changing the
working patterns for the operatives, revising the street cleaning schedule, and the increased
use of machinery. Under the modernised service, street cleansing would take place from 85pm over a 7 day period, rather than 7-1pm 5 days a week as it currently stands. This would
Page 50
provide a better service to the public and better working conditions for the operatives through
the use of automatic vehicles for collecting litter.
Members queried whether the workforce were happy with these changes, the Officers
advised the Committee that the general feedback had been positive.
STS20 – Grounds Maintenance Service Review
This proposal was to reduce the number of grass cuts throughout the City from 8 to 6, with
the exception of visibility splays, school contracts and leisure facilities, and was reliant on the
investment of a more self-propelled machinery to clear the additional length and quality of
grass.
It was the opinion of some members of the Committee that as the optimum number of grass
cuts was 12; to reduce this from the current 8 to 6 was not acceptable level of service.
STS26 – Waste – Review of Charging for special collections
This proposal would be to apply a new pricing mechanism for special collections to ensure
that the minimum charge covers the operating and disposal costs of the service. The new
pricing structure would be £20 for up to 3 items, which the Committee were advised was
comparable with what neighbouring authorities charge for this service.
The Committee raised concerns that if this proposal was implemented, that there would be
an increase in fly tipping, which it was noted was already causing the Council significant cost
to clear up. Members queried if there was any evidence from other authorities who has a
similar scheme that fly tipping had increased as a result. Members informed that informal
feedback that had been received indicated that there was not a direct correlation, and that
pricing was not the only factor in instances of fly tipping.
Members discussed the services available to collect usable item free of charge for recycling
or on selling, and suggested that more was done to promote these services within the
Community and this alternative given to customers via the contact centre.
Members queried if it was possible to reduce the cost to make the service operate at cost
neutral rather than a surplus. The Assistant Head of Finance clarified that the proposal
covered a budget pressure last year and to make it cost neutral next year would require an
additional £44,000, which is what this proposal would cover.
Some Committee Members did not support this proposal, due to the risk that this would
increase fly tipping.
LR02 – Cease the provision of all City Centre Events
The Committee noted that this proposal was within the portfolio of Community, Planning and
Development Scrutiny Committee as a Communications issue. However, due to the focus of
this proposal to cease events in the City Centre, the Street Scene, Regeneration and Safety
Committee commented that this proposal would present a regressive step and negatively
impact the positive work that has been undertaken to bring people into the city centre and
establish these events.
The Committee recommended that this was an area where funding should be retained and
not reduced, in light of the recent investment in the city centre regeneration. It was
acknowledged that these events would not need to be funded in the long term by the
Council, but that at present there was a need for the Council to drive forward the events until
such time that they were well established and alternative funding avenues had been utilised.
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NON002 – Invest to Save Reserve
Members were advised that this proposal was to cease the annual contribution made to the
invest to save fund. The invest to save fund was used to fund any project which would then
lead to permanent council budget savings. Currently the reserve is replenished by £950,000
every year.
Members raised concerns that this fund should be used to make efficiency savings in the
long term, and without replenishing it annually, it would diminish the Councils ability to
respond to innovative and creative projects that will save the Council money in the long term.
The Head of Finance advised Members that there was a proposal being discussed by the
Cabinet to invest between £4-5 million in this fund as a one off investment. This would mean
that the annual contribution of £950,000 would not be required to fund projects in the
medium term. Members were advised that details of this investment had not been confirmed
prior to the draft budget proposals being published, Members recommended that details of
this proposed one off investment be included in the business case, as without confirmation
of this additional investment, the Committee could not support to cease the annual
contribution to the Invest to Save Fund.
NON005 – Council Tax Increase
The Committee indicated that it did not support this proposal, and recommended that the
Cabinet does not increase Council Tax to the maximum amount of 5% in addition to the 4%
already agreed.
Cabinet Member Delegated decisions
STS29 – Car Parking Tariffs Review
The Committee discussed the proposal to revise the car parking order to facilitate increases
to parking tariffs and pricing structures.
Members commented that this proposal would have a negative impact on supporting the
development of the City Centre and that the Council should be encouraging and supporting
people to come into the city centre and increasing footfall for local business, to ensure the
success of the city centre regeneration and development.
RIH7 – Community Regeneration - Youth Services Operational Restructure – Phase 1
Members questioned why a Fairness and Equalities Impact Assessment had not been
undertaken prior to this proposal being developed. The Head of Regeneration, Housing and
Investment advised members that a FEIA had been completed and that this was an error
within the report.
The Committee requested that a copy of the FEIA be circulated to Members and included
within the Cabinet Report in February.
The Committee commented that this proposal would further diminish this service’s ability to
identify and support vulnerable youths in the Community, and commented that Youth
Services should have a consistent annual funding from the Council.
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Appendix 3
Extracts from Schools Forum Minutes – meeting 12th January 2016
2016/17 Budget and Medium Term Financial Plan – Mike Fisher
MF read through the ‘2016/17 Revenue Budget and Medium Term Financial Plan’ report
updating the Forum on the latest position which was considered by Cabinet on 18th
December 2015.
JVW noted the uncertainty regarding the WG pledge agreement and commented that it is
not acceptable for the Council to be faced with such uncertainty so close to determining the
budget.
JH explained that the reality is, in very recent meetings with WLGA and ADEW, it has been
stated that the pledge agreement is for a fixed period of time, currently to the end of
2015/2016, which has been agreed with the Minister by LA’s. There has been no formal
agreement for this to be extended further. The Government is striving to push LA’s to
maintain spending and this should be seen as an assertion that the money ought to be
spent. Within Newport it is difficult for schools to see, however the LA are putting 2.65% into
school budgets. Within a lot of authorities, any increase of NI comes out of the school
budget. In summary there is a degree of uncertainty, however in Newport we are more than
meeting the commitment if one were to be in place.
JW commented that this needs to be qualified for schools to understand as Newport has
funded education at one of the lowest levels in Wales.
JH agreed with JW, confirming this can be looked into and that Newport spends on
Education lower than the expected SSA from WG.
DR questioned whether the 2.56% increase included national insurance and total reward etc,
to which MF answered yes.
It was agreed that the Forum feels that this settlement raises considerable concerns and that
there will be a point where the provision of sources will clash with the improvement agenda,
where the lack of provision of adequate resources will hamper the development of the
improvement agenda..
With regard to the budget proposals in the paper MF highlighted item 13 of the report
relating to the requirement of an investment specifically targeted at Maes Ebbw School. The
number of pupils attending this school has grown substantially over the years and as a result
the school is at full capacity with additional children still requiring places. Therefore an
investment will be looked into over the next year or so.
MF explained that Appendix 1 of the attached papers demonstrates the councils current
proposal to schools funding and that demographics for 16/17 and 17/18 have been removed.
MF informed the Forum that Appendix 2 of the attached papers has picked up education
efficiency and includes details surrounding the business case for ceasing funding for Specific
Learning Difficulties (SpLD), which is currently out to consultation. Page 2 identifies the
budget savings through the years and each year these have to be taken out of the budget
too.
A conversation ensued with a number of concerns raised by BC, SD, DR, HV and AM
regarding this proposal. The main concerns raised were as follows;
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The service provided by the SpLD funding is extremely valued and is used by, in the region
of 300-400 pupils across the city every year.
Whilst the possibility of basing this work within schools could be explored, schools do not
have the funding to address this within their own budget and very few staff would be able to
pick up the highly specific level of support that is required as unfortunately the initial teacher
training does not cover this.
On some occasions Tribunals have written into SEN statements that this support is required
and therefore where would schools stand legally if they are unable to provide this.
The negative impact on teaching staff acquiring higher workloads is a reality not a
perception.
FSM pupils would be doubly disadvantaged.
Intervention programmes at KS2 are no longer sustainable.
The business case does not identify the impact on the pupils involved which should be first
and foremost the priority.
Schools will be unable to keep to the recommended ratios and unable to achieve the
standards that are expected.
JH and VG informed the Forum that the Council have not volunteered this option. Due to the
tight financial position, the Council have to offer some saving and unfortunately SpLD and
ALN advisory services are in fact the only non-statutory service left. It should be recognised
that the business case is presented as a proposal and therefore schools may wish to draw
their attention to this particular area. If the service is really valued, an option could be for this
to be bought, even partly if not at all.
It was confirmed that the report would be going to Cabinet on 15th February 2016, however
an Informal Cabinet was being held prior to this on 21st January 2016 for which any
responses the schools felt were necessary could be included on that.
JW informed the Forum on behalf of the 8 secondary heads, that they had already written to
Cabinet to highlight that when the budget is set the LA will face all 8 secondary schools with
a deficit which will vary from £200,000 - £400,000. This will impose a minimum of 54 teacher
redundancies. Additionally, Duffryn High School are currently presented with a problem that
with a deficit of this magnitude, they are unable to replace the Head of Performance Arts
teacher which will result in drama and performing arts no longer being available to KS4
students.
JVW concluded that the Forum asks for the Cabinet to consider this proposal very
thoroughly and the impact this will have on the children. It was unanimously agreed that
Forum is opposed to this proposal.
The Forum considered the ISB Balances 2014/15 that were circulated before the meeting.
BL commented that the balances did not appear to be a true reflection, for example 1
comprehensive has jumped from almost £300,000 deficit to an almost £100,000 balance and
1 primary has jumped to a £132,512 balance from £0, following an amalgamation.
JW expressed concerns that children have one shot at an education however this budget will
deprive the children of Newport of receiving a good education and will not sustain our
position in the table. Additionally, in terms of obtaining pay increases for staff, where would
schools stand in legal terms with a deficit? This could result in potential conflict between
schools and staff unions, which is something that has already happened in England recently.
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CONSULATION COMMENT FOR CABINET REVIEW
The schools forum have carefully considered the Councils budgetary position for 2016/17
and beyond and make the following comment for consideration following the consultation
period.
With regard to the Councils proposal on school overall funding, ie an addition to the base of
£2.3m in relation to National Insurance increases and the effects of Pay and Grading, forum
would bring to the attention of Cabinet that whilst the additions are welcome, they fail to
recognise the substantial pressures being faced by the school sector, especially with regard
to substantial demographic increases, pay awards for both teaching and non-teaching staff,
increased teacher’s pension costs, and other general inflationary increases.
There are concerns that children have one shot at an education however this budget will
deprive the children of Newport of receiving a good education and will not sustain Newport
or schools positions in their improvement tables.
With specific regard to the budget proposal to cease funding for SPLD and ALD Advisory
Services, forum appreciates that these services may be non-statutory. However they are
services which are greatly valued by schools and significantly offer children who require this
specific support greater opportunity to improve than otherwise would be the case. To
consider that schools have the capacity to absorb this type of work, when they too are facing
financial and improvement pressures is at this time inappropriate as there is a lack of
expertise and capacity within schools.
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Appendix 4 - Public responses to budget consultations 2015/16
Budget Proposals 2016-17 Results
There were a total of 230 surveys completed along with a number of additional letters and petitions
from individuals and organisations regarding specific proposals (see Appendix A). Note that we also
received comments on proposals that were not part of the public consultation, which have been
passed onto the relevant Cabinet Member.
The results of the online public consultation on the 2016-17 budget proposals have been split into
the following sections:
People (9 proposals);
Place (6 proposals);
Corporate (6 proposal); and
Non-Service (4 proposals)
The results of the consultation are as follows:
Basic Information
Question 0a: What gender are you?
Male
Female
Number of people
83
140
Percentage of people
37.22%
62.78%
NB: There were 7 no responses to question 0a.
Question 0b: How old are you?
0-10 years old
11-17 years old
18-24 years old
25-34 years old
35-44 years old
45-54 years old
55-64 years old
65-74 years old
75+ years old
Number of people
2
7
37
78
58
29
16
1
0.88%
3.07%
16.23%
34.21%
25.44%
12.72%
7.02%
0.44%
NB: There were 2 no responses to question 0b.
NCC Budget 2016-17 proposal - summary of responses
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Question 0c: What area of the city do you live in?
Allt-Yr-Yn
Alway
Beechwood
Bettws
Caerleon
Number of
people
20
5
14
4
17
Percentage
of people
8.93%
2.23%
6.25%
1.79%
7.59%
Malpas
Marshfield
Pillgwenlly
Ringland
Rogerstone
Number of
people
10
2
9
12
29
Percentage
of people
4.46%
0.89%
4.02%
5.36%
12.95%
Gaer
9
4.02%
Shaftesbury (Crindau)
7
3.13%
Graig
11
4.91%
St Julians
11
4.91%
Langstone
13
5.80%
Stow Hill
5
2.23%
Llanwern
4
1.79%
Tredegar Park (Duffryn)
9
4.02%
Lliswerry
27
12.05%
Victoria (Maindee)
6
2.68%
Ward
Ward
NB: There were 6 no responses to question 0c.
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Section 1: People
Question 1: Do you want to review and comment on the 9 ‘People’ proposals?
Number of people
Yes
174
84.06%
No
33
15.94%
NB: There were 23 no responses to question 1.
Question 2a: Do you agree with Proposal EDU01 – Ceasing funding for SpLD (Specific Learning
Difficulties) delegated services. Ceasing or partially ceasing funding for the AEN (Additional
Educational Needs) delegated service.
Yes
No
Not Sure
Number of people
26
145
17
13.83%
77.13%
9.04%
Question 2b: Do you think this proposal is clearly explained?
Fully
Partly
Not at all
Number of people
47
74
61
25.82%
40.66%
33.52%
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Summary of comments received for EDU01 - Ceasing funding for SpLD delegated services. Ceasing
or partially ceasing funding for the AEN delegated service.
This proposal received the most comments through the online survey and was also the subject of a
petition with 1,136 signatures. The proportion of ‘I do not agree’ responses was the highest in the
consultation at over 77%. 33.5% of respondents who thought that the proposal was not at all
explained.
The responses appear to come from a range of backgrounds and included a high proportion of
parents whose children use, or have used the services, some school teachers who have worked in
partnership with the service.
The main concerns relate to the impacts on the school pupils using the service and in particular the
view that these are relatively vulnerable and need additional support in order to have a chance of
receiving an adequate education. The difference the services have made to children’s learning was
highlighted in a number of ‘first hand’ comments. Concerns were also expressed that proposal
would place greater pressure on teachers in having to take more time to respond to the needs of
pupils with special educational needs/additional educational needs who were no longer receiving
specialist support, and that this could have a wider impact on classes and attainment. There was a
concern that the savings represented short term savings, but would result in increased costs, poorer
outcomes in the long term e.g. schools might need to buy-in specialist support services.
Furthermore a number of responses suggested that there would be a potential long term knock on
effect on other council services and public services. Some responses suggested that exclusions
would rise as a result, or that the drive to support inclusive mainstream education of pupils with
SEN/AEN would be compromised. Many of the responses highlighted the value and expertise of the
service and the staff delivering it. It was mentioned that the proposal would impact on all Newport
primary schools.
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Question 3a: Do you agree with Proposal SSA10 – Telecare.
Number of people
Yes
76
48.72%
No
39
25.00%
Not Sure
41
26.28%
Number of people
Fully
52
34.67%
Partly
54
36.00%
Not at all
44
29.33%
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Summary of comments received for SSA10 - Telecare
The consultation responses indicate a positive response to this proposal with over 48% in agreement
against 25% not in agreement, however it should be noted that over 24% were not sure. This
uncertainty was also mirrored in the relatively high number of responses that indicated that they did
not understand the proposal either partly or fully. A number of responses said that they did not
know what the telecare service is and what the proposal involved for service users, which
presumably explains the relatively high number of ‘not sure’ responses.
Whilst the responses were mostly positive the comments received tended to be more negative,
which is fairly typical with opinion surveys. The most common theme was that the recipients of
telecare services are often vulnerable and more likely to be frail. It was also suggested that a
reduction in service could result in increased costs for residential care packages as people are less
able to live independently and that there would be an increased impact on adult social work teams.
Question 4a: Do you agree with Proposal SSA11 – Modernisation of Transport Provision.
Number of people
Yes
80
50.63%
No
41
25.95%
Not Sure
37
23.42%
Number of people
Fully
57
38.26%
Partly
53
35.57%
Not at all
39
26.17%
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Summary of comments received for SSA11 - Modernisation of Transport Provision.
Over half of the consultation responses received agreed with this proposal, with nearly 26% not
agreeing and 22% not sure. 38.2% of responses indicated that they thought the proposal was fully
explained which meant that over half thought it was only partly or not at all explained. There were
15 comments relating to this proposal. A number of the comments supported the need for a review
of the model for transport services but other comments also suggest that the impact on clients and
how the savings will be made was unclear.
Question 5a: Do you agree with Proposal CFS01 – To close Brynglas bungalow children’s residential
unit and sell excess capacity to neighbouring local authorities.
Number of people
Yes
59
38.56%
No
58
37.91%
Not Sure
36
23.53%
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Number of people
Fully
49
35.25%
Partly
59
42.45%
Not at all
31
22.30%
Summary of comments received for CFS01 - To close Brynglas bungalow children's residential unit
and sell excess capacity to neighbouring local authorities.
Responses to this proposal indicate a relatively mixed picture with those agreeing at 38.5%, not
agreeing at around 37.9% and not sure at 23.5%. In total there were 153 responses of which 35%
thought the proposal was fully explained.
Comments received included concerns that demands for beds from Newport children was uncertain
and that Newport children should be assured of local capacity rather than costly and disruptive out
of county placements. Some comments suggest that the proposal could be a short term saving
which might result in increased costs in the longer term unless residential placements can be
reduced through increased foster care placements. Generally the comments received expressed
concerns about this proposal which is contrary to the small majority of responses who said they
agreed it.
Question 6a: Do you agree with Proposal CFS02 – Review of Integrated Family Support Service.
Number of people
Yes
33
22.00%
No
93
62.00%
Not Sure
24
16.00%
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Number of people
Fully
50
37.04%
Partly
55
40.74%
Not at all
30
22.22%
Summary of comments received for CFS02 - Review of Integrated Family Support Service.
A high proportion of responses did not agree with this proposal with ‘no’ responses at 62%
compared to ‘yes’ responses at 22%. The responses indicating that this proposal was fully explained
was around 37%. In line with these figures the comments received were generally opposed to this
proposal most commonly suggesting that there is a concern stated in the business case that the
short term savings in prevention will be outweighed by increased future costs for acute intervention
and an increase in the number of children ‘looked after’ by the authority. Several responses referred
to the risk stated in the business case that the authority may be unable to meet its statutory child
protection duties. The perceived increased risk to vulnerable children and families was generally
considered unacceptable. Some responses referred to the relatively small savings proposed against
the increased future risk.
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Question 7a: Do you agree with Proposal CFS03 – Reduction in Social Worker posts.
Number of people
Yes
35
22.15%
No
108
68.35%
Not Sure
15
9.49%
Number of people
Fully
64
45.71%
Partly
48
34.29%
Not at all
28
20.00%
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Summary of comments received for CFS03 - Reduction in Social Worker posts
A high proportion of responses did not agree with this proposal with ‘no’ responses at over 68.3%
compared to ‘yes’ responses at under 22.1%.
Almost all of the 34 comments received through the online survey were opposed to the proposal.
The most commonly cited reasons related to the view that Social Services are already overstretched
and are believed to be at a risk of failing to protect the children and families they work with and that
a reduction in resources would further exacerbate this situation. Some responses highlighted the
risk of catastrophic consequences of children ‘slipping through the net’. The relatively high levels of
deprivation in some of Newport’s communities were mentioned as relevant in sustaining resources
in social services. A common theme was that a reduction in social work capacity would result in a
worsening of conditions with increased risk and potential increases in long term costs. Impacts on
morale, turnover of posts and increased sickness absence were also mentioned.
Question 8a: Do you agree with Proposal CFS05 – Review and reduction of Preventions Team.
Number of people
Yes
43
28.67%
No
73
48.67%
Not Sure
34
22.67%
Number of people
Fully
52
40.00%
Partly
46
35.38%
Not at all
32
24.62%
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Summary of comments received for CFS05 - Review and reduction of Preventions Team.
The majority of responses, 48.6%, disagreed with this proposal with 28.6% in agreement and at over
22% a relatively high proportion were not sure. More than half of respondents thought that the
proposal was either partly or not at all explained.
Almost all of the comments received were opposed to the proposal. The most common reasons
were the belief that preventions is vital in lowering the risk of vulnerable families requiring more
acute interventions, particularly in the context of additional proposals to reduce the number of
children’s social workers. This was generally thought to be a fairly minimal short term saving which
would risk more costly long term interventions in the future. Comments suggested the preventions
work is cost effective and helps ensure a fairer and more equitable society. The impact of reducing
resources allocated to prevention work on other services e.g. youth offending, mental health etc was
raised. Preventions was mentioned as being the key source of support for families where there is no
acute child protection concern and was therefore vital in risk reduction.
Question 9a: Do you agree with Proposal CFS06 – Review and reduction of Fostering & Matching
and Placement Service (MAPS) Budgets.
Number of people
Yes
38
25.33%
No
91
60.67%
Not Sure
21
14.00%
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Number of people
Fully
55
41.98%
Partly
56
42.75%
Not at all
20
15.27%
Summary of comments received for CFS06- Review and reduction of Fostering & Matching and
Placement Service
The majority of responses, around 60.6%, disagreed with this proposal with 25.3% in agreement and
14% not sure. More than half of respondents though that the proposal was either partly or not at all
explained.
Concerns were expressed that this proposal alongside reductions in residential capacity, social work
teams and preventions could increase risk to vulnerable young people and result in more out of
county placements. The suggestion in the business case that there might be “reduced placement
options” was regarded as a concern. Some comments indicated that a review of the service model
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and the use of independent providers could be positive. The need for good, stable foster care
placements was generally regarded as important for the wellbeing of vulnerable young people and
whatever option was taken forward will need to ensure that this is prioritised.
Question 10a: Do you agree with Proposal CFS07 – Reduction in Voluntary Sector Contracts.
Number of people
Yes
83
55.33%
No
38
25.33%
Not Sure
29
19.33%
Number of people
Fully
62
45.93%
Partly
49
36.30%
Not at all
24
17.78%
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Summary of comments received for CFS07 - Reduction in Voluntary Sector Contracts
The majority of responses at 55.3% were supportive of this proposal, with 25.3% not in agreement
and just over 19% not sure.
The comments received were mixed with some suggesting that this represented another proposed
cut to vital children’s services, whilst others were more open to the notion of reviewing contracts to
ensure best value, and effective service delivery. Several comments stressed that quality of service
was more important than costs of service. Others suggested that the third sector can provide better
value for money than in house provision.
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Section 2: Place
Question 11: Do you want to review and comment on the 6 ‘Place’ proposals?
Number of people
Yes
108
67.50%
No
52
32.50%
Question 12a: Do you agree with Proposal STS01 – Bus routes: Removal of financial support on
evenings and Sundays.
Yes
No
Not Sure
Number of people
61
65
15
43.26%
46.10%
10.64%
Fully
Partly
Not at all
Number of people
64
52
15
48.85%
39.69%
11.45%
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Summary of comments received for STS01 – Bus routes - Removal of financial support on evenings
and Sundays
There was a mixed response to this proposal with a narrow majority of 46.1% against the proposal,
43.2% agreeing and 10.6% not sure. Most people though the proposal was fully explained.
The main concern was that the withdrawal of subsidy support for specified bus routes might
compromise the success of the regeneration of the city centre, particularly as the services are on
Sunday’s and evenings. Furthermore there were concerns about the impacts on people who are
dependent on bus services for work, social and personal reasons. Some responses suggested that a
reduction in these services could compound disadvantage and social exclusion. Other responses
suggested that this proposal, whilst regrettable is more justifiable than some of the other proposals.
Several comments suggested that public transport needs to be prioritise over car use for
environmental, congestion and parking reasons with one particular comment suggesting that
sustaining bus services would justify increased council tax.
Question 13a: Do you agree with Proposal STS14 – Land drainage and canal maintenance – review
of services.
Number of people
Yes
35
25.55%
No
79
57.66%
Not Sure
23
16.79%
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Number of people
Fully
59
46.83%
Partly
54
42.86%
Not at all
13
10.32%
Summary of comments received for STS14 - Land drainage and canal maintenance - review of
services
The majority of responses, at 57.6% disagreed with this proposal, with 25.5% in agreement and
16.7% not sure. Most response indicated that this proposal was clearly explained.
The main concern expressed in most of the comments received was the concern that a reduction in
planned maintenance, alongside changing weather patterns, would result in increased flooding risk,
as experienced in other parts of the UK. Several responses suggested that canal maintenance is
already inadequate in Newport and that a further reduction would mean people would stop using
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the canal for leisure purposes. Some responses suggested that voluntary groups might become
increasingly involved in canal maintenance.
Question 14a: Do you agree with Proposal STS18 – Street Cleansing – review and restructure of
services.
Number of people
Yes
54
38.85%
No
70
50.36%
Not Sure
15
10.79%
Number of people
Fully
67
52.34%
Partly
43
33.59%
Not at all
18
14.06%
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Summary of comments received for STS18 - Street Cleansing - review and restructure of services
The majority of responses, at 50.3% disagreed with this proposal, with 38.8% in agreement and
10.7% not sure. Most responses indicated that this proposal was clearly explained.
Almost all of the comments received were opposed to this proposal with many suggesting that
Newport already has a problem with litter and street cleansing and that this proposal would make
things worse. Some responses suggested that the proposal could compromise Newport’s growing
appeal as a visitor destination.
Question 15a: Do you agree with Proposal STS20 – Grounds Maintenance Service Review.
Number of people
Yes
85
62.04%
No
39
28.47%
Not Sure
13
9.49%
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Number of people
Fully
83
64.84%
Partly
35
27.34%
Not at all
10
7.81%
Summary of comments received for STS20 - Grounds Maintenance Service Review
The majority of responses, at 62%, agreed with this proposal, 28.4% not in agreement and 9.49% not
sure. Over 64% thought that the proposal was fully explained.
The comments received show a mixed response to this proposal with a split between those who
thought a reduction on grass cuts would make neighbourhoods untidy, whilst others were
supportive of wild flower planting and allowing grass areas to revert to wildlife habitats. Several
responses suggested that mowing frequencies were excessive and that short grass was being
needlessly cut.
Question 16a: Do you agree with Proposal STS26 – Waste – Review of charging for special
collections.
Number of people
Yes
88
63.77%
No
34
24.64%
Not Sure
16
11.59%
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Number of people
Fully
73
57.94%
Partly
44
34.92%
Not at all
9
7.14%
Summary of comments received for STS26 - Waste - Review of charging for special collections
The majority of responses, at nearly 63.7%, agreed with this proposal, 24.6% not in agreement and
11.5% not sure. Over 57% thought that the proposal was fully explained.
Most of the comments received expressed concerns that increased collection charges could result in
more flytipping, which would be a ‘false economy’. A small number of comments thought that an
increase would have no impact on flytipping and that people who would previously arranged a
collection would not become flytippers due to a small increased charge. The need for discretionary
rates for low income households was mentioned.
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Question 17a: Do you agree with Proposal RIH18 – Restructure of the Council’s core-funded Youth
Service.
Number of people
Yes
55
41.04%
No
52
38.81%
Not Sure
27
20.15%
Number of people
Fully
54
43.55%
Partly
51
41.13%
Not at all
19
15.32%
Summary of comments received for RIH18 - Restructure of the Council's core-funded Youth Service
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A slight majority of responses at 41% were supportive of this proposal with 38.8% disagreeing and
20.1% not sure. 43.5% of people thought that the proposal was fully explained.
The comments received were generally concerned about a reduction in youth service resources. The
main reasons cited included the importance of youth work in preventing future social problems e.g.
anti-social behaviour, involvement in gangs, community cohesion etc.
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Section 3: Corporate
Question 18: Do you want to review and comment on the 6 ‘Corporate’ proposals?
Number of people
Yes
94
65.28%
No
50
34.72%
Question 19a: Do you agree with Proposal CSDI002 – Customer Services – Reduction in Front Line
Staffing.
Yes
No
Not Sure
Number of people
64
61
10
47.41%
45.19%
7.41%
Fully
Partly
Not at all
Number of people
70
46
9
56.00%
36.80%
7.20%
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Summary of comments received for CSDI002 - Customer Services - Reduction in Front Line Staffing
A slight majority of responses at 47.4% were supportive of this proposal with 45.1% disagreeing and
7.4% not sure. 56% of people thought that the proposal was fully explained.
The comments received about this proposal were mixed. Whilst most thought that the customer
waiting times were already long and a further reduction in staffing would make this worse, however
other responses suggested that this would be an acceptable saving and the minor inconvenience
could be mitigated through more development of online services. Several responses opposed to this
proposal suggested that the estimated savings were low and would not justify the inconvenience
caused.
Question 20a: Do you agree with Proposal CSDI013 – Review of service delivery model and
management saving.
Number of people
Yes
85
65.38%
No
22
16.92%
Not Sure
23
17.69%
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Number of people
Fully
59
47.97%
Partly
46
37.40%
Not at all
18
14.63%
Summary of comments received for CSDI013 - Review of service delivery model and management
saving
The vast majority of responses at 65.3% agreed with this proposal, with 16.9% disagreeing and
The comments received about this proposal were mixed. Some comments thought partnership
working with other authorities would be beneficial but others raised concerns that the projected
savings from such projects are rarely achieved. It was also suggested that if this project is
progressed the partners should use common ICT applications to achieve savings rather than
continuing to use their legacy systems.
Question 21a: Do you agree with Proposal LR01 – Members Neighbourhood Allowances.
Number of people
Yes
80
59.26%
No
22
16.30%
Not Sure
33
24.44%
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Number of people
Fully
70
55.56%
Partly
38
30.16%
Not at all
18
14.29%
Summary of comments received for LR01 - Members Neighbourhood Allowances
The majority of responses were in favour of this proposal at 59.2%, with 16.3% not in favour and
The comments received about this proposal were mixed. Some comments indicated that they
thought the allowances were used for political purposes whilst others thought they supported
important local projects. Some comments suggested the total saving was minimal and not worth
progressing whereas others thought the money was spread too thinly across wards to be
worthwhile. A number of the responses suggested that it was not clear what the money had been
spent on previously and that the allowances if continued should be more open and transparent.
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Question 22a: Do you agree with Proposal LR02 – Cease the provision of all City Events.
Number of people
Yes
44
31.88%
No
80
57.97%
Not Sure
14
10.14%
Number of people
Fully
68
56.20%
Partly
40
33.06%
Not at all
13
10.74%
Summary of comments received for LR02 - Cease the provision of all City Events
The majority of responses at 57.9% disagreed with this proposal, with 31.8% agreeing and 10.14%
not sure. 56.2% of people thought that this proposal was fully explained.
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The comments received were mixed but most suggested that city events were important in
attracting visitors, generating trade and creating the vibrant image needed to take forward
regeneration and encourage economic growth. Other comments were more critical of the events
and suggested they did not generate enough of a return on investment. A number of responses
indicated that the Council should work more in partnership with other organisations and local
businesses to put on events e.g. the Business Improvement District and Newport Live and that part
funding and sponsorship options should be considered before completely ceasing funding. It was
also suggested that whilst they are beneficial, city events are less of a priority than essential services
e.g. social care and education.
Question 23a: Do you agree with Proposal LR011 – Reduction in discretionary Tourism budget.
Number of people
Yes
83
60.14%
No
43
31.16%
Not Sure
12
8.70%
Number of people
Fully
74
60.66%
Partly
40
32.79%
Not at all
8
6.56%
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Summary of comments received for LR011 - Reduction in discretionary Tourism budget
The majority of responses at 60.1% supported this proposal, with 31.1% disagreeing and 8.7% not
sure. 61.9% of people thought that this proposal was fully explained.
The comments received on this proposal were mixed. Whereas some comments felt very strongly
that investment in tourism was vital to achieve economic growth and job creation, others felt that
the sum spent was insignificant and probably had little impact. Some comments were concerned
that spend on tourism should be considered an investment not a cost. Other comments thought
that tourism promotion was the responsibility of businesses and other organisations like Visit Wales,
rather than the council. There was a conflict of opinions on the potential for tourism growth in
Newport with some responses suggesting a major potential whilst others thought there was little
potential.
Question 24a: Do you agree with Proposal PBC06 – Reduction in the overall budget allocated
through grants to voluntary sector organisations.
Number of people
Yes
58
41.13%
No
52
36.88%
Not Sure
31
21.99%
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Number of people
Fully
65
49.24%
Partly
45
34.09%
Not at all
22
16.67%
Summary of comments received for PBC06 - Reduction in the overall budget allocated through
grants to voluntary sector organisations
A small majority of responses at 41.1% supported this proposal, with 36.8% disagreeing and 21.9%
not sure. 49% of people though that this proposal was fully explained.
Most of the comments received on this proposal expressed concerns that a reduction in voluntary
sector funding would impact on the sustainability of these organisations and impact on their service
users who are often vulnerable in some way. A further concern was that the resulting reduction in
voluntary sector capacity would be a ‘false economy’ that would just pass on the costs and impacts
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back on to the Council or other public services. A number of comments emphasised the high value
for money the voluntary sector is thought to offer, which is based on the input of volunteers. The
responsiveness to local need and the potential for the greater personalisation of services which the
voluntary sector was thought to provide was also mentioned. The context of public sector cuts and
a greater expectation that the voluntary sector will ‘step in’ to provide services was also mentioned.
Please note the following feedback was received:
44 signed letters were received objecting to the proposed reduction in the grant paid to the
Citizens Advice Bureau. These letters can be accessed through the additional comments document
(appendix A).
A petition was received signed by visitors to the Canal Centre (73 signatures) objecting to the
proposed reduction in the grant paid to 14 Locks.
A further petition from Newport residents objecting to the proposed reduction in the grant paid to
14 Locks (374 signatures)
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Section 4: Non Service
Question 25: Do you want to review and comment on the 4 ‘Non Service’ proposals?
Number of people
Yes
108
71.05%
No
44
28.95%
Question 26a: Do you agree with Proposal NON001 – Council Tax Rebate Reduction.
Yes
No
Not Sure
Number of people
70
27
39
51.47%
19.85%
28.68%
Fully
Partly
Not at all
Number of people
60
36
30
47.62%
28.57%
23.81%
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Summary of comments received for NON001 - Council Tax Rebate Budget Reduction
The majority of responses supported this proposal at 47.6% with 19.8% disagreeing and 28.6% not
sure. The not sure responses are relatively high and the comments received also indicated a low
level of understanding with a number of comments relating to council tax levels more generally and
a significant number saying they did not understand the proposal.
Question 27a: Do you agree with Proposal NON002 – Invest to Save Reserve.
Number of people
Yes
63
46.67%
No
14
10.37%
Not Sure
58
42.96%
Number of people
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Fully
43
33.86%
Partly
32
25.20%
Not at all
52
40.94%
Summary of comments received for NON002 - Invest to Save Reserve
Whilst most respondents agreed with this proposal at 46.6% it should be noted that 42.9% of
respondents were not sure and over 40% of responses indicated that the proposal was “not at all”
explained. The comments received were mixed and also indicate that the proposal was unclear and
some people did not understand the purpose of the invest to save fund and how it differs from
general reserves. Some responses thought the fund was necessary to help fund transformation and
sustainable services in the future whilst others thought that the money should be spent now to
maintain current service provision. The responses seem to suggest that if Newport City Council
decides to continue investing in this fund that it should explain to the public what this fund is and
what it is used for.
Question 28a: Do you agree with Proposal NON004 – Minimum Revenue Provision / Interest
Budget Reduction.
Number of people
Yes
62
46.97%
No
11
8.33%
Not Sure
59
44.70%
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Page 83
Number of people
Fully
39
32.23%
Partly
29
23.97%
Not at all
53
43.80%
Summary of comments received for NON004 – Minimum Revenue Provision / Interest Budget
Reduction
This proposal received the highest ‘not sure’ response in the consultation (44.7%) and 43.8% of
people indicated that it was ‘not at all’ explained. There were only 9 comments received and these
also suggested that it was unclear what the proposal was and what the impact would be.
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Page 84
Question 29a: Do you agree with Proposal NON005 – Council Tax Increase.
Number of people
Yes
40
27.03%
No
101
68.24%
Not Sure
7
4.73%
Number of people
Fully
83
63.85%
Partly
29
22.31%
Not at all
18
13.85%
Page 93
Page 85
Summary of comments received for NON005 - Council Tax Increase
Most responses indicated they were not supportive of the proposed increase in council tax with
68.2% against, 27% in agreement and 4.7% unsure. 63.9% of people thought that the proposal was
fully explained.
The comments were, in the main, opposed to the proposed increase in council tax, with responses
most commonly citing: council tax is already high, the proposed rise is higher than inflation, why is
the Council cutting services whilst increasing taxation, the low rise in wages in recent years and the
better than expected revenue settlement. However some comments did show some support for the
proposal but usually with the proviso that essential services are maintained e.g. services for
vulnerable people, refuse collections. Only one response accepted that council tax levels in Newport
are below the average.
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Page 86
Appendix 4a
Fairness Commission review
Response to 2016/17 Budget & Medium Term Financial Plan
VERY IMPORTANT: NFC sees its role as facilitating a critical reflection
on policy, rather than it being a recommender of policy. Therefore,
selective extracts from this response should not be used to support
particular council policy as if this policy is also being recommended by
the NFC.
January 2016
Background:
We very much welcome the invitation from Council to be part of the consultation
process for the above. In times of severe economic austerity especially, we believe it
is vital that the value of fairness is discussed critically and openly in public debate, so
we can examine in a meaningful way how this principle is applied to Local
Government policies and practices, and in the setting of its priorities. However, it is
also important to highlight what has already been stated in our full report to Council
in November 2013 (see our website http://www.newportfairnesscommission.org/) –
that the Fairness Commission is not an elected body and is not a special interest
group, and therefore, in our view, its role is not to make specific policy and practice
recommendations. We fully recognise and respect that some Fairness Commissions
across the UK have made particular policy recommendations to their Councils.
Nevertheless, the NFC sees its role as facilitating a critical reflection on policy, rather
than it being a recommender of policy. The main aim, then, of the Newport Fairness
Commission (NFC) is to provide policy-makers with a ‘critical lens’ for viewing
fairness, and to encourage public debate which takes fairness seriously as a centrally
important political, economic, and social goal.
It is in the above light that the following response has been made to the Budget
Proposals 2016/17 and Medium Term Financial Plan (MTFP) as detailed in the
December Cabinet Report. It is also important to emphasise that the Appendix to the
following NFC response was presented to the consultation process for the proposed
list of priorities of Council for 2016/18 spending. Clearly, both these consultation
processes (concerning priorities and budget allocations) are related and, as such, the
NFC thought it important to consider these jointly, highlighting where we these
relate when appropriate.
The fundamental principle of fairness and the four parameters of debate
about fairness:
The most fundamental principle guiding the Commission’s thinking on these issues,
and again identified and explored in the full report referred to above, is
that
Council should attend to the needs of those social groupings considered most
vulnerable or disadvantaged across the city, and as a matter of first and immediate
priority. However, although it is extremely important to articulate this principle in
Page 95
broad terms, by itself, this principle is not sufficient when considering the fairness of
specific policies and practices, as a number of important questions and issues remain
unanswered. In response to this problem,
and again as detailed in our full
report, the Fairness Commission has identified four ‘parameters of fairness’, which
provide a framework for understanding and
critically evaluating the specific
policies and priorities set by Council, and the subsequent
debates
and
controversies concerning the substantial meaning of fairness which is open to
much debate.
The four parameters of fairness are identified as follows, and lead to what the
Commission sees as key questions or focal points of debate concerning fairness,
recognising that in relation to specific policies and practices these parameters often
overlap and work in conjunction with each other:
Parameter 1 Equal treatment while recognising difference
Main focal points of debate: When is it fair to treat people the same, and when is it
fair to treat people differently? What groups have priority in Newport, and why?
And, if trade-offs and compromises are to be made between different group
interests’, how should these trade-offs be balanced?
Parameter 2 Mutual obligations between citizens and local government
Main focal points of debate: What is the responsibility of local government to meet
certain needs, and what conditions should apply to citizens, if any? And, which needs
are to be provided universally (i.e. to all citizens) and which needs are to be met, in
part or wholly, by citizens?
Parameter 3 Interdependency and reciprocity within community relations
Main focal points of debate: What is the value of participation in community life?
How are citizens enabled to positively participate in the life of the community
over periods of time, for their own and others’ benefit? And, how and when
are
equal opportunities and ‘life chances’ facilitated, so enabling citizens to
participate effectively?
Parameter 4 Transparency and accountability in decision-making
Main focal points of debate: How does Council ensure that the procedures for
decision-making are fair, consistent and transparent? How does Council convey
clearly and concisely to citizens the main decisions being considered and made? And,
how are mature and meaningful channels of communication and exchange of views
facilitated between the NCC and citizens?
So given the above parameters of fairness, and the questions which
how does the NFC view the 2016/17 budget proposals?
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arise,
General assessment of 2016-17 budget proposals and medium to longterm financial plan from the Newport Fairness Commission (NFC):
The NFC concludes that the austerity measures applied in previous years, combined
with the 16/17 proposed cuts and future austerity until at least 2019/20, is already
producing a profound sea-change in how Local Government is able to provide
services for its community. Moreover, the NFC concludes that in matters relating to
the principle of fairness (however this principle is substantially conceptualised),
various pressures are now being exerted on the most vulnerable and disadvantaged
sections of the community which threaten to undermine fundamental values
associated with the principle of fairness.
The key question arising from the above, then, is whether the proposed cuts are
broadly sustainable in the medium to long-term – that is, consistent with the
traditional role of Local Government to provide for the needs of its citizens? Our
main concern is that increasingly services are being delivered by non-local
governmental sources which raise a number of further questions about their longterm sustainability (as these providers come and go), their democratic
accountability to local populations, and the quality of service provision etc.
Most notably, the fundamental value guiding the Commission’s thinking on these
issues, identified and explored in the NFC full report referred to above, is that
Council should attend to the needs of those social groupings considered most
vulnerable or disadvantaged across the city, and as a matter of first and immediate
priority. However, although we believe that Newport City Council to its credit is (and
has been) endeavouring to fulfill this value as its main focus, the extent of the cuts
means that we are now increasingly witnessing the needs of these vulnerable groups
being traded-off against each other, as the NCC tries to balance its books (and see
Parameter 1 above). So, in line with our concerns with last year’s budget proposals, it
seems that those vulnerable groups defined as having ‘moderate needs’ are being
traded-off against those vulnerable groups defined as having ‘severe needs’; those
vulnerable groups defined as benefitting from ‘early prevention’ are being traded off
against those vulnerable groups defined as having ‘acute needs’; those vulnerable
groups defined as at ‘moderate risk’ are being traded-off against those vulnerable
groups defined as at ‘most risk’; and, those vulnerable groups which can be targeted
by Council with appropriate powers of intervention (but with no duties of
intervention) are now being traded-off against those vulnerable groups where
statutory obligations apply.
The key question arising from the above, then, is whether Council is able to manage
the harms and risks to those groups defined as vulnerable which are at the same
time experiencing front-line cuts in service provision, such as, reductions in social
work support, youth work provision, voluntary sector contracts, funding for those
with specific learning difficulties, and so on? Our main concern is that Council, in
having to respond to such extensive cuts, administered year-on-year, is unable to
avoid diminishing its standards toward those groups which come under even
Council’s statutory obligations, assuming the above trade-offs between vulnerable
groups within these categories become increasingly intense.1
It is also important to note that in the setting of its priorities (as detailed in the Appendix
here) Council is engaging in these trade-offs year-by-year (with switching emphasis apparent
1
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Following from the above, the main problem, according to the NFC, is that failing to
prevent deterioration for those defined as being in ‘moderate need’, or who are
defined as ‘moderately vulnerable’, risks escalating this group’s needs and so making
them become more severely in need as a result. Inevitably then, these trade-offs are
in danger of increasing costs in the medium and long-term as people enter the ranks
of those whose health and broader social conditions qualify for statutory services.
Moreover, these trade-offs occur in a variety of forms,2 with the common theme
being that many vulnerable citizens are at risk of becoming more vulnerable as a
result of cuts in services, and as the Council concentrates its diminished resources on
a reduced number of people.
The NFC acknowledges that, to some extent, the effects of these austerity measures
are alleviated by the activities of the voluntary/third sector, and other changes in the
organisation of care and services, such as the encouragement of independent living
for older people (and see Appendix here). For example, one benefit of third sector
services is that these often provide ‘added value’ and provide individuals with choice
in services - something people value and report supports better recovery,
independent living and choice (and see Parameters 2 and 3 above). However, the
parallel cuts in grants and contracts to the voluntary sector as proposed by the
2016/17 budget and the increasingly limited resources available for those required to
live independently, means that in the Fairness Commission’s view these alleviations
will, in many cases, be inadequate in meeting the needs of those people in these most
vulnerable groups.
The key question arising from the above, then, is whether Council is able to take
advantage from the possible ‘added value’ in the restructuring of services, and to
provide consistent leadership in envisaging and promoting a more prosperous
future for Newport? Our main concern is that the increasing pressures of what
might be called short-termism (not helped by the way budget rounds are managed
via the Welsh Government) and the imperative to ‘balance books’ annually, will
in each year between groups defined as vulnerable), in an effort to manage these risks. The
question is precisely how these risks or potential harms are prioritised in the context of cuts
in budget allocations, and, whether there is an emerging mismatch between on-going
Council priorities and the allocation of budgets? It is probably too early to state
unequivocally whether there is a mismatch or not in this regard, but it is incumbent upon
Council to monitor this possibility during its impact evaluations, particularly in respect to
the values of equality and fairness, data regarding ward profiles, and so on (and see
Parameter 1 here). In addition, useful tools are being developed to assess the impact of Local
Government cuts on vulnerable and disadvantaged groups, for example, see University of
Glasgow and Joseph Rowntree Foundation (2015). The cost of cuts: A social impact tool
available at https://www.jrf.org.uk/report/cost-cuts-social-impact-tool-local-authorities.
2 These trade-offs also occur in relation to the pay, working conditions, and vulnerability to
job-loss of council employees. So, for example, the commitment to a ‘Living Wage’ being paid
to workers by Newport City Council (reflecting, quite rightly, a commitment to low paid
workers) is traded-off against attempts to reduce wage bills in times of economic austerity,
but which in turn can lead to diminished working conditions, increased workloads as
positions are unfilled, the promise of redundancies, and so on. In a wider context, too, the
Welsh economy generally is very dependent on public sector employment, which then leads
to a compounded problem for the local economy and community when both services and
jobs are cut.
Page 98
inevitably undermine both these capacities in the medium to long-term, as attention
inevitably is focussed on addressing short-term problems rather than providing
more long-term solutions. That is, despite Council’s well-intended efforts to the
contrary.
The Commission is also concerned that the above outcomes combined, risk the
occurrence of a ‘vicious cycle’, where increased deprivation (for certain sections of
the Newport population at least) will require more services, but which will now no
longer be available. It is in this context of decline, which again will put further
pressure on Council services. Therefore, the Commission has concluded that the
austerity measures, alongside these other pressures, may well result in a ‘false
economy’ – that is, where monies are supposedly ‘saved’ in the short-to-medium
term, but where the costs of government (both local and national) augment in the
future, as social and economic problems increase as a result of present cuts in
services.
In addition to the detrimental impact of these austerity measures, other
pressures are also being felt in Newport city which have exacerbated these problems
in trading-off the needs of vulnerable groups, as well as the wider needs and
aspirations of other Newport citizens. For example, via a range of different
indicators, Newport experiences very high rates of deprivation (when compared with
national and even international figures). These rates, combined with the urgent need
for economic regeneration within the City and the wider region, demographic
changes which will likely increase the demand for services in Newport, and the extra
costs of other changing legal requirements placed upon Local Authorities, has also
led and will in future lead to considerable additional pressures on Council services.
Of course, some of these pressures are alleviated by budgetary formulas from the
Welsh Government which ‘favours’ Newport (that is for this budget round and
previously), and that in the long-term at least the economic regeneration for Newport
City will hopefully facilitate a more vibrant local economy, increasing employment,
prosperity and tax revenues. However, the NFC’s assessment is that Newport overall,
and in particular the most deprived and vulnerable groups within Newport, will
suffer increased deprivation in the meantime. And that the increased demand
pressures will not be met by any relatively ‘favourable’ budget allocations from the
Welsh Government.3
This conclusion is consistent with a recently published report from the Public Policy
Institute for Wales PPIW (December 2015). Coping with Cuts: Lessons from English
Councils’ Responses to Budget Reductions. Through a detailed analysis of Local Government
records and budget allocations, this report shows that urban communities and those areas
which are most deprived have experienced the greatest cuts, compared with more rural and
relatively affluent areas. There are a number of reasons for this outcome, but it is at least
partly due to the increased demand in urban areas because of higher population growth, and,
in particular, increases in both young and elderly populations. That these demographic
factors are also a feature of Newport city’s demographic trajectory bodes badly for Newport,
if the patterns in England are being repeated in Wales, which, according to the PPIW, is
likely.
3
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The key question arising from the above, then, is whether Council is able to reverse
this ‘vicious cycle’ and avoid the increased costs in the future as services are cut
presently? Our concern is that the more pessimistic outcome will also undermine
some of the most fundamental principles of fairness outlined in Parameter 3,
namely, the value of participation in community life in relation to economic and
other wider social forms of activity; the ability of citizens to positively participate in
the life of the community over periods of time, for their own and others’ benefit;
and, to facilitate equal opportunities and equal
‘life chances’, enabling citizens
to participate effectively both now and in the long-term.
Moreover, the NFC is also concerned about the high possibility of, what might be
termed, increased cultural deprivation in Newport. This issue relates less to priority
being given to the most vulnerable and disadvantaged groups (although these issues
certainly overlap), and more to how local governments sees their role in relation to
the funding and provision of the cultural infrastructure, and as it is maintained for
the whole of the community. For example, cuts in library, leisure and the arts
facilities in last year’s budgets, combined with this year’s ceasing of provision for all
City events, reductions in tourism budgets, and so on (with the onus being put on
other means of funding outside of local government), for the NFC signifies a radical
change in how councils administer and facilitate the cultural activities of their
communities. The concern is that the important civic role that Councils historically
have often played in enhancing the cultural life of its populace risks being seriously
undermined as a result of these cuts.
The key question arising from the above, then, is whether Council’s understandable
and justifiable focus on providing for the needs of the most vulnerable and
disadvantaged, will nevertheless lead to a degrading of the cultural life of all its
citizens in Newport? Our main concern is that this degradation, in turn, will lead to
increased societal divisions as those who are relatively well-off become increasingly
disconnected from the benefits Local Government can offer them, while, those who
are worse-off are less able to enjoy the benefits of free or subsidised universal
culturally-focussed services.
Finally, and a more positive note, it is important to acknowledge what the NFC sees
as steps forward in Council practices in the wake of these austerity measures being
applied. For example, the consultation process for this round of budgetary proposals
– while subject to the usual alarmingly tight time-constraints imposed by the Welsh
Government, plus the lateness of information being provided by the WG to local
government decision-makers – has improved year-on-year since the NFC’s inception.
The Council’s plan in 2016 to build on the 2015 series of activities and events
intended to provide a wider engagement with the public over Council policy is to be
commended. Hopefully, this consultation process will set in motion an ongoing
‘conversation’ on Local Government spending, savings and future service provision,
which will be much wider and deeper than just ‘agreeing’ or ‘assenting’ to the budget
for the year. In addition, the NFC also notes that some of the austerity measures at
least, will encourage a more imaginative and efficient delivery of services which may
well be beneficial to certain groups of service-users.4 Moreover, as councils have to
Again, this is consistent with the PPIW report above, in that English Councils have
responded to the cuts in four main ways (a) reducing costs through divesting services, and
4
Page 100
break from their more traditional roles in service-delivery other benefits may also
accrue. For example, there are some signs across the UK of a more heightened sense
of citizen obligations in meeting community aspirations and practices which could
lead to beneficial outcomes (and see Parameter 2 above), as well as a more ‘bottomup’ approach to policy and practice development as councils have to address
increased cuts imposed on its budgets (and see Parameter 4 above).
The key question arising from the above, then, is whether and how Council is able to
make its decision-making more accountable and transparent, recognising that
there is often a trade-off between these two aspirations? Our main concern is that
increased transparency usually involves the increased accessibility of information
and data-bases which can, especially in a digital age, feel overwhelming to those
individuals and groups who also seek to hold Council to account for their decisionmaking. We are also concerned that the normal democratic processes of
accountability, via Scrutiny Committees and the like, will come under increasing
strain. This outcome is because, as the cuts take greater effect, and where issues
and problems become more complex and entrenched, those policies and practices
which would have come under scrutiny in more prosperous times, will now more
likely be ignored or at least downgraded in importance.
reducing staff and services, (b) the depletion of reserves to recommended/legal minimums,
(c) changing methods of service-delivery, and (d) increasing Council Taxes. Again, that
Newport City is using all four methods seems typical of Council responses, bearing in mind
though, that these strategies are being increasingly exhausted as cuts are administered yearon-year. It is also the case, again as noted above, that urban areas will tend to be impacted
most, as, for example, councils in these areas are much less able to generate sufficient
income through Council Tax rises given these councils are usually proportionally much more
reliant on Central government funding for their income compared with rural areas.
Page 101
Appendix 5
Service Area Draft Budgets
Summary Revenue Budget
2016-17
PEOPLE
Children& Young People
Adult & Community Services
Education
Schools
PLACE
Regeneration, Investment & Housing
Streetscene & City Services
CHIEF EXECUTIVE
Directorate
Finance
People & Business Change
Law & Regeneration
CAPITAL FINANCING COSTS & INTEREST
Capital Financing Costs MRP
Interest Payable
Interest Receivable
PFI Grants
SUB TOTAL - SERVICE/CAPITAL FINANCING
CONTINGENCY PROVISIONS
General Contingency
Centralised Insurance Fund
Non Departmental Costs
Other Income & Expenditure
LEVIES / OTHER
Discontinued Operations - pensions
Discontinued Operations - Ex Gratia Payments
Levies - Drainage Board, Fire service etc
Non distributed grants
CTAX Benefit Rebates
Charity Rate Relief
TRANSFERS TO/FROM RESERVES
Base budget - Planned Transfers to/(from) Reserves
TOTAL
Funded by
WAG funding (RSG & NNDR)
Council Tax
Council Tax Surplus
TOTAL
2015/16
Current
Budget
£'000
2016/17
Base
Budget
£'000
20,089
38,548
13,721
86,784
159,142
21,024
39,736
13,869
89,835
164,464
9,431
17,519
26,950
8,977
17,111
26,088
578
2,709
6,411
552
2,678
6,371
6,493
16,191
6,474
16,075
10,813
10,786
(778)
8,139
28,960
10,813
9,145
(37)
8,261
28,182
231,243
234,809
1,473
570
5
3,117
5,165
1,473
570
5
3,761
5,809
1,772
2
8,310
(1,476)
11,436
76
20,120
1,790
2
8,210
11,868
37
21,907
4,842
4,842
261,370
1,442
1,442
263,967
(209,254)
(52,116)
(209,133)
(55,299)
(76)
(541)
-
Page 102
APPENDIX SIX – NEW BUDGET INVESTMENTS
Unique
ID
Service
Group
Description
16/17
17/18
18/19
19/20
£'000
£'000
£'000
£'000
230
40
PEOPLE
Page 103
1
Education
Maes Ebbw Special School - capacity building through Capital
investment. Revenue consequences of Capital Bid being presented to
cater for additional staffing with regard to the creation of additional
Capacity proposed to be created at the school, and the ability to take
further additional pupils over above current levels. The current position
within the school is it has capacity for 100 pupils, but at the present time
has 124 pupils on site. The capital bid, which is to be submitted for 6
additional classrooms at £2.3m will give capacity at 148, allowing the
school to safely deliver education to those currently on site, and allow
additional known demand to be catered on site. The revenue
consequences of the development is additional staffing of 6 Teachers and
12 Teaching assistants at total cost of £550k, of which circa £100k can be
found from within current ISB resources when pupils move, and a further
£180k from anticipated savings falling out of a schools reorganisation
programme to be finalised during the current MTFP process. Therefore
the revenue burden sits at £270k over two years.
2
Social
ServicesAdults
Transitions - Children due to turn 18 that are in the children with
disabilities team (CDT) and are therefore likely to go into the adult social
care system. This is worked out based on the full year cost of 4 children
at the current package cost within Children's services. Not all LAC's who
turn 18 would apply here, only those in the CDT.
238
57
3
Social
Services Children's
Kinship - There have been increases of children being granted Special
Guardianship Orders of around 25% per year, for the last couple of years.
Based on reviewing these trends and current numbers, these pressures
are needed until the situation plateaus in the years to come.
266
206
50
16/17
17/18
18/19
19/20
£'000
£'000
£'000
£'000
23
-335
164
Page 104
Unique
ID
Service
Group
4
Social
Services Children's
Out of Area Residential Placements - Based on an age profile showing
children turning 18 and a trend analysis of the likely number of new cases,
gives rise to this budgetary pressure. The trend shows changes each
year, with a total of £20k pressure over the 4 years.
168
5
Social
Services Children's
Gwent Safeguarding Children's & Adults Board - Grant funded until
15/16, this funding has now stopped, meaning LA's have to fund the cost
of this regional service being provided.
63
6
Social
Services Children's
Out of Area Residential (unachieved project) - Peopletoo in partnership
with the service, reviewed every contract with providers for Out of Area
Residential placements, with a view to making savings. It has been
reported through the relevant project groups that the savings are not
achievable for 15/16 and 16/17.
100
7
Social
Services Children's
Youth Offending Service - In response to inspection report, additional
resource is needed to implement recommendations and a reduction in the
YJB grant in 15/16 has also increased this pressure.
87
Streetscene &
City Services
Project Team - Many of the posts within the projects team were capital
dependent and as the major schemes reduced the level of income
significantly reduced. A strategic decision was taken to restructure the
team resulting in 3 voluntary redundancies. The historical income
pressure has been compounded by the restructure due to lost opportunity/
capacity within the team to generate income. Savings target has been
included within the Streetscene transformation project for delivery.
216
Description
PLACE
8
Page 105
16/17
17/18
18/19
19/20
£'000
£'000
£'000
£'000
741
695
664
Unique
ID
Service
Group
9
Streetscene &
City Services
Cemeteries - Shortfall against income targets. Savings target has been
included within the Streetscene transformation project for delivery.
50
10
Streetscene &
City Services
Green Waste winter collections - As part of the 15/16 MTFP £375k was
accepted as a supported pressure to maintain the recycling targets that
are imposed upon the Authority by Welsh Government. The £375k
already took into account the fact that the green waste collections would
cease in winter months. As the £140k was included as an additional
saving this is not achievable on the basis that it was already accounted
for. Savings target has been included within the Streetscene
transformation project for delivery.
140
11
Streetscene &
City Services
City Centre Fountains - On-going cleaning and maintenance costs
associated with the switching on of the fountains. The level of vandalism
may well increase this budget pressure.
30
Regeneration,
Investment &
Housing
Reduction in Community Learning Grant (WG) & Funding from Coleg
Gwent - Community learning income target of £1.35m has until now
contributed a surplus of £122k. The 15/16 grant reduced by £393k and as
a result the service is having to cut back on activity. Due to such
significant funding reductions it is no longer possible to generate this
surplus.
122
National Minimum Wage - Subject to significant uncertainty but
preliminary work confirms that increase in cost to our contractors will be
very substantial. Further work on-going to be complete by mid-December.
1,207
12
Description
NON-SERVICE
13
Non-Service
Unique
ID
14
Service
Group
Non-Service
Page 106
15
Non-Service
16
Non-Service
29
Social
Services
30
Streetscene &
City Services
31
Streetscene &
City Services
32
Streetscene &
City Services
33
Regeneration,
Investment &
Housing
Description
Welsh Language Standard - Minimum budget to adhere to the new
welsh language standards from April 16
The employer's pension contribution rates for deficit recovery is increasing
to reflect actuarial valuations
Grants transferred into settlement – In relation to Outcome Agreement
Grant that has been transferred into the Aggregate External Financing
grant from Welsh Government
To fund current existing budget pressures within Social Services in relation
to Community Care
City Centre parking - short term funding to tackle city centre parking
problems via investment in on-going enforcement via Gwent Police whilst
longer term solution is investigated and implemented.
Maintenance - Additional budgets to fund maintenance of areas such as
infrastructure/city centre/highways
Waste Grant - to mitigate the impact of the anticipated reduction in the
Waste Grant
Rough Sleeping - to secure existing accommodation or to find alternative
housing provision within the city. The financial support will also be utilised
to assist individuals who are either sleeping rough or who are at risk of
rough sleeping.
NEW INVESTMENT TOTAL
16/17
17/18
18/19
19/20
£'000
£'000
£'000
£'000
410
828
280
170
177
1,531
303
34
350
110
25
5,720
1,244
Agreed/Revised Investments
Unique
ID
Service
Group
Description
16/17
17/18
18/19
19/20
£'000
£'000
£'000
£'000
40
40
PEOPLE
Education
3 and 4 Year Olds - The expansion of the Welsh Government Flying Start
initiative, coupled with the general increase in population and the Local
Authorities development of additional Nursery provision means that from
2017/2018 additional funding is required to meet additional capacity
needs.
Education
Secondary School Demographics - net increase for 2016/2017 financial
year and beyond. Snapshot taken of known position at 6th March 2015.
The figures show increases of 28, 81, 121, and 335 for 2016/2017 to
2019/2020 respectively into the system. For 16/17 & 17/18 proposal is to
limit schools to cash limit of 15/16 budget, therefore no pressures included
for these years.
20
Education
Primary School Demographics - net increase between primary and
nursery pupils for 2016/2017 financial year and beyond. Snapshot taken of
known position at 6th March 2015. The figures show increases of 298,
209, 258, and 367 for 2016/2017 to 2019/2020 respectively into the
system. For 16/17 & 17/18 proposal is to limit schools to cash limit of
15/16 budget, therefore no pressures included for these years.
21
Social
Services
18
Page 107
19
Adults - Demographic Growth. Funding based on current trends and
demographic forecasts.
520
121
137
266
786
462
650
157
169
Unique
ID
22
Service
Group
Social
Services Children's
Description
New legislation/Regulation - Fostering 'When I'm Ready' - This is an
amendment to a line in the last agreed MTFP, where some costs can now
be estimated. There are changes to legislation regarding support for
foster children up to the age of 25. We are still awaiting final guidance on
this but these calculations are based on foster carers receiving the WG
minimum allowance for 16-18 year olds until the age of 25, assuming that
all children as they turn 18 are included. These can be children from
Independent Fostering Agencies, Out of Area Residential Placements and
in house looked after children.
Page 108
16/17
17/18
18/19
19/20
£'000
£'000
£'000
£'000
106
236
210
205
1,087
1,025
777
2,800
NON-SERVICE
23
Non-Service
Total Reward - The Council's proposed new pay and grading structure
and allowances framework, utilises the £3,750k budgeted for this project
by April 2015. As staff move through their pay scales in subsequent 3
years, it will generate 'incremental' pay budget pressure. An additional
estimated allowance for turnover has also been made.
24
Non-Service
Increase in National Insurance rates following changes to regulations
linked to 'contracted out' schemes such as the LGPS
Unique
ID
Service
Group
Description
Non-Service
Auto enrolment in Pension scheme
Newport's staging date will be somewhere between 1st April and 30th
June 2013. Staff earning over £8,105 will automatically be enrolled into a
pension scheme for one month and will then have the ability to opt out of
the scheme. Assuming all classes of employee currently not in a pension
scheme stayed enrolled the maximum employers contribution (LGPS
existing scheme) will cost £1.618m per annum. However it is assumed for
budget purposes that only permanent staff will potentially stay in the
scheme and that there will be minimal take up from Casual, Fixed Term,
Seasonal, Sessional, and Temporary staff. It is not possible to assess
how many permanent staff will remain in the pension scheme but it is felt
prudent to make budget provision for 50% of this potential cost which
equates to £0.507m.
Non-Service
Other pressures' - To Be Identified
as annual detailed budget work undertaken - there is normally
miscellaneous budget pressures identified. This amount here provides an
'allowance' for this - so that the overall budget gap in each year takes
account of some amount for this.
27
Non-Service
SDR PFI Scheme
Interest payable on SDR PFI reserve to maintain ability to fund future
costs when annual PFI grant lower than costs.
28
Non-Service
Capital programme MRP / Interest
Costs of capital programme MTFP/ interest, following a review of the
programme in Sept/Oct 2014 and subsequent re-phasing of projects.
25
Page 109
26
16/17
17/18
18/19
19/20
£'000
£'000
£'000
£'000
95
110
400
400
400
285
AGREED/REVISED INVESTMENT TOTAL
4,729
1,948
2,597
2,210
BUDGET INVESTMENT TOTAL
10,449
3,192
3,007
3,038
APPENDIX SEVEN – New Budget Savings for Consultation
Unique
ID
Service
Group
18/19
£'000
19/20
£'000
Staff
Impact
(FTE)
16/17
£'000
17/18
£'000
Telecare - Review Telecare operation and charges by seeking the
most effective and efficient way of providing this important and
essential service for the citizens of Newport.
0
78
1
Modernisation of Transport Provision
0
104
0
To close Brynglas bungalow children’s residential unit and sell
excess capacity to neighbouring local authorities
0
594
10
Reduction in Social Worker posts
0
144
Reduction in Voluntary Sector Contracts
23
23
0
Bus routes - Removal of financial support on evenings and
Sundays
0
69
0
Proposal
PEOPLE
SSA10
SSA11
Page 110
CFS01
CFS03
CFS07
Adult &
Community
Services
Adult &
Community
Services
Children &
Young
People
Services
Children &
Young
People
Services
Children &
Young
People
Services
144
7
PLACE
STS01
Street
Scene
Page 111
Service
Group
Proposal
16/17
£'000
STS18
Street
Scene
Street Cleansing - review and restructure of services - Revise
street cleansing provision across the City including cleanliness based
assessment. Changes to working hours of operatives by introducing
a four day working over a seven day week
250
10
STS20
Street
Scene
136
2
STS26
Street
Scene
RIH18
RIH
Grounds Maintenance Service Review - Reduce the number of
grass cuts throughout the City from 8 to 6 with the exception of
visibility splays, schools contracts and leisure facilities
Waste - Review of charging for special collections - Review of
charging for special collections - apply a new pricing mechanism to
ensure the minimum charge covers the operating and disposal costs
of the service.
0
17/18
£'000
44
18/19
£'000
19/20
£'000
Staff
Impact
(FTE)
Unique
ID
0
Restructure of the Council’s core-funded Youth Service
100
4
70
2
0
CORPORATE
CSDI013
CS & DI
Review of service delivery model and management saving - To
review the service delivery model for IT and determine if partnership
working would deliver a more resilient, cost effective and sustainable
service.
LR01
Law &
Standards
Members Neighbourhood Allowances - Cease the Members
Neighbourhood Allowance fund for voluntary and community groups
within wards.
25
PBC06
People &
Business
Change
Reduction in the overall budget allocated through grants to
voluntary sector organisations - The re-commissioning of voluntary
sector organisation provision
0
63
0
Unique
ID
Service
Group
Proposal
16/17
£'000
17/18
£'000
18/19
£'000
19/20
£'000
Staff
Impact
(FTE)
NON-SERVICE
Page 112
NON001
NonService
Council Tax Rebate Scheme Budget Reduction
300
0
NON002
NonService
Invest to Save Reserve - Cease the annual revenue contribution to
the Invest to Save Reserve
950
0
NON004
NonService
Minimum Revenue Provision / Interest Budget Reduction Following review of budgets a reduction of budgets across Capital
and Interest Payable budgets is achievable
900
0
NEW BUDGET SAVINGS TOTAL
2,754
1,120
144
-
57.5
Saving re-classified as funding for MTFP
NON005
NonService
Council Tax Increase - Increase Council Tax by 1% above the
already agreed 4% assumption.
406
0
New Budget Savings implemented under delegated authority
Head of Service
Unique
ID
Service
Group
17/18
£'000
18/19
£'000
19/20
£'000
Staff
Impact
(FTE)
Proposal
16/17
£'000
Review of Double Handling Cases - Review and reduce the number
of calls to service users that require 2 care workers.
300
0
Day Services Budget Reduction - Reduce supplies and services
budget.
30
0
SSA13
Adult &
Community
Services
Active Living - Continuation of the 2015/16 Project Work Transforming care and assessment which to achieve efficiencies in
adult social care by reducing the number and size of packages of
care through filtering out inappropriate referrals at first point of contact
120
0
SSA15
Adult &
Community
Services
Frailty Budget - Additional contribution from the combined Gwent
frailty budget
157
0
CFS04
Children &
Young
People
Services
Budget Reductions – Various budget reduction proposals
180
1
Staff restructure - approved phase 1 - Revised tier 3 and 4
management structure within Streetscene and City Services.
42
6
PEOPLE
SSA04
Page 113
SSA07
Adult &
Community
Services
Adult &
Community
Services
PLACE
STS04
Street
Scene
Page 114
Service
Group
STS06
Street
Scene
Vehicle hire - reduction of external vehicle hire by pooling and
scheduling existing fleet.
25
0
STS13
Street
Scene
Waste Management Restructure - Revised management structure
within waste operations.
55
2
STS22
Street
Scene
Trade Waste - review of charges and increase number of
contracts - To review the operation of trade waste service to
increase capacity and market share of trade waste collections within
Newport
50
STS27
Street
Scene
Newport Live Efficiencies - Efficiency savings as per funding and
management agreement
STS28
Street
Scene
Deletion of vacant posts: Senior Traffic, Transportation and
Road Safety Officer (a 50% job share) and Civil Contingencies
Assistant PE318
28
0.9
RIH
Planning Application Fee Income - Increase planning application
fee income budget in light of application fee increase expected to be
imposed by the Planning (Wales) Bill 2015. This is expected to come
into effect in October 2015
71
0
RIH
Management Actions – Planning Pre-Application Charges,
Reduction in Pooled Admin Supplies and Services, Delete 0.4FTE of
Technical Support Assistant post and deletion of vacant Planning
Officer post and minor service reconfiguration.
65
1.90
RIH1
RIH02
Proposal
16/17
£'000
17/18
£'000
18/19
£'000
19/20
£'000
Staff
Impact
(FTE)
Unique
ID
90
0
60
60
0
Unique
ID
Service
Group
Proposal
16/17
£'000
17/18
£'000
18/19
£'000
19/20
£'000
Staff
Impact
(FTE)
RIH
Communities 4 Work- ESF funding has been secured to deliver the
Communities for Work programme. The staff delivering this service
are currently core funded. The proposal is to move these staff from
current permanent contracts to grant funded, fixed term positions
140
0
RIH10
RIH
Removal of bad debt provision against business loans - Removal
bad debt provision against business loans. The take up of loans has
been very limited and those currently in receipt repaying as planned
therefore removing the need for this provision in future
15
0
RIH11
RIH
Restructure Business Support and Inward Investment Function
- The proposal is to restructure the existing team to enable the
Council to strengthen its role in Regeneration activity.
31
0
0
0
1
RIH12
RIH
Reduction in 4th tier Managers of the Housing, Regeneration and
Property Service
42
0
0
0
1
RIH14
RIH
Management Re-structure of Library Service - Review the senior
management structure within library services and reduce elements of
the supplies budget.
73
RIH5
Page 115
1
Unique
ID
Service
Group
Proposal
16/17
£'000
17/18
£'000
18/19
£'000
19/20
£'000
Staff
Impact
(FTE)
CORPORATE
CS & DI
Supplies and Services - Reduction in supplies and services budget
following the move to Information Station and relating channel shift
activity
13
0
CSDI003
CS & DI
Information Technology – Desktop IT, extend PC/laptop refresh
cycle - Reduce budget for annual desktop PC/ laptop refresh increasing refresh cycle to 5 years
40
0
CSDI004
CS & DI
Changes to encryption software resulting in reduced licence
costs over a three year period
15
0
CSDI005
CS & DI
Increase street naming and numbering income targets - Increase
the income target for new developments for street naming and
numbering in line with likely developments in the city.
13
0
CSDI006
CS & DI
Remove budget held for PSN charges - Remove the budget
currently held for PSN (previously GCSx) as fees continue to be
funded by Welsh Government
4
0
CS & DI
Reduce costs of postage by 7% across the Council - Reduce
postage budget by 7% (over a two year period) across the Council.
This would be achieved through reductions in 1st class mail,
maximising royal mail discounts and through the use of an automated
mail service (hybrid mail solution)
10
CSDI001
Page 116
CSDI007
5
0
Page 117
Unique
ID
Service
Group
16/17
£'000
17/18
£'000
CSDI008
CS & DI
Information Management – reduced costs of document storage
in Modern Records- Reduce revenue budget to release savings
following the implementation of Modern Records
8
3
CS & DI
Information Technology – PSBA (Public Sector Broadband
provision) wide area network legacy Sites - Number of NCC staff
in ABHB sites and have previously supplied our own Newport
connections. Proposed removal of these circuits and utilise ABHB
connectivity
CSDI009
18
CSDI010
CS & DI
Information Technology – Supplies and Services Savings
(secure email) - Secure email product Egress costs reduce on an
annual basis
36
CS & DI
Information Technology – PSBA (Public Sector Broadband
provision) wide area network profiled connection costs - PSBA
(Public Sector Broadband Aggregation) circuits. Greater Gwent
Network project developed involving the provision of a new wide area
network funded by Welsh Government
CSDI012
CS & DI
Information Technology – change to room booking
arrangements - To cancel the current room / resource / car parking
booking system.
4
LR04
Law &
Standards
Increased Land Charges fee income - To increase the fee income
projections for local land charges searches fees
25
CSDI011
Proposal
18/19
£'000
19/20
£'000
Staff
Impact
(FTE)
0
0
29
61
0
12
0
0
25
0
Unique
ID
Service
Group
LR05
18/19
£'000
19/20
£'000
Staff
Impact
(FTE)
Page 118
Proposal
16/17
£'000
17/18
£'000
Law &
Standards
Reduction of staff within Legal Services - Reduction of staff within
the Legal section (including two vacant post)
86
43
LR09
Law &
Standards
Deletion of Scrutiny Support Officer post - To delete the post of
Scrutiny Support Officer (Grade 6) and reallocate the support work for
the Scrutiny Officers within the Democratic Services team.
30
LR12
Law &
Standards
Redesign of Kennel Services - Redesign the service at the kennels
moving it towards more of a rehoming centre which drives income to
eventually pay for its self.
49
PBC02
People &
Business
Change
Increase income generation target in Health and Safety Team
25
0
PBC03
People &
Business
Change
Reduction in Occupational Health Provision (OHP) - Reduce the
OHP by one day clinic per week (16 appointments per week, 800
over one year).
28
0
PBC04
People &
Business
Change
Reduction in Organisational Development (OD) budget for
training and management development
19
0
PBC05
People &
Business
Change
Partnership and Policy service reduction - The restructure of the
team meaning the removal of 1 FTE
32
1
4
1
10
0
Unique
ID
PBC07
PBC08
Service
Group
People &
Business
Change
People &
Business
Change
Page 119
FIN001
Finance
FIN003
Finance
NON006
NonService
Proposal
Cessation of Council’s flexi-time system; Wintime - To end the
current contract for the Council’s flexi system in January 2016 at point
that current version of system is decommissioned.
16
0.5
Strategic Human Resources (HR) savings proposal – reduction in
staffing budget of the HR service
73
2
Reduce Accountancy Assistant Posts - Reduction of 2 vacant
Accountancy Assistants within the structure
51
2
76
0
95
0
Council Tax Collection: Increase the budgeted amount for
collection within the base budget from the financial year 2016/17
Reduce budget for the expected decrease in the Caldicot & Wentloog
Drainage Board Levy charge. This will not have an impact on service
users.
DELEGATED HEAD OF SERVICE BUDGET SAVING TOTAL
17/18
£'000
18/19
£'000
19/20
£'000
Staff
Impact
(FTE)
16/17
£'000
2,190
266
72
60
25.3
16/17
£'000
17/18
£'000
18/19
£'000
19/20
£'000
Staff
Impact
(FTE)
Cabinet Member
Unique
ID
Service
Group
Proposal
PEOPLE
SSA01
Adult &
Community
Services
Appraisal of internal supported living facilities - To reduce the
capacity of the internal Supported Living Agency in line with the
changing needs and best interest of tenants
25
1
Unique
ID
SSA02
SSA03
SSA06
Page 120
SSA12
SSA14
Service
Group
Adult &
Community
Services
Adult &
Community
Services
Adult &
Community
Services
Adult &
Community
Services
Adult &
Community
Services
Proposal
16/17
£'000
Reassessments in Mental Health - remodel of services for people
with mental health conditions - Continuation of current
reassessment of packages
200
Promoting Independence – Learning Disability (LD) Service
Development and Reviews
0
17/18
£'000
18/19
£'000
19/20
£'000
Staff
Impact
(FTE)
0
531
0
Review & Reconfigure Third Sector Contracts - To review
contracts with third sector organisations to identify opportunities for
improved delivery.
288
1
Rationalisation of Internal Mental Health Day Service Provision.
120
4
Improving the efficiency of our Reablement and Homecare
Service
114
90
3
PLACE
STS09
Street
Scene
Increased cardboard collection service to residents through
Wastesavers - Provision of new weekly cardboard recycling to
Newport residents through Wastesavers
190
4
STS11
Street
Scene
Cemeteries - Review of grave digging services
59
2
STS12
Street
Scene
Review of Park Ranger services - Review of parks ranger services
to achieve operational efficiencies
30
1
Page 121
Unique
ID
Service
Group
STS15
Street
Scene
STS19
Street
Scene
STS23
Street
Scene
STS29
STS30
RIH6
Proposal
16/17
£'000
17/18
£'000
18/19
£'000
19/20
£'000
Staff
Impact
(FTE)
Highways Operations - Multi-skilling of staff and plant and
equipment review
85
2
Streetscene operations - Review supervisor staffing levels and
operational bases
70
2
Waste - Review of special collection services -To achieve service
efficiencies in the operation of the special collection service provided
by Streetscene
50
2
Street
Scene
Car parking tariffs review - Proposed revision of car parking order to
facilitate increases to parking tariffs and pricing structure
80
0
Street
Scene
Streetscene Processes Review - Investigate and implement new
ways of working to achieve a modern and effective service, delivering
savings and efficiencies while ensuring that service capacity is
maximised for the benefit of the customer and the council.
350
13
Community Development Worker - Because of the creation of the
new Community Regeneration department with a much larger
workforce and resource budget, there is a clear expectation that
reduction of one post can be made without impact to the overall
service.
27
1
RIH
Page 122
Service
Group
Proposal
16/17
£'000
RIH7
RIH
Community Regeneration - Youth Service operational restructure
phase 1 and deletion of two youth worker posts (Voluntary
Redundancy (VR) requests)
127
4
RIH19
RIH
20
TBC
Reduction in statutory enforcement work and staff within
Environmental Health and Trading Standards
110
3
Rationalisation of Housing Solutions service to strengthen frontline delivery – Review and restructure of the Housing Needs Service.
17/18
£'000
18/19
£'000
19/20
£'000
Staff
Impact
(FTE)
Unique
ID
CORPORATE
LR08
Law &
Standards
FIN002
Finance
Reduction in Internal Audit staffing resource
31
FIN004
Finance
Re-structure of Income Collection Team- To combine the Local
Taxation and Debtors teams so that management, day-to-day
administration and processing work is generic across Council Tax,
Non-Domestic Rates, Sundry Debt and Periodic Debt.
39
FIN005
Finance
Reduction in Staff Numbers / Hours within Procurement and
Central Payments
20
27
2,035
674
DELEGATED CABINET MEMBER BUDGET SAVINGS TOTAL
26
2
2
2.4
-
-
50.4
SAVINGS SUMMARY
16/17
£'000
17/18
£'000
18/19
£'000
19/20
£'000
Staff
Impact
(FTE)
New Budget Savings to be Consulted
2,754
1,120
144
-
57.5
Delegated Head of Service Budget Savings
2,190
266
72
60
25.3
Delegated Cabinet Member Budget Savings
2,035
674
-
-
50.4
Budget Savings previously agreed/revised (as per February 2015 Council Report)
1,668
987
460
450
20
TOTAL BUDGET SAVINGS
8,647
3,047
676
510
153.2
Savings Decision Type
Page 123
Appendix 8 - Capital Programme 2016/17 – 2017/18
SCHEME
EDUCATION
Page 124
STEP 4
New ASD Facility
21C Schools - Nursery Education Provision
21C Schools - School Reorganisation - Lodge Hill New Build
21C Schools - Capacity Building - Replacement of Demountables
21C Schools - Welsh Medium Secondary (WM2) Project
Duffryn - Additional Funding
Primary Place Challenge
Installation of a catering Cashless System in all Primary Schools
Llanwern High School
St Andrews Primary 3FE Works
Total Education
2016/17 2017/18
£000s
£000s NOTES
231
2,748
84
3,939
1,700
10,743
1,900
1,040
50
24
264
22,723
231
0
0
1,000
1,000
5,000
2,000
300
0
0
0
9,531
Reprofiled existing scheme
NCC / WG grant, scheme finishing
NCC / WG grant, in progress
NCC / WG grant, in progress
NCC / Monmouthshire / WG grant funded
Additional service requirement
Slippage/ Ongoing scheme
21
1,200
65
4,365
1,436
2,041
0
350
80
9,558
0
0
0
0
1,436
1,500
12
0
0
2,948
Scheme finishing
WG grant annual allocation
Annual allocation
Annual allocation, adjusted for slippage
New scheme
REGENERATION, INVESTMENT & HOUSING
Education through Restoration: Fourteen Locks
Gypsy Traveller Site Development
Peterstone Sewage Scheme
Vibrant & Viable Places Grant
Renovation Grants
Asset Management
Medieval Ship - Purchase of Freeze Dryer
Central Library Structural Safety Works
Rivermead MUGA Fence
Total Regeneration, Investment & Housing
CUSTOMER SERVICES & DIGITAL INNOVATION
Print 2010 - Managed Printer Service
IT Replacement Schemes
Corporate EDMS Rollout
Total Customer Services & Digital Innovation
0
745
7
752
210 Cyclical requirement
744 Reprofiled existing annual allocation
0 Scheme finishing
954
PEOPLE & BUSINESS CHANGE
Implementation of HR self-serve System
Preparatory Works Allocation
Amount Reserved for Change & Efficiency Programme
(Schemes to be confirmed)
Total People & Business Change
85
100
3,000
3,185
0 Scheme finishing
100 Annual allocation
Subject to ongoing review to determine specific
2,200 requirements
2,300
LAW AND REGULATION
Page 125
CCTV
Total Law and Regulation
189
189
0 Reprofiled existing scheme
0
ADULT & COMMUNITY SERVICES
Appliances/Equipment for Disabled
Telecare Service Equipment
Substance Misuse Action Fund Grant
Total Adult & Community Services
165
30
40
235
0 Fully grant funded
195
CHILDREN & YOUNG PEOPLE SERVICES
6 Place Residential Unit for young people with acute complex needs
Total Children & Young People Services
0
0
250 Other service area requirement
250
STREETSCENE & CITY SERVICES
Fleet Replacement Programme
Waste Disposal site - Finishing & Development works
Decommissioning of Public Toilets
Lliswerry Recreation Ground Changing Rooms
2,000
360
0
219
1,500
0
20
0
Reprofiled existing annual allocation
Scheme finishing
Graig Area Play Facilities
Maintenance, Footways and Street Lighting (Capital Maintenance)
St Julian's Park Ecological Translocation Site
Total Streetscene & City Services
TOTAL EXPENDITURE
39
500
3
3,121
0 Scheme finishing
0 Scheme finishing
2,020
39,763
18,198
2,479
4,073
14,336
3,554
14,746
50
525
0
39,763
2,192
3,601
10,001
1,194
1,000
0
0
210
18,198
Funded By:
Page 126
General Capital Grant
Supported Borrowing
Unsupported/ Prudential Borrowing
Capital Receipts
External Grants
Revenue Contributions
S106 & Other Contributions
Finance Lease
TOTAL FUNDING
Appendix 9
Treasury Management Strategy and Prudential Indicators
Prudential Code Indicators, Minimum Revenue Policy, Treasury Management and
Investment Strategy Statements 2016/17
Introduction
In June 2009 the Authority adopted the Chartered Institute of Public Finance and
Accountancy’s Treasury Management in the Public Services: Code of Practice 2011 Edition (the
CIPFA Code) which requires the Authority to approve a treasury management strategy before the
start of each financial year.
In addition, the Welsh Government (WG) issued revised Guidance on Local Authority Investments
in April 2010 that requires the Authority to approve an investment strategy before the start of each
financial year.
This report fulfils the Authority’s legal obligation under the Local Government Act 2003 to have
regard to both the CIPFA Code and the WG Guidance.
The Authority borrows/invests substantial sums of money and is therefore exposed to financial
risks including the loss of invested funds and the revenue effect of changing interest rates. The
successful identification, monitoring and control of risk are therefore central to the Authority’s
treasury management strategy.
External Context
Economic Background
Domestic demand has grown robustly, supported by sustained real income growth and a gradual
decline in private sector savings. Low oil and commodity prices were a notable feature of 2015,
and contributed to annual CPI inflation falling to 0.1% in October. Wages are growing at 3% a
year, and the unemployment rate has dropped to 5.4%. Mortgage approvals have risen to over
70,000 a month and annual house price growth is around 3.5%. These factors have boosted
consumer confidence, helping to underpin retail spending and hence GDP growth, which was an
encouraging 2.3% a year in the third quarter of 2015. Although speeches by the Bank of England’s
Monetary Policy Committee (MPC) members sent signals that some were willing to countenance
higher interest rates, the MPC held policy rates at 0.5% for the 81st consecutive month at its
meeting in November 2015. Quantitative easing (QE) has been maintained at £375bn since July
2012.
The outcome of the UK general election, which was largely fought over the parties’ approach to
dealing with the deficit in the public finances, saw some big shifts in the political landscape and put
the key issue of the UK’s relationship with the EU at the heart of future politics. Uncertainty over
the outcome of the forthcoming referendum could put downward pressure on UK GDP growth and
interest rates.
China's growth has slowed and its economy is performing below expectations, reducing global
demand for commodities and contributing to emerging market weakness. US domestic growth has
accelerated but the globally sensitive sectors of the US economy have slowed. Strong US labour
market data and other economic indicators however suggest recent global turbulence has not
knocked the American recovery off course. The Federal Reserve did not raise policy rates at its
meetings in October and November, but a rate hike was made in December 2015. In contrast, the
European Central Bank finally embarked on QE in 2015 to counter the perils of deflation.
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Credit outlook:
The varying fortunes of different parts of the global economy are reflected in market indicators of
credit risk. UK Banks operating in the Far East and parts of mainland Europe have seen their
perceived risk increase, while those with a more domestic focus continue to show improvement.
The sale of most of the government’s stake in Lloyds and the first sale of its shares in RBS have
generally been seen as credit positive.
Bail-in legislation, which ensures that large investors including local authorities will rescue failing
banks instead of taxpayers in the future, has now been fully implemented in the UK, USA and
Germany. The rest of the European Union will follow suit in January 2016, while Australia, Canada
and Switzerland are well advanced with their own plans. Meanwhile, changes to the UK Financial
Services Compensation Scheme and similar European schemes in July 2015 mean that most
private sector investors are now partially or fully exempt from contributing to a bail-in. The credit
risk associated with making unsecured bank deposits has therefore increased relative to the risk of
other investment options available to the Authority; returns from cash deposits however remain
stubbornly low.
Interest rate forecast:
The Authority’s treasury advisor Arlingclose projects the first 0.25% increase in UK Bank Rate in
the third quarter of 2016, rising by 0.5% a year thereafter, finally settling between 2% and 3% in
several years’ time. Persistently low inflation, subdued global growth and potential concerns over
the UK’s position in Europe mean that the risks to this forecast are weighted towards the downside.
A shallow upward path for medium term gilt yields is forecast, as continuing concerns about the
Eurozone, emerging markets and other geo-political events weigh on risk appetite, while inflation
expectations remain subdued. Arlingclose projects the 10 year gilt yield to rise from its current
2.0% level by around 0.3% a year. The uncertainties surrounding the timing of UK and US interest
rate rises are likely to prompt short-term volatility in gilt yields.
A more detailed economic and interest rate forecast provided by Arlingclose is attached at
Appendix A.
Local Context
The Authority currently has £227.8 million of borrowing and £7.4 million of investments. This is set
out in further detail at Appendix B. Forecast changes in these sums are shown in the balance
sheet analysis in table 1 below:
Table 1: Balance Sheet Summary and Forecast
31.3.15
31.3.16
31.3.17
31.3.18
31.3.19
Actual
Estimate
Estimate
Estimate
Estimate
£m
£m
£m
£m
£m
CFR
321.1
360.2
280.6
283.7
283.5
Less: Other long-term liabilities *
-51.6
-49.3
-47.4
-45.5
-43.8
Borrowing CFR
269.5
310.9
233.2
238.2
239.7
Less: External borrowing **
-190.3
-235.8
-246.6
-205.6
-204.5
Internal (over) borrowing
79.2
75.1
-13.4
32.6
35.2
Less: Usable reserves
-89.8
-83
-78
-74.2
-73.6
Less: Working capital
8
8
8
8
8
2.6
-0.1
83.4
33.6
30.4
Investments / (New Borrowing)
*finance leases and PFI liabilities that form part of the Authority’s debt
** shows only loans to which the Authority is committed and excludes optional refinancing
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Capital Financing Requirement
The underlying need to borrow for capital purposes is measured by the Capital Financing
Requirement (CFR), while usable reserves and working capital are the underlying resources
available for investment. The Authority’s current strategy is to maintain borrowing and investments
below their underlying levels, sometimes known as internal borrowing.
The Authority has an increasing CFR during 2015/16 due to the capital programme and the ongoing loan to Queensbury Real Estates (Newport) Ltd, but holds minimal investments and will
therefore be required to borrow up to £50m during 2015/16. However, during 2016/17 the sale of
the development will reduce the CFR significantly and dependent on timing of loan re-payments
and capital receipts, significant investments are likely to be required over the forecast period.
CIPFA’s Prudential Code for Capital Finance in Local Authorities recommends that the Authority’s
total debt should be lower than its highest forecast CFR over the next three years. Table 1 shows
that the Authority expects to comply with this recommendation during 2016/17.
Borrowing Strategy
The Authority currently holds £227.8 million of loans as part of its strategy for funding previous
years’ capital programmes. The balance sheet forecast in table 1 shows that the Authority does
not expect to need to borrow in 2016/17. The Authority may however borrow to pre-fund future
years’ requirements, providing this does not exceed the recommended authorised limit for
borrowing of £397 million.
The Authority’s chief objective when borrowing money is to strike an appropriately low risk balance
between securing low interest costs and achieving cost certainty over the period for which funds
are required. The flexibility to renegotiate loans should the Authority’s long-term plans change is a
secondary objective.
Given the significant cuts to public expenditure and in particular to local government funding, the
Authority’s borrowing strategy continues to address the key issue of affordability without
compromising the longer-term stability of the debt portfolio. With short-term interest rates currently
much lower than long-term rates, it is more cost effective in the short-term to either use internal
resources, or to borrow short-term loans instead.
By doing so, the Authority is able to reduce net borrowing costs (despite foregone investment
income) and reduce overall treasury risk. The benefits of internal borrowing will be monitored
regularly against the potential for incurring additional costs by deferring borrowing into future years
when long-term borrowing rates are forecast to rise. Arlingclose will assist the Authority with this
‘cost of carry’ and breakeven analysis. Its output may determine whether the Authority borrows
additional sums at long-term fixed rates in 2016/17 with a view to keeping future interest costs low,
even if this causes additional cost in the short-term.
Alternatively, the Authority may arrange forward starting loans during 2016/17, where the interest
rate is fixed in advance, but the cash is received in later years. This would enable certainty of cost
to be achieved without suffering a cost of carry in the intervening period.
In addition, the Authority may borrow short-term loans (normally for up to one month) to cover
unexpected cash flow shortages.
The approved sources of long-term and short-term borrowing are:
•
Public Works Loan Board and any successor body
•
UK local authorities
•
any institution approved for investments (see below)
•
any other bank or building society authorised by the Prudential Regulation Authority to
operate in the UK
•
UK public and private sector pension funds
•
capital market bond investors
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•
Special purpose companies created to enable joint local authority bond issues.
In addition, capital finance may be raised by the following methods that are not borrowing, but may
be classed as other debt liabilities:
•
operating and finance leases
•
hire purchase
•
Private Finance Initiative
•
sale and leaseback
The Authority has previously raised the majority of its long-term borrowing from the Public Works
Loan Board, but it continues to investigate other sources of finance, such as local authority loans
and bank loans, that may be available at more favourable rates.
The Authority holds £35m of LOBO (Lender’s Option Borrower’s Option) loans where the lender
has the option to propose an increase in the interest rate at set dates, following which the Authority
has the automatic option to either accept the new rate or to repay the loan at no additional cost.
£30m of these LOBOS have options during 2016/17, and although the Authority understands that
lenders are extremely unlikely to exercise their options in the current low interest rate environment,
there remains a remote element of refinancing risk. The Authority will take the option to repay
LOBO loans at no cost if it has the opportunity to do so.
Short-term and variable rate loans leave the Authority exposed to the risk of short-term interest
rate rises and are therefore subject to the limit on the net exposure to variable interest rates in the
treasury management indicators below.
Debt Rescheduling: The PWLB allows authorities to repay loans before maturity and either pay a
premium or receive a discount according to a set formula based on current interest rates. Some
bank lenders may also be prepared to negotiate premature redemption terms. The Authority may
take advantage of this and replace some loans with new loans, or repay loans without
replacement, where this is expected to lead to an overall saving or reduction in risk.
Annual Investment Strategy
The Authority holds invested funds, representing income received in advance of expenditure plus
balances and reserves held. In the past 12 months, the Authority’s investment balance has ranged
between £0 million and £25 million. In 2016/17, the investment balances could increase
significantly dependent on the timing of the repayment of loans in relation to Queensberry, where a
substantial receipt may be achieved in advance of borrowing required to be repaid. As per the
strategy, balances could first be used to reduce levels of borrowing required before the Authority
invests funds, this is in relation to long term loans which become redeemable.
Both the CIPFA Code and the WG Guidance require the Authority to invest its funds prudently, and
to have regard to the security and liquidity of its investments before seeking the highest rate of
return, or yield. The Authority’s objective when investing money is to strike an appropriate balance
between risk and return, minimising the risk of incurring losses from defaults and the risk receiving
unsuitably low investment income.
Given the increasing risk and continued low returns from short-term unsecured bank investments,
the Authority aims to diversify into more secure and/or higher yielding classes during 2016/17.
This is especially the case for any surplus funds available for investment following the repayment
of the Queensberry loan.
There is no intention to restrict investments to bank deposits, and investments may be made with
any public or private sector organisations that meet the required credit rating criteria. This reflects
a lower likelihood that the UK and other governments will support failing banks as the bail-in
provisions in the Banking Reform Act 2014 and the EU Bank Recovery and Resolution Directive
are implemented. The Authority may invest its surplus funds with any of the counterparties that
meet the definition and credit type as documented in table 2 and additional explanation are:
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
Credit Rating: Investment decisions are made by reference to the lowest published long-term
credit rating from Fitch, Moody’s or Standard & Poor’s. Where available, the credit rating
relevant to the specific investment or class of investment is used, otherwise the counterparty
credit level is used.

Banks Unsecured: Accounts, deposits, certificates of deposit and senior unsecured bonds
with banks and designated building societies, other than multilateral development banks.
These investments are subject to the risk of credit loss via a bail-in should the regulator
determine that the bank is failing or likely to fail. Unsecured investment with banks rated BBB
are restricted to overnight deposits.

Current Account Bank: The banking contract with Santander UK PLC was renewed for a
further three years from 1st April 2013. Santander UK PLC is currently rated above the
minimum required A- rating. Should the credit ratings fall below A-, the Authority may continue
to deposit surplus cash with Santander UK PLC providing that investments that can be
withdrawn on the next working day, and that the bank maintains a credit rating no lower than
BBB (the lowest investment grade rating).

Banks Secured: Covered bonds, reverse repurchase agreements and other collateralised
arrangements with banks and designated building societies. These investments are secured
on the bank’s assets, which limits the potential losses in the unlikely event of insolvency, and
means that they are exempt from bail-in. Where there is no investment specific credit rating,
but the collateral upon which the investment is secured has a credit rating, the highest of the
collateral credit rating and the counterparty credit rating will be used to determine cash and
time limits. The combined secured and unsecured investments in any one bank will not exceed
the cash limit for secured investments.

Government: Loans, bonds and bills issued or guaranteed by UK government, regional and
local authorities. These investments are not subject to bail-in, and there is an insignificant risk
of insolvency. Investments with the UK Government may be made in unlimited amounts for up
to 50 years.

Corporates: Loans, bonds and commercial paper issued by companies other than banks and
registered providers. These investments are not subject to bail-in, but are exposed to the risk of
the company going insolvent. Loans to unrated companies will only be made as part of a
diversified pool in order to spread the risk widely.

Registered Providers: Loans and bonds issued by, guaranteed by or secured on the assets of
Registered Providers of Social Housing, formerly known as Housing Associations. These
bodies are tightly regulated by the Homes and Communities Agency and, as providers of public
services they retain a high likelihood of receiving government support if needed. The Authority
will consider investing with unrated Registered Providers with adequate credit safeguards,
subject to receiving independent advice.

Pooled Funds: Shares in diversified investment vehicles consisting of the any of the above
investment types, plus equity shares and property. These funds have the advantage of
providing wide diversification of investment risks, coupled with the services of a professional
fund manager in return for a fee. Short-term Money Market Funds that offer same-day liquidity
and very low or no volatility will be used as an alternative to instant access bank accounts,
while pooled funds whose value changes with market prices and/or have a notice period will be
used for longer investment periods.

Bond, equity and property funds offer enhanced returns over the longer term, but are more
volatile in the short term. These allow the Authority to diversify into asset classes other than
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cash without the need to own and manage the underlying investments. Because these funds
have no defined maturity date, but are available for withdrawal after a notice period, their
performance and continued suitability in meeting the Authority’s investment objectives will be
monitored regularly. It is not envisaged that the Authority will use the facility of pool funds in the
in the short term.
Risk Assessment and Credit Ratings:
Credit ratings are obtained and monitored by the Authority’s treasury advisers, who will notify
changes in ratings as they occur. Where the Treasury advisor provides advice relating to a specific
named counterparty then the Authority will act upon that advice relating to the duration of exposure
and amount.
Where an entity has its credit rating downgraded so that it fails to meet the approved investment
criteria then:



no new investments will be made,
any existing investments that can be recalled or sold at no cost will be, and
full consideration will be given to the recall or sale of all other existing investments with the
affected counterparty.
Where a credit rating agency announces that a credit rating is on review for possible downgrade
(also known as “rating watch negative” or “credit watch negative”) so that it may fall below the
approved rating criteria, then only investments that can be withdrawn will be made with that
organisation until the outcome of the review is announced. This policy will not apply to negative
outlooks, which indicate a long-term direction of travel rather than an imminent change of rating.
Other Information on the Security of Investments: The Authority understands that credit ratings
are good, but not perfect, predictors of investment default. Full regard will therefore be given to
other available information on the credit quality of the organisations, in which it invests, including
credit default swap prices, financial statements, information on potential government support and
reports in the quality financial press. No investments will be made with an organisation if there are
substantive doubts about its credit quality, even though it may meet the credit rating criteria.
When deteriorating financial market conditions affect the creditworthiness of all organisations, as
happened in 2008 and 2011, this is not generally reflected in credit ratings, but can be seen in
other market measures. In these circumstances, the Authority will restrict its investments to those
organisations of higher credit quality and reduce the maximum duration of its investments to
maintain the required level of security. The extent of these restrictions will be in line with prevailing
financial market conditions. If these restrictions mean that insufficient commercial organisations of
high credit quality are available to invest the Authority’s cash balances, then the surplus will be
deposited with the UK Government, via the Debt Management Office or invested in government
treasury bills for example, or with other local authorities. This will cause a reduction in the level of
investment income earned, but will protect the principal sum invested.
Specified Investments: The WG Guidance defines specified investments as those:
•
•
•
•
denominated in pound sterling,
due to be repaid within 12 months of arrangement,
not defined as capital expenditure by legislation, and
invested with one of:
o the UK Government,
o a UK local authority, parish council or community council, or
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o
a body or investment scheme of “high credit quality”.
The Authority defines “high credit quality” organisations and securities as those having a credit
rating of A- or higher that are domiciled in the UK or a foreign country with a sovereign rating of
AA+ or higher. For money market funds and other pooled funds “high credit quality” is defined as
those having a credit rating of A- or higher.

Non-specified Investments: Any investment not meeting the definition of a specified
investment is classed as non-specified. The Authority does not intend to make any
investments denominated in foreign currencies. Non-specified investments will therefore be
limited to long-term investments, i.e. those that are due to mature 12 months or longer from the
date of arrangement; those that are defined as capital expenditure by legislation, such as
shares in money market funds and other pooled fund; and investments with bodies and
schemes not meeting the definition on high credit quality. Appendix C sets out the investment
limits/ maximum maturity periods for Non-specified investments.

Approved Instruments: The Authority may lend or invest money using any of the following
instruments:
•
interest-bearing bank accounts,
•
fixed term deposits and loans,
•
callable deposits and loans where the Authority may demand repayment at any time
(with or without notice),
•
certificates of deposit,
•
bonds, notes, bills, commercial paper and other marketable instruments, and
•
shares in money market funds and other pooled funds.

Investments may be made at either a fixed rate of interest, or at a variable rate linked to a
market interest rate, such as LIBOR, subject to the limits on interest rate exposures below.

Liquidity management: The Authority uses purpose-built cash flow forecasting to determine
the maximum period for which funds may prudently be committed. The forecast is compiled on
a prudent basis, with receipts under-estimated and payments over-estimated to minimise the
risk of the Authority being forced to borrow on unfavourable terms to meet its financial
commitments. Limits on long-term investments are set by reference to the Authority’s medium
term financial plan and cash flow forecast.
Monitoring & reporting on the Treasury Management and capital Prudential Indicators
The Head of Finance will report to the Audit committee/ Cabinet/ Council on treasury management
activity, performance and Treasury/Capital Prudential Indicators (set out in Appendix D) as follows:


Half Yearly and then annually against the strategy approved for the year. The annual report
will be produced normally by July of the following year but in any event no later than 30th
September.
The Audit Committee will be responsible for the scrutiny of treasury management activity and
practices.
Other Items
 There are a number of additional items that the Authority is obliged by CIPFA or WG to include
in its Treasury Management Strategy.

Policy on Use of Financial Derivatives: In the absence of any legal power to do so, the
Authority will not use standalone financial derivatives (such as swaps, forwards, futures and
options). Derivatives embedded into loans and investments may be used, and the risks that
they present will be managed in line with the overall treasury risk management strategy.
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
Investment Training: The needs of the Authority’s treasury management staff for training in
investment management are assessed annually as part of the staff appraisal process, and
additionally when the responsibilities of individual members of staff change.
Staff members regularly attend training courses, seminars and conferences provided by
Arlingclose and other organisations.

Investment Advisers: The Authority has appointed Arlingclose Limited as treasury
management advisers and receives specific advice on investment, debt and capital finance
issues. The service provided by Arlingclose continues to meet all expectations and the advice
given especially in relation to investment counterparties and credit ratings has allowed the
Council to action the changes needed, especially in removing counterparties from the approved
list, in a prompt and timely manner.
Financial Implications
 The approximate debt interest of £8.8 million and principal of £1.0 million is expected to be paid
in 2016/17 (this includes Queensbury interest payments and maturities) If actual levels of
investments and borrowing differ from those forecast, performance against budget will be
correspondingly different.
Other Options Considered
 The WG Guidance and the CIPFA Code do not prescribe any particular treasury management
strategy for local authorities to adopt. The Head of Finance believes that the above strategy
represents an appropriate balance between risk management and cost effectiveness. Some
alternative strategies, with their financial and risk management implications, are listed below.
Alternative
Invest in a narrower range of
counterparties and/or for
shorter times
Impact on income and
expenditure
Interest income will be lower
Invest in a wider range of
counterparties and/or for
longer times
Interest income will be higher
Borrow additional sums at
long-term fixed interest rates
Debt interest costs will rise;
this is unlikely to be offset by
higher investment income
Borrow short-term or variable
loans instead of long-term
fixed rates
Debt interest costs will
initially be lower
Reduce level of borrowing
Saving on debt interest is
likely to exceed lost
investment income
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Impact on risk
management
Reduced risk of losses from
credit related defaults, but
any such losses will be
greater
Increased risk of losses from
credit related defaults, but
any such losses will be
smaller
Higher investment balance
leading to a higher impact in
the event of a default;
however long-term interest
costs will be more certain
Increases in debt interest
costs will be broadly offset by
rising investment income in
the medium term, but long
term costs will be less certain
Reduced investment balance
leading to a lower impact in
the event of a default;
however long-term interest
costs will be less certain
Appendix A – Arlingclose Economic & Interest Rate Forecast November 2015
Underlying assumptions:
 UK economic growth softened in Q3 2015 but remained reasonably robust; the first
estimate for the last quarter was 0.5% and year-on-year growth fell slightly to 2.3%.
Negative construction output growth offset fairly strong services output, however survey
estimates suggest upwards revisions to construction may be in the pipeline.

Household spending has been the main driver of GDP growth through 2014 and 2015 and
remains key to growth. Consumption will continue to be supported by real wage and
disposable income growth.

Annual average earnings growth was 3.0% (including bonuses) in the three months to
August 2015. Given low inflation, real earnings and income growth continue to run at
relatively strong levels and could feed directly into unit labour costs and households'
disposable income. Improving productivity growth should support pay growth in the medium
term. The development of wage growth is one of the factors being closely monitored by the
MPC.

Business investment indicators continue to signal strong growth. However the outlook for
business investment may be tempered by the looming EU referendum, increasing
uncertainties surrounding global growth and recent financial market shocks.

Inflation is currently very low and, with a further fall in commodity prices, will likely remain
so over the next 12 months. The CPI rate is likely to rise towards the end of 2016.

China's growth has slowed and its economy is performing below expectations, which in turn
will dampen activity in countries with which it has close economic ties; its slowdown and
emerging market weakness will reduce demand for commodities. Other possible currency
interventions following China's recent devaluation will keep sterling strong against many
global currencies and depress imported inflation.

Strong US labour market data and other economic indicators suggest recent global
turbulence has not knocked the American recovery off course. Although the timing of the
first rise in official interest rates remains uncertain, a rate rise by the Federal Reserve
seems significantly more likely in December given recent data and rhetoric by committee
members.

Longer term rates will be tempered by international uncertainties and weaker global
inflation pressure.
Forecast:

Arlingclose forecasts the first rise in UK Bank Rate in Q3 2016. Further weakness in
inflation, and the MPC's expectations for its path, suggest policy tightening will be pushed
back into the second half of the year. Risks remain weighted to the downside. Arlingclose
projects a slow rise in Bank Rate, the appropriate level of which will be lower than the
previous norm and will be between 2 and 3%.
Page 135

The projection is for a shallow upward path for medium term gilt yields, with continuing
concerns about the Eurozone, emerging markets and other geo-political events, weighing
on risk appetite, while inflation expectations remain subdued.

The uncertainties surrounding the timing of UK and US monetary policy tightening, and
global growth weakness, are likely to prompt short term volatility in gilt yields.
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Appendix B – Existing Investment & Debt Portfolio Position
31/12/15
Actual Portfolio
£m
External Borrowing:
PWLB – Fixed Rate
Market Loans
Stock Issue
Temporary loans - Queensberry
Other Soft Loans
Total External Borrowing
Other Long Term Liabilities:
PFI
Finance Leases and other
Total Gross External Debt
Investments:
Short-term investments
Long-term investments
74.84
35.00
40.00
77.98
0.00
227.82
51.16
0.15
279.13
7.39
0.00
7.39
Total Investments
271.74
Net Debt
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Appendix C – Operational Investment Counterparties List
COUNTERPARTY LIMITS FOR BANKING – UK INSTITUTIONS
Unsecured Investments
Maximum
Counterparty
Limit and
Group Limit
(if applicable)
Bank of Scotland
Secured Investments
Maximum
Lending
Period
Maximum
Counterparty
Limit and
Group Limit
(if applicable)
Maximum
Lending
Period
£5,000,000
13 Months
£10,000,000
2 years
Barclays Bank Plc.
£5,000,000
100 Days
£10,000,000
2 years
Close Brothers Ltd
£5,000,000
6 Months
£10,000,000
2 years
Goldman Sachs International
Bank
£5,000,000
100 Days
£10,000,000
2 years
HSBC Bank Plc.
£5,000,000
13 Months
£10,000,000
2 years
Lloyds Bank Plc.
£5,000,000
13 Months
£10,000,000
2 years
National Westminster Bank Plc.
£2,500,000
35 Days
£10,000,000
2 years
Nationwide Building Society
£5,000,000
6 Months
£10,000,000
2 years
Royal Bank of Scotland
£2,500,000
35 Days
£10,000,0000
2 years
Santander UK Plc. (Banco
Santander Group)
£5,000,000
6 Months
£10,000,000
2 years
Standard Chartered Bank
£5,000,000
6 Months
£10,000,000
2 years
Counterparty - Banking UK
Institutions
* based on advice from Arlingclose
Page 138
Appendix D
Prudential Indicators 2016/17 – 2018/19
1. Background:
There is a requirement under the Local Government Act 2003 for local authorities to have
regard to CIPFA’s Prudential Code for Capital Finance in Local Authorities (the “CIPFA
Prudential Code”) when setting and reviewing their Prudential Indicators.
2. Gross Borrowing and the Capital Financing Requirement:
This is a key indicator of prudence. In order to ensure that over the medium term net borrowing
will only be for a capital purpose, the local authority should ensure that the net external
borrowing does not, except in the short term, exceed the total of the capital financing
requirement in the preceding year plus the estimates of any additional increases to the capital
financing requirement for the current and next two financial years.
If in any of these years there is a reduction in the capital financing requirement, this reduction
is ignored in estimating the cumulative increase in the capital financing requirement, which is
used for comparison with gross external debt.
The Head of Finance reports that the authority will have no difficulty meeting this requirement
in 2016/17, nor are there any difficulties envisaged for future years. This view takes into
account current commitments, existing plans and the proposals in the approved budget.
3. Estimates of Capital Expenditure:
3.1 This indicator is set to ensure that the level of proposed capital expenditure remains within
sustainable limits and, in particular, to consider the impact on Council Tax.
Capital Expenditure
Total
2015/16
Estimate
£m
2016/17
Estimate
£m
2017/18
Estimate
£m
2018/19
Estimate
£m
26.1
40.2
18.2
20.0
3.2 Capital expenditure will be financed or funded as follows:
Capital Financing
Capital receipts
Government Grants
Other Specific Grants
S106 Contributions
Revenue contributions
Total Financing
Supported borrowing
Unsupported borrowing
Finance Leases
Total Funding
Total Financing and
Funding
2015/16
Estimate
£m
1.6
2.4
9.9
2.0
0.9
16.8
4.0
5.3
0.0
9.3
26.1
2016/17
Estimate
£m
3.6
2.5
14.7
0.5
0.0
21.3
4.0
14.9
0.0
18.9
40.2
2017/18
Estimate
£m
1.2
2.2
1.0
0.0
0.0
4.4
3.6
10.0
0.2
13.8
18.2
4. Ratio of Financing Costs to Net Revenue Stream:
Page 139
2018/19
Estimate
£m
1.5
2.0
5.0
0.5
0.1
9.1
3.6
7.3
0
10.9
20.0
4.1 This is an indicator of affordability and highlights the revenue implications of existing and
proposed capital expenditure by identifying the proportion of the revenue budget required to
meet financing costs. The definition of financing costs is set out in the Prudential Code.
4.2 The ratio is based on costs net of investment income.
Ratio of Financing
Costs to Net
Revenue Stream
Total
2015/16
2016/17
2017/18
2018/19
2019/20
Estimate Estimate Estimate Estimate Estimate
%
%
%
%
%
8.4%
8.7%
8.8%
9.0%
9.2%
5. Capital Financing Requirements:
5.1 The Capital Financing Requirement (CFR) measures the Council’s underlying need to borrow
for a capital purpose. The calculation of the CFR is taken from the amounts held in the
Balance Sheet relating to capital expenditure and it’s financing.
Capital Financing Requirement
2015/16
Estimate
£m
360.2
Total CFR
2016/17
Estimate
£m
280.6
2017/18
Estimate
£m
283.7
2018/19
Estimate
£m
283.5
6. Actual External Debt:
6.1 This indicator is obtained directly from the Council’s balance sheet. It is the closing balance for
actual gross borrowing plus other long-term liabilities. This Indicator is measured in a manner
consistent for comparison with the Operational Boundary and Authorised Limit.
Actual External Debt as at 31/03/2015
Borrowing
Other Long-term Liabilities
Total
£000
190,400
51,160
241,560
7. Incremental Impact of Capital Investment Decisions:
7.1 This is an indicator of affordability that shows the impact of capital investment decisions on
Council Tax and Housing Rent levels. The incremental impact is calculated by comparing the
total revenue budget requirement of the current approved capital programme with an
equivalent calculation of the revenue budget requirement arising from the proposed capital
programme.
Incremental Impact of
Capital Investment
Decisions
Increase in Band D Council
Tax*
2016/17
Estimate
£
3.88
2017/18
2018/19
Estimate Estimate
£
£
5.99
5.77
2019/20
Estimate
£
3.89
*Assumes a 5% increase in 16/17 and 4.0% cumulative thereafter increase in Council Tax although no
decision has been taken to this effect. The Friars Walk Loan have been excluded from these calculation
as it is not part of the capital programme.
8. Authorised Limit and Operational Boundary for External Debt:
8.1 The Council has an integrated treasury management strategy and manages its treasury
position in accordance with its approved strategy and practice. Overall borrowing will therefore
arise as a consequence of all the financial transactions of the Council and not just those arising
from capital spending reflected in the CFR.
Page 140
8.2 The Authorised Limit sets the maximum level of external borrowing on a gross basis (i.e. not
net of investments) for the Council. It is measured on a daily basis against all externalborrowing items on the Balance Sheet (i.e. long and short term borrowing, overdrawn bank
balances and long term liabilities). This Prudential Indicator separately identifies borrowing
from other long-term liabilities such as finance leases. It is consistent with the Council’s
existing commitments, its proposals for capital expenditure and financing and its approved
treasury management policy statement and practices.
8.3 The Authorised Limit has been set on the estimate of the most likely, prudent but not worst
case scenario with sufficient headroom over and above this to allow for unusual cash
movements.
8.4 The Authorised Limit is the statutory limit determined under Section 3(1) of the Local
Government Act 2003 (referred to in the legislation as the Affordable Limit).
Authorised Limit for
External Debt
Borrowing
Other Long-term
Liabilities
Total
2016/17
Estimate
£m
350
2017/18
Estimate
£m
259
2018/19
Estimate
£m
255
47
397
46
305
44
299
8.5 The Operational Boundary links directly to the Council’s estimates of the CFR and estimates of
other cashflow requirements. This indicator is based on the same estimates as the Authorised
Limit reflecting the most likely, prudent but not worst case scenario but without the additional
headroom included within the Authorised Limit.
8.6 The Head of Finance has delegated authority, within the total limit for any individual year, to
effect movement between the separately agreed limits for borrowing and other long-term
liabilities. Decisions will be based on the outcome of financial option appraisals and best value
considerations. Any movement between these separate limits will be reported in the next
regular capital/treasury monitoring report to be submitted to Cabinet/Council.
Operational Boundary
for External Debt
Borrowing
Other Long-term
Liabilities
Total
2016/17
Estimate
£m
330
2017/18
Estimate
£m
239
2018/19
Estimate
£m
235
47
377
46
285
44
279
9. Adoption of the CIPFA Treasury Management Code:
9.1 This indicator demonstrates that the Council has adopted the principles of best practice.
Adoption of the CIPFA Code of Practice in Treasury Management
The Council approved the adoption of the CIPFA Treasury Management Code at its
Council meeting on 29th June 2009.
The Council has incorporated the changes from the revised CIPFA Code of Practice into its
treasury policies and procedures and will update its treasury management practice
documentation in due course.
10. Upper Limits for Fixed Interest Rate Exposure and Variable Interest Rate Exposure:
Page 141
10.1 These indicators allow the Council to manage the extent to which it is exposed to changes in
interest rates. This Council calculates these limits on net principal outstanding sums, (i.e.
fixed rate debt net of fixed rate investments)
10.2 The upper limit for variable rate exposure has been set to ensure that the Council is not
exposed to interest rate rises that could adversely impact on the revenue budget. The limit
allows for the use of variable rate debt to offset exposure to changes in short-term rates on
investments.
Upper Limit for
Fixed Interest Rate
Exposure
Upper Limit for
Variable Interest
Rate Exposure
Existing limit at
31/03/15
%
100%
2016/17
Estimate
%
100%
2017/18
Estimate
%
100%
2018/19
Estimate
%
100%
2019/20
Estimate
%
100%
50%
50%
50%
50%
50%
10.3 The limits above provide the necessary flexibility within which decisions will be made for
drawing down new loans on a fixed or variable rate basis; the decisions will ultimately be
determined by expectations of anticipated interest rate movements as set out in the Council’s
treasury management strategy.
11. Maturity Structure of Fixed Rate borrowing:
11.1 This indicator highlights the existence of any large concentrations of fixed rate debt needing
to be replaced at times of uncertainty over interest rates and is designed to protect against
excessive exposures to interest rate changes in any one period, in particular in the course of
the next ten years.
11.2 It is calculated as the amount of projected borrowing that is fixed rate maturing in each period
as a percentage of total projected borrowing that is fixed rate. The maturity of borrowing is
determined by reference to the earliest date on which the lender can require payment.
11.3 LOBO’s are classified as maturing on the next call date i.e. the earliest date that the lender
can require repayment and as most of these loans are on six monthly notice period, then
they increase the under 12 months percentage accordingly, though it is considered unlikely
all will be called within one financial year.
11.4 The greatest concentration of debt is in the financial year 2019/20 when the stock issue
(£40m) matures. A strategy to deal with the repayment will be prepared closer to the maturity
date.
Maturity structure of fixed rate
borrowing (Newport CC debt)
Existing level
at 31/12/15
%
Lower Limit
for 2016/17
%
Upper Limit
for 2016/17
%
under 12 months
12 months and within 24 months
24 months and within 5 years
5 years and within 10 years
50 years and above
18%
18%
19%
14%
7%
7%
3%
7%
7%
0%
0%
0%
0%
0%
0%
0%
0%
0%
40%
20%
70%
50%
30%
20%
20%
20%
20%
Page 142
12. Credit Risk:
12.1 The Council considers security, liquidity and yield, in that order, when making investment
decisions.
12.2 Credit ratings remain an important element of assessing credit risk, but they are not a sole
feature in the Council’s assessment of counterparty credit risk.
12.3 The Council also considers alternative assessments of credit strength, and information on
corporate developments of and market sentiment towards counterparties. The following key
tools are used to assess credit risk:
 Published credit ratings of the financial institution (minimum A- or equivalent) and its
sovereign (minimum AA+ or equivalent for non-UK sovereigns);
 Sovereign support mechanisms;
 Credit default swaps (where quoted);
 Share prices (where available);
 Economic fundamentals, such as a country’s net debt as a percentage of its GDP;
 Corporate developments, news, articles, markets sentiment and momentum;
 Subjective overlay.
12.4 The only indicators with prescriptive values remain to be credit ratings. Other indicators of
creditworthiness are considered in relative rather than absolute terms.
13. Upper Limit for total principal sums invested over 364 days:
13.1 The purpose of this limit is to contain exposure to the possibility of loss that may arise as a
result of the Council having to seek early repayment of the sums invested. For 2016/17, this
is expected to be significant due to the sale of Friars Walk, however risks will be reduced by
using only the approved investment counterparties limits.
Upper Limit for
total principal
sums invested over
364 days
2016/17
Estimate
£m
2017/18
Estimate
£m
2018/19
Estimate
£m
2019/20
Estimate
£m
100
5
5
5
Page 143
Appendix E – Minimum Revenue Provision (MRP) Statement 2016/17
1. The Welsh Government’s Guidance on Minimum Revenue Provision (issued in 2010)
places a duty on local authorities to make a prudent provision for debt redemption.
Guidance on Minimum Revenue Provision has been issued by the Welsh Ministers and
local authorities are required to “have regard” to such Guidance under section 21(1A) of the
Local Government Act 2003.
2. The four MRP options available are:
- Option 1: Regulatory Method
- Option 2: CFR Method
- Option 3: Asset Life Method
- Option 4: Depreciation Method
3. MRP in 2016/17: Options 1 and 2 may be used only for supported (i.e. financing costs
deemed to be supported through Revenue Support Grant from Central Government) NonHRA capital expenditure funded from borrowing. Methods of making prudent provision for
unsupported Non-HRA capital expenditure include Options 3 and 4 (which may also be
used for supported Non-HRA capital expenditure if the Authority chooses). There is no
requirement to charge MRP in respect of HRA capital expenditure funded from borrowing.
4. The MRP Statement will be submitted to Council before the start of the 2016/17 financial
year. If it is ever proposed to vary the terms of the original MRP Statement during the year,
a revised statement should be put to Authority at that time.
5. The Authority will apply Option 1/Option 2 in respect of supported Non-HRA capital
expenditure funded from borrowing and Option 3/Option 4 in respect of unsupported NonHRA capital expenditure funded from borrowing.
6. MRP in respect of leases and Private Finance Initiative schemes brought on Balance Sheet
under the International Financial Reporting Standards (IFRS) based Accounting Code of
Practice will match the annual principal repayment for the associated deferred liability.
7. In December 2013 the Council approved a loan of up to £89.1million to Queensberry Real
Estates (Newport) Ltd (QRE) to fund the building of the Friars Walk Development. The loan
is anticipated to be paid off in full via a capital receipt at the end of the three-year period.
On this basis, the Council will not be required to make MRP charges to the revenue budget
in relation to the Friars Walk Development loan as the borrowing will be paid off in full at the
end of the scheme.
Page 144
Appendix 10
MTFP
2016/17
Pressures
Inflation
Other
Total Pressures
Technical Adjustments
-
(INCREASE)/DECREASE IN REVENUE SUPPORT GRANT(-0.7%
16/17, 1.5% thereafter, flat 2019/20)
Increase in tax base - C.Tax @ 15/16 rate
C. Tax @ 5% in 16/17 (4% thereafter)
Less consequential increase in benefits
-
GAP
Savings
Balance - @ -1.5% WG reduction (2017/18 and 2018/19)
-
2017/18
2018/19
2019/20
1,887
10,449
12,336
2,041
3,192
5,233
2,905
3,007
5,912
3,005
3,038
6,043
1,900
-
-
-
121
549
2,634 732
8,105
8,647
541
Balance - @ -1.25% WG reduction*
Balance - @ -1% WG reduction*
Balance - @ -2% WG reduction*
*19/20 assumes no reduction in WG Grant
N/A
N/A
N/A
Page 145
TOTAL
9,838
19,686
29,524
-
3,137
2,126 489
6,733
3,047
3,090
2,146 493
7,350
676
- 2,166 498
4,375
510
3,686
6,673
3,865
3,163
2,641
4,732
6,165
5,654
7,682
-
3,865
3,865
3,865
1,900
6,348
549
9,071
2,212
26,564
13,684
13,194
12,160
16,280
Appendix 11 Reconciliation between MTRP in December 2015 Draft budget and
current
Inflation
Investments
Technical Adjustment
Savings
RSG / C Tax
16/17
1,887
9,410
- 1,900
- 10,870 - 1,924
December 2015 MTRP balances
-
3,397
17/18
18/19
19/20
2,041
2,905
3,005
2,451
2,312
2,374
2,215 532 510
3,590
3,444 - 1,668
5,868
8,129
3,201
Movement since Consultation / December 2015 MTRP
Investments
- increase to schools budgets for increasing pupil numbers
- increase infrastructure maintenance
- increased funding to support recycling services as external funding
reduced
- short term funding to tackle city centre parking problems
- additional funding to support 'rough sleepers'
- future year pressures National Minimum Wage
Savings
- remove saving EDU01 - cease funding for SPLD & AEN
- remove saving STS14 - land drainage and canal maintenance
- remove saving CFS02 - Integrated family support
- remove saving CFS05 - reduce children's services preventions team
- remove saving CFS06 - reduce children's services fostering/placements
- remove saving LR02 - cease city events
- remove saving LR06 - city marketing budget
- remove saving LR11 - city tourism
- remove saving CSDI002 - reduce customer services team
- reduce saving RIH18 by £40k - reduction in youth service and retain DoE
capacity
- remove saving agreed at Feb '15 - CCTV generating additional income is
no longer achievable
- defer saving CFS03 - children's social workers
- defer saving CFS01 - closie of Brynglas residential home
- defer saving SSA03 - LD reassessments
- defer saving SSA10 - Telecare
- defer saving SSA11 - Modernise transport provision in Adult Social Care
- defer saving PBC06 - Voluntary Sector grants
- defer saving STS01 - reduction in evenings/Sundays bus subsidies
- defer saving STS26 - review charging for special collections
- defer saving agreed at Feb '15 - Education Jouint working with Social
Services - out of area placements
- additional saving for reduction in anticipated level of Caldicot & Wentloog
Drainage Board Levy
520
350
110
34
25
741
260
50
25
15
35
46
20
20
13
185
25
15
35
18
54
20
9
52
144
297
531
58
104
63
52
44
-297
-531
-58
-104
-63
-52
-44
43
-43
-144
-95
-541
Page 146
664
40
RSG/C Tax - change of RSG assumptions
February 2016 MTRP balances
695
-2,092
-2,007
3,686
6,673
3,865
Appendix 12 Equalities issues
Overarching Equality Impact Assessment – Budget Proposals 2016/17
Assessing the potential impacts of decisions for equality communities is an important part of
the decision-making process. The potential impact of individual budget proposals have been
assessed using the Council’s Equality Impact Assessment process, as well as considering
the ‘bigger picture’ of these impacts.
These proposals were consulted on between 18th December 2015, closing on 22nd January
2016 in order to capture the views of Newport’s communities, and to feed into the process
before the proposals go to Cabinet in February. Cabinet’s final recommendations will be
made to the full council which meets in February 2016
Legal Context
Newport City Council has a legal duty under the Equality Act 2010 to pay ‘due regard’ to the
need to:
•
Eliminate unlawful discrimination, harassment, victimisation and any other conduct
prohibited by the Act;
•
Advance equality of opportunity between people who share a protected
characteristic1 and people who do not share it;
•
Foster good relations between people who share a protected characteristic and
people who do not share it.
In practice, having ‘due regard’ means that consideration of equalities issues must influence
policy and decision-making. Equality Impact Assessments are the tool that is used to shape
and demonstrate decision-making.
National Context
There are also a number of external factors that affect the context of the proposals that have
been developed. Whilst these factors are out of the direct control of the Council, they have
been considered in both the development of proposals and any mitigation that may have
been identified. These external factors include:
•
•
•
the UK and Welsh Governments’ spending review
Welfare Reform
Changes in Newport’s demography
How the Council’s proposals might impact equalities groups
Impacts on Newport City Council staff
Looking forward, the Council will be a smaller organisation, and the proposals that have
been developed present a change for staff, with a number of proposals across all services
areas which reduce the number of posts within teams.
However, the Council’s success rate at redeploying people remains high and it is committed
to working to protect jobs and ensure that staff are supported.
Page 147
Budget Proposals and Fairness and Equality Impact Assessments (FEIA).
There were a number of budget proposals where it was deemed Fairness and Equality
Impact Assessments (FEIAs) were required. FEIAs are used to look at the effect of any
change to services or employment from everybody’s viewpoint to make sure that it’s fair. The
following proposals/areas had FEIAs undertaken:














Customer Services Reduction
Ceasing delegation of AEN
Youth Service Review
Transport Policy
Land drainage and canal maintenance
Grounds maintenance review
Residential care
IT service delivery model
Voluntary sector
Telecare Service
Bus Services
Street Cleansing review
Special bulky collection review
Social worker reductions
The detailed results of these FEIAs are on the budget pages of the Council’s website at the
following link:
http://www.newport.gov.uk/en/Council-Democracy/About-the-council/Budget-consultation2016-2017.aspx
Page 148
Appendix 13 Projected 2016/17 Financial Resilience, Earmarked Reserves &
Summary of ‘Invest to Save’ spend and Forecast
LEVEL OF COUNCIL/SCHOOL RESERVES (CF) AND EARMARKED RESERVES (ER)
Year Ending 31st March
2012
£m
Earmarked Reserves
Council Funds
57.4
5.0
2013
£m
64.5
5.0
ER % of Budget
CF % of Budget
School Funds
24%
2.1%
3.6
27%
2.1%
4.4
2014
£m
71.2
5.0
2015
£m
76.1
8.9
2016
£m (est)
84.7
8.9
28%
2.0%
4.2
29%
3.4%
4.8
32%
3.4%
3.6
BUDGETED SOURCES OF REVENUE FUNDING
Total Revenue Funding
Revenue Support Grant and NDR
Council Tax
2012/13
£,000
192,799
44,457
2013/14
£,000
209,035
45,763
Page 149
2014/15
£,000
214,826
49,104
2015/16
£,000
209,254
52,117
2016/17
2016/17
£,000
% of budget
209,133
79%
55,299
21%
FINANCIAL PERFORMANCE AND RATIOS
Ratio
Calculation
Net Worth
Net Worth (excPension Liab.)
Working Capital Ratio
(Asset- Liabilities)
(Asset- Liabilities)
(Curr. Assets /Curr.
Liabilities )
(Borrowing / Total
Reserves)
Gearing Ratio
2011/2012
£'000
192,001
387,049
2012/2013
£'000
53,668
306,220
2013/2014
£'000
96,061
280,675
2014/2015
£'000
44,764
296,914
0.59
0.68
0.79
0.89
50.1%
44.1%
51.2%
45.5%
REVENUE PROJECTED OUTURN POSITION 2015/16 (Period 8 reported at January Cabinet)
Directorate
Children & Young People
Adult & Community Services
Education (inc schools)
Regeneration, Investment & Housing
Streetscene & City Services
Corporate Services
Total Directorates
Capital Financing
Contingency/ Provisions
Levies / other
Reserves /Transfer
Council Tax
Total Budget
Net Expenditure
Budget
20,469
38,169
100,506
9,441
17,507
16,170
202,262
28,960
5,165
20,119
4,864
261,370
Projected
Outturn
Variance
£'000
£'000
20,721
252
38,604
435
101,833
1,327
9,432
(9)
17,362
(145)
15,593
(577)
203,545
1,283
27,698
(1,262)
4,303
(862)
19,098
(1,021)
6,602
1,738
280
(280)
260,966 404
-
-
Variance
%
1.23
1.14
1.32
0.10
0.83
3.57
0.63
4.36
16.69
5.07
35.73
N/A
0.15
Revenue Savings Achieved and Unachieved 2015-16
MTFP SCENARIO
Financial Pressures
Funding Reductions (-0.7% 16/17, 1.5% thereafter, flat 19/20)
Budget Requirement Reduction
Council Tax @ 5% 16/17 (4% thereafter) Savings
Shortfall to Requirement
RSG Reduction scenarios
based on 1.25% reduction
based on 1.00% reduction
based on 2% reduction
2016/17
£'000
12,336
121
12,457
2,451 10,547
541
N/A
N/A
N/A
Page 150
2017/18
£'000
5,233
2018/19
£'000
5,912
2019/20
6,043
Total
£,000
29,524
3,137
8,370
1,637 3,003
3,730
3,090
9,002
1,652 676
6,674
6,043
1,668 510
3,865
6,348
35,872
7,408
14,736
13,728
3,207
2,685
4,776
6,165
5,654
7,682
3,865
3,865
3,865
13,237
12,204
16,323
Projected Earmarked Reserves
Balance at
31-Mar-15
£'000
Council Fund:
(8,926)
Balances held by
schools for future use
(4,760)
Movements between
Reserves
Transfers
Out
Transfers In
£'000
£'000
Via Comprehensive I&E
Account
Transfers
Out
Transfers In
£'000
£'000
1,171
Balance at
31-Mar-16
Type
Purpose/rationale for reserve
£'000
(8,926)
General
(3,589)
School's
General Reserve
Balances held by schools for their future
use
Earmarked
Reserves:
Page 151
Music Service
(165)
Capital Expenditure
(51)
Insurance Reserve
(1,772)
MMI Insurance
Reserve
(665)
(1,500)
(250)
(165)
Risk
(1,551)
Risk
(1,772)
Risk
(915)
Risk
This is a general reserve retained by the
Gwent wide Music Service and a traded
service and belongs to all trading
partners. Newport holds the reserve as
the hosting authority. The reserve is
held as a balance to cater for years
where trading income is below
expenditure and/or one off costs for reorganisation are incurred.
Amount included to fund risks of
delivery of Capital Projects e.g. abortive
costs, cost overruns
To assist in management of the
Council's insurance risks and provide
funds, over and above existing
insurance provisions for excessive levels
of claims/costs in any year.
To assist in future funding requirements
of MMI in line with the agreed 'Scheme
of Arrangement'
Balance at
31-Mar-15
£'000
Movements between
Reserves
Transfers
Out
Transfers In
£'000
£'000
Account
Transfers
Out
Transfers In
£'000
£'000
Balance at
31-Mar-16
Type
£'000
Page 152
Legal Claims
(100)
(100)
Risk
Health & Safety
(16)
(16)
Risk
Council Tax
Reduction
(500)
(500)
Risk
Education
Achievement Service
(92)
(92)
Risk
Schools
Redundancies
(225)
(179)
(404)
Risk
Friars Walk
(2,629)
(3,000)
(5,629)
Risk
Risk of future legal claims in relation to
a range of charges such as Social
Services, complaints and noncompliance etc
Responding to inspections and reports
from Health & Saftey Executive
Council responsible for cost overruns on
C Tax benefits, which is demand led.
Reserve covers specific budget risk on
this area and established when grant
funding transferred into RSG
Reserve held against Newports share of
any redundancy costs that may arise
from a restructure of the service as a
result of funding reductions from grant
allocations. Newport is a partner in the
service and has to take a share of any
costs that may arise.
Reserve has been created from
contributions from Schools to cater for
redundancy costs that arise through
schools who face financial issues. The
value has been negotiaited with the
schools as a contribution towards the
costs that have to be met by the LA.
established to assist with potential
future funding/risks in relation to the
Friars Walk Scheme
Balance at
31-Mar-15
£'000
Page 153
Gem Services
Reserves
(100)
Pay Reserve
(7,302)
Invest to Save
(7,520)
Super Connected
Cities
(1,041)
Landfill (fines
reserve)
Movements between
Reserves
Transfers
Out
Transfers In
£'000
£'000
Account
Transfers
Out
Transfers In
£'000
£'000
Balance at
31-Mar-16
Type
£'000
(100)
Risk
(2,452)
Enabling /
Risk
(13,670)
Enabling
250
(791)
Enabling
(163)
40
(123)
Enabling
Christmas Lights
(75)
29
(46)
Enabling
Capital Works
(1,250)
(1,750)
Enabling
3,500
1,350
(3,500)
(2,650)
(500)
Reserve created from service income
levels over and above grant income in
2014/15 to cater for anticpated
redundancy costs anticipated from
restructuring to cater for different
langauge sets, and potential reduction
in grant income.
Total Reward team costs, outstanding
equal pay claimants, hardship
payments.
To enable funding of specific
change/efficiency projects which
achieve savings to the revenue budget
Funding for Community Safety Network
over a seven year period including
project costs
Recycling initiative (door knocking
campaign) to increase recycling targets
Recover costs associated with Christmas
Lights until alternative funding sources
are found.
Established to fund specific capital
schemes which can then be included in
the Capital Programme which would
otherwise require borrowing costs to be
incurred, during current challenging
financial period.
Balance at
31-Mar-15
£'000
Page 154
Usable Capital
Receipts
(6,968)
STEP School
Computers
Movements between
Reserves
Transfers
Out
Transfers In
£'000
1,657
£'000
Account
Transfers
Out
Transfers In
£'000
£'000
(1,300)
Balance at
31-Mar-16
Type
£'000
(6,611)
Enabling
(879)
(879)
Smoothing
Municipal Elections
(86)
(86)
Smoothing
Local Development
Plan
(476)
(52)
(528)
Smoothing
Glan Usk PFI
(418)
(552)
(970)
Smoothing
Holds proceeds from the sale of
property, plant and equipment, used to
finance new capital expenditure.
Currently reserved for Council
contribution to 21C Schools programme
Reserve to match agreed income and
expenditure of 3 year STEP program for
schools. Schools charged annual
amount and any excess/deficit due to
timing differences held here.
Reserve used to smooth over significant
differences in annual budget required
over a cyclical period whilst keeping
budget at a stable annual amount.
Reserve used to smooth over significant
differences in annual budget required
over a cyclical period whilst keeping
budget at a stable annual amount.
Related to production and inspection of
the LDP and SPG's
Established to smooth out funding
differences that arised from funding
available and payments to the
contractor - reserve will balance over
life of project
Balance at
31-Mar-15
£'000
Southern Distributor
Road PFI
(42,484)
Works of art
Movements between
Reserves
Transfers
Out
Transfers In
£'000
£'000
Account
Transfers
Out
Transfers In
£'000
£'000
(2,014)
Balance at
31-Mar-16
Type
£'000
Page 155
(44,498)
Smoothing
(21)
(21)
Other
School Works
(424)
(424)
Other
Theatre & Arts
Centre
(233)
(233)
Other
Cymorth Income
(38)
(38)
Other
Pupil Referral Unit
(60)
(60)
Other
Chartist Commission
(50)
50
-
Other
Gypsy and Traveller
Site
(20)
20
-
Other
Established to smooth out funding
differences that arised from funding
available and payments to the
contractor - reserve will balance over
life of project
To fund purchases for the collections.
Reserve specifically for identified school
works - funded by school's themselves.
Reserve allows schools to build up
specific scheme reserves over a number
of years, where required.
Council agreed reserve as condition of
Art's Council funding of the Riverfront
Theatre.
To fund the provision of Domestic
Abuse Services.
Specific reserve for development of PRU
over and above refurbishment of new
premises.
To fund the replacement of the Chartist
Mural.
To carry out preparation, design,
consultancy activities with the
development of the Gypsy and Traveller
site identified in the LDP
Balance at
31-Mar-15
£'000
Movements between
Reserves
Transfers
Out
Transfers In
£'000
£'000
Account
Transfers
Out
Transfers In
£'000
£'000
Balance at
31-Mar-16
Type
£'000
Page 156
Homelessness
Prevention
(38)
(38)
Other
Environmental Health
- Improve Air Quality
(50)
(50)
Other
Refurbishment of a
Children / Older
People Homes
(80)
(58)
Other
ECDL Training
Package
(50)
(50)
Other
City Deal Reserve
(50)
50
-
Other
Great Western Cities
(50)
3
(47)
Other
(89,827)
22
5,157
(3,500)
2,985
(11,997)
(97,182)
There is a minimum amount that needs
to be spent on homelessness
prevention on an on-going basis. The
revenue budget is continually under
pressure of overspending due to the
obligation placed on the Authority to
house clients
To undertake highways work in a
specific area to improve air quality and
reduce noise pollution
Reserve established from 2014/15
underspending. There is a need to
refurbish our Residential Homes on a
regular basis to attract Service Users
and more importantly, to ensure they
meet the inspectors criteria.
Reserve established from 2014/15
underspending. To fund ECDL and
online IT training packages
To fund initial contribution to the City
Deal project
To fund the anticipated councils share
of an analysis of the economic impact of
the three cities
Invest To Save - Summary Forecast
Balance B/F 31.03.2015
Transfer from base budget
In-year transfer to reserve
Transfer from pay reserve
Total Balance prior to spend
Total Forecast Spend 2015/16
Invest to Save Forecast balance 31.03.2016
£'000
(7,520)
(950)
(1,700)
(3,500)
(13,670)
2,392
(11,278)
Further Funding Required:Bids & Change/Efficiency proposals as at
February 2016
2016/17
2017/18
2018/19
Remaining Invest to Save reserve available for
future Change/Efficiency Programme
Page 157
3,730
857
75
(6,616)
Appendix 14 Fees & Charges
SERVICE AREA: CORPORATE SERVICES
CURRENT
CHARGE
£
SERVICE DESCRIPTION
Registration Service
Approved Premises License
Ceremony Charges
Mansion House - Monday to Thursday
Mansion House - Friday
Mansion House - Saturday (includes Premier Package)
Approved Venue - Monday to Thursday
Approved Venue - Friday
Approved Venue - Saturday
Approved Venue - Sunday, Bank holidays
Register Office (simple ceremony)
Church/Chapel ceremony attendance
Naming and Vow Renewal Ceremonies
Booking fee
Mansion House - Monday to Thursday
Mansion House - Friday
Mansion House - Saturday (includes Premier Package)
Approved Venue - Monday to Thursday
Approved Venue - Friday
Approved Venue - Saturday
Approved Venue - Sunday, Bank holidays
Save the Date Fee
Legal notice of marriage or civil partnership
Certificate (issued same day)
Certificate (issued within 28 days)
Citizenship Ceremonies
Single Adult
LEGAL SERVICES
Local Land Charges (LLC1 & Con 29r)
Local Land Charges (LLC1 only)
Optional Questions
PUBLIC PROTECTION SERVICE
EAR PIERCING, ACUPUNCTURE, ELECTROLYSIS AND
TATTOOING-REGISTRATION
Premises
Practitioners
Tattoo Convention - Premises
Tattoo Convention - Practitioners
Page 158
PROPOSED
CHARGE
£
% INCREASE
1,400
1,500
7%
200
255
290
300
355
390
455
46
86
210
265
300
315
370
405
475
46
86
5%
4%
3%
5%
4%
4%
4%
0%
0%
70
200
255
290
300
355
390
455
20
35
4
7
80
30
70
210
265
300
315
370
405
475
25
35
4
7
85
30
0%
5%
4%
4%
5%
4%
4%
4%
25%
0%
0%
0%
6%
0%
110
6
110
6
0%
0%
12 (for 20
out of 22
questions)
15 (2 out of
the 22
questions)
12 (for 20
out of 22
questions)
15 (2 out of
the 22
questions)
0%
159
120
122
30
165
125
127
31
4%
4%
4%
4%
CERTIFICATE FOR VOLUNTARY SURRENDER OF FOOD
Voluntary Surrender Certificate (for first half hour and for
every additional half hour part thereof) (Plus VAT)
51
53
4%
TBC
TBC
4%
122
80
41
1,610
127
83
43
1,610
4%
4%
4%
0%
440
440
0%
77
80
4%
122
127
4%
As per the
Statutory
maximum
As per the
Statutory
maximum
866
50 extra per
additional
until up to a
max of
1,516
866
50 extra per
additional
until up to a
max of
1,516
0%
ii. Renewal of Licence made before application of existing
license
685
685
0%
(For larger HMO (6+ units of accommodation/households)
50 extra per
additional
until up to a
max of
1,335
50 extra per
additional
until up to a
max of
1,335
0%
866
866
0%
50 extra per
additional
until up to a
max of
1,516
385
50 extra per
additional
until up to a
max of
1,516
385
Collection and Disposal (To be determined by weight and
cost of disposal)
EXPORT HEALTH CERTIFICATES
Per Certificate
Per visit for up to three certificates
For each additional certificate
SEX SHOP
Application Fee – deducted from Full Fee [nonrefundable]
LOCAL LAND SEARCHES IN RESPECT OF CONTAMINATED
LAND ETC. [OTHER THAN THOSE UNDER THE LOCAL LAND
CHARGES ACT 1975]
(for first hour and for every additional hour or part
thereof)
UK ENTRANCE CLEARANCE - PREMISES INSPECTION
GAMBLING ACT 2005 – VARIOUS LICENCE / PERMIT FEES
HOUSES IN MULTIPLE OCCUPATION LICENSING FEES**
i. Initial Licence
iii. Renewal of Licence made after application of existing
license
HOUSING ACT 2004 NOTICE FEES
Each additional notice served at the same time charged at
35%
Fee charged by the contractor plus 20%*
*Fee charged plus “officer time” charge (up to a max. of
the above charge) where EH Manager agrees defaulter
has special circumstances.
PORT HEALTH SHIP SANITATION CERTIFICATES
Gross Tonnage
Page 159
0%
0%
0%
Up to 1,000
1,001 to 3,000
3001 to 10,000
10,001 to 20,000
20,001 to 30,000
Over 30,000
With exception of vessels with capacity to carry more
than 1,000 persons
Extensions to Certificates
Extra charges, based on actual costs, may be added for
exceptional costs such as launch hire, out-of-hours duty,
travel and re-inspections of ships subject to control
measures.
PORT HEALTH – WATER SAMPLING
i. Drinking water – Microbiological (First Sample) (Plus
VAT)
ii. Drinking water – Microbiological (Each subsequent
sample) (Plus VAT)
iii Legionella water sample (First sample) (Plus VAT)
iv Legionella water sample (each subsequent sample)
(Plus VAT)
PORT HEALTH – ORGANIC FOOD IMPORT CERTIFICATE
HEALTH & SAFETY - SWIMMING POOL/SPA POOL
RESAMPLES FOLLOWING UNSATISFACTORY RESULT (Plus
VAT)
PRIVATE WATER SUPPLIES
i. Commercial supplies
Sampling
Analysis (Check)
Analysis (Audit)
ii. Domestic Supplies (>1 dwelling)
Sampling
Analysis
iii. Domestic Supplies (1 dwelling)
Risk Assessment
Sampling
Grant of an authorisation
Analysis (taken under regulation 10)
Analysis (Check)
Analysis (Audit)
iv. Private Distribution Systems
Sampling
Analysis
* Maximum permitted by regulation
Animal Welfare/Dog Control Fees
[a] Riding Establishments
Up to 10 horses
11 to 20 horses
21 to 30 horses
[b] Animal Boarding Establishments
Page 160
75
110
170
225
285
340
75
110
170
225
285
340
0%
0%
0%
0%
0%
0%
585
585
0%
50
50
0%
50
52
4%
22
23
4%
66
69
4%
36
37
4%
54
56
4%
59
61
4%
77
100*
500*
80
100*
500*
4%
0%
0%
77
28
80
29
4%
4%
120
77
100*
25*
100*
500*
125
80
100*
25*
100*
500*
4%
4%
0%
0%
0%
0%
77
138
80
143
4%
4%
106
129
137
110
134
143
4%
4%
4%
Pet Sitters
Up to 25 animals
25 to 50 animals
Over 51 animals
[c] Pet Shops
[d] Dangerous Wild Animals
[e] Dog Breeding Establishments
[f] Zoo Licence
[For [a] to [f] above, in addition to the licence fee, the
licensee to pay the Council’s veterinary fees]
[g] Dog Kennelling Services**
Stray Dogs Reclaiming Fees:
Dogs reclaimed after one day
Dogs reclaimed after two day
Dogs reclaimed after three day
Dogs reclaimed after four day
Dogs reclaimed after five day
Dogs reclaimed after six overnight stays
Dogs reclaimed after seven overnight stays
Dog re-homing fee :
Puppies up to 1 years old
Dogs aged 1-3 years old
Dogs aged 3-6 years old
Dogs aged 6 years old +
[i] Fireworks – All year sales licence - All year sales
licence- set at statutory maximum
Street Trading Consents
City Centre Pitch - Application Fee (Full year)
City Centre Pitch - License Fee (Full year)
City Centre Pitch - License Fee (daily)
Street Naming
Property Naming/Renaming (does not cover newly built
properties
Single Plot Development
Development 2+ Plots
Changes to Development Layout after Notification
Street Renaming at Residents Request
38
120
137
160
100
460
100
877
40
125
143
166
104
478
104
912
4%
4%
4%
4%
4%
4%
4%
4%
87
100
113
126
139
152
165
87
100
113
126
139
152
165
0%
0%
0%
0%
0%
0%
0%
160
140
120
100
160
140
120
100
0%
0%
0%
0%
500
500
0%
150
2,500
45
156
2,600
47
4%
4%
4%
42
42
0%
114
114.40
+ 41.60 per
additional
plot
£41.60 per
plot affected
114
114.40
+ 41.60 per
additional
plot
£41.60 per
plot affected
0%
114.40
+41.60 per
property
114.40
+41.60 per
property
Confirmation of Address to Conveyancers etc.
42
** New charging schemes agreed during 15/16 by separate Cabinet Member Report
Page 161
42
0%
0%
0%
0%
SERVICE AREA: REGENERATION, INVESTMENT & HOUSING
SERVICE DESCRIPTION
CURRENT
CHARGE
£
PROPOSED
CHARGE
£
%
INCREASE
125
200
325
125
200
325
0%
0%
0%
466.67
466.6
0%
125
341.67
570.83
125
341.67
570.83
0%
0%
0%
203.13
406.87
610
203.13
406.87
610
0%
0%
0%
125
204.17
245.83
1,300
500
20
50%
70
130
125
204.17
245.83
1,300
500
20
50%
70
130
0%
0%
0%
0%
0%
0%
0%
0%
0%
N/A
N/A
0%
N/A
N/A
N/A
PLANNING & DEVELOPMENT
Building Control Fees
Various Fees based on size and type of building.
Examples of typical charges (excluding VAT)
Single storey extension floor area not exceeding 10m2
i) Plan charge
ii) Inspection charge
iii) building notice charge
Two storey Extension exceeding 40m2 but not exceeding
100m2
i) Plan charge
Creation of New Dwelling
i) Plan charge
Internal alterations
i) cost of works <£2000
ii) cost of works £2001 to £5000
iii) cost of works > £5000
Safety at Sports Grounds Certificate
Safety at Sports Grounds renewal
Letter of acceptance to AIs
Preliminary enquiries (% of plan fee)
Dangerous Structures (per hour)
Demolition Notice
Development Management Fees
(Various based on scale of development)
Pre-application advice
(Various depending on the scale of development, some of
which are statutory)
PROPERTY SERVICES
Market Rents
(Various based depending on size of stall and facilities
Civic Centre Room Hire
Council Chamber (per session)
Council Chamber (per day)
Committee Room 1 (per session)
Committee Room 1 (per day)
Review of charging policy being
undertaken by property consultants.
New charging policy (where applicable)
will be implemented in 2016/17
68
213
36
109
26
78
26
Page 162
68
213
36
109
26
78
26
0%
0%
0%
0%
0%
0%
0%
78
78
0%
26
26
0%
78
78
0%
21
21
0%
62
62
0%
62
62
0%
187
187
Equipment Hire
13
13
0%
Digital Projector
9.4
9.4
0%
Television
9.4
9.4
0%
Video
5.2
5.2
0%
OHP
5.2
5.2
0%
Screen
4.2
4.2
0%
Flipchart Stand
4.2
4.2
0%
Slide Projector
5.4
5.4
0%
Full facilities in Committee Room 7 including staff
57.2
57.2
0%
assistance
Council Chamber Microphones
28.6
28.6
0%
Council Chamber 1 Microphone
12.5
12.5
0%
Civic Centre Charging Eligibility
Full Charge
1 Industrial or Business Organisations
2 Organisations whose members are engaged in trade, business or professional practice (other than
student associations)
3 Statutory official or Government Bodies including Local Government except where reciprocal
arrangements apply
Half Price
Political, Social or Trade Union Groups not included under full price or Free
Free (this only applies to evening sessions)
1 Organisations devoted exclusively to charitable causes
2 Societies for the handicapped
3 Organisations for promotion of recreational activities for young people.
4 Trade Union Branches whose members are employed by Newport City Council
5 Any political group meetings of Councillors and invited guests are free of charge (provided that not
more than 25 % of the people attending the political group meetings are non-Councillors).
NB Any registered charities chaired by the Mayor of Newport can use the meeting rooms free of
charge at any time
COMMUNITY REGENERATION
Community Centres Room Hire
Caerleon Town Hall
Non Profit Making/ Voluntary Organisations (per Hour)
Town Hall
10
10.2
2%
Memorial Hall
7.8
8
3%
Council Chamber
7.8
8
3%
Hire of Kitchen
6
6.2
3%
First Floor
10
10.2
2%
Small Group Organisations (per hour)
Town Hall
12.7
13
2%
Memorial Hall
10
10.2
2%
Council Chamber
10
10.2
2%
Hire of Kitchen
7
7.2
3%
First Floor
12.7
13
2%
Commercial/ Business (per hour)
Town Hall
15.6
16
3%
Memorial Hall
12.7
13
2%
Page 163
Council Chamber
Hire of Kitchen
First Floor
Ringland Community Centre
Main Hall
Meeting Rooms
Hire of Kitchen
Special Events (all weekend and large event charged to be
set by Malpas Court)
Changing Rooms
Main Hall
Meeting Rooms
Hire of Kitchen
Special Events (all weekend and large event charges to be
Changing Rooms
Main Hall
Meeting Rooms
Hire of Kitchen
Changing Rooms
Alway Community Centre
Main Hall
Meeting Rooms
Hire of Kitchen
Changing Rooms
Main Hall
Meeting Rooms
Hire of Kitchen
Changing Rooms
Main Hall
Meeting Rooms
Hire of Kitchen
Changing Rooms
Bettws Day Centre
Main Hall
Day Club
Hire of Kitchen
Page 164
12.7
8.1
13.75
13
8.3
14
2%
2%
2%
10
7.8
6
10.2
8
6.1
2%
3%
2%
12.8
13.1
2%
12.7
10
7
13
10.2
7.2
2%
2%
3%
12.8
13.1
2%
15.6
12.7
8.1
16
13
8.3
3%
2%
2%
12.8
13.1
2%
10
7.8
6
10.2
8
6.1
2%
3%
2%
12.8
13.1
2%
12.7
10
7
13
10.2
7.2
2%
2%
3%
12.8
13.1
2%
15.6
12.7
8.1
16
13
8.3
3%
2%
2%
12.8
13.1
2%
10
7.8
6
10.2
8
6.1
2%
3%
2%
Main Hall
Day Club
Hire of Kitchen
Main Hall
Day Club
Hire of Kitchen
Mary Dunn
Main Hall
Training Room
Hire of Kitchen
Main Hall
Training Room
Hire of Kitchen
Main Hall
Training Room
Hire of Kitchen
Same tariffs also apply for Rivermead Centre
CULTURE & HERITAGE
Museum & Art Gallery
Educational Publications UK Rights
Educational Publications World Rights
Commercial Publications & Websites UK rights
Commercial Publications & Websites world rights
Publication Jacket, Covers & Homepages UK Rights
Publication Jacket, Covers & Homepages World Rights
Television Flash Fees UK rights
Television Flash Fees world rights
Digital Image 300 dpi
Ship Project
Staff Consultancy & Training services (per hour)
Staff Consultancy & Training services (per day)
Faro Arm Rental (per day)
Libraries
Fines (per day)
Overdue Administration Adult
Replacement Library Card
Lost Books and other items
Hire of Talking Books
Charge for late return of Talking Books
Public Access to Computers
Page 165
12.7
10
7
13
10.2
7.2
2%
2%
3%
15.6
12.7
8.1
16
13
8.3
3%
2%
2%
11.6
9.2
6
11.8
9.4
6.1
2%
2%
2%
14.4
11.6
7
14.7
11.8
7.2
2%
2%
3%
15.6
12.7
8.1
16
13
8.3
3%
2%
2%
17
33.5
34
70
80
165
80
160
6
18
35
36
75.5
85.5
175
86
170
6.5
6%
4%
6%
8%
7%
6%
8%
6%
8%
37
260
73
39
270
76
5%
4%
4%
0.3
0.2
-33%
0.29
0.3
0%
3.7
4
8%
Sliding scale linked to book price
1.3
1.4
8%
0.3
0.2
-33%
First hour
No Charge
0%
free 1 per
Materials Fee
Family History Research
Hire of Rooms
Transporter Bridge
Day Ticket - Adult
Day Ticket - Child
Gondola - Adult (one way)
Gondola - Adult (return)
Gondola - Child (one way)
Gondola - Child (return)
Adult & Community Learning
Discretionary Course Offer
Standard Room (table, chairs, white/ interactive board/
PC for tutor use) (per hour)
ICT Room (inc PCs for learners, kitchen/ equipment hire)
Deposit
Photocopying (per copy)
Accreditation
hour for
additional
hours
3
26
14/18.5
3.5
28
15/20
17%
8%
7%
2.75
1.75
1
1.5
0.5
1
3
2
1
1.5
0.5
1
9%
14%
0%
0%
0%
0%
12
12
0%
15
2p
15
10%
2p
0%
10%
0%
36
N/A
48
N/A
3 (per
credit)
Dependent
on
organisation
Agored Cymru (3 hrs per course)
Other awarding organisations
Page 166
SERVICE AREA: STREET SCENE AND CITY SERVICES
CURRENT
CHARGE
£
SERVICE DESCRIPTION
Cemeteries
EXCLUSIVE RIGHT OF BURIAL AND ISSUE OF DEED AND
MARKER
Please NOTE: A charge of £300 is included with full grave
space and £155 for a cremated remains space.
Standard Grave space not exceeding 2.15m x 0.76m (30’’)
including Headstone Permit
Grave space exceeding 0.76m (30”) width but less than
0.92m (36”) including Headstone
Grave space exceeding 0.92m (36”) width (double plot
required) including Headstone
Purchase of two Grave Spaces to accommodate
Fibreglass Burial Cube, including Headstone
Cremated remains in Garden of Rest – grave space not
exceeding 0.23m x 0.92m
Stillborn or child not exceeding one month
INTERMENTS – INCLUDING USE OF GRASS MATS AS
NECESSARY
Stillborn child or child not exceeding one month
Child one month to sixteen years
Persons exceeding sixteen years
Interment of second person in grave space on same day
Cremated remains in Full Grave Space
Cremated remains in Garden of Rest
Interment of second person cremated remains in same
space on same day
Scattering of Ashes
Scattering of Ashes of second person at same time
HEADSTONES AND TABLETS – INCLUDING ALL
INSCRIPTIONS
ALL PERMIT COSTS NOW INCLUDED WITH EXCLUSIVE
RIGHT
Columbaria Sanctum 2000 Units – above ground
Second and Subsequent Interment Sanctum 2000 Units
OTHER SERVICES AND ITEMS
Administrative research of Burial records (per 30 min
period)
Provision of Fibreglass Burial Cube
Provision of BROXAP Bench (£390) and Concrete Plinth
(£260) (when available)
TRANSPORT HIGHWAYS AND GREEN SERVICES
COMMUNITY TRANSPORT FEES
Community Transport Scheme – Membership fee*
Community Transport Scheme - Journey Fee*
*NCC has transferred the function to MCC to run as part
of Bus Service Support Grant. All fees and charges set by
MCC.
RASWA
Skip licence
Unauthorised Skips
PROPOSED
CHARGE
£
% INCREASE
915
952
4%
915
952
4%
1,490
1,550
4%
1,515
1,576
4%
437
454
4%
273
284
4%
No Charge
No Charge
995
158
220
220
No Charge
No Charge
1,035
164
229
229
N/A
N/A
4%
4%
4%
4%
52
54
4%
120
52
125
54
4%
4%
1,415
75
1,472
78
4%
4%
10
10.40
4%
702
730
4%
720
749
4%
5.20
1.56
N/A
N/A
N/A
N/A
36
140
38
146
4%
4%
Page 167
Private works: New apparatus Sec 50
Sec 50 – Single Dwelling new apparatus
Sec 50 – Licence for repair or replace
Sec 50 inspection – repair or replace
Sec 50 inspection of excavations >200m long (per 200m)
S171 Highway Excavation
Tower Crane Oversailing the Highway Licence: 10
Working days’ Notice required.
Road Space Booking
Vehicle Crossing Inspections
Pavement Cafe - Charge for table plus 4 chairs
Application to erect sign
Traffic Sign – Application to extend for excess 12months
PARKING
Residents parking permits
Visitor parking permits (Book of 10)
Bus service departure Fees (Market Square)
Bus service departure Fees (Market Square - local pick up)
Car Park Charges (exc Maindee)
Up to 3 hours
Up to 5 hours
Over 5 hours
Maindee Car Park
Up to 2 hours
Up to 5 hours
Over 5 hours
Allotment Rents
WASTE COLLECTION
Trade waste collection:Trade sacks
240 Litre bin
360 Litre bin
660 Litre bin
660 Litre bin hire
1100 Litre bin
1100 Litre bin hire
Bulky: Collection (minimum £10 non refundable charge)
Cesspit emptying:
1,000 gallons
2,000 gallons
WASTE DISPOSAL CHARGES
Active Waste
Disposal Charge
Inactive Waste
Disposal Charge
Excludes charges for asbestos. Pricing schedule to be
agreed by Cabinet Member.
PARKS AND OPEN SPACES
* No vat
Belle Vue Park
Page 168
354
354
354
229
354
187
368
368
368
238
368
195
4%
4%
4%
4%
4%
4%
125
130
4%
125
86
119
189
32
130
90
123
197
34
4%
4%
4%
4%
4%
16
6
2.13
0.75
17
7
2.22
0.78
4%
4%
4%
4%
1.00
4.50
2.00
4.00
5.50
100%
New
22%
£22 per
annum
+£3.20 per
perch
0.50
2.00
2.50
£23 per
annum
+£3.30 per
perch
New
New
New
1.95
5.36
7.15
9.24
2.20
12.82
3.66
10.60 per
item on
average
2.03
5.36
7.15
13.10
0.00
21.84
0.00
up to 3
items for
£20
4%
0.00
0.00
42%
0.00
70%
0.00
114
140
155
195
36%
39%
44.68
46.47
4%
44.68
46.47
4%
4%
0.00
Room Hire (vat ex.)
Community Groups/Charities*
Business Hire*
Wedding Photography - Annual Permit
Bandstand Per Events*
Wedding Hire - Ceremony & Reception
Wedding Ceremony Only
Wedding Reception only
Belle Vue Park - Residential Lodge Rent
Caerleon Pavilion
Caerleon Pavilion*
Sport & Leisure Pitch Hire
Football
Pitch Only (Adult) (per match/pitch) summer and winter
Pitch & 1 x Changing (Adult) (per all sports summer and
winter
Changing Room (per team)
Seasonal Football Charge Exclusive Use – Football Pitch
Only
Seasonal Football charge Exclusive Use - Football Pitch &
changing
Seasonal Football Charge Priority - Pitch Only
Seasonal Football Charge Priority - Pitch & changing
Seasonal Football Charge Standard - Pitch Only
Seasonal Football Charge Standard - Pitch & Changing
Seasonal Football Charge General Use - Sunday sides Pitch only
Seasonal Football Charge General Use - Sunday sides Pitch & Changing
Rugby
Rugby - Exclusive Use Pitch & Changing
Rugby - Exclusive Pitch Only
Rugby - Standard Pitch
Rugby - Standard Pitch & Changing
Events
Charity Events (discretionary)
Commercial Events per day (discretionary)
Bowls (Including use of Pavilion)
Competitive Matches per rink (one off events only)
Season ticket (Adult)
Page 169
11
23
68
39
432
361
289
379
12
24
70
41
450
375
300
394
4%
4%
4%
4%
4%
4%
4%
4%
11
11
4%
27
28
4%
34
36
4%
9
9
4%
806
838
4%
919
955
4%
424
518
307
414
441
539
319
431
4%
4%
4%
4%
280
291
4%
352
366
4%
919
806
307
414
955
838
319
431
4%
4%
4%
4%
108
217
113
225
4%
4%
18
135
19
141
4%
4%
SERVICE AREA: SOCIAL SERVICES
CURRENT
CHARGE
£
SERVICE DESCRIPTION
Part III Residential Homes (£/week)
Blaen-y-Pant
Parklands
Spring Gardens
Respite Facilities
New Willows (£ per week)
PROPOSED
CHARGE
£
% INCREASE
509.00
509.00
509.00
524.27
524.27
524.27
3.00%
3.00%
3.00%
1,395.27
1,402.25
0.50%
46.58
54.33
46.81
48.85
0.50%
-10.09%
834.30
12.90
46.58
54.33
838.47
12.18
46.81
48.85
0.50%
-5.58%
0.50%
-10.09%
Day Services (£/Day) Inter Authority Charges
Day Services/Opportunities
Spring Gardens Resource Centre
Income Collection a/c - collected through ABACUS
Supported Housing for LD clients (£/week)
Domiciliary Services (£/hour)
Day Services/Opportunities
Spring Gardens Resource Centre
Meal Income (per meal)
Day Services/Opportunities (Service Users & Staff)
Day Services/Opportunities (Visitors)
Blaen-y-pant (Service Users & Staff)
Blaen-y-pant (Visitors)
Parklands (Service Users & Staff)
Parklands (Visitors)
Spring Gardens (Service Users & Staff)
Spring Gardens (Visitors)
Residential – Provided by External Providers
Non-Residential – Provided by External Providers
Direct Payments
Page 170
2.05
2.09
2.00%
2.85
2.91
2.00%
2.05
2.09
2.00%
2.85
2.91
2.00%
2.05
2.09
2.00%
2.85
2.91
2.00%
2.05
2.09
2.00%
2.85
2.91
2.00%
Where services are provided by external
providers the charges made are based on
actual costs paid to providers (after
income assessment has been made)
Appendix 15 – Newport 2020
Page 171
Page 173
NEWPORT 2020
Contents
Introduction ...............................................................................................................................3
People and Business Change .....................................................................................................4
Law and regulation ..................................................................................................................10
Finance .....................................................................................................................................15
Adult and Community Services................................................................................................20
Children and Family Services ...................................................................................................27
Education .................................................................................................................................32
Regeneration, Investment and Housing ..................................................................................40
Streetscene ..............................................................................................................................46
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NEWPORT 2020
INTRODUCTION
The provision of high quality public services is critical to delivering our mission – “Improving People’s
Lives”.
In September 2013 we published the “Prospectus for Change”, which outlined how the delivery of
services would have to change to meet the ongoing financial challenge. It also set out how we
needed to change the organisation to be more responsive to the needs of our communities in a fast
growing city.
Now, at the beginning of 2016, it is important for us to reflect on progress and also to acknowledge
the changes we have seen over the last 3 years. The financial position has become more challenging
and this will continue until at least 2020. The city is also changing and services need to reflect the
different characteristics of the communities across the city. New legislation has also been passed,
such as the Future Generations Act and the Social Services and Wellbeing Act which has implications
for the organisation and our partners.
This document – Newport 2020 – sets out in detail how each service area in the council will continue
to meet the challenges we face. It identifies a number of key principles which will be central to the
ongoing transformation of the organisation:






Better use of technology
Ability to generate more income
How we can use community capacity more effectively?
How we can manage demand as the city grows and resources reduce?
What potential alternative delivery models could we consider putting in place?
What is the vision for each service by 2020 and how will we judge whether we have
succeeded?
It is also possible that by 2020, the structures of local government will look very different. This
would inevitably have a significant impact on the organisation, although the principles outlined
above would still be key to the delivery of better services to meet the needs to the communities of
the city.
The challenges ahead are significant. Newport has embraced the need to change to ensure our
communities are still well supported. Despite being a low funded council, recent performance has
improved and the council has managed its finances effectively. However much remains to be done
to ensure the council and the city are as well prepared as possible for whatever lies ahead.
A plan can only ever be a statement of intent. Circumstances inevitably change but this document
clearly sets out the aims of the council to ensure that by 2020 we have continued the journey of
change to meet the needs of our communities. Newport is a city of huge potential and we want to
ensure this is translated into new and better opportunities for everyone working and living in the
city. By focusing clearly on the future we will help to improve outcomes for all and continue to
deliver on our mission by Improving People’s Lives & providing the best affordable services
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PEOPLE AND BUSINESS CHANGE
CORPORATE SERVICES
1)
CURRENT POSITION
2015/16 Budget:
£ 6,411,000
No of Employees:
149 fte
KEY CHARACTERISTICS OF SERVICE TODAY
What the service looks like today & key challenges






Mixture of professional supporting and enabling functions and transactional activity.
Functions are largely in-house with some limited activity contracted to third party suppliers
Central for the effective development and delivery of the Change programme which
underpins the Council’s MTRP and to meet the external challenges imposed by national
governments and new legislation.
“Stretched” professional functions as a result of supporting the Council’s change activity
which underpins the Council’s budget, supporting front line activity and ensuring the
Councils Statutory duties are complied with.
Limited collaboration with other Council’s on elements of HR delivery and system.
Low wage professional functions in comparison with the Local and National markets.
The Service area comprises a diverse mix of enabling and transactional functions.




The Council’s HR function is made up of HR, Organisational Development, Employment
Services and Occupational Health and Safety.
The primary function of Business Improvement and performance is to lead the development
and delivery of the Council’s Change programme which underpins the Council’s medium
term revenue plan and take the performance lead for the Council to ensure that the Councils
statutory duty to make arrangements to secure continuous improvement as set out in the
Local Government Measure 2009 are met
Partnerships and Policy cover a wide range of strategy, commissioning and delivery
functions with both an internal and external focus. Co-ordination of the Local Service Board
and its constituent elements is a key function. The team also supports the Fairness
Commission, leads on Equalities and Welsh Language, manages the Domestic Abuse Unit,
Community Cohesion, Youth Engagement and Progression Framework and Families First.
Support is also provided for a series of policy areas including the budget consultation and
engagement process. Team also manages Wales Migration Partnership on behalf of the
Home Office
The ICT service is broadly split into three complimentary functions; User Support; Technical
Support and Schools ICT which support the ICT requirements of the council including schools
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
and is a key enabler of business change. The service supports over 200 separate applications
and is based in the civic centre.
The Information Management Team is responsible for ensuring that information is made
available in the right place at the right time to support decision making across all council
services and with our partner agencies. The team is also responsible for the provision of web
enabled geographic information services to the public and users throughout the Council. The
service also includes Document Services which provides mail, print, scanning and file archive
services.
KEY CHALLENGES
In addition to meeting service specific challenges outlined above, there are organisational and
external challenges which the Service area will also need to meet. These include :


Ensuring there is appropriate capacity and capability to support the Council (Services areas)
in making the key strategic and operational changes necessary in order to meet its
objectives.
Providing appropriate support for National Government measures to change the structure
and balance of the public sector and Local Government in particular, which may be
implemented over the next few years. (eg White Paper)
Historical low investment in ICT by the Council makes it difficult to invest in new technology
(Only 1.3% of the overall budget) and the need to rationalise the use of ICT across the board
to add consistency, make efficiencies and provide resilience.
STATUTORY SERVICES
Partnership and Policy Team









Current legislative responsibilities are drawn from the following acts
Crime and Disorder Act 1998
Crime and Disorder (Wales) Regulations 2007
Learning and Skills Act 2000, Children’s Act 2004
Children and Families (Wales) Measure 2010
Children and Young People’s Plan (Wales) 2007
NHS (Wales) Act 2006
Health Social Care and Well-being Strategies Regulations (Wales) 2003
Equalities Act 2010 and Welsh Language Act 2010.
Business Improvement and Performance

The Performance unit, whose mandate is driven by the Local Government Measure, is a
statutory function.

Health and Safety is a statutory function.
HR
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Information Governance







2)
Freedom of Information Act 2000
Data Protection Act 1998
Privacy & Electronic Communications Regulations 2003
Copyright, Designs & Patents Act 1998
Computer Misuse Act 1990
Malicious Communications Act 1998
Street Naming & Numbering Public Health Act 1925
VISION FOR THE SERVICE BY 2020
As an enabler HR & People services influences all key priorities in the improvement plan.
WHAT WILL BE THE KEY OUTCOMES?









Lead in the development and implementation of current and future government legislation
which directly affect the operation of the Council and its relationship with other public
sector bodies and its citizens.
To ensure the Authority has a strong performance culture and can be held to account by
internal and external scrutiny
To ensure timely, responsive and well thought out business change is delivered to release
service savings and improve services for the residents of Newport underpinned by enabling
technologies.
To develop robust policy and enable partnerships to flourish which remain accountable and
in line with the objectives of the Authority
To support the organisation through change with professional HR advice.
To support the organisation in maintaining a strong Health & Safety culture, as well as
reducing accidents and incidents.
Cloud services will be the norm.
Greater collaboration with other local authorities for ICT.
Compliance with the statutory responsibility for information security.
HOW WILL THE SERVICE CHANGE?





Professional enabling, ICT and support functions – move towards a shared
service/collaborative approach.
Transactional HR and Payroll – Move towards a national centralised model or shared service
but with a greater emphasis on technology led self service.
Public engagement facilitated as an on-going process in partnership with key statutory and
voluntary sector partners on a shared cost basis
Significant focus on working with partners to build community capacity to reduce burden on
services
Wellbeing Assessment will underpin all business planning processes
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

ICT will support services to seek out new ways of working and delivering services, and it will
align this with a move to a cloud services which will reduce and eventually remove largescale ICT equipment from machine rooms.
Making best use of the data and information we hold to increase knowledge and provide
more targeted services.
HOW WILL WE JUDGE PERFORMANCE?






Service Area performance measure targets
Unit costs
Compliance with Statutory duties
Satisfaction surveys
Achieving standards for FOI responses.
Reduced printing and greater use of electronic documentation
3)
HOW WILL EACH THEME CONTRIBUTE TO THE CHANGE REQUIRED AND
POTENTIAL SAVINGS?
WILL TECHNOLOGY DRIVE CHANGE IN SERVICE?






Underpin the streamlining of Transactional HR and Payroll processes
Enabling Self Service across the Council – People Manager
Procurement of IT facilities to undertake consultation and engagement
More on-line services, reduced face to face provision, less demand on Welsh Language and
Equalities (Access) provision
Use of technology to make the organisation digitally enabled, more responsive to customers;
enable the streamlining of business processes and support radical changes to service
provision.
Technology will be a constant drive in the improvement of the Customer Services & Digital
Technology service. Cloud technology will be an enabler for the rest of the council to change
and a move towards self-service for both internal and external customers will see savings
WHAT IS THE ANALYSIS OF DEMAND TO 2020 AND HOW WILL THIS BE MANAGED?
Service area demand is largely internal. Demand will be related to the following factors.





Size of the organisation
Support of statutory functions
Requirements of new Council reforming legislation
Size of the financial challenge – currently estimated at £30m reduction over the next three
years.
Wellbeing of Future Generations Bill will place significant burden on the resources available
to undertaken the required work, as will any recommendations from the Reforming Local
Government White Paper that make it into policy
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HOW AVOIDABLE CONTACT BE REDUCED?
People and Business Change are largely an internal facing Service area and avoidable contact is not
a major issue. However improvement to business processes which enable management of demand
will help to reduce the number of queries in the HR and Payroll team. However it is worth noting
from an overall Council perspective that the Reforming Local Government and Wellbeing of Future
Generations Bill will require us to have more contact with the public.
In the case of ICT, avoidable contact can be reduced through the development of more robust
infrastructure
HOW WILL COMMUNITY CAPACITY BE USED TO HELP DELIVER SERVICES?


The use of community capacity will be incorporated into the service reviews to identify and
exploit opportunities as part of the Council’s overall change programme. Greater
community involvement in the delivery of Council services will present us with challenges
which will need to be fully understood and met in order to ensure sustainable successful
outcomes.
The development of a more holistic approach to consultation and engagement will include a
key element of identifying and exploiting opportunities to utilise community capital to drive
service transformation. The further development of our spatial data capabilities and
Wellbeing Assessment will enable us to target communities with the right messages to
create the environment for community involvement. The third sector is critical to ensuring
this happens and we will use our resources and expertise to enable them to access funding
and work with communities on issues important to them. The Local Authority will act as
facilitator / commissioner rather than service deliverer.
WHICH SERVICES COULD BE DELIVERED IN DIFFERENT WAYS THROUGH
CONTRACTS/PARTNERSHIPS?





Professional enabling and support functions – move towards a shared service/collaborative
approach
Transactional HR and Payroll – Move towards a national centralised model or shared service
Partnership arrangements could be developed on a broader geographical basis, although
localism will remain very important.
Management of the Domestic Abuse Unit could be commissioned through a third party.
ICT delivery through local collaborative arrangements
WHICH CONTRACTS ARE IN PLACE NOW AND WILL BE REVIEWED AS PART OF THE
CHANGE PROCESS?

Occupational Health, Employee Assistance Programme, HR Payroll system, PBViews
system, Youth Council, Youth Engagement and Progression Framework - None of these
contracts are significant financially.
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ASSETS IN USE FOR SERVICE DELIVERY? CAN WE USE THEM MORE EFFECTIVELY?

Sharing business critical systems with other partners – e.g. ITrent
WHAT ARE THE OPPORTUNITIES FOR INCOME GENERATION?







4)
Expansion of professional activities to target of the Councils and public sector organisations
– Business Change and Performance/ HR/ Health and Safety/Training/ICT etc.
Expansion of HR and Transactional to other public sector organisations
Spatial Data development and analysis
Development of Wellbeing Assessments
Greater revenue from street naming and numbering.
Opportunities for selling our expertise in the Information Governance field.
Large scale printing as a service to other UA’s
PRESSURES ON SERVICE





Forthcoming legislative changes – Wellbeing of Future Generations Bill, Violence Against
Women, Domestic Abuse and Sexual Violence Bill
White Paper – Reforming Local Government
Demographic changes and impact on service delivery
Cost reduction pressure – requirement for cost saving needs to be balanced with a realistic
assessment of what enabling support is required for the organisation to implement the
required change programme.
ICT resilience
WHAT INVESTMENT IS REQUIRED TO DELIVER CHANGE PROGRAMME




Investment in enabling teams required to deliver change programme
Partnerships and Policy has already faced severe reductions in its budget at a time of
increased workload and upcoming legislative pressures.
Investment in Welsh Language provision
Investment in a robust consultation and engagement tool.
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LAW AND REGULATION
LAW AND REGULATION
1)
CURRENT POSITION
2015/16 Budget:
£ 6,493,000
No of Employees:
173 fte
SERVICE ANALYSIS
Service
Legal
Land Charges
Insurances
Elections
Democratic
Services
Registration Service
Environmental Health
Private Sector Housing
Licensing
Trading Standards
Animal Health/Dog Control
CCTV
ASB/Wardens
Subscriptions
Members Allowances
Neighbourhood
Funds
PR & Comms.
Newport Matters
Tourism
Nature
Statutory - Monitoring Officer and Solicitor to the Council (Local Govt. &
Housing Act 1989)
Other Legal services – essential support service. Demand-led.
Statutory – Local Land charges Act 1975
Proposed transfer of statutory function to HM Land Registry
Statutory – Employers liability
Statutory – Local Government Act and Representation of the People Act
Statutory – Local Govt. Act 2000 (Scrutiny)
Head of Democratic Services and Member Support (Local Govt. Wales
Measure)
Statutory – Registration Services Act, Births and Deaths Registration Act, Civil
Partnerships and Same Sex Marriages Act
Approved Premises ceremonies at Mansion House – discretionary
Statutory – Environmental Protection Act. Control of Pollution Act.
Duty to inspect and resolve statutory nuisances and offences.
Statutory – Housing Act, Environmental Protection Act
Duty to inspect and resolve statutory unfitness
Statutory- Licensing Act, Local Government (Misc. Provs.) Act. for taxis,
licensed premises etc.
Statutory – Consumer protection legislation, Weights & Measures, Trademarks.
Statutory – Animal Boarding Establishments etc. Environmental Protection
Act – stray dogs.
Discretionary – CCTV monitoring and out of hours call handling.
Discretionary – Anti Social Behaviour Police and Crime Act, Environmental
Protection Act. Low level crime and anti-social behaviour
Membership of WLGA and LGA – Local Government Act
Discretionary
Statutory – Local Government Act and Members Allowances Regulations
Discretionary – Local Government Act “well-being” powers
Discretionary – Local Government Act powers to provide information and
promote Council services
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LAW AND REGULATION
Law & Regulation provides a wide range of statutory and professional support services for internal
clients, Councillors and members of the public. It also carries out a wide range of statutory
registration, licensing, regulatory and enforcement functions, to protect the public.
The roles of the Monitoring Officer/Deputy Monitoring Officer, the Head of Democratic Services and
the “Proper Officer” are prescribed by legislation and the functions of the Registration Service,
Electoral Registration, Scrutiny, Environmental Health Licensing, Trading Standards and Local Land
charges are all statutory requirements.
Professional services such as Legal, Democratic Services, PR and Marketing directly support the
delivery of other statutory and regulatory services throughout the Council.
The services are largely demand-led and have to respond to the changing requirements of Client
services and customers. Therefore, workforce planning tends to be reactive and determined to a large
extent are by external factors such as new legislation
The challenge for the service is to meet this increasing demand and requirement for statutory
services against a backdrop of budget savings and further staffing reductions.
2)
This vision for future delivery reflects a number of key priorities from the Council’s Improvement
Plan 2015/16 including:

Improvement Objective 3 – Developing and Regenerating the City
The key outcomes for the service in 2020 will be the following:




Law and Regulation will be a modernised service delivering further efficiencies through
shared services and collaboration.
It will be equipped to deliver greater resilience to respond to changes in demand.
Discretionary services will be reduced to a minimum or discontinued altogether.
Statutory enforcement work will be prioritised and only essential or mandatory work will be
undertaken, thereby reducing the demand for legal enforcement work.
There is limited scope for radical change as many parts of the services are either statutory or support
the delivery of statutory or regulatory services. Therefore, for the most part, there is no option to
cease delivering the services as this would require a change in primary legislation.
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Professional support services such as Legal, PR and marketing could be outsourced or commissioned
but the costs of external provision have been tested on a regular basis and are higher. Collaboration
and joint service options have been explored with Legal Services and Trading Standards but the
business cases did not deliver service improvements or sufficient efficiency savings. Partnering
arrangements for back-office corporate services are also unlikely to deliver significant savings for
legal and administrative services.
Although greater use of technology and collaboration will improve service delivery, they will not
generate sufficient efficiency savings to meet budgetary requirements. The level of savings required
can only be delivered through a reduction in staffing costs and this, in turn, can only be achieved
through reducing or transforming the range and levels of services being provided. This will
necessitate a fundamental review of both statutory and non-statutory services in line with corporate
objectives.
HOW WILL WE BE JUDGED?
The modernised service will be judged by the following:



An improved more responsive service
A team focused on delivering essential statutory services. A flexible agile workforce able to
react to service needs
An open and transparent decision-making process improving democratic accountability and
providing a more robust corporate governance framework.
3)
POTENTIAL SAVINGS?
HOW WILL TECHNOLOGY DRIVE CHANGE IN SERVICE?
There is scope for greater use of technology and modernisation of working practices,e.g. further
development of legal case management systems, linked to e-conveyancing and secure court
portalsModern.gov system can be further developed to streamline democratic decision-making
processes.
Development of improved CCTV infrastructure will assist in selling the service to outside bodies
PR, Communications and marketing will make greater use of technology, including social media, to
disseminate information
The demand for services such as legal and public protection is likely to increase in the next 5 years
with the new legislation and additional statutory duties being introduced by Welsh Government.
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Democratic Services, Member support and Scrutiny are also likely to grow, as new Local Government
measures are implemented.
This increase in statutory functions can only be managed by reducing the demand for non-essential
or discretionary work.
Internal demand for support services can be managed through greater emphasis on business
partnering and providing client departments with proactive training and development.
HOW AVOIDABLE CONTACT BE REDUCED?
On-line registration systems for ERO and Registration services and on-line renewals for licensing will
reduce the need for customer contact.
Most statutory and regulatory services cannot be discharged through voluntary bodies or
community groups. Community councils could be empowered to undertake low level enforcement
work. Also, volunteers or community groups could be used to deliver parts or all of the Dog
Kennelling service.
WHICH SERVICES COULD BE DELIVERED IN DIFFERENT WAYS THROUGH
CONTRACTS/PARTNERSHIPS?
Registration Services, Electoral Registration, Licensing and Consumer Protection functions cannot be
outsourced and there are no alternative service delivery models. Back-office corporate support
services and regulatory functions can be delivered through collaborative arrangements with other
local authorities or public or private sector partners. Professional services such as legal and PR and
marketing could be outsources but at increased cost.
CHANGE PROCESS?
There are no significant procurement or commissioning arrangements
ASSETS IN USE FOR SERVICE DELIVERY? CAN WE USE THEM MORE EFFECTIVELY?
Property assets include shared accommodation at the Civic Centre, the statutory Registration Office
and Approved Premises at the Mansion House. Licensing staff are based at the Information Station
and CCTV in the City Centre
Discretionary fees and charges are reviewed annually in line with Council policy but most of the fees
are statutory and provide little opportunity for greater income generation. There may be an
opportunity through shared services and collaboration to provide professional services such as legal,
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insurances and public protection to other local authorities. However, additional resources would be
required to provide the capacity.
. We are exploring opportunities to generate additional income associated with the CCTV monitoring
service.
4)
FORTHCOMING LEGISLATIVE CHANGES
The Housing (Wales) Act will impose additional housing registration and enforcement dutiesThe
Planning Act, Well-Being of Future Generations (Wales) Act and Social Services and Well-Being Act
will impose additional duties on the Council and generate increased demand for legal and regulatory
work. Local government reorganisation and associated staff and property transfer orders will also
generate additional legal and democratic services work.
DEMOGRAPHIC CHANGES AND IMPACT ON SERVICE DELIVERY
Demographic changes will lead to additional demand for professional support services in areas such
as Education and Social Services and also statutory enforcement and regulatory work. Also
population changes will have a direct impact on front-line customer services, such as the
Registration Service and Electoral Registration
Further investment would be required for IT systems and infrastructure but, otherwise, the changes
would have to be delivered within existing resources
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FINANCE
1)
CURRENT POSITION
2015/16 Budget:
£ 2,709,000
No of Employees:
STATUTORY DUTIES
Function
Income Collection
Statutory Duty
Administration, billing and
collection of Council Tax
Local Government Finance Act
1992
collection of Non-Domestic
Rates
Local Government Finance Act
1988
Comments
Various: depending on service
area
collection of Sundry Debts (for
the provision of services, not
related to Local Taxation)
Control and reconciliation of
Housing Benefit, including
recovery of overpaid benefit
Internal Audit
Social Security Act 1986
Procurement – P2P
Strategic Procurement
EU Procurement Regulations
2015 – see right
Regulation 6 of The Accounts
and Audit (Wales) Regulations
2005 – see right
The Income Tax (Construction
Industry Scheme) (Amendment
of Schedule 11 to the Finance
Act 2004) Order 2015
“A local government body shall
maintain an adequate and
effective system of internal
audit of its accounting records
and of its system of internal
control in accordance with the
proper internal audit
practices”
As well as delivering value to
procurement activity through
advice, guidance and
maintenance of a corporate
framework to guide / control
activity, there is a need to
comply with EU rules for
tendering above certain
thresholds
Team manages the corporate
framework that controls this
and ensures compliance
All organisations require
appropriate ordering and
P2P
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payments processes that
meets needs for easy and
efficient transactions and
appropriate internal controls
Accountancy
S151 responsibility
Local Government Finance Act:
Requires all LA’s to appoint an
appropriately qualified person
to be responsible for financial
matters
Local Government Finance Act;
S151 responsibility achieved
through provision of an
appropriately staffed
accountancy function
As well as statutory role, key
role is to add value to the
organisation
Need to maintain appropriate
accounting records and annual
accounts
The finance team provide a central function at the heart of the Council. It fulfils a compliance and
business advisory service.
There are challenges in the service including lack of a continuous improvement process. We have
now developed a business partnership approach. We need to do more to encourage service users
onto self -service tools. . Finance also needs to develop a higher level of awareness and skills in
financial planning and management for the rest of the organisation.
2)
This vision for future delivery reflects a number of key priority from the Council’s Improvement Plan
2015/16 including:

There will be a series of key outcomes as a result of service changes prior to 2020. These include the
following:


Increased self –service from better informed and engaged budget / service managers
internally and C Tax payers externally
Knowledgeable and skilled budget / service managers – managing their finances and other
activity
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FINANCE





Increased time devoted to added value tasks with increased focus on transactional areas,
changing how service areas do business and influencing / changing working practices where
needed
Reduced operating costs.
Increased level of Council Tax collection
Improved robust audit service
Intelligent and managed procurement across the Council
There will be tighter performance management in relation to local taxation, improved pre-payment
options for Sundry Debts and reduced unit transaction costs by customers using electronic channels.
The procurement function will purchase smarter with improved management information and
technology and Internal Audit will also change, becoming leaner. There is a possibility that as we
move towards 2020, transactional finance functions may be a shared service across a number of
authorities, as will internal audit services.
The service will be judged with a series of performance measures including the following;






Increase in Local Taxation collection levels
Reduction in number of Sundry Debts invoiced in arrears and lower levels of arrears and
write-off’s.
Reduction in the cost of the service
Reduction in the number of direct face to face customer contact.
Smarter procurement across the organisation
A robust audit service reacting to the needs of the Authority
3)
POTENTIAL SAVINGS?
Citizens will be offered an account based service so that local taxation data can be viewed online and
changes such as of address can be done through self-service. This will reduce phone call volume and
paper based communications. Through new ways of working technology will streamline processes
across the service which will make efficiencies and improve management/financial information.
The most prominent demand will arise from the following areas:
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




A continuous increase in the number of council tax payers, as the number of dwellings in the
City area grows year-by-year. The increase during the course of 2014/15, for instance, was
over 500.
Increased level of outsourced services requiring financial services
Impact of NPS on the procurement function
Potential changes to Council Tax legislation
Generally, the pressing need to fund a greater proportion of services locally, as funds from
Government reduce.
As a consequence of a corresponding requirement to reduce operating costs, a greater reliance will
be placed on automated technologies and e-transactions.
HOW CAN AVOIDABLE CONTACT BE REDUCED?
Avoidable contact can be reduced through the promotion and development of online services and
automated systems, such as Direct Debits and Touch Tone payments. There will also be a drive
towards management self-service to reduce avoidable contact internally
There may be an opportunity to utilise the community more in the budget setting process through
further engagement.
WHICH SERVICES COULD BE DELIVERED IN DIFFERENT WAYS THROUGH CONTRACTS /
PARTNERSHIPS?
There is an opportunity to deliver financial services through contracts, partnerships or
collaborations. The service could be delivered in a partnership with neighbouring authorities or
other public sector bodies. In addition to this there could be a way of using the National
Procurement service to deliver some services
There is also an opportunity to developing a more effective use of enforcement agent services for
debt collection.
CHANGE PROCESS?
The only contract in place presently is with an Enforcement Agent service.
ASSETS IN USE FOR SERVICE DELIVERY AND CAN WE USE THEM MORE EFFECTIVELY?
The service does not have any physical assets apart from its computer system which will evolve with
improved technology making it more effective
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There are opportunities for generating further external income including the following:



4)
The development of more effective system for the collection for Local Taxation.
Potential to charge up to 200% Council Tax on long-term empty dwellings from 2017/18 –
subject to WG Commencement Order and Council resolution.
Reducing service area debts arising by moving to pre-payment, rather than invoicing after
the services have been provided.
Due to the drive to generate income across the Council there is an increased pressure on finance to
collect this additional money. There is also further pressure as Council budgets shrink.
To deliver these changes there will need to be investment in some areas to enable them to be
achieved these will be in the following areas.



Promotion of online services – e-billing, etc.
Minor software costs to improve debt analysis in Local Taxation
Legal resources to pursue unpaid Social Care debts
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ADULT AND COMMUNITY SERVICES
PEOPLE
1)
CURRENT POSITION
2015/16 Budget:
£ 38,548,000
No of Employees:
415 fte
Adult Services provide a range of community care and adult services to meet the assessed need of
adults over the age of eighteen who are vulnerable for a number of reasons, and to promote
independence. The Service works within a diverse group of people who have wide ranging needs
including:






Mental health
Dementia
Learning disability
Substance misuse
Asylum seekers and refugees
Physical and sensory disabilities
Between 2010-2011 and 2014-2015 the number of service users in receipt of commissioned services
has decreased from 3576 to 2801.
As demonstrated, the volume of people in receipt of adult social services has reduced. There are
many factors that have contributed to this including increased use of reablement models (Gwent
Frailty Service); increased use of telecare services; well-planned supporting people services in the
community; applying eligibility criteria more accurately.
Adult Services currently provides service to 2801 people. Ths is split between community based
services (83%) and longer term residential care services for 2014/15 (17%).
There are also key challenges evident within the Adult Services Commissioning Strategy (2014-2017),
as listed below:





Increasing demographic pressure
Increasing demand for support to remain at home
Higher demands on local authority funding
Client expectations
Increasing complexity of need
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Social Services and Wellbeing (Wales) Act 2014






2)
Increased focus on wellbeing
Development of ‘Self Directed Support’ model
New statutory duty to assess and support carers
New statutory duty to provide information, advice and assistance
Reinforced importance of safeguarding and duties to protect vulnerable adults
Statutory guidance (s7 of the Local Authority Services Act 1970) re. collaborative
partnerships
Promoting the independence and wellbeing of citizens, their families and communities through a
range of effective support services
The vision for adult services supported the attainment of Improvement Plan 2016/2016


Objective 1 ‘Supporting Older People Leaving Hospital’
Objective 2 ‘Improving Care and Support for Adult Services’
This will be achieved by a number of measures including review of care packages, improved care
planning, integrated assessments for older people, wellbeing support, prevention and early
intervention and managed care.
An Action Plan has been developed following extensive consultation to deliver the commissioning
strategy. The focus is on the following:






Information, advice, and assistance
A truly person-centred approach to assessment
Promoting active living in old age
Increasing Day Opportunities for Working Age Adults
Promoting independence in early adulthood
Support for Carers
To achieve the action plan and ensure we deliver on the strands of change we have initiated a
number of programmes and will be making a number of changes to services:


Active living in old age - a project to promote independence for older people. Older person’s
prevention pathway - a joint project with health to deliver integrated preventative services
linked to GP practices
Promoting Independence and choice - a project to modernise services for learning disabled
people so that the care they receive is outcome focused
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


Integrated commissioning and quality assurance service – we will create a single unit to drive
forward the changes in commissioning and contract management required to deliver on the
vision
Integrated Safeguarding services - we will create a single unit to ensure we have the most
effective safeguarding services
The action plan is divided into the three strategic commissioning priorities:
o Strategic Priority No 1: To provide access to information and community resources
for everyone who needs it
o Strategic Priority No 2: Effective prevention and early intervention for people with a
social care need
o Strategic Priority No 3: Everyone that has an eligible care need receives outcome
focused person centred social care
To achieve this vision we need to invest our effort in:


Universal wellbeing support: these are services that support individuals and families to
maintain their independence within the community
Prevention and early intervention: these are targeted services that stop needs escalating or
reduce the level of need for social care services over the long term
By shifting some of our focus we will achieve over the long term better outcomes for individuals,
families and communities as well as meeting the financial challenges. This shift in focus is based on
a planned reduction in managed care and increased levels of prevention, early intervention and
universal wellbeing and support.
As a consequence of the investment we expect to see an increase in the total numbers of people
better able to self-manage their care. We also expect to see an increase in the proportion of people
receiving prevention and early intervention services in relation to managed care services.
Despite these changes, managed care will remain by far the most significant area of spend by
Newport City Council Social Services. Managed care is the care that local authorities have a statutory
obligation to provide to people with eligible care needs. Individuals who receive managed care
undergo an assessment process that identifies the level of need and the services that we can
provide.
We will refocus managed care so it is truly outcome focused. This is because we believe that
everyone including those with very complex care needs should be supported to live as independent
lives as possible
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Framework for delivering on the vision
We will promote the independence and wellbeing of citizens, their families and communities
through a range of effective support services by commissioning through
Universal wellbeing and
support
What is required
Access to information and
community resources for
everyone who needs it.
What is the outcome
Everyone in Newport
having access to the
information and advice
they need to enable them
to maximise their
wellbeing and live
fulfilling independent
lives within the
community.
Prevention and early
intervention
Managed care
Effective prevention and early
intervention for people with a
social care need
Efficient outcome-focused
‘managed’ care for more
vulnerable citizens
Everyone that requires it
receiving effective prevention
and early intervention services.
These services will enable this
group of people to maximise
their wellbeing and regain their
independence without having
to rely on complicated
assessments or care packages.
Everyone that has an
eligible care need receives
efficient high-quality
outcome-focused managed
social care.
How will we measure success?
Increase in the
Reduction in individuals
community resilience to
requiring long term managed
enable individuals and
care as a result of prevention
families to self-manage
and early intervention.
low levels of social care.
An increase in the number
of people whose care plan
changes as a result in a
positive outcome of a care
service.
3)
POTENTIAL SAVINGS?



New Ways of Working including the use of mobile technology
Development of self-assessment process shifting to on line solutions
Better contract compliance through the use of Abacus and Swift interfaces
Development of a market position statement aimed at existing and potential providers of adult
social care containing vision, opportunities, , supply and demand, The council has a commitment to
stimulate a diverse, active market where innovation and energy is encouraged and rewarded; and
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where poor practice is not tolerated. The Market Position Statement seeks to balance three
priorities:



Stimulate the market to provide a wide choice of innovative flexible services, meeting the
Personalisation / Citizen Directed agenda and increasing service user satisfaction.
Engaging with local and regional providers to promote the local economy.
Delivering efficiencies whilst improving quality.
Some of the key messages relating to the current and likely future of community support needs of
adults are summarised below:










The number of people with a Learning Disability in Newport is expected to increase by 3%
The number of older people with a severe visual impairment is predicted to increase
The number of people predicted to have a profound hearing impairment is predicted to
increase
The number of people expected to be unable to manage at least one mobility activity is
expected to increase, particularly for people aged 70+.
The number of people who misuse drugs and binge drink is expected to increase
The number of people aged 16+ estimated to have any mental health problem is expected to
increase
The number of carers aged 65 and over is predicted to rise
The number of older people receiving a community based or residential service is expected
to significantly increase.
The demand for services to older people will increase as the shape of the local and national
population changes as a result of advances in medical science meaning more people are
living longer.
There is predicted to be an increase in chronic conditions based not only on an increasing
older population but also on life style choices
This rise in demand will not be matched by Government funding meaning a new approach is needed
to how social care and support is delivered. This will be managed by an early intervention and
prevention strategy and avoidance of managed care.
We are trying to ensure that we engage with people at an early stage to avoid longer term
dependency on statutory services.
For people who do need to contact adult social services we want to ensure effective information,
advice and assistance. We aim to manage expectations and utilise community connectors to ensure
people have appropriate information and are supported to seek community based solutions.

Developing community enterprises
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




Linking with Communities First
Optimise Supporting People services
Third sector market growth
Engagement with business development in City
Community Connectors to explore community solutions and stimulate volunteering
PARTNERSHIPS?







Domiciliary care via community enterprise/cooperatives
Day opportunities provided via third sector/community enterprise/voluntary sector
Joint assessment teams with integrated teams across health and social services
Direct payments support
Collaboration across the Council e.g. Communities First, housing, customer services, IT
Arm’s length arrangement for provider services
Third sector partnership for community prevention work
CHANGE PROCESS?




















Care homes for Older People
Placements for Adults with Learning Disabilities
Short Breaks / Respite
Domiciliary Care Provision
Services in the Community
Extra Care Provision
Telecare
Equipment
Frailty
Re-ablement
Older People (Community Based Care)
Respite Care – Older Persons
Direct Payments
Physical Disability Placements
Learning Disability Placements
Appointeeships
Services for Carers
Mental Health and Older Mental Health Services
Advocacy
Day Services
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We have buildings assets in provider services. Due to registration requirements care homes have
very little scope to be used in alternative ways as these are people’s homes and are regulated on
that basis.
Modernisation of the current day opportunities is rationalising the use of these building’s and our
focus is to move away from traditional building based services.



4)
Within the 2015/16 we identified additional income generation within the parameters of a
capped maximum charge arrangement for community based services.
There is an opportunity for minimal income generation from changes to the appointeeship
team. This has not been fully costed at this time.
There is little else we can consider to generate further income from adult services.






Implementation of forthcoming legislative changes – current and future.
Develop and enhance existing partnerships e.g. ABUHB, communities and housing , Children
& Family Services - Transitions Local Government Reform
Change programmes would need to be delivered with Business Improvement support and
within existing service area resource capacity.
Commissioning capacity and development of relationships with the third and independent
sectors.
New approaches to business process redesign and use of technology for administration and
service support elements
Implementation of the new Social Services and Wellbeing Act and the change to the
legislative framework



Investment will be required to deliver the significant change programme within the required
timescales
Workforce development within social services to support the change in culture and deliver
the aspirations of the Social Services and Wellbeing Act
Support for the change required across the council to improve access to wellbeing services
such as Housing and information and advice
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CHILDREN AND FAMILY SERVICES
1)
CURRENT POSITION
2015/16 Budget:
£ 20,089,000
No of Employees:
334 fte
Children & Family Services provide a range of services to families and children in need including specialist
provision for those most vulnerable and at risk of social exclusion. This incorporates those children at risk of
significant harm, disabled children, children looked after and unaccompanied
Operations (Statutory)
The teams undertake first point of contact for referrals from the public and other agencies. They assess
need, investigate children at risk of harm, prepare complex assessments and multi- agency plans, convene
child protection strategy meetings and conferences, co-ordinate plans, conduct reviews and report on
progress. They initiate care proceedings, provide complex reports to court and assess, plan, review the needs
of children in care and put in place permanency plans for children who cannot remain with their birth
parents.






Duty and Assessment Team
Child Protection and Children in Need Teams x 4
Disabled Children’s Team
Looked After Children’s Teams x 2
16+ team
Youth Justice Team( Improving outcomes for youth justice improvement plan 15-16 )
Long Term Placements (Statutory)
The teams provide the direct care for children who live in residential homes, support and develop our inhouse fostering services, coordinate our Out of Authority placements, promote educational achievement,
provide training and therapeutic support to enhance emotional and mental wellbeing.



Residential Services
Fostering Team
Matching and Placement Support Team
Integrated Family Support Services - Support at Home (Statutory/ Discretionary)
The teams provide a range of evidence based, outcome focussed interventions designed to reduce risk in
families, improve resilience and avoid the need for more acute services. They work with the frontline social
work teams to prevent children coming into the care system unless it is absolutely necessary. They support
families when children are being rehabilitated to the care of their birth families and provide court ordered
supervised contact as well as certain key programmes requested by the courts.
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The services all meet statutory requirements apart from the preventions service which provides for
vulnerable children and families who otherwise would in the future need a social work intervention.




Integrated Family Support Team
Family Assessment and Support Team including family support workers
Family Contact Service
Prevention Services
Safeguarding and Quality Assurance (Statutory/Discretionary)
The child protection unit is a statutory service of Independent Reviewing Officers who chair child protection
conferences and children in care reviews. In addition the Unit undertakes Strategy meetings for all
professionals. There is some additional capacity for quality assuring safeguarding activity.
Our Commissioning Strategy 2012 -2015 sets out 3 key priorities:



To support children to safely remain in their families
To improve outcomes for children in care and care leavers
To make the best use of resources
KEY CHALLENGES







2)
The immense pressure on front line social workers who are dealing with children and families who
are at considerable risk
The significant demands on social workers from the courts since the Family Justice Reforms with
case management from the Judiciary for cases to be completed in no more than 26 weeks, a
welcome decline in expert reporting but as a consequence increased pressure on social workers to
assess and provide a range of reports, and a greater emphasis on assessments of a greater number
of family members
The volume of need and managing the expectations and fears of the public and other agencies
Finding suitable placements for children with complex needs and challenging behaviour
Managing budget pressures particularly on placements for children in care
Managing increasing expectations from CSSIW
Preparing for the Social Services and Wellbeing (Wales) Act 2014 which is highly aspirational and
raises expectations and new duties



Children are protected from harm by timely and effective intervention
Vulnerable children and families receive appropriate help at the earliest point that need is identified
Children and families who receive help are able to demonstrate improvements in wellbeing and
reduction in risks
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


Services working with children and families are able to join together to provide a seamless pathway
of service provision from prevention through early intervention to acute services
Services are person centred, outcome focussed and evidence based
Attainment of Improvement Plan 2015/2016 Objective 8 ‘Improving Outcomes for Youth Justice’
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Continued improvements in management control of decision making pathway and performance
Integrated management (Safeguarding, Commissioning and QA)
Integrated processes and integrating services along a seamless pathway (Team Around The Cluster)
Pooled budgets for Out of Authority placements
Pan Gwent shared working - YOS, IROs, MASH
Resourcing prevention and early intervention in line with the requirements of the Social Services and
Wellbeing Act
Continued development of links and partnerships with Education
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Delivery on Key Outcomes described above
Meeting the proposed Outcomes Framework
Attaining above our benchmark group in all areas of performance
Quality of partnerships - external and internal
Effective budget management
Improving performance
Evidence of innovation and good quality customer service
Regulators are reasonably happy with us
3)
HOW WILL EACH THEME CONTRIBUTE TO THE CHANGE REQUIRED AND POTENTIAL
SAVINGS?
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Currently exploring with legal services the introduction of electronic court documentation. The main
advantage will be to legal services but with some advantage within Children’s Services.
With the other Gwent LAs we are looking at using Skype for reviewing when children are placed
away from the LA area.
Improved use of electronic case management
More effective and formalised use of social media for communication with families
and improved participation of service users
We have a “bubble” of children coming through the system. Further reductions in the numbers of looked
after children will depend on continued use of family support and preventions services. The trajectory of
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demand over the past five years shows little sign of diminishing. The continued levels of child deprivation,
increasing numbers of children from diverse backgrounds, the moving of families into South Wales for
cheaper housing costs, diminution of other services and the publicity from high profile child abuse cases all
impact on continued demand. Children’s service is a reactive provision and has to respond to where demand
is. Services are delivered from a central point to the whole city
The requirements of the Act for greater preventative services along with the ministerial directive to further
reduce the number of children in care places an imperative to manage demand to continue to reduce the
number of children in care. Managing demand by offering sufficient prevention to avoid more intensive later
services requires an effective balance of resources and management of risk.
Children’s Services is not usually a service that users wish to access. Thus the potential to avoid contact is
limited. However, ensuring every contact is effective, improving the quality of contacts, avoiding wasted
contacts, and mitigating the need for re-referrals are areas which require focus
The third sector within children’s social care is primarily grant funded or commissioned. There is limited
access to wider resource. The use of community capacity to deliver statutory Children’s Services is limited.
Children’s Services links with for example Changing Minds, Skills for Living programmes funded by the Big
Lottery. Community capacity linked to preventions work could be explored but this will require support and
work to develop.
PARTNERSHIPS?
The Barnardo’s Partnership has levered in additional resource. The potential risk to the Partnership is
twofold because of the budget pressures both within the Local Authority and Barnardo’s. The current
Partnership ends in 2018.
There are existing arrangements for Emergency Duty, Adoption and Missing provision which operate pan
Gwent. There are further areas to explore e.g. YOS, IROs, MASH.
WHICH CONTRACTS ARE IN PLACE NOW AND WILL BE REVIEWED AS PART OF THE CHANGE
PROCESS?
Children’s Services only has two significant contracts subject - Advocacy currently with Tros Gynnal which is
in the procurement plan for 2015/16 with a reduced budget and the Collaborative Partnership with
Barnardo’s which is due to be retendered in 2018. The contracts for Independent Fostering Agencies and
residential placements are supported by the work of the 4Cs but in addition there is currently a NCC project
to review the arrangements for high cost placements and look at each individual contract as well as
reviewing all processes and ensuring the framework is robust for new placements.
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The arrangements for SEWAS currently support all adoption work. SEWAS is the Regional Collaborative
established with WG guidance and embedded in the SSWA.
There are limited assets within Children’s Services. The only physical assets are the residential units
We are exploring with 4Cs putting our residential and foster placements within the provider arrangements.
4Cs are currently devising a formula for all LAs to consider for charging for cross LA internal placements.
4)
The Social Services and Wellbeing (Wales) Act 2014 becomes operational from April 1st 2016. The Act
contains a swathe of legislation which will impact on expectation and delivery of Social Services and wider
functions contributing to citizen well-being. Financial pressures 2016/17 and 2017/18
For both the Out of Authority Residential (OOA) placements and kinship care the pressures are based on
analysing the spend in both areas over the past three years
Delivering further Preventions work and building community capacity require project management.
Change programmes would need to be delivered with Business Improvement support and within existing
service area resource capacity.
Implementation of forthcoming legislative changes – current and future.
Develop and enhance existing partnerships e.g. community, Education, Adult & Community Services Transitions Local Government Reform
New approaches to use of technology for administration and service support elements
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EDUCATION
EDUCATION
1)
CURRENT POSITION
2015/16 Budget:
£ 100,505,000
No of Employees:
2,757 fte
The educational attainment of children and young people must be seen within the broader context of the
family, community and wider environment. The link between deprivation, low aspiration and poor
educational attainment is well documented.
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The percentage of pupils entitled to Free School Meals at Primary and secondary level remains
above the Wales average, as it has done for the past four years.
Teacher assessment outcomes at the end of the foundation phase are good. Performance in this
phase continues to improve, with 88.1% pupils achieving the foundation phase indicator (FPI) in
2015. Newport currently ranks 8th in Wales for the FPI when compared with other local authorities,
which is significantly above the LA’s FSM ranking (16th, 2014 PLASC data). There have been
improvements at both the expected level (outcome 5+) and at the higher level (outcome 6) in all
indicators.
Teacher assessment outcomes at the end of key stage 2 are good. Performance in this key stage
continues to improve, with 89.3% pupils achieving the core subject indicator (CSI) in 2015, an
increase from 86.2% in 2014. Newport is now ranked =7th in Wales, which is significantly higher
than could be expected given the LA’s FSM ranking. Performance improved at both the expected
level (Level 4+) and the expected level+1 (Level 5+) in the last year. Performance is above the
national average for all indicators. These improvements in performance have increased the LA’s
rankings against other LAs in all areas apart from Welsh 1st language.
Teacher assessment outcomes at the end of key stage 3 are adequate. Performance continues to
improve, with 81.6% pupils achieving the core subject indicator (CSI) in 2015, a significant increase
from 77.1% in 2014. Newport is now ranked 18th in Wales, up from 19th in 2014. Performance has
improved across all indicators at the expected level 5+ and to a greater extent at level 6+.
Improvements have been made in all subjects and indicators and Newport’s ranking has risen slightly
for all areas apart from science. Performance in each subject remains lower than the national
average.
Performance at key stage 4 is adequate. There has been continued progress, with increases in all
high level indicators apart from Capped Points Score and CSI. The proportion of pupils achieving the
Level 2 threshold inclusive of English/Welsh first language and mathematics has improved from
52.8% in 2014 to 54.2% in 2015. There was also a small increase to the L2 threshold and a more
significant increase to the L1 threshold, although both remain slightly below the national average.
The capped point score declined to 4.6 points below the national average. There were declines in
both English and Science, but an improvement in mathematics. Despite this, mathematics remains
below the national average to the greatest extent. When ranked against the other LAs in Wales,
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EDUCATION
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despite improvements in some indicators, gains have been at a slower rate than the national
average in the majority of indicators. Newport’s performance improved in the Level 2 Threshold,
incl E/W&M, the Level 2 Threshold and mathematics but there were declines in English, which had
an impact on the Core Subject Indicator.
The percentage of pupils who are not successfully supported to remain within education,
employment or training at the end of Year 11 is improving but remains consistently above the Wales
average
Newport continues to have one of the highest rate of NEET (not in education, employment or
training) in Wales
Performance at Key Stage 5 is improving. The Level 3 threshold improved from 95.0% to 95.9% in
2015. This 0.9% point improvement is at a faster rate than the EAS region. Currently national
improvement figures are not available to 1 decimal place, so no comparison can be made.
Pupil absence rates at Primary level remain consistently above the Wales average, despite recent
improvements
On average pupil absence rates are improving at Secondary level but at a slower rate than Wales and
are just above the Wales average
Pupil exclusions are too high in secondary schools, however the number of days lost to fixed term
exclusions have reduced over the last three years.
KEY CHALLENGES
Forthcoming legislative changes: Noted through SEN White Paper. Demographic changes and impact on
service delivery: Noted via School Admissions, Planning & Resources. What investment is required to
deliver change programme: Further investment is required for increased EP’s and SEN Team.
Central Education service
Service
Key Challenges
SpLD Service:
£213,808 delegated to schools
(managed by Maes Ebbw).
Supports a limited amount of
pupils with specific learning
difficulties
The service is small; a declining
budget would not make the service
viable in its present format. More
emphasis need to be placed on
building the capacity of school
based staff to support pupils with
SpLd. This is not a statutory service
Limited staff (4 full time staff to
advise 54 schools plus non
maintained nurseries). Wide
spectrum of Additional Learning
Needs to cater for. This is not a
statutory service
AEN Advisors:
£223.920 delegated to schools
(managed by Maes Ebbw).
Supports teaching staff / school
leaders from nursery (maintained
and non-maintained settings)
primary and secondary; Strategic
and operational advice on
supporting pupils with Additional
Learning Needs
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How will the service change?
2020
Unlikely to exist in 2020.
Schools must have an increased
ability to support learners with
SpLd.
The service is at risk of not
existing. Schools have become
more self-sufficient in supporting
pupils with ALN. More emphasis
needs to be placed on
preventing and reducing
exclusions.
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EDUCATION
Service
Key Challenges
Educational Welfare Service
Delegated to school on a buy
back basis. The service takes an
active role in child protection
(including Children Missing in
Education.) supports
identification of NEETs, instigates
Fixed Penalty Notices,
prosecution proceedings and acts
upon education supervision
orders / school attendance
orders. Investigates reports of
child employment and issues
child employment permits
Educational Psychology Service :
Delegated to schools through a
buy back model. EP’s work is
largely base around statutory
assessments for pupils with
Special educational Needs
SEN:
4 FTE staff (includes 1 FTE
manager) operate the SEN
Statutory Assessment process
and allocate specific / specialist
resources to pupils with
identified needs (following the
statutory SEN Code)
Primary and secondary attendance
KPI have improved (especially in
last 18 months) but remain lower
than welsh average and in bottom
quartile of LA’s. Attendance now
linked to National Categorisation of
schools. If attendance is not strong
there is a greater risk of Newport
schools being in ‘higher’ support
(colour) categories.
Planning & Resources:
Focussed on capital works
programme (new school build
and expansions). Reorganisation
programme (amalgamation of
current schools and introduction
of nursery provision).
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Newport has one of the lowest EP
staffing ratios in Wales. It is
recommended that the current
number of EP’s rise to 6FTE . An
expensive service area based on
cost per EP.
The team are currently under
resourced. The numbers of
requests for Statutory. Assessment
has grown by 10% this year alone.
Statutory timeframes for
completing statements are not
being met (making KPI’s orange).
Numbers of pupils with Additional
Learning Needs (School Action,
School Action Plus) are growing
due to new arrival pupils,
increasing FSM, poor parenting and
number of children surviving
against the odds, as technology
and health care advances.
Unprecedented amount of new
arrival pupils in Newport, creating
a ripple effect of movement across
the city (effecting ‘some’ school in
the first instance but ‘many’ over
time). More new housing and
regeneration in Newport increasing
the need for school places. Limited
pot of funding available
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A reduced service would exist if
Schools continue to buy back the
services of EWO’s through the
delegated budget. EWO’s will
continue to pursue legal work
linked to non-attendance. EWO’s
will remain critical in terms of
early intervention to support the
Team Around the Cluster Model
and monitoring Elective Home
Education.
The Service cannot reduce. The
new SEN White paper increases
LA responsibilities, delivering
SEN provision for 0-19 years
(with a wide range of partners).
Increased LA responsibility from
new SEN White paper. Delivering
SEN provision for 0-19 years
(with a wide range of partners).
The demand on SEN teams will
grow. The service will need to
have greater face to face contact
with Social Services & Health
In 2020 there will be 9 secondary
schools, an additional 5 primary
schools, a further special school
and a newly established Welsh
Medium Cluster.
All primaries will be operating a
3- 11 model (with a feeder
nursery). School reorganisation
may focus on further
amalgamation, 3-19 models and
potentially federations. These
models provide very small
savings, but can give improved
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EDUCATION
Service
Key Challenges
2020
pupil transition benefits and
improve the sharing of good
practice.
Admissions:
Statutory function to provide a
school place for all children and
young people in a set timeframe
(following the Statutory
Admissions Code for Wales 2013)
Problems outline above. High
frequency of migrating families
across Newport.
Not enough school places for
pupils, increased number of
appeals.
Gwent Music :
Gwent wide service. Currently
receiving a small amount of
funding from Newport LA (for
Newport schools- approx. 50k)
GEMs:
Gwent wide service to support
pupils with English as an
Additional Language or the
specific learning needs of pupils
arriving from another country.
Service is building itself back up
following a large reduction in
funding which previously
subsidised music lessons
There will be an increase in online applications. This is a portal
and not a process. Current levels
of staffing will still need to be
retained in order to source and
award school places. A central
post 16 admissions process will
be required.
Funding from Newport LA is
likely to be removed.
Service will need to increase
income and become even more
business focussed.
Service will need to income
generate to replace any further
loss in grant.
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Unprecedented amount of new
arrival pupils in Newport, creating
a ripple effect of movement across
the city (effecting ‘some’ school in
the first instance but ‘many’ over
time)
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EDUCATION
Other Service Challenges
Demographics Funding: Rising Pupil Numbers Primary – MTRP figures included over last few years are for
rising numbers in the Primary Sector of 310 (14/15, £500k), 434 (15/16, £694k) 261 (16/17, £469k) and 174
(17/18, £310k). The increase in demographics has not been funded over the current WG Schools Protection,
therefore additional funds are lost to the system (cumulatively £1.694m). Secondary – no pupil number
increases predicted until 2017/2018
Honouring the Pledge: Schools Protection from WG – Honoured at required levels each year of protection
to date.
Reduced WG Funding Grants: The following grants to schools have merged into one ‘Education
Improvement Grant. The table below shows the overall % cut of each grant across the region. This is a loss of
£2, 784, 000 to schools across the region. Foundation Phase Funding which directly funds teaching assistants
in schools for Newport will reduce but this does not take into account the rising numbers coming into
Newport Schools.
Area
14-19 Learning Pathways
Foundation Phase
School Effectiveness Grant
Welsh Education Grant
Minority Ethnic Achievement Grant
Gypsy Traveller Children
Induction (NQT)
Lead & Emerging Practitioner Grant
Higher Level Teaching Assistants
Reading and Numeracy Test Support
Band 4/5
Percentage
31.24%
6.23%
6.23%
6.23%
6.23%
6.23%
70.03%
91.11%
75.66%
100.00%
100.00%
Schools in Deficit For the end of 2014/2015 no schools are predicted to be in deficit.
However there are concerns with 3 Secondary Schools due to falling roles, work is currently being
undertaken with 2 of these schools. No primary deficits, however the affects and impact of the above
measures will have different effects on the budgets at different schools, depending upon how Leadership
Teams and Governors deal with the issues.
(Note: Unless a school budget exceeds the statutory limits and associated terms at the end of a financial
year the statutory local management of schools regulations mean that the Local Authority cannot recover
funding from a school once it has been transferred to the school budget.)
Teacher’s Pension Costs These are due to rise from Sept 15 from 14.1% to 16.4%.
Total Reward/living Wage Although the proposal at the present time is to fund for first year of
implementation, if no additional funding is placed into school budgets permanently, costs will rise to schools
without budgets to cover the additional costs.
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2)
Ensuring the best educational outcomes for children’ is a key objective of the 2015/2016 Newport City
Council Improvement Plan. This will be achieved by the following identified outcomes and performance
measures:
What will be the key outcomes?
Providing access to quality learning
environments
Improved pupil attainment for all
(includes pupils with FSM, Looked
After Children and other vulnerable
groups).
Improved school performance /
capacity to improve judged via
national categorisation
Improved school attendance
Significant reduction in the number of
NEETS
Significantly reduced exclusions
Pupils with SEN identified in a timely
way followed by an appropriate level
of resource provided
Pupils with SEN provided with
appropriate levels of support in
mainstream education
Learning Resource Base to provide
specialist support for pupils with high
end Special Educational Needs
Improved access to Special School
places
How will we judge performance?
Number of pupils admitted into a school under the regulations set
out in the admissions code.
To be determined by the outcome of the Donaldson report. End
of Key Stage results may not exist.
L2 Threshold to be replaced
Number / percentage of schools in Newport in green, yellow,
orange and red categories.
% of overall attendance. Schools benchmarked based on context.
% of year 11 pupils leaving school without a recognised
qualification.
Number of days lost to fixed term exclusions 5 days and below, 6
days and above. Number of pupils receiving fixed term exclusions
5 days and below, 6 days and above. Number of permanent
exclusions / % per 1000 pupils.
Unsure at this stage the SEN code of practice will change in view
of the White paper recently released.
Unsure at this stage the SEN code of practice will change in view
of the White paper recently released.
Unsure the SEN code of practice will change in view of the White
paper recently released. This will be judged on pupil progress or
through addressing Individual Development Plans (IDP’s)
Number of pupils waiting for special school places
3)
SAVINGS?
New ways of working have reduced staffing levels by utilising technology. On line applications for Admissions
will not replace staff and will not create cost savings. Improved technology will change and improve the
support for pupils with SEN, but is unlikely to make cost savings. Parental and professional expectations will
grow; new technology to support pupils will be requested and will become ‘necessary’ especially in the light
of the increased number of children who survive due to improved health care.
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EDUCATION
Within Newport, the number of pupils and schools will grow. Schools will need to be given greater autonomy
with SEN budgets and have greater ownership over central KPI’s (e.g. exclusions).
There are times that face to face meeting with the public are necessary in order to reduce and prevent
problems. On Line Admissions creates a small reduction in hand delivered applications to Civic Centre.
Contact with Chairs of Governors and Head teachers is always necessary and is not duplicated e.g. with the
South East Wales Education Achievement Service). EP’s, SEN team require contact with their client group in
order to complete statutory processes. The Service Area is consisted reflective of their time resource (as
staff numbers have decreased)
Parent / community groups can be encouraged to act as support for: Filling in on line admissions; walking
buses (promoting good attendance and punctuality); supporting schools as reading buddies, after school
clubs (following DBS guidelines)
PARTNERSHIPS?
SEN in conjunction with Social Services Children Disabilities Team
PROCESS?
Out of County Placements
Schools could improve their after school / community use
There are limited opportunities with the sparse amount of staff in the structure. Gwent wide services such
as Gems and Gwent Music should adopt this practice (but this will not income generate / make cost savings
centrally).
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EDUCATION
4)
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Change programmes would need to be delivered with Business Improvement support and within
existing service area resource capacity.
Develop and enhance existing partnerships e.g. community, Children & Family Services, Local
Government Reform
More support for SEN processes linked to partnership working
Continued investment in 21st century schools programme to meet increasing demand and need for
modernised learning environments.
Increased and improved use of technology in order to develop services and customer reach
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REGENERATION, INVESTMENT AND HOUSING
PLACE
1)
CURRENT POSITION
2015/16 Budget:
£ 9,431,000
No of Employees:
398 fte
Regeneration, Investment & Housing is divided into four teams, covering a wide range of functions, which
include both statutory and discretionary service provision.
Development Services
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Planning Policy (Statutory)
Development Control (Statutory)
Planning Enforcement (Part statutory / part discretionary)
Historic Buildings Conservation (Statutory)
Building Control (Part statutory / part discretionary)
Community Regeneration
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Communities First/Community Development (Discretionary)
Work and Skills (Discretionary)
Flying Start (Discretionary)
Families First (Discretionary)
Play Development (Part statutory / part discretionary)
Youth Service (Part statutory / part discretionary)
Culture, Libraries and Community Learning
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Libraries (Statutory)
Adult Education (Discretionary)
Museum & Art Gallery (Discretionary)
Heritage - Medieval Ship, Transporter Bridge, 14 Locks, Tredegar House (Discretionary)
Housing, Regeneration & Property
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Housing Strategy (Statutory)
Housing Need/Solutions (Statutory)
Disabled Facilities Grants (Statutory)
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
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Physical Regeneration (Discretionary)
Business Support (Discretionary)
External Funding (Discretionary)
KEY CHALLENGES
Development Services: Staff recruitment and retention; economic recovery increasing workloads; new
legislation - Planning (Wales) Bill &new Building Regulations, LDP review 2020, GT site provision.
Community Regeneration: Demographics evidenced within GIS CEMP, funders targets, Community
Involvement Plans and recent service user information indicate that demand for services is likely to increase.
Project uptake and outputs also suggest that this trend will continue in the medium-term. From a corporate
perspective, the service is also highly dependent on grant funding. Alignment of outcomes between newly
merged service areas is a priority, as is the development of community hub model for Newport.
Culture, Libraries and Community Learning: Ship restoration, maintenance of Transporter Bridge, library
reconfiguration programme, reduction in ACL grant support, focussing of ACL provision on Basic Skills &
ESOL.
Housing, Regeneration & Property: Changing Demographics, new legislation – Housing (Wales) Act, Renting
Homes Bill, reducing levels of SHG, DFG performance, JV pressures, Regeneration resources
2)
The service will continue to play a central role in the facilitation of sustained economic growth, delivered
through excellent business engagement, major housing & regeneration projects, prevention activity and
employability services. This vision for future delivery reflects a number of key priorities from the Council’s
Improvement Plan 2015/16 including:
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
Improvement Objective 4 - Supporting Young People into Education, Employment or Training
Improvement Objective 6 - Helping Children have a Flying Start in Life
The service will be underpinned by excellent customer service, efficient communication and flexibility to
enable targeting of provision to those in most need.
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Improvement in deprivation indicators
Sustainable development and economic growth
More people in work
Reduction in NEETs
Modern services appropriate to need e.g. rationalised library provision
Preservation and maximisation of built, natural and heritage opportunities to support Regeneration
Maximum draw down of available funding opportunities
Excellent customer satisfaction for front-line services
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Timely and efficient service provision
Customer facing services will become more flexible, and potentially more digitalised and / or local depending
on needs data; play a stronger role in the facilitation of economic growth and major regeneration projects.
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Speed: Turnaround times for planning applications, housing applications etc., customer response
timescales, dispute resolution
Quality: Customer satisfaction, high specification for projects and services
Progress / Outcomes: National and local PI’s
Financial / value for money
3)
SAVINGS?
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Agile working – Community Hub
Data availability – website
Digital interaction – e.g. Planning Portal, E-book growth, Community Hub
Section
Development Services
Community Regeneration
Culture, Libraries and
Community Learning
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Analysis & Management of Demand
Planning application and Building Control Work is expected to increase as the
economy recovers, but the medium term trend is unknown and impossible to
predict. Legislative changes are likely to see a short-term surge in work, as
will the introduction of CIL and emerging regional planning frameworks
Demand for services has increased year on year. Further external funding
opportunities will be explored and services will be reviewed on an on-going
basis to ensure value for money and delivery of outcomes. Work is on-going
to develop a community hub model, including a potential pilot project. This
will include a detailed analysis of community needs - using ward profiles,
service provision – based on improvement plan priorities, future demand and
building usage to identify a model appropriate to the needs of Newport’s
citizens
Numbers accessing library services are generally decreasing, and the demand
for digital forms of provision is likely to divert towards personally owned
devices – services will need to re-focus accordingly. Numbers accessing
Newport’s ‘cultural offer, e.g. museum, transported bridge, 14 Locks and
Tredegar House are increasing but this needs further analysis to inform
future provision. ACL provision is determined by a franchise arrangement
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Section
Housing, Regeneration &
Property
Analysis & Management of Demand
operated by Coleg Gwent, supported by WG funding.
Numbers on the Common Housing Register are fairly consistent year on year,
but additional housing solutions need to be developed to mitigate any
emerging legislative pressures. Demand for Disabled Facilities Grants also
remains high. The Regeneration service is currently under review to inform
the model of provision required to deliver the next phase of the Council’s
Economic Regeneration programme for the City.
In some service areas a reduction in customer contact would be counter-productive e.g. family prevention
services, community development and culture services. However, there are opportunities in Planning and
Housing for example where advice, registration at first point of contact could be facilitated via portals,
websites, etc.
The Community Hub model could also reduce pressures on core customer service at the Information Station
and Civic Centre for example, as service user needs could be met either virtually or by a multi-disciplinary
team serving the community hubs. Channel shift would be supported through reverse ATMS and ICT
development for the community. Assets will be able to be released.
Community capacity and co-production is at the core of some services e.g. community development and can
support the delivery of statutory services such as library provision. However, such approaches need a longterm commitment and access to funding if they are to succeed.
Opportunities include the development of community hubs, heritage development (museum, transporter
bridge and ship), and engagement of community members in planning application consultations.
Volunteers also have a role to play in some service areas, for example in library services where books are
delivered by volunteers to house bound customers. (NB: Welsh Government state that volunteer run
services in libraries cannot count towards statutory provision).
PARTNERSHIPS
Building control could be delivered as part of a regional LA approach or as a JV arrangement; the emerging,
regional planning approach may also lead to enhanced partnership working.
Community Regeneration is founded in partnership working and contractual delivery – Working Links
contracts, commissioned Families First services etc.. There are also opportunities for regional working within
the Work and Skills agenda, which is currently being developed.
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Retained cultural provision could be delivered in alternative ways, which may allow for greater freedom of
operation and capacity to deliver services at a reduced cost base.
PROCESS?


Housing partnership projects (SHG schemes, small grants to housing organisations, Care and Repair)
Norse JV Newport Norse was established in July 2014 to facilitate a total property service to
Newport City Council. The relationship is a joint venture between NCC, NCS and NPS. The contract is
for a period of 10 years and has a contract value of £7.3m. per annum. Employing 250 staff and
managing approximately 1500 assets for NCC, with a total asset value of some £320m, Newport
Norse provides a managed service to NCC. This encompasses Valuation and Estate Management,
Planned and Reactive Maintenance, Statutory Testing and Inspection, Design Consultancy and
Construction Management, Building Cleaning, Catering and Facilities Management.
Museum, Libraries and Community Centre buildings could be used to deliver services in alternative ways,
providing improved access to services and opportunities for efficiencies
ICT systems – all services within RI&H are being reviewed in line with an internal business improvement and
the ‘New Ways of Working’ programme. Anticipated outcomes of this include rationalisation of ICT and
improved working processes, supported in part through the implementation of Council wide systems e.g. IProc, I-Trent and EDMS.








4)
External funding – European sources, Heritage Lottery, Welsh Government (but minimal reinvestment of resources under an ‘invest to save’ approach will be required to maximise available
opportunities
Contract delivery – franchise delivery for library and / or museum services; national work & skills
contracts
Commercialisation of library services (Amazon Lockers/Book shop etc.)
Setting up of Friends Groups to raise money for heritage attractions
Sponsorship – Transporter Bridge and other Heritage Assets
Income generation - Planning & BC fee income; fees, charges & donations for services
Arms-length development could release alternative funding sources
Energy JV development and improvements to Council buildings to reduce energy costs.

Forthcoming legislative changes – Renting Homes Bill; Planning Bill; Universal Credit changes will
impact the poverty agenda
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

Demographic changes and impact on service delivery – Ward profiles indicate that the City’s
demographic profile will continue to place additional pressures on services, with specific ‘hotspots’
in some wards across the City.
Lack of capital budget to deliver /contribute to major projects – a number of projects, including ongoing regeneration of the City Centre, potential community hub model and major heritage assets
such as the Transporter Bridge will need capital investment in the medium term



Neighbourhood Regeneration model – initial capital investment required to enable building
rationalisation and modernisation; could release partner funding
City Centre Regeneration – to fully maximise opportunities for external funding e.g. WG, Lottery and
EU resources, plus some capital investment will be required.
Energy initiatives will require additional support to enable delivery. There is a currently a lack of
capacity and knowledge available to drive forward projects across either the Council’s assets or
within the wider envelope of energy generation to release potential savings.
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STREETSCENE
STREETSCENE
1)
CURRENT POSITION
2015/16 Budget:
£17,519,000
No of Employees:
393 fte
Function
Statutory Duty
Comments
Maintenance of:- Carriageways, Footways &
Highway Drainage Systems, Embankments,
Trees, Fences & Barriers, Traffic Signs &
Bollards, Markings & Studs, Signals & Crossings,
Street Lighting, Structures, Highway Inspection,
Highway Rights Protection, Highway
Enforcement, Winter Maintenance, Highway
Flooding, Maintain Definitive Register and Plans
of Highway Adoptions, Control of Skips and
Scaffold
Nameplates
Highway Flooding
Reservoirs
Land Drainage
Flooding from River, Sea or Surface Water
Highways Act 1980
No specific duty to
provide an asset
i.e. street lighting,
however, there is a
duty to maintain if
provided
Traffic related duties
Cess Pit Emptying Service
Promotion of Highway Safety
Public Health Act
Highways Act 1980
Reservoirs Act
Land Drainage Act
Flood and Water Management
Act 2010
Traffic Mngmnt Act 2004
Non Statutory
Road Traffic act 1988
School Crossing Patrol
Non Statutory
Control of Noxious Weeds
Removal of Abandoned Vehicles
Emergency Management/planning
Control of Streetworks Section 50
Floral Displays
Shrub Beds
Car Parks
Weeds Act 1959
Refuse Disposal Act ‘78
Civil Contingencies Act 2004, 1999
Control of Major Accident Hazard
Act
NRASW Act
Non Statutory
Non Statutory
Non Statutory
Public Conveniences
Non Statutory
Public Features / Statues/Art
Non Statutory
Domestic and Trade Refuse Collection
Domestic Waste Recycling
Waste Disposal Site
Environmental Protection Act
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Includes making
traffic orders
No statutory duty
to provide.
Duty of care to
maintain existing
Duty of care to
maintain existing
Duty of care to
maintain existing
No requirement;
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STREETSCENE
Function
Statutory Duty
Comments
significant asset
Civic Amenity Site/Recycling Ctr
Bulky Household Collections
Refuse Disposal Act 1978
Non Statutory
Removal of Fly Tipping (Public Land)
Concessionary Travel Scheme
Clean Neighbourhoods and
Enforcement Act 2005
Statutory
Socially necessary bus services
Non Statutory
Provision and maintenance of bus stops, bus
shelters and bus stations.
Provision of public transport info/ publicity
Community Transport
Non Statutory
Highway Development Control
Highway Licensing/ agreements
Tree Management
Traffic Management Act ‘04
Road Traffic Act 1988
Occupiers Liability Act 1957, Local
Govt (Misc.) 1976
Hedgerow Regs 1997
High Hedges -Anti Social
behaviour Act 2003
Natural Environment and Rural
Communities Act 2006,
Countryside and Rights Of Way
Act 2000, Town and Country
Planning Act 1990. TAN 5 Nature
Conservation and Planning
Town and Country Planning 1990.
Open Spaces Act 1906
Wildlife and Countryside Act
1981, Highways Act 1980
Local Authorities’ Cemeteries
Order 1977
Social Security Contributions and
Benefits Act 1992
Hedges
Biodiversity
Landscape
Rights of Way
Cemeteries
Housing Benefits
Thought to reduce
fly tipping
Relates to public
land only
Welsh Government
funded scheme /
Streetscene part
funded
Welsh Government
funded scheme /
Streetscene part
funded
Non Statutory
Non Statutory
Welsh Government
funded scheme
KEY CHARACTERISTICS OF SERVICE TODAY - WHAT THE SERVICE LOOKS LIKE TODAY & KEY
CHALLENGES
Highway, Drainage and Cleansing Maintenance
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STREETSCENE
Service delivery revolves around the statutory duties to maintain highways and land drainage including
enforcement action and resolution plus various emergency responses




Maintain highway assets, floral displays, hedges, sports pitches and grass verges
Commercial service to empty and dispose of cess pit waste
Pride in Newport Team
Pre-treatment and removal of snow and ice from the highway (winter maintenance)
Streetscene Strategic
Service delivery associated with the statutory duties to maintain the highway asset



Identify and resolve highway safety concerns, risk assessment of maintenance actions, 3rd party
insurance investigations, enforcement action, traveller issues
Promote road safety - school crossing patrols, safety partnerships, development of highway safety
schemes, analyse accident statistics, traffic orders
Local authority searches, highway adoptions and maintain adoption register, transport planning,
planning applications/ appeals, maintain public art and features
Newport LIVE
The provision of sport, leisure and cultural services are delivered on behalf of Newport City Council by the
Not for Profit Distributing Organisation, Newport LIVE to provide sustainable and inclusive services to the
City of Newport. These services are provided through a Funding and Management Agreement. Streetscene
has a number of responsibilities to manage the contract through its role as Client.
Parks & Green Space
The provision and maintenance of countryside and coastal access. Management of countryside site and
countryside services as well as the provision of nursery services for floral displays around the city centre
including wild flowers and bedding features
Cemetery & Crematorium
Provide burial and cremation services within the city, including burial records and maintenance of the
cemeteries
Waste & Recycling
Provide required service to meet council’s statutory obligations to waste management and recycling through
providing the following; Domestic refuse collection, trade refuse collection, household waste recycling
facility, waste disposal service, waste education and enforcement and fly-tipping actions.
Fleet
Service responsibility for the procurement and operation of the councils fleet and plant equipment through
the commissioning of services and goods
Passenger Transport
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STREETSCENE
Responsible for the commissioning of passenger transport services for Education, Adult & Community
Services, Children & Younger Peoples Services and Streetscene
Customer Services
Over recent years the drive for customer services has been the move to non-mediated, self-service contact.
This “channel shift” has been very successful with over 50% of service requests through customer services
now achieved through self-service. Housing Benefits transferred to Customer Services in 2014. The service
has gone through a significant redesign and rationalisation which has resulted in better performance at a
lower cost.
KEY CHALLENGES
Highway, Drainage and Cleansing Maintenance






Increase in road traffic on an aging highway infrastructure
Regeneration of city centre creates pressure to keep clean
Climate change - increase flood risk, increase growing season for vegetation
Increase complaints resulting from the street lighting switch off
Identifying and delivery of efficiency and changes across the service
Increasing demographics through new housing development
Streetscene Strategic



Identifying and delivery of efficiency and changes across the service
Meet the challenges imposed by the Flood Water Management Act
Manage with reduced highway capital and maintenance funds on network condition
Newport LIVE



Competition within the market of budget gym operators
Increased demand on car parking provision resulting in possible higher charges
Greater pressure on a non-statutory service and the continued financial subsidy
Parks & Greenspace




Incorporation of parks services into Streetscene structure
Provide continued and improved services through pressured budgets.
Develop nursery services into commercial sector
Deliver efficiency savings through area working
Cemetery & Crematorium

Maintaining the current levels of income with limited burial space
Waste & Recycling

Reducing Welsh Government grant and deliver demanding recycling targets
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STREETSCENE


Competition for waste at the landfill site
Fluctuation in market value for recycling
Fleet:


Aging fleet and plant; five year replacement programme underway
Significantly changing fleet requirements
Fleet maintenance contract (Newport Transport) to be reviewed
Passenger Transport


Increase transport costs for all areas of passenger transport
Customer complaints increasing
Customer Services






2)
The service now coordinates the Council’s response to all complaints and compliments
A key challenge for the service is increased demand. Face to face contact through the Information
Station has increased from 60,000 visitors in 2012/13 to nearly 90,000 today
Enabling some of these services to review their processes to become more customer focussed and
efficient will be a key challenge
Delivery of the current Welfare Reform Programme will reduce the provision of Housing Benefit and
further changes to legislation around benefits may create demand for other services that are
delivered through the City Contact Centre and Information Station
Welsh Language Standards impact most on customer facing services, which are the most visible to
scrutiny on delivery against the requirements
Social Care and Wellbeing Act requires Local Authorities to formalise the way that Advice,
Information and Assistance is provided to people through all access points such as the City Contact
Centre and Information Station
Streetscene will become far more knowledgeable of its customer demand and expectation, through greater
provision of its locality of services provided i.e. area based working. Alongside this element of the vision will
be an appreciation for diversity of need throughout the areas of the City and this will be accompanied with
the two-way interaction of customer insight and ward profiling. This vision will be aligned with a greater
level of management of demand by reviewing services and providing those services required to those areas
in need whilst managing and analysing output (unit costs) and performance. The services will be delivered
through agile and flexible means in an efficient and lean manner with a focus on concept of contact to
implementation and completion.
This Streetscene vision is best shown as below;
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STREETSCENE
CUSTOMER
DEMAND &
EXPECTATION
•Locality of services
•Diversity of need
MANAGEMENT OF
DEMAND
•What services will we
provide and to what level
•Who might provide the
service
•Operational metrics and
customer insight
AGILE & FLEXIBLE
•Efficient and lean
•Concept to
implementation
•Unit cost and output

















Customers knowledge to improve people’s lives, providing the best affordable services
Know our communities in order to provide services that the user needs
Diversity of need to ensure services are focussed and prioritised
Energy and passion to drive change internally and externally
Empowerment and freedom to Streetscene staff
Efficient and local service delivery with a great understanding of cost base
Sustainable services to adapt to the changing environment and impacts
Communications through all levels of activity
Flexible and agile working with greater technology, data and analysis
Demand management for an improved knowledge of contact points and trend analysis
Commercialised culture and mind-set of staff and their activities
More on-line services – Target of 80%+ by 2020
New CRM system fully focussed on Self Service to support channel shift above
Benefits service adapt to welfare reform changes
Services provided meet Welsh Language Standards
Services provided meet the requirements of the Social Care and Wellbeing Act with regards to
providing Information, Advice and Assistance through access points such as the City Contact Centre
and Information Station
Reduced hours of operation may be the only way to achieve further savings
The service will need to become more flexible, more local, more agile and more data driven to understand
and manage the cost base and forthcoming pressures of activity.
Residents improving ICT skills will facilitate the move to on-line self-service. By 2017, more people will see
this as a natural way to interact with local government. The team will assess whether the current Customer
Relations Management (CRM) system is fit for purpose in order to drive greater self-service throughout
Streetscene and City Services.
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STREETSCENE





Member satisfaction
Customer satisfaction and number/nature of complaints
Excellent budget management and forecasting by all Streetscene and City Services Managers
The service is delivering the needs of the community
Self-service is the primary method of requesting services
3)
SAVINGS?




New approach to channel management and use of smart IT for front line staff, back office employees
and managers throughout the service, enabling managers to analyse data and inform strategic
direction
Route optimisation, driver telematics, 360 degree cameras and vehicle tracking to reduce response
times, improve scheduling, increased performance management and reduced risk of claims liability
To be data led in decision making proportionate and timely response
Paperless working aligned to flexible and agile service delivery
Highways & Transportation
Make better use of demographic data in service design including implementation of electronic data capture
devices to build in efficiencies to our inspectorate and operational teams that feed into an advanced
highway asset management system. Increased and smarter use of data in understanding and changing
customer behaviour with a view to managing customer demand on services to aid and promote channel
shift. Deliver services that underpin the authorities Single Integrated Plan.
Parks and Green Space and Cemetery and Crematorium
Greater use of demographic analysis in service design, promote channel shift through introduction of mobile
devices to front line operations. Increased understanding of community capacity to deliver elements of
service with support and/or specialist functions provided by the council.
Newport LIVE
Demographic demand and increased footfall throughout Newport City Council will present opportunities to
the service as well as greater requirement for services made to be made available. Member retention,
customer insights and user interface/journey to be further utilised along with the performance management
of the service and alignment with market place competition.
Waste & Recycling
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STREETSCENE
Understand and manage the impact of 12,000 new homes in addition to the current operation. Promote
channel shift through introduction of hand held devices to front line operations.
Fleet
Fleet maintenance and replacement needs to be dynamic to meet the changes to service delivery i.e.
additional housing stock is likely increase the need for additional vehicles, alternatively existing vehicles
utilisation will be greater requiring a change to maintenance and work schedules.
Passenger Transport
Increase in youth and elderly population will increase demand for passenger transport services, both home
to school and concessionary travel. Need to stimulate and encourage new service providers, consider
alternative delivery options to meet growing need such as community transport and demand responsive
transport solutions. Additional housing developments will increase pressure on the need for socially
necessary bus service provision that will need to be considered as part of section 106 negotiations.
Customer Services
Current trends will likely continue, with take up of non-mediated services increasing and the number of
phone calls received decreasing. Some footfall in the Information Station for Housing Benefit services will
reduce due to the implementation of Universal Credit, however the changes to welfare and benefits may
result in an exponential increase for other services provided through the Information Station so this may
balance out. Potentially implementing appointments for some of the services provided through the
Information Station could help to balance this demand.
The time it takes to serve each customer over the phone or face to face will increase as simple, transactional
enquiries will increasingly be carried out online which means that the remaining enquiries dealt with person
to person will be complex and challenging.
Increased channel management to continue where customers prefer to contact us online and reporting for a
swift resolution to issues, resulting in ‘online by default’ and reduced calls to the City contact centre.
Designing processes around customer drivers and demand will help to identify where there are
opportunities to take action that prevents or reduces the need for customers to contact the Council.
Friends Groups in Parks, Public Rights of Way Groups, and greater ownership and engagement by people
with recycling ambition to be further engaged and empowered. This coupled with stronger links with
Members and that they develop community capacity to act as a sustainable resource, rather than raise
service request for Streetscene and City Services.
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STREETSCENE
PARTNERSHIPS
Development of the Business Improvement District to take increasing leadership role in city centre and work
in conjunction, greater use of Wastesavers organisation and the third sector within the following services;




Highway maintenance
Tree surgery services
Pumping station maintenance
Grounds maintenance delivery
PROCESS?






Fleet servicing and maintenance contract with Newport Transport
Vehicle tracking contract
Wastesavers agreement
Street lighting maintenance contract
Traffic systems contract
Newport LIVE
Use of tracking, route optimisation and further technology will improve efficiency in use of plant, equipment
and fleet. Vehicle pooling systems will aim to reduce downtime, vehicle hires and use of under-utilised fleet.
Introduction of varied shift working patterns with shared vehicles and greater engagement with partners.











4)
Increase trade waste and trade recycling
Cleansing and maintenance of commercial premises
Winter maintenance provision to commercial businesses and other public organisations
Development of the landfill site with disposal of asbestos and additional workstreams
Compete for internal and external Streetscene contracts
Green services into external markets and public sector
Renewable energy on council premises
Undertaking maintenance of assets such as Southern Distributor Road
Recycling from internal tree maintenance services
Streetlighting LED scheme
Selling Contact Centre Services to other Local Authorities or public services
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STREETSCENE
Universal demographic pressure for Streetscene and the impact of 12,000 new homes and a shift in
demography likely to be associated with this; an ageing asset (especially Highways)
Highways & Transportation


Revised Flood and Water Management Act
Demographic changes and impact on service delivery
Parks & Greenspace and Cemetery & Crematorium


Forthcoming legislative changes
Demographic increases and changes along with impact on service delivery
Waste & Recycling




–Welsh Government statutory recycling targets, reducing grants
Positive and negative fluctuations in market value of recycling and
Development and aftercare costs and capping costs of landfill site
Approximately 12,000 new houses and highway network impact on all Streetscene and City service
activities and functions
Fleet




Impact on fleet requirement as individual service areas change their delivery model
Fleet replacement to meet additional demands; change of maintenance regime to meet additional
demand and utilisation of existing fleet
Tracking system with analysis of performance and utilisation
Investment in new technologies such as hot wash vehicle, planers and jet-patcher
Passenger Transport



Concessionary travel card for 16-18 year olds
Centralisation of concessionary travel administration Demographic changes creating demand for
concessionary bus pass and social necessary local bus services and community transport
Increase in youth population with pressure on school transport budget as catchment school become
over-subscribed and transport is required
Customer Services






Welsh Language Standards
Increased demand
Increasing number of complaints received at formal stage or through the Public Services
Ombudsman for Wales
Capacity to deliver and support change
Lack of opportunity to provide training to Customer Services staff due to low levels of resource
Welfare Reform
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STREETSCENE


Implementation of new technology such as replacement of the CRM and upgraded telephony
systems
Moving back office services that should be dealt with at the frontline into Customer Services,




Stategic approach to asset management along with invest to save funds
Additional development at Maes Glas depot will require investment; service relocation, landfill
capping and other initiatives
Investment in new technologies as they are developed and made available in the market place
Training and development of Streetscene and City Services staff to achieve an increased skill-set; . IT,
financial/budgetary management, commercial, marketing, contract management, tendering and
estimating
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Agenda Item 5
Report
Cabinet
Part 1
Date:
15th February 2016
Item No:
Subject
Strategic Equalities Plan 2016 - 20
Purpose
Every four years the Council is required to agree a new Strategic
Equalities Plan. The attached report outlines the proposed Plan for
2016-20 and seeks Cabinet approval for this to be recommended to
Council for approval
Author
Partnership and Policy Manager
Ward
All
Summary
The Council has specific equalities duties placed on it through a range
of equalities and related legislation. As a requirement of the Equalities
Act 2010 we are required to develop a Strategic Equalities Plan that
shows how we will meet these requirements as they relate to specific
legislation (notably the Equalities Act 2010, Human Rights Act 1998,
Wellbeing of Future Generations Act 2015 and Welsh Language
(Wales) Measure 2011).
The report and attached draft Strategic Equalities Plan detail proposed
equality objectives for the next four years based on an analysis of
data, consultation responses and development of current objectives.
Cabinet is asked to recommend the draft Strategic Equalities Plan (or
an amended one) to Council for agreement.
Proposal
That Cabinet agree the attached plan to be presented to Council
for approval
Action by Head of People and Business Change
Timetable March 2016




Cabinet Member People and Business Change
Cabinet Member Skills and Work
Cabinet Member Street Scene
Equalities Champion
Page 229







Anti-Poverty Champion
Head of Regeneration , Investment and Housing, Newport City
Council
Interim Head of Street Scene
Head of Law and Regulations (Monitoring Officer)
Head of Finance (Chief Finance Officer)
Head of People and Business Change
Public Consultation
Signed
Page 230
1.
Background
Local Authorities are required to produce and publish a Strategic Equalities Plan
every three years as part of their specific equalities duties (as set out in the Equality
Act (2010)). The following plan sets out the proposed Equality and Welsh language
commitments, and related equality objectives, for Newport City Council for the next
three years (including draft actions). It builds on the Strategic Equality Plan 2012 and
the Welsh Language Scheme (being replaced by the Welsh Language Standards
from April 1st 2016).
This plan sets out the council’s commitments under the following legislation:
•
The Equality Act 2010 and the Statutory Duties (Wales) Regulations 2011
•
The Welsh Language (Wales) Measure 2011 and Welsh Language Standards
2015
•
The Human Rights Act 1998
•
The Well-being of Future Generations Act - a framework for all council work.
The equality objectives closely map those chosen and implemented over the
previous three years, but the actions reflect the gains that we have made and where
we are today. The Equality and Human Rights Commission’s draft challenges issued
in Wales in October 2015 have been considered in choosing our objectives.
Legislative Framework:
The Equality Act 2010 sets down Public Sector Duties that apply to all the Council’s
functions. There are two positive duties and one negative duty:
•
•
•
Promoting equality of opportunity
Promoting good community relations
Eliminating discrimination, harassment and victimisation
The Welsh Language (Wales) Measure 2011 and Welsh Language Standards
ensure that:
•
•
The Welsh language has official status in Wales
Welsh speakers have language rights in Wales to receive Welsh language
services from public bodies
•
The Welsh language cannot be treated any less favourably than the English
language
The Human Rights Act 1998 ensures that human rights and equality are inextricably
linked. Article 14 of the European Convention of Human Rights prohibits
discrimination ‘on any grounds such as sex, race, colour, language, religion, political
or other opinion, national or social origin, association with a national minority,
property, birth or other status.’
The Wellbeing of Future Generations Act 2015 puts in place a sustainable
development principle which means that ‘a body (the Council) must act in a manner
which seeks to ensure that the needs of the present are met without compromising
the ability of future generations to meet their own needs.’ In 2017, as a Council we
will be required to develop and agree Wellbeing Objectives in line with the
sustainable development principle and seven wellbeing goals within the Act. The
proposed equality objectives have therefore been developed with this in mind.
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Proposed Equality Objectives 2016-20
In line with the above legislation, assessment of data held (Unified Needs
Assessment and Ward Profiles) and consultation the following Equality Objectives
have been developed for consideration:
Well-being goals and
Newport City Council Equality Objectives
A more equal Wales
1
Diversity in the workplace – Engaging Employees
The Council’s workforce will be representative of the population we service and
the workforce are involved in decisions that affect them
2
Engagement and democratic participation
We will involve people in the development of Council services that affect them and
base Council decisions on what people need
3
Improving Access to Services
People can access all the Council services and activities that they need in terms
of physical access and communication access etc.
4
Tackling Poverty
We will work to reduce poverty, especially persistent poverty amongst some of our
poorest people and communities, and reducing the likelihood that people will
become poor
A Wales of cohesive communities
5
Cohesive Communities and tackling hate crime
People feel they are a part of Newport society and live their lives free from abuse
and harassment.
6
Domestic Abuse and Sexual Violence
People who are subject or witness to domestic abuse are supported by the
Council and its partners in their current situation, and through any changes they
wish to make.
7
Homelessness
To provide a safe, supporting, empowering and non-judgemental environment for
homeless and marginalised people so that they can achieve their potential
A Wales of vibrant culture and thriving Welsh language
8
Compliance with the Welsh Language Standards
We will promote our bilingual public services and increase the use of Welsh in
Newport
9
Corporate Compliance
Strategic leadership, governance arrangements, ensuring standards are high and
consistent across all the council and areas of responsibility.
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2.
Financial Summary
There are no specific costs associated with the consideration and approval of the
Strategic Equalities Plan. However, work undertaken by Service Areas to meet the
objectives will need to be considered when setting future budgets.
3.
Risks
Risk
Council does
not agree the
Strategic
Equalities
Plan 2016-19
Council
unable to
deliver
against
objectives
Impact of
Risk if it
occurs*
(H/M/L)
M
Probability
of risk
occurring
(H/M/L)
L
M
M
What is the Council doing
or what has it done to
avoid the risk or reduce
its effect
The Plan is being
presented for
consideration and
Cabinet/Council have the
opportunity to make
amendments to the Plan
Whilst every effort has
been made to ensure that
the objectives are realistic
and are deliverable within
current and probably
future resources there is
a possibility that we will
be unable to meet some
objectives due to
changing circumstances.
This will be monitored by
the Strategic Equalities
Group and reported to
Cabinet annually
Who is
responsible
for dealing
with the risk?
Head of
People and
Business
Change
Head of
People and
Business
Change
* Taking account of proposed mitigation measures
4.
•
•
Corporate Plan – Standing up for Newport
Single Integrated Plan – Feeling good about Newport
5.
Options Available
Option 1: Accept that Strategic Equalities Plan and recommend to Council for
approval
Option 2: Make changes to the Strategic Equalities Plan and following this
recommend to Council for approval
Option 3: Not to agree the Strategic Equalities Plan
Page 233
6.
The preferred Option would be Option 1 or Option 2.
7.
There are no direct financial consequences contained within this report.
Service areas should, however, consider the impact that the proposed
Strategic Equalities Plan will have on future budgets.
8.
As part of the Council’s Public Sector Equality Duty under the Equality Act
2010 and the Statutory Duties (Wales) Regulations 2011, there is a statutory
requirement to produce and publish a Strategic Equalities Plan every three
years, setting out the Council’s strategic equalities commitments and
objectives. The draft Plan for 2016-19 complies with the Council’s legal
obligations under the Equalities and Human Rights legislation and the
objectives also reflect the Welsh Language Standards and the over-arching
well-being goals set out in the Wellbeing of Future Generations (Wales) Act
2015.
9.
Staffing Implications: Comments of Head of People and
Business Change
There are no specific staffing implications contained within this report. The
Strategic Equalities Plan sets out how we plan to meet our legislative
responsibilities in relation to Equalities. The proposed objectives are an
evolution of those things the Council previously felt were important and have
a sound evidence base. Once agreed Cabinet and Council will need to
ensure through their monitoring and challenge that service areas have
considered their obligations within Service Planning.
10.
The development of this Strategic Equalities Plan has been overseen by the
Strategic Equalities Group, of which I am Chair. I believe that it appropriately
reflects the equality priorities that we should focus on to make Newport a
fairer place to live, learn, work and enjoy life.
11.
Ward Member Comments
Not applicable.
12.
Scrutiny Committees
The operational delivery against the Objectives will be within Service Plans
and considered as part of the Service Plan development and monitoring
processes.
Page 234
13.
The Strategic Equalities Plan sets out how the Council plans to address
inequity within the organisation and wider city. Whilst it specifically does not
require a Fairness and Equality Impact Assessment it is a monitoring tool to
ensure our on-going compliance with legislation.
14.
Children and Families (Wales) Measure
The overall Strategic Equalities Plan has no specific requirement, other than
the consultation undertaken, to specifically consult with children and young
people. However, in further developing the action plans to support this overall
Plan, specific consultation will be required as we seek to develop
interventions that directly affect children and young people. This will be
monitored by the Strategic Equalities Group.
15.
Consultation
A consultation process with the public and partners has been undertaken.
Consultation feedback on the budget process and Improvement Priorities has
also been considered, along with the views of the Strategic Equality Group.
16.
Background Papers
Draft Strategic Equalities Plan 2016-20
Page 235
DRAFT
Newport City Council
Strategic Equality Plan and
Equality Objectives
2016-2020
Mae’r ddogfen hon ar gael yn Gymraeg /This document is available in Welsh
I gael copi o’r ddogfen yma mewn unrhyw fformat arall e.e. Braile, Print Bras
cysylltwch a /
To receive a copy of this document in any other format e.g. Braille, Large
Print etc. contact
Corporate Diversity and Policy Officer
[email protected]
Telephone symbol 01633 656656
www.newport.gov.uk
Page 236
Table of Contents
Introduction ............................................................................................................. 10
1
Equality and Welsh legislation and equality objectives .............................. 10
1.1 The Equality Act 2010....................................................................................... 10
1.2 The Welsh Language (Wales) Measure 2011 .................................................. 11
1.3 The Human Rights Act 1998 ............................................................................. 11
1.4 The Well-Being of Future Generations Act 2015 .............................................. 11
2
Newport City Council Equality Objectives ................................................... 12
3
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
Customers ....................................................................................................... 13
The principle of accessible services ................................................................. 13
How we offer services....................................................................................... 13
Positive Action .................................................................................................. 14
Communication ................................................................................................. 14
Buying goods and services ............................................................................... 14
Grants and Third Parties ................................................................................... 14
Partnerships ..................................................................................................... 15
Engagement ..................................................................................................... 15
Complaints and compliments ............................................................................ 15
4
4.1
4.6
4.7
4.8
4.9
Discrimination, harassment and victimisation............................................. 16
Discrimination ................................................................................................... 16
Harassment ...................................................................................................... 16
Victimisation ..................................................................................................... 17
Discrimination Table ......................................................................................... 17
Hate Crime and Hate Incidents ......................................................................... 18
5
5.1
5.2
5.3
5.4
5.5
5.6
Performance/ standards - how we deliver the policy .................................. 18
Strategic Responsibility .................................................................................... 18
Performance ..................................................................................................... 18
Decisions .......................................................................................................... 19
Fairness and Equality Impact Assessments (F&EIA)........................................ 19
Monitoring service delivery ............................................................................... 19
Publishing information ...................................................................................... 20
6
6.1
6.2
6.3
6.4
6.5
6.6
6.7
6.8
6.9
You - the employee ......................................................................................... 20
The People Plan ............................................................................................... 20
Employment ...................................................................................................... 20
Requests in relation to a protected characteristic ............................................. 20
Positive action .................................................................................................. 20
Monitoring and publishing information on employment ..................................... 21
Pay and reward................................................................................................. 21
Positive about disabled people ......................................................................... 21
Employee engagement ..................................................................................... 22
Organisational Development and training ......................................................... 22
7
Newport City Council Equality Objectives and Equality Action Plan
2016-2020 ........................................................................................................ 23
Page 237
Introduction
Newport City Council is a unitary authority formed in 1996, the 8th largest in
Wales providing all major services such as education, finance, social services,
planning and highways. There are approximately 147,000 people living in
Newport.
The following plan sets out our Equality and Welsh language commitments,
and related equality objectives. Actions can be found in the action plan. This
Plan was approved by the City Council on the 03/03/16. It builds on the
Strategic Equality Plan 2012 and the Welsh Language Scheme.
This policy sets out the council’s commitments under the following legislation:
 The Equality Act 2010 and the Statutory Duties (Wales) Regulations 2011
 The Welsh Language (Wales) Measure 2011 and Welsh Language
Standards 2015
 The Human Rights Act 1998
 The Well-being of Future Generations Act - a framework for all council
work.
The equality objectives closely map those chosen and implemented over the
previous four years, but the actions reflect the gains that we have made and
where we are today. The Equality and Human Rights Commission’s draft
challenges issued in Wales in October 2015 have been considered in
choosing our objectives.
1
Equality and Welsh legislation and equality objectives
The legislation below affects people, members of the public, partners and
staff, and all services, including service delivered in partnership or by others
on our behalf.
1.1
The Equality Act 2010
The nine protected characteristics of the 2010 Equality Act include everybody:
Age, disability, gender reassignment, marriage and civil partnership,
pregnancy and maternity, race, religion or belief,
sex, and sexual orientation.
The Equality Act sets down Public Sector Duties that apply to all the Council’s
functions. There are two positive duties and one negative duty: Promoting equality of opportunity
 Promoting good community relations
 Eliminating discrimination, harassment and victimisation
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Specific public sector duties for Wales are set out in the Equality Act 2010
(Statutory Duties) (Wales) Regulations 2011 as issued by the Welsh
Assembly Government.
1.2
The Welsh Language (Wales) Measure 2011 and Welsh
Language Standards
•
•
•
The Welsh language has official status in Wales
Welsh speakers have language rights in Wales to receive Welsh
language services from public bodies
The Welsh language cannot be treated any less favourably than the
English language
Newport City Council’s Compliance Notice from the Welsh Language
Commissioner requires us to comply with a number of standards across
various themes.
1.3
The Human Rights Act 1998 (which incorporates the
European Convention on Human Rights 1950, into British law)
Human Rights and equality are inextricably linked. Equality is treated as a
fundamental human right, from the principle of equal respect for the inherent
dignity of all people.
Article 14 of the European Convention of Human Rights prohibits discrimination
‘on any grounds such as sex, race, colour, language, religion, political or other
opinion, national or social origin, association with a national minority, property,
birth or other status’.
The words ‘other status’ have been held to cover, amongst other things, sexual
orientation, illegitimacy, marital status, trade union membership,
transsexualism, disability, carers and imprisonment.
Article 14 can only be used when attached to a complaint relating to another
article of the Convention such as Article 6: right to a fair trial, or Article 8: right
to a private and family life, home and correspondence.
In some instances the Human Rights Act 1998 gives greater rights to people
than other equalities legislation because it judges treatment against a fixed
standard and does not rely on comparison between treatment of one group of
people and another.
1.4
The Well-Being of Future Generations Act 2015
The Act puts in place a sustainable development principle which means that
‘a body (the Council) must act in a manner which seeks to ensure that the
needs of the present are met without compromising the ability of future
generations to meet their own needs’
The council will agree on overarching Well-being Objectives in 2017 in-line with
the sustainable development principle and the 7 well-being goals. The
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Equality Objectives will inform those objectives and in turn the Public Service
Board’s Well-being Plan (April 2018.)
2 Newport City Council Equality Objectives
These 9 equality objectives have been developed to meet the requirements
of the Equality Act 2010 and the Welsh Language Measure (Wales) 2011,
under the framework of the Wellbeing of Future Generations (Wales) Act 2015.
A more equal Wales
1
2
3
4
Tackling Poverty
become poor
5
and harassment.
6
wish to make.
7
Homelessness
8
Newport
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9
Some of the themes are inward focused- how the council is improving its
practices and ensuring good governance under Corporate Compliance. Other
objectives are outward facing- Engagement and Domestic Abuse, where we
benefit from working in partnership through the One Newport Public Services
Board.
The updated objectives underwent extensive consultation and discussions with
various internal and external stakeholders between November 2015 and
January 2016. The draft document was subsequently submitted to Cabinet and
full Council early in 2016.
The Council is committed to an on-going process of consultation and
engagement with stakeholders throughout the 4-year lifetime of this document
and any changes needed can be done following the review and evidence
gathering undertaken for the Annual Report.
3
Customers
3.1
The principle of accessible services
Our services are open to everyone. We will not discriminate in delivering
services, and access to services will be of the same quality for all people.
We will promote a bilingual public face and provide a bilingual welcome to
inform people that services are available in Welsh and to encourage take up.
Some Council services are targeted at people who need more or different
support, for example children with special educational needs. Other services
are adaptable so they can be delivered to meet people’s cultural or social
needs within the mainstream provision.
Under the Equality Act 2010 the Council can only refuse to deliver a service if
the Council can prove that service is ‘unreasonable ‘or ‘impractical’. However
this can only apply to particular and unforeseen circumstances. Financial
constraints can only be referred to in relation to the whole authority budget.
Relevant WL Standards 1-87
3.2
How we offer services
We will ensure that people who need our services:
 Know what services are available
 Know how to apply for them
 Can easily access them, with assistance if needed
 The Council provides translation and interpretation for community
languages where the lack of these services would place a person at a
disadvantage – to meet a need, not a preference
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

The Council will also put in place technology and adaptations where
possible and practical to ensure access to services for all.
The impact upon the customer is of great importance in determining
what is reasonable. Relevant WL Standards 1-87
3.3
Positive Action
The Council can take proportionate positive action to address disadvantages
faced by people of a protected characteristic, or where it would enable or
encourage participation by an under represented group. An example of this is
women only swimming sessions. We will gather evidence before taking
positive action.
3.4
Communication
The Council will try to get services right for people the first time. We will
communicate with people in Welsh and English unless we know their choice
of language/s. We can’t assume that we know what people need so we will:
 Provide information in a variety of formats including large print, Plain
English and Cymraeg Clir, Braille, and community languages etc.
where needed
 Design products that are easy to read in terms of language and layout
 Use images that reflect the lives of the people of Newport
 Attach full contact details to make it easy for people to contact us
 Ask people their preferred method of communication and where
possible record it and use it
 Train and support employees on how to produce accessible public
information, electronic communication, translation and interpretation
The Council recognises British Sign Language (BSL) as a language in its own
right. The Council will promote Deaf culture and identity. We will increasingly
make use of BSL interpretation and recordings and train relevant staff in deaf
equality and BSL skills. Relevant WL Standards 1-87
3.5
Buying goods and services
The Council will take into account within its tender evaluation and contracting
processes, a potential contractor’s approach to equalities in terms of its
employment practices and service delivery. This will be monitored and
managed during the life of each contract. Relevant WL Standards 76-86
3.6
Grants and Third Parties
All applicants for grants or sponsorship will be asked to demonstrate how they
promote equality and remove barriers for people in-line with the principles of
the Equality Act. They will also be required to promote use of the Welsh
language in-line with the Welsh Language Measure.
The Council will consider the needs of all people and communities, including
disabled people, when making support available to third sector groups.
Support will only be offered to those groups with a valid equality statement.
One Newport Local Service Board has commissioned Gwent Association of
Voluntary Organisations (GAVO) to develop a Quality Assurance Award for
third sector organisations to evidence how they meet a set criterion. Gaining
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the Award is evidence that those organisations have the correct policy and
controls in place. Relevant WL Standards 71-75
3.7
Partnerships
When the Council is a member of a partnership it will promote equality and
the Welsh language in all that it does, and support partners to do so as well.
Collaboration and Involvement are two of the Sustainable Development
Principles of the Well-being of Future Generations Act. Working in partnership
will help us design and deliver services around the customer and the
community.
3.8
Engagement
The Council consults and involves stakeholders - service users, employees,
practitioners and their representatives, in changing or developing services.
Council Members are involved through the political system.
Considering the opinions of people by protected characteristics and other
factors such as poverty, locality, skills etc. gives us a better picture of the
whole population and their needs. We’ll also the consult on the opportunities
to use the Welsh language.
The Council consults people on services that specifically affects them i.e.
disabled people on disabled housing adaptations, as well as on general
services.
The Council will consult with partners in Newport to minimise the consultation
demands on the people of Newport, and make full use of the information
given. Relevant WL Standards 91-93 and 95-97
3.9
Complaints and compliments
The Council welcomes complaints and compliments and uses comments to
try to put things right, learn from mistakes and improve services. The policy is
below
http://www.newport.gov.uk/documents/Council-and-Democracy/CommentsCompliments-and-Complaints-Policy-V1-1-ENG.pdf
The Complaint of Compliment Form is available electronically, below, or call
the council’s contact centre on 01633 656656.
https://services.newport.gov.uk/forms/form/252/en/make_a_complaint_or_co
mpliment
We’ll monitor the complaints to assess whether equalities issues emerge.
We’ll address the issues as they arise and monitor complaints annually. We
keep a copy all of complaints about Welsh language services, as required by
the WL Standards. Relevant WL Standards 147-149
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4 Discrimination, harassment and victimisation
4.1 Discrimination
The Council will make sure that our services are designed and implemented
so that they do not discriminate against people. Our policies will reflect this.
There are four kind of illegal discrimination defined in the Equality Act 2010,
they apply to service delivery and employment:
 Direct discrimination
 Combined direct discrimination
 Indirect discrimination
 Discrimination arising from disability
4.2
Direct discrimination– where a person treats another less favourably
because of a protected characteristic. For example; not giving somebody a
job or refusing to deliver a service to somebody because of their gender.
4.3
Combined direct discrimination - where a person is treated less
favourable because of a combination of protected characteristics e.g. gender
and age
The definition of direct discrimination (see 4.2 and 4.3) has been extended to
reflect case law. It now includes discrimination because of association with
a person against whom it would be unlawful to discriminate e.g. discrimination
against a parent of a disabled person.
Direct discrimination is also extended to cover discrimination based on
perception of protected characteristics e.g. discrimination against a person
who is believed to be a Muslim, even if they’re not.
4.4
Indirect discrimination – when a policy or practice is apparently
neutral but the effect places a group of people at a significant disadvantagefor example an inflexible uniform policy which won’t accommodate people’s
needs based on religion of disability
4.5
Discrimination arising from disability – where a person is treated
less favourably because of something related to their impairment e.g. a
disabled pupil disciplined for not obeying a rule they didn’t know about
because they didn’t understand the sign.
4.6
Harassment
The Council will be pro-active on protecting people. We will raise awareness,
train managers, encourage employees to report harassment and deal with
problems as they arise.
Harassment is unwanted behaviour that has the purpose or effect of violating
a person's dignity or creating an intimidating, hostile, degrading, humiliating or
offensive environment for that person.
Page 244
The Council has responsibility to protect people in the work environment from
harassment by people. We may be found at fault if a person reports
harassment and didn’t take reasonable steps to prevent further harassment.
This remains true even if a person is harassed by different people for
different reasons at different times.
Harassment now includes harassment based on association i.e. a friend of
a disabled person, or perception i.e. mistakenly believed to be a Muslim etc.
Harassment applies to all protected characteristics except for pregnancy and
maternity (where any unfavourable treatment may be considered
discrimination,) and marriage and civil partnership.
4.7
Victimisation
The Equality Act protects people from victimisation on the grounds of any of
the protected characteristics.
Victimisation is when a person subjects another person to detriment because
they have done, or believed that they will do, a ‘protected act.’ A ‘protected
act’ includes bringing proceedings under the Equality Act 2010, giving
information or evidence, or making an allegation in relation to the Act, as long
as they have done so in good faith- that is, done honestly.
4.8
Discrimination Table
Below is a table that shows what is covered by the Equality Act 2010 in terms
of discrimination, harassment and victimisation. Human Rights are applicable
to all people in relation to the Council.
Discrimination
Age
Disability
Gender
reassignment
Marriage and Civil
Partnership
Maternity and
Pregnancy
Race
Religion or belief
Sex
Sexual orientation
Direct
Dual
Indirect
Harassment
(Employees
only)
Victimisation
(Employees
only)
Human
Rights
☺
☺
☺
☺
☺
☺
☺
☺
☺
☺
☺
☺
■
■
☺
☺
☺
☺
■
☺
☺
☺
☺
■
☺
☺
☺
☺
☺
☺
☺
☺
☺
☺
☺
☺
☺
☺
☺
☺
☺
☺
☺
☺
☺
☺
☺
☺
☺
☺
☺
☺
☺
☺
☺Discrimination covered by the Equality Act 2010/ Human Rights Act
■ Discrimination not covered by the Equality Act 2010/ Human Rights Act
Page 245
4.9
Hate Crime and Hate Incidents
Newport City Council, working in partnership through One Newport aims to
promote good community relations and cohesion and deal with hate crime
and incidents motivated by prejudice and hate.
A hate crime is ‘a criminal offense which is perceived, by the victim or any
other person to be motivated by a hostility or prejudice based on a person’s
actual or perceived disability, race, religion and belief, sexual orientation and
transgender’ whereas a hate incident are those that are equally based on
prejudice but are non-crime related.
The Domestic Abuse Unit provides a confidential, multi-agency service to
people affected by domestic abuse.
5
Performance/ standards - how we deliver the policy
5.1
Strategic Responsibility
The Chief Executive and Strategic Director for People are responsible for the
strategic direction of equalities and Welsh language across the council. The
Head of People and Business Change is the Senior Lead Officer. Day to day
management and co-ordination of the policy lies in the Partnership and Policy
Team.
The Strategic Equalities Group is chaired by the Cabinet Member for People
and Business Change. The Cabinet Member for Skills and Work, the
Equalities Champion and officers that represent each equality objective
attend. Some of the themes have implementation groups. Some of these
groups already report elsewhere- to the One Newport Partnership, Welsh
Government etc. The Council’s Tackling Poverty Champion, Armed Forces
Champion, Older Persons’ Champion and Equalities Champion have an open
invitation to attend the group and report to the group once a year.
5.2
Performance
Building on the Local Government Measure (Wales) 2009, the proposed Local
Government Reform Bill will shape the performance agenda in the coming
years with our priorities focused on the framework of the Well-being of Future
Generations Act.
Under the duty to ‘secure continuous improvement’ is a requirement to have
regard to: ‘fairness especially in reducing inequality in accessing or benefiting
from services, or improving the wellbeing of disadvantaged groups.’
To do this we consider our equality duties and the effect on all people. We
implement the Strategic Equality Plan by means of Strategic Equality Group
and through the Service Area Plans which explicitly address equalities and
Welsh language. The Service Area Plans are reported on twice a year.
Page 246
We report on the Strategic Equality Plan and Equality Objectives once a year
to Cabinet. These reports are published on the council’s web site.
The relevant regulators for equalities and Welsh language are:
The Equality and Human Rights Commission (EHRC)
The Welsh Language Commissioner
5.3
Decisions
Decision makers in the Council consider the Public Sector Equality Duty and
the Welsh Language Standards when looking at options and taking decision
about policies and services. One way to do this is by completing a Fairness
and Equality Impact Assessment – an equalities risk assessment.
Under the Equality Act 2010 and Welsh Language Measure 2011 all policies,
practices and procedures should be consulted upon and their impact
assessed (see Fairness and Equality Impact Assessments, below.), a
summary and conclusion of which is detailed within the Council’s report
template.
5.4
Fairness and Equality Impact Assessments (F&EIA)
The Fairness and Equality Impact Assessment is an equalities risk
assessment which records the benefits and risks for different people – by
protected characteristic and on use of the Welsh language. It presents
evidence of research, and consultation and engagement with stakeholders.
See section 3.8. If we assess that the decision may affect people differently,
we’ll take steps to mitigate any negative effects. This will be reported in the
relevant council report.
A Fairness and Equality Impact Assessment report will include:
 The purpose of the policy or practice
 A summary of the steps taken in the assessment
 A summary of the information take into account in the assessment
 The result of the assessment
 Any decision taken by the authority in relation to the results.
The Council will publish the results of Equality Impact Assessments on our
website.
http://www.newport.gov.uk/en/Council-Democracy/Equalities-the-Welshlanguage/Equality-Impact-Assessments/Fairness--equality-impact-assessments.aspx
Relevant WL Standards 88-90 Assessing Impact, 91-93 Consultation and
95-97 Engagement
5.5
Monitoring service delivery
Newport City Council will gather and analyse information on customers’ use
and opinions of its services. Monitoring service delivery and the impact of
service delivery will form a part of the Council’s performance management.
Page 247
5.6
Publishing information
The Council will identify, publish and use equalities information relevant to
how we are delivering the specific duties. The relevant information for
employment has been identified in the Assembly’s The Equality Act 2010
(Statutory Duties) Wales) Regulations 2011 and a summary is written in
section 7.5.
For service delivery we will be publishing information on:
 Performance in relation to delivering the specific duties and the equality
objectives
 Access to services
 Satisfaction with services, and
 Complaints.
6
You - the employee
The values for the Council as an employer were identified by employees in
2010. The authority’s values are being Accountable, Open and United
6.1
The People Plan
The People Plan that sets out how we will motivate, develop and involve
employees in a fair and inclusive way to make the Council a successful place
to work. The Council’s Workforce Plan sits under the People Plan and
contributes to the equality and Welsh language agenda in developing the right
people with the right skills within the authority, and aiming to have the
workforce representative of the population of Newport.
6.2
Employment
The Council aims to be a fair employer and promote a friendly working
culture. Without committed enthusiastic, skilled and empowered people the
Council cannot succeed. We’ll create a healthy, safe and supportive work
environment where people are respected for who they are and employees can
perform at their best.
It is illegal to discriminate either directly of indirectly against people in
selecting and employing people, in the terms of employment, access to
training, promotion, transfers, retirement, dismissal, and other benefits on the
grounds of any of the protected characteristics. The previous section on
discrimination in the ‘customers’ section applies to employees.
6.3
Requests in relation to a protected characteristic
We will make every reasonable endeavour to meet employee requests
relating to a protected characteristic, including dress, food, holidays, prayer
times, work patterns, leave, support, physical adaptations etc. in order not to
discriminate.
6.4
Positive action
Positive action measures can be used to counteract the effects of past
discrimination so that people in such groups can achieve their potential. We
Page 248
will evidence that we believe such disadvantages or underrepresentation
exists before taking action.
The Council has a policy on harassment and victimisation. It is important for
people to be able to work in a harassment-free environment. Harassment in
the workplace is completely unreasonable, and illegal.
6.5
Monitoring and publishing information on employment
Newport City Council is a large organisation with many places of work. It is
important that we know the workforce, who are our employees, what are their
needs etc.
We will monitor recruitment, employee development and retention including:a) Number employed (by protected characteristic)
b) Number employed by job, grade, pay, contract type and working
patterns (by sex)
c) Number of employees within a reporting period (by every protected
characteristic) who:
 Applied for a job
 Changed positions and who applied to change positions, applied
for training, were successful in getting training, and completed
their training
 Employees involved in grievance procedures
 Employees subject to disciplinary
 Employees who left the employment of the authority
We will monitor and publish data as required above as available on the
Councils’ payroll system. We will publish data in a way that does not identify
individuals. We will make monitoring information available to the public on the
Council’s equalities web pages.
http://www.newport.gov.uk/_dc/index.cfm?fuseaction=equalities.homepage
Figures on employment will not inform us the reason for any differentials. For
the causes of any differentials and actions to address them we’ll ask current
and prospective employees their opinions and experiences.
6.6
Pay and reward
NCC implements an open, modernised pay and grading structure and flexible
benefits framework, and has implemented a comprehensive pay and grading
review under the Total Reward project.
6.7
Positive about disabled people
The Council is committed to the two ticks -‘Positive about disabled people
initiative which guarantees an interview for disabled people who meet the
essential job requirements. We can make changes to an employee's
environment and role if they are disabled. Managers are responsible for
providing a suitable work environment that allows employees to carry out their
work. Support is available for employees and managers by occupational
therapists, work psychologists and access to work advisors.
Page 249
6.8
Employee engagement
Employee engagement is one of the five themes of the Council’s People Plan
for employees. Engagement is essential for developing a culture and
structures where new and innovative work ideas can be progressed and
across the authority.
6.9
Organisational Development and training
Newport City Council is committed to a Corporate Organisational
Development Strategy, helping today’s leaders, managers and employees
understand equality in developing better public services.
The Council invests in employee and Member development fairly and
equitably.
The Council offers the following equalities and Welsh Language training
courses, which we review on an on-going basis:











Equalities Awareness
Fairness and Equality Impact Assessments F&EIAs
Welsh Language Awareness and the Welsh Language Standards
Welsh Language Taster Courses
Welsh Language Greetings
Prevent Training –WRAP
Extremist Ideology Training
Hate Crime Awareness
Modern Slavery
Honour Based Violence
Forced Marriage and Female Genital Mutilation awareness, Dementia
Friendly Awareness
Briefings on Organising Bilingual Meetings, Assessing Language Skills for
Posts, Community Tensions, Asylum Process etc.
Employees are introduced to the Equality Duties and Welsh Language
Standards in Corporate Induction and their local service area induction and
have access to e-learning courses on the council’s e-learning portal.
Service managers and employees will identify what skills are required to
deliver good and fair service through each employee’s Your Review.
Page 250
7
Newport City Council Equality Objectives and Equality
Action Plan 2016-2020
A more equal Wales
1
2
3
4
Tackling Poverty
become poor
5
and harassment.
6
wish to make.
7
Homelessness
8
Newport
9
Page 251
The following objectives and actions will be further developed with the
Strategic Equality Group and Newport City Council’s partners in the months
following Council approval of the Strategic Equality Plan and Equality
Objectives
Equality objective 1
Diversity in the Workplace- Engaging Employees
Objective and
outcome
A more equal Wales
The Council’s workforce will be representative of the
population we service and the workforce are involved in
decisions that affect them
Action 1
Develop a Workforce Planning Template as set out in the
People Plan
Create a workforce data dashboard to compare workforce with
Newport population
Action 2
Develop a Strategy to address areas of difference
Action 3
Identify partner organisations to work with on representation of
different people
Engage staff on matters that affect them
Action 4
Objective and
outcome
A more equal Wales
We will involve people in the development of Council
services that affect them and base Council decisions on
what people need
Action 1
Action 2
Action 3
Action 4
Action 5
Develop a Public Engagement Strategy to support the
Response Analysis required under the Well-being of Future
Generations Act
Gather data and intelligence through a range of methods to
support the Situation Analysis required under the Well-being of
Future Generations Act
Fairness and Equality Impact Assessments undertaken on
policy changes, projects etc. and published on council website.
Ensure effective engaged Youth Council in Newport who have
access to decision makers
Work with Newport’s Welsh Language Forum / Fforwm Iaith
Casnewydd to develop a strategy to increase the use of Welsh
in Newport
Page 252
Improving access to servicesObjective and
outcome
A more equal Wales
People can access all the Council services and activities
that they need in terms of physical access and
communication access etc.
Action 1
Audit council buildings for accessibility
Action 2
Develop an Accessibility Strategy in relation to schools
Action 3
Develop and maintain an English - Welsh translation and
interpretation service for the council and arrangements for other
languages and formats
Develop guidance on standards of accessible and bilingual
materials in relation to marketing, publicity and customer
information
Monitor satisfaction levels/ number of complaints regarding
accessibility including physical, communication and Welsh
language
Front line staff in the contact centre and Information Station
trained in accessible communications, customer service,
disability awareness, conflict management etc.
Digital Inclusion Council web site adheres to W3 standard at AA
level and is bilingual
Action 4
Action 5
Action 6
Action 7
Tackling Poverty
Objective and
outcome
A more equal Wales
We will work to reduce poverty, especially persistent
poverty amongst some of our poorest people and
communities, and reducing the likelihood that people will
become poor
(Tackling Poverty Action Plan: preventing poverty; helping
people out of poverty; action to mitigate the impact of
poverty)
Action 1
Ensuring children have the best start in life through the delivery
of Flying Start, good quality, affordable childcare and supported
transition to education and through other educational transition
points
Page 253
Action 2
Focusing on the early indications of need so that children and
young people are able to achieve their potential (achievement
of children entitled to Free School Meals, Looked After
Children, etc.)
Action 3
Implementing the Youth Engagement and Progression
Framework so that young people are offered appropriate
support when leaving school
Delivery of the Work Based Learning Academy, Community
First and Families First (Family Skills Project) to improve
people’s skills, remove barriers to employment and raise
aspirations
Targeted work in our most deprived communities
Action 4
Action 5
Supporting the armed forces covenant
Objective and
outcome
A more equal Wales
To encourage support for the Armed Forces community
living and working in Newport
Action 1
Action 2
Supporting the Armed Forces Forum and the Council’s Armed
Forces Champion
Working with and supporting the Royal British Legion in
supporting veterans and their families
Action 3
Improve local data on armed forces personnel and veterans
and maintain a voluntary mailing list by which to engage them
Action 4
Support Armed Forces Reservists within the workforce
Page 254
Objective and
outcome
People has a sense of belonging to the city and feel safe.
Action 1
We will encourage and support initiatives which provide
opportunities to increase awareness and understanding of
diverse cultures In Newport
Action 2
To continue our support for the Hate Crime Forum in order to
raise awareness of Hate Crimes, increase reporting and deliver
a multi-agency response to high risk cases
Action 3
We will co-ordinate a partnership approach to reporting and
tackling prejudice based bullying in schools and look to play a
proactive role in challenging prejudice
Action 4
We will encourage opportunities to increase the public’s
awareness of immigration and the inclusion of asylum seekers,
refugees and migrants focusing on the shared experiences of
all residents in Newport regardless of migration status or
ethnicity
Objective and
outcome
People who are subject or witness to domestic abuse are
supported by the Council and its partners in their current
situation and through any changes they wish to make
Action 1
Further develop the multi-agency Domestic Abuse (DA) Unit
Action 2
Roll out training on awareness and referral processes
Action 3
 Forced Marriage / Honour based violence/ FGM
 Domestic abuse
 MARAK (multi agency risk assessment conferences)
 DASH (Domestic abuse stalking and harassment tool)
 Ask and Act Legislation
Review and further develop the:
 Domestic Abuse Strategy for Newport and Action Plan,
 Domestic abuse directory of services
 Conference Call Domestic Abuse IT system
Page 255
Homelessness
Objective and
outcome
To provide a safe, supporting, empowering and nonjudgemental environment for homeless and marginalised
people so that they can achieve their potential
Action 1
To implement the Supporting People grant programme funded
by the Welsh Government to assist and support potentially
vulnerable and marginalized people to live independently within
the community
To prevent homelessness where practicable to do so through
the provision of appropriate practical help, advice and
assistance
Action 2
Action 3
Provide support, help and practical assistance to build
individuals to cope with challenging situations and to develop
skills in order to live independently
Objective and
outcome
We will promote our bilingual public services and increase
the use of Welsh in Newport
Action 1
Action 2
Run a publicity campaign to promote the Welsh Language
Standards, and roles and responsibilities for staff, Members
and the public
Make the best use of council systems to facilitate language
choice
Action 3
Engage partners in facilitating people’s use of the Welsh
language in Newport
Action 4
Develop a translation service for Newport City Council
employees, and facilitate employees’ development of their
Welsh language skills in the workplace
Page 256
Objective and
outcome
Strategic leadership, governance arrangements, ensuring
standards are high and consistent across all the council
and its areas of responsibility
Action 1
Monitor performance, including customer satisfaction, through
the Strategic Equality Group
Action 2
Report annually on equalities and the Welsh language to
Cabinet and the Senior Leadership Team, and publish relevant
reports on the council’s website
Action 3
Web pages hold relevant equality information:
 Equality Impact Assessments
 Annual Equality and Welsh language Reports
 Equalities and Welsh language population and employment
data
Council employees offered all the relevant training and
guidance to facilitate compliance with the equalities, human
rights and Welsh language legislation
Review procedures on procurement, grants and sponsorships
to mainstream equalities and Welsh language requirements
Action 4
Action 5
Page 257
Agenda Item 6
Report
Cabinet
Part 1
Date:
February 2016
Item No:
See above
Subject
Work Programme
Purpose
To agree a work programme for 2016
Author
Head of Democratic Services
Ward
All Wards
Summary The Corporate Assessment suggests to the Council that it should consider strengthening
committee work programming arrangements to ensure they are timely, meaningful,
informative, and transparent, balanced, monitored, and joined up.
In response to that suggestion Cabinet agreed that each month the Head of Democratic
Services will ask Chief Officers to update the Cabinet work programme and this update
will be reported to Cabinet
Work programming for the Cabinet is member led and as such this programme is
submitted for approval or amendment by cabinet members
This programme will then be used to help inform the Scrutiny Committee work
programmes.
A work programme suggested by Chief Officers is attached. This is, of course, a working
document and will be subject to change. It is important that the work programme for
Cabinet and, in the case of Scrutiny Committees, the work programme for those
committees are owned and prioritised by members. Regular reports on the programme
will provide more opportunities for that to be done.
Proposal
To agree the proposed programme
Action by Head of Democratic Services
Timetable Immediate




Chief Officers
Monitoring Officer
Head of Finance
Head of People and Business Change
Page 259
Background
As mentioned in the summary above, the Corporate Assessment suggested to the Council that it should
consider strengthening committee work programming arrangements to ensure they are timely,
meaningful, informative, and transparent, balanced, monitored, and joined up.
In response to that suggestion cabinet agreed that each month the Head of Democratic Services will ask
Chief Officers to update the Cabinet work programme and this update will be reported to Cabinet
This will then be used to help inform the Scrutiny Committee work programmes
A work programme suggested by Chief Officers is attached. This is, of course, a working document and
will be subject to change. It is important that the work programme for Cabinet and, in the case of
Scrutiny Committees, the work programme for those committees are owned and prioritised by members.
Regular reports on the programme will provide more opportunities for that to be done.
Financial Summary
There is no direct cost to adopting a programme of work
Risks
Risk
No action
taken
The process is
not embraced
by report
authors and
members
Impact of
Risk if it
occurs*
(H/M/L)
M
Probability
of risk
occurring
(H/M/L)
L
What is the Council doing or
what has it done to avoid the
risk or reduce its effect
M
M
If there is proliferation of
unplanned or late items, the
opportunity to ensure work
programming is timely,
meaningful, informative, and
transparent, balanced,
monitored, and joined up will
diminish
This work programming
arrangements to ensure they
are timely, meaningful,
informative, and transparent,
balanced, monitored, and
joined up.
Who is
responsible for
dealing with the
risk?
Head of
Democratic
Services
Head of
Democratic
Services
These proposals will help the Council provide the best possible affordable service to members and will
provide information to the public and elected members
Options Available



To adopt the process and adopt or amend the work programme
To consider any alternative proposals raised by Cabinet members
To take no action
Page 260
To adopt the proposals which should help to ensure work programming arrangements are timely,
meaningful, informative, and transparent, balanced, monitored, and joined up.
There are no financial implications in adopting a programme of work
There are no legal implications in adopting a programme of work
Staffing Implications: Comments of Head of People and Business Change
There are no specific staffing l implications in adopting a programme of work
The Chair has approved the report for consideration by cabinet.
Local issues
There are no local issues as this report relates to the Council’s processes
Scrutiny Committees
Regular updates will allow the Scrutiny and Cabinet work programmes to be better coordinated. The
Scrutiny Improvement Group is developing new ways of working and reviewing the work programmes to
focus more on risk and restricting the number of items on agendas by channelling information reports by
way of other and ensuring committee reports are based around outcomes
These proposals need no Equalities Impact Assessment
Consultation
All Chief Officers are consulted on the programme
Background Papers
Corporate Assessment
Dated: 5 Feb 2016
Page 261
CABINET WORK PROGRAMME
2016-2017
Cabinet
Meeting
January
2016
February
2016
Page 262
March
2016
April
2016
Items for provisional agenda
Lead Officer
For Scrutiny / Date
Council
Improvement Plan 2016/17
Revenue and Capital Monitor
Council Tax Reduction Scheme
Work Programme Update ( regular
item)
Head of People & Business Change
Head of Finance
Head of Street scene & City Services

Budget and MTFP
Capital Budget
Strategic Equality Plan
item)
Head of Finance
Head of Finance
 Budget and MTFP
 Capital Budget
Improvement Plan update
City Deal
School Categorisation
EAS Business Plan 2016-19
Public Service Boards
Budget Monitoring
Treasury Management
Pay and Reward Policy
Staff Survey
Wellbeing of Future Generations Act
item)
Chief Executive
Chief Education Officer
Head of Finance
Head of Finance
Improvement Plan 16-18
Risk Register Update
item)



Council Tax Reduction
Scheme
Treasury Management
Nomination of the Mayor
Schedule of meetings



Improvement Plan
2016/17
Treasury
Management
Members
Remuneration for the
coming year

May
2016
June
2016
July
Page 263
2016
Sept
2016
School Organisation
IT service review.
item)
Improvement Plan Update
Certificate of Compliance
Capital Outturn
Revenue Outturn
item)
Head of Finance
Head of Finance
Director of Social Services Annual
Report
Budget Consultation and engagement
timetable
Revenue Budget Monitor
Capital Monitor & Additions
item)
Director of Social Services
Head of Finance
Head of Finance
Improvement Plan Review
Improvement Plan Quarter 1
Welsh Language Scheme – Annual
Report
Equalities Plan – Annual Report
Treasury Management
item)
February 2016
January 2016


Head of Finance
Head of Finance




Head of Finance
Pay and Reward
Policy
Annual Report by the
Director of Social
Services
Annual report by the
Democratic Services
Committee
NNDR Rate relief
Scheme
Improvement Plan
Review
Scrutiny Committees
Standards Committee
Oct
2016
Nov
2016
Dec
2016
Page 264
Jan
Annual Improvement Report
Capital monitor & Additions
item)
Head of Finance
Head of Finance
Education and Pupil Performance
data
item)
Revenue Budget and MTFP
Improvement Plan Update
Certificate of Compliance – letter 2
item)
Head of Finance
Improvement Plan 2017- 2018
Reduction in Council Tax Scheme
Head of City Services and Digital
Infrastructure
Head of Finance
Head of Finance
2017
Capital Budget Monitor
item)
Feb
2017
Budget and MTFP
Capital Budget
Treasury Management
item)
Gambling Act – Statement of
Principles Update
Head of Finance
Head of Finance
Head of Finance
 Council Tax Reduction
Scheme
 Nomination of the Mayor
 Schedule of meetings




Budget and MTFP
Capital Budget
Treasury Management
Page 265

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