Council to set its budget for 2012/13

Hampshire County Council is to set its budget for 2012/13 at a meeting of the full council on Thursday 23 February.

The proposed budget freezes council tax, builds on the reductions in running costs already made, protects essential frontline services for the most vulnerable and paves the way for significant capital investment in key areas

Ongoing cuts in public sector spending led to Hampshire losing 14.3 per cent of its Government grant last year and will see an additional cut of 10.4 per cent in 2012/13, with further cuts yet to be confirmed for the next two years.

Hampshire County Council has planned to meet the funding reductions and budget pressures it faces over the Government’s four year comprehensive spending review period - in two years. This is to reduce uncertainty, capture efficiencies early and put the Council in a strong position.

The Council is now halfway through its ambitious two-year £100million efficiency and expenditure reduction programme that has focused reductions on operating costs and looked to modernise service delivery rather than cut services.

This means for 2012/13 savings of £45million are required - but overall, around half of these are already secured as a result of the full year impact of previous budget decisions taken.

Examples of how the savings will be made next year:

• Integrating the Council’s corporate professional and support services to cut costs even further.
• Exploring other opportunities to share services with partners following the success of sharing forensic and IT services.
• Continuing to reduce overheads and running costs for example, retaining the freeze on recruitment, renegotiating contracts to secure even better value for money, making more cuts in IT costs, communications and support services
• Better use of technology such as a new domiciliary care monitoring system, which will save £3 million alone by reducing administration
• further staff reductions, but on a lesser scale with around 230 full time equivalents currently predicted, excluding areas where reviews and new structures are still being finalised.

To be protected

• Child Protection and safeguarding services ensuring safe social care services continue to meet the needs of vulnerable children and families in need of support
• The eligibility criteria for adult social care clients
• Highways maintenance including the continuation of Operation Resilience
• In addition an extra £11.5 million is being provided to meet the needs of a growing older population and the increasing complexity of adult social care clients' needs.

Council tax

The County Council will freeze Council Tax in 2012/13, which means it will have been at the same level for three years - at a time when household budgets are under pressure. Band D Council Tax will be £1,037.88, one of the lowest in the country.