Funding reduction is within expectations

Date:  15 December 2010

As part of its national funding settlement for councils, the Government has announced that Three Rivers District Council, along with other authorities, will receive a reduction in funding for the next two years. The reduction in Government grant equates to 16.8% in 2011/12 and a further 14.1% in 2012/13. In the current year the grant contributes 45% of the Council's net expenditure.

The reductions are broadly in line with the Council's own forecasts for the next two years. The Council is currently developing a range of measures aimed at reducing costs by approximately £2m to balance its budget while maintaining a high level of service.

Expenditure reductions which are being considered for 2011/12 include stopping the use of First Class post, reducing Councillors' allowances, deleting certain vacant jobs, reducing overtime payments, reducing the use of casual staff, reducing IT costs, reducing certain leisure projects and increasing the cost-efficiency of weekly kerbside refuse and recycling collections. The Council has made a commitment to keeping a weekly kerbside collection service.

Efficiency gains being made in the current financial year include the abolition of the Customer Service Excellence inspection and accreditation, renting office space to the Police and cutting the delivery of an A-Z directory of services to all homes. There has also been an increase in building control fees.

The Council has called on residents to do their bit in helping services to run as efficiently as possible - including using the website for routine enquiries, reporting litter, dog-fouling, fly-tipping and graffiti and registering to vote before the Council has to send a reminder.

Effciency gains by the Council in the last two years have included:

2008 Transfer of management of leisure centres from the Council to Hertsmere Leisure Trust (under Council ownership)

2008 Joint re-development of Watford Woodside leisure centre with Watford Borough Council

2008 Transfer of housing stock to Thrive Homes housing association

2009 Implementation of Shared Services with Watford Borough Council – IT, benefits, finance and human resources.

The Council saved £1.24M in the past two years as a result of efficiency savings and was able to cut Council Tax by 0.5% last year. No Council Tax rise is expected for the coming financial year. The Council's budget for next year will be announced at Council on 22 February.

The funding reductions announcement has coincided with the publication of the Localism Bill which proposes greater flexibility to Councils to respond to local needs and greater powers to residents to influence decisions.