city of edinburgh council—budget decisions 2011–2014

8/8/2019 City of Edinburgh CouncilBudget Decisions 20112014

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Budget Decisions 2011 - 2014


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Edinburgh is a great place in whichto live and work, with a vibrantculture and dynamic economy.

That doesnt mean were immunerom the tough fnancial challenges

being aced by councils across the UK.

As we prepare to make budget cutso at least 90 million over the next

ew years our greatest challenge willbe to ocus on what matters most delivering essential services.

We will be making some very toughchoices in the months ahead and itis likely that this will lead to changesin the ways in which Council servicesare delivered in the uture.

Weve already taken action to ensurea balanced budget. Thats why wevemade savings o 90 million over thelast three years, reduced the Councilsbudget by 27 million this year and

have ensured the Councils fnancialstability by putting aside money tocover exceptional spending, suchas ooding.

We now need to do more to prioritisewhat we do and how we do it. Thismeans continuing some services,reducing some and cutting others.

We must continue to invest in

Edinburghs economy, including delivering the tram project, whichis largely paid or rom outwith ournormal unds. This is vital to helpthe city maintain its attractivenessto investors, businesses and tourists,as well as ensuring Edinburghcan recover more quickly romthe recession.

Its essential that we all ocus on theneeds o the city as a whole, and notjust on those services we personally

want to retain. I know this isnt easy,but we must do this to maximise theuse o the resources we still have.

I hope this lea et gives you someinsight into the budget challenges

acing the city. Please do take thetime to share your views with us they really do matter.

Councillor Jenny DaweLeaderThe City o Edinburgh Council

There are tough choices ahead, and we know the budget decisions we makewill have a real and lasting impact on everyone who lives and works in the city.

Thats why its important that youre involved in helping us make the decisionsthat are right or you, your community and your city.

This lea et gives you in ormation about the Councils budget, how Councilservices are unded and the changes we may have to make because o thereduction in unding were acing over at least the next three years.

Wed like to know your views on some o the di fcult decisions were acing. Your views really do matter and will be an important part o the decisionsthe Council has to make about its budget.


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Throughout September and October were inviting a cross-section o the public to a series o budget summit meetings throughout Edinburgh. At each o the events key budget themes will be discussed and an indicative vote will be held. This will culminate in a city summit on 15 October. You cansee the city summit online and view eedback rom each o the budgetsummits at www.edinburgh.gov.uk/budget

Community and interest groups will be given this budget in ormation.

I you want to hold your own meeting to discuss the key budget issues andpriorities, we can provide you with an in ormation and engagement pack.See contact details on page 18.

You can learn more about the Councils key budget priorities and respondto the questions detailed in this lea et. You can also complete the samequestions online at www.edinburgh.gov.uk/budget

The worldwide economic recession is having a serious impact on all o us.For councils across the UK, as well as other public sector organisations, thismeans having to make signifcant cost savings.

With public sector spending being reduced, the amount o money all councilsreceive rom the UK and Scottish governments will be reduced year on year,

or the next our or fve years. The total reduction in public spending inScotland could be around 6.4 billion.

In Edinburgh this orces us to look at making budget cuts. This comes at atime o increasing demand or some services, such as vulnerable and lookeda ter children, adults with disabilities and elderly people.

We need to make savings, whilst at the same time ensuring we continue tomaintain high standards o service.


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We receive 77% o our unding or running day-to-day services,

excluding Council housing, romthe Scottish Government. Theremaining 23% comes rom thecollection o Council Tax

Under an agreement with theScottish Government, Council Taxhas been rozen or the last threeyears

Edinburgh has the lowest CouncilTax o the our major Scottishcities

Our budget or 2010/11 is around1 billion, which in itsel neededgross savings o 42m

Sound fnancial management isan absolute priority. Weve made 90 million in savings between2006 and 2009, mainly throughe fciencies

Were on target to restore ourunallocated reserves to 12million (1% o expenditure)by 2012. This allows us to meetun oreseen circumstances, suchas serious ooding in the city

We will have to make savings o at least 90million between 2011- 2014

We need to fnd around hal o these savings, approximately45 million, during 2011-12

This saving cannot be met throughe fciencies alone radical changeis needed

The amount we need to save may

increase signifcantly, depending on decisions made by the ScottishGovernment, or example, i spending on health is protectedthis may have a direct impact onCouncil budgets

We have to ocus on doing whatmatters most delivering essential rontline services,protecting and supporting ourchildren and the most vulnerablepeople in our city

Weve been delivering someessential rontline services inpartnership with the private

and voluntary sectors or manyyears. This includes care homesor the elderly, nursery provision

and community recycling centres.


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The Council, working with partnersand organisations, must continue toinvest in our city. We need to ensureEdinburgh remains an economically vibrant city, with a dynamic economy,attractive to tourists, and providing a high quality o li e to the peoplewho live and work here.

To make sure this continues andto help Edinburgh recover rom therecession, we need to invest.

This includes ensuring that the tramproject is delivered. Edinburghs tramhas been principally fnanced by theScottish Government this moneyis not available or any other use.Having a 21st century tram systemin Edinburgh will provide a rangeo benefts, including:

Trams carry high passenger volumes. This reduces carusage and congestion

Over 48km o utilities havebeen upgraded across thecity meaning aster broadband,cleaner water and more reliabletelephony

Edinburgh will be brought up todate with transport systems inother European capital cities,maintaining its status as agateway or visitors rom allover the world.

Scrapping the trams isnt the answerto the budget short all this Councilis acing.

We must continue looking at wheree fciencies can be made throughworking in partnership with theprivate sector and voluntaryorganisations. This isnt something new weve been doing this oryears. Were now looking at a rangeo services, and considering whetherwe continue to deliver these directly,or i alternatives will give better value

or money and improved service.

The savings we need to make, orat least the next three years, are sogreat that e fciencies alone wontbe su fcient to ensure a balancedbudget. Its clear that we need tolook at the services we provide, andprioritise those services which arethe most important.

You can share your views on someo these key issues rom pages 10

onwards.

Theres no doubt that we cannotcontinue to deliver all o the sameservices at the same level as be ore.The money simply isnt available toallow us to do this.

By taking action weve already made90 million in savings, and managed

to reduce our spending by 27million. Examples o how wevedone this are:

trans orming our homecareservices, improving e fciencyand customer satis action

improving our procurement,making signifcant cost savings

or example in heating andlighting

rationalising our school estates,protecting unding or education

using the private and voluntary

sectors to provide services where this gives better value.


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By becoming more e fcient, weve reduced running costs over many years- making savings o 90 million in the last three.

But e fciencies are now not enough! We must do things di erently and taketough decisions to save more.

A range o measures have already signifcantly reduced the amount o moneywe spend on supporting the delivery o Council services - our back-o fce costs.

This has been achieved by good use o technology and sta reductions. We arecontinuing to reduce numbers o managers and sta as well as working hours,recruit to essential posts only and care ully manage the number o contract andtemporary sta .

Increasing e fciencies and reducing sta costs Continue to reduce the number o managers, recruit to essential postsonly and o er sta the opportunityto voluntarily reduce their hours

Invest in new technology Encourage more customers to useonline services, rather than aceto ace or telephone contact

Reduce running costs Streamline processes to removewaste and duplication

Protecting people and neighbourhoods across the city and ensuring publicsa ety is a major priority. A range o services - many o them in conjunctionwith Lothian and Borders Police - tackle problems in the community, including reducing litter, gra fti, noise and antisocial behaviour.

Now we have to review the range and requency o services we deliver andtarget our resources where they will have the most impact. For example,we provide a 24-hour noise and antisocial behaviour service. But it is theweekend when there are the biggest problems, the greatest need and thehighest demand.

Develop communities that are sa e Respond to noise complaints at thebusiest times only and not deal withlow level anti social behaviour

Keep communities clean Move to less requent streetcleaning, gra fti removal andemptying o litter bins

Make sure people are well-housed Reduce some housing adviceservices


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Weve been delivering some essential services in partnership with the privateand voluntary sector or many years. This includes care homes or the elderly,nursery provision and the kerbside recycling collection. It also includes theCouncils IT service.

Providing even more Council services this way has the potential to secureinvestment and make additional cost savings. This could lead to us sharing services with other public sector organisations, establishing charitable trustsand working in partnership with the private sector. Areas being consideredinclude Revenues & Benefts, re use collection and recycling.

Prov ided serv ice st andards are pr ot ect edand cost savings made, would yousupp or t some Council serv ices beingdelivered by ot her organisat ions,including t he pr ivat e sect or?

Assist people to improve andmaintain their independence,support them to live at home orin the community where possible

Reduce in-house service provisiono care homes, with more relianceon the private sector

Move to an alternative service

provider where there is beneft toboth the Council and its customers

Review property related services

(including janitors) and transactionalservices (including payroll, HR andinvoice processing etc)

We currently provide a wide range o services to the most vulnerable peoplein society including children, the elderly and people with disabilities.

We also o er a wide range o preventative services and support to amilieswho care or their relatives.

A small number o our services are being delivered ree o charge to allresidents irrespective o fnancial circumstances whilst most are subjectto means-tested charges.

We ace increasing challenges as demand or many o our services is rising because more people are living longer. The recession has also increasedpressure on benefts, debt advice, homelessness and social care services.The level o savings required means that services cannot be protected atcurrent unding levels.

Weve responded to the rising demand and fnancial challenges by introducing new ways o providing care or those in greatest need, shi ting rom in-houseservices to external where this o ers the best value or money. This includesmoving, where possible, rom residential care to care based in peopleshomes.

Maintain services or the most vulnerable children and adults whileaddressing fnancial challenges

Delivery o more services throughSocial Care Direct

Provide support to vulnerablechildren and their amilies

Reduce spending on expensiveresidential places outside Edinburghby increasing early support or

amilies in their own communitiesMake sure our children have the beststart in li e

Integrate early years services tomake better use o our resources


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We want Edinburgh to be the greenest, cleanest and most sustainable cityit can be.

You are recycling more, but urther action is required to reduce landfll andavoid fnancial penalties rom the European Union. The Council has alsoinvested heavily in improving the condition o roads and pavements butthere is still a long way to go. So this needs to remain a priority.

We plan to introduce new recycling services such as ood waste andplastic. This could dramatically reduce the amount o residual waste thatgoes to landfll. We could then change re use collection patterns withresources ocused more on recycling and less on residual waste.

Develop the UKs healthiest, mostaccessible, sustainable and e fcient

transport system

Not expand schemes such asBustracker and the Park and Ride

network Develop communities that are greenand clean

Invest in new recycling services suchas plastic and ood waste, allowing us to change re use collectionpatterns ocused more on recycling and less on residual waste

Developing communities that arewell-maintained

Reduce unding or fxing potholesand repairing street lighting

Edinburgh has the lowest Council Tax o all our major cities in Scotland.Weve also had a reeze on Council Tax or three years. However, a smallincrease, even as low as 1%, would provide an additional 2.2million inrevenue every year. This could help protect ront line services. Such anincrease at Band D would mean a small yearly increase o 11.69.

Maximise income rom Council Taxand other sources

Increase Council Tax, increase orintroduce charges or some services possibly in line with in ation


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Please fll in your details below and return with the orm overlea

Name .................................................................................................................

Address .............................................................................................................

...........................................................................................................................

...........................................................................................................................

...........................................................................................................................

Email Address ....................................................................................................

1. Savings and e fcienciesDo you think the Council is right to ocus savingson back o fce costs - wherever possible - be ore

rontline services are considered?

2. CommunitiesDo you think the Council is right to consider directing these services to the times when and where they aremost needed?

3. Delivering services di erently Provided service standards are protected andcost savings made, would you support some

Council services being delivered through otherorganisations, including the private sector?

4. Pressure on services to vulnerable groupsDo you think the Council should prioritise servicesto those in greatest need?

5. Charging to cover costsDo you think the Council is right to considerintroducing a charge or these type o services tocover costs?

6 BuildingsDo you think the Council is right to look at howsavings can be achieved through better use o itsproperties, reviewing opening hours, moving someservices to nearby locations and sharing propertieswith public sector partners?

7 EnvironmentGiven the number o recycling acilities andcollections already in place - and new servicesplanned - would you support, or example, changing

rom a weekly to a ortnightly domestic wastecollection service?

8 Council Tax Would you consider paying more Council Tax i thiswas directed to essential, ront line services?

Here youll fnd some key priorities. Were acing a toughand challenging time and the Council will have to makesome di fcult decisions over the coming months. Let usknow your views by answering the ollowing questions.Once youve completed all the questions, please returnto Freepost, RSJC-SLXC-YTJY, Budget, Council Leader,City Chambers, Edinburgh EH1 1YJ.

I you pre er, you can complete the questions online at

P l e a s e c u t h

e r e

P l e a s e c u t

h e r e


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You can get this document on tape, in Braille,large print and various computer ormats i

you ask us. Please contact ITS on 0131 242 8181and quote re erence number 00878. ITS can

also give in ormation on community languagetranslations. You can get more copies o this

document by calling 0131 200 2300.

Designed by the City of Edinburgh Council Corporate Services 0561/CS/CC/ Sep 2010

city of edinburgh council—budget decisions 2011–2014

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