Revenue assumptions

The table below shows a summary of the proposed changes to the base budget, used in developing the estimated budgets for each of the subsequent financial years, 2014-2019. The key points to note are as follows:

• An assumption that Council Tax increases will be 2% for the 5 year period 2014-19.
• An estimate of a 1% pay award for all staff groups has been used in each of the five financial years.
• Increments are applied to service support staff, up to the point where they reach the top of the scale.
• Price increases are based on an annual inflation rate of 3% in each year.
• An increase in employer contributions to both of the firefighter pension schemes is anticipated in 2016/17 (£800k).
• The contracted out National Insurance rate will be abolished in 2016/17 with a potential cost to the Authority of £949k.
• The impact of changes to pension schemes in 2014/15 (£43k) and 2015/16 (£150k).
• The back dating of pension contributions relating to the Norman v Cheshire FRA case in 2015/16 (£90k).
• The cost of auto enrolement into the pension schemes will impact in 2017/18 (£248k).
• An assumption that the Council Tax base will increase by 0.5% in each financial year between 2015/16 and 2018/19.
• It is prudent to assume at this point in time that there will be no surplus or deficit on the collection funds in future years.
• Government Grant will reduce by 9.7% in 2015/16 with further average reductions of 6.5% in each of the next three years.