Budget Assumptions
The table below expands on the information set out in the MTFP detailing the areas in which additional funding pressures are expected to arise in the next four years in addition to the main sources of income (over and above the funding detailed on the previous page).
| Employee Cost Pressures (£'000) (All figures are £000 unless stated) |
2015-16 | 2016-17 | 2017-18 | 2018-19 | 2019-20 |
|---|---|---|---|---|---|
| Pay Awards | 870 | 84 | 465 | 470 | 456 |
| Increments | 117 | 75 | 96 | 81 | 56 |
| Bank Holiday pay adjustments between years | 116 | -205 | 152 | -100 | 49 |
| Pensions and ill-health costs | 147 | -147 | 68 | 90 | -15 |
| Apprenticeship levy | / | / | 180 | / | / |
| Pension auto-enrolment | / | / | 167 | / | / |
| National Insurance contracted-out rate abolished | / | 840 | / | / | / |
| Total Employee Costs | 1,250 | 647 | 1,128 | 541 | 546 |
Cost Pressures (£'000)
| Cost Pressures (£'000) | 2015-16 | 2016-17 | 2017-18 | 2018-19 | 2019-20 |
|---|---|---|---|---|---|
| Non-Pay inflation | 351 | 207 | 209 | 214 | 218 |
| Investment in revenue and capital assets | 486 | 2,113 | / | / | / |
| Collaboration and Efficiency initiatives | 737 | / | / | / | 90 |
| Total Non-Pay Bill Costs | 1,574 | 2,320 | 209 | 214 | 308 |
Income
| Service Income | 2015-16 | 2016-17 | 2017-18 | 2018-19 | 2019-20 |
|---|---|---|---|---|---|
| Additional income from rental of telecom masts | / | -40 | / | / | / |
| Increase in investment income | / | -70 | / | / | / |
| Total Income | 0 | -110 | 0 | 0 | 0 |
Financial Challenge Before Efficiencies
2015-16: 2,824
2016-17: 2,857
2017-18: 1,337
2018-19: 755
2019-20: 854
The majority of the employee cost pressures are beyond the control of the Authority as they are the cost impact of applying various aspects of legislation, such as the changes to national insurance rates as a result of the contracted-out rate being abolished. These additional costs increase the level of savings that the Authority needs to find between now and 2019-20.
The Authority receives little additional income in excess of that provided by Government Grant, business rates or Council Tax. Interest rates are very low so deposits generate small amounts of interest but there has been a slight increase in the income from the rental of aerial masts. The Authority has very few opportunities to generate additional income without incurring additional overhead costs, so more often than not the investment in additional time and money is not sufficient to make it worth pursuing these options. The Authority considers that it is a better use of public funds to focus on providing a quality frontline service to the people of Kent and Medway.