Our current budget
The council’s total expenditure is over £1,287.1m. Income is £526.7m, leaving a net expenditure budget of £760.4m to deliver services.
Overall almost half of the council’s total expenditure is spent on people and skills - employee costs are £501.2m per year.
The budget gap
Over the next three years the gap between our net budget and costs is set to widen.
We can’t continue to deliver services the way we do today.
The facts of the matter
- We need to save £77m by 2017-18. We cannot make this level of savings without having a significant impact on local services and staff numbers.
- Last year’s budget identified £29m in savings, but the gap between spending rates and funding just keeps getting bigger.
- Nearly three quarters of the council’s budget is spent on education and social work so we need to look for savings in all services.
- Since April 2010 the council’s workforce has reduced by 10% and we have 273 fewer managers.
- 83% of our budget comes from the Scottish Government.
- 17% of our budget comes from council tax.
Food for thought
- We have an ageing population which is dramatically increasing demand on home care services and residential care – Fife’s 75 plus population is due to increase by 64.3% by 2024.
The number of children being looked after by the council has increased by 38% since 2006.
Placing a child in care can cost the council up to £200,000 per year depending on the child’s needs and age.
- Fife’s geography means we have 1,484 buildings and service points, including local offices, libraries and community halls, but we don’t have enough money to maintain them all to modern standards.
- We have 19 secondary schools and provide primary and nursery education in over 150 locations. Many buildings date back to the 1950s and 60s and are coming to the end of their design life. Some schools are under-occupied; others are under pressure with increasing pupil numbers.
- Like the rest of the UK, our economy has been hit hard in past years, affecting employment. Just over 35,000 people (15% of Fife’s working age population) receive welfare benefits and youth unemployment is at 9.6% (Scottish average is 7.7%), which is double the rate for adults.
- The introduction of the UK Government’s programme of welfare benefit cuts and reforms is adding new pressure to families across Fife and to council services.
- The council will be a very different organisation in three years’ time. Funding is decreasing for other public and voluntary sector agencies as well and we need to work together to deliver a new kind of public service.