Strategic Plan 2017 TO 2020 - PROVIDING GREAT PRODUCTS & FUN ACTIVITIES FOR OUR CUSTOMERS - Inverclyde Council
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Draft Document
Strategic Plan
2017 TO 2020
PROVIDING GREAT PRODUCTS
& FUN ACTIVITIES FOR OUR CUSTOMERS
STRATEGIC PLAN
5.0
2017 to 2020
2.0
INTRODUCTION
CORPORATE
STRATEGY
TO THE COMPANY
1.0
5.1 Human Resources
6.0
2.1 Mission 5.2 Marketing
Statement 5.3 Information
2.2 Products and Technology
Services
EXECUTIVE 5.4 Facilities
Management
SUMMARY 5.5 Business OPERATIONS
Development
6.1 Health and
5.6 Customer Service
Wellbeing
5.7 Quality
6.2 Community, Halls
Management
and Pitches
4.0
5.8 Health and Safety
3.0
6.3 Fitness Gyms and
Sport Facilities
6.4 Waterfront and
Swimming Pools
MARKET
COMPANY
RESEARCH
DIRECTION
4.1 Economic and
7.0
3.1 Company’s Vision Political Outlook
and Values
4.2 Overview of UK
3.2 Governance and Leisure Market
Structure
4.3 Area Demographics
3.3 Strategic Direction
4.4 Catchment
3.4 Stakeholder
Engagement
Demographics by facility FINANCE
4.5 Drive time maps 10
3.5 Funding minutes by facility 7.1 Financial
3.6 Trust Model 4.6 Consumer Research Overview
3.7 Partnership Working 4.7 Competition 7.2 Financial Strategy
3.8 Planning Process 4.8 Competitive Analysis 7.3 Three Years’
4.9 SWOT Analysis Forecast
4.10 PEST Analysis 7.4 Risks
4.11 Market Opportunities
Building on the success of Inverclyde Leisure’s
last Business Plan which saw the refurbishment of
Ravenscraig Activity Centre, development of low
cost gyms in Inverclyde, reduced the price barrier
to many customers, diversification into new market
places, increased usage of facilities, new branding
and increased marketing of facilities, increased
membership, more swimming and skating lessons,
1.0
increased usage of health related services, the In terms of the
inclusion of parks & pitches and the development Corporate Strategy,
of events within community facilities. IL continues to develop
and improve corporate
Inverclyde Leisure’s strategic plan for the next services with a number of new
three years focuses on “Providing Great Products and creative initiatives, such as the
and Fun Activity for our Customers” whilst development of Human Resources. We
executive
providing value for money, promoting healthier and have secured a provider for employment Law
more active communities and providing a choice of and HR advice and will be embedding a new
imaginative products and services. electronic cloud based HR System to ensure all
records are up to date and to improve efficiency
The company’s vision remains the same, “to be the through less paper process. IL will also be
summary
best in the eyes of customers, employees and our reviewing our appraisal system and developing a
stakeholders”, and we aim to achieve the vision new training programme for our employees
through working with a transparent framework of
core values these include:- Marketing continues to go from strength to
strength with the development of Strategic
support on a monthly basis and a new marketing
• Enthusiasm and promotion calendar. There is a greater
• Being Positive emphasis in the plan on the implementation of
• Being Professional electronic forms of marketing and the targeting
of key demographics through automation of data
• Being Open minded sets. IL will also be developing an exciting new
• Innovative app that brings together third party suppliers
opening up API access for the benefit of our
• Honest customers as well as updating and mobile
enabling website.
Inverclyde Leisure’s strategic direction aims to
retain its customer base and expand its operation.
We continue to develop our Information
Retention deals with our existing customer base
Technology platforms by working with our
aiming to keep our customer for as long as
software providers developing new initiatives
possible in our product portfolio. Expansion seeks
to keep up to date with the latest customer
to develop new products in our current business
trends. This includes: creating customer portals,
and potentially new business. This strategy will see
improving electronic systems for facilities
Inverclyde Leisure in its core market of leisure, fun
management, sports courses, HR, beacons and
activity and health.
access control.
Detailed market research has been carried out.
We plan to do a full review of our facilities
This includes economic and political outlook,
management system and undertake an energy
U.K economic outlook, Scottish economy, local
audit of key facilities starting with the Waterfront
government funding, non-domestic rates, council
to see if there can be any savings identified this
tax, councils’ capital spending and an overview of
will look at building management systems, LED
the U.K Leisure market and although the outlook is
lighting, Boilers, Dehumidifiers, air handling and
uncertain, leisure has seen continual growth over
micro combined heat and power units,
the past few years nationally especially in the low-
cost sector.
In terms of business development, we have
some exciting projects that could see significant
The research section also covers the areas
growth for IL in terms of income these projects
demographics including population, ethnic make-
are in the form of ideas at the moment and will
up and social grades. The catchment maps form
need through investigating in terms of feasibility.
10-minute drive time from facilities and consumer
research and shows a potential decrease in
Customer service continues to be a focus of IL
population over the coming years therefore a need
with a commitment to the WOW! Awards. Over
to attract people from outside of Inverclyde.
the next three years the WOW! Awards work with
organisations across the world, helping them to
The plan includes a detailed SWOT and PEST
engage with their customers in a positive way.
analysis that highlights approaches to the business
They provide IL with the tools to make it easy for
and has helped shape the new objectives to drive
our customers to tell us when we have delivered
the business through the next three years.
great service for them, and then to give positive
recognition to the employees in our organisation
The customer research demonstrated an
that are delivering that great service. The aim of
encouraging improvement on the previous
the WOW! Awards is to be motivational,
business plan with 99.5% of the customers
inspirational, encourage our
surveyed committing on our staff being friendly,
employees to deliver great
helpful and approachable, 98.5% of our customers
customer service at a
committing we were good value for money and
consistently high
86% of our customer scoring Inverclyde Leisure 8
standard.
or above in the net promoter survey.
We will also be entering a three year agreement
with Macmillan to deliver specialist cancer
support in our centres.
Community Halls and pitches aims to further
advance bookings and develop new IL ticketed
promotion calendar to include tribute acts,
comedians, party nights, pantos, shows, local
band challenges, traveling entertainment and
burns suppers to help build stronger foundations
at the halls. Parks and pitches will be continually
reviewed by IL to ensure they are being run
efficiently.
Over the next 3 years we will continue to improve
and develop our Quality Management System Fitness gyms and sports facilities see another
and Health and Safety systems by committing to there year growth potential especially in the
improved external audit scores. It will remain the budget gyms and children’s activities and the
cornerstone for quality at IL with the concept of potential for new opportunities for family activity
the customer and supplier working together for and the expansion of the fitness programme.
mutual benefit.
The Waterfront and swimming Pools see the
The operation team help to drive change in development of the lesson programme for both
the organisation. The team are committed to swimming and skating as well as the increased
delivering high quality leisure and community development of targeted marketing to drive
facilities within Inverclyde. The aim over the customers to our centres.
next few years will be to develop stronger
partnerships, enhance our IL brand, improving Inverclyde Leisure has made a commitment of 2%
activity, diversify products and services, increase cut per year in the current funding agreement but
usage, develop income and deliver quality realises that with the pressure on public funds,
throughout the operation. The operational this will decrease further through the three-year
strategy continues to focus on the delivering period and will work with our partners to achieve
good quality services at all sites and developing the desired outcomes.
key areas of the business.
The forecast has been produced to be
Four areas have some major operational realistic and achievable, it does not take into
improvements. Health and wellbeing aims to consideration capital investment from the
increase the amount of programmed activity and projects that we may undertake as this will be
referrals. IL aim to improve Health and wellbeing managed on a project by project basis.
by:-
There will remain an increased focus and
• Encourage and enable the inactive to be more vigilance in reviewing performance each
active month and necessary action will be carried out
quickly. IL will continuously review its accounts,
• Encourage and enable the active to stay active maximising income through competitive pricing
throughout Life structures and development plans combined with
• Support wellbeing and resilience in a determination manage expenditure effectively
communities through physical activity and
sport Below is the financial summary over the next
three years:-
• Develop physical confidence and competence
from the earliest age
• Improve opportunities to participate progress
and achieve in sport
Year 1 Year 2 Year 3
2017/2018 2018/2019 2019/2020
Income 6645335 6705060 6754311
Expenditure 6642711 6703023 6752704
Net Surplus 2624 2037 1607
A814
Cardross Rd A82
A814
A82
F C A814 Stirling Rd
M Cardross
A813
Invercyde
B A A82
A813 Leisure Facilities
Inverclyde Leisure (IL) is a registered charity, Ashton Rd A814
2.0
A770
a community focused non-profit company I
A814
established in 2001 for the purpose of delivering
A78
G J
A814
Cardross Rd
A814
Stirling Rd
A82
sport, leisure, health and community activities.
A78
H River Clyde
Scottish
Maritime
K
Drumfrochar Rd
Inverkip Rd A78 B2054 Glasgow Rd
E
A78 A814 Milton
A82
IL operates community halls, parks & pitches,
B788 Port
Inverkip Rd Glasgow
A8 Great Western Rd
sports facilities, health and fitness facilities, Auchmountain Rd
L
Greenock Rd
Main Rd
A82
swimming pools, ice facilities and an athletics
A78 A8 M8
Kilmacolm Rd
stadium.
INTRODUCTION
loch Thorn A761
B788
M8 A898
IL works in partnership with Inverclyde Council
Gryfe Reservoir No2
Port Glasgow Rd
(IC) and aims to provide a quality service for M998
M898
its customers, employees and stakeholders by
D
TO THE
Leapmoor B788
Forest A761 M8
delivering high quality facilities and services. Kilmacolm
B788 A786
COMPANY A
B
C
Waterfront Leisure Complex & Fitness Gym Customhouse Way, Greenock, PA15 1EW
Greenock Sports Centre & Fitness Gym Nelson Street, Greenock, PA15 1QH
Battery Park Pavilion Battery Park, Eldon Street, Greenock, PA16 7QG
H
I
J
Port Glasgow Swimming Pool Bay Street, Port Glasgow, PA14 5EB
Ravenscraig Sports Centre Auchmead Road, Greenock, PA16 0JE
Indoor Bowling Club Port Glasgow Road, Greenock, PA15 2UL
D Birkmyre Park Gym Broomknowe Road, Kilmacolm, PA13 4HX K Greenock Town Hall Clyde Square Greenock PA15 1LY
Boglestone Fitness Gym and Boglestone Community Centre Dubbs Place,
E L Port Glasgow Town Hall 35 King Street Port Glasgow PA14 5HD
Port Glasgow, PA14 5UD
F Gourock pool & Gourock Fitness Gym Albert Road Gourock, PA19 1NQ M Gamble Halls 44 Shore Street Gourock PA19 1RG
G Lady Octavia Sports Centre Bridgend Road, Greenock, PA15 2JN
IL currently delivers its operation in the
Inverclyde area with its main centres
shown above:
Inverclyde Leisure
delivering Leisure,
Cultural and Community
activities for our
customers throughout
Inverclyde
Voluntary
6 4 17
managed Community Grass
Community Facilities Pitches
Halls
Leisure
10 Community
3 Athletics
1 3G
5
Facilities Hubs Stadium Pitches
3
Town
Halls
• Investment in new CrossFit facility The directors have the ultimate control of the
company subject to providing and operating
• Investment in new equipment, flooring and
the services in accordance with a specification
decoration of Waterfront Gym
agreed with IC.
• Investment in Waterfront Ice Rink facility
Inverclyde Leisure Limited is a registered Scottish
• Investment in new budget Fitness for Less Charity and is governed by the Office of the
brand for Boglestone Scottish Charity Regulator, universally known
• Upgrade of Kilmacolm Fitness Plus Gym at as OSCR set up under the Charities and Trustee
Birkmyre Park Investment (Scotland) Act 2005. In exchange for
the benefits of charitable status organisations
• Re-modeling of Ravenscraig Sports Centre require to provide public accountability.
that was due to be closed to create a new
budget club and fun activity centre To qualify as a charity an organisation’s purposes
• New Combined Heat and Power Unit (CHP) must be for one or more charitable purposes,
to help reduce management fee must be for public benefit and must not be party
political, nor permit property distribution for
• Upgrading of Gourock Fitness Gym non-charitable purposes nor be subject to
ministerial control.
• Our partners at IC have also funded many
property costs including works at all the
Town Halls, part funding for Ravenscraig and
new ice plant.
IL is around 22% funded by IC, the lowest in
Scotland, under a three-year funding agreement
and has committed to reduce the
management fee by 2% a year for the
next three years. IL will also throughout
• 2016 National WOW! Award for Putting the the three-year period work with IC to
Customer First deliver further savings that may be
required due to increasing pressure
• 2016 UK Active Finalist Spark of Innovation on council funds.
IL has over 1.1 million customer visits per year; • 2015 National Award for Engaging with staff
IL aims to provide a quality
these are made up of 382,624 Dry side visits,
• 2015 UK Active Engaging the Community service for its customers,
110,785 Fitness classes visits, 238,839 Gym visits,
Finalist employees and stakeholders
9,749 Gymnastic visits, 26,695 Ice facility visits,
by delivering high quality
266,362 swimming visits, 54,007 Swimming • 2014 Legend Customer Service Award
facilities and services at
Lesson visits, 12,075 Skate Lessons visits and
• 2013 National Fitness Award for Community affordable prices.
16,581 Community Facilities usage.
Involvement
The company is
Overall the company’s usage has increased by
currently governed
106,000 users from last year, this has been down The company has also invested heavily into by 11 members of
to the growth in products and the services we the products and services that we offer our the Board who
offer as a company. customers, some of which are listed:- also serve as
directors.
IL has been recognised in the last few years for
the high standard of it operations and has been
honoured with a number of highly prestigious
awards including:-
5%
1%
2%
34%
24%
DRY SIDE
GYM
ICE
SWIMMING LESSONS
2% COMMUNITY FACILITIES
10%
1% 21% FITNESS CLASSES
GYMNASTICS
SWIMMING
PATRONAGE SKATING
Below are IL’s charitable aims:- 2.2 PRODUCTS AND
SERVICES
• To provide facilities for recreational, sporting,
cultural or social activities for the community IL has managed to expand and
grown successfully based upon
• To encourage and to promote for the purposes a strategy of delivering a wide
of social welfare, information on nutrition, array of community focused
health, exercise and healthy lifestyle leisure along with cultural
IL’s Key Strengths include:- activities inclusive for all:
• Staff commitment • At value for money
• Community involvement prices
• Presentation of facilities • Promoting healthier
and more active
• Customer loyalty communities
• Range of products and services • Providing a choice
and incentives for
all to participate
2.1 MISSION STATEMENT
through
imaginative
The company’s mission is to provide great
and inclusive
products and fun activity for our customers. The
programming
mission enables the company to encourage our
customers to partake in the activities we have on
offer whether that be health or fitness related, This strategy has
entertainment, children’s activities or educational had the effect of improving
programmes and enables us to implement new the quality of life for our communities, in
products and services over the next three years. addition to helping to deliver our partners health
and social agendas and community strategies.
Providing Great Products & Fun
IL offers a wide range of products and services
Activity for our Customers listed below:-
WEDDINGS COMMUNITY EVENTS BUSINESS FUNCTIONS COMMUNITY EVENTS
CHILDREN’S ACTIVITIES EXERCISE REFERRALS LOCAL AND NATIONAL ELECTIONS EXERCISE REFERRALS
CARDIAC REHAB GROUP FITNESS CLASSES FITNESS GYMS GROUP FITNESS CLASSES
ICE SKATING LESSONS CURLING ICE SKATING CURLING
FOOTBALL COACHING SWIMMING LESSONS FUN SWIMS SWIMMING LESSONS
VENDING PERSONAL TRAINING WEIGHT MANAGEMENT PERSONAL TRAINING
COSTUMES, GOGGLES AND SPORTS GOODS FREE WEIGHTS GYM SAUNA AND STEAM ROOMS FREE WEIGHTS GYM
MEETING ROOM HIRE TRAINING ROOMS BINGO TRAINING ROOMS
OUTDOOR SWIMMING POOL INFLATABLE SESSIONS PARTY NIGHTS INFLATABLE SESSIONS
TECHNICAL STAGE PRODUCTION TRIATHLON FUN RUN TRIATHLON
CLUB VENUE HIRE TRAINING COURSES CHARITY EVENTS TRAINING COURSES
PITCH BOOKINGS X-HEIGHT CLIMBING WATER SLIDES AND FUN POOL X-HEIGHT CLIMBING
BOWLING CROSSFIT BEAUTICIAN ROOMS CROSSFIT
LOW COST GYMS FREE CAR PARKING PREMIER GYMS FREE CAR PARKING
SQUASH FAKE FESTIVALS PLAY SCHEMES FAKE FESTIVALS
RUNNING CLUBS FUNCTIONAL TRAINING BOOT CAMPS FUNCTIONAL TRAINING
3.1 COMPANY’S MISSION,
VISION AND VALUES
IL is a successful company well regarded by its
stakeholders, customers, and users. It is well
managed, innovative and resourceful allowing it
to prosper and flourish.
3.2
3.0
The aims of the vision and values are to provide GOVERNANCE
a co-ordinated strategic framework which AND STRUCTURE
is aligned throughout the company through
decision making, the management of resources, Good governance is
communications, recruitment, training, and to essential for the success of any
develop a shared sense of purpose among all organisation. Directors of Boards play
stakeholders. By providing something that can be a vital role in serving their communities by
COMPANY
easily memorised and understood. ensuring the proper procedures and policies
are in place to manage their charity’s resources
Employees at all levels can understand the ethos effectively. They provide long-term vision and
and beliefs that drive IL, recognise its future protect their charity’s reputation and values’.
direction and identify how they can play their IL is a company limited by guarantee and a
DIRECTION
part in delivering that future vision. registered charity governed by an unpaid Board
of Directors whom are ultimately responsible for
The vision statement remains the same for the charity, assets, and activities. The Directors’
the next three years’ business plan. Our focus role is to set the strategic direction, monitor the
is to be the best in the eyes of our customers delivery of our objectives and uphold our values.
putting greater emphasis on customer care
and feedback, developing our people in line The Board of Directors therefore, whilst having
with achieving more challenging objectives and overall responsibility for everything that IL does,
working with our partners and stakeholders for has delegated the management of the Company
the common good. including all day-to-day decision making and
operational matters to the Chief Executive to
IL recognises that its core activities offer a range ensure that the Company is effectively managed.
of exciting and valuable opportunities for both
individuals and the community. The members of the Executive Management
Team (EMT) have individual legal duties and
responsibilities, which make them accountable
for their actions and for all employees within the
organisation.
INVERCLYDE
LEISURE’S VISION: Within IL, there are a wide range of stakeholders,
who include: our employees, local authority
“Be the best in the partners, local community groups, health,
eyes of our customers, wellness, sports, cultural and other statutory
bodies, suppliers, creditors, customers, national
employees and our governing bodies and the community at large.
stakeholders”
To ensure that it remains at the forefront of the
leisure industry and within the communities it
serves, IL is represented on a wide range of local
IL’S VALUES community and vocational groups.
IL seeks to achieve its vision and deliver its
business plan, by working within a transparent GOVERNANCE
framework of core values. These values are very Good governance is essential for the success of
important to us and underpin everything we do any organisation. Directors set the long-term
as a company. vision through the three-year plan and protect
the reputation and values of their organisations
IL’s Values are:- by providing strong leadership. The board
provides good governance and leadership by:-
• Understanding their role
• Ensuring delivery of organisational purpose
Being
Innovative Honest • Working effectively both as individuals and as
Positive a team
• Exercising effective control
• Behaving with integrity
• Being open and accountable
Being Being
Enthusiasm Professional Open
minded
organisational and divisional operations are managed
on a day-to-day basis. IL’s EMT consists of:-
• Kieron Vango (Chief Executive)
• David McCorkindale (Head of Leisure and
Community Facilities)
• Audrey Lavelle (Finance Manager)
The performance of the Executive and Senior
IL’S BOARD teams sets the standards for the whole company
OF DIRECTORS by cascading information, positive enthusiasm,
IL’s Board of Directors commitment and professional standards to all areas,
comprises of 11 Directors whilst at the same time attentively receiving valuable
who are also company ‘front-line’ feedback from across the organisation.
members
The EMT works closely with Directors at Board
• Chairman Bill Hawthorne who is one Meetings to ensure a seamless collective approach,
of two co-opted members from the local which forms an integral part of the organisation,
business community contributing to its overall success.
• IC has five nominated members
SENIOR MANAGEMENT TEAM
• The Trade Unions have one nominated member The EMT is supported and assisted by four Operations
Managers, professionals within their own areas of
• Inverclyde Local Sports Council have one nominated
expertise, with a range of responsibilities whilst
member
delivering the highest levels of operational delivery and
• The employees of the company have two nominated performance across the company. The 4 Operations
members Managers are as follows:- Keiron Vango
Chief Executive
• Jim Lyon (Business Development & Support Officer
THE BOARD OF DIRECTORS Operations Manager)
The Board of Directors ensure that the company does
not breach any of the requirements or rules set out in its • Stuart Boyle (Waterfront Service & Quality
Memorandum & Articles of Association and remains true to Operations Manager)
the charitable purpose.
• Ian Dyer
(Community
EXECUTIVE MANAGEMENT TEAM
Facilities David
The EMT report to the board 6 times a year and give full
Operations
updates on areas of the agreed strategy being worked on McCorkindale Audrey Lavelle
Manager)
and put forward new initiatives for discussion. Head of Leisure Finance
IL’s EMT have legal corporate responsibilities (financial, • Andrew and
health & safety and employment amongst others) to Hetherington
Manager
ensure the company is compliant, driven and a going (Fitness Gyms &
Communities
concern. The EMT must develop an appropriate plan Sports Facilities
and ensure that, once endorsed by the Board and IC, Operations
the policies and plans are implemented and that the Manager)
James McColgan Math Campbell
Councillor Jim Clocherty Ronnie Ahlfeld Jim MacLeod Ian Dyer Stuart Boyle
Sturgess
Vice Chairman Councillor Councillor Councillor Operations Manager Operations Manager,
Councillor
Community Waterfront
Lesley Hallam
Facilities Service and Quality
PA & Office
Manager
Bill Hawthorne
Business Inverclyde Leisure Board
Community Structure Members
IL Chairman
Andrew Jim Lyon
Hetherington Operations Manager
Operations Manager Business
Fitness Gyms & Development & KEY
Chris Jewell Andrew Stewart Sports Support Executive Management Team
Jim Lyon Robin Taggart Facilities
Business Hetherington Sutherland
Staff Member Union Member Senior Management Team
Community Staff Member Sport Inverclyde
Head Office
activity developments
• Increase marketing of products and services in
key areas
RELATIVE MARKET SHARE
• Look at new facilities to develop
INVERCLYDE COUNCIL • Develop current products and services such STAR
IL has a close working relationship with IC where as swimming lessons, dry side courses, fitness
we discuss on a monthly basis areas of the business memberships, personal and group training, ice Skate School QUESTION MARK
plan being worked on, any areas of risk regarding skating lesson and town hall events Swim School
HIGH IL Fitness For Less Gourock Outdoor Pool
finance or operations in line with IC’s Funding • Become more focused on data marketing,
Agreement. IL CrossFit Plus Community Events
e-marketing, target marketing and social
marketing X-HEIGHT: Adventure Climb Community Town Halls
3.3 STRATEGIC DIRECTION Soft Play Outdoor Parks & Pitches
• Development of a mixed portfolio of funding Free Weights Gym
Birthday Presents
RETENTION AND EXPANSION • Work with our partners at IC for future growth
Retention deals with our existing customer base
IL Cafe
opportunities
aiming to keep our customer for as long as possible MARKET
in our product portfolio. Expansion seeks to GROWTH
develop new products in our current business and Achieving our strategy over the next 3 years will
potentially new business outside of Inverclyde. depend upon the effective management of our CASH COW
resources. This document outlines IL’s strategy
moving forward and demonstrates how we will IL Fitness Plus DOG
This strategy will see IL in its core market of leisure
and fun activity. deploy those resources to ensure that the company Fitness Gyms Voluntary Community Halls
will continue to develop as a successful business. IL Group Fitness Indoor Bowling Centre
RETENTION LOW IL Active Swim Basketball
• Increase our customer retention management BCG MATRIX Weddings Squash
(CRM) Below are current products compared against BCG Curling Badminton
Matrix
• Train our employees to be more customer Indoor Football
focused and add value to our customers’ Cash Cow
Health Suite
experience A cash cow product has High Market Share with
• Reward our employees for doing things right Steady Growth, it can have high returns.
HIGH LOW
• Embracing new technologies and innovations Dogs
• Add value to products and services A Dog is a product that has Low share of market
with low growth & little returns. Can show decline. 3.4 STAKEHOLDER ENGAGEMENT
• Retain customer loyalty through enhancing
member benefits and relationships and Question Marks IL creates value to our customers, partners and stakeholders
leveraging our existing core competencies, A question mark product has High potential return by creating better ways of working, continually improving all
resources and capabilities capabilities with possible investment, can currently areas of the business, innovating and finding new and better
have low market share and may have uncertain ways of doing things.
• Create more seamless customer journeys
returns. There can be external factors such as
• Invest in the latest technology such as apps weather, time of the year etc. to consider.
• Increase usage of existing customers by directly Stars
HOW WE CREATE VALUE FOR OUR STAKEHOLDERS
enhancing the customer experience through A star product has high market share with high
improving standards of delivery and growth potential. Can have higher initial costs with CUSTOMERS LOCAL AUTHORITY PARTNERS,
quality operations investment but should gain strong medium to long • By continuing to listen to, and SPORTS AND COMMUNITY
term returns. responding to their needs. GROUPS
• Embrace the strategy of
• By providing quality services that • By continuing to listen to, and
continuous improvement continue to improve.
in our operations through responding to their needs.
• By delivering value for money. • By providing quality services
the enhancement of a • By giving opportunity to all that continue to improve.
Quality Management System regardless of
S
• By delivering value for money.
ER
PA
(QMS), site-specific Service circumstances. • By giving opportunity to all
M
R
Improvement Strategies (SIS)
O
• By giving a safe and enjoyable
TN
regardless of circumstances.
ST
and site business plans experience every visit.
ER
• By giving a safe and enjoyable
U
C
S
experience every visit.
• Work well with stakeholders
ensuring people have the
information they need CONTINUOUS IMPROVEMENT OUR TEAMS
B AY KIN
• By continuing to improve in all • By effectively engaging with our
ET S
E
W OR
PL
areas of the business. teams
W
EXPANSION
TE OF G
O
• By innovating and finding new and • By becoming an employer of
R
PE
• Development of existing
better ways of doing things. choice.
products and facilities
• By being environmentally and socially • By being a great place to work.
• Looking at new market responsible. • By involving, investing in, and
places such as • By listening to all of our stakeholders developing our people.
adventure and and acting on their feedback. • By ensuring that we have
the teams in place to deliver
continuous improvement• A recognition that our community and public 3.8 PLANNING PROCESS
work contributes to society’s betterment
The planning process helps IL to understand
• Access to a range of funding opportunities
where we are now and how we’ve got there. It
and grants including donations, legacies and
allows us to move productively forward with
the use of Gift Aid
a sense of direction, purpose and urgency. It
• An assurance for the public and a high level of translates the Board’s strategic direction and
public trust that we are being supervised and vision into tangible and achievable objectives it
monitored also:-
• An ability to react quickly to change • Focuses on key issues and processes
• Increases motivation and communication
3.7 PARTNERSHIP WORKING throughout the company
At IL, we realise that formal contracts don’t make • Helps us to understand who our customers are
successful relationships, people do. It requires and how we can continue to meet their needs
a willingness to create a foundation on which
• Ensures the optimum and efficient
trust, loyalty, and commitment can be built. Every
management of resources to carry out specific
relationship is unique and must be treated as
objectives
special. IL believes that you get what you put into
the relationship. • Helps us work more closely with our client
IL will work very hard to structure win-win partners
relationships and work for the common good of
both organisations rather than each trying to gain
This enables IL to be:-
the upper hand.
• Flexible – adaptable to meet changing needs
IL works in partnership with its many suppliers,
funders and professional organisations • Responsive – taking advantage of market and
developing relationships and working for the win- environmental conditions
3.6 THE TRUST MODEL
win and mutual benefit of all.
• Co-ordinated – all stakeholders working
Key benefits of the trust model include:- together
• The development of a shared vision and joint • Creative and Innovative – in what we are doing
3.5 FUNDING objectives and how we are communicating to customers,
clients and employees
IL operates with the aid of a three-year Funding • Reducing the overall cost of the service whilst
Agreement from IC for some deficit funded improving service delivery and driving facility You lose You Win • Challenging – continually
facilities. This currently sits around 22% of our improvement programmes
stretching and stimulating
income at 1,489 million, the rest of our income is • NNDR savings Win-Lose Win-Win
made up from products and services supplied to • Focused – moving forwards
our customers. • Increased community involvement towards a clear, defined and
Partnership: Partnership: understandable future based
• The removal of service from the local authority
IL has made a commitment to cut 2% per year in
regime and the constraints of local authority Unsustainable Sustainable upon our core strengths and
I Win
the current Funding Agreement but realises that competencies
funding
with the pressure on public funds this may well
decrease further through the three-year period • An ability to react quickly to market forces Competition: Competition:
and we will work with our partners to achieve the Zero-sum, Collaborative Market
• Less bureaucracy and increased speed of
desired outcomes. Closed Market Expansion
decision making
As part of the Funding Agreement, IC must • Some savings in value added tax (VAT)
approve IL’s Business Plan. The business includes
indicative non-binding budgets. Any draft • A comfort factor from both Local Authorities
Business Plan approved will become effective at & the public
the commencement of the next business plan • There are no shareholders or dividends to be
period. paid, as surpluses are reinvested into facilities, Partnership:
Partnership:
adding value rather than building share value Destructive
Each plan will identify the sum that IC will pay Unsustainable
I lose
for the benefit of their communities
to IL for the provision of the services over the
period commencing on the date the Business • A team that believes they are working for a Competition: Market
Competition: Self-
Plan becomes effective. This sum shall be the charity with principles Shrinkage
Service Payment for that period. defeating
• Collaboration and sharing of best practice
through Sporta and other local operator
In the funding agreement, it is agreed that the groups
Council may add any additional properties/ Lose-Lose Lose-Win
locations to the service specification and that IL
shall undertake all the obligations and conditions Benefits to IL as a charity include:-
contained in the service specification in respect
of any new location. • Financial benefits in the form of further
savings in NNDR and some taxation reliefs and
exemptionsIL has been a registered charity (Scottish Charity
Number: SC 032161) since 14 September, 2001.
Its stated purposes are:-
• The advancement of health
• The advancement of public participation in
sport
• Persons
4.0
Its stated beneficiaries are:- aged 60
and over make
• Children/young people up 26.3 per cent of
• Older people Inverclyde
• People with disabilities or health problems • This is larger than Scotland
where 24.2 per cent are aged 60 and
• No specific group
MARKET
over
• The benefit of the community • Since 1989, Inverclyde’s total population has
fallen overall
Its stated objects are:-
a. To provide or assist in the provision of facilities
RESEARCH
for recreational, sporting, cultural or social C. With the following population projection
activities (such facilities being provided from changes:-
before
time to time being hereinafter referred to as
• By 2039 the population of Inverclyde is clarity
“the Facilities”) for the general public in, or
projected to be 70,271 emerges on
in connection with, the Local Authority area
future UK-EU
of Inverclyde as defined in Schedule 1 to the • A decrease of 12.0 percent compared to the trading arrangements.
Local Government etc. (Scotland) Act 1994 population in 2014
(such Local Authority area being referred
• The population of Scotland is projected to In our main scenario, we now
hereafter to as “Inverclyde”) and other parts of
increase by 7.5 per cent between 2014 and project UK growth to slow to
Scotland in the interests of social welfare and
2039 around 1.6% in 2016 and 0.6% in 2017,
education;
largely due to the increased political and
• Over the 25-year period, the age group that economic uncertainty following the ‘Brexit’ vote.
b. To encourage and promote for the purposes of is projected to increase the most in size in The UK would, however, narrowly avoid a
social welfare, information on nutrition, health Inverclyde is the 75+ age group recession in this main scenario.
matters and exercise as will promote a healthy
lifestyle for all. • This is the same for Scotland as a whole
There are particularly large uncertainties around
• The population aged under 16 in Inverclyde is any such projections after the Brexit vote. We
4.1 ECONOMIC AND POLITICAL OUTLOOK
projected to decline by 16% over the 25 year have therefore also considered alternative
period scenarios in which UK growth in 2017 could vary
The economic and political outlook is framed
from around -1% if downside risks materialise to
in the context of IL – both as a Company (SC
D. As a partner to - and principal provider around 1.5% if there is an early recovery.
Company No: SC223197) and as a Charity (SC
of sports and leisure opportunities for
Charity No: SC032161) registered with the
the community on behalf of IC, within the We expect the Bank of England to loosen
Scottish Charity Regulator – trading:
Council’s:- monetary policy over the summer to support
the economy through this period of uncertainty,
A. Entirely in Inverclyde:-
• Leisure Management Contract & associated while public borrowing is allowed to rise to take
• A geographical area of 160 km2 (61.78 mi2)
property Leases the strain of slower growth.
• One of 32 Scottish Unitary Authorities
• Commissioning Strategy 2012-2022 The main reason for the slowdown will be a
• One of the smallest in terms of the area (29th) decline in business investment, particularly from
• Active Living Strategy
and population (27th) out of the 32 authorities overseas in areas like commercial property. This
• Making Well-Being Matter Delivery Plan is being driven by political instability in the short
• Comprising of six wards:
• Healthy Child Programme term, as well as uncertainty about the UK’s future
o West trading relationships with the EU in the longer
o North UK GROWTH (“UK ECONOMIC OUTLOOK”; term.
PWC; JULY 2016)
o South UK economic growth had already slowed from Consumer spending growth is projected to hold
around 3% in 2014 to around 2% before the EU up better, but will still slow from previous strong
o East Central
referendum due to slower global growth, but rates, dropping to around 1.3% in 2017 in our main
o East the vote to leave the EU is likely to lead to a scenario. This reflects the impact of a weaker
significant further slowdown. pound in pushing up import prices and squeezing
o South West
the real spending power of households, as well
The largest short-term effect of the vote to leave as lower consumer confidence levels and slower
B. To serve a (2015: National Records of
the EU is likely to be on investment growth, jobs growth.
Scotland) population of 79,500 people:-
which we now expect to be pushed into negative
• A decrease of 0.5 per cent from 79,890 in territory in 2016 and 2017. This reflects major Business and financial services sector growth
2014 projects being deferred or even cancelled due to will slow but should remain positive in 2016-17.
uncertainties surrounding Brexit, particularly by But construction companies and capital goods
• Accounting for 1.5 per cent of the total manufacturers will suffer from lower investment
population of Scotland foreign investors in commercial property and
in sectors needing guaranteed access levels, although some manufacturing exporters
• 16.7 per cent of the population are aged 16 to to the EU single market. These will benefit from the weaker pound.
29 years uncertainty effects should
fade eventually, but
• This is smaller than Scotland where 18.2 per
it will take
cent are aged 16 to 29 years
timelittle assessment of the possible different impacts points toward businesses and the
by sector. wider economy being in ‘wait and
see’ mode with the actions of the
In assessing the possible impact of Brexit on the UK Government and the Bank of
Scottish economy it is important to separate out England averting any immediate
two key phases – 1) the short-term and 2) the large negative shock. However,
long-term. concern about the possible
implications over the months
The Fraser of Allander Institute (FAI) was ahead clearly remains.
commissioned by the Scottish Parliament’s
European and External Relations Committee to 2) LONG-TERM IMPACTS
model the possible economic implications of According to first principles,
Brexit for Scotland. the likely long-term
impacts of leaving the EU
Over the long term (i.e. 10+ years), most are known with a relative
economists predict that the decision to leave degree of confidence,
the EU will – all else remaining equal – have a albeit the exact
negative impact on trade, labour mobility and quantitative effects
investment. There remains debate however, over are uncertain. Trade
the scale of the impact – see for example, Ebell opens up businesses
& Warren (2016), HM Treasury (2016a, b), Centre to new opportunities
for Economic Policy (2016), PWC (2016) and for exporting and
Oxford Economics (2016). Capital Economics investment. Labour
(2016) provides a more positive outlook. To date mobility boosts
however, studies have concentrated on the UK as labour supply
a whole. At the same time, they have tended to helping to increase
focus on the aggregate economic impact, with productivity and
little assessment of the possible different impacts address demographic
by sector. challenges in countries – such
as Scotland – with an ageing population.
In assessing the possible impact of Brexit on the Competition helps efficiency, product
Scottish economy it is important to separate out specialisation and growth. And financial
two key phases – 1) the short-term and 2) the integration deepens and broaden capital
long-term. markets. All of these – on balance – are expected
to be impacted in one way or another by Clearly the
1) SHORT-TERM IMPACTS becoming less integrated with the EU. particular issues
At the UK level, the decision to leave the EU for individual
was clear. However, the exact terms of exit are Whether or not the decision to leave the EU sectors will vary and
unknown and are likely to remain so for the leads to a permanent reduction in the rate of not just be determined
foreseeable future. Consequently, the referendum growth or the level of output is unclear. On the by ‘size’ but also by
result has ushered in a period of heightened one hand, once the economy adjusts to life sensitivity to changes
economic uncertainty and reduced confidence. outside the EU, output could simply be a broadly in competitiveness, due
In response, businesses and households may constant step below the level it otherwise would to any real exchange rate
postpone spending and investment. have been in each and every year. There is the depreciation and a relative fall
potential however, for Brexit to have a more in real wages, and the extent to
Assessing the impact of Brexit But we should be wary of expecting to see any damaging impact if it were to confine both which non-tariff barriers, customs
on the Scottish Economy (“Long immediate change in the headline economic data Scotland and the UK to a lower long-term growth controls – and in certain scenarios
Term Economic Implications of for a few months. Most businesses will not – and rate (perhaps via a permanent hit to productivity – tariffs will play a particular role in
Brexit - A Report for the Scottish cannot – change their plans overnight and many growth). their sector.
Parliament”; The University of will await greater clarity over the likely outcome
Strathclyde: October 2016) of any negotiated settlement before responding. The Scottish Government publishes Export SCOTLAND’S BUDGET
For the time being, Scotland and the UK remain Statistics Scotland each year – a National Many commentators conclude that
The Fraser of Allander Institute (FAI) was within the EU so in terms of trade, regulation and Statistics publication providing estimates of Scotland’s budget faces a challenging and
commissioned by the Scottish Parliament’s free movement nothing has changed thus far. Scotland’s international exports and exports to uncertain outlook over the course of this
European and External Relations Committee Policymakers can intervene to help mitigate the rest of the UK. parliament. With the uncertainty of Brexit,
to model the possible economic implications both the uncertainty itself – for example, by a weakening UK fiscal position, ongoing UK
of Brexit for Scotland. providing reassurance around long-term trading These statistics are helpful in identifying the welfare reform, and a fragile Scottish economy,
relationships – and providing temporary support sectors and industries that are most likely to the implementation of Scotland’s new fiscal
Over the long term (i.e. 10+ years), most to the economy to help offset any negative be directly exposed to any changing trade powers over the next few years could not have
economists predict that the decision to leave short-term impacts. relationship with the EU. By rank, many of the come at a more challenging time.
the EU will – all else remaining equal – have a largest sectors are in manufacturing – including
negative impact on trade, labour mobility and After an initial period of political instability, Food & Drink – but Scotland also has key exports Outlook for the Scottish Budget: 2016-17 to
investment. There remains debate however, over the new UK Government has – at least for the in services, particularly those tied to professions 2020-21 (“Scotland’s Budget – 2016” Fraser
the scale of the impact – see for example, Ebell time being – brought a degree of relative such as legal services, R&D activities, education, of Allander Institute; University of Strathclyde
& Warren (2016), HM Treasury (2016a, b), Centre calm back to the political environment. At IT and finance. Business School: September 2016)
for Economic Policy (2016), PWC (2016) and the same time, the Bank of England has
Oxford Economics (2016). Capital Economics responded with a further cut in interest Many of these sectors are likely to be the ones The Scottish budget has faced unprecedented
(2016) provides a more positive outlook. To date rates, increased Quantitative Easing and where any immediate interest in potential policy cuts since 2010. This year, Scotland’s resource
however, studies have concentrated on the UK as launched a new Term Funding Scheme responses and/or ensuring that their interests are budget is around 5% lower in real terms than
a whole. At the same time, they have tended to to ensure that interest rate cuts are represented in any trade negotiations should be it was in 2010-11. Capital spending has been hit
focus on the aggregate economic impact, with passed on to businesses. targeted. particularly hard, down 12% in real terms since
2010-11.
Most of the emerging evidenceThe outlook looks just as – if not more – reform of public services in Scotland.
tax powers, the Scottish Government may have
challenging. The new Chancellor has indicated
to prepare for cuts of up to six per cent – or up to
that he is prepared to ‘reset’ UK fiscal policy. It childcare, “While the challenge falls on the Finance Secretary,
£1.6 billion – over the course of the parliamentary
would be wrong however, to assume that this other critics of the forecast cuts in unprotected public
term.
means an immediate end to fiscal consolidation. ‘unprotected’ public services will services will have to point out where – with a
With a weaker economic outlook and rising have to take up the slack. These unprotected highly constrained overall funding settlement –
Even under more optimistic scenarios, the
inflation putting pressure on the welfare budget, budgets could face an average cut of up to their priorities for cuts would be and what taxes
Scottish budget is still projected to fall in real
further departmental spending cuts are now even seventeen percent over the next four years. Local they would increase.”
terms over the course of the parliament. And
more likely over the medium term. Government grant could be cut by around £1
with Scottish Government plans in place to
billion by 2020-21 ‘The report highlights that:
deliver major policy priorities, the Fraser of
Real terms cuts to the Scottish block grant are
Allander report warns difficult choices for
likely to continue into the next decade, extending The Scottish Government should prepare for • The Scottish budget has faced unprecedented
unprotected budgets – including the grant to
the period of fiscal consolidation to over 10 years. further real-term cuts of up to £1.6 billion in its cuts since 2010. In 2016-17, Scotland’s resource
local authorities - will be required.
Under the complex arrangement for determining resource budget by 2020-21, according to a budget is 5% lower in real terms than 2010-11 as
the Scottish Government’s budget under the major publication launched today (Tuesday 13 a result of cuts to Scotland’s block grant from
Professor Graeme Roy, Director of the University
new fiscal framework, what will be crucial September 2016).This new annual report, written Westminster. Capital has been hit particularly
of Strathclyde’s Fraser of Allander Institute, said:
is how the growth in Scottish tax receipts per by the University of Strathclyde’s Fraser of hard, down 12% in real terms since 2010-11.
head compares to the growth in equivalent tax Allander Institute, sets out a range of scenarios
“The Scottish Government has set out plans to
revenues per head in the rest of the UK. for Scotland’s budget over the next four years, • The outlook looks just as – if not more
deliver ambitious new policy priorities, including
and the options available to the Scottish Finance challenging. Real terms cuts to public spending
real terms increases in the health budget, a
The balance of evidence suggests that Secretary. are likely to continue into the next decade,
doubling of childcare provision, and protection of
Scotland will do well to match UK economic taking the process of consolidation to over
the police budget.
performance at least in the short-term. The Even before the uncertainty caused by Brexit, 10 years from
Scottish Government has outlined a number the Scottish Government’s budget was when it started
“Delivering on these will, however, require a
of tax increases and tax cuts. On balance, our forecast to fall by just over 3 percent in back in 2010,
tough re-prioritisation in other areas.
assessment is that these will increase the real terms by 2020-21 as result of the even after efforts
Scottish budget, albeit by a modest UK Government’s ongoing fiscal by the Scottish
“As an area of unprotected spend, the grant to
amount. Overall the uplift is consolidation. But the report Government to
local government could be cut by around £1
less than 1% of the total warns that under a worst increase revenues
billion on a like-for-like basis by 2020-21. Without
budget. Even before case scenario for the from its new
radical reform, cuts to services are likely to
the EU referendum block grant and devolved tax
become increasingly apparent in the years ahead,
outcome, the revenues from powers.
providing a controversial backdrop for next year’s
Scottish Scotland’s
local elections.”
budget new • Overall, the
Scottish
The report comes as the Scottish Parliament’s
Government
fiscal responsibilities are expanding rapidly.
should prepare for
Around 40% of devolved expenditure will now
possible further
be funded by tax revenues collected in Scotland,
real-terms cuts
a figure that will rise to 50% once half of VAT
of 6% - or up to
revenues are assigned.
£1.6 billion – in its
resource budget
Scotland’s economic performance – and more
by 2020-21. To put
particularly, Scotland’s relative performance
this in context, this
compared to the UK – will have a much greater
is more than the
bearing on the spending plans of Holyrood than
was entire Finance
ever before.
facing and
real terms cuts
If Scotland can grow its economy more quickly
over the next few
than the rest of the UK, then it will now retain a
years driven largely
share of the revenues that this generates. But if
by the plans set out the
it grows more slowly, then it will bear the risk of
previous Chancellor George
lower revenues.
Osborne. Our new findings suggest
that the Scottish budget could be cut by
The Scottish Government will also have the
between 3% – 4% in real terms by 2020-21
opportunity to set different tax rates and
and up to 6% – around £1.6 billion – under a worst
allowances within devolved taxes to raise or
case scenario.
lower revenues and to determine spending on
new devolved benefits.
To put this in context, cuts of that scale are more
than the entire budgets for the Finance and
Professor Roy continued: “Brexit uncertainty, a
Economy; Fair Work, Skills and Training; Culture Economy;
weakening UK fiscal position, ongoing UK welfare
and External Affairs; and Rural Affairs, Food and Fair Work,
reform, and a fragile Scottish economy, means
Environment portfolios combined. Skills and Training;
that the devolution of powers over tax and
Culture and External
social security could not have come at a more
Major fiscal challenge for Scottish Government Affairs; and Rural Affairs,
challenging time.
over next Parliament - cuts of up to 17% in some Food and Environment
public services. Scotland’s first major pre-budget portfolios combined.
“The combination of a weakening in the
analysis highlights major fiscal challenges ahead.
outlook for the UK public finances impacting on
Fraser of Allander Institute warns of possible • These real-terms cuts come alongside
Scotland’s block grant, a challenging outlook for
real-term cuts of up to six percent – or around a number of high profile new spending
devolved revenues, and a series of significant
£1.6 billion – to the Scottish Government’s commitments. The government plans to
spending priorities – particularly in health and the
resource budget given the government’s major increase health spending by £500 million
planned transformation in childcare – will require
commitments in areas such as health and more than inflation by the end of parliament.
a substantial re-prioritisation of spend andIt has also committed to maintain real terms confirmed that additional funding for the Scottish in Scotland. The settlement typically takes into
spending on police, and has a flagship policy Attainment Fund will bypass local authorities and account the Scottish Government’s total resource
to double the provision of free child care. be allocated direct to schools. Tensions remain budget (in the past, COSLA has sought to
therefore in two areas: disagreement over the maintain local government revenue as a share of
• Delivering these commitments will require a scale of the funding squeeze on councils; and total spending), and any policy commitments the
serious re-prioritisation of spend. Unprotected increasing concerns about the extent to which Scottish Government expects local government
areas of the budget will face average real conditions attached to funding settlements to to deliver.
terms cuts over the period to 2020-21 of deliver ‘national’ priorities impinge on councils’
between 10% - 17% (2.6%-4.5% annually), policy autonomy. What is the
depending on the size of the Scottish block outlook for the
grant and the revenues from Scotland’s new The outlook for local government over local authority
devolved taxes. the parliament looks just as challenging, if revenue grant childcare commitment are rolled into the revenue
not more so. As outlined above, once the in 2017-18 and grant, then the forecast for the local government
Scottish Government’s policy commitments beyond? revenue is a real terms cut of around 7-8%
• Local government will likely be a key focal are considered, unprotected areas will face between 2016-17 and 2020-21.
point. As an area of unprotected spend, the significant real terms cuts. Councils are part of Taking the
grant to local government could be cut by this ‘unprotected’ element. Having faced real scenario of NON-DOMESTIC RATES
around £1 billion on a like-for-like basis by terms cuts since 2010-11 of around 11% on a extended NDR are set by the Scottish Government,
2020-21 - with increases in business rate and like-for-like basis, without reform – either within fiscal collected by local government and paid into
council tax income only providing partial councils or more widely – the room to manoeuvre consolidation the Scottish Government’s NDR ‘pool’. They are
protection. is limited. set out then distributed to local authorities. The Scottish
above, we Government guarantees to local government
LOCAL GOVERNMENT Yet it is likely that a number of the Scottish have already the combined general revenue grant and the
Local government faced a particularly Government’s key policy pledges will need to be seen that the distributable NDR income figure.
challenging settlement in 2016-17. With the delivered in whole or in part by councils. With outlook for
Scottish resource budget falling by 1.5% in elections in 2017, local government resourcing will ‘unprotected’ In recent years, NDR income has risen in real terms
real terms, combined with spending on health come under the spotlight. For these reasons, we parts of the as a result of increases in the tax rate and growth
increasing above inflation, large cuts were focus attention in this section on issues around Scottish of the tax base (the number of properties on
inevitable in other areas. In the end, the revenue local government finance. budget is of which the tax is levied). At the same time, however,
grant to councils was cut by around 5% in real real terms the Scottish Government has expanded the
terms between 2015-16 and 2016-17. Of course, Local government resource spending is a cuts of 13-16% availability of various relief schemes – including the
the cut to local government could be interpreted function of: over the Small Business Bonus (which is estimated to cost
as being substantially less if the £250 million around £170 million per annum).
funding for Health and Social Care partnerships • The revenue grant from the Scottish
announced in the Budget is included in the Government (around 40% of resource The medium-term outlook for NDR income is
calculation. However, this was allocated to the income); somewhat uncertain given the Barclay Review of
integrated Health and Social Care Boards via the Business Rates. The Scottish Government has also
• Revenues from Council Tax (just over 10%); indicated that the rate of growth in NDR income
health portfolio and was not ‘new money’ for
local government to spend. has slowed, perhaps leading to a deficit in
• Non-Domestic Rates Income/Business Rates
the NDR income pool which will have to
(around 25%);
At the same time, to receive their full grant be funded in due course.
allocation, councils had to agree to freeze council • Service income, fees and charges, including
tax for the ninth successive year, maintain a pupil/ specific grants from the Scottish Government For simplicity, we assume that NDR
teacher ratio at the same level as 2015, and pay and NHS (around 25%) revenues in Scotland will follow trend growth of
the Living Wage to social care workers. Failure to NDR in the UK as a whole (as forecast by the OBR
• Housing rents (around 5%), although these
deliver on any of these elements would result in at the time of the March 2016 Budget). This implies
revenues are ring-fenced for housing purposes
a financial penalty. Furthermore, it has since been a 0.6% real terms fall in revenues over the period
to 2020-21. This assumption is not unreasonable,
THE REVENUE GRANT course given the SNP’s manifesto commitment to ‘expand
Each year, the Scottish Government negotiates of this the Small Business Bonus, and increase the
a settlement for the revenue grant with COSLA, parliament. number of small businesses that pay no rates’.
the organisation representing local government On an annualised
basis, this would imply COUNCIL TAX
an average cut of 3.5% to Domestic properties in Scotland are assigned to
4.1% between 2016-17 and 2020- one of eight council tax bands (A to H). Individual
21 – or a cut of around £1 billion to councils set the ‘tax rate’ – the amount paid
the local government resource grant over annually by a property in Band D – but the Scottish
the course of the parliament based upon the Government sets the ratios between the bands.
scenarios set out above.
Since 2008-09, the Scottish Government and
At the same time, however, some of the Scottish local authorities have agreed to freeze the council
Government’s policy commitments will have tax. As a result, revenues have grown relatively
delivery implications for local government which slowly (reflecting some growth in the number
could add to or ease the funding pressures. Most of properties liable to tax). For each year the
obvious is childcare. COSLA will begin budget freeze has been maintained, the government
negotiations with the government in early has transferred an additional £70 million to local
September. Local authorities will no doubt seek authorities to compensate for the loss in revenue.
the full transfer of the £500 million earmarked for The Scottish Government has made two major
the expansion in childcare. new commitments on council tax. For example,
On the assumption that the revenue grant to
local government is cut by around 13.5% over the
course of the parliament on a like for like basis,
but that the costs associated with delivering theYou can also read
