Frequently asked questions about efficiency savings
What do you mean by "efficiency savings"?
"Efficiency savings" are made when there is a decrease in how much resource (time, money, labour etc) we have to use to achieve something (collecting bins, keeping the parks tidy, providing housing, giving residents help and advice etc).
For example, if we are able to reduce the cost of a service without reducing its effectiveness, this is an efficiency saving. If we are able to do more with the resources we already have without increasing costs this is also an efficiency saving.
All Council services must find efficiency savings.
Give me some examples of efficiency savings
Joining up across the Council and with other Councils to procure goods and services at lower prices ('bulk buying')
Making better use of information technology to move from paper to electronic transactions (eg online payments)
Reviewing and improving how we work to reduce unnecessary tasks and making sure tasks are done at the right level.
Increasing staff productivity
Won't this mean some services or service levels are cut?
No. If a cost reduction results in a cut in service or service levels then it is not an efficiency saving.
Wherever possible the Council monitors service feedback and performance to demonstrate that the efficiency saving has not led to any adverse effect on services.
What is the efficiency savings target?
The efficiency savings target is an average of 4 per cent of the Council's base budget per year from 2009/2010.
The Council spent more than £90 million pounds in 2009/2010 but expects to save £1,985,000. This is less than 4 per cent - why?
The base for efficiency savings is specified by the Government. This is so that the target is calculated consistently for all Councils. The figure used by the Government is lower than the Council's gross annual spend because it excludes, for example, benefit payments which are 100 per cent funded by the Government.
The Council calculated its efficiency savings for 2008/2009 based on 3 per cent of the budget figure specified by the Government. The Government then increased the budget figure by including capital spending in the calculation, but it was too late to increase the efficiency savings and so they amount to only 2.1 per cent (not 3 per cent).
The Council will have to find more savings over the next two years to stay on target.
Why does the Council Tax bill for 2010/2011 show the efficiency savings for 2009/2010?
This is the information the Government wanted to be published. We will publish information on the efficiency savings for 2010/2011 in due course.
If you've made an efficiency saving in 2009/2010 then I've been overcharged. Will I get a refund?
Because the 2009/2010 budget and council tax level anticipated the efficiency savings, residents have not been overcharged, therefore are not eligible for a refund.
If the Council is more efficient, why has my Council Tax bill gone up again?
Many factors affect the level of Council Tax increase. Council spending is funded from Government grant, income from fees and charges and other income such as interest earned on investments, as well as Council Tax.
The Government grant, which funds about half of Council spending, rose by less than inflation. The economic downturn means that total income from fees and charges (eg car parking) has fallen, and so has interest earned.
The Council has also had to incur additional costs, for example an increase of £0.5m to fund the national concessionary fares scheme across the District. The Government have acknowledged that a small number of Councils are adversely affected by the way in which it distributes funds for this scheme.
More costs and less income from other sources means Council Tax has risen, this year by 3.9%. If the Council did not make efficiency savings, Council Tax increases would have to be higher to balance the budget.
Some of my council tax goes to the Police Authority. Why are their efficiency savings not shown?
The Government specified that Council and Fire and Rescue Authority efficiency savings must be published but does not require Police Authority efficiency savings to be published, although this might be required in the future. For more information, visit the
North Yorkshire Police Authority website (opens in a new window).
What does the saving for an average Band D dwelling mean?
The figure is calculated by dividing the total savings by the number of Band D equivalent dwellings. This enables you to make a comparison with other Councils even though they have different budgets and levels of efficiency savings.