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corporate plan and 2007/08 budget

January 2007

overview of budget

Chapters 5 to 8 report on our performance during 2006/07 and consult on our workload forecasts, proposed expenditure and funding for 2007/08.

2006/07

In the current year, the numbers of new complaints referred to us are expected to be in line with the budget on which we consulted in January 2005.

The number of cases we resolve and close is likely to be 7% below budget, because we capped the number of adjudicators in post earlier than planned - to reflect updated projections of the fall in incoming work for future years.

2007/08

We are entering a period of uncertainty, where we will need to carefully monitor the pattern and timing of an anticipated decrease in new cases. We face the dual challenge of continuing to handle historically high numbers of cases in progress, while at the same time gradually matching our resources to a declining intake of new cases.

In addition, we expect to receive a large number of time-barred mortgage endowment complaints for which, in many cases, we will not receive case fees - even though the associated work must still be funded. This produces a distorting effect in our plans, and makes it difficult to present figures comparable to those we have presented in past years.

As the volume of new cases declines, we intend to reduce the high number of cases in progress by closing more cases than we receive. The cost of the staff required to do this means that our expenditure for 2007/08 will increase by about 3% compared to our forecast for 2006/07, but it will fall by 3% compared to our budget for 2006/07. We anticipate a managed reduction in staff through natural turnover, and we will continue to review, on an individual basis, whether to fill vacancies that arise.

We have held the case fee at £360 for four years. For 2007/08 we propose to increase this to £400. The alternative would have been a disproportionate rise in the annual levy, resulting in the levy providing about 40% of income. That would be out of line with the preference for a greater proportion of our income coming from case fees, as expressed in response to the discussion paper on the funding of our compulsory jurisdiction.

image of plan and budget 2007

For printed copies of this or any of our publications, email Aniko Rostagni in our communications team or phone her on 020 7964 0092.