in this section

• publications
• corporate plans and budgets
• corporate plan and 2007/08 budget, about this document
  • introduction
  • how we delivered our corporate plan in 2006/07
  • key issues for 2007/08 and beyond
  • actions we will take in 2007/08 and beyond
  • overview of budget
  • 2006/07 forecast
  • complaint trends
  • 2007/08 budget and case fees
  • A: compulsory jurisdiction - provisional levy 2007/08
  • B: compulsory jurisdiction - case fees 2007/08
  • C: consumer credit jurisdiction - case fees 2007/08
  • D: voluntary jurisdiction - levy and case fees 2007/08

home » publications » corporate plans and budgets» corporate plan and 2007/08 budget » chapter 6: 2006/07 forecast

corporate plan and 2007/08 budget

January 2007

2006/07 forecast

This chapter deals with the current year, 2006/07.

new cases

Our budget for 2006/07 assumed that we would receive 105,000 new cases – a 7% decrease from the previous year. A decrease in the number of new mortgage endowment cases (which still remain at a high level) has been largely offset by an increase in banking cases and, to a lesser extent, insurance cases.

We forecast that by 31 March 2007 we will have received 60,000 new mortgage endowment cases and 45,000 new cases of other types, in line with the budget total of 105,000.

cases resolved

Our budget for 2006/07 assumed that we would resolve and close 125,000 cases. Our current forecast is that we will close about 116,000 cases – reflecting a mid-year reduction in target of 9,000.

This results from a decision not to recruit as many adjudicators as originally planned, in the light of our latest forecasts of the decline in future workload. Any further adjudicators we took on would probably become surplus to requirements soon after becoming fully productive.

productivity

Our budget for 2006/07 assumed that productivity would fall marginally, to reflect an increase in the proportion of more complex cases which are vigorously contested by the parties involved. Our current forecast is that productivity will fall slightly more than anticipated.

timeliness

Timeliness figures – which are based on the age of cases when closed – are expected to be in line with our budget for 2006/07. The target is likely to be met, even though we have focused on closing the older cases.

unit cost

Our budget for 2006/07 assumed that our unit cost (total costs, less financing, divided by the number of cases closures) would be £472. Our current forecast is marginally higher at £477, reflecting the revised figure for the number of cases we now expect to resolve and close.

opening work-in-progress	actual 12 months 2005/06	actual 9 months 2006/07	forecast 12 months 2006/07	budget 12 months 2007/08
mortgage endowment cases	49,608	48,000	48,000	47,924
other cases	22,701	17,800	17,800	17,832
total	72,309	65,800	65,800	65,756

new cases	actual 12 months 2005/06	actual 9 months 2006/07	forecast 12 months 2006/07	budget 12 months 2007/08
mortgage endowment cases	69,149	38,192	60,000	60,000
other cases	43,774	34,444	45,000	45,000
total	112,923	72,636	105,000	105,000

cases resolved	actual 12 months 2005/06	actual 9 months 2006/07	forecast 12 months 2006/07	budget 12 months 2007/08
mortgage endowment cases	70,757	48,515	68,500	76,000
other cases	48,675	34,654	47,300	49,000
total	119,432	83,169	115,800	125,000

closing work-in-progress	actual 12 months 2005/06	actual 9 months 2006/07	forecast 12 months 2006/07	budget 12 months 2007/08
mortgage endowment cases	48,000	37,677	39,500	31,924
other cases	17,800	17,590	15,500	13,832
total	65,800	55,267	55,000	45,756

work in hand (weeks)	actual 12 months 2005/06	actual 9 months 2006/07	forecast 12 months 2006/07	budget 12 months 2007/08
mortgage endowment cases	32.5	27.5	30.0	22.5
other cases	20.3	20.0	17.0	14.2
total	28.4	24.8	24.7	19.2

productivity	actual 12 months 2005/06	actual 9 months 2006/07	forecast 12 months 2006/07	budget 12 months 2007/08
mortgage endowment cases	5.6	4.7	5.1	5.2
other cases	3.5	3.5	3.5	3.5
total	4.5	4.1	4.3	4.4

% closed within 6 months	actual 12 months 2005/06	actual 9 months 2006/07	forecast 12 months 2006/07	budget 12 months 2007/08
mortgage endowment cases	45	46	45	45
other cases	74	81	80	80
total	59	60	60	60

	actual 12 months 2005/06	actual 9 months 2006/07	forecast 12 months 2006/07	budget 12 months 2007/08
unit cost	433	n/a	477	472

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