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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

'opening work-in-progress' means the number of cases open at the beginning of the year

'closing work-in-progress' means the number of cases open at the end of the year

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.