- Smart cities aim to use technology to address urban challenges and improve lives, but funding smart city initiatives is difficult, especially wider deployments beyond pilots. - The cities of Cambridge and Cambridgeshire are facing significant budget cuts and require savings of over £100 million by 2020, with most spending going to health and social care. - "Aspirin" solutions like smart street lighting can ease budgetary pain with proven energy savings, while "vitamin" solutions to stimulate growth currently lack funding sources. - New funding and business models are needed to scale up smart cities and help fund "vitamin" solutions through approaches like capital funding, collaboration, and attracting private sector investment.

1. Funding Smart Cities
Dan Clarke - @danstagger

2. Why Smart Cities?
‘Technology presents us with the
opportunity to address city
challenges, create better civic
participation and to make
peoples lives better’

3. Smart City large Scale Pilots
Public, Private collaborations - pilots
Primarily funded by

4. Second –tier – No major funding sources
• Some funding – but working out how to pay for a
wider smart city deployment
• Searching for business cases
• Create a sustainable model

5. Aspirins V’s Vitamins
Aspirins – Ease
budgetary pain
Vitamins – stimulate
growth, support
healthier Cities

6. Smart Street-lighting

7. Air Quality Monitoring

8. Smart Parking

9. Smart Traffic Management

10. Smart Waste
Commercial

11. Connected Care

12. The Cambridge Patient
Diagnosis – Significant Budgetary Pain
Cambridgeshire County Council
Savings Since 2009 - £218m
Current Budget - £510.4m (excluding schools)
Savings Required by 2020 - £100m
Cambridge City Council
Savings Since 2009 - £6m
Net expenditure - £25.6m
Savings Required by 2020 - £6.5m

13. Budget Breakdown - County
Health and Social Care
£342.7m
Building Schools and
Roads
£35.5m
Highways Maintenance
£33.3m
Waste and Recycling
£34.5m
Libraries and Heritage
£5.3m
Community and Frontline
services
£58.7m
67%
11.5%
6.9%
6.7%
6.4%
1.5%

14. Central Services inc. tax
collection & elections,
£2.2m
Cultural related Services
inc. arts, recreation, parks,
open spaces and
community facilities,
£8.8m
Environmental &
Regulatory Services inc.
refuse collection, street
cleansing and
environmental health,
£14.8m
Planning & Development
Services,
£8m
Car Parks & transport
related services,
£5.6m
Housing Services (excl.
housing revenue account),
£5.3m
Housing Benefit,
£42.7m
Corporate & Democratic
costs,
£2.4m
Other expenditure,
£4.2m
Revenue Funding of
Capital,
£9.8m
Budget Breakdown – City Council

15. • 25 Year - PFI
• The street lighting PFI programme will deliver
energy savings in the region of 46% to the
County Council.
Already Prescribed………………….
Street Lighting
A missed opportunity?
Big Belly Bins.
• Reduces bin collection costs by up to and over
70%.
• Proven to reduce street bin collections by an
average 86%.

17. County - Mild Pain - 3
Asset Management - £1m
Parking enforcement - £3.4m
Network Management £1m
Winter Maintenance - £1.2m
AQ - £23K
RTPI - £155K
IHMC - £195K
Estimated Budget for
Vitamins £0
Estimated Budget for Aspirins
£1m

18. City - Moderate Pain - 4
Environmental and regulatory
services - £14.8m
Car parks and transport -
£5.6m
Cultural - £8.8m
Estimated Budget for
Vitamins £0
Estimated Budget for Aspirins
£3m to £4m

19. CCC - Severe Pain - 9
Health and Social Care – £342.7m (67% of spend)
Community and Front line services - £58.7m
• Radical transformation of the way we deliver
these services
• Huge savings
• Significant role for technology
• Societal issue we need to tackle!

20. To ease the pain we need to;
• Provide better preventative measures to avoid
expensive care interventions
• Target interventions .
• Help and support people’s responsibilities for their
own health and wellbeing.
• Build community resilience.
• Better share data and information between
agencies.
Pain Relief

21. Considerations
• Capital V’s Revenue
• Low cost
• Interoperability, e.g. NHS
• Live depend on:
• Robust data
• Connectivity
• New business models – joint funding:
Family/Authority; Insurance Co’s, etc

22. Funding Smart Cambridge
• City Deal:
– One-off piece of funding primarily aimed at easing the pain of
congestion
– Capital
– Ensuring infrastructure enables ‘Smart’ solutions
• Health and Social Care – technology opportunities and new
business models
• Collaboration – e.g. A14
• New housing developments
• Looking for new/sustainable business cases from other cities
• InnovateUK, European funding, etc.
• Open eco-system – stimulate private sector innovation/investment

23. Scaling Smart Cities
• For each city identify where Aspirins are needed – clear
route to profit.
• Use these to begin to build infrastructure to support
other applications.
• Build solutions which are sustainable - lower revenue
commitment.
• Identify opportunities for Capital – business model
must meet objectives
• Need to develop new models – private sector invest
directly
• Share best practice – cities work together

25. Questions