Transcript Preparations for Budget Away Day

S S P EXECUTIVE
Monday 14 March 2011
Item 4a) Salford City Council Revenue Budget 2011/12
Martin Vickers
Strategic Director
Salford City Council
COMPREHENSIVE SPENDING REVIEW
HEADLINES
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28% cut in local government funding over next 4 years
Transfer of £4bn of revenue grant to formula grant by 2014/15
Additional £1bn of adult social care grant by 2014/15
Reduced ring-fencing of grants from 90 to 10 from 2011/12
Freezing council tax
REVENUE SUPPORT GRANT SETTLEMENT
HEADLINES
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Front-loaded reductions of 10% in 2011/12 and 8% in 2012/13
Transfer of grants into formula grant and unring-fencing
Protection to LAs who lost the most grant in 2011/12
Council tax freeze for 2011/12 only
New Homes Bonus
Review of business rates
FINANCIAL IMPACT ON SALFORD
• Formula grant
reduced by
2010/112011/122012/13
£152.5m
£135.6m
11.3%
• Revenue spending power £280m
reduced by
or
£255m
8.9%
£25m
£125.1m
7.4%
£242m
4%
£10m
(like-for-like)
After allowing for other local funding requirements such as inflation,
capital investment and local priorities this has required :
• Savings in expenditure of
£40m
£18m
PROTECTING PRIORITY SERVICES
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Safeguarding children
Early intervention – children’s centres
Maintaining eligibility criteria for adult social care
Maintaining weekly collections for residual waste
Supporting people into employment
Maintaining housing support for vulnerable people
Investment in highways
Community safety
Maintaining community empowerment through devolved budgets
APPROACH TO THE SAVINGS
THE 7 THEMES
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Workforce reforms
Income generation
Budget adjustments
Collaboration
Property
Service / policy redesign
Service reduction
SOME IMPACTS OF THE SAVINGS
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Reduction in services to youth – careers advice/activities
Reduction in street cleaning and graffiti removal
Reduction in support to the environment
Increases in fees and charges, eg car parking, burials/cremations
Economic impact of fewer jobs and opportunities
Reduction in support to the voluntary sector
Major events and activities ceased
SERVICE REDESIGN
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Integrating youth service with the youth offending service
More intensive and targeted adult social care
Co-location of libraries rather than closure
Better use of technology
Collection of food waste with green waste
Risk based approach to environmental health inspections
Mobile rather than fixed warden service
IMPACT ON WORKFORCE
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Around 600 Council jobs to be lost ( + more in other sectors)
Introduction of workforce car parking charges
Abolition of essential user lump sum car allowances
Voluntary unpaid leave scheme
Pay freeze for 2 years
But :
• Avoidance of compulsory redundancies wherever possible
OTHER ASPECTS
• Maintaining capital investment - £152m programme 2011/12
- £54m on Regeneration – Mediacity, Chapel St, Greengate,
Salford West
- £39m on Housing – decent homes standard, new build,
Pendleton PFI
- £30m on Schools – high schools PFI, removing primary surplus
places
- £8m on Highways – maintaining the fabric
• Council house rent increases of 6.6%