Transcript National policy and Comprehensive Spending Review headlines Kevin Brady National Policy Movements • Localism Bill – The bill describes the government’s approach of “guided localism”.

National policy and Comprehensive
Spending Review headlines
Kevin Brady
National Policy Movements
•
Localism Bill
– The bill describes the government’s approach of “guided localism”. Its
proposals include planning reform, a general power of competence for local
government, the power for local people to trigger referenda and the
community right to buy and right to challenge.
•
Health and Social Care Bill
– The bill proposes the abolition of primary care trusts and strategic health
authorities. GP consortia will take on responsibility for commissioning, with
other public health authorities passed to local authorities.
•
Welfare reform
– A large number of reforms are proposed, including the introduction of
Universal Credit, changes to housing benefit and council tax benefit and
changes to other benefits such as Incapacity Benefit and Income Support.
•
Focus on transparency
– For example, councils required to publish spending over £500.
National Policy Movements
•
Education reform
– Reforms include a review of the national curriculum, introduction of free
schools and extension of the Academy programme and introduction of the
pupil premium. Educational Maintenance Allowance is to be abolished and
tuition fees are being reformed.
•
Civil society
– The Coalition programme includes support for social action, mutuals and cooperatives.
•
Police Reform and Social Responsibility Bill
– The Bill proposes directly elected Police and Crime Commissioners and the
abolition of Police Authorities.
•
Social housing reform
– White paper proposes changes to social housing system, including tenure,
management of waiting lists and the homelessness duty.
Comprehensive Spending Review
Headline funding announcements
• a 28% cut to local government funding over the next 4 years,
– Cuts to council funding front loaded
• a 20% cut to police funding over the next 4 years,
• a 25% cut to fire funding over the next 4 years,
– Cuts to fire funding back loaded
• Additional £2bn per annum by 2014/15 for adult social care (split
health/local government)
• over £4bn of revenue grants transferred to formula grant by
2014/15,
• reducing ring-fenced grants from 90 to 10 from 2011/12,
• freezing council tax for 4 years with a 2.5% incentive grant.
Comprehensive Spending Review
• Community Budgets
– First 16 community budgets, which includes Greater Manchester,
rolled out from 2011/12 for families and complex needs
• New Homes Bonus
– Intended to incentivise local authorities and communities to support
housing growth.
• Giving communities the right to buy or run public assets and
services that might otherwise close or face significant reductions
• £470m to support capacity building in the voluntary and
community sector
‘In the current economic climate it is more important than ever that the
region speaks with one voice so we can make the strongest possible
case for resources and investment’
Lord Peter Smith, Chair of AGMA
The Greater Manchester Combined Authority
• The first of its type in the country – operational April 2011
• New powers from Whitehall to work more effectively on
transport, regeneration and economic development
• More control locally over the issues that affect us all
• Will provide the robust governance arrangements we
need to drive private sector growth and plan in a
coordinated way to deliver growth
The Greater Manchester
Local Enterprise Partnership (LEP)
• Designed to support business and local authorities to grow
the local private sector, tackle major barriers to growth and
develop shared strategies for the local economy to increase
job creation
• Currently in shadow form – immediate focus on
establishing the full LEP
• GM LEP Bid for Round 1 Regional Growth Fund (RGF)
submitted to Government January 2011 – will create over
10,000 jobs and generate additional investment of £297m
Local Government Settlement For
Salford City Council
Impact on Salford (2)
2011/12 Spending Requirement vs. Available Resources
Spending Requirement
Base Budget
£230.8m
Inflation
£ 6.7m
Loss of Specific Grants
£ 49.7m
Total Available Resources
Council Tax
£ 91.6m
Formula Grant
£135.4m
Specific Grants
£ 29.2m
- comprising –
Area Based Grant
Children’s
Adult Social Care
- comprising Early Intervention
Learning Difficulties
NHS social care
Benefits Admin
Council Tax freeze
Homelessness
£38.4m
£10.5m
£ 0.8m
NHS grant transfers
£ 10.7m
Children’s Servs pressures £ 4.5m
Early pension costs
£ 3.5m
----------£305.9m
£13.1m
£ 7.1m
£ 3.6m
£ 2.9m
£ 2.3m
£ 0.2m
----------£256.2m
Funding Gap
(Savings Needed)
£ 49.7m
Key themes of our approach
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4.
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6.
7.
Workforce reform
Income generation
Budget adjustments
Collaboration
Property
Service / policy redesign
Service reduction
Analysis of Proposals accepted so far for consultation
Analysis by theme
Amount £m’s
Workforce reform
£1.199
Income generation
£1.570
Budget adjustments
£3.247
Collaboration with AGMA
Authorities
£1.317
Property
£0.832
Service/Policy redesign
£10.664
Service reduction
£13.385
Total
£32.214
Partnership Priority Objectives
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Worklessness
Child Poverty
Health
Community Safety