1

City of Edinburgh CouncilFinancial Context

November 2011

Karen Kelly, Chief Financial Officer

2

Revenue Budget 2011/12 – Service Breakdown

Education£301m

Housing£38m

CulturalServices

£37m

Environment£63m

Planning£15m

Roads andTransport

£7m

Social Work£259m

CentralServices

£56m

Police£45m Fire

£22m

3

Revenue Budget 2011/12 – Resource Breakdown

Third PartyProviders

£477m

Property£71m

Transport£31m

Supplies andServices£119m

EmployeeCosts£521m

FundTransfer

£179m

4

Revenue Budget 2011/12 – Staffing Breakdown (fte)

City Development

707

Corporate Governance

1,285

Teachers 3,456

Children and Families,

other staff 3,448

Services for Communities

1,763

Health and Social Care

2,872

Trading Operations

2,058

`

5

Revenue Budget 2011/12 – Funding Breakdown

Fees & Charges£556m

Council Tax

£226m

GovtGrant£744m

6

6

Spending Review and other factors

• Increases in National Insurance rates• Welfare Reform• Teacher class contact time• No additional funding for Council Tax freeze• Contribution to Change Funds• Capital Grant deferred• Inflation and utilities charges• Demographic change

7

Potential Impact on Revenue Financial Plan

Potential Increased Funding Gap £m

13

42

22

57

98

-2.3

-20

0

20

40

60

80

100

120

2012/13 2013/14 2014/15

LTFP

Revised

8

8

Financial Context - Illustrative Outlook for Scottish Government Expenditure

9

Growing Demand for Services - Population growth projection5.22m in 2010 to 5.76m in 2035

10

10

3% 1%

27%

82%

-3% -3%-20%

0%

20%

40%

60%

80%

100%

0 - 15 16 - 29 30 - 44 45 - 59 60 - 74 75+

Growing Demand for Services - Population change 2010 to 2035 - Change by age groups

11

11

Growing Demand for Services - Change in Household size 2008 to 2033

12

Growing Demand v Reduced Funding - 20010/11 to 2017/18 (% real terms)

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%20

10/1

1

2011

/12

2012

/13

2013

/14

2014

/15

2015

/16

2016

/17

2017

/18

Change in Demand %

Change in Funding % realterms