S S P EXECUTIVEMonday 14 March 2011

Item 4a) Salford City Council Revenue Budget 2011/12

Martin VickersStrategic Director

Salford City Council

COMPREHENSIVE SPENDING REVIEW

HEADLINES

• 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

• 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

2010/11 2011/12 2012/13• Formula grant £152.5m £135.6m £125.1m

reduced by 11.3% 7.4%

• Revenue spending power £280m £255m £242m

reduced by 8.9% 4%

or £25m £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

• 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

1. Workforce reforms

2. Income generation

3. Budget adjustments

4. Collaboration

5. Property

6. Service / policy redesign

7. Service reduction

SOME IMPACTS OF THE SAVINGS

• 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

• 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

• 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%