Strategy and Finance Review Group

CSR 2007

Stephen JonesDirector of Finance and Performance

The funding announced in CSR

• Aggregate External Finance (AEF)• Re-categorisation of specific grants• Efficiencies• Business Rates

– Local Authority Business Growth Incentive (LABGI) scheme

– Supplementary Business Rate• Concessionary Fares

Aggregate External Finance

Year £’m IncreaseCash(%)

Increase real %

Increase excl PFI %

2007-08 23120

2008-09 24081 961(4.2) 1.5% 1.0%

2009-10 24920 839(3.5) 0.8% 0.1%

2010-11 25763 843(3.4) 0.7% -0.1%

Specific Grants

• Quantum and breakdown unknown• £5bn to RSG and Area Based Grant

(ABG)• £900m to RSG and £4.1bn to ABG by

2010-11• Full picture by time of provisional

finance settlement (end Nov/early Dec)

Efficiencies

• 3% cashable, £4.9bn in total– Business process improvement and

collaboration, £1.8bn– “smarter” procurement, £2.8bn– Improved asset management, £0.3bn

• Reporting requirements relaxed• £150m extra offered to support efficiency

delivery• Value for money Delivery Plan published• Regional Road Shows planned

Local Authority Business Growth Incentive (LABGI) Scheme

• SR04 - £1bn• CSR07

– 2008-09 - £0m– 2009-10 - £50m– 2010-11 - £100m

• Consultation closes 12 December

Supplementary Business Rate

• Upper limit of 2p in £• Revenues available only for economic

development spending• Power not available to Districts or London

Boroughs• Statutory consultation on spending plans• Ballot where SBR exceeds a third of project

cost• Small businesses exempted• Further consideration of rates reduction• From 2010-11

Concessionary Fares

• Additional Funding via specific grant– 2008-09 - £212m– 2009-10 - £217m– 2010-11 - £223m

• Consultation on the distribution method• Another success of the LGA – provided

we find the right way to distribute the money