Budget Consultation2007-08

Public Consultation Meeting

January 2007

Agenda

• Presentation on the council’s financial position for 2007/08

• Presentation of feedback from Stage 1 consultation• Questions and answers

2007/08 GOVERNMENT GRANT SETTLEMENT

Main Features• Separate grant funding for schools• 2 year grant announcements for 2006/07 and 2007/08 –

no changes made to 2007/08 by Government• Grant floors to protect losers, paid for by grant gainers• Capping of council tax increases at 5%• Debate about sufficient Government funding

2007/08 GOVERNMENT GRANT SETTLEMENT

Headline National Figures 2007/08

• Total grant £65.7bn + 4.9%of which :-

• Schools grant £28.1bn + 5.8%• Specific grants £16.0bn + 4.7%• Formula grant £21.6bn + 3.7%

Formula grant is the Government’s funding towards general local government expenditure – the other

component is council tax

2007/08 GOVERNMENT GRANT SETTLEMENT

Impact on Salford (1)

2007/08

• Formula grant £115.6m + 4.3%

compares with :• Nationally + 3.8%• Metropolitan districts + 3.5%• Greater Manchester 3rd highest

2007/08 GOVERNMENT GRANT SETTLEMENT

Impact on Salford (2)

2007/08

Funding Available• Formula grant £115.6m• Council tax with a 3% increase £ 81.7m• Collection Fund surplus £ 0.9m• Total £198.2m

SALFORD’S SPENDING PLANS 2007/08 (1)

Budget 2006/07 £189.2mAdd : effects of inflation and other costs £ 12.2m 2006/07 spending pressures continuing £ 2.9m

equal pay costs £ 1.5m

Continuation of service budget £205.8m

Efficiencies £ - 8.3m

Expansion of service provision £ 0.7m

Total spending plans for 2007/08 £198.2m

Resources £198.2m

SALFORD’S SPENDING PLANS 2007/08 (2)

Inflation/other costs add £12.2m or 6.5% to spending plans - Why ?• Pay awards (2%) and increments £3.4m + 1.8%• Price inflation £5.3m + 2.8%• Pension contribution rate increase + 1% £1.0m + 0.5%• Cost of interest and repayment of new borrowing £0.5m + 0.3%• Reversal of contribution from reserves in 2006/07 £2.0m + 1.1%

NB. Price inflation has needed to cover extraordinary increases for : electricity 70%, water 12.5%, waste disposal 13%,insurances 5%

2.5% is allowed for all other unavoidable increases

No increase is allowed for general supplies and services

SALFORD’S SPENDING PLANS 2007/08 (3)

Spending Review

Has identified the need to invest in the following priorities:

Planning capacity £500,000

Housing restructure £500,000

Recycling and waste minimisation £600,000

Environment to be identified

Crime and community safety to be identified

Building maintenance £800,000

Youth to be identified

Worklessness £500,000

Total £2,900,000+

SALFORD’S SPENDING PLANS 2007/08 (4)Choices

We are awaiting funding decisions from Government that would provide the necessary revenue for priority service expansion:– Local Authority Business Growth Incentive Scheme – Capitalisation of cost of Equal Pay claims

If unsuccessful should the Council:• Reduce expenditure to keep to a 3% Council Tax increase?

– By limiting service expansion spending plans?– By seeking further efficiencies? and/or– By cutting services?

• Increase Council Tax by more than 3% to keep budget for service expansion?– Each additional 1% increase gives £800,000 revenue– But cannot go above the Government’s cap of 5%

SALFORD’S SPENDING PLANS 2007/08 (5)

The Council’s Preferences

• Council tax increase to be around 3%• To avoid cuts in service• To provide for growth in priority services• To redirect efficiencies wherever possible into service

improvement and growth• To maintain its financial health

Budget Consultation2007-08

Results of Stage 1 consultation

BUDGET CONSULTATION 2007/08 – STAGE 1

Responses %

Big Listening 751 54

Budget Consultation Database 94 16

Young People 835

Website – on-line questionnaire 12

Email 9

Total 1701

BIG LISTENINGThe top six council services on which people would like MORE money spent are:

72

5955 54

4945

0

10

20

30

40

50

60

70

80

Crime andcommunity

safety

Maintenanceof roads andpavements

Health andsocial care

Youthservices and

facilities

Education Parks andopen spaces

%

BIG LISTENINGThe top six services on which people would like LESS money spent are :

31

1512 11 10 9

0

5

10

15

20

25

30

35

Communitycommittees

Housingservices

Economicdevelopment

&regeneration

Libraries,museums

and artgalleries

Sportscentres andswimming

pools

Trafficmanagement

and roadsafety

%

BIG LISTENINGThe views of the public on various council tax options were :

37

28 26

59

69 70

0

10

20

30

40

50

60

70

80

Would you support anincrease in council tax of

3% to maintain councilservices at existing levels

Would you support anincrease in council taxabove 3% in order to

improve priority councilservices

Would you support adecrease in council taxlevels even if it meant areduction in the level of

services

%Yes

No

BIG LISTENINGThe overall satisfaction with council services was :

6

42

26

20

5

0

5

10

15

20

25

30

35

40

45

Very Satisfied Fairly satisfied Neither satisfiednor dissatisfied

Fairlydissatisfied

Verydissatisfied

%

BUDGET CONSULTATION DATABASEThe top six council services on which people would like MORE money spent are:

63

52

4139

33 31 31

0

10

20

30

40

50

60

70

Maintenanceof roads &pavements

Crime andcommunity

safety

Streetcleaning

Health andSocial Care

Youthservices and

facilities

Education Parks andopen spaces

%

BUDGET CONSULTATION DATABASEThe top six services on which people would like LESS money spent are:

39

31

2119 18 17

0

5

10

15

20

25

30

35

40

45

Communitycommittees

Housingservices

Econ Dev &Regen

Sport centresand swimming

pools

Youthservices and

facilities

Trafficmanagement

and roadsafety

%

BUDEGT CONSULTATION DATABASEThe views of the public on various council tax options were :

42

28 30

52

6864

0

10

20

30

40

50

60

70

80

Would you support anincrease in council tax of3% to maintain council

services at existing levels

Would you support anincrease in council taxabove 3% in order to

improve priority councilservices

Would you support adecrease in council taxlevels even if it meant areduction in the level of

services

%

BUDGET CONSULTATION DATABASEThe overall satisfaction with council services was :

6

38

2021

12

0

5

10

15

20

25

30

35

40

Very Satisfied Fairly satisfied Neither satisfiednor dissatisfied

Fairlydissatisfied

Verydissatisfied

%

YOUNG PEOPLEThe top six services on which young people would like MORE money spent are :

5756

5453

5150

46

48

50

52

54

56

58

Youthcentres

Sportscentres

Transport Cafes foryoungpeople

Swimmingpools

Parks

%

YOUNG PEOPLEThe top six services on which young people would like LESS money spent are :

25

20

14 13 13 12

0

5

10

15

20

25

30

Skate parks Libraries Parks Mobileprovision

(convertedbuses)

Schools Detachedyouth

workers

%

YOUNG PEOPLEWhat do you think is the most important issue that the council should address to improve the quality of your life in the city

30

17

1311

64 3

0

5

10

15

20

25

30

35

Reducingcrime

Investing inyoungpeople

Encouraginglearning,leisure &creativity

ImprovingHealth

Enhancinglife

Creatingprosperity

Promotinginclusion

%