Budget Consultation 2007-08 Public Consultation Meeting January 2007
Jan 01, 2016
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
®eneration
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
%