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Budget Consultation 2007-08

Budget Consultation 2007-08. 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

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Budget Consultation 2007-08

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  1. Budget Consultation2007-08 Public Consultation Meeting January 2007

  2. Agenda • Presentation on the council’s financial position for 2007/08 • Presentation of feedback from Stage 1 consultation • Questions and answers

  3. 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

  4. 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

  5. 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

  6. 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

  7. SALFORD’S SPENDING PLANS 2007/08 (1) Budget 2006/07 £189.2m Add : 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

  8. 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

  9. SALFORD’S SPENDING PLANS 2007/08 (3) Spending Review Has identified the need to invest in the following priorities:

  10. 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%

  11. 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

  12. Budget Consultation2007-08 Results of Stage 1 consultation

  13. BUDGET CONSULTATION 2007/08 – STAGE 1

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

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

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

  17. BIG LISTENINGThe overall satisfaction with council services was :

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

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

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

  21. BUDGET CONSULTATION DATABASEThe overall satisfaction with council services was :

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

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

  24. 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

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