Financial Context for City Council Keith Darragh – Assistant Director (Resources)

Budget Cycle – Planning to Settlement Continuous monitoring of demand, expenditure and resources available. City Council formal business planning and budget cycle –Timescale is October 10 – March 11 –Headlines on funding announced in Spending Review October 20 th –Detailed Local Government Settlement – first week December –Consultation and clarification on funding resources available between Local Authorities and Central Government – December / January –Budget Options evaluated by early February –Budget set end of February through Council We are here

Spending Review - Headlines Cuts in funding affecting vast majority of Government over the next 4 years –a 28% cut to local government funding –a 20% cut to police funding –a 25% cut to fire funding An additional £1bn of adult social care grant by 2014/15 (cost of Adult Social Care nationally £15Bn) Context of loss of funding to Local Authorities of approx £6.5Bn

Managing Salford’s Budget for Adult Social Care In the last 9 years we have contained expenditure within budget resources for Adult Social Care This has been achieved by –Managing demand – Prevention and Re-enablement, supporting people in the community for as long as possible, developing services with Salford NHS around crisis response and intermediate care –Managing costs – placement costs, fee structures, developing more economic local services

Managing Budget Reductions Salford has proactively managed budget reductions through negotiations and tenders These apply to a range of services over the last 3 years including Efficiency savings –Learning Disability Supported Accommodation £400k on £4.9m spend - 8.9%

Managing Budget Reductions Efficiencies Continued –Community Support Services £130k on £1.7m spend – 7.7% –Supported Employment £20k on £284k spend – 7% –Home care tender summer 2010 £210k on £7.5m spend– 2.8% De-commissioning and Reshaping Services –Practical Domestic Tasks Contract £120k – 100% –Older Persons Day Centre £100k on £1.3m spend – 7.7%

Managing Budget Reductions Current Negotiations –Mental Health Supported Accommodation Negotiating Efficiencies (price) / Reshaping services –Out of Borough Placements Negotiating Efficiencies (Price) Tenders plan leading to efficiencies in 2011/12 –Extra Care Sheltered Housing –Physical Disability Supported Accommodation

Managing Salford’s Budget for Residential and Nursing Care Total expenditure on Adult Social Care £95m Residential and Nursing Care £28m – 29% of total spend Need to consider –How to reduce our £28m expenditure –Meet statutory requirements –Meet need appropriately

Summary Funding will be tight for the foreseeable future Spending review is taking out approx £6.5Bn of funding from Local Authorities and adding back £1Bn for Adult Social Care Adult Social Care costs approx £15Bn nationally and is interwoven with Council funding – therefore £1Bn is helpful but it is not the whole answer

Summary Need to reduce expenditure for services to be affordable. Efficiencies, De-commisioning and Service reshaping How do we together keep residential and nursing home services meeting need, delivering on quality, operating to standards and affordable

Discussion Groups and Actions.

Discussion Groups - Actions Q How do we reduce our overall Residential and Nursing Home expenditure from £28m ? QHow do we move forward from today to jointly work on solutions ?