1. BUDGET CONSULTATION 2005-06

2. LOCAL GOVERNMENT FINANCE CONTENTS 2004/05 Revenue Budget Analysis Council Tax Future Developments in Local Government Finance 2005/06 Revenue Budget Initial Projection Key points from the Quality of Life Survey Your priorities and views

3. REVENUE BUDGET 2004-05 ServiceExpenditureIncomeNet Education & Leisure16823145 Community & Social Services1255075 Housing1691681 Development Services401426 Environmental Services16412 Corporate Services522923 Chief Executive1587 Capital Financing22121 Accounting adjustments-291-30 Total578298280

4. REVENUE BUDGET 2004-05 £m Gross Expenditure on Services578 Less Income298 Net Expenditure280 Funded from: Revenue Support Grant 53.5%150 Business Rates 21.5%60 Council Tax 25.0%70 Total280

5. SALFORD’S REVENUE BUDGET 2004/05 Sources of Funding Revenue Support Grant (RSG) £149.9m (53.5%) Direct grant from Government based on their Formula Spending Share (FSS) for each local authority FSS less Council Tax for FSS less Business Rates = RSG Business Rates £60.4m (21.5%) Money collected from businesses which is recycled to local authorities according to population - also known as National Non Domestic Rates (NNDR) Council Tax £70.1m (25%) Local tax on residential property

6. The ‘Gearing’ Effect - Impact on the level of Council Tax at varying budget levels £M £M % Increase Current Budget 280.4 283.2 1 Funded by Government 210.3 210.3 0 Council Tax 70.1 72.9 4 % Increase in Council Tax Increase in Budget

7. COUNCIL TAX Banding and Taxation Details BandValueTax 2004/05Proportion ProportionCouncil Taxof properties £ % A minus disabled < £40,000 5/9 714.03 0.08 A < £40,000 6/9 856.84 54.79 B £40,001 - £52,000 7/9 999.65 18.95 C £52,001 - £68,000 8/9 1,142.45 14.41 D £68,001 - £88,000 1 1,285.26 6.30 E £88,001 - £120,00011/9 1,570.87 3.12 F £120,001 - £160,00013/9 1,856.49 1.38 G £160,001 - £320,00015/9 2,142.10 0.90 H > £320,000 2 2,570.52 0.07 Discounts : 25% single persons, 50% empty property, 100% students Disabled reduction - next band down Band D tax = 28th highest ;Average tax £832 = 307th of 354 LAs

8. Comparison of Council Tax Levels - GM Authorities

9. Future developments impacting on the City Council’s Budget Strategy Balance of Funding Review Reform of Council Tax providing LAs with increased flexibility to raise additional revenue options for other forms of LA revenue - local income tax, reform of NNDR implications for financing of possible elected regional assemblies Governments Comprehensive Spending Review Anticipated increase in Local Government expenditure 5.8%, 5.5% & 5.1% 2005/06 to 2007/08 Increase in Government support (RSG & NNDR) 5.4%, 5.5% & 5.1% Predicted Council Tax increases of 6.7%, 5.5% & 5.1% Local Authorities to identify 2.5% p.a.efficiency savings Gershon Efficiency Review Identifies potential areas for public sector efficiency savings £6.45bn savings in Local Government - up to 15,000 jobs

10. BUDGET AND RSG PROJECTIONS 2005-06 £m Projection of net expenditure on current level of service298.7 Initial indication of Government Grants: Revenue Support Grant158.0 Business Rates63.7 Amount to be met from Council Tax76.9 2004-05 Council Tax increased by 3%73.1 Funding Gap3.8

11. Options to bridge the Funding Gap Efficiencies Cuts in service Increasing Council Tax Other Considerations: RSG Settlement Service expenditure forecasts Service priorities Consultation outcomes

12. What residents said in 2003/04 Quality of Life Survey 61% of respondents are satisfied with their neighbourhood as a place to live (86% is the national average) 39% feel that their neighbourhood has got worse – mainly because of crime issues. Key Issues in making Salford a great place to live –53% crime reduction –34% cleaner environment –21% improved leisure facilities –19%better job opportunities 54% are satisfied with the way the City Council runs things –71% satisfied (highest) with bin emptying service –58% consumer protection –58% Education and Schools What has got worse –40% increase in crime –22% more youth disturbance

13. What are your views and your options? Stage 1 Consultation – November/December 2004 What services matter most to you? Would you increase or reduce service levels - in what service areas ? Would an above inflation increase in Council Tax be acceptable with increased service levels? Are you for tax cutting measures that impact on public services? Can you identify areas to improve the efficiency of Council services. Stage 2 Consultation - January 2005 Budget update e.g. resources, expenditure projection etc. Feedback Consideration of refined budget options