1. S S P EXECUTIVE Monday 14 March 2011 Item 4a) Salford City Council Revenue Budget 2011/12 Martin Vickers Strategic Director Salford City Council

2. COMPREHENSIVE SPENDING REVIEW HEADLINES 28% cut in local government funding over next 4 years Transfer of £4bn of revenue grant to formula grant by 2014/15 Additional £1bn of adult social care grant by 2014/15 Reduced ring-fencing of grants from 90 to 10 from 2011/12 Freezing council tax

3. REVENUE SUPPORT GRANT SETTLEMENT HEADLINES Front-loaded reductions of 10% in 2011/12 and 8% in 2012/13 Transfer of grants into formula grant and unring-fencing Protection to LAs who lost the most grant in 2011/12 Council tax freeze for 2011/12 only New Homes Bonus Review of business rates

4. FINANCIAL IMPACT ON SALFORD 2010/112011/122012/13 Formula grant £152.5m£135.6m£125.1m reduced by 11.3% 7.4% Revenue spending power£280m£255m£242m reduced by 8.9% 4% or £25m £10m (like-for-like) After allowing for other local funding requirements such as inflation, capital investment and local priorities this has required : Savings in expenditure of£40m£18m

5. PROTECTING PRIORITY SERVICES Safeguarding children Early intervention – children’s centres Maintaining eligibility criteria for adult social care Maintaining weekly collections for residual waste Supporting people into employment Maintaining housing support for vulnerable people Investment in highways Community safety Maintaining community empowerment through devolved budgets

6. APPROACH TO THE SAVINGS THE 7 THEMES 1.Workforce reforms 2.Income generation 3.Budget adjustments 4.Collaboration 5.Property 6.Service / policy redesign 7.Service reduction

7. SOME IMPACTS OF THE SAVINGS Reduction in services to youth – careers advice/activities Reduction in street cleaning and graffiti removal Reduction in support to the environment Increases in fees and charges, eg car parking, burials/cremations Economic impact of fewer jobs and opportunities Reduction in support to the voluntary sector Major events and activities ceased

8. SERVICE REDESIGN Integrating youth service with the youth offending service More intensive and targeted adult social care Co-location of libraries rather than closure Better use of technology Collection of food waste with green waste Risk based approach to environmental health inspections Mobile rather than fixed warden service

9. IMPACT ON WORKFORCE Around 600 Council jobs to be lost ( + more in other sectors) Introduction of workforce car parking charges Abolition of essential user lump sum car allowances Voluntary unpaid leave scheme Pay freeze for 2 years But : Avoidance of compulsory redundancies wherever possible

10. OTHER ASPECTS Maintaining capital investment - £152m programme 2011/12 - £54m on Regeneration – Mediacity, Chapel St, Greengate, Salford West - £39m on Housing – decent homes standard, new build, Pendleton PFI - £30m on Schools – high schools PFI, removing primary surplus places - £8m on Highways – maintaining the fabric Council house rent increases of 6.6%