1. Newcastle - a great city Ambition in the face of austerity Budget 2016/17-18/19 January 2016

2. Financial Context Significant savings through government enforced austerity (cumulative) Our response has involved difficult decisions and radical change through a combination of transformation and cuts. All figures in £m 2011/122012/132013/142014/152015/16 Grant cuts 2944587598 Cost Pressures 1934587693 Total 4878116151191

3. 2011/12 2015/16

4. Financial Context: Government Policy Additional £8bn health investment Further £20bn savings – 30% reduction to local govt New Homes Bonus, etc. Care Act Introduction of the National Living Wage Pension changes etc. Settlement received 17th December 2015

5. Budget savings over next three years CONFIDENTIAL DRAFT

6. Core Spending Power2015-16 (adjusted)2016-172017-182018-192019-20 All-England (£ billion)44.543.342.743.244.3 NCC (£ million)248.3237.4231.7233.7237.6

7. Core Spending Power2015-16 (adjusted)2016-172017-182018-192019-20 All-England (£ billion)44.543.342.743.244.3 NCC (£ million)248.3237.4231.7233.7237.6

8. Government Housing Policy 1% rents reduction pa for each of the next 4 years reducing the monies available over the 30 year model by £593m Governments Force to sell Levy to fund RSLs RTB High income Social Tenants levy Impact of Welfare Reductions on ability to pay We continue to assess the likely impact of these policy changes CONFIDENTIAL DRAFTLABOUR GROUP 16 NOVEMBER

9. Overarching strategy ‘shielding’ and ‘investing’ Striving for balance between creating more/better jobs and compassion and care for the vulnerable.

10. Discussions on specific proposals

11. Timetable - Special Business Cabinet 9 Dec (Cabinet reports published 1 Dec) - Public Consultation Dec/Jan (consultation closes on the 31 Jan) - Business Cabinet 22 Feb - Council 2 Mar

12. Summary Savings over the next four years remain incredibly difficult. Reduced resources in the Housing Revenue Account Striving for balance between shielding and investment. Options are limited. Focused on transformation, partnership working and commercialism. It’s not possible to transform all services and reductions and cuts are inevitable. We’ve a good track record of mitigating cuts but this will get harder.