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BUDGET CONSULTATION 2005-06

BUDGET CONSULTATION 2005-06. 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.

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BUDGET CONSULTATION 2005-06

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  1. BUDGET CONSULTATION2005-06

  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

  4. REVENUE BUDGET 2004-05

  5. SALFORD’S REVENUE BUDGET 2004/05Sources 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 Taxfor 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 % Increase in Council Tax £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 Budget

  7. COUNCIL TAXBanding and Taxation Details Band Value Tax 2004/05 Proportion Proportion Council Tax of 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 - £120,000 11/9 1,570.87 3.12 F £120,001 - £160,000 13/9 1,856.49 1.38 G £160,001 - £320,000 15/9 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

  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

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