Finance and Budget Strategic Scrutiny Select Committee

12 June 2013

Examination of Process for Future Budgets

Neil Thornton

Chief Financial Officer

DEMOGRAPHIC CHANGE• Population• Age Profile• Inward Migration

RESOURCES• Salford City Council

c£64m (last 2 years)• But ....£60m for

2014/17 and maybe more to come

NATIONAL PICTURE• More Government not

less• More delegation

(problems) transferred to local government

• Public spending reducing

Issues

DEMOGRAPHIC CHANGE

2001- 2010+17.900

Ordsall

+ 7462+111%

Single Households

2001 – 35%2011 – 43%

2020 – 261.000 (+14%)

2035 – 300.000 (+30%)

Age Groups (2020)

Children + 26.2%Working Age + 15%Pensionable age +5.1%

• DCLG use figures to allocate funds

• New ONS methodology

• Net in-migration

Population

Age profile

Inward migration

Remember what LGA has said

2010/11

2011/12

2012/13

2013/14

2014/15

2015/16

2016/17

2017/18

2018/19

2019/20

£40,000

£45,000

£50,000

£55,000

£60,000

Income vs Expenditure

Net expenditure Income

£ (m

illi

on

) £15 bn

Remember what LGA has said

2010

/11

2011

/12

2012

/13

2013

/14

2014

/15

2015

/16

2016

/17

2017

/18

2018

/19

2019

/20

£40,000

£45,000

£50,000

£55,000

£60,000

£65,000

£70,000

Social care - children Social care - adults Environment (including waste)

Money available for all other services

Our Budget strategy 2014/15 to 2016/17 A different

approach but based upon lessons learned

• What does a 3 year perspective look like across services in terms of say £60M?

• Absolute alignment with City Plan priorities:

– Local Economic Growth and international inward investment

– Protecting vulnerable families

– Delivering quality services

• Further stark choices facing the Council in this financial context

• An examination of the future likely service demands upon the Council

• Not a service group led approach, but thematic and zero based approach (where possible)

Our Budget strategy 2014/15 to 2016/17 A different

approach but based upon lessons learned

• Not a service group led approach, but thematic and zero based approach (where possible)

• Further examination of our statutory/discretionary spend, the choices that need to be made about

minimum statutory levels of service provision?

• As part of this approach, review previously considered rejected proposals

• How does the organisation need to change to reflect the scale of the challenge?

• What should our City wide regeneration and investment strategy look like?

• Commitment to develop a clear income generation strategy

• Improving our engagement with resident’s, business and key stakeholders

Our Budget strategy 2014/15 to 2016/17 A different

approach but based upon lessons learned

• Clear end of quarter one perspective on:

– Emerging thematic budget proposals, their impacts, political direction

– Future financial, service demands moving forward

– Emerging regeneration and development strategy which will be at the heart of the future

capital programme