How we managed resources in 2006/07
Service allocations and variations from the approved budget
For 2006/07 the budget was set at £189.190m. All services are closely monitored during the year as part of the continuous budget process. This process highlights any areas where costs may be exceeded or additional income received and provides an early warning to ensure that if necessary appropriate corrective action can be taken. In the main each directorate is expected to meet any unforeseen expenditure by making compensatory savings elsewhere.
This table shows the allocation of resources in 2006/07 and the impact on service budgets of budget pressures and efficiencies identified during the budget monitoring process.
| Services |
Original budget 2006/07 adjusted for service transfers £m |
Latest estimated costs 2006/07 £m |
Variation (reduction) or increase in spend £m |
|---|---|---|---|
| Chief Executive | 9.478 | 9.378 | -0.100 |
| Children's Services | 44.817 | 45.857 | 1.040 |
| Community Health & Social Care | 66.761 | 66.586 | -0.175 |
| Customer & Support Services | 9.145 | 9.145 | 0.000 |
| Environmental Services | 14.508 | 14.608 | 0.100 |
| Housing & Planning | 29.988 | 30.388 | 0.400 |
| Levies and charges | 21.256 | 21.356 | 0.100 |
| Capital financing | 21.475 | 19.839 | -1.636 |
| Inflation/contingency/centrally held items | -5.691 | -5.002 | 0.689 |
| Net cost of services | 211.737 | 212.155 | 0.418 |
| Reversal of capital charges* | -20.018 | -20.018 | 0.000 |
| Contribution from General Fund Reserves | -2.529 | -2.947 | -0.418 |
| Budget requirement 2006/07 | 189.190 | 189.190 | 0.000 |
In 2006/07 we have continued to incur significant spending pressures in adult social care, children’s services and seen a sharp rise in the costs of trade waste. These increases have been offset by reductions achieved elsewhere in the revenue budget including increased investment income and savings made from the rescheduling of our debt.
One exceptional matter that has arisen in the year has been the need to negotiate a settlement of equal pay claims. It is anticipated that all outstanding claims will be settled by 31st March 2007. The anticipated total cost of these claims is £6m, of which £0.6m will be met from schools via the dedicated schools budget. The government has allowed us to charge £3.4m of this cost to our capital budget, which leaves a balance of £1.9m to be funded from our revenue budget. This increased cost has been partially offset by the release of provisions, which are no longer required. These amount to £1.5m and were originally set aside for insurance payments and as a safeguard for the loss of government grant. This leaves a net contribution from our reserves of £0.418m.
A summary of the major variations is given in the table below:-
| Children's Services Approved budget 2006/07 | £189.190m | |
|---|---|---|
| Major service variations: | ||
| Increased cost associated with the placement of Salford children in care establishments based outside Salford | £0.860m | |
| Increased costs of home to school transport | £0.450m | |
| Children's Services & Social Care | ||
| Increased costs associated with nursing and residential care including private providers | £1.070m | |
| Capital financing debt rescheduling savings resulting in reduced cost of borrowing and increased interest on investments | £-1.636m | |
| Environmental Services - increased costs of the disposal of trade waste | £0.222m | |
| Levies and charges - additional cost of one off initiatives | £0.100m | |
| Efficiency savings including management of staffing vacancies use of service provisions and reserves | £-0.868m | |
| Other minor variations | £-0.199m | |
| £-0.001m | ||
| Central variations: | ||
| Cost of settlements of equal pay claims | £1.919m | |
| Use of excess provisions relating to insurance and repayments of grant | £-1.500m | |
| £0.419m | ||
| Net contribution from reserves 2006/07 | £-0.418m | |
| Outturn budget 2006/07 | £189.190m |
The Council's spending plans 2007/08
This page was last updated on 01 June 2007
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