Overview of 2009/10
The 2009/10 financial year has been an extremely challenging one as the adverse economic conditions continue to have an effect on our services and finances. Shortfalls in income continue in several service areas, such as planning fees, land searches and commercial rents. The capital receipts from selling our surplus assets and council tax from new property continue to dry up as developer confidence has disappeared.
In Children's Services there continues to be an increase demand on our care services and for costs associated with special needs children which has led to a rise in the number of children placed in establishments outside of Salford.
The above mentioned service increases are considerable but they have been more than offset by significant reductions achieved elsewhere in the revenue budget, these include the use of excess funds and provisions, including that provided for pay awards. This use of funds and provisions are of a one off nature which will not help to alleviate budget pressures in the long term. We expect to underspend on our budget plans by £2.3m for 2009/10. This will provide added reserves that can be used to help ease some of the pressures next year. We have also maintained our three star rating for the use of resources as assessed by the Audit Commission in what continues to be an increasingly challenging regime.
This sound financial platform has therefore helped us to prepare a budget for next year from a position of strength and so maintain the key objectives in our medium-term financial strategy.
Details of the major variations are given below:
| Major service variations |
Million pounds |
| Children with special needs - increased use of non maintained special schools and outside placements |
2.2 |
| Use of dedicated schools grant 10/11 to cover the above and other minor costs |
-2.2 |
| Children in care - increased need for outside placements and other minor variations |
0.6 |
| Children's Services total |
0.6 |
| Major service variations |
Million pounds |
| Delay in the implementation of think efficiency proposals |
0.3 |
| Management of staffing vacancies and other minor variations |
-0.3 |
| Community, Health and Social Care total |
0.0 |
| Major service variations |
Million pounds |
| Losses of income from land charges and service level agreements |
0.4 |
| VAT windfall income |
-0.4 |
| Customer and Support Services total |
0.0 |
| Major service variations |
Million pounds |
| Reduction in income from building control and planning fees, rent income and accommodation recharges |
1.3 |
| Additional housing and planning delivery grant |
-1.0 |
| Utilisation of unspent balance on supporting people grant |
-0.9 |
| Sustainable Regeneration total |
-0.6 |
| Major service variations |
Million pounds |
| Waste disposal levy reduction - continued delay in implementation of waste PFI contract |
-0.3 |
| Levies and charges total |
-0.3 |
| Major service variations |
Million pounds |
| Reduced interest charges from the rescheduling of debt |
-1.0 |
| Capital financing total |
-1.0 |
| Major service variations |
Million pounds |
| Review of insurance fund - use of excess balance |
-0.5 |
| Review of general funds and provisions - use of excess balances including pay award provision |
-1.1 |
| Shortfall in car allowance efficiency proposal |
0.3 |
| Airport dividend reduction |
0.3 |
| General total |
-1.0 |
The budget strategy 2010/11 to 2012/13
This page was last updated on 5 May 2010
