How the Council’s budget has changed compared to 2020/21 | What does Council Tax pay for? | Oldham Council
Get a coronavirus vaccination

Vaccinations are now available to anyone aged 12 or above. Anyone over 12 can book online. Anyone over 16 can visit one of our local vaccine clinics without an appointment.

Get a vaccination

5. How the Council’s budget has changed compared to 2020/21

The following table shows how the net revenue expenditure budget and financing for 2021/22 has changed from the previous year (2020/21). 





Base budget 2020/21




Adjustments to the Base Budget




 - Adjustment for one-off funding and revision to grants




 - Add back Flexible use of Capital Receipts 2020/21 - one-off    financing source




Total Adjustments to the 2020/21 Budget to establish the Base Budget For 2021/22




Flexible use of capital receipts to support the 2021/22 Budget




Expenditure Pressures




 - Pay and Price Inflation




 - Adult Social Care Pressures including Passporting of the Adult Social Care Precept




 - Children's Social Care




 - Educational Services




 - Covid Legacy




 - Loss of Treasury Management Income




 - Unachieved Budget Reductions - Impact of Covid




 - Investment Fund




 - Domestic Abuse Safe Accommodation - new initiative




 - Other Service Pressures




 - Revised Parish Precept




Total Expenditure Pressures




Revision to Levy Charges




Approved Recurrent Budget Reductions by Portfolio




 - Community Health and Adult Social Care




 - Communities and Reform




 - Children's Services




 - Chief Executive




 - People and Place




 - Commissioning




 - Cross Cutting




Total Approved Budget Reductions




Increase in the Net Expenditure Budget




Net Expenditure Budget For 2021/22







Total Financing for the 2020/21 Budget




Changes to Financing for 2021/22




 - Increase in Government Grants




 - Increase in Council Tax Revenue




 - Increase in Retained Business Rates Revenue




 - Collection Fund Adjustment




 - Increase in the Use of Reserves




Total Changes to Financing for 2021/22




Total Funding for the 2021/22 Budget




To maintain services in 2021/22, the Council has added £28.861m to its net budget requirement as a result of a range of expenditure pressures including the legacy issues from the Covid-19 pandemic, increased demand for Adult’s and Children’s Social Care and pay and price inflation.

These expenditure pressures alongside adjustments to the 2020/21 budget of £2.605m, a £0.627m reduction in levy charges, the flexible use of capital receipts at a value of £2.000m and recurrent budget reductions of £8.793m, have increased the net expenditure budget for 2021/22 by £20.046m resulting in a total net expenditure budget for 2021/22 of £254.179m.

The £20.046m increase in net expenditure budget for 2021/22 is financed by an equivalent increase in resources. Government Grants available for general purposes have increased by £12.687m whilst an increase in the level of Council Tax (slightly offset by a reduction in the Council Tax Tax Base) has increased revenue by £2.095m. A net increase in Business Rates revenue has generated an additional £0.195m. The use of reserves has increased by £6.822m and this, alongside a £1.753m negative adjustment relating to the Collection Fund has increased the total financing by £20.046m, producing a balanced budget for 2021/22.

The Budget Council meeting of 4 March 2021 approved a series of measures to address the budget reduction requirement of £27.623m* and deliver a balanced budget for 2021/22. These were:

  • Recurrent portfolio budget reductions of £8.793m and a one-off budget reduction of £0.127m (total of £8.920m);
  • the utilisation of £2.000m of Capital Receipts to finance the delivery of service transformation aimed at generating future efficiencies;
  • the use of Reserves at a value of £16.830m, including, as referenced above, the use of a reserve as a one-off budget reduction of £0.127m.

In accordance with standard practice the budget will be monitored during 2021/22 to ensure any financial issues are identified and addressed.

*This figure disregards a technical adjustment of £25.456m in relation to Business Rate reliefs introduced by Central Government after the 2020/21 budget was set.