The following table shows how the net revenue expenditure budget and financing for 2018/19 has changed from the previous year.

 

£000

£000

Budget Adjustments

 

 

Favourable Adjustments

 

 

MRP Voluntary Contribution Adjustment

(7,465)

 

Other adjustments including reduction in investment fund

(1,903)

 

GMCA Contribution

(466)

 

Total Favourable Adjustments

 

(9,834)

Expenditure Pressures

 

 

Adjustment for use of Reserves in 2017/18

6,525

 

Adult Social Care Demand & NLW

7,384

 

Passporting of Adult Social Care Precept (ASCP)

1,672

 

ASCP Prior Years Impact of Increases to the Taxbase

44

 

Support for Social Care

701

 

Demand pressures Children's Services

8,063

 

Early Help Initiative

689

 

Special Educational Needs and Disabilities (SEND)

500

 

Pay and Price Inflation

2,524

 

Pensions

286

 

Levies - Waste

221

 

Levies - Transport

33

 

Environment Levy

2

 

Development Fund

500

 

Homelessness

412

 

Home to School Transport

252

 

Impact of changes in Early Years Funding

233

 

Coroner's Service

50

 

Revised Parish Precept

7

 

Total Expenditure Pressures

 

30,098

Total Net Budget Adjustments

 

20,264

Less Changes in Funding

 

 

Reduction in Government Grants

 

 

Business Rates Top Up Grant

(6,772)

 

New Homes Bonus Grant

(1,183)

 

Education Services Grant

(774)

 

Adult Social Care Support Grant

(426)

 

Independent Living Fund

(87)

 

Housing and Council Tax Benefit Administration Grant

(74)

 

Total Reduction in Government Grants

 

(9,316)

Increase in Government Grants

 

 

Improved Better Care Fund Grant

7,172

 

Grants in lieu of Business Rates

3,206

 

Other Non Ringfenced Government Grants

59

 

Total Increase in Government Grants

 

10,437

Locally Generated Income

 

 

Additional Council Tax Income

4,480

 

Saddleworth Parish Council Precept

5

 

Shaw Parish Council Precept

2

 

Retained Business Rates

706

 

Total Changes in Locally Generated Income

 

5,193

Total Changes in Funding

 

6,314

Total Savings Requirement

 

13,950

Budget Reductions by Portfolio

 

 

 - Health and Wellbeing

(701)

 

 - Economy, Skills & Neighbourhoods

(272)

 

 - Corporate & Commercial Services (Including Capital and Treasury)

(5,270)

 

 - Chief Executive

(443)

 

Total Budget Reductions

 

(6,686)

Revised 2018/19 Budget Position

 

7,264

Approved Use of Reserves

 

 

Use of Reserves to Support Budget Reductions (approved 2016/17)

 

(250)

Early Help Initiative Reserve (approved January 2017)

 

(689)

Revised Gap after Previously Approved Use of Reserves

 

6,325

Business Rates Additional Resources (Reserves)

 

 

2017/18 Small Business Rates Relief Threshold Change Compensation

 

(1,358)

2017/18 Business Rates Retention Pilot Reserve

 

(1,300)

Revised Gap after Business Rates Adjustments

 

3,667

Use of Corporate Reserves to Balance the Budget

 

(3,667)

Net Balanced Position

 

0

To maintain services, in 2018/19 the Council has had to add £20.264m to its net budget requirement, largely due to price inflation and increased demand for Children’s and Adult’s Social Care.

Government Grants available for general purposes have reduced by £9.316m which contributes to the overall savings requirement for the Council. The Government however has recognised the need for additional support for Adult Social Care Services and has provided a ringfenced grant of £7.172m which is passported direct to services.

The Government has not provided any additional funding to address the current high demand for services in Children’s Social Care. As a consequence, additional costs of £8.063m have had to be supported by the Council.

The Government has provided £3.206m Grants in Lieu of Business Rates which has an equal and opposite reduction to the amount the Council can collect locally as Retained Business Rates and therefore does not increase the spending power of the Council.

Changes to locally generated income arise from an increase in the Council Tax taxbase, Council Tax increases, an increased Business Rates taxbase and increased Business Rates Multipliers. The increases for 2018/19 generate additional income at a value of £5.193m.

The required net budget adjustments of £20.264m, less the additional income from changes in funding at a value of £6.314m, result in a total 2018/19 budget reduction requirement of £13.950m.

The Council has therefore approved portfolio budget reductions of £6.686m, the use of specific reserves at a value of £3.597m and the use of Corporate Reserves at a value of £3.667m, therefore achieving a balanced budget for 2018/19.

The Government has announced that it intends to continue reducing funding support for the Local Government sector still further in 2019/20 and beyond. The Council will therefore continue to face further challenges in order to balance its budget in 2019/20 and future years as more Government funding is withdrawn.