Is there a huge election coming up in May? Why, yes! Every single Salford City Council seat is up for election, as is Salford City Mayor, Paul Dennett, and even Greater Manchester Mayor, Andy Burnham.
Could this explain Salford Council setting a very welcome no cuts budget this year, after a decade of cuts?
The Council has set out what it calls a Medium Term Financial Strategy (MTFS) which shows no cuts for the next two financial years – 2020-21 and 2021-2022 – and £3.5million cuts in 2022-23. But adds...
"Critically, this approach depends on the management of funding and reserves over the three year period as a whole, and as set out in this MTFS. Should any of the assumptions set out in this Strategy change either as a result of Government policy changes or the delivery of planned reforms is delayed, the savings requirements in 2021/22 and 2022/23 will be directly affected...
"Whilst the strategy indicates a balanced position for 2020/21 and 2021/22 and a savings target of £3.5m in 2022/23 it is important to recognise that the forecast is sensitive to assumptions made and to some significant risks and uncertainties, particularly the further we get into the later years of the forecast" the Council budget report explains "The forecast and assumptions on which it is based, will be regularly reviewed. It is likely that the working forecast will change, possibly quite dramatically, over time..."
Risks identified by the Council revolve basically around Government funding and the demand for adult and children's support and care needs (which are currently 'pressurising' the system to the tune of £13million). Cynics might argue that the Council is merely pushing financial problems into future years, after the elections...
The Council has managed to produce a no cuts budget without touching its reserves of £13.2million, and without mentioning how it's managing to finance its threatened five outstanding nurseries which dug into its reserves last year. It's huge 83 page budget report is both complicated and unclear.
For this coming no cuts financial year, 2020-21, figures show a 7.8% increase in Salford Council spending power, thanks to an £8.1million Social Care Grant from the Government, over £2million New Homes Bonus from the Government, a £1.5million Settlement Funding Assessment from the Government and just under £9million in increased Council Tax, both from new housing and Council Tax rises, including a 2% increase for adult social care.*
However the Council notes that "The government's calculation of core spending power as the headline figure in its reporting of local government funding is misleading. It does not demonstrate the impacts of inflationary increases and the increasing demands on services, which increase councils' requirement to spend just to maintain a continuing service."
Meanwhile, Council Tax rises in Salford, including the Greater Manchester Mayoral 'precept' will see those living in homes valued in Band E or above facing an increase of over £100...
Band A minus properties will see a rise of £48.29 in Council Tax
Band A properties will see a rise of £57.95 in Council Tax
Band B properties will see a rise of £67.63 in Council Tax
Band C properties will see a rise of £77.27 in Council Tax
Band D properties will see a rise of £86.94 in Council Tax
Band E properties will see a rise of £106.24 in Council Tax
Band F properties will see a rise of £125.57 in Council Tax
Band G properties will see a rise of £144.89 in Council Tax
Band H properties will see a rise of £173.88 in Council Tax
* For more details on next financial year's budget and the costs see also previous Salford Star article – click here
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