National policy and Comprehensive Spending Review headlines

Kevin Brady

National Policy Movements• Localism Bill

– The bill describes the government’s approach of “guided localism”. Its proposals include planning reform, a general power of competence for local government, the power for local people to trigger referenda and the community right to buy and right to challenge.

• Health and Social Care Bill– The bill proposes the abolition of primary care trusts and strategic health

authorities. GP consortia will take on responsibility for commissioning, with other public health authorities passed to local authorities.

• Welfare reform– A large number of reforms are proposed, including the introduction of Universal

Credit, changes to housing benefit and council tax benefit and changes to other benefits such as Incapacity Benefit and Income Support.

• Focus on transparency– For example, councils required to publish spending over £500.

National Policy Movements• Education reform

– Reforms include a review of the national curriculum, introduction of free schools and extension of the Academy programme and introduction of the pupil premium. Educational Maintenance Allowance is to be abolished and tuition fees are being reformed.

• Civil society – The Coalition programme includes support for social action, mutuals and co-

operatives.• Police Reform and Social Responsibility Bill

– The Bill proposes directly elected Police and Crime Commissioners and the abolition of Police Authorities.

• Social housing reform– White paper proposes changes to social housing system, including tenure,

management of waiting lists and the homelessness duty.

Comprehensive Spending ReviewHeadline funding announcements • a 28% cut to local government funding over the next 4 years,

– Cuts to council funding front loaded• a 20% cut to police funding over the next 4 years,• a 25% cut to fire funding over the next 4 years,

– Cuts to fire funding back loaded• Additional £2bn per annum by 2014/15 for adult social care (split

health/local government)• over £4bn of revenue grants transferred to formula grant by

2014/15,• reducing ring-fenced grants from 90 to 10 from 2011/12,• freezing council tax for 4 years with a 2.5% incentive grant.

Comprehensive Spending Review• Community Budgets

– First 16 community budgets, which includes Greater Manchester, rolled out from 2011/12 for families and complex needs

• New Homes Bonus– Intended to incentivise local authorities and communities to support

housing growth. • Giving communities the right to buy or run public assets and

services that might otherwise close or face significant reductions• £470m to support capacity building in the voluntary and

community sector

‘In the current economic climate it is more important than ever that the region speaks with one voice so we can make the strongest possible

case for resources and investment’

Lord Peter Smith, Chair of AGMA

The Greater Manchester Combined Authority

• The first of its type in the country – operational April 2011

• New powers from Whitehall to work more effectively on transport, regeneration and economic development

• More control locally over the issues that affect us all

• Will provide the robust governance arrangements we need to drive private sector growth and plan in a coordinated way to deliver growth

The Greater Manchester

Local Enterprise Partnership (LEP)

• Designed to support business and local authorities to grow the local private sector, tackle major barriers to growth and develop shared strategies for the local economy to increase job creation

• Currently in shadow form – immediate focus on establishing the full LEP

• GM LEP Bid for Round 1 Regional Growth Fund (RGF) submitted to Government January 2011 – will create over 10,000 jobs and generate additional investment of £297m

Local Government Settlement For

Salford City Council

Impact on Salford (2)2011/12 Spending Requirement vs. Available Resources

Spending Requirement Base Budget £230.8mInflation £ 6.7mLoss of Specific Grants £

49.7m - comprising – Area Based Grant £38.4mChildren’s £10.5mAdult Social Care £ 0.8mNHS grant transfers £ 10.7mChildren’s Servs pressures £ 4.5mEarly pension costs £ 3.5m

-----------£305.9m

Total Available ResourcesCouncil Tax £ 91.6mFormula Grant £135.4mSpecific Grants £

29.2m - comprising -Early Intervention £13.1mLearning Difficulties £ 7.1mNHS social care £ 3.6mBenefits Admin £ 2.9mCouncil Tax freeze £ 2.3mHomelessness £ 0.2m

-----------£256.2m

Funding Gap £ 49.7m(Savings Needed)

Key themes of our approach1. Workforce reform2. Income generation 3. Budget adjustments4. Collaboration5. Property6. Service / policy redesign7. Service reduction

Analysis of Proposals accepted so far for consultation

Analysis by theme Amount £m’s

Workforce reform £1.199

Income generation £1.570

Budget adjustments £3.247

Collaboration with AGMA Authorities

£1.317

Property £0.832

Service/Policy redesign £10.664

Service reduction £13.385

Total £32.214

Partnership Priority Objectives

• Worklessness• Child Poverty• Health• Community Safety