Agenda

Disclosure by Members of “Disclosable Pecuniary Interests” (as defined by The Relevant Authorities (Disclosable Pecuniary Interests) Regulations 2012), and Members’ “Personal Interests” in accordance with paragraph 12.1 of Salford City Council’s Code of Conduct for Members.  

H.M. Government’s Provisional Local Government Finance Settlement and Proposed Council Tax and Precept Increases for 2021/22

To be moved by The City Mayor and seconded by Councillor Bill Hinds.

This Council notes that:

i.              on 25^th November 2020, the government set out the outcome of the 2020 Spending Review, suggesting that core spending power for councils in England would increase from £49.0 billion to £51.2 billion in 2021/22, an estimated 4.5% cash-terms increase and a rise on real terms.

ii.            the Ministry of Housing, Communities and Local Government’s provisional local government finance settlement 2021/22 supplies the detail behind the increase and opens a 4 week consultation between 17^th December 2020 and 16^th January 2021.

iii.           the data behind the provisional settlement shows that, when the government suggested in the 2020 Spending Review an estimated 4.5% cash-terms increase for councils in England, they are in fact assuming that councils in England will increase council tax by 2% and the adult social care precept by 3% to raise £1,918.4 billion from council tax payers in England in 2021/22.

iv.           consequently within the Ministry of Housing, Communities and Local Government’s core spending calculations for councils in England, the government contribution element constitutes only13% of the overall increase of £2.2billion - so, of the stated overall increase of 4.5%, only 0.6% or £292.7million relates to the government element.

v.            the government’s 2020 Spending Review and the Ministry of Housing, Communities and Local Government’s provisional local government finance settlement 2021/22 set against a backdrop of 10 years of austerity and local government cuts, which has seen Salford City Council face £211 million in cuts to core government grant and unfunded budget pressures since 2010/11 and an overall reduction in core funding from central government of 53%.  

This Council recognises that:

i.             the underlying assumptions within

           consecutive government

Spending Reviews and the Ministry of Housing, Communities and Local Government’s core spending power calculations for councils in England has been to force councils in England to increase council tax and precepts and passport the costs of any increases onto local council tax payers.

ii.            the government has failed numerous times

           over a number of years to hit its own

           deadlines to publish details of care system

           reforms for adults with disabilities and the

           elderly, which has resulted in the government

           introducing the Adult Social Care (ASC)

           precept in 2016/17, forcing councils in

           England to considering increasing this

           government introduced precept by 13%

           between 2016/17 and 2021/22 with no national

           funding solution still on the horizon.

iii.          the fair funding review for local government

           has also been delayed for a second year, with

           the Ministry of Housing, Communities and

           Local Government confirming in April 2020

           that the implementation of the review will not

           go ahead in 2021/22 to allow councils to focus

           on meeting the immediate public health

           challenge posed by the pandemic.

iv.          council tax and precept increases are

           regressive forms of taxation which impact the

           poorest and lowest paid within

our  ...  view the full agenda text for item 10.

Please note in relation to items 12, 13 , 14, and 15 below, it is requested that, wherever possible, any questions are submitted in writing and e-mailed to the Democratic Services Section at decisionmakingandscrutiny@salford.gov.uk

by no later than 48 hours before the meeting (i.e. by 9.30 am on Monday, 18 January 2021).

·         Cllr Tracy Kelly - Statutory Deputy City Mayor and Lead Member for Housing 

·         Cllr John Merry - Deputy City Mayor and Children’s

and Young People’s Services

·         Cllr Paula Boshell - Lead Member for Anti-Poverty, Neighbourhoods, Financial Inclusion and Equalities 

·         Cllr Bill Hinds - Lead Member for Finance and Support Services (including Workforce and Industrial Relations) Cllr David Lancaster - Lead Member for Environment

            and Community Safety

·         Cllr Derek Antrobus - Lead Member for Planning

            and Sustainable Development

·         Cllr Gina Reynolds - Lead Member for Adult Services,

Health and Wellbeing

·         Cllr David Jolley - Overview and Scrutiny Board

·         Cllr Adrian Brocklehurst - Children’s Scrutiny Panel

·         Cllr Tanya Burch - Community and Neighbourhoods Scrutiny Panel

·         Cllr Margaret Morris - Health and Social Care Scrutiny Panel

·         Cllr Robert Sharpe - Growth and Prosperity Scrutiny Panel

The following reports are submitted for information with the intention they be noted. Members who have any questions, or require further information on the contents of these reports, are in the first instance advised to contact the representatives respectively indicated:-

·         ForHousing (Councillors Bellamy and Dawson)

·         Salford Council for Voluntary Service (CVS) Executive Committee* (Councillors August and Nelson)

    *to follow/be tabled