Welcome to the Leeds City Council financial plans page for 2016/17. Our ambition is for Leeds to be the best city in the UK: one that is compassionate with a strong economy that tackles poverty and reduces inequalities. The Best Council Plan, updated for 2016/17, sets out the Council’s priorities and is supported by the suite of financial plans that can be found in the Documents section.
These plans include:
- Annual Financial Plan 2016/17
- Revenue Budget and Council Tax report 2016/17
- Initial Budget Proposals report 2016/17
- Capital Programme update 2016 – 2019
- Housing Revenue Account (HRA) Investment Strategy 2016-2024
Our revenue budget of £496.4m was agreed on 24th February 2016. The annual budget is funded from a number of sources, the most significant being council tax, business rates, general government grant (known as Revenue Support Grant) and income from fees and charges. Schools are funded separately from a specific government grant, which means that business rates and council tax do not contribute directly to the running of schools. However, they do help pay for local education authority responsibilities and adult and community learning.
Once again, we have had to prepare our annual budget within the limits set by the Government’s deficit reduction plans. Our annual budget is set within the context of the 2015 Spending Review and Autumn Statement, which set out the Government’s plans for spending on public services through to 2019/20. Reductions in public expenditure are expected to continue throughout the current Parliament.
The Government has announced a new power for local authorities with social care responsibilities to increase council tax by up to an extra 2% per year for adult social care. The Leeds element of council tax for 2016/17 is therefore increasing by 3.99%, made up of a 1.99% core increase plus 2% exclusively for adult social care.
For Leeds, between the 2010/11 and 2015/16 budgets, funding from government reduced by around £180 million. In addition we have faced significant cost pressures, particularly within adults’ and children’s social care, as well as reductions in income due to the general economic climate.
Whilst we have responded successfully to these financial challenges, our net budget will reduce by a further £31 million in 2016/17. Our budget strategy sees many areas of the Council continuing to reduce budgets, in some cases through significant changes to the way the Council operates. The strategic framework outlining how we will allocate resources and respond to financial pressures is detailed in the Best Council Plan. We will continue to work with partners across the city and we remain committed to tackling inequalities through building a strong economy, being a compassionate city and being a more efficient and enterprising organisation:
- Over 60% of our expenditure for 2016/17 will be on Adult Social Care and Children’s Services
- We have taken difficult decisions about the level and quality of services and how they should be targeted towards those with the greatest need. However, we continue to invest in prevention and early intervention, particularly in Adult Social Care and Children’s Services, so that more people can get the support they need at an earlier stage.
- New and different delivery of internal support services will generate savings of £2.9 million in 2016/17.
- We are continuing our restorative practice approach of working with children and families rather than doing things for them, providing high support and high challenge and empowering children and families to make positive decisions about their lives.
- £232,000 is to be provided for a new initiative to tackle domestic violence through a faster and more coordinated response alongside colleagues from other agencies.
- In the city centre we have reduced our office accommodation from 17 to 8 buildings, and numbers will fall further following the refurbishment of Merrion House. Savings of £1.1 million are forecast for 2016/17.
- Staffing levels across the council continue to be reduced, and we are forecasting a reduction of 299 full time equivalent members of staff by 31st March 2017. We will continue to move to becoming a Real Living Wage employer, with a minimum £8.01 per hour rate paid to all staff from April 2016.
- The long term waste strategy for the city is enabling us to deal more effectively with the city’s waste and to deliver savings of £4.7million in 2016/17, including substantial savings from the new Recycling and Energy Recovery facility which opened in 2015/16.
- We plan to increase our income from trading activities. Leeds is one of 6 approved Improvement Partners for the Department for Education, and is now developing a model for providing improvement support to other local authorities. The 2016/17 budget assumes £0.5m income for 2016/17.
- We continue to work with partners across the city to make the best use of joint resources. We work closely with NHS colleagues to reshape health and social care provision, to meet the challenges of higher life-expectancy and increasingly complex needs and to support people to remain living independently.
Our capital programme update for 2016-2019 was also approved on 24th February 2016. This significant investment programme will deliver capital investment of £932m over the three year period 2016/17 to 2018/19, meeting the following investment objectives:
Improving our assets
Investing in major infrastructure
Supporting service provision
Investing in new technology
Supporting the Leeds economy
A summary of the major schemes can be found in the capital programme which is available from the Documents section.