The Council’s Budget and Council Tax for 2010-2011

Background Information

To pay for the services it provides, Swindon Borough Council receives grants from the Government (and redistributed business rates) and raises its own income from fees and charges for optional services. The remainder of the funding we need comes from Council Tax.

Councils have three types of expenditure:

• Revenue – (running the council). This is raised from government grant and Council Tax, and is used for running and maintaining council services such as refuse collection, recreation and leisure.
• Capital - (investment). This is raised mainly from borrowing, Government capital grants or money released through the sale of council land or property, and is used for projects such as the new library, new schools and new roads.
• Housing Revenue Account – (providing low cost affordable housing). Funding is also allocated separately for council housing and is raised through rents and Government subsidy. Consultation on rent setting is carried out as a separate project during December and January each year.

Councils are not able to move funding between these accounts.

Where the Council Spends its Money

Gross Expenditure £411.2m

	£M
Schools	£130
Adult Social Care	£60
Revenues and Benefits	£56
Children's Services	£39
Streetscene	£25
Leisure and Culture	£16
Other Service Areas	£85
Total Spend	£411

The Council’s Financial Situation for 2010-2011

Local councils across the country are facing significant financial challenges. The proportion of council funding that comes from government grant has steadily declined over the last few years and this trend has continued for 2010-11, with grant increases below the level of inflation.

Where the Money Comes From

Gross Income £411.2m

	£M
Council Tax	£79
Revenue Support Grant	£9
Business Rates	£41
Net Budget	£129
Dedicated Schools Grant	£112
Fees, Grants etc	£170
Gross Budget	£411

In 2006 the Government introduced a Dedicated School Grant (DSG). As a result, the Council can no longer directly influence the level of funding in schools.

Once we exclude the money that we have to spend on schools, around 60% of council funding comes from Council Tax and only 40% from Government grant. This means that any increased expenditure needs to be funded principally by local taxpayers.

A full copy of the Council’s budget proposals for 2010-11 is available as downloadable PDF files:

• Draft Revenue Budget Proposals 2010/2011 (PDF)
• Appendices 1 and 2 (PDF)
• Apendix 3 - Fees and Charges (PDF)
• Revision to Appendix 3 (PDF)
  
• Draft Capital Programme: Proposed bids for 2010/11 for consultation (PDF)
• Appendix 1 (PDF)

If you would like to make any comments to Swindon Borough Council about the Council’s budget proposals for 2010-11 please write to:

Cllr Mark Edwards
Cabinet Member for Resources and Benefits
c/o The Cabinet Office
Swindon Borough Council
Civic Offices
Euclid Street
Swindon
SN1 2JH

Alternatively, please e-mail us at budgetproposals@swindon.gov.uk