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BUDGET // ER Magazine


How public sector funding works


T Money from


he Scottish Government is allocated money from Westminster and this is called


the Scottish Block. The Scottish Government then determines how this money will be allocated based on Scotland’s spending priorities. Scottish councils receive money from the


Scottish Government each year to run local services; this is called the Grant Settlement and is a major factor in determining how much the council can afford to spend in a year. Our Grant (general revenue funding), is supplemented by a number of income streams (Fig 1), and through Council Tax revenue - which has remained frozen in East Renfrewshire Council for the past seven years. The more money we collect the more money we have to spend. Combined, the Grant Settlement, Council Tax Revenue, and all additional income, must cover the costs of all the services we provide and those that help us meet our commitment to Scottish Government outcomes.


non-domestic rates


£15.2 million Other grant income £10.2 million


Transport costs


£5.5million


2014/15 budget


£234 million People costs £116.2 million Where we are now


Over the past five years we have seen the level of public spending in the UK reduce significantly. This directly impacts on the level of Grant Settlement available to councils across Scotland. East Renfrewshire Council has worked hard to minimise the impact of reduced funding on frontline services. Our response to the crisis has been to significantly change how we design and deliver local services, and to change how we run our business.


that matter most. Our resolve remains strong as we take further steps to manage the current budget gap of around £20million over the next three years.


By adopting a long-term financial plan we have delivered £32million savings in the past 5 years, whilst continuing to invest in the services


We are taking decisive action to change how we deliver services and to stop doing some things that we currently do.


across the council. We are confident that we can achieve this reduction without the need for compulsory redundancy and believe that many service changes will be to the benefit of those who use them. We have been thorough, fair and


considered in our analysis. We have scrutinised all the available options to save money without jeopardising essential services, losing jobs or risking lives.


The changes we are making will result in a reduction in our workforce by 5% - equivalent to approximately 200 full time posts


Payments to other


organisations £39.3 million


Supplies and services


£29.1 million We would like to remind local people


that East Renfrewshire Council has a strong track record of reducing its spending whilst honouring its commitment to protect services. Particularly those that most support our vulnerable residents, especially young children and the elderly. Despite a very difficult financial


climate, we have continued to invest in East Renfrewshire to deliver new schools and new local facilities, new and improved housing, and safer and cleaner neighbourhoods. We have helped our growing elderly population to be independent and active and to remain living in their own homes. We have continued to support local economic growth through job creation and the ongoing transformation of Barrhead town centre and our local high streets. And we have seen our highest levels of success in education across all of our schools. All this has been made possible by continually modernising how we do things and by removing out-dated processes and practices. We are confident we can continue to deliver.


Other million £6


Property costs


£25.5 million Loan charges £12.4 million


Fig 1: Where our money comes from and how it will be spent.


Money from council tax


£44.5 million


Fees and charges


£10.2 million revenue funding General £153.9million


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