Treasurer's report and financial plan for 2009-2011
LIVERPOOL CITY COUNCIL
Medium Term Financial Plan
2009/10 – 2011/12
Report of the City Treasurer
Robert Corbett (City Treasurer)
Tel: 225 2347 email@example.com
MEDIUM TERM FINANCIAL PLAN
2009/10 – 2011/12
Purpose and Scope 6
Council Vision and Priorities 7
New Governance and Management Arrangements 8
The Medium Term Financial Plan Process 8
The Financial Background 9
• The Recession and Pressures on Local Authority Finances 9
• Population Trends 12
• Deprivation and Specific Grants 15
• Government General Grant Support 16
• Efficiency Guidelines 17
• Financial Standing 18
Budget 2009/10 and Future Financial Forecasts 19
Financial Strategy 24
• Council Tax Strategy 24
• Council Spending 25
• Value for Money Service Reviews 26
• Removal of Grant Floor Protection 27
Efficiency Agenda 27
The Capital Plan 28
Challenges and Risks 29
Contingencies, General Balances and Reserves 30
A Corporate Service and Financial Planning Cycle
B. Budget Framework 2009/10 – 2011/12
C. Financial Summary Model 2009/10 – 2013/14
D. VFM Service Review Programme
E. Government Grants
G. MTFP Risks
Appendix 1 Capital Strategy
Appendix 2 Asset Management Plan
Appendix 3 Capital Programme
Appendix 4 Treasury Management Strategy
MEDIUM TERM FINANCIAL PLAN (MTFP)
• The MTFP for 2009/10 to 2011/12 has been undertaken against a background of the
following significant issues:
o A world wide recession.
o Continuing decline in the city’s population.
o Continuing comparative deprivation and level of specific grants.
o Continuing reduction in the level of government grant support through the
Total Formula Grant (TFG) arrangements.
o A requirement to achieve 3% cash related efficiencies each year.
o Improving the council’s financial standing.
• The Council’s 2009/10 Budget and financial forecasts for 2010/11 and 2011/12
provide for net revenue spending of £482.1m, increasing to £533.4m. The key
financial features for 2009/10 are:
o £13.7m in efficiency savings
o £4.8m in growth items
o £4.4m in service reductions
• The and forecasts also contain provision for a range of initiatives to further the
achievement of the Council’s aims and priorities which are summarised in this MTFP.
• Spending on services is forecast to increase by on average 3.5% per year, before taking
into account efficiency savings.
• With the government likely to continue to reduce Total Formula Grant support the council
will maintain council tax increases at 3.9% to maintain overall available funding of net
expenditure at around 2% increase per year.
• With spending increasing at 3.5% and available funding increasing at only 2% there is
a fundamental financing gap that the Council needs a strategy to address.
• Part of that financing gap can be addressed by using approximately half of the
required annual 3% efficiency savings, however there is a net gap remaining in future
• This net gap arises because the Council’s core expenditure has regularly exceeded
the available funding from government grant and council tax income. As a result, the
Council has by necessity relied upon a range of special finance measures, usually a
series of one off arrangements, to fund core ongoing spending. Although significant
improvement has remained in recent years to reduce the reliance on such measures,
the 2009/10 budget did rely upon special sources of funding totalling £9.5m. This
means that the Council needs to reduce its core spending by £5.8m in 2010/11 and by
a further and additional £3.7m in 2011/12.
• To achieve the required efficiency savings and the required reductions in core
spending, the Council has developed a service efficiency programme and a service
delivery review programme. These reviews will be undertaken during 2009/10 to
produce the savings required in future years.
• It is considered that the government will at some point remove the grant floor
protection arrangements with effect from either 2014/15 (likely) or with effect from
2011/12 (possible). The effect would be a reduction in grant support of either £8m or
£6.6m respectively that will require the Council to reduce its core base level of
spending accordingly. The Council will plan on the basis of the considered likely
implementation as it will allow authorities, like Liverpool, a 3 year planning period to
reduce its spending level.
• The Council will deliver 3% cash related efficiency savings each year. Half will be
used to contribute to reducing core levels of spending and the other half will be used
to reinvest in services to allow the Council to achieve its Aims and Priorities.
• Planned capital investment as summarised in the Capital Programme is directed
towards the achievement of the Council’s Aims and Priorities
• In respect of local sources of capital finance:
o The Council will continue to only provide for revenue contributions in relation
to specific initiatives where it is prudent and affordable.
o The Council will continue to seek best value from the disposal of its assets
and manage spending within available resources, especially during the
period of recession and downturn in the value of properties.
• Since 2004 when the concept of unsupported borrowing was instigated, the Council
has undertaken or committed in total £209.7m in unsupported borrowing towards a
range of regeneration initiatives. The ongoing revenue costs of such borrowing will be
approximately £11m each year which represents approximately 6% of council tax
income. The future potential use of additional unsupported borrowing will therefore be
carefully considered against the principles of being prudent, affordable and
sustainable and future initiatives will need to demonstrate clearly the value for money
• The Budget for 2009/10 provides for the level of balances and reserves recommended
by the City Treasurer and the MTFP provides for further increases to provide prudent
cover for operational risks and uncertainties.
• The primary future uncertainties relating to this MTFP are that:
o The recession has a more significant impact upon the Council’s financial
position than anticipated.
o The government makes decisions as part of the Comprehensive Spending
Review for 2010 that results in material reductions in grant support above
those anticipated in this review.
MEDIUM TERM FINANCIAL PLAN (MTFP)
PURPOSE AND SCOPE
The MTFP is a central strand in the Council’s Corporate Planning Framework. It therefore
closely supports the Sustainable Communities Strategy, Local Area Agreement and the
Council’s Corporate Plan. The MTFP is intended to provide a robust, consistent and
sustainable approach to establishing and maintaining a stable and prudent financial basis
on which improvement and transformation of the Council’s services can progress.
The MTFP is the process which links the Council’s vision and priorities with its financial
budgets and shows how the Council’s finances will be structured and managed to ensure
that this fits with, and supports, the priorities of the Council and its partners.
Each year there is the short-term requirement to prepare an annual budget and set the
Council Tax. The achievement of the long-term Council’s objectives however, with the
planning of new initiatives, capital developments and the allocation of resources in
response to changing service needs, requires service and financial planning to be
undertaken over more than one year. The MTFP therefore looks to take into account the
longer term implications of the following:
• forecast the impact of demographic and other changes on service demands;
• model alternative policies or proposals;
• forecast future resource levels on both revenue and capital;
• relate service demands and priorities to likely resource availability;
• provide a framework within which priorities can be determined;
• provide a financial framework within which business planning can proceed effectively.
In addition to the council’s annual budget the following are the major strategy documents
in support of the MTFP – all of which are identified as appendices:
• Capital Strategy
• Corporate Asset Management Plan
• Capital Programme Summary
• Treasury Management Strategy
COUNCIL VISION AND PRIORITIES
The Council’s long-term aims and priorities are embodied in the Council’s Corporate Plan
and are aligned with the Liverpool Area Agreement and the Sustainable Communities
Strategy, illustrating the Council’s strong commitment to working with partners.
The Council’s long-term aims and priorities are:
Grow the City's Economy
• Make Liverpool a first choice for investment and growth by working with the private,
not for profit and public sectors quickly and effectively with an emphasis on quality of
• Promote enterprise, attract investment through developing the city's co-ordination and
offer across the city region to provide scale, connectivity and sustainability of its
• Increase business density and gross value added (GVA) beyond national levels for
city regions to deliver an environment which provides opportunity, employment and
well-being for our citizens, business and investors.
• Exploit the city's wider cultural advantage to attract and retain visitors, workers and
Empower Our Residents
• Ensure safeguarding and inclusion of the most needy and excluded groups in the city,
providing equality and real opportunity for improvement and enhanced quality of life.
• Confront barriers to employment and training through lack of access, deprivation,
discrimination and poor health to ensure provision of a highly skilled workforce.
• Developing first rate education and training from early years and further position
Liverpool as a prime destination for postgraduate retention.
Develop Our Communities
• Increase peoples' sense of influence in decisions affecting their lives and communities
through an open, fair and accountable neighbourhood-driven processes.
• Challenge crime and antisocial behaviour safeguarding young people from becoming
perpetrators or victims.
• Provide sustainable communities through access to decent homes and best practice in
environment management including, recycling, street cleansing and environmental
enforcement against dereliction and environmental detractors.
The Council’s medium term financial planning is driven by these aims and priorities as
expressed in corporate and business plans. In addition, greater integration of business
and financial planning across both revenue and capital budgets provides for the optimum
allocation of available resources to deliver corporate priorities.
NEW GOVERNANCE AND MANAGEMENT ARRANGEMENTS
To ensure that the efforts of the Council are focused on the delivery of its corporate aims
and priorities, governance and management arrangements have been reshaped so that:
• two named executive members and an executive director are responsible for progress
against each of the Council’s three aims;
• the work of the select committees are more aligned with the corporate aims and
priorities, executive member responsibilities and the strategic partnership boards;
• the management of Council services has been restructured into 78 distinct business
units, grouped in relation to the Council’s three aims to achieve closer focus of
business activity on corporate priorities;
• business unit plans and budgets are developed and presented in relation to that closer
focus on aims and priorities;
• an integrated performance reporting system is developed with lead executive directors
reporting monthly on key actions and performance achieved together with finance, risk
and value for money information in relation to each of the corporate aims; and
• corporate capacity to support business units in delivery of corporate aims has been
improved as a result of the weaknesses identified in the recent corporate assessment
THE MEDIUM TERM FINANCIAL PLAN PROCESS
The MTFP process is an essential element of the Council’s corporate planning process,
providing for the integration of business and financial planning within the over-arching
framework of the Corporate Plan. The approach is designed to ensure that:
• a forward looking financial forecast influences and optimises the development of
• service plans identify the financial and other resource implications of proposed
• forecasts facilitate the allocation and/or re-allocation of resources over time to address
changing community needs and Council Business Units and financial plans can
address key risks to budgets and service delivery.
The MTFP is undertaken within an annual corporate service and financial planning cycle,
summarised diagrammatically in Annexe A.
THE FINANCIAL BACKGROUND
The MTFP for 2009/10 to 2011/12 has been undertaken against a background of the
following significant issues:
a. A world wide recession.
b. Continuing decline in the city’s population.
c. Continuing comparative deprivation and level of specific grants.
d. Continuing reduction in the level of government grant support through the Total
Formula Grant (TFG) arrangements.
e. A requirement to achieve 3% cash related efficiencies each year.
f. Improving the council’s financial standing.
The Recession and Pressures on Local Authority Finances
The following commentary on the recession has been drawn from the following
• CIPFA – Dealing with Recession (January 09)
• LCC - Liverpool Economic Health Check (January 09)
Gross Domestic Product (GDP)
Whilst the national economy as measured by GDP grew by 0.7% in 2008 overall, it
contracted by 0.6% in the third quarter and fell by a further 1.5% between October and
December 2008, the steepest drop since 1980. Two negative quarters means the UK is
now in recession. Estimates vary considerably as to how long the economy may take to
recover but it is generally considered that the downturn will last for at least the 3 year
planning period of this MTFP. The following are some of the key indicators that the
Council will need to react to over the coming period.
The consumer price index (CPI) peaked at 5.2% over the 12 months to September 2008
but fell back to 4.1% in November and 3.1% in December. The retail price index (RPI)
which includes housing costs fell even more dramatically to 0.9%.
Inflation is expected to continue to fall further and there are concerns that the UK could
enter deflation. Deflation would hinder economic recovery as consumers delay making
purchases in the hope of further price falls.
At January 2009 the bank base rate stood at a historical low of 1%, which will have
implications on investment income that local authorities receive. In addition there is
perceived to be an increased risk in investing in institutions offering high interest rates
after the Icelandic Bank crisis. All these factors mean that there is likely to be a reduction
in investment income for local authorities.
Conversely reduced interest rates provide an opportunity for investment and local
authorities may find borrowing more affordable if they are able to identify any adequate
sources of available funds.
In the UK in November unemployment rose to 1.92m - the highest figure for more than a
decade. This took the unemployment rate up to 6.1%, a rise from 5.2% over the last year
- the highest rate since April 1999. The number of people claiming jobseeker's allowance
increased in December by 77,900 to 1.16m, the highest figure since 2000.
The job seekers allowance claimant count is now showing a significant increase to 6.3%.
Over the last twelve months, Liverpool’s rate has increased from 5.1% to 6.3%, an increase
of 1.2% which is in excess of both national and regional increases of 0.9% and 1.0%
JSA Claimant Counts Dec 2007 - Dec 2008
7.0 JSA Claimant Counts, Dec 2007 - Dec 2008
Source: ONS Nomis
Comparing the number of reported vacancies for the third quarter of 2007 with the same
period in 2008, shows a 5.8% decrease for Liverpool, which is significantly better than the
21.4% fall for the North West and 18.7% nationally.
In addition, an assessment of live unfilled vacancies (i.e. those vacancies which the
employer is actively seeking to fill) show that Liverpool again seems to be experiencing a
lower decrease than other areas.
Average house prices show a continuous monthly decline over 2008, falling by 20% over
the year to November 2008. While mortgage approvals declined overall by 52% in 2008,
they declined each month from April to November before increasing slightly in December.
Housing transactions have declined each month since the start of 2007 – down from
152,000 in January 2007 to 53,000 in November 2008. The Council of Mortgage Lenders
predict house sales will half to 700,000 in 2009, compared with 1.6m just 2 years ago.
For the period April - December 2008 major planning applications are down by 53% - 95
major applications received compared to an expected 200 (based on 9/12 of 5 year
average annual total). While smaller applications are down by 21% - 2,291 received
compared to an expected 2,917.
Comparing planning applications received in December 2008 with December 2007, major
applications are down by 58% - 8 received in December 2008 compared to 19 in
December 2007, while smaller applications are down by 6% – 184 received in December
2008 compared to 195 in December 2007.
Effect upon the City Council
The Council will itself be both directly and indirectly affected by the recession.
The Chancellor has indicated that financial settlements for local government are going to
“get tougher” from 2010/11 onwards with even more efficiency targets. Councils already
have to achieve £4.9bn savings in the 3 years to March 2011. The Chancellor set out in
the Pre-Budget Report (PBR) 2008 that a further £5bn of efficiencies across the public
sector will need to be required during the remaining period of the current Spending
Review period. Local Governments share of this amount is to be announced in April 2009
and 2010/11 financial settlements may be adjusted accordingly.
At the same time as grant income may be reducing expenditure is likely to increase
because of increased demand for services, including homelessness, benefits and social
As household incomes reduce there will be pressures over the payment of council tax and
other local authority charges. As a result provisions for bad debts are likely to be
increased. Evidence of this has already been noticed during 2008 in respect of council
The fall in property values has affected the affordability of capital programmes with the
financing of schemes being reliant on the sales of Council assets. These assets will have
fallen in value, with the Land Registry reporting that the fall in property prices for the year
to November 2008 was 12.2%.
The downturn in the housing market with less new houses being built has also reduced
the level of planning fees from applications. Latest Land Registry figures above show a
significant decrease in volumes of house sales over the past year (September 2007-
England & Wales has fallen by 67.9% with the North West showing a decrease of 73.4%.
Liverpool at 52.9% has seen the smallest decrease, lower than the regional & national
averages and all the major cities. As a result planning fee income was down by 38% in
the first 9 months of the financial year compared with the same period a year earlier from
£1.98m to £1.22m.
City Council Response
In response to the recession the Council has established an Economy Review Group lead
by the City Treasurer and the Executive Director leading on “growing the economy”. That
Group reports to both the Executive Board and the Executive Management Team and is
currently evaluating the various effects of the recession on the local economy and the
ways that the Council may contribute to alleviating or offsetting its effects locally.
The Council is particularly keen to support local businesses that are so crucial to the local
A key component of the Comprehensive Spending Review (CSR) 2007 which established
the grant funding for all Local Authorities is population. The CSR 2007 used the 2004
based Sub National Population Projections, produced by Office of National Statistics
(ONS) on which to base future population levels.
These population projections are produced every 2 years based on the latest Mid Year
Estimate (MYE) of population. The latest of projections are based on the 2006 mid year
estimate. These estimates show that Liverpool’s population is continuing to decline albeit
on a slower trajectory than previous decades.
Although the next CSR, scheduled for completion in November 2010 will use 2008 based
population projections, an analysis of the current projections gives the most likely position
for the city which has been taken into consideration in its financial and service planning.
The graph below shows Liverpool’s population loss between 2001 and 2007 and the
future projections to 2017, the period which the next CSR settlement will cover. The
projections use the past 5 year trends and due to the recession do not take into account
any planned regeneration activity which may alter this trend. They are based on the
levels of births, deaths and migration in the city. They represent the best available
evidence at this time about likely future population levels.
These figures show that Liverpool’s population has fallen and is set to continue to fall over
this period. The graph also shows Liverpool’s position vis a vis the average of the other
core cities and the national rate of increase. It is clear that Liverpool is on a different trend
than the national projections for population increase and also all other core cities which
are demonstrating a population increase for this period.
Percentage increase/decrease in population
based on trend derived from Mid Year Estimates
Core City Average
Liverpool City Council has had concerns over the methodology of the ONS MYE and
indeed the conduct of the last Census in 2001. Over the period 2001 – 2007, Liverpool
has seen its population initially forecast to decline, then with MYE revisions, the MYE and
projections showed modest population increases, then finally the most recent revisions to
the MYE methodology revised the city’s population and again showed a decline.
The 2011 Census therefore represents a major opportunity for the city to ensure the
population count for the city is maximised and is the most accurate count possible. The
results of the 2011 census will feed in to and influence future revenue settlements for the
Council and indeed partners in the city for the following 10 years.
Unlike the Census in 2001, ONS are seeking to engage with Local Authorities in the
planning and delivery of the next Census in 2011. The Council therefore have an
opportunity to engage with ONS and influence the delivery of the next Census to ensure it
is as accurate as possible. This may result in a higher population count or simply confirm
the trends which ONS have been producing recently. However either way, the Census will
give the city some confidence in the population estimates for future planning.
Historically there has been a steady decline in the numbers of pupils entering primary
schools. Projections show that this trend will continue until 2011. The trends then reverse
and increases are expected in 2012/13.
Overall trends between 2004 and 2013 are as follows;
Primary Schools - 9.69% reduction
Secondary Schools -18.26% reduction
Sixth Forms 19.41% growth
The growth in pupils remaining in schools to gain A-Levels is distorted as historically there
have been year on year increases, however in 2009 there is a decline and numbers are
not projected to increase back to current levels until 2013. The current economic pressure
may affect the decline as pupils choose to study due to reduced opportunities for
employment or apprenticeships.
Reduced pupil numbers will affect funding from Department of Children’s Schools &
Families (DCSF), through reduced dedicated schools grant allocations, which in turn will
directly affect decisions on the number of teacher positions required and the challenging
decisions re overheads costs.
Year Schools Schools Sixth form
Reception Total Yr 7 to Total Yr 12 to
to Yr 6 Yr 11 only yr 14 only
2004 36,039 28,872 4,512 69,423
2005 34,939 28,359 4,735 68,033
2006 34,220 27,792 4,883 66,895
2007 33,184 26,685 5,199 65,068
2008 32,637 25,858 5,323 63,818
2009 32,115 25,608 5,156 62,879
2010 31,913 25,060 5,076 62,048
2011 31,863 24,685 4,945 61,492
2012 32,208 24,102 4,875 61,185
2013 32,548 23,600 5,388 61,535
Reduction in 000's -3,491 -5,272 876 -7,888
Percentages -9.69% -18.26% 19.41% -11.36%
As people live longer and healthier lives the population projections for the age group
60-85+ shows an overall growth of 6.5% between 2009 and 2017.
Year Overall change
Movement 2009 -
Age Group 2009 2014 2017 2009-2017 2017
60+ 39,000 42,000 43,100 4,100 10.5%
70+ 30,200 28,900 29,500 - 700 -2.3%
80+ 16,400 17,600 18,600 2,200 13.4%
Total 000's 85,600 88,500 91,200 5,600
433,6 432,0 431,60
Total Population 000's 00 00 0
Overall Percentage of
Population 19.7% 20.5% 21.1%
The increase in the aged population is likely to mean that services relating to supporting
individuals to live independently will experience increased demand. The Business Units
directly affected will be those offering care packages and equipment, whilst there may be
a demand for increased benefits re housing or council tax relief.
Pressure on pooled budgets could create issues as criteria for social/health care at the
time of an individual being discharged from hospital drive who incurs the charges. This
could result in more time being spent on resolving any disputes.
However there may be an opportunity to identify services provision which provides an
income in the area of leisure and neighbourhood involvement.
Deprivation and Specific Grants
The latest indices of Deprivation (ID 2007) were published in December 2007, updating
and replacing the 2004 version. The ID 2007 is again analysed by Super Output Area
(SOA) rather than ward.
The indices seek to measure the following;
• Income Deprivation;
• Employment Deprivation;
• Health Deprivation and disability;
• Education, Skills and Training Deprivation;
• Barriers to Housing, and services;
• Living Environment; and
Combined together, these produce the Index of Multiple Deprivation 2007 (IMD 2007).
The IMD 2007 shows that Liverpool continues to be the most deprived local authority in
28 of the most deprived 100 SOA’s nationally can be found in Liverpool. The index shows
that nearly 56% of Liverpool’s residents live in an area that is ranked within the most
deprived 10% in the country (68% live in the most deprived 20%).
The key measures of income and employment provide an indication of the sheer numbers of
people experiencing these types of deprivation. Liverpool is the third and second most
deprived local authority respectively on these two measures with 42% of the population
classed as income deprived and 57% employment deprived.
Partly as a consequence of its deprivation index, the Council receives significant levels of
service and specific grants. In 2009/10 the Council is forecasting to receive
approximately £223.5m of such grants. Whilst in future years the purpose and targeted
initiatives may change, the level of grants support is likely to continue at approximately
this level into future years.
One of the most significant of these grants will be the Area Based Grant which working
with partner organisations will be directed towards the agreed priorities of the sustainable
Government General Grant Support
The government’s general financial support towards local government is the Total
Formula Grant (TFG). As identified above, comparative population trends are a key
element of the formula mechanism.
In 2007 the comprehensive spending review of that year provided local government with a
3 year settlement for the 3 year period of 2008/09 to 2010/11. The year 2009/10
therefore represents the middle year of this 3 year period. The principle behind a 3 year
settlement is that it provides a degree of certainty over the level of general financial
support from the government enabling local authorities to plan accordingly.
Whilst the national average settlement for each of the 3 years was as follows, Liverpool
City Council received the minimum level of settlement.
National Average Liverpool City Council
2008/09 3.6% 2.00%
2009/10 2.8% 1.75%
2010/11 2.6% 1.5%
The principal reason that Liverpool City Council receives only the minimum level of
settlement is that as described above, Liverpool’s population is, based upon mid year
estimate forecasts, declining compared with an increasing population nationally.
As a consequence, the formula grant mechanism would allocate Liverpool a declining
grant settlement. However, the government has recognised that local authorities in this
position need some form of protection and therefore has introduced a grant floor
protection arrangement so that local authorities receive a minimum grant increase each
year regardless of the formula mechanism itself.
For Liverpool, the value of the floor protection over the 3 year CSR planning period is as
However as part of the CSR 2007 consultation, the government did seek the views of
local authorities on options for removing the grant floor protection arrangements. Whilst
the government did not immediately withdraw the protection arrangements, the decline in
the minimum level of settlement indicates a trend.
It is likely therefore that the trend in declining minimum grant support will continue and
therefore the Council should anticipate that the next CSR 3 year planning period
commencing 2011/12, will provide a reduced level of minimum grant support. That
reduced level of support could be a continuation of the current trend of a progressive
0.25% reduction. However, with the anticipated decline in inflation, the government could
effectively reduce a cash grant freeze and therefore provide no further increase in grant.
This is considered the worse case scenario. Currently for planning purposes this MTFP
assumes that the government will continue only with the current progressive reductions.
Progressive Worst Case
2011/12 1.25% 0%
2012/13 1.00% 0%
2013/14 0.75% 0%
However, the government may in addition give further consideration to the removal of the
grant floor protection arrangements completely either in the CSR for 2010 or the CSR for
The implications of this for the Council would be either:
• A reduction in the base level of TFG of £6.6m with effect from 2011/12, or
• A reduction in the base level of TFG of approximately £8m with effect from 2014/15
It is considered that the most likely of these scenarios is that the government will continue
with the decline in the minimum level of grant support as indicated above but advise local
authorities in the CSR 2010 that the CSR for 2013 will no longer provide for grant floor
protection. This would provide local authorities with 3 years to plan for the reductions in
their spending. This MTFP is based upon this key assumption.
Following the removal of the floor the Council can then expect to receive only a modest
annual increase in its general grant support because the trend in population for Liverpool
will continue to be less or against the trend in the national population. For planning
purposes at this stage it is assumed that annual inflation will be back around the
government’s overall target of 2.5% to 3% and that therefore the City Councils TFG will
only increase by 1.5% per year in the CSR period commencing 2014/15;
A further key element of the CSR for 2007 was the government’s expectation that each
local authority would be able to generate 3% cash related efficiencies each year. Whilst
no specific targets were announced, the government has issued guidance to local
authorities on how the value of achieved efficiencies are to be reported as part of the
information included with council tax bills. As part of that guidance the government has
issued a 2007/08 baseline expenditure figure for each local authority.
For Liverpool that 2007/08 baseline is £914.7m and as a result, the assumption is that
cash related efficiencies would be produced as follows;
Revenue Capital Total each Accumulative
Efficiencies Efficiencies year £m
£m £m £m
2008/09 15.6 11.8 27.4 27.4
2009/10 16.1 12.2 28.2 55.6
2010/11 16.6 12.5 29.1 84.7
There is no requirement for local authorities to utilise all of these efficiency savings to
reduce or limit council tax increases. As such it is available for each local authority to use
their efficiency savings as they consider appropriate in respect of the following;
• For reinvestment in services for the achievement of national or local priorities
• Towards delivering a balanced MTFP
• Offsetting an increase in council tax
The Council’s financial standing has been a matter of concern for many years. However,
in 2001/02 the Council embarked upon a strategy to progressively improve its working
balances and reserves to bring about an improvement in its financial standing.
The Council’s gross spending can be analysed into distinct areas, each requiring the risk
associated with that spending to be managed differently.
Schools Based Spending
Under the Council’s local management of schools arrangements each school is
responsible for its own financial affairs and can retain its own balances. The Department
of Children’s Schools & Families (DCSF) has issued guidance to schools advising that
balances of between 2% and 8% are considered reasonable. The schools however may
hold balances in excess of this guidance for specific projects or issues. However, there
are circumstances where due to falling roles in particular, schools are not able to maintain
a working balance and may therefore go into deficit. In the majority of such cases,
management arrangements can be put in place over time to correct the position but
there are occasions were such actions are not likely to be successful and in this situation
appropriate reserves need to be established. It is the Council’s policy therefore to
establish such reserves to avoid any working balance requirement for these issues.
Local authorities act on behalf of the government in administering benefits arrangements
both in respect of housing benefit and council tax benefit. Local authorities receive a
100% grant in respect of these activities, however, any non recovery of overpayments of
benefits are costs that fall upon the local authority. It is appropriate therefore for local
authorities to establish provisions to cover the eventuality that over payments are not
recovered to avoid any working balances requirement for this issue.
Grant Funded Expenditure
Liverpool receives the second high percentage of grant funded expenditure arising
primarily from having as described above the highest level of deprivation. The Council has
well established arrangements for the monitoring and controlling of the grant funded
expenditure, even where the delivery organisation is other than the Council. Regular risks
assessments are undertaken and any potential grant claw-back provided for. In addition,
a general risk provision for grant claw-back has been progressively provided for and is
expected to be approximately to be £5m at the beginning of 2009/10. The setting aside
of these reserves for specific risks reduces the requirement for this issue to be taken into
account in the requirement for working balances.
Base City Council Spending
After taking into account the above categories of spending there is base City Council
spending funded from general resources i.e. TFG and council tax income of
approximately £500m. The Council has established arrangements for the identification
and the provision of specific risks. At the end of 2008/09 it is forecast that there would be
£50m of reserves established for the management of risks.
The level of working balances therefore is to provide for a degree of financial prudence
after taking into account the specific measures identified above. The City Treasurer has
assessed that based upon the specific measures being taken and the level of base City
Council spending that the minimum level of working balances for 2009/10 should be £15m
and that this value should be as a minimum indexed to growth in the City Council’s
spending. However, it would be appropriate if additional contributions could be made to
working balances so that by 2011/12 working balances totalled at least £20m.
In summary the level of balances set out in this MTFP are now more robust and there are
processes now embedded within the management arrangements for establishing
provisions and reserves for the management of risks. However, further reserves may
need to be established to address some of the longer term effects of the recession.
BUDGET 2009/10 AND FUTURE FINANCIAL FORECASTS
The City Council set its for 2009/10 at its Council meeting on the 28th January 2009 and
established the budget framework as set out in Annexe B. The Budget and the future
financial forecasts for the Council directly supports the achievement of the Council’s aims
and priorities, whilst maintaining its drive to improve service delivery and control costs.
During 2009/10 and in subsequent years the Council will continue to work with all its
partners to improve the quality of life and “outcomes” for residents. The Council will also
further improve the value for money of its spending through various service efficiency
gains and service re-profiling.
In addition, the 2009/10 Budget makes provision to respond to the implications of the
economic downturn, the well above inflation rises in energy costs and to operational and
known statutory requirements.
However, the government frequently makes new demands on local government for which
the financial resources to deliver the new requirements either are distributed as additional
specific grants or the additional resources are included within the TFG support. With this
latter arrangement, it is not always transparent what value of additional resources are
made available and whether such resources are adequate to meet the additional
expenditure the local authority will incur.
It is important for financial planning purposes that the implications of potential new
legislation are taken into account and therefore arrangements are in place to monitor
government proposals in the form of Green Papers etc. to ensure that the MTFP will be
updated to take into account potential implications.
The Council’s 2009/10 Budget provides for net revenue spending of £482.1m. The key
financial features are:
• £13.7m in efficiency savings
• £4.8m in growth items
• £4.4m in service reductions
The latter two evidence how the Council is focused on achieving its aims by reallocating
resources to achieve its objectives. Next year, and over the medium term, despite
overall budget pressures the Council will be making £4.8m of additional investment in key
services which directly support the achievement of the Council’s 3 aims
Before finalising the budget proposals the Council consulted widely on what areas of the
Council’s spending most needed improving and what might be the Council’s spending
priorities. The feedback from the consultation overall identified the priorities as services
towards community safety, highways, the environment and children and young people
This budget therefore takes account of this feedback and will enable the Council to take
forward its 3 aims through a range of initiatives including the following:
Grow the city’s economy by:
• Supporting the further development of the Council's cultural strategy, building upon
the success of its year as European Capital of Culture, its international profile to
encourage inward investment, business relocation, European funding.
opportunities, and recognise the positive effect of a forward looking cultural offer on
the economic and social development of the city.
• Identifying a team of Business Champions in all key Council services, who will be
the dedicated contact points to make sure that the city's relationship with the
business community is continually improved.
• Working through Liverpool Vision to set up a pilot a programme that will help
businesses to understand the financial challenges they are likely to face, and to
improve their ability to meet challenges and opportunities ahead.
• Working with the NWDA to streamline and strengthen Local Enterprise Agencies to
make them universally available and easily accessible to hard-pressed
entrepreneurs needing hands-on advice.
• Working with Liverpool public and private sector partners to implement the
outcomes of the very successful recent Skills Summit convened by LCC, and in
- to change cultures and harness enthusiasm, passion, ideas and an appetite for
business at primary school level;
- provide more involvement and greater links between the employers, local
businesses and schools/colleges;
- to take part in the European Week of SMEs, to encourage small and medium
enterprises to reach their full potential;
- to encourage the growth of women’s enterprise and economic development
through the Council’s support for the International Centre for Women’s
Economic Development and Enterprise.
• Continuing to promote and facilitate the growth of the commercial district and city
centre retail including the regeneration of Islington, Ropewalks and Liverpool One.
• Developing an asset rationalisation and investment strategy to help deliver
regeneration activity across the city, specifically looking to bring back into use
derelict sites such as Stonebridge Cross and the Garden Festival Site.
• Promoting and facilitating the redevelopment and regeneration of district and local
centres across the city including Great Homer Street, Park Road and Edge Lane.
• Working with Peel and Wirral MBC to deliver the New Growth Point Programme
recently approved by Government to develop out infrastructure in Northshore /
Develop our communities by:
• Further developing the Neighbourhood Management Service through:
- continuing the delivery of a programme of energy efficiency improvements to
tackle fuel poverty and ensure warm homes assisting 1,944 households since
- continuing the delivery of the Landlord Accreditation scheme with 54 additional
properties accredited since April 2008;
- furthering the 119 disabled Adaptations complete since April 2008 with the
expectation of delivering over 400 adaptations by the end of the financial year;
- Providing loans to households to help them improve their property or buy a new
- Continued delivery of the highly effective Handyperson service.
• Boosting the Anti Social Behaviour service and working more closely with partners
including housing associations and the police to identify problems with tenants on
the ground at a very early stage. The Council already has successful
arrangements with PDG and Riverside and this will be extended to other RSL’s
and could include staff being seconded into LASBU. Where the Council is made
aware of problems it will send a team into the home to take a closer look and find
out if there are more issues that need tackling, eg: truancy, criminality, help finding
work and whether they should be part of the Liverpool Family Intervention
• Creating a new Family Intervention Plus programme which the Council intend to
work with up to 50 gang members and their families to change their behaviour.
The Council has secured £300,000 for this over the next three years and it will be
compulsory for people to take part.
• Tackling youth crime with an intensive challenging and supportive intervention
programme. This is being developed by the Youth Offending Service working with
Children’s Services and the Drug and Alcohol Action team. It will put in additional
support to break the cycle of bad behaviour for those on the verge of criminal
behaviour, and will take punitive action if there is no improvement.
• Creating a new integrated Enforcement team to deliver visible changes across
neighbourhoods, to tackle the major issues that impact upon local environmental
quality particularly around litter, dumping, graffiti, the introduction of a Dog Warden
service to provide full 24hr cover 7 days of the week, following transfer of
responsibility from the Police Authority to Local Authority and enforcing Section
215 powers on derelict properties to improve the rate at which they are brought
back into use.
• The clearing of the “green waste” stockpile.
• Monitoring Section 106 – providing additional funding for the monitoring officer to
ensure existing legal obligations by developers are delivered, and to monitor
Empower our residents through:
• The development of the Building Schools for the Future programme to provide new
and refurbished schools to enhance the learning opportunities available to
Liverpool's young people to achieve educational excellence, and new key assets to
directly assist the further development of Liverpool neighbourhoods along with
continued resource to drive further improvements to the most vulnerable in society
- Reducing delayed discharge from hospital, increasing speed of assessment,
increasing numbers of reviews, increasing numbers of people helped to live at
home, increasing number of people supported into employment and training,
improving services for carers and increasing number of people accessing
services using Direct Payments.
- Targeted Youth Support - Over the next year the Council will be increasing the
range and number of positive activities for young people on Friday nights and
Saturdays, and joining up support around those most at risk of anti-social
behaviour through development of 2 integrated youth and alternative education
provisions which includes capital improvements of £1.4m, in Anfield and Old
Swan. There will be a more co-ordinated approach to school holiday provision
joining up SPLASH and Extended Schools, these activities will further increase
the numbers of young people actively engaged during school holidays and
- Provide free access to Sport and leisure to all Liverpool’s children and residents
who are over 60 years.
- Finalise the plans to invest £50m on the redevelopment of Central Library.
- Introducing a new and exciting partnership with Croxteth “Communiversity” to
extend the role of Croxteth Sports Centre into a community learning resource
In the Council’s Year of the Environment the Council will:
• Improve through further investment the opportunities for residents and businesses
• Invest in existing parks and open spaces such as Stanley Park and Sefton Park
and bring them to green flag standard, to sit proudly alongside the Council’s other
14 parks with this status.
• Continue to improve the physical living conditions of some of the worst private
sector owned housing in Liverpool. Providing support to families and older people
with rising energy costs and health and safety issues in their homes. To champion
a campaign for European funding to be made available for energy efficient homes.
• Work closely with local communities to assist them in developing local food
• Invest to champion an overall reduction in carbon emissions.
• Target the businesses and individuals who flout the law on alcohol and tobacco
regulations and will continue to protect the economy and health of the city by
protecting it from the counterfeit trade.
The Council continues to make annual cost savings and efficiency gains, whilst
endeavouring to protect front line service delivery. For the 2009/10 Budget this includes
the removal from the establishment of unnecessary vacant posts. Furthermore a series of
service reviews for specific areas will be undertaken to deliver further efficiencies and cost
reductions. For example, costs will reduce as increasingly quality and effective social
care is provided directly in people’s own homes and those in receipt of care are offered
the opportunity to purchase the services they believe they require to meet their specific
and agreed needs.
For 2009/10 the budget envisages a total of £4.4m in service reductions or increased
income. A number of these are a direct consequence of the international credit crisis and
the knock-on effect on the national economy.
For example, the budget proposes savings on the budget for staff processing planning
applications, as there has been a marked reduction in the number of applications lodged.
The details of the various reductions are set out in Annexe A attached.
To deliver this budget requires a council tax increase in 2009/10 of 4.45% and, going
forward for financial planning, a council tax strategy of future increases of 3.9%.
The Council’s financial strategy is designed to maintain financial stability and, as far as
possible, avoid large unplanned cuts in services or increases in council tax whilst
ensuring sufficient resources are available to achieve the Council’s aims and priorities.
A robust MTFP has been developed, the objective of which is to ensure that all significant
risks are identified and assessed;
• constraints on capital and revenue resources are recognised and taken into
• Council tax increases are maintained at moderate levels;
• prudent levels of balances, reserves and contingencies are maintained, consistent
with the assessment of risks facing the Council; and
• adequate funding has been provided for;
- estimated impact of unavoidable inflationary cost pressures
- estimated impact of demographic change and service demands where these
- legislative change and changes in the Council’s statutory responsibilities
- service and business planning targets
Council Tax Strategy
In developing a council tax strategy the Council has to balance between the needs of
service users, who are often some of the most vulnerable people in our society and the
burden of the council tax on local council tax payers.
With the government placing constraints upon the level of general grant support the
burden of financing increasing service demand falls primarily upon the level of council tax.
This situation is established by the gearing relationship between variations in spending
and variations in council tax levels. As council tax income provides only approximately
35% of the funding of the net budget requirement, it means that a 1% increase in Council
spending requires a 3.2% increase in council tax to fund it.
This situation has been recognised in recent years and therefore council tax increases
have been above the rate of inflation. It is expected that this trend by necessity will
continue for the foreseeable future.
However the Council has consistently maintained increases within the government’s
guidance so none of the increases have been considered “excessive”.
The previous MTFP projected future council tax increases at 3.9% and the 2009/10
budget and future forecasts continue with this assumption. At this level the increases in
the Council’s general funding resources over the next CSR period would be as set out
below and produces an approximate overall increase in funding of around 2% per year.
To maintain that level of funding in the following CSR period and assuming that TFG will
increase annually by 1.5% requires an annual council tax increase of 3.5%.
TFG increases Council Tax Overall funding
2009/10 1.75% 4.45%
2010/11 1.5% 3.9% 2.3%
2011/12 1.25% 3.9% 2.2%
2012/13 1.0% 3.9% 2.0%
2013/14 0.75% 3.9% 1.9%
2014/15 1.5% 3.5% 2.0%
2015/16 1.5% 3.5% 2.0%
2016/17 1.5% 3.5% 2.0%
NB floor protection removed with effect from 2014/15
The Budget summary approved by the City Council on the 28 January 2009 showed that
forecast spending on services would increase as follows:
2010/11 £517.7m 3.4% increase
2011/12 £536.6m 3.6% increase
Therefore as spending on services increase by on average 3.5% a year, but overall
funding is forecast to increase by an average of only 2% a year, there is a fundamental
financing gap that needs a strategy to address.
Although spending forecasts for the years 2010/11 and 2011/12 do not take into account
any anticipated savings from improving efficiency. It is therefore appropriate to anticipate
using half of the required 3% revenue efficiencies identified above to offset the shortfall in
funding. This will enable the City Council to utilise the other half of the efficiency saving to
reinvest in achievement of its aims and priorities.
2009/10 2010/11 2011/12 2012/13 2013/14
£m £m £m £m £m
Net Budget Requirement 482,087 510,822 533,399 552,020 570,454
Less 1.5% Annual Efficiencies
2010/11 Target -7,766 -7,766 -7,766 -7,766
2011/12 Target -8,049 -8,049 -8,049
2012/13 Target -8,330 -8,330
2013/14 Target -8,622
Adjusted Budget Requirement 482,087 503,056 517,584 527,875 537,687
Forecast Available Financing -482,087 -497,252 -508,090 -518,360 -528,104
Net Gap Remaining Nil 5,804 9,494 9,515 9,583
The table above illustrates, after allowing for annual efficiencies there remains a net gap
in future years. This gap arises because the Council’s core expenditure has regularly
exceeded the available funding from government grant and council tax income. As a
result, the Council has relied upon a range of special finance measures, usually a series
of one off arrangements, to fund core ongoing spending.
Although a significant improvement in comparison with previous years the 2009/10
budget continues to rely upon special sources of funding of a total value of £9.5m.
The Council has however recognised its’ over reliance on the use of special financing
measures and the MTFP forecasts for 2010/11and 2011/12 therefore anticipate the
progressive non reliance on such measures. However, this means that the Council will
need to take the necessary action to reduce its core spending by £5.8m in 2010/11 and
by a further and additional £3.7m in 2011/12.
Therefore, based upon the assumptions set out in this MTFP, the financial summary
position over the next 5 years is as set out in Annexe C and will form the basis for service
and financial planning.
Value for Money Service Review Programme
To achieve the required efficiency savings and the required reductions in core spending,
the Council has developed a service efficiency programme and a service delivery review
programme. The service areas contributing to these programmes are set out in Annexe
D. The appropriate service review process will be undertaken during 2009/10 so that the
full cash related savings are available for the financial years 2010/11 and 2011/12. Whist
no specific targets have been set for any of the individual reviews the various savings
targets required from the two programme areas are considered to be achievable.
Removal of Grant Floor Protection
As identified above, the removal of the grant floor protection arrangement will require the
Council to reduce its base level of spending by approximately £8m with effect from the
financial year 2014/15 if the floor was removed as part of the CSR 2013. This £8m would
be in addition to the reductions in core spending required for 2010/11 and 2011/12.
The financial challenge the Council faces therefore is, in addition to achieving 3% annual
efficiencies, to progressively reduce its core and base level spending on services by
£17.5m in accordance with the following phasing over the current and following two CSR
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17
£m £m £m £m £m £m £m £m
Phase1 5.8 5.8 5.8 5.8/ 5.8 5.8 5.8
Phase2 3.7 3.7 3.7 3.7 3.7 3.7
Phase3 8.0 8.0 8.0
However, if the government decided to remove the grant floor protection arrangements
with effect from the financial year 2011/12 as part of the CSR 2010, then the phasing
profile would be as follows;
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17
£m £m £m £m £m £m £m £m
Phase1 5.8 5.8 5.8 5.8/ 5.8 5.8 5.8
Phase2 3.7 3.7 3.7 3.7 3.7 3.7
Phase3 6.6 6.6 6.6 6.6 6.6 6.6
For the purposes of financial planning and this MTFP it is considered that the most likely
of these scenarios is that the government will continue with the decline in the minimum
level of grant support but advise local authorities in the CSR 2010 that the CSR for 2013
will no longer provide for grant protection. This would provide local authorities with the
additional three years to plan for the reductions in their base level of spending.
To deliver continuing 3% efficiencies, the following arrangements are established;
• the VFM Service Review Programme is set out as Annexe D identifies a range of
service efficiency reviews.
• Each business unit is formulating a business plan to identify how it will deliver
efficiencies over the next 3 years.
• The contracting and financing arrangements of proposed capital spending will be
evaluated to identify the achieved efficiencies.
These arrangements therefore have the following targets;
VFM Service Reviews – Service Efficiency Programme
Business Units Business Plans – Efficiency Programme
Capital Efficiencies 12.2
THE CAPITAL PLAN
The Council’s approach to determining and funding its capital investment programme is
set out in the Capital Strategy (Appendix 1). The proposed Capital Programme for the 3
years 2009/10 – 2011/12 is set out in summary form as Appendix 3.
The main sources of funding available for the Capital Programme as proposed are as
• Supported borrowing
• Capital Grants
• Other third party contributions
• Capital Receipts
• Unsupported borrowing
It is in respect of the latter three of these sources that the council can make decisions
The scope for using revenue resources for capital purposes is limited, given the pressure
on the overall revenue budget. However, options may be available for consideration to
provide more capital funding where this can be shown to be prudent and affordable. The
council strategy in recent years therefore has only been to make provision for revenue
contributions in respect of specific initiatives and not to provide for any general revenue
contribution. This strategy will continue.
Releasing the resources by the disposal of surplus and non operational assets has been
a significant source of capital financing available to the council. However, with the
property market currently in decline reliance on capital receipts over the next 3 years as a
major source of funding of capital expenditure is inappropriate. The council therefore
continues to seek best value from the disposal of its assets and manage spending within
The recession is having a material impact upon the ability of all local authorities to
generate capital resources from the disposal of its surplus assets. In previous years the
Council has regularly relied upon significant levels of capital receipts to finance its capital
investment. However, in preparing the Capital Programme for 2009/10 to 2011/12 more
prudent assumptions have been made.
Therefore the only significant source of local capital resources is from the Council
committing to unsupported borrowing.
The term unsupported borrowing arises because the Council will receive no revenue grant
support towards the financing costs of such borrowing.
However before committing to any such unsupported borrowing, the City Treasurer must
be satisfied that to undertake such borrowing is prudent, affordable and that the financing
costs are sustainable within the context of the MTFP.
Since 2004 when the concept of unsupported borrowing was instigated, the Council has
undertaken or committed in total £220.9m in unsupported borrowing in respect of the
Kings Dock & ACCL 61.2
Picton Pool 12.9
Cruise Terminal 6.4
St George’s Hall 2.3
Corporate Systems 4.9
Customer Focus Centres 2.2
Playing Fields Initiative 3.0
Equal Pay 60.0
Building Schools for the Future 42.0
General Capital Financing 26.0
The ongoing revenue costs of such borrowing will be approximately £11m for each year
which represents approximately 6% of council tax income,
The future potential use of unsupported borrowing will therefore be carefully considered
against the principles of being prudent, affordable and sustainable and future initiatives
will need to demonstrate clearly the value for money benefits.
CHALLENGES AND RISKS
The assessment of the key challenges and risks that could have implications for the
Council’s financial position over the period of the plan is an essential element of the
budget process. This is used to inform decisions about the appropriate levels of reserves,
contingencies and balances that may be required to maintain a prudent and sustainable
financial position. It is therefore important that when amendments are proposed to budget
allocations that spending the ongoing implications are prudent, affordable and
Risks may be categorised in three ways:
• where they would be accommodated within existing financial provisions such as
Business Unit budgets or earmarked reserves;
• where specific risk financing arrangements are in place, such as insurance cover; and
• those which need to be taken into account at a corporate level as part of the budget
process, including such risks as changes in key budget assumptions.
In relation to significant operational risks in Business Unit budgets, these are expected to
be managed within the budget resources allocated to Business Units including, where
provided, earmarked reserves.
In general terms, earmarked reserves are set aside for specific issues that are more likely
to occur but where the financial impact and timing is uncertain. Contingencies are used
for risks that, should they arise, are more likely to materialise in the budget year. General
balances are used, in the main, to cover unknown and unforeseen eventualities and relate
to the overall size of the budget and general level of risk. The requirement is that
business units will develop action plans to contain, wherever possible, spending
pressures that materialise during the financial year with contingencies being called upon
only when unavoidable.
In relation to the risks related to key revenue budget assumptions, those identified for
2009/10 and in the medium term are listed in Annexe G.
CONTINGENCIES, GENERAL BALANCES AND RESERVES
Where financial risks cannot be mitigated or dealt with in other ways, it is essential that
adequate financial cover is provided in the form of contingencies, reserves or balances.
This includes cover for eventualities which are outside the Council’s control. Reserves
and balances should however be set at an appropriate level, neither too low, which would
put the Council at financial risk, nor too high, which would tie up resources that could be
used to deliver Council priorities.
Consideration of the appropriate level of reserves and balances is an integral part of the
Council’s medium term financial planning. There is no “correct” level of reserves
appropriate for the Council. The judgement of the appropriate level flows from the
assessment of the strategic, financial and operational risks facing the Council. Financial
reserves have an important part to play in the overall management of the Council, not
only in covering risk, but also in providing support to the Council to consider more
innovative programmes or approaches to service delivery knowing that there is sufficient
financial capacity to manage any associated risk.
The Council holds a number of earmarked reserves to deal with anticipated risks and to
provide for future developments. These are detailed in Annexe F.
The process of developing the MTFP is continuous. The plan will be subject to review,
within the corporate service and financial planning cycle, in the period up to July and
progress made in putting in place arrangements for rolling it forward for another year. A
key area of focus in that process will be the delivery of the efficiency savings that will be
needed to meet the Council’s medium term aims objectives and deliver improving value
for money services for residents.
CIPFA - Chartered Institute of Public Finance & Accountancy
CPI - Consumer Price Index
CSR - Comprehensive Spending Review
DCSF - Department of Children’s Schools & Families
GDP - Gross Domestic Product
GVA - Gross Value Added
LASBU - Liverpool Anti Social Behaviour Unit
LCC - Liverpool City Council
MYE - Mid Year Estimate
MTFP - Medium Term Financial Plan
NWDA - North West Development Agency
ONS - Office of National Statistics
PBR - Pre-Budget Report
PDG - Plus Dane Group
RPI - Retail Price Index
RSL’s - Registered Social Landlords
SPLASH - Council brand name for summer holiday activities
SOA’s - Super Output Area
SME’s - Small Medium Enterprises
TFG - Total Formula Grant