COUNCIL TAX
2017-2018
How much you pay…
How it’s spent…
YOUR COUNCIL TAX BILL
This year is set to be the toughest yet for council
services in Sunderland.
Since 2010 we have had to save over £250m as a
result of Government funding cuts and unfunded
spending pressures. This year alone we need to
save almost £45m.
In 2017-2018 we will spend £633m on public
services to the 277,150 residents of Sunderland.
By 2020 we estimate we will have had to save the
equivalent of a further £595 per each of the city’s
125,000 households.
Not everyone realises that only 14 pence in every
pound of the council’s income comes from the
Council Tax – in Sunderland the majority of council
funding comes from Government grants.
The scale of cuts and cost pressures over the last
seven years means we are no longer able to fund
frontline services to the level we want to.
We have tried to protect residents as much as we
can, but we continue to face very difficult decisions
because of year on year Government cuts.
The decision to raise Council Tax is one of those
hard choices. Not raising the Council Tax would
mean cutting services even more - including
services to the most vulnerable in our communities.
moving to alternate weekly refuse and recycling
collections into key areas like grass cutting, removing
fly tipping and environmental enforcement.
We’re also providing some additional funding for
youth activities, libraries, business investment and
tourism - which are all areas we know are important
to residents.
It’s also essential that we continue to work with our
partners and invest in Sunderland’s infrastructure
and economic regeneration. This is vital if we are to
deliver more and better jobs and economic growth
and make the city more attractive to residents,
visitors and businesses.
Much of this work is already underway. Within
the council’s capital programme for 2017-2018
to 2020-2021 over £319m of capital spend
is proposed including over £156m to be spent
in 2017-2018. This funding, together with
other public and private sector investment is set
to transform the face of the city over the
coming years.
We’ve included information in this leaflet to show
where the council’s money will come from and how
it will be spent over the next financial year.
That’s why we have taken the very difficult decision
to raise council tax to protect services from further
cuts. The increase of five per cent includes the three
per cent social care precept mandated by the
Government specifically to support adult social care.
The precept is anticipated to raise £4.2m and will be
used to help support older and vulnerable people in
care homes, and more than 1,600 people who
receive care in their own homes.
For the majority of households who live in Band A
properties this is an increase of 79p a week. For a
Band D property it’s £1.18 a week.
We recognise the impact cuts to key frontline
services have had on some communities. That is
why we’re reinvesting the money saved from
2
Cllr Paul Watson
Irene Lucas CBE
Leader of
Sunderland City Council
Chief Executive,
Sunderland City Council
WHAT YOU PAY
The amount of Council Tax you pay depends on the value of your home. More valuable properties pay more
Council Tax. Each home is placed in a valuation band based on what your home was valued at in 1991. This
table sets out the Council Tax levels for 2017-2018 for each valuation band.
Your Council Tax bill states the band that applies to your property. It is important to note that residents in
most of Sunderland will pay the Total Council Tax level in column 5. Residents of Hetton will pay the Total
Council Tax level in column 7.
1
2
Valuation
Band
City
Council
Tax level
3
Tyne and
Wear Fire
and Rescue
Authority
Tax level
4
5
Police
and Crime
Commissioner
for Northumbria
Tax level
Total
Council
Tax level
6
7
Hetton residents only
Hetton Town
Council Tax
level
Total
Council
Tax level
£ p
£ p
£ p
£ p
£ p
£ p
A
863.21
51.75
65.55
980.51
9.45
989.96
B
1,007.08
60.37
76.48
1,143.93
11.03
1,154.96
C
1,150.95
69.00
87.40
1,307.35
12.60
1,319.95
D
1,294.82
77.62
98.33
1,470.77
14.18
1,484.95
E
1,582.56
94.87
120.18
1,797.61
17.33
1,814.94
F
1,870.30
112.12
142.03
2,124.45
20.48
2,144.93
G
2,158.03
129.37
163.88
2,451.28
23.63
2,474.91
H
2,589.64
155.24
196.66
2,941.54
28.35
2,969.89
3
YOUR COUNCIL TAX HEL
Children’s services
three years. It provides social care services to more
than 6,000 adults across 16 different services including supported living schemes, day centres
and short break care services.
Culture and leisure
Providing services that help prevent and
reduce the risk of harm to vulnerable children.
Working to ensure the best possible education
and outcomes for all our children, young people
and families.
From April 2017 Together for Children will be
operational, a new company wholly owned by the
council but operating independently, to lead the
transformation of children’s services and
safeguarding in the city.
Adult services
Providing sport, leisure and wellness centres,
museums, libraries, theatres and other visitor
attractions and events.
The city library has now been rehoused in
Sunderland Museum, creating a cultural hub in the
city centre and planning is well underway for The Tall
Ships Races, expected to attract over 1 million visitors
to the city in 2018.
Responsive local services, refuse
collection and disposal
Supporting vulnerable people to help them
live as independent, healthy and active a life
as possible.
Sunderland Care and Support has been operating
as a trading company of Sunderland City Council for
4
Collecting and recycling rubbish, street cleaning,
maintaining parks and open spaces and everything
that helps keep the city clean, green and attractive.
LPS PAY FOR ALL OF THIS
Highways
Contingencies
Maintaining over 750 miles of roads,
1,500 miles of footway and 48,000
street lights across the city.
While all known spending pressures
have been provided for within the
budget, there is still uncertainty over
some costs and it is important that we
have sufficient contingencies to meet
emergency funding requirements.
Housing services
Making sure that everyone has the
chance of a decent home and help,
when needed, with Housing Benefit.
Planning and economic
development
Helping to attract new businesses to
the city and working with existing ones
to help them grow.
Levies
Sunderland City Council pays direct
levies to the North East Combined
Authority to provide financial support
to help fund public transport, the
Environment Agency to support
flood defence works and the
North East Inshore Fisheries
Conservation Authority.
Other services
These include the central services
which keep the rest running, such as
finance, human resources and
governance services.
Precepts
Sunderland City Council collects
your contributions towards the cost
of Police and Fire and Rescue services,
based on the precepts which are set
by them.
HOW RESIDENTS HELP SET THE BUDGET
This year’s budget consultation took place in two phases between October 2016 and January 2017.
Residents, businesses and community groups were encouraged to give their views, including via a
phase one and phase two survey. Of the respondents who completed the survey, 77 per cent
supported an increase in Council Tax; 58 per cent supporting an increase within the governments
referendum limit and 19 per cent an increase above the referendum limit. All of the comments and
opinions received were used to help us make sure we are focussing our resources on the things that
really matter to people.
5
WHERE THE MONEY WILL COME
FROM IN 2017-2018
The council provides a wide range of services including schools, caring for the elderly, collecting rubbish and
providing leisure facilities. The cost of running and maintaining the day-to-day services provided by the
council is called Revenue Expenditure. The Council Tax you pay forms only part of the funding to pay for
these services. The chart below shows that over half of the money comes from grants from the
Government and the remainder from Council Tax, Retained Business Rates and income received from users
of council services.
Retained
Business Rates
£41.7m (6.6%)
Fees and
Charges
£42.1m (6.7%)
Top Up Grant
£40.7m (6.4%)
Revenue
Support Grant
£44.7m (7.0%)
ME
O
C
Total Income
£632.9m
Other Income
R
HE
OT
Use of
one-off
Resources
£6.4m (1.0%)
(including Grants,
Contributions and
Reimbursements)
O
VE
RN
ME
NT FUNDED
Council Tax
£88.2m (13.9%)
LOC
AL
IN
Council Tax
Adult Social
Care Precept
£4.2m (0.7%)
G
£55.3m (8.7%)
Capital Charges
and IAS 19 Entries
£21.8m (3.5%)*
Specific
Government Grants
£287.8m (45.5%)
*Capital charges and IAS19 amounting to £21.8m are included in gross expenditure and income in
accordance with the Service Reporting Code of Practice. This has no impact on the level of Council Tax.
STATEMENT CONCERNING ADULT SOCIAL CARE FUNDING
The following statement has been prescribed by government for
inclusion with Council Tax Billing information. The total council tax raised
for 2017-2018 now includes the cumulative impact of a 2% social care
precept raised from 2016-2017 (£1.6m) and an additional 3% social care
precept raised from 2017-2018 (£2.6m). This additional £4.2m will help in
meeting expenditure on adult social care.
6
The Secretary of State for Communities an
to adult social care authorities. (“Adult soc
which have functions under Part 1 of the C
England, district councils for an area in Eng
council, London borough councils, the Co
the Council of the Isles of Scilly).
WHERE THE MONEY WILL BE SPENT
ON SERVICES FOR 2017-2018
The chart below shows what the council plans to spend on its services in 2017-2018.
Total or gross expenditure is the total revenue costs of running council services before any income from
grants, fees and charges are taken into account.
Capital Financing
£19.7m (3.1%)
Contingencies
£8.8m (1.4%)
Levies
£16.0m (2.5%)
Other Services
£28.4m (4.5%)
Education
Services
£146.8m (23.2%)
Public Health
£24.0m (3.8%)
Housing
Services
£128.4m (20.3%)*
Total Expenditure
£632.9m
Children’s
Social Care
£44.5m (7.0%)
Environmental
and Regulatory
Services
(including Waste
Collection, Disposal
and Recycling)
Adult
Social Care
£131.2m (20.7%)
£28.7m (4.5%)
Planning Services
(including all economic
development activity)
£16.3m (2.6%)
Cultural and related services
(including Libraries, Leisure and open spaces)
£10.7m (1.7%)
Highways and
Transport
Services
£29.4m (4.7%)
*This excludes council housing costs as the council does not hold a social housing stock. This expenditure
mainly relates to Housing Benefit payments.
nd Local Government has made an offer
ial care authorities” are local authorities
Care Act 2014, namely county councils in
gland for which there is no county
mmon Council of the City of London and
The offer is the option of an adult social care authority being able to charge an
additional “precept” on its council tax for financial years from the financial year
beginning in 2016 without holding a referendum, to assist the authority in meeting
expenditure on adult social care. Subject to the annual approval of the House of
Commons, the Secretary of State intends to offer the option of charging this
“precept” at an appropriate level in each financial year up to and including the
financial year 2019-20.
7
THE MAJOR ISSUES IN SETTING THE
2017-2018 BUDGET
The cost of services
The budget for the next financial year has been
prepared taking account of the continued
significant grant reductions from central
government and the increase in costs to provide
council services.
In addition to services provided by the council,
other bodies including the Police and Crime
Commissioner for Northumbria and the Tyne and
Wear Fire and Rescue Authority also provide
services which the council must take into account.
This table gives a summary of the net cost of these
services for 2017-2018 and how the Council Tax for
Band D is built up.
During the budget process, the council has
used balances of £6.4m from the Medium Term
Planning Smoothing Reserve in order to address
spending pressures.
Last Year
2016-2017
£m
83.363
This Year
2017-2018
£m
Summary net cost of services
City Council (including Levies)
Band D
Council Tax
£ p
89.914
1,294.82
5.142
Tyne and Wear Fire and Rescue Authority
5.387
77.62
6.305
Police and Crime Commissioner for Northumbria
6.824
98.33
94.810
102.125
1,470.77
In addition Hetton Town Council will levy a precept of £50,875 in 2017-2018, equivalent to a Band D charge
of £14.18 (£13.63 in 2016-2017) but this is only paid by the residents of the Parish of Hetton Town Council.
Cost per head of population
The table below shows the total cost to each person in Sunderland of services provided by the council and
Precepting Authorities, after taking account of the income received from Revenue Support Grant and
Business Rates.
Total Net Budget
Requirement
£
City Council
Tyne and Wear Fire and
Rescue Authority
Police and Crime
Commissioner for
Northumbria
Total
Government
Funding*
£
Collection Fund
(Surplus)/
Deficit
£
Council Tax
Requirement
£
791.75
(308.17)
(150.32)
(9.02)
324.24
42.70
(19.60)
(3.58)
(0.12)
19.40
232.59
(198.38)
0.00
(0.78)
33.43
(9.92)
377.07
1,067.04
(526.15)
*Reflects Revenue Support Grant and Top Up Grant
8
Retained
Business
Rates
£
(153.90)
BUDGET INFORMATION
SUNDERLAND CITY COUNCIL
BUDGET INFORMATION
The council plans to collect £6.5m more from
council tax payers in 2017-2018 than it did in 20162017. This is because of a reduction in government
funding and an increase in spending pressures.
Details are shown in the table opposite.
£m
Government Funding Changes
11.6
Spending Pressures (including one-off)
33.1
Planned Budget Savings
(30.7)
Use of Smoothing Reserve
(6.4)
Movement in reserves within service lines
(1.1)
Total
6.5
Last Year 2016-2017
This Year 2017-2018
Gross
Expenditure
£m
Gross
Income
£m
Net
Expenditure
£m
Gross
Expenditure
£m
Gross
Income
£m
131.4
58.4
73.0
Adult Social Care
49.0
2.2
46.8
Children’s Social Care
165.5
143.2
22.3
Education Services
12.7
1.0
11.7
28.0
7.0
131.2
59.4
71.8
44.5
1.7
42.8
146.8
126.9
19.9
Cultural and Related Services
10.7
0.8
9.9
21.0
Environmental and Regulatory Services
28.7
7.5
21.2
Highways and Transport Services
29.1
11.4
17.7
131.4
125.7
5.7
Housing Services (non council housing costs)
15.3
8.0
7.3
26.5
26.5
23.2
6.2
Net
Expenditure
£m
29.4
12.2
17.2
128.4
125.6
2.8
Planning Services
16.3
9.2
7.1
0.0
Public Health
24.0
24.0
0.0
17.0
Other Services
27.5
6.8
20.7
0.0
6.9
(6.9)
Other Core Grants
20.3
0.0
20.3
Capital Financing Costs
632.4
396.5
235.9
0.0
9.8
(9.8)
19.7
0.0
19.7
223.3
607.2
383.9
5.1
0.0
5.1
Provision for contingencies and strategic
priorities
8.8
0.0
8.8
0.0
1.3
(1.3)
Interest on Balances
0.0
1.3
(1.3)
0.0
5.6
(5.6)
Use of Balances
0.0
0.0
0.0
(2.0)
Movement on Medium Term Planning
Smoothing Reserve
0.9
6.4
(5.5)
1.4
3.4
0.0
25.0
(25.0)
638.9
431.8
207.1
Capital Charges and IAS 19 entries
TOTAL EXPENDITURE
0.0
21.8
(21.8)
616.9
413.4
203.5
Levies and Precepts
16.1
North East Combined Authority
15.6
0.2
Environment Agency - Flood Defence
0.2
0.1
NE Inshore Fisheries Conservation Authority
0.1
0.1
Hetton Town Council Precept
223.6
57.2
TOTAL BUDGET REQUIREMENT
Revenue Support Grant
44.7
44.3
Retained Business Rates
41.7
36.2
Top Up Grant
40.7
2.5
83.4
Less
0.1
219.5
Collection Fund Surplus
COUNCIL TAX REQUIREMENT
2.5
89.9
9
BUDGET INFORMATION
LEVIES AND PRECEPTS
Your Council Tax bill is made up of a number of elements besides the council’s Council Tax Requirement.
These include levies and precepts that the council is legally required to collect on behalf of other
organisations. For Sunderland City Council these organisations are:
Levy: Environment Agency
Flood
Defence
Change in levy (Total
Budget Requirement)
between years is
attributable to:
Last Year 2016-2017
This Year 2017-2018
Gross
Expenditure
£m
Gross
Income
£m
Net
Expenditure
£m
Gross
Expenditure
£m
Gross
Income
£m
Net
Expenditure
£m
20.4
18.2
2.2
15.2
12.9
2.3
Levy
2.2
£m
Programme of works
for both capital and
revenue needed by
the Regional Flood and
Coastal Committee
2.3
0.1
0.1
Sunderland’s proportion of the
Environment Agency levy is
£0.221m in 2017-2018 (20162017 £0.215m).
Levy: North East Combined Authority
Tyne Tunnels
ITA
Grant to
Nexus
Grant to
Durham and
Northumberland
Transfer to
Reserves
10
Last Year 2016-2017
This Year 2017-2018
Gross
Expenditure
£m
Gross
Income
£m
Gross
Expenditure
£m
Gross
Income
£m
30.0
29.7
28.4
28.3
Net
Expenditure
£m
0.3
Change in levy (Total
Budget Requirement)
between years is
attributable to:
Net
Expenditure
£m
0.1
2.7
0.0
2.7
2.2
0.0
2.2
92.0
0.0
92.0
87.8
0.0
87.8
21.8
0.0
21.8
21.7
0.0
21.7
146.5
29.7
116.8
140.1
28.3
111.8
(4.1)
(1.7)
Total Budget
Requirement
112.7
110.1
Less
Rail Grants and
Miscellaneous
Grants
(25.8)
(25.3)
Levy
86.9
84.8
£m
Inflation and other cost
pressures
Increased income
Budget reductions
Contribution from
reserves
3.2
(1.5)
(6.7)
2.4
(2.6)
Sunderland’s proportion of the
North East Combined Authority
levy is £15.569m in 2017-2018
(2016-2017 £16.118m).
BUDGET INFORMATION
Precept: Police and Crime Commissioner for Northumbria
Police
General
Total Budget
Requirement
Less:
Formula Grant
Legacy
Council Tax
Grant
Council Tax
Support
Grant
Collection
Fund Surplus
Precept
Last Year 2016-2017
This Year 2017-2018
Gross
Expenditure
£m
Gross
Income
£m
Net
Expenditure
£m
Gross
Expenditure
£m
Gross
Income
£m
Net
Expenditure
£m
276.8
15.7
261.1
274.6
13.6
261.0
261.1
261.0
217.5
214.4
1.3
1.3
6.9
6.9
0.5
0.9
34.9
37.5
2.6
Precept: Tyne and Wear Fire and Rescue Authority
Fire Service
Contingencies
Interest on
Balances
Total Budget
Requirement
Less
Revenue
Support Grant
Collection
Fund Surplus
Top up Grant
Business
Rate Share
SFA
Adjustment
Section 31
Grant
Precept
Change in Precept (Council
Tax Requirement) between
years is attributable to:
£m
Inflation,budget pressures
and other budget
adjustments
7.6
Reduction in
Government Funding
3.0
Budget Savings
(12.2)
Change in use of
Reserves
4.2
Sunderland’s proportion of the
Police and Crime
Commissioner for
Northumbria’s precept is
£6.824m in 2017-2018 (20162017 £6.305m).
This represents £98.33 of the
Band D Council Tax and
equates to a council tax
increase of 5.36%.
Council Tax represents 13.7% of
Gross Expenditure (2016-2017
12.6%) this increases the
reliance on Council Tax as a
funding stream.
Change in Precept (Council
Tax Requirement) between
years is attributable to:
£m
Last Year 2016-2017
This Year 2017-2018
Gross
Expenditure
£m
Gross
Income
£m
Net
Expenditure
£m
Gross
Expenditure
£m
Gross
Income
£m
Net
Expenditure
£m
53.7
6.0
47.7
47.7
51.3
4.2
47.1
47.1
1.3
1.0
(0.2)
(0.2)
48.8
47.9
13.2
10.9
0.0
0.1
10.0
10.7
4.3
4.0
0.2
0.2
0.1
0.2
21.0
21.8
Cost pressures
Reduction in
Government funding
IRMP Savings
Budget Efficiencies
2.8
1.6
(2.2)
(1.4)
0.8
Sunderland’s proportion of the
Tyne and Wear Fire and Rescue
Authority precept is £5.387m in
2017-2018 (2016-2017
£5.142m).
This represents £77.62 of the
Band D Council Tax and
equates to a council tax
increase of 1.9840%.
Council Tax represents 41.5% of
Gross Expenditure (2016-2017
37.9%) this increases the
reliance on Council Tax as a
funding stream.
11
Almost seven out of ten households
in Sunderland pay their Council Tax by
Direct Debit because it’s the easiest way.
Why don’t you join them?
Call us on 0191 520 5551 to set up a Direct Debit.
Do it online…
• Report missed refuse collections or
damaged/missing bins
• Arrange a bulky waste collection
• Request maintenance of grass, trees
and water features
• Report fly tipping
• Request a copy of a birth, death or
marriage certificate
• Book an appointment to register a
birth or death
• Book an appointment to give notice
of a marriage or civil partnership
• Report litter
• Report anti-social behaviour and
hate crimes
• Report an issue with street lighting
• Sign up to garden waste collections
…and much more at www.sunderland.gov.uk
oce20736