Back at the end of last year, I had a quick look through Bristol's proposed budget for 2008/09.
These were the main figures for the proposed budget, and this year's increase in the authority's precept of the council tax (4.85%) was calculated from that figure. These were the headline figures (Click here if you're a feed subscriber):
Now, finally, the Budget Book for 2008/2009 is available. And the figures are dramatically different:
Now if you look at the final line, you'll see that the amount of money required in Council Tax is unchanged. But, the actual revenue budget of the council has increased by 7.8% from £327,865,000 to £353,128,000
You may be wondering how it's possible that the council had decided it needs an extra £25 million quid and yet has decided not to raise council tax. Well that's easy. It's a six stage process:
- Flog off the family silver (£9.6 million)
- Spend anything leftover from last year (£3.6m on the pie charts, £2.6m on the spreadsheets)
- Check down the back of the sofa for any loose change (£13 grand)
- Borrow from the bank
- Cut your contingency budget and hope nothing goes wrong (£1.2 million)
- Get London to bail you out with grants (paid for by central taxation and central borrowing)
More research is needed to understand the grant funding changes, but there's one thing that really stands out: every single council department increased their requirements between the Draft proposals in December and the final Budget. Every single one. Putting aside all the financial jiggery-pokery, £49 million was added to the budget between December and May. The Chief Executive's department alone increased the proposed spend by practically 50% from £14m to £20m.
More to follow, but for the moment consider this. Every single Bristolian - man, woman and child - now has a debt hanging around their neck of £964.40 due to local authority borrowing.

6 August, 2008 - 23:48
The stand out figures are how 'Net capital financing costs' of £9,960,000 have become 'Net capital/financing dividends' of -£9,852,000. How has a cost of over £9m become an income of over £9m?
On the surface this suggests a fire sale of £18m of assets to fund revenue expenditure.
Or am I missing something?
7 August, 2008 - 20:02
A fire sale would be my interpretation. But looking at the "Capital Programme" section of the budget book, the detail stops at single entry in each department for "Capital Receipts".
The total Capital Receipts for the year are £34,431,000. In the departmental budgets, the one that particular interests me is "Children & Young People", who are forecasting Capital Receipts of a suspiciously round number of £5,000,000.
Looking at the Medium Term Financial Plan 2008-2011, the first assumption made is "Pay/price inflation of 2.5% p.a" which is hardly likely. So next year's Council Tax is lining up to be a nasty surprise.
JMB
7 August, 2008 - 20:21
So the plan is to sell £34m worth of assets in a property slump?
Since the only real assets the city has are land and property some people are set to get very rich aren't they?
And we're going to get fleeced ...
7 August, 2008 - 20:53
9 August, 2008 - 15:08
Bristol Blogger wrote: "So the plan is to sell £34m worth of assets in a property slump?" True to form. Remember Gordon Brown selling Britain's gold off at the bottom of the market? He wasn't very careful with his wishes - he's definitely going down in history.