The Director of Finance will present a report (Document “L”) which provides Members with an overview of the forecast financial position of the Council for 2018-19. The report  examines the latest spend against revenue and capital budgets and forecasts the financial position at the year end. It states the Council’s current balances and reserves and forecasts school balances for the year.

The Committee is asked to review and comment on the Quarter 2 Financial Position Statement for 2018-19.

(Andrew Cross – 01274 436823)

The Director of Finance presented a report (Document “L”) which provided Members with an overview of the forecast financial position of the Council for 2018-19. The report examined the latest spend against revenue and capital budgets and forecast the financial position at the year end. It stated the Council’s current balances and reserves and forecast school balances for the year.

Members were advised that, although the projected level of overspend for the Council was higher than had previously been forecast, since the first quarter position statement had been provided, a great deal of work had gone into mitigating actions and understanding the causes of financial pressure.

Members questioned the presenting officers in some detail in respect of the report, commencing with questions about school reserves and the challenge process around them and the on-going situation in respect of the financial deficit at Hanson School. They were advised that a robust reserve review process had been instituted this year and that reserves which were no longer required would be reallocated. They were also advised that the Council continued to work with the Trust and governors at Hanson School to manage the on-going situation.

A Member commented that he considered that the description of mitigation measures in respect of health and well-being seemed a little vague and considered that it would be helpful to have more substance to this part of the report so that Members could quantify whether the measures would make a difference. As the reporting process was new and evolving, officers undertook to take his comments on board. The Assistant Director, Health and Wellbeing was in attendance and explained that housing schemes referred to in the report were intended for a small number of people with very complex needs and would enable those people to leave hospital and live more independently.

A Member noted that an overspend was forecast on social work services within Children’s Services in spite of planned recruitment and queried why that was. He was informed that, even though recent recruitment events had proven very successful, agency staff  could not be released until new recruits were up to speed, which would then result in the forecast overspend. In response to another query from the same member, the Assistant Director, Social Care advised that the forecast underspend in Education and Learning was the result of savings being made ahead of schedule.

A Member then enquired whether recent social worker resignations had been from among more experienced staff members and was advised that they were staff members who had completed their assessed year. New recruits were less experienced although some were former agency workers who had chosen to join the Council permanently and some were staff who had previously left but had returned. Social workers with experience other than in children’s services had been targeted during recruitment. The Assistant Director confirmed that real progress had been made with staff numbers.  

A Member went on to request that a detailed report on the financing of children’s services be presented to a future meeting of the Committee.

A Member asked about the issue of assistance with travel to school in relation to those parents who also received funding from other sources for the same purpose. Officers undertook to provide a response to the question after the meeting. The Member also queried the issue of street lighting and whether spending to save was an option. She was advised that a business case was currently being put together, based on investment in LED lighting and that a report on the issue would be presented to the Regeneration and Environment Overview and Scrutiny Committee in the new year. Members were advised that any thoughts on the issue of street lighting should be forwarded to the Overview and Scrutiny Lead who would pass them on to the officers concerned.

Another Member picked up the issue of assistance with travel and whether the aim of increasing personal independence as well as resolving issues such as those already raised by his colleague was realistic. He was advised that it was an extremely challenging area to review and improve as the policy needed to be applied evenly across all applicants, including people already in the system who might have different expectations than new applicants.

A Member requested an update on the number of foster carers across the Authority and was advised that 72 new carers had been recruited in the last year but that there had also been some retirees. It was noted that the number of children in in-house care had increased slightly and that the increase in external placements was the result of children coming into the care system overall. It was stressed that foster caring was under significant pressure nationally.

A Member queried the proposed city centre market development, expressing his concern about the cost of the project and asking when a cost benefit analysis would be undertaken. He was advised that the cost benefit analysis had been done as part of the capital investment process and that it showed a break even situation as there was significant income from the markets. There was also non-quantifiable gain in terms of regeneration to the area.

As a result of the concerns expressed by the Member, a colleague Member suggested that a future report be presented explaining the decision making process in respect of all major capital projects. The Committee concurred with that view.

A Member concluded the questioning by noting that the report referred to 980 vacant posts across the Council currently and asked by what point there would be clarity in respect of those posts. The officer undertook to provide a response in writing after the meeting.

Resolved –

(1)  That this Committee requests a future report on the financing of Children’s Social Care.

(2)  That this Committee requests a future report describing the decision making process in relation to major capital projects, including the cost benefit analysis process.

ACTION: Director of Finance