Issue - meetings

Report CEF22046

The report presented the budget monitoring position for the 2022/23 financial year which showed an overspend of £5,294k based on activity to 31 July 2022.

In considering the overspend in the Children’s Social Care Service, the Chairman observed that the total number of Education, Health and Care Plans had increased by 14% between 1 April 2022 and 31 July 2022.  This was due to a range of factors including the Borough’s changing demographic and the impact of the COVID-19 pandemic, but it was projected that the trajectory of service demand would level off in the coming months as the post-COVID period continued and in response to management action.  Another Member underlined the costs associated with hiring agency staff within Children’s Social Care and the Director of Children, Education and Families confirmed that the Local Authority worked hard to recruit and retain permanent staff using innovative strategies including recruitment fairs, university links and overseas recruitment. 

With regard to the increasing deficit in Dedicated Schools Grant, the Committee was advised that this was primarily caused by the growth of demand within the High Needs block.  The Local Authority had developed a robust deficit recovery plan in consultation with the Department for Education and was also working with the Schools’ Forum.  In the meantime, a Financial Disregard was in place which meant that the deficit did not have to be counted within the Local Authority’s reserves, although the Local Authority took a prudent approach to its financial management and had accounted for it.  It was highlighted that many other local authorities were experiencing similar budgetary pressures and the Local Authority had been one of the final London boroughs to go into deficit.  The Member queried whether there continued to be an issue with the introduction of a new CSC system that made it difficult to access financial data and was notified that this had been resolved.

In response to a question from a Co-opted Member, the Head of Finance: Children, Education and Families confirmed that whilst wider economic pressures had been taken into account in budget setting, recent increases in inflation were likely to impact service delivery costs moving forward and the Committee would continue to receive regular updates on the Portfolio’s budget position.  A Member noted the potential to levy fines on providers that did not meet the required service standards for Special Educational Needs transport had previously been discussed by the Committee and an update on this would be provided following the meeting.

RESOLVED: That the Portfolio Holder be recommended to:

·  Note the latest projected overspend of £5,294,000 forecast on the controllable budget based on information as at July 2022;

·  Agree the release of amounts carried forward from the 2021/22 financial year as set out in Section 5 of Report CEF22046; and,

·  Recommend the Council’s Executive agree the release of funds from the Central Contingency as set out in Section 6 of Report CEF22046.