Agenda item

Report CS17053

The Care Services Portfolio Holder introduced a report setting out the budget monitoring position for the Care Services Portfolio based on expenditure to the end of August 2016.

The controllable budget was forecast to be in an overspend position of £5,877k following overspends across a range of services including Adult Social Care, Temporary Accommodation (Bed and Breakfast) and Children’s Social Care which was due to a number of reasons including higher than expected demand for services and the need for further efficiency savings to be identified.  Members were advised that on 15^th June 2016, the Council’s Executive approved a number of carry forward requests for funding to be transferred into contingency for 2016.  These carry forward requests which totalled £395k related to either unspent grant income or delays in expenditure where cost pressures had followed through into 2016/17.  The Council’s Executive was also requested to approve the release of £1,436k held in contingency to support the continued delivery of the Tackling Troubled Families Programme and the Deprivation of Liberty Safeguards service, and to cover cost pressures arising from homelessness.

In considering the report, the Chairman advised Members that service-specific explanatory notes would be provided by budget holders to give context to financial information in future reports where appropriate. 

In response to a question from a Member, the Assistant Director: Housing Needs confirmed that a budget pressure relating to the high cost of utilities at two traveller sites was due to issues around the communal provision of utilities and the replacement of a water supply.  Property Services was working to address this and a timescale for completion was being developed.  In discussion, Members underlined the need to resolve this issue as a matter of urgency but recognised the delays that could occur when working with utility companies.  Progress on resolving this issue would be reported to the Committee as part of future Capital Monitoring reports.

With regard to Children’s Social Care, a Member noted the difficulty in obtaining suitable carers from independent foster care placements due to a significant increase in demand for placements by other local authorities.  The Head of Education, Care and Health Services Finance reported that the Local Authority would continue to seek to identify value for money alternatives to independent foster care wherever possible, and that work to recruit additional in-house foster carers was ongoing.

A Member was concerned that the Best Value Performance Plan, “Making a Difference” referred to the Local Authority’s intention to remain amongst the lowest Council Tax levels in outer London.  The Portfolio Holder confirmed that the Local Authority had increased Council Tax by 1.9% and charged the maximum 2% precept allowable to help fund adult social care costs in 2016/17, and was mindful of the need to address budget pressures across the Care Services Portfolio going forward.  The Council’s Executive continued to lobby the Government and local MPs around funding levels, and work was also underway to reduce the number of agency staff employed across the Portfolio, including a further recruitment and retention package and a forthcoming meeting with agency staff to promote the benefits of working directly for the Local Authority.  A Member queried if the perception of the lower cost of permanent staff included recruitment costs, and whether the costs of long term sickness were taken into account where agency staff were used to ‘backfill’ the positions of permanent staff, and this information would be provided to Members following the meeting.  Another Member noted the high cost of mother and baby placements ordered by the Court and requested that information on how many of these placements were successful in achieving permanence for families be provided to Members following the meeting.

RESOLVED that the Portfolio Holder be recommended to:

1)  Note the latest projected overspend of £5,877k forecast on the controllable budget, based on information as at August 2016;

2)  Note the full year effect of cost pressures of £4,682k for the Care Services Portfolio budget for 2016/17;

3)  Agree to the release of the carry forward amounts held in contingency relating to Adult Social Care, Housing and Children’s Social Care;

4)  Refer the funding release requests held in contingency relating to the Tackling Troubled Families Programme, Homelessness and the Deprivations of Liberty Safeguards service to the Council’s Executive for approval; and,

5)  Approve the Care Services Portfolio Budget Monitoring Report 2016/17.