Andrew Roberts, Senior Manager – Financial Management, introduced his report presenting financial monitoring information for Children and Families as at close of the third quarter of the 2017/18 financial year that gave a consideration of performance against the revenue budget, including savings, income and debt, and a commentary on performance against the capital budget.  The report was supported by a presentation addressing issues highlighted within the report and considering the anticipated financial position for the following financial year.

The Committee was advised of a predicted current year £3.9 million overspend after the allocation of £5 million from Contingency linked primarily to the costs of care and of agency staffing.  Agency costs were impacting the budget due to a number of vacant posts and a further number requiring sickness / maternity cover.  The numbers of looked after children continued to rise, and in certain key areas there had been significant increases in placement costs.  The identified savings for Children and Families had proved difficult to progress given the increasing demand in the service.

The funding for the Improvement Plan taking advantage of capital flexibilities introduced the previous year was considered.  These flexibilities had provided funding for 166 additional posts, 80% of which were within Social Care / Safeguarding and for which recruitment was in progress.  However, the capital flexibilities required such investment to transform delivery and to either reduce costs of or demand for services going forward.  Funding was focussed towards the needs of those leaving care, strengthening the Multi-Agency Safeguarding Hub (MASH) and Safeguarding teams, addressing high caseloads, improving information within the department, and enhancing Early Help and Prevention services.

Councillor Alan Brighouse queried the rules applying to the use of capital receipts in the transformation budget and whether transformation had to be demonstrated.  It was confirmed that it was required to demonstrate how the investment would reduce costs.  The initial period to demonstrate the return had initially been two years, though this had now been extended in recognition that some results might take time to work through the system.

The comparative figures for the Children and Families 2017/18 (as revised) and 2018/19 budgets were considered.  While the net figures were comparable, the Committee was advised that the savings target should not be underestimated as there was an inflationary impact to note, that the increased numbers in care had had a part year only effect in 2017/18, and that a number of significant one-offs had assisted in achieving the current year budget.

RESOLVED – That

(1)  the quarter 3 revenue forecast overspend of £3.9 million be noted;

(2)  the performance of the capital projects be noted.