The Director of Adult Social Services presented for consideration his report that had been considered by the Cabinet on 4 September 2008 (minute 185 refers). He commented that across the country, Adult Social Services were struggling to cope financially with the increased level of demand for services and higher personal expectations of what should be available. Wirral was no exception to this trend and in order to deliver preventive care and maintain individuals in their own homes as long as possible, within the restrained budgets available to local authorities, he indicated that a radical change was needed to the way services were provided, with a move to a much more individualised approach. The Transformation of Adult Social Services in Wirral was the focus of a major change programme and the Director referred to the work underway to achieve a stabilised and sustainable budget during the period of transformation. Noting the pressures facing the department, the report provided details of action being taken across all service areas and it requested the Cabinet to note the potential need for bridging finance of £3.4m in year one of the three year budget stabilisation plan in order to allow savings in place time to take full effect.

The Cabinet resolved that – (1) the continuing efforts of officers to manage within resources, recognising the high probability of overspends of £3.483m in 2008-2009 and £0.761m in 2009-2010, which are likely to require funding from balances, be noted; and (2) the Director of Adult Social Services be requested to present a further report to its meeting of 6 November 2008 on options to stabilise the department’s medium term budget and deliver further efficiencies towards the corporate target.

In response to comments from members, the Director confirmed that the current projected shortfall was £9.1m, which was 10.5% above the budget. As a result, the Department had identified actions that would reduce the likely overspend in 2008/2009 and 2009/2010, and he provided detail of progress being made against specific projects that were set to deliver cashable efficiencies. He also outlined where there may be options to accelerate progress to further reduce the overspend.

Members commented that a statistical analysis of prior need had failed to identify future need and expressed their disappointment that the increased overspend since July had not been anticipated. Assurance was sought that the shortfall would not increase further in the coming months. In response, the Director commented that it had been difficult to predict the ongoing increase in the numbers of people in need and a significant increase in unforeseen admissions to Arrowe Park Hospital had led to an increase in admissions to residential care. He commented also that although there had been difficulties in meeting previous targets on time, he was optimistic that the targets detailed in his report would be achieved within the timescales specified. He referred also to a proposed pilot of ‘individual budgets’ to be commenced in December which, with the correctly applied funding formula, would assist in the achievement of a balanced budget. He outlined the proposed scheme and stated that a full report would soon be presented to the Cabinet.

The Chair expressed his concern at the increase in the budget shortfall and the impact of this on other budgets. He requested the Director to attend the next meeting of the Committee to report upon progress on the options that had been put in place to stabilise the department’s budget and deliver efficiencies towards the corporate target. He commented that the Cabinet member for Social Care and Inclusion had also indicated a willingness to attend the next meeting.

Resolved –

(1) That the report, and options put in place to stabilise the department’s budget and deliver efficiencies towards the corporate target, be noted.

(2) That the Cabinet member for Social Care and Inclusion and the Director of Adult Social Services be requested to attend the next meeting of the Committee to outline progress and address the concerns expressed by this Overview and Scrutiny Committee in relation to the budget shortfall.