Paul Boyce, Director of Children’s Services introduced the report of the Director of Finance and Investment (S151) introduced her report that formed part of the Council’s formal budget process - as set out in the constitution and in accordance with the legal requirements to set a balanced and sustainable budget for 2020/21. The Director of Finance and Investment (S151) also presented an update on the Medium Term Financial Plan (MTFP) covering the period from 2021/22 to 2024/25.

In a variation from past practice, the previous format of scrutiny workshops had been discontinued, and each Overview and Scrutiny Committee reviewed a list of budget proposals under its remit.

As such, Members were requested to review and comment on the financial proposals for 2020/21 that were currently subject to consultation and further consideration by Cabinet on 17 February 2020; and to note the financial challenges facing the Council in setting a sustainable and balanced budget for the MTFP period from 2021/22 to 2024/25.

The report informed how, in September 2019, the Government announced the Local Government Finance Settlement for 2020/21 budgets, in the form of a single year Spending Round, with a multi-year Spending Review would following in 2020. This year’s Spending Round formed the basis for updating the MTFP and set out a 4.3% real-term increase in overall Government funding for Local Authorities - against a backdrop of consistent cuts in the previous three Spending Reviews since 2010 and continued pressures in delivery of social care. Details of how the overall announcement would affect the specific funding settlements for individual Local Authorities were not available at the time of writing the report. The Spending Round settlement for 2020/21 represented an improvement in funding in comparison to previous assumptions for 2020/21, given:

·  No loss of the Council’s equivalent of the Revenue Support Grant or Public Health Grant:

·  A £6.4m increase in funding for Adult and Children’s Social Care;

·  A proposed £2.8m increase in Council Tax - resulting from permission to include a 2% Adult Social Care Precept in 20/21, over and above an inflationary increase of up to 2%;

·  A (£0.8m) reduction in Council Tax due to the Council’s review of the Local Council Tax Reduction Scheme; and

·  A new round of the New Homes Bonus allocations for 2020/21 only.

The Director of Children’s Services updated theOverview and Scrutiny Committee on the key financial pressures identified by his service. These included:

• Emergency Duty Team (EDT) – increased costs relating to the resourcing of the EDT out of hours service (£0.14m);
• Contractual increase for the Environmental Port Health Authority (£0.09m);
• Increased costs of additional forecast for looked after children and fee increases £2.97m); and
• Grant reduction to support Troubled Families programme (£1.61m).

The Director informed that the figure of £1.6m in respect of the Troubled Families programme had been re-valued as a result of a recent announcement arising from reinstatement of £800k funding from central government.

Members noted that a Budget Saving in the amount of £1.27m had been identified utilising a demand management approach for Looked After Children – reducing the number of children in care by accelerating existing plans for children to be rehabilitated at home. Thereby reducing the cost of residential care placements by improving commissioning and market management.

Members questioned the Director on existing arrangements for Foster Care - the prime opportunity to aid a reduction of residential care placements. He informed that despite increased numbers of foster carers and an improved settlement in the recent spending review allocation of £6.4 for Adult and Children’s Social Care - if the saving identified i.e. reduction in numbers of Looked After Children in residential care were not achieved - this would add significantly to the financial pressures already identified.

Members questioned the Director of Children’s Services further on a number of alternative options and existing provisions in respect of Children in Care. He identified that funding for Troubled Families had been set at the same level as the previous year. He added that significant improvements had also been made in respect of claiming the ‘payment by results’ element of funding, and that the Council had aspirations to do more.

Resolved – That

1)  the financial challenges facing the Council in setting a sustainable and balanced budget for the MTFP period from 2021/22 to 2024/25 be noted;

2)  the challenges faced by the Director of Children’s Services as he balances his budgets, and the needs of the large number of looked after children, be recognised; and

3)  as Corporate Parent, this Committee urges the Director of Children’s Services to ensure looked after children receive the most appropriate and excellent care, having particular mind to the stability of placements.