Agenda item

Purpose: to report on the financial performance of the Council’s revenue budgets and provide a year-end forecast. The report is Quarter Two 2022/23.

Resolved that Executive:

·         Note the forecast £3m over spend, after taking account of provision that was made in reserves for specific risks at the time of budget setting. Without this provision, the forecast would be an over spend of £7.8m.

This decision is not subject to call in as:

·      Report is to note only

therefore it will be implemented immediately.

Councillor Ross Mackinnon introduced the Revenue Financial Performance Report (Agenda Item 7), which detailed the financial performance of the Council’s revenue budgets and provided a year-end forecast, as at Quarter Two of 2022/23.

Councillor Alan Macro drew attention to section 4.5, page 43 of the Agenda Pack which reported that Adult Social Care long term services were predicting a £3m overspend. Councillor Macro suggested that almost half of the overspend was due to low occupancy within Council run care homes. Further, Councillor Macro noted that there had been increased spending incurred to place clients in private care homes. Councillor Macro queried why this was occurring when there were plenty of spaces within the Council’s own care homes.

Councillor Mackinnon explained that private care homes were being utilised for those clients with complex needs who could not be serviced by the Council care homes.

Councillor Jo Stewart further added that it had not been possible to place clients within the Birchwood Care Home for a time, but that further to a recent Care Quality Commission rating of ‘improving’, clients could now be placed there again. Councillor Macro commented that it was good news and commended all Officers and staff involved in the improvement at Birchwood Care Home.

Councillor Erik Pattenden queried whether the Children and Family Services model was fit for purpose if it was unable to take into account inflation and an increase in demand.

Councillor Mackinnon commented that no model would ever be perfect, and the fact that it had not correctly forecast demand did not mean that it was inaccurate. In relation to inflation Councillor Mackinnon commented that in February inflation had been 5.4% and not been forecast to reach such high levels but conversely to reduce. Councillor Mackinnon suggested that it would have been impossible to predict the extent of the increase.

Councillor Pattenden noted that the model had incorrectly forecast Quarter One and Quarter Two and queried whether it would be the same for Quarter Three. Councillor Mackinnon explained that the budget had been set in March, based on client numbers at that time.

Councillor Dominic Boeck commented that in relation to the data for Children, the numbers were smaller but the volatility could be greater due to a small number of individuals having very complex needs.

Councillor Pattenden queried what mitigation was in place to avoid future overspend. Councillor Lynne Doherty explained that a risk reserve was set aside to take account of any fluctuations in the modelling, and that increased demand was a widespread national issue which had been recognised in the Independent Review of Children’s Social Care final report.

Councillor Pattenden queried what actions had been taken to ensure a fair funding settlement from Central Government. Councillor Mackinnon responded that Members of the Executive had robustly lobbied Central Government over the preceding few months and that details were expected the following week.

Referring to mitigation, Councillor Lee Dillon queried whether the Council could act as a host and provide services to other local authorities. Councillor Boeck responded that such an approach had been tried at Castle Gate Respite Centre with beds offered to Hampshire and Oxfordshire, but that there was no longer any availability due to increased demand. Further, he noted that twelve additional places for secondary aged SEMH children had just been created at The Castle School, Theale, and that plans were in place to offer a similar facility for primary school children at Kennet Valley Primary School.

Councillor Doherty suggested greater use of in-house foster carers and made a plea for anyone interested to register.

RESOLVED that: Executive

·         Note the forecast £3m over spend, after taking account of provision that was made in reserves for specific risks at the time of budget setting. Without this provision, the forecast would be an over spend of £7.8m.

·         Note that proposed mitigations totalling £1.9m could reduce the overspend to £1.1m.