Agenda item

The Chair thanked officers for attending the meeting.  Mr Andy Goodwin, the Council’s Head of Strategic Finance, introduced the report and noted that this was the officers’ second appearance before the Health and Social Care Select Committee during this municipal year.  It was noted that the Council's revenue monitoring for 2023/24 indicated a net underspend of £22,000 and that services within the Committee's remit were forecasted to underspend by £1 million, which had been attributed to staffing underspend due to recruitment difficulties. Adult social care placements had projected an overspend which would be funded by a one-off release from the balance sheet provisions.

The medium-term financial forecast and the budget strategy had highlighted a saving requirement of £51m for 2028/29, with identified saving programmes of £33.4m, leaving a residual gap of £17.6m. Inflation, particularly in adult social care placements, had been a significant factor, contributing £48.1m to the budget gap within the Committee's remit.

Mr Goodwin advised that service pressures were being forecast at approximately £24m, with demographic growth accounting for £4.6m and support for adult social care demand adding another £4.2m. Corporate items were adding around £14m to the saving requirement.

The consultation budget had proposed a saving programme of £33.4m, with £15.8 million required to balance the 2024/25 budget. Significant savings included £1m for mental health recovery and post-pandemic reablement.

Of the proposed £218m capital budget, £20m sat within the Committee's remit and included a £1m investment in social care equipment and £6m for the Council to set up its own care home, supporting a saving of £550,000 per annum from 2025/26.  Concern was expressed about the potential risks associated with purchasing a care home.  Mr Goodwin advised that, along with the reducing cost of energy, the cost drivers had showed a lower exposure than the open market and the Council had a low level of indebtedness.

Health and Social Care was continuously looking to innovate and develop new ways of working and service provision to help manage pressures. This was evident in the savings within this area that were linked to investment in digital solutions - Members queried whether this would look and feel different in the future.  Mr Jon Smith, the Council’s Head of Finance - Adult Social Care, advised that the Medium Term Financial Forecast regarding the reablement programme looked to prevent costs of people coming into the service.  To prevent service users from seeing a diminished service, there would be a move to using more services such as Telecare and a focus on getting reablement services to residents as soon as possible.  A model was being developed to track the effectiveness of this support. 

Members queried how the demand for adult social care was increasing yet there had been a reduction in the associated budget.  Mr Goodwin advised that officers reported on demand led growth in the service separately to the savings.  Demand led growth had increased by £3m to account for demography and then the savings had been taken out to mitigate for front door pressures. 

The report stated that a 30% uplift in core Government grant would be needed to balance later years’ budgets.  Mr Goodwin advised that the local government sector had only received a settlement until 2024/25, and that there had been uncertainty about funding beyond that period.  Officers were waiting to see what would happen as 75% of the Council’s funds came from Council Tax retention and 25% came from Government grants. 

Members were advised that, although inflationary pressures had reduced, there was a bit of a lag in realising this reduction.  Demographic pressures had also been well managed during the year with innovative ideas being used to help manage the budget into the future. 

It was agreed that the Democratic, Civic and Ceremonial Manager be asked to draft and submit the Committee’s response to the budget proposals in consultation with the Chair and Labour Lead. 

RESOLVED:  That:

1.    the Democratic, Civic and Ceremonial Manager, in consultation with the Chair and Labour Lead, draft and submit the Committee’s response to the budget; and

2.    the report be noted.