To scrutinise financial performance at quarter 1 and identify issues that may require further investigation by an overview and scrutiny committee, report attached

The meeting received the report of the Executive Director of Resources which set out the financial position to the end of quarter one.

The Executive Director – Resources advised Members that whilst the format of the report was similar to those previously published, the information contained within the report was more extensive than previously.  He informed members that at the end of the first quarter 89% of the expected savings had been delivered and that if rolled forward this would mean 67% of the expected savings delivered at the year end which was in line with previous years. Officers would be continuing work to address the remaining 33% of savings and that the current projection was that 90% of savings would be achieved.  He also advised members of increasing demand pressures within adults, children and temporary accommodation which officers were seeking to address.

The Executive Director – Resources informed members that Officers were working to build resilience into the process to ensure that there were alternative plans in place to ensure any pressures identified could be addressed.

A Member commented that there was a decrease in the adult care business support and development, an area which had previously been identified for investment.  The Assistant Director Finance and Technology stated that in some areas it had been possible to capitalise staff costs and reductions showing could be being charged elsewhere.

A Member stated that the NHS are responsible for the first six weeks care on a patient leaving hospital, and asked if they were paying for this?  The Executive Director of People advised that the local NHS had a pot of money for discharge but that there was a £4-6 million shortfall in funding, and the Council had made an application for further funding.  The Chair suggested that this was a topic for the Task and Finish Group to look to at in more detail.

A Member commented that there was £11.4 million of savings confirmed and asked for more details as to how these had been achieved.  The Executive Director of Resources stated that there were a series of spending reductions across the directorates which were fairly easy to deliver such as when a restructure resulted in a deleted post a saving could be accounted for immediately.  He added that there were elements of spending that could be capitalised which would then show as a saving. The Assistant Director Finance and Technology then gave some examples of specific savings made.

A Member commented that it appeared that savings were being made much earlier in the financial year through capitalising costs and that he had a worry that the overall situation had not changed and the required savings would not be made.  The Portfolio Holder for Finance and Corporate Resources stated that he was not complacent and that difficult decisions may need to be made.  He stated that he would welcome any suggestions for savings from any Councillor.

A Member welcomed the level of detail that was contained in the report and thanked officers for providing this. She expressed concern around the level of pressure especially around the autumn and winter period.  She also expressed concern that income through traded services had reduced and that targets would not be achieved.  The Chair suggested that comments made around the use of agency social workers should be looked at in more detail by the Task and Finish Group. The Executive Director of Resources confirmed that the predicted budget pressures took into account the variations throughout the year.

A Member asked for further details of potential savings from the renegotiation of the waste contract.  The Executive Director of Resources stated that there was a lot of work to be done and that there were a number of options being considered.

A Member asked whether it would be worth setting up an “opportunities register” to ensure that no grant funding opportunities were missed.  The Chief Executive welcomed the suggestion of such a register which should be included in all the work being carried out.

A Member expressed concern that going forward there would be changes that affected communities and asked about the use of impact assessments. The Chief Executive commented that there would be some difficult decisions to be made. There was a need to understand the effect of the cost of living crisis on communities to be able to manage demand and work was underway with partners to address this.

It was proposed by the Chair that Task and Finish Groups should be set up to  look at

1.    Adult Social Care and the issues around discharge

2.    Childrens Services

3.    Finance

And that members of the groups should be nominated by Group Leaders.

This was agreed.