Agenda item

For Overview and Scrutiny Board to receive and consider the Children’s Finance Improvement Plan as approved by Executive on 14 February 2023.

The Head of Procurement and Commissioning presented the Children’s Finance Improvement Plan and advised Members that an assessment had been carried out to understand how budgets in Children’s Services could be better spent.

The assessment had also looked at significant issues facing Children’s Services, such as external placements. It was noted that in these cases the private market had increased its prices significantly which had increased costs to the Council.

Another significant issue facing Children’s Services was the high number of agency staff employed by the Council, coupled with difficulties in recruiting permanent social workers. Difficulties in recruitment were partly attributed to Children’s Services current OfSTED rating and a general lack of qualified Social Workers. While the government was looking to make changes, including a tie-in of five years before Council staff could work for agencies, there was no timescale for this. It was noted that improving Children’s Services financial position would be helped by OfSTED’s rating improving.

In relation to paragraph seven of the report, a Member commented they were pleased to see efforts being made to reduce agency staff costs and moves to bring fostering services back in-house. However, the Member also thought this was long overdue.

A Member queried if the introduction of Multi-Purpose teams would consist of existing staff. Officers clarified that a new structure would be created for permanent workers and from this a more blended approach to working would be created.

In relation to paragraph seven of the report, a Member queried when an additional £9.8 million for Children’s Services was first identified. It was clarified the additional money was identified during the budget setting exercise in November and December 2022. It was commented that a significant amount of the Local Government Settlement Grant would be required for this, which had not been included in the budget consultation exercise. It was clarified the additional £9.8 million was not new money and had been identified as part of the budget recovery plan.

The Mayor commented the budget consultation exercise was undertaken before the full details of the Local Government Settlement Grant were known. 

A Member commented the government settlement equated to an additional 9.4% and queried what this was in real terms. The additional 9.4% in government grant assumed a 3.99% increase in Council Tax. It was also confirmed that the Council, , received an additional £9 million, approximately. However, much of this was ring-fenced, which in real terms meant the Council received approximately £4million in additional funding from government.

The Mayor confirmed it was his decision to allocate more money to Children’s Services even if that meant a reduction for other services. The Mayor also commented that in previous years Children’s Services had been given less money than what was required which had led to previous budget overspends. It was also confirmed that while there had been increased funds allocated to Children’s Services the Council still faced significant challenges in meeting its savings targets.

Members discussed the financial difficulties facing Children’s Services and expressed concern than an increased amount of the Council’s budget was, seemingly, being spent on one service. Members also discussed the wider factors affecting the Council’s financial challenges, including those affecting the entire country.

It was queried if Members had been provided with all relevant information during the budget consultation exercise. It was reaffirmed that at the beginning of the budget consultation exercise some information was not available, but became so as the exercise progressed. A Member also commented that it was important to look forward and assigning blame was not productive.

It was queried if the government had not provided extra money in the settlement would the Council had been able to plug its budget gap. It was clarified that it was uncertain where the financial shortfall would have been made up had extra funds not been made available.

A Member queried, if there was a long-standing concern about overspend in Children’s Services, was this raised through the relevant scrutiny panel. It was agreed the relevant Scrutiny Chair would be asked about this.

ORDERED:

1.    That the Chair of the Children and Young People’s Social Care and Services Scrutiny Panel be contacted to understand if the budget overspend had been brought to their Scrutiny Panel previously.

2.    That the information presented be noted.