Agenda item

The Director of Finance submits the final Revenue Budget Outturn in the monitoring cycle for 2023/24 and reports performance against budget for the year.

The Director of Finance submitted the final Revenue Budget Outturn in the

monitoring cycle for 2023/24 and reported performance against budget for the

year.

The Committee was recommended to consider the overall position presented within this report and make any observations it saw fit.

The Director of Finance noted that:

• There had been a net underspend of £1.7m.  However, this did not reflect the severe pressures faced by the Council.  In particular, the Chief Finance Officer noted the £14.2m spent in Education and Children’s Services, of which £11.3 related to the costs of children looked after.  In the last financial year the average placement cost had increased to £70,000.  The number of children in care remained stable, but costs had increased significantly.
• There was a gross pressure of £7.8m in support of homeless households, slightly offset by additional grant funding leaving an overall pressure of £6.2m.
• There were cost pressures of £2.5m with regard to the local government pay award.
• The above pressures had been offset by savings, including an Adult Social Care underspend of £6.5m, mostly in relation to improvement work designed to reduce people’s need for formal care, social work assessment and commissioning practice.  This underspend was after a £32.9m increase in the budget in the financial year.
• There had been underspends in Education and Children’s services due to staffing vacancies and additional grants.
• Due to interest rates remaining high and higher interest rates received on cash balances, there had been a saving on capital financing costs of £4m.
• A reduction in energy prices through the year had meant that £2.6m less was needed from the energy budget provision.
• There had been changes proposed in departmental reserves.  Previously, departments had been allowed to monitor their own reserves.  It was now proposed that this be absorbed into the budget strategy reserves as part of the normal budget process.
• The emergency balance would not need to be used in 2024/25 as planned as part of the budget setting.  However, £61m of the managed reserve was needed to balance the 2024/25 budget, meaning there would not be enough left in the reserves to balance the 2025/26 budget.

The Commission were invited to ask questions and make comments and the officers and the City Mayor to respond. Key points included:

• It was confirmed that if the Council continued spending as it was, there would not be enough money in the funded reserves to manage the gaps in spending without budget savings or a change in policy.
• With regard to a question on spending on Adult Social Care, it was confirmed that the precept covered both adults’ and children’s social care.  There was no need to ringfence spending for Adult Social Care as the growth in that budget area had been significant and far greater than any raise in the social care precept.
• The rise in the numbers of those experiencing homelessness presented a cost pressure.  £45m had been approved to spend on temporary accommodation by the housing division to reduce the pressures.  £12m had been put into the budget for 2024/25. 
• Further financial pressures were anticipated around homelessness.
• The Period 3 figures would be provided at the meeting of the Committee in September.
• Posts were often vacant due to difficulties recruiting, particularly with regard to the social work service.
• Information would be obtained on whether Post-16 Home to School SEND transport would be offered outside the three-mile rule.
• The public-sector pay increases recently discussed by the Chancellor of the Exchequer did not refer to the pay award mentioned in the report.  The Local Government pay award was currently out for negotiation with unions.
• Clarification would be sought on voluntary services via the Education Support Officer and developments from the new government and on communications with the government on SEND transport.  From a financial perspective, the Council were engaging with the government on the financial pressures faced.

AGREED

1)    That the report be noted.

2)    That comments made by members of this commission to be taken into account by the lead officers.

3)    That information be provided on whether Post-16 Home to School SEND transport would be offered outside the three-mile rule.

4)    That clarification be sought on any guidance form the government on voluntary services via the Education Support Officer and any communication with the government on SEND Transport.

5)    That information be given on the outcomes of Alternative Partnerships.