Agenda item

The Director of Finance submits the final report in the monitoring cycle for 2024/25 and reports performance against budget for the year.

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

monitoring cycle for 2024/25 and reported performance against budget for the

year.

The Strategic Director of City Development and Neighbourhood Services and the Director of Children’s Social Work and Early Help attended the meeting to assist with the discussion.

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

The Director of Children’s Social Work and Early Help gave an update on placement costs and noted that:

• Placement costs formed a significant proportion of spend in Children’s Services.
• There were currently 146 children in residential accommodation, 40 in Council-run accommodation and 106 in private accommodation.
• Quality in private care could be variable, it was aimed to place children in accommodation rated ‘good’ or outstanding’, but this was not always possible due to availability.
• The cost differential of placing a child in private accommodation versus in-house accommodation was £700 per-week per-child, so by having 40 children in Council accommodation, there was an overall cost mitigation of £28k if a child was placed in Council accommodation.
• It was planned to expand internal resource.  Holly House had been converted into a new five-bed unit which had received its first Ofsted inspection and had been rated ‘good’.
• A new-build had been commissioned at Hillview, the original building had not been suitable for refurbishment, so it had been demolished.  However, this had meant it was possible to build do design.  The project was mid-build and should be in Council possession in 2-3 months with the aim to open in October or November.  It contained an independence flat for those transitioning to independent living.
• There were two further capital bids in with the DfE. There was originally supposed to be a decision on these in May, however, this has been delayed by the government.
• One of these would be a smaller two-bed unit for people with complex needs, and the other would be a four-bed unit for those with complex emotional wellbeing issues.  These would be people who needed more care but did not meet the criteria to be an inpatient in a mental health unit. These projects would be dependent on the capital bid.
• The Council were building internal fostering resources and there were now 226 children within Council foster care households and 132 external foster care organisations. There was around £640 per week difference between Council provision and external provision. Anything Councillors could do to champion in-house fostering would be welcomed.
• The majority of private care was profit-making.
• Around £5m per year was spent on supporting special guardians and family members and friends who had filed a residence order and were taking children in.  This was very cost-effective in supporting families to care for children and young people within a family network.  This also delivered permanence for the child or young person.  The costs to the Council for this process were considerably lower than fostering at £220 per week.

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

• With regard to a query on the 32% variance in Departmental Overheads within City Developments and Neighbourhoods, it was clarified that this mainly related to a bad debt provision.
• Housing services were in a better position than anticipated, and the overspend had been reduced by £4m form the end of December.
• With regard to investment in children’s homes, providing such facilities made sense, however, it would not be possible to eliminate the reliance on the private sector.  However, the government recognised the need to support on this, therefore capital funding was made available to bid for, which could help a move towards not-for-profit care. 
• It was noted the best way to promote fostering was to use people who have traction in their own communities, and there was potential to promote in community and faith groups.
• It was noted the variance at outturn compared to the original budget set was £40m.  It was explained that the variance was mainly due to the significant work in social care to reduce costs and increase the funding from the NHS. 
• It was confirmed the increase in the budget strategy reserve did not fundamentally change the budget the budget gap.
• Information requested on the Connexions service would be picked up outside the meeting.
• More information would be sought on intervention and care packages, and the issue of prevention would be taken up in Adult Social Care Scrutiny Commission.
• It was noted the reduction in the forecast outturn was reflective of the work undertaken to increase our own temporary accommodation. 

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.