Agenda item

The Director of Finance submits a report giving an early indication of expected performance against the revenue budget for the year.  The Committee is recommended to consider the overall position presented within this report and make any observations it sees fit.

The Director of Finance submitted a report giving an early indication of expected performance against the revenue budget for the year, explaining that it set out the position at the end of the third month of the financial year.  No forecast of future performance was included, as the aim at this stage of the financial year was to provide awareness of areas in which financial pressures were being identified.  The report for the next quarter would show the half-year performance and would include a spending forecast.

The Committee expressed some surprise that the Delivery, Communications and Political Governance division and the Human Resources division were forecasting underspends and questioned what the Digital Transformation Team would be doing.  In reply, the Director for Delivery, Communications and Political Governance advised that the underspends related to vacancies in the Human Resources function and reductions in non-staff expenditure, (such as printing costs).  The Digital Transformation Team had been established for a fixed period and was not part of the Council’s core establishment, so was unbudgeted.  Therefore, where possible, underspends were used to cover the cost of the team, which would be looking at how the best use of technology could be made in delivering the Council’s services.  Confirmation of the number of staff in the team and the costs involved could be provided for Members.

Some concern was expressed at the forecast overspend in Coronial Services and Members queried how this would be accommodated in future spending forecasts.  In reply, the Director of Finance explained that, although technically part of the Council and funded by the Council, the Coroner was an officer of the Crown.  The Council therefore could not ask her to reduce the work being done.  However, the current Coroner had been very effective at reducing costs.

Some concern also was expressed that investment by Tourism, Culture and Inward Investment services had not yet resulted in Leicester becoming a destination city and that Leicester Market was deteriorating, including problems arising from anti-social behaviour around the Market. 

In response to this, the City Mayor advised the Committee that the Market continued to provide quite a significant income.  However, the Market was changing and investment was being made in the area around it to acknowledge this change.  Problems had been experienced with anti-social behaviour around the Market throughout its history, but it was hoped that the continued investment would replicate the success of the redevelopment of the meat and fish areas.  The Council was determined that the Market would not close and this investment would help ensure that this did not happen.

Members also expressed some concern that reviews such as that for Technical Services had been delayed, which inevitably delayed any savings that would be made.  The Director of Finance explained that if this was to have an impact on the services it would be expected that the Director would report it through the monitoring reports submitted to the Committee.

Attention was drawn to the anticipated pressures on the Housing General Fund in relation to temporary accommodation.  This was part of the wider issue of homelessness, so it was suggested that it could be useful to have a briefing on these issues and budgetary pressures.

When considering Adult Social Care services, the Committee queried how much the Council would save by changing the disregard rules for certain allowances.  The Adult Social Care Scrutiny Commission had been advised that people could have to pay more towards their services, but at that time the financial profiling of the savings that this would achieve was not set out.  Members noted that any changes would be made following the current public consultation on possible options, information on which could be provided.

The increase of long term Adult Social Care service users was noted.  The Director of Finance explained that there had been an increase over the last 5 – 10 years.  People continued to enter and leave the system and previously these numbers had been fairly equal.  However, people were now needing these services earlier in life and were living longer, leading to an increase in long term service users.  It was not possible to predict future trends, particularly in a city such as Leicester, but the numbers appeared to be more stable at present.  However, it was anticipated that pressure would continue as people lived longer with significant health issues.  There currently were no plans to change assessment criteria for care packages, but the government’s long-awaited Green Paper on adult social care could consider this issue.

In response to a question about potential savings from the review of Sports Services, the Director of Finance explained that this review related to the staffing structure, how facilities and buildings were managed and how to create a more commercial focus for the services.  The Committee noted this, but was concerned that users of leisure centres were being encouraged to sign up to monthly direct debit payments and could no longer pay per session.  This was of particular concern in relation to the move towards community prescribing by medical services, which included using leisure centre facilities.  The Director of Finance reassured members that the Council’s facilities still accepted cash as a means of payment and asked for further information to be provided by Members if they had received complaints relating to this.

The Committee sought an assurance that the use of Dedicated Schools Grant (DSG) reserves to meet budget pressures in Education and Children’s Services was being managed properly.  The Director of Finance explained that there was national pressure on the High Needs Block of the DSG, as all areas had seen an increase in the number of children with special needs.  The DSG reserves had been used to fund this Block.  This issue would be considered as part of the budget preparation process for 2020/21, but it was recognised that children with Education Health Care Plans (EHCPs) had very specific needs, which the Council was obliged to meet, and schools sometimes needed additional financial support to assist in managing children’s behaviour. 

The following information also was requested during discussion on this item:

·           Figures for the income from the new bus shelter advertising contract; and

·           Details of anticipated income from the new charges to be introduced for pre-planning application meetings and discussions.

AGREED:

1)    That the position presented within the report be noted; and

2)    That the following information be provided for Members by the Directors indicated:

Councillor Kitterick left the meeting during consideration of this item.