To advise the Committee of the financial position for the Adult Social Care budget within the Joint Commissioning Directorate, and the Strategic Housing budget within the Regeneration Directorate for the period to 31 May 2010. The report provides the variations against budget and a projected outturn for the year.

The Committee received a report on the financial position for Adult Social Care and Strategic Housing revenue budgets for the period to 31^st May 2010.

The Principal Accountant reported that the outturn position had benefited from the use of central budget, contingencies and reserves of £2.2m and the additional funding was shown as a reduction in spend.  The next report would show the budget allocated over the areas once it had been signed off by the Chief Executive to ensure virement rules had been complied with.  A budget deficit of £1.5m remained which would need to be recovered by 31^st March 2011.  The outturn position included a number of measures within the recovery plan and further work would be required in order to balance the budget.

The position for 2011/12 would also need to be addressed and further savings would have to be found to achieve the required 5% reductions and potential further budgetary cuts of up to 25%.  The Associate Director, Joint Commissioning was in the process of drawing up plans on spending reductions which would need to be implemented within this financial year in order to have a significant impact in future years and achieve the targets set.

The Supporting People Grant had a deficit of £1,290k between the current year grant and contract commitments, was being supported by the brought forward underspend and was currently under review by a new Transitions Board chaired by the Director of Resources.  It would be merged into the Herefordshire Partnership. 

In the ensuing discussion the following points were made:

That a percentage cut in the budget of 25% would decimate the Service, and make it impossible to deliver services to the County.

The Associate Director, Joint Commissioning reported that it was not clear as to whether the budgetary cuts would be as high as 25%, and it was to be hoped that they would only be in the region of 15%.  Reductions in funding at these levels would, however, mean cuts to services.

That there would be a formal consultation with staff before a decision was taken regarding the Meals on Wheels service.  Alternative ways of delivering the service would be considered as a preference

In reply to a question from a Member, the Associate Director said that domiciliary care costs were higher in the County than the national average, but this was largely as a result of the rural nature of Herefordshire.  A great deal of work had been undertaken over the previous year to produce a fair price policy for care provision, something that was not done for home care in other authorities.

In reply to a further question, she went on to say that negotiations were underway regarding the block contracts with Shaw Care, and would be finalised by September. 

That the increase in the number of safeguarding referrals over the past 12 months was as a result of an increased awareness of the team.  This had lead to an increase in activity of 50% for the team. Whilst the team had been set up, there was currently no allocated budget for it. The cost of the current Safeguarding Team for the 2010/11 financial year would be £230k.

RESOLVED

That: 

a)      Although the addition of £2.2m contingency fund was welcome, the Committee notes that severe budgetary pressures still remained; and;

b)     The Committee expressed concern over the suggestion that the budget might be cut by up to 25% in 2011-12 which would impact on the provision of services and mean that many services currently provided would no longer be viable.