To report on the revenue budget outturn 2006/07 and the budget 2007/08.

The Committee considered the revenue budget’s final financial position for 2006/07 and projections for financial year 2007/08 for Adult Social Care and Strategic Housing. 

The Interim Finance Manger presented the report.  The final outturn for 2006/07 in adult social care had been an overspend of £1.05 million.  An underspend on Commissioning and Improvement of £134,000 had resulted in a overall net overspend of £918,000.  The Social Care contingency fund had been used to offset the overspend and no overspend was therefore carried forward into 2007/08.

The position on each of the main service areas: learning disabilities, older people, physical disabilities, mental health and commissioning and improvement was set out in the report describing budget pressures in each area.

The projected outturn for 2007/08, as at May, was an overspend of £4.38 million against a budget of £31 million. The report noted that the centrally held Social Care contingency (for both Adults and Children’s Services) of £1.3 million and specific funding from invest to save monies of £2.7 million could be offset against the overspend at the end of the financial year.  The impact of fairer charging policies would also reduce the projected overspend.

The final outturn for Strategic Housing in 2006/07 had been an underspend of £165,000 against a £5.76 million budget.  The projected outturn for 2007/08 was an underspend of £6,000 against a budget of £2 million.

In the ensuing discussion the following principal points were made:

·         Members noted the ongoing pressures with concern.

·         A question was asked about the use of agency staff at Ivy Close respite care facility and action to secure a stable workforce.  In reply it was stated that the service had filled all permanent vacancies and agency staff were used to cover for staff sickness.  Agency staff were up to 50% more expensive and the service had undertaken a proactive advertising campaign to recruit permanent staff.  In addition to any financial benefits it was important to recognise that service users also preferred to have continuity of staff.

·         It was clarified that the Social Care contingency of £1.3 million was intended to be divided equally between adult social care services and children’s services.

·         The Head of Strategic Housing commented on the success achieved by the creation of  the homelessness prevention budget.  This had enabled the service to intervene at an early stage.

·         The Director of Adult and Community Services reported that the budget position was very challenging.  The Government was tightening public expenditure.  The Council’s Medium Term Financial Strategy provided for no increase in budgets for non-pay inflation for 2007/08. A large proportion of Social Care expenditure was on contracted services creating a significant pressure.  The number of service users was increasing across all areas.  Service needs were also becoming more complex.  He reminded the Committee that the needs analysis for older people and those with a physical disability had highlighted the potential level of increased demand.  People were living longer and over the age of 85 the chances of people becoming service users increased. 

·         The projected outturn was perhaps a worst case scenario and the service would be working hard to try to reduce expenditure, but the situation was difficult.

·         Separate from the social care budget the Council had allocated £2.7 million for an invest to save initiative to remodel adult social care services to make them more effective, drawing on comparisons with best practice authorities.

·         Members requested a seminar on the budget for Members of the Committee.  It further requested that this should also include an outline of the Council’s statutory adult social care responsibilities.

·         Following a short discussion about eligibility for respite care it was requested that a briefing note be circulated to Members of the Committee.

·         A question was asked about the funding agreement with the PCT for mental health services and the control the Council had over the budget, noting that the projected outturn assumed the Council would fund the projected overspend on this service area.  In reply it was stated that any social care services commissioned were approved by Service managers at a weekly funding panel meeting.

RESOLVED: That a seminar on the budget be arranged for Members of the Committee.