To provide an update on the projected outturn as of the end of October for financial year 2007/08 for Adult Social Care and Strategic Housing.

The Committee considered an update on the projected outturn on the 2007/08 revenue budget for Adult Social Care and Strategic Housing as at the end of October 2007.

The Head of Financial Services presented the report.  The projected overspend on adult social care was £3.93 million.  Allowing for the fact that Invest to Save Monies allocated in the budget for 2007/08 would not now be spent and an allocation for adult social care from the centrally held contingency the projected overspend reduced to between £1.7-£2 million. 

A number of risks that might have a bearing on this projection were set out in the report together with progress on remedial actions.

The projected overspend on Strategic Housing had increased to £100,000 principally because of the demand for temporary accommodation for homeless people.

In response to questions the following principal points were made:

·         The Head of Financial Services confirmed that the invest to save monies formed part of the base budget and would be required in future years.  It was only proposed to use the unspent sum in the 2007/08 budget to offset the overspend in the current year.

·         The Director of Adult and Community Services reinforced the need for the invest to save monies to remain in the base budget.  There was a lead in time for a number of initiatives to remodel services to take effect.  It was therefore proposed to manage resources available in the adult social care budget as a whole to offset the overspend in the current year.

·         The projected underspending on commissioning and improvement was in part attributed to recruitment.  A question was asked about progress in addressing this and the impact on the service.  The Head of Social Care (Adults) said that options were being considered but these were limited.  It was difficult to recruit people with the desired experience.

·         The potential additional costs associated with the opening of Leadon Bank home for older people were raised.  The Head of Social Care (Adults) explained that it had been expected when the contract with Shaw Homes had been let that those resident at the time would take the new accommodation.  However, for a variety of reasons this had not proved to be the case, potentially leaving a number of vacancies for which the Council would have to pay the contractor for a period.  She noted that there was a difficult balance to be struck in ensuring all places in a new facility would be taken up.  Factors to be taken into account included the timing of needs assessments and resolution of various financial issues.  She outlined action being taken to try to fill the vacant places expressing confidence that once families and carers realised the quality of the facility.

·         It was proposed that a report should be prepared on the lessons learned from the Leadon Bank experience and how this might bear on the Extra Care Housing project at Rose Bank, Hereford. 

·         The high number of expressions of interest in a place at Rose Bank was noted whilst recognising that not all applicants would meet the eligibility criteria.

·         A question was asked about discussions with the Primary Care Trust (PCT) the funding of free nursing care and their potential impact.  It was reported that the service was provided under a Section 75 Agreement between the Council and the PCT.  Discussions were continuing over the respective responsibilities of the two organisations.  The cost to the Council depending on the outcome might be up to £100,000 - 150,000.

·         The Head of Strategic Housing commented on the factors contributing to the pressure on the strategic housing budget.  These included a number of early releases from prison and evictions as a consequence of raising rent.  There also negotiations over a number of families with a history of rent arrears or antisocial behaviour.

RESOLVED:  That having regard to the potential additional costs associated with the opening of Leadon Bank Home for Older People consideration be given by the Executive to how such contracts can be more proactively monitored and the Executive’s response reported to the Committee’s next meeting, this report to include lessons learned form the Leadon Bank experience and how this might bear on the Extra Care Housing project at Rose Bank, Hereford.