To provide assurance that progress is being made towards achievement of the agreed revenue and service delivery targets, and that the reasons for major variances or potential under-performance are understood and are being addressed to the cabinet’s satisfaction.

The cabinet member finance, housing and corporate services introduced the report. The following key points were highlighted:

·         the majority of projects were delivered to budget and schedule;

·         the projected revenue outturn for 2017/18 was a £2m overspend, reduced from the previous quarterly report;

·         timeliness of transfers of care from hospital had improved;

·         pathway redesign had been successful in helping to clear the backlog of client assessments for care packages;

·         reviews of long term care packages were progressing but there were challenges, particularly in relation to packages for learning difficulties;

·         additional winter pressures had been experienced;

·         there was concern regarding the low numbers of patients receiving continuing healthcare (CHC) funding from the NHS and it was reported there had been a dramatic reduction in CHC patients, causing a parallel increase in nursing care costs, it was hoped numbers of patients receiving CHC funding would increase in coming months;

·         validated education results were positive, including for vulnerable groups;

·         the number of looked after children remained higher than might be expected for Herefordshire. An action plan was in place to address this and was expected to start showing results soon;

·         the new Colwall Primary school was due to open on time;

·         the new city link road had opened in December and other transport packages were progressing;

·         the regeneration partnership with Keepmoat was progressing;

·         the new NMiTE university was expected to open its doors in 2020.

In response to queries it was stated that:

·         the council was to receive a rural sparsity grant of £1m, it was intended that this sum be added to general reserves and the S151 officer make changes to the budget as per the delegated authority agreed at council;

·         it was too early to say exactly what the rural sparsity grant would be spent on but points made on rural deprivation were noted and would be taken into consideration;

·         the issue of the low conversion rate of referrals to assessments in children’s safeguarding had been ongoing on for some time and continued to be raised with partners through the safeguarding board, although there was concern that the message did not appear to be resulting in a change of practice;

·         although the number of looked after children remained relatively high, for the year to December 15 had been adopted and a further 14 had returned home;

·         work was underway to achieve permanent family bases arrangements where appropriate for a number of children who are looked after in Herefordshire. Children would only be moved to other options where it was right for that child;

·         schools received a certain amount in their delegated budgets for early intervention, assessment and support of children with less complex special education needs/disabilites, more severe needs would be assessed and supported through an Education Health and Care Plan (EHCP);

·         all reserves were held as revenue, no capital reserves were held as such;

·         the capital budget pertained to a single financial year, whereas the capital programme covered multiple years;

·         the city link road had been delivered within the overall budget for the road element as approved by the Marches LEP in 2015, design work was underway for the active travel measures element and public consultation would take place before implementation;

·         Model Farm was listed separately in the capital programme forecast as there was spend in respect of a reapplication of the planning permission and the project had been added to the programme some time ago, before the development partnership had been agreed;

·         the S151 officer was seeking to produce separate reports on the capital programme and capital budget in the next financial year to bring greater clarity;

·         additional resources had been allocated to the LEADER project since the date of the report and the council was now on track to draw down all of Herefordshire’s share of the funds.

Resolved that:

a)    the projected revenue financial outturn and performance for the first nine months of 2017/18 be reviewed and any additional actions required to achieve improvement be determined;

b)    the projected capital financial outturn and performance for the first nine months of 2017/18 be reviewed and any additional actions required to achieve improvement be determined; and

c)    the chief finance officer be authorised to use reserves as set out below: