Agenda item

Financial Management 2024/25 to 2027/28 - Revenue and Capital Budget Update 2024/25 - October Update

Report of the Executive Director of Corporate Services and Commercial

Minutes:

Further to Minute No. 54 of the meeting of the Cabinet held on 3 October 2024 the Committee considered the report of the Executive Director - Corporate Services and Commercial that advised of:

 

(1)

the current position relating to the 2024/25 revenue budget;

 

(2)

the progress made on transformation within Sefton New Directions;

 

(3)

the current forecast on Council Tax and Business Rates collection for 2024/25; and

 

(4)

the monitoring position of the Council’s capital programme to the end of August 2024 in respect of:

 

·       the forecast expenditure to year end;

·       variations against the approved budgets and an explanation of those variations for consideration by Members; and

·       updates to spending profiles and proposed amendments to capital budgets necessary to ensure the efficient delivery of capital projects; and

 

Members of the Committee asked questions/commented on the following issues:

 

·       the delivery of Adult Social Care savings of £1.6m to the end of August 2024

·       14 additional children having to be placed in a residential setting at a cost of £0.090m per week

·       problems attracting social workers and the resultant use of high-cost social worker agency placements; the recruitment and retention of permanent council social worker staff; and the possibility of making savings on the use of agency staff by paying permanent council staff at a higher rate. Information was sought on the comparable grades of social worker posts in neighbouring authorities and whether this had a detrimental impact on the recruitment and retention of staff

·       the recruitment of international social workers and the retention of staff coming through the social work academy

·       many local authorities faced difficulties in the recruitment and retention of social workers and maybe a collegiate approach across authorities could help resolve issues

·       It was noted that the Overview and Scrutiny Committee (Children’s Services and Safeguarding) had given lots of attention to the issue of social worker recruitment and retention; and in respect of this, a comment was made that this Committee was delving into operational matters that were not its responsibility 

·       budgetary risks associated with home to school transport 

·       The Dilnot Commission on how to deliver a fair, affordable and sustainable funding system for social care in England promised solutions but required major financial investment to do so

 

RESOLVED:

 

(A)

That in respect of the Revenue Budget:

 

(1)

the current position relating to the 2024/25 revenue budget be noted;

 

(2)

the actions being taken to refine forecasts and identify mitigating efficiencies to ensure each service achieves a balanced position be noted;

 

(3)

the financial risks associated with the delivery of the 2024/25 revenue budget be recognised and it be acknowledged that the forecast outturn position will continue to be reviewed, and remedial actions put in place, to ensure a balanced forecast outturn position and financial sustainability can be achieved; and

 

(4)

the progress made on transformation within Sefton New Directions be noted; and that it also be noted that a detailed report will be submitted to Cabinet, as shareholder, to its meeting to be held on 7 November 2024 outlining how a sustainable budget will be set for 2025/26 and how this will enable financial sustainability in the long term; and

 

(B)

That in respect of the Capital Programme:

 

(1)

the spending profiles across financial years for the approved capital programme (paragraph 8.1) be noted;

 

(2)

the latest capital expenditure position as at 31 August 2024 of £19.011m (paragraph 8.08); the latest full year forecast of £88.566m (paragraph 8.7) be noted; and

 

(3)

it be noted that capital resources will be managed by the Executive Director - Corporate Service and Commercial to ensure the capital programme remains fully funded and that capital funding arrangements secure the maximum financial benefit to the Council (paragraphs 8.10-8.12).

 

 

 

Supporting documents: