Meeting documents

To consider these reports.

The Committee considered this report that summarised the key messages from the Medium-Term Financial Plan (2020-23) Strategy Report considered and approved by Cabinet on 18 December 2019. It also included an overall assurance narrative from the Director for Children’s Services (DCS) alongside more details about the key areas of focus for transformation in the next few years, and further explanation of the reasons for movements in levels of spend and funding between years over the MTFP period.

It was explained that last year the Council had recognised the need to address its financial challenges and the importance of setting a robust budget for this year as well as laying foundations for the financial plans for 2020/21 and 2021/22. The report continued details of that process and revised indicative figures for 2020/21 and 2021/22 and looked further ahead to the financial year 2022/23.

It was noted that the MTFP Strategy had recognised the Council’s declaration of a climate change emergency last February and that the Council was now working with partners to develop a Climate Emergency Strategy. When a strategy had been adopted, later in 2020, the Council would need a budget that would be flexible enough to reflect agreed priorities. Pending this climate strategy, no specific activities had been factored into the indicative budget proposals at this stage.

The focus of the report was to enhance understanding of the spending requirements and areas of transformation required to be delivered within Children’s Services. Members heard this would aid understanding of the on-going risks within approved budgets, the levels of reserves, balances and contingencies, as well as the mitigations aimed at limiting the impact on core services, especially those prioritised in the County Plan.

Attention turned to Table 1 in the report which showed the total net budget for Children’s Services for the MTFP period 2020-23 broken down by service area. Those budgets reflected the previous indicative budgets agreed by the Council last February, and had been adjusted for expected movements since then.

It was noted that overall the total increase in budgets across the MTFP was 14%, and the 2020/21 proposed budget for Children’s Services, of £86.5m, represented a year on year increase 7.9%. This had been assessed as being necessary, despite the re-basing of the Children’s Services budget applied in 2018/19 and reflected the on-going demand for core Children’s Services (in terms of volume and complexity).

In response to a question Members heard that the Children’s Services budget was based on assumptions in relation to partners, including the NHS, Police, Schools and the capacity of other Council services to deliver the strategic  priorities set out in the Children and Young People’s Plan (CYPP) 2019-22 and continued multi-agency operational improvements overseen by the new Somerset Safeguarding Children Partnership arrangements. Grant Thornton (the Council’s Auditors) had provided helpful challenge to achieve a more realistic demand forecast, resulting in a more secure budget for Children’s Social Care.

There was a discussion of the report that set out changes to the requirement to spend by the services, after having considered service demands, and inflation, and progress achieved in delivery of previously agreed plans and looking forward to reflect future planned transformation and efficiency plans. Members noted the movements represented changes from the existing MTFP (2019-22) agreed last February and adhered to the key principle of ensuring robust, transparent budgets were set for future years. This would place the Council in the best position to effectively monitor service spending needs and funding.

There was a question to the DCS about the areas he regarded as representing key risks to the Council and he noted that he would like to see improvement in retaining and attracting high quality staff; improving care placements for children and young people in Somerset; improve foster service recruitment; and noted the frustration regarding one-off and/or short term funding and the uncertainty it created regarding planning and delivering services.  

The Committee agreed to:

·         Support the financial strategy and welcome the long-term view as presented;

·         Note that the Director of Children’s Services was content with the rebasing of the budget for the 2020/21 financial year, representing a 7.9% on year increase;

·         Note the uncertainty of some grant funding, as this represented about 4% of the Children’s Services budget and the potential impact on future funding/spending;

·         Support the Director of Children’s Services and staff and to encourage the Director and Cabinet to continue to seek and develop innovative solutions.

The Committee requested that an update report on the work of the SENDIAS team be brought to a future meeting.

The Chair thanked the Interim Director of Finance, on account of it being the last meeting she would attend in this capacity, noting her clear and concise explanations of complex issues, and he wished her well for the future.