Meeting documents

To consider the report.

The Committee heard a 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 Adult’s Services and the Director for Public Health, 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.  All of this is to enable effective Scrutiny of relevant service areas ahead of the more detailed budget report being presented to Cabinet and Full Council in February 2020.  The Committee heard that significant improvements have been made to the MTFP process since last year to ensure robust budgets are set over the medium term, which includes:

·         Challenge sessions held (chaired by the Chief Executive) to ensure evidence-backed budget pressures;

·         Wider stakeholder engagement to improve awareness of financial challenges;

·         Use of scenario planning to ensure a range of options are considered;

·         Multi-year approach to optimise longer term planning and ensure a focus on all three years, and;

·         Continued tight financial control of in-year budgets.

The key drivers to the budget planning were protecting frontline services, strengthening financial sustainability, ensuring robust budgets, and strengthening earmarked reserves. The Committee were reassured that the budgets as presented did not contain any new cuts to frontline service. There were, however, some previously agreed cuts that would still be applied.  A key element to the confidence in the budgets now proposed was that they had been subject to ‘challenge sessions’ which were peer-led and tested assumptions for a range of scenarios.  The current proposed budgets represent a robust balanced revenue budget for 2020/21, and there will be a modest shortfall for 2021/22 and 2022/23 (<£10m). This represents an affordable multi-year capital programme and offers a high level of confidence in figures across all years.  If these proposed budgets are agreed, there will be an opportunity to further replenish reserves.

The Committee heard that there are to be two further reviews:  a Fair Funding review and a Comprehensive Spending Review.  Somerset is in a strong position to influence both these reviews and hopes to achieve a more equitable allocation.  The timeline for the budget is that this will go to Cabinet on 10 February and Full Council on 19 February.

The Committee heard that the funding for Public Health is still based on an assumption, as additional allocation is indicated as an above-inflation increase. What is not clear at this stage is if this increase will come with additional responsibilities. There is also no clarity regarding the increased costs associated with the Agenda For Change pay increase for Health Workers. 

The Committee discussed the proposed budgets and the following summarises that debate. The Committee were keen that, whilst the increase in National Minimum Wage and the Agenda For Change were welcome, it was essential to maintain the pressure on central government to make sure the appropriate funding was allocated; otherwise, the investment in Public Health will not have the stability and drive it currently has. The Committee also agreed that it would be most helpful if allocations that had in the past been ‘one-off’ funding could be part of the initial allocation, as this will allow the Council to plan ahead for future years with confidence.  The Committee acknowledged the positive contribution made by the voluntary sector and was keen to do all it could to support all aspects of volunteering.  Somerset has made great progress in supporting people to live longer, and this brings additional demands on the social care budget. The focus now of Public Health is to ensure that the older generation is healthy and independent for as long as possible. The Committee was interested in hearing about the ‘Brain in Hand’ app as well other adapted technology to assist in this. 

The Committee was interested to hear how the Council was going to support the increase in minimum wage for providers, as it was clear this would have an impact on their ability to delivers services at the same level.  They were informed that there was an agreed 2% uplift and that negotiations were currently ongoing but had not yet concluded.  The Director for Adult Social Services was confident there would be enough money to cover this and members were informed that any decision regarding a fee uplift would be a key decision and would be open to scrutiny.

The Committee were keen to find out if there was scope for further efficiencies in delivering high quality services. The were assured that this agenda had not been forgotten and that further work on closer working in neighbourhoods was underway. The ‘Home First’ programme and the Falls Prevention service have done much to bring together the range of services in Primary Care.

The Committee was interested to hear that the focus for Public Health for the next year will be looking at cardiovascular disease. It is an area where more prevention work can be done. The Committee was keen that any work in this was properly joined up and was connected to other services at the earliest stage.

The Scrutiny Committee For Policies, Adults and Health Committee:

·         Considered the proposed indicative budgets for 2021/22 and 2022/23 for Adult Services and Public Health budgets,

·         Agreed to make a request through Cabinet to write to the appropriate Minister requesting that and additional costs incurred as a result of the Governments Policy "Agenda for Change" are met from central funds.