Agenda item

To consider the report.

Following consideration of the officer report, appendices and discussion, the Executive noted:??

a.        The forecast overspend of £18.3m (3.7%) for the year and the recovery action being taken and mitigations put in place to address this.

b.        The next report to be received by the Executive on Revenue Budget Monitoring will be the Month Nine report in February 2024.

The Leader of the Council and Lead Member for Governance and Communications, Cllr Bill Revans, invited the Deputy Leader and Lead Member for Resources and Performance, Cllr Liz Leyshon, to introduce the report. 

The Deputy Leader and Lead Member for Resources and Performance, Cllr Liz Leyshon, introduced the report, highlighting: the new format of budget monitoring report following the introduction of solver working and Microsoft Dynamics; that the report is from the end of October (month7) with month 9 (Q3) to be considered at 7 February 2024 Executive meeting; the small improvement in the projected overspend due a range of actions and the introduction of the spending control boards; that the report details Directorate budget projections and mitigations; summarised table one of the report and the impact of Adults and Childrens Services budget overspend on the Somerset Council budget compared to the remainder of the Council; the added detail of government and special grants to aid understanding of funding specific parts of the Council's delivery of services.

The Service Director - Finance and Procurement, Nicola Hix, added to the above points, highlighting: the Adult and Children Services forecast overspend, and that the rest of the Council is forecast to be £10.5m underspent; summarised the pressures and mitigations in Adult and Children Services budgets; summarised the current positive effect and value of the spend boards, including reduced payments, further sight and scrutiny of spend, the encouragement across the Council to think differently and the further monitoring and enforcement of the no purchase order, no payment and the work underway with services to ensure compliance. 

At the invitation of the Leader of the Council, Cllr Bill Revans, the Executive Director for Adult Social Care, Mel Lock, further provided details for the reasons for the Adult Services overspend, including, the local and national pressure, the residential nursing placements that have increased, the increase in paying for services, and that work continues to mitigate this.

At the invitation of the Leader of the Council, Cllr Bill Revans, the Executive Director for Children, Families and Education, Claire Winter, further detailed the reasons for the Children Services overspend, including the external placements  for children in the care system, the impact of a nationally driven market system, costs for children with increasingly complex needs and home to school transport, and highlighted the mitigations currently in place and the significant amount of work taking place to review contracts to reduce costs while making sure that children can still get to school effectively and safely.

The Leader of the Council, Cllr Bill Revans, invited comments from other Members present, questions and points raised included:  the national and local growth in numbers of Children with special educational needs and disabilities, including the impact of the change in the process and system over a period of time, the increase in required completion of education, health and care (EHC) plans post 2014, the increasing number of children with social, emotional mental health issues and the local and national stark situation, with Somerset slightly above the national average; the savings and delivery associated with Local Government Reorganisation, the unprecedented challenges and the additional savings needed to be found across the Council to create a sustainable organisation; and the current work to revise and redesign the programme to reflect the budget and financial challenges faced by the Council

The Executive proceeded to vote on the recommendations, which were agreed unanimously.???

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Following consideration of the officer report, appendices and discussion, the Executive:????

a.        The forecast overspend of £18.3m (3.7%) for the year and the recovery action being taken and mitigations put in place to address this.

b.        The next report to be received by the Executive on Revenue Budget Monitoring will be the Month Nine report in February 2024.

ALTERNATIVE OPTIONS CONSIDERED: As set out in the officer report.??

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REASON FOR DECISION: As set out in the officer report.?