Agenda item

Mr R Gough, Leader of the Council and Mr D Shipton, Head of Finance Policy, Planning and Strategy were in attendance and Mr J Betts, Interim Corporate Director of Finance; Ms C Head, Head of Finance Operations; and Ms E Feakins, Chief Accountant were in virtual attendance for this item.

1.    The Chairman introduced the item and invited Mr Gough to provide an overview of the Provisional Revenue and Capital Budget Outturn Report for the 2021-22 financial year.

2.    Mr Gough began by noting that the Council had finished the 2021-22 financial year in budget, for the 22^nd consecutive year. He addressed the financial pressures across the Children's, Young People and Education (CYPE) and Adult Social Care and Health (ASCH) directorates, as well as the lasting financial impact of the Covid-19 pandemic, which had increased case complexity. He highlighted the underspend in community adult social care which had transpired as a result of shortages in social care staff. He reminded Members of the difficulty faced when forecasting future government funding.

3.    Mr Shipton added that the 2020-21 and 2021-22 financial years had been anomalies in the grand scheme, due to the heightened level of funding and spending directly related to the pandemic. He noted that this made it particularly difficult to compare these to other years.

4.    A Member asked whether in year budget realignment had impacted policy commitments. Mr Gough reassured the Committee that realignment did not reflect a shift in policy and was required to meet changing demand in-year.

5.    In relation to the Adult Social Care budget, a Member asked how the underspend had impacted service delivery and whether any financial commitments had been made to address long term staff vacancies. Mr Gough recognised that the staff shortages were not a welcomed development and reflected an industry-wide issue, reassurance was given that the Personnel Committee would continue to monitor the issue. Mr Shipton confirmed that additional funding had been made available to providers to ensure increases in staff pay. He recognised that the sharp increase in wages across the social care industry, since the onset of the pandemic had been a significant factor, with providers still having issues recruiting despite the additional financial support.

6.    Mr Gough confirmed that, with the steer of Cabinet, Finance were developing a clearer and earlier budget development process. Mr Shipton added that work was underway to improve the clarity of outturn reports, in order to increase accessibility.

7.    Ms Head confirmed the accuracy of the £170m capital rephasing programme, and that it took account of existing and anticipated levels of debt costs.

8.    The Chairman asked how long-term support for the provision of community mental health services had been built into future budget planning. Mr Gough informed Members that Cabinet would be considering the extension of the Reconnect Programme at its 21 July meeting, which would provide support and wellbeing opportunities for children.

9.    Following a question from a Member on whether Decarbonisation Fund monies had been used ahead of the centrally set deadlines, Mr Gough agreed to clarify the position following the meeting.

10. Mr Gough was asked for an indication of KCC’s current position in relation to the Dover Inland Border Facility. He reminded Members that the decision to establish the facility had been made by government and recognised that the site had the potential to be used for other future border operations, in order to reduce local pressures.

RESOLVED that the report be noted.