Agenda item

1. Mr Oakford (Deputy Leader and Cabinet Member for Finance, Corporate and Traded Services) introduced the report.

2. Mr Oakford said there was a projected revenue overspend of £60.9 million, an increase of £10.3 million since the last report. Mr Oakford then gave an overview which noted the seriousness of the situation, the causes attributed to the overspend, the use of the risk reserve and the significant management action required in response. Mr Oakford said that the projection had been one of the most challenging that the Council had faced, and difficult decisions would need to be made. 

3. Mrs Bell (Cabinet Member for Adult Social Care and Public Health) said that a significant element of the overspend related to the Adult Social Care and Health directorate. Mrs Bell said that savings were to be made in part through the procurement of new models of care. Workforce and recruitment issues had delayed the delivery of the benefits arising from self-directed care. Delays to the procurement and lead-in time from the pilots had led to a slippage of £4.8 million of savings.

There had also been slippage in the delivery of the new operating model of Social Care, delayed from 2022 to 2023-24 due to the size and scale of the required restructure. Workforce and market pressures had further affected the delivery of savings with more people placed into short-term residential care with non-framework providers. Mrs Bell informed the committee of what monitoring measures and management actions had been put in place to address the overspend. A range of areas were reviewed to minimise non-essential spending. The full extent of the savings to be achieved had yet to be quantified, but limited savings for 2022 were forecast, with greater savings intended to be found in 2023.

4. Miss Carey (Cabinet Member for Environment) noted the impact of waste on the budget. The income generated through recycling had been affected by market changes. Miss Carey noted that the Council had introduced measures encouraging the reduction of waste volumes and promoting reuse and recycling countywide.

5. Mrs Chandler (Cabinet Member for Integrated Children’s Services) gave an overview on the recruitment, maintenance and use of agency staff for social workers in the county. A review was ongoing to see what new ways of working were possible, with attempts to reduce the reliance on fully qualified social workers whilst ensuring young people and families receive the same quality of support. Mrs Chandler noted there had been a small increase in younger children and unaccompanied minors not seeking asylum placed into care, which had increased the use of agency foster carers to the Council. A review of all placements was being undertaken.

6. Mr Brazier (Cabinet Member for Highways and Transport) said there had been an overspend of £1.7 million for highways asset management in quarter 2, which was attributed to the rising energy costs for street lighting and lighting tunnels. It was anticipated the overspend would be offset through income for street works and permits. The £2.2 million of savings from supported bus services had been delayed following a challenge but this was to be achieved in the next financial year. Another overspend had been seen with the delay in producing the Kent Travel Saver passes. £1.1 million was to be taken from reserves to offset this, with it due to be replenished through income generated in 2023-24.

7. Mr Love (Cabinet Member for Education and Skills) said that of the £15 million overspend in education, £14 million was from home-to-school transport. Mr Love said that spending per pupil was in line with national average or better with the costs arising from high demand. Repairs to school buildings and the use of mobile classrooms were other sources of overspending. The planning process was to be streamlined, to help reduce timescales and costs. The budget for community learning and skills was to be reviewed to ensure that it was sustainable.

8. Mr Hill (Cabinet Member for Community and Regulatory Services) noted that a small net underspend had been recorded.

9. Mr Murphy (Cabinet Member for Economic Development) reported that Economic Development was £16,000 under budget. A further £40,000 and £80,000 of savings had been identified.

10. Mrs Prendergast (Cabinet Member for Communications and People) noted that work was ongoing to identify non-essential spending.

11. The Leader said that although some flexibility had been built into the Budget, the rate of inflation had exceeded all expectations. Further work was to be undertaken to find further savings.