Agenda item

1) Mr Oakford outlined the report. There had been a reduction in the forecast overspend since the previously reported position. The overspend was still a cause for concern and work was ongoing to ensure that it was minimised. The Council's savings target for 2022/23 of £51.6 million had not been met, with £36.8 million forecast to be delivered by year-end. The savings targeted needed to be achieved in the next financial year as KCC could not keep bringing savings forward and rely on reserves. The High Needs deficit continued to be the Council's single biggest financial risk at £142 million by the end of the financial year. The Safety Valve Agreement with the Department for Education was expected to help in the medium term and put the budget on a sustainable footing. Difficult decisions were required to address the financial situation in the medium term.

2) Further to comments and questions from Members, it was noted that:

·       The forecast pressure for Adult Social Care was £25.6 million, a reduction of £2 million since quarter 2. The pressures were identified as £13.3 from the non-delivery of savings, and £12.2 million was moved back to 2023/24. There was also £2.3 million for the required increase in bad debt provision and £9.9 million of activity-related pressures. There was ongoing targeted action on the use of short-term beds, which contributed to a reduction in spending. It was noted that joint work across health and social care on hospital discharge was ongoing. Efforts were being made to use innovative technology and community care options to reduce the reliance on nursing and residential care. Work was ongoing to recover funds owed to the authority, in line with ethical best practice while supporting those in financial hardship.

·       There was a long-term contract with the waste plant at Allington and the contract increased at an agreed rate linked to the Retail Price Index, causing a hit to the budget in April. The Waste Management Team had managed to absorb the cost pressure by improving recycling and recycling rates.

·       The challenge that the High Needs Block deficit placed on the Council was acknowledged. There had been an uptick in the number of children identified as having SEND needs or requiring an Education, Health and Care Plan (EHCP), and there had been some evidence that the criteria for SEND in the SEND code of practice had been loosely applied. The intention was to ensure that the criteria were applied appropriately and this would relieve the pressure on the budget.

·       There had been a small increase in the number of Looked After Children, but the placement costs were high and a significant cost pressure. There was an issue with children with more complex needs as their placement costs were very high due to availability and staffing ratios. Work was ongoing to work in partnership with health colleagues to alleviate some of the pressures and recruit in-house foster carers. It was also noted the high costs of legal services. 

·       There were two areas of overspend identified as the delay in savings from the Supported Bus Services decision and the Kent Travel Saver as further capacity payments had to be made to providers after a delay of receiving payments from parents meant that the income would not be reported in the current year’s accounts. Highway costs had been impacted by the rise in the rate of inflation and the cost incurred from the impact of Storm Eunice.

3) RESOLVED to agree the recommendations as outlined in the report.