Mr P Oakford
(Deputy Leader and Cabinet Member for Finance, Corporate and Traded
Services) and Mr D Shipton (Head of Finance) were present for this
item.
- Mr Oakford, Deputy Leader and
Cabinet Member for Finance, Corporate and Traded Services,
introduced the report to the Committee, reminding Members that it
was a provisional budget and that Public Health funding was
ringfenced.
- This draft budget was prepared in
advance of the Government’s budget and therefore there was to
be another round of scrutiny in January 2025.
- There were one off costs approved by
the Council which required £19.8 million worth of policy
savings. After the first quarter there was a £16 million
overspend in Adult Social Care which increased pressure on the
finances.
- The Government’s increase in
National Minimum Wage and employers’ contributions to
National Insurance (NI) had increased pressure on employers. An
increase of 3% was budgeted for these areas, but within the
Government’s budget there was an 11% increase.
- There was an increase in the Adult
Social Care grant from the Government. Estimated figures showed
that KCC was to receive around £13 million. However, since
Adult Social Care had to make savings of £54 million in 2024
and a further £40 million in 2025, a significant amount of
additional savings needed to be made.
- Mr Watkins noted a 1% uplift from
the Government for Public Health. There was a transformational
program underway to assess the efficiency of KCC services, to
ensure spending was targeted and effective in order to achieve the
best outcomes. Following the Government’s pay awards for NHS
staff there were increased costs of almost £2 million for KCC
connected to the commissioning from NHS Trusts.
- Mr Shipton, Head of Finance,
encouraged Members to use the KCC Budget Dashboard for a further
breakdown of spending.
- In response to comments and
questions, it was said:
- A Member questioned the impact of
employer NI contributions on non-governmental organisations (i.e.
social care providers). Mr Oakford shared that he and other senior
Members and Officers had met with the Kent Integrated Care Alliance
(KiCA). A joint press release had been produced to urge the
Chancellor of the Exchequer to exempt social care providers from
the NI contributions increase.
- A Member asked for further detail on
the Mental Health Grant. Mr Watkins shared that £3.5 million
of funding had been allocated to mental health.
- A Member highlighted KCC’s
intention to offset money to create a safety net for those who
could have struggled with the changes to the Winter Fuel Allowance
and questioned whether there were systems in place to help identify
those who would require support efficiently. Mr Oakford assured
Members that systems were in place to ensure residents were
supported.
- RESOLVED that the
Committee:
- NOTED the
administration’s draft revenue budgets including responses to
consultation.
- SUGGESTED any changes
which should be made to the administration’s draft budget
proposals related to the Cabinet Committee’s portfolio area
before the draft is considered by Cabinet on 30th January 2025 and
presented to Full County Council on 13th February 2025.