Agenda item

Draft Revenue and Capital Budget and MTFP

Minutes:

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.

 

  1. 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.

 

  1. 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.

 

  1. 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.

 

  1. 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.

 

  1. 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.

 

  1. 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.

 

  1. Mr Shipton, Head of Finance, encouraged Members to use the KCC Budget Dashboard for a further breakdown of spending.

 

  1. In response to comments and questions, it was said:
    1. 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.

 

  1. 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.

 

  1. 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.

 

  1. RESOLVED that the Committee:
    1. NOTED the administration’s draft revenue budgets including responses to consultation.
    2. 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.

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