Agenda item

A report by the Chief Executive and Director of Finance and Support Services setting out the corporate performance, finance, workforce, risk and capital programme positions as at the end of June 2022.

The Committee is asked to examine the data and supporting commentary for the Performance and Resources report and make any recommendations for action to the relevant Cabinet Member or Scrutiny Committee.

25.1     The Committee scrutinised a report by the Director of Finance and Support Services (copy appended to the signed minutes).

25.2     Summary of responses to committee members’ questions and comments: -

·       The increase from £5.5m underspend to more than £7m overspend may get bigger due to a number of challenges and inflationary pressures – the Council will continue to monitor the situation closely, look for ways to provide services in a more efficient manner and use contingency budgets if necessary, in order to keep the pressures under control.

·       The Council estimates that the National Joint Council pay offer will cost an extra £4.5m, which has been budgeted for

·       The Council has always paid above the minimum wage, but it is important to offer good, competitive packages for staff to encourage recruitment and retention

·       Some Covid grants had been carried forward and will cover the lagging impact of Covid – it was assumed that if Covid worsened, more grants would be made available

·       The Council is expected to meet inflationary pressures from contingency and reserves. If budget management reserves were to be used, they would have to be replenished, but it is thought this won’t be necessary as fuel prices are expected to decrease

·       There was a query as to whether the A2300 improvement scheme had led to active/sustainable travel choices –
ACTION: Head of Performance & Intelligence to investigate

·       £20m was added to the Capital Programme for High Needs Capital Funding, but a grant for £21.050m has now become available to cover this expenditure. Cabinet will be briefed on possible ways to utilise this capital budget going forwards

·       There was a query about the end date of the Crawley Schools Private Finance Initiative contract –
ACTION: Deputy Chief Finance Officer, to investigate

·       The Dedicated Schools Grant deficit is likely to have to come out of budget management reserves from 2023/24 but awaiting Government guidance around this

·       The Council is aware of the inflationary pressures on the Capital Programme and expects inflation of 24% over the next five years. The Programme is being closely monitored and analysis is taking place to model the inflationary impact across a range of materials.  The impact will be built into the budget review of the Capital Programme and could be mitigated by use of contingency reserves or, if necessary, borrowing

·       Corporate Risk 11 (skills shortage) is a big challenge for the Council as workforce recruitment and retention problems are being faced across all services. Work is underway to better understand the issues and develop competitive packages.

·           Corporate risk 68 is still valid as the Covid-19 pandemic is ongoing, but it may be reviewed and combined with corporate risk 70

·         The Human Resources and Organisational Development Directorate’s salary benchmarking target has been achieved and the policy was working. More information will be included in the Quarter 2 report

·        Significant changes are taking place in Adult Social Care to build flexible capacity around assessments and budgets

·        The Council would welcome a countywide rollout of the food waste collection trial in Arun, but this was unlikely until the Government announces funding for it

·        The figure of £655,996 for Waste – New Service Model (Recycling Credits) was not in the previous performance and resources report – ACTION: Cabinet Member for Finance and Property to investigate

·        The joint initiative with district and borough councils to support small businesses with their carbon journey was part of the Council’s economic strategy – a target to assist 1,760 had been surpassed

·        The development of Pond Road in Adur was part of One Public Estate but could not be advanced as the NHS was unable to provide its share of the capital required

·        In the Worthing Public Realm Improvements programme, the Portland Road scheme had been delivered and well received, design work was being carried out on the Station Road scheme and the first part of the Montague Place scheme was complete, but a complicated Traffic Road Order was required to complete the final part

·        The Pulse Survey had a 53% response rate providing a good temperature check of the organisation

·        A Key Performance Indicator (KPI) for vacancy levels was not thought to be a good idea in case it encouraged taking on people just to meet a target – more useful would be looking at the number of vacancies and the time they took to fill

·        The data around staff sickness was unclear – ACTION: Director of Human Resources and Organisational Development to investigate

·        The options being considered to mitigate cost pressures on the A29 scheme in the Capital Programme to be raised at the next meeting of the Communities, Highways and Environment Scrutiny Committee

·        Concerns over obtaining a balanced budget for Adults’ Services by realising savings should be raised at the next meeting of the Health & Adult Social Care Scrutiny Committee

25.3     Resolved – that the Committee: -

     i.        Has concerns over the continuing impact of increasing inflation on the Council’s finances, both on revenue and capital

    ii.        Has concerns over the level of the Dedicated Schools Grant and any on-going implications on the Council’s finances

   iii.        Recognises the pressures in Adult Services to balance the budget and the reliance on meeting savings targets

  iv.        Recognises the continuing impact and relevance of the Covid-19 pandemic

    v.        Requests more information in the Quarter 2 Performance and Resources Report on Corporate Risk 11 in terms of controls and actions

  vi.        Recognises the need to refresh the Pulse Survey

 vii.        Has concerns over the recruitment and retention situation reported through the risk register (Corporate Risk 11) and supported the need for the Committee to keep a watchful eye on this

viii.        Requests that consideration be given to inclusion of a Key Performance Indicator on vacancy rates