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 September 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.

35.1     The Committee considered the Quarter 2 Performance and Resources Report by the Director of Finance and Support Services summarising the positions of finance, performance, risk, and workforce as at the end of September 2022 (copy appended to the signed minutes).

35.2     Summary of responses to Members’ questions and comments: -

·         This Performance and Resources Report reflects the position at the end of September so the effects of the 23 September mini budget will be reflected in the next report - Action: Director of Finance and Support Services to include up-dated national context in the Quarter 3 Performance and Resources Report to be reviewed by the committee in March

·         Accelerated projects in the Capital Programme are being funded by internal borrowing and/or grant money with no impact on the cost of external borrowing

·         Accelerated projects are schemes originally planned for 2023/24 that have been brought forward into 2022/23 - Action: Director of Finance and Support Services to provide more information on accelerated schemes

·         The Committee queried whether census data showing a large increase in population, particularly in the over 65s bracket was putting pressure on Adults Services in Middle Layer Super Output Areas  and whether any analysis has been done to predict future pressure areas - Action: Assistant Chief Executive to share analysis of this data with committee members

·         Queried whether there should be linkages made in the Council Plan to encourage people not claiming Jobseekers Allowance to return to work after the Covid pandemic. It was confirmed that the Council is trying to re-engage with this group of people

·         As a result of the findings of the Smarter Working Programme the Northleigh and Grange buildings on the Council’s Chichester site would be mothballed whilst alternative solutions for them were sought

·         Any social workers the Council employs from overseas will have to meet high criteria and be supervised by managers – Action:  The Health & Adult Social Care Scrutiny Committee to monitor the situation

·         Queried the influence the building of cycleways has on the take-up of usage and recognised that there is no one size fits all for communities- Action: The Communities, Highways & Environment Scrutiny Committee to monitor usage of cycleways

·         The 9.1m overspend in the Children and Young People’s Portfolio is due to increasing social care costs, external placements and the rising number of children requiring Education, Health & Care Plans - Action: The Children & Young People’s Scrutiny Committee to monitor

·         The Council is providing additional spaces for children with special educational needs to meet the increasing demand

·         The Services Grant from Government included funding for the national insurance increase, but this has been reversed, so there will be an underspend or some of the grant will be available to fund any increased pay award.

·         It was expected that all covid related grant money would be spent by the end of the financial year

·         Currently there is a statutory instrument in force allowing the Council to keep the Dedicated Schools Grant deficit off its balance sheet, however, if this is not extended, the Council will need to bring the deficit back onto the balance sheet which will have a significant impact on Council finances

·         The Committee queried which of the county’s schools will be covered by the new Heat Decarbonisation Plans. Action: Assistant Director Property & Assets to investigate

·         The Council believes that the £7m inflation reserve will be adequate to cover inflation in the Capital Programme – this will be monitored and take into account any slippages in the Capital Programme. The availability of contractors is an issue for the Council as many are currently unable to tender for work due to inflation and workforce issues

·         None of the £7m has been used so far as inflation is built into project costs, but may be required if there is a sudden change

·         Mitigating actions are in place to cover the non-delivery of procurement savings

·         The decision ‘Endorsement of design and procurement process: Worthing Public Realm Improvements Programme: Railway Approach Scheme’, has come out of the Forward Plan of Key Decisions because the Cabinet Member for Support Services and Economic Development was asked by Worthing Borough Council to suspend the programme whilst it is looked at in more detail

·         Rolling out high-speed broadband has to be commercially viable to be taken forward, where it is not, the Council, with the assistance of government Grant, looks at providing a voucher scheme or other help

·         The increasing impact of inflationary rises and cost of living issues could have an impact on the demand for Council services, this will be covered in considerations for the 2023/24 budget

·         The Council pays above the national minimum wage and is looking at terms and conditions and ways of working to improve recruitment and retention of staff

·         The high number of people with disabilities that have left the Council coupled with fewer new starters (or transfers from CAPITA) who have not completed the equality and disability disclosure information accounts for the lower number of disclosures this quarter and why it is expected to increase

·         There has not been an increase in people disclosing mental health issues

·         The figures around staff sickness were unclear – Action: Director of Human Resources and Organisational Development to investigate and ensure they, and the narrative around them, are correct going forward

·         Details of the numbers and cost to the Council of days lost due to staff sickness by department was requested – Action: Director of Finance and Support Services to look at the possibility of producing this information for the Committee

35.3     Resolved – that the Committee

                     i.        Recognises that we are in fast moving uncertain times in terms of the financial situation

                    ii.        Requests that the Quarter 3 Performance & Resources Report includes an update in terms of the national context, particularly in relation to inflation and interest rate changes

                   iii.        Expresses concerns over the level of inflation and its effect on the Council’s budget, the continuing issue around the Dedicated Schools Grant deficit, the Capital Programme and recruitment and retention across all services of the Council. (The Committee will receive a report on recruitment and retention, related to Corporate Risk 11, at its January meeting. That report is requested to include information re the safeguarding issues raised when employing officers from other countries)

                  iv.        Recognises that Corporate Risk 22 (financial resilience) is an on-going issue that it needs to keep in mind in terms of future scrutiny of the budget and further Performance & Resources Reports.

                    v.        Asks other scrutiny committees to take forward the following:-

·         Health & Adult Social Care Scrutiny Committee – specific issues in relation to the recruitment and retention of Social Workers

·         Children & Young People’s Services Scrutiny Committee – the projected portfolio overspend, the mitigating actions required and budget considerations

·         Communities, Highways & Environment Scrutiny Committee – provision of cycleways and how this does/doesn’t influence residents to take up cycling

                  vi.        Requests more detail in terms of the sickness absence rates by service and whether officers could give consideration to providing figures in relation to the cost of absences