Agenda item

Report by the Chief Executive and Director of Finance and Support Services.

Each of the Scrutiny Committee Chairmen will be invited to speak for up to three minutes to provide the views of their Committee on respective parts of the Quarter 4 Performance and Resources Report.

Each of the main Minority Group Leaders will be invited to speak for up to three minutes on the Quarter 4 Performance and Resources Report.

The Cabinet will discuss the report prior to taking any decision.

Following consideration of the report, the Cabinet resolved to:

1. Agree the following transactions to cover the £10.541m Portfolio overspend position:

a)   Utilise the remaining £4.747m Contingency Budget

b)   Utilise the £0.665m Sources of Financing additional income

c)   Utilise the £4.947m additional income within Non-Portfolio budgets

d)   Utilise £0.182m from the Inflation Contingency Reserve

2. Agree the proposed changes to the Key Performance Indicator measures detailed in Annex C.

The call-in deadline is 29 June 2023.

3.1     Cabinet considered a report by the Chief Executive and Director of Finance and Support Services. The report was introduced by Cllr Jeremy Hunt, Cabinet Member for Finance and Property who outlined the performance and finance summaries for the quarter. The outturn position reports an overspend of £182k which will be managed through inflationary contingency reserves. Adults and Children Social Care continue to be the biggest pressure areas and support from Government going forward will be required to help manage this. The statutory override for the Dedicated Schools Grant (DSG) deficit remains for three years, however plans are needed to deal with this challenge. The Cabinet Member highlighted that some capital projects had been accelerated.

3.2     Cllr Kevin Boram, Chairman of the Fire and Rescue Service Scrutiny Committee congratulated the service on its performance and highlighted the importance of retained firefighters and their dedication to keeping people safe.

3.3     Cllr Paul Linehan, Chairman of the Children and Young People’s Services Scrutiny Committee recognised the financial pressures and challenges around placements for children cared for by the local authority reflecting market and national challenges. The Committee welcomed improvements in care leavers in employment, education and training and were pleased to hear the KPI relating to child protection plans is being revised for 2023/24 to better reflect performance in this area. The challenge of Education and Health Care needs assessments was noted but the Committee was pleased that funding will be released to schools at the 20-week mark. The Committee recognised the impact of Covid-19 on attainment for disadvantaged pupils and KS2 and the pressure of the DSG.

3.4     Cllr Pieter Montyn, Chairman of the Performance and Finance Scrutiny Committee advised the Committee had noted the impact of inflation and cost of living pressures on the Council’s operations and that increased demand on most services is likely to present budget challenges. The Committee sought reassurance that effort is made to lobby the Government for increased funding in all areas and particularly in social care. Non delivery of savings is a concern and the Committee will monitor doubtful debt provision. The Committee requested to be informed on the cost of workforce absence to the Council.

3.5     The following points were made by Cabinet Members in discussion:

Ø  Cllr Paul Marshall, Leader of the Council set out the aims in the Council Plan to deliver service priorities and to protect the environment. He highlighted the unbudgeted and unexpected challenges faced in recent months and the Council’s ability to respond to these. He explained the positive achievements throughout the year including a good or outstanding Ofsted rating for all in-house residential children’s homes, the ongoing delivery of many highway schemes and the Bus Service Improvement Plan (BSIP), improved Special Educational Needs and Disabilities (SEND) provision through the capital programme and carbon tonnage savings for schools.

Ø  Cllr Steve Waight, Cabinet Member for Support Services and Economic Development advised of the portfolio underspend despite changes and additional costs to the statutory complaints services. The SmartCore project is a challenging and complex piece of work and the Cabinet Member thanked officers for their ongoing commitment to its delivery. The Smarter Working programme is ongoing and will likely result in the use of fewer buildings therefore giving potential for a reduction in the Council’s carbon footprint. He welcomed the professionalism and effectiveness of the workforce and the ongoing impact of Covid-19 on absence.

Ø  Cllr Jacquie Russell, Cabinet Member for Children and Young People, Learning and Skills described a challenging year for the portfolio with the complexity and cost of placements resulting in an overspend. Plans are in place to reduce the percentage of external providers and the number of children cared for is consistently lower. A recent full Ofsted inspection reported significant improvement and the service continues a relentless focus on quality and consistency of practice. The growth in numbers of those with an EHCP and requiring home to school transport has resulted in an overspend in the Learning and Skills element of the portfolio. The DSG deficit remains a big concern but work is underway to deliver better value for SEND activity. Adult learning reprovision has added a cost pressure and the Cabinet Member thanked staff in the service for mitigating the impact of recent disruption to this service.

Ø  Cllr Deborah Urquhart, Cabinet Member for Environment and Climate Change and Deputy Leader said the council is in a sound financial position and the use of contingency and reserves has offset challenges of inflation and demand in social care services. A national award has been won in recognition of the local energy company at the Manor Royal business park for the County Council’s partnership working. A collaborative project with Chichester college and university is underway to inspire waste prevention, reduction and recycling. The increased disposal costs due to inflation have been offset due to reduced tonnages and increased recycling income and revenue from solar farms has offset energy costs. Work is underway to decarbonise the corporate estate.

Ø  Cllr Joy Dennis, Cabinet Member for Highways and Transport reported an outturn overspend of £1m owing mainly to energy costs. The number of required safety repairs has increased following wet weather. Concessionary bus fares have offset some overspend, as has additional works from highways and street works. Government funding has enabled the roll-out of on street electric vehicle charging. Significant improvement in highways defect repairs has been achieved, although recent weather has returned the KPI to amber. Work in partnership with Sussex Safer Roads and Sussex Police is ongoing to reduce the number of killed and seriously injured cases looking at where higher numbers of accidents occur and measures which can be taken to mitigate these.

Ø  Cllr Bob Lanzer, Cabinet Member for Public Health and Wellbeing described the increased access and availability of the Gro Health app to support mental health and physical health. The Cabinet Member hosted a seminar with a range of organisations which considered the effect of the pandemic on homeless people with its recommendations passed onto The Housing Forum. West Sussex has a good measure for the healthy weight of 10-11 year olds however work is ongoing to improve this further. Postponed activity during the pandemic resulted in a reserve which will be used to top-up the public health grant.

Ø  Cllr Amanda Jupp, Cabinet Member for Adults Services advised the service ended the year on a balanced budged reached through mitigation measures and underspend in some areas. Continuing pressures on the service will present challenges in terms of demand and obtaining required savings. The Market Sustainability Plan has been published; strengthening the care workforce and supporting people to remain in their communities is a key focus. A data review and improvement plan will provide more up to date information to help inform and monitor the service and progress.

3.6     Cllr Hunt discussed the increased revenue budget for the financial year and the importance to try and remain within this budget in view of the pressures ahead. Cllr Hunt thanked staff, Cabinet and the Scrutiny Committee members for their comments and support for the work done by all teams.

3.7     Resolved – that Cabinet

1. agree the following transactions to cover the £10.541m Portfolio overspend position:

a)   Utilise the remaining £4.747m Contingency Budget

b)   Utilise the £0.665m Sources of Financing additional income

c)   Utilise the £4.947m additional income within Non-Portfolio budgets

d)   Utilise £0.182m from the Inflation Contingency Reserve

2. Agree the proposed changes to the Key Performance Indicator Measures detailed in Annex C.