Agenda item

The Committee considered the report of the Corporate Director of Resources which provided details of the forecast outturn budget position for the Children and Young People’s Services, highlighting major variances in comparison with the budget for the year, based on the position at the end of September 2022 (for copy, see file of minutes).

The Finance Manager Children and Young People’s Service (CYPS) was in attendance to present the report and highlighted the major variances and advised Members that since writing the report there was additional funding for schools next year.

He emphasised that pressures from the rise in the number of children looked after with complex needs, 981 in quarter one rising to 1028 in quarter two were impacting on the budget.

The Finance Manager CYPS added that schools were in a better position having taken decisions between quarters one and two and had managed reductions in energy contracts, but that significant work would need to be done assuming pay awards stay, and the service was working with schools to set budgets for the next financial year. The additional government funding for schools will not impact on until the next financial year.

In relation to the centrally retained block more special school places were being taken up which was costing more and was impacting on the high needs block which was a deficit balance. The Finance Manager CYPS emphasised that this was a problem nationally and the high needs block deficit at Durham County Council was at the lower end of local authority high needs block deficit balances with others having much higher deficits than Durham County Council. He went on to advise that Durham County Council was part of the Delivering Better Value programme, and it would lead to more efficiencies and would come in later this year.

In response to a question from Councillor Townsend on the pay award for teachers and support staff and the impact on the budget the Children and Young People’s Finance Manager indicated that the pay award was for the current financial year and the additional funding from government was for the next financial year.

Mrs Gunn asked for an update on the home to school transport analysis and how much of the higher needs block was to do with third party providers.

The Finance Manager CYPS indicated that a report on the home to school transport would be presented to a future scrutiny committee. He would circulate a response to the committee on third party providers but indicated that it was relatively small.

The Head of Education and Skills advised Members that a small team had been recruited to look at home to school transport and expected a report April 2023.

In response to a question from Councillor Mavin the Children and Young People’s Finance Manager indicated that there were some special schools with a deficit budget.

Resolved: That the overall revenue position be noted.