Agenda item

The Committee considered the report of the Corporate Director of Resources, which provided details of the forecast outturn position for Children and Young People’s Services (CYPS) highlighting major variances in comparison with the budget for the year, based on the position at the end of September 2024 (for copy of report, see file of minutes).

The Finance Manager was in attendance to present the report and reported that based on the revised budget position to the end of September 2024 CYPS had an overspend of £9.517 million representing a 5% increased overspend. The largest part of the overspend related to a significant increase in the number of children in the care system with complexed needs. The provision of placements providing crisis intervention and intensive support was based on 10 placements per annum which had increased to 12 placements and was reflected in an increased spend. Significant work had been undertaken by the Service to reduce the reliance crisis intervention placements as part of a refreshed Placement Sufficiency Strategy. Professional fees had increased due to the higher number for children in care. These fees related to increased axillary support for legal, family time services and independent visits. Home to school transport budget had been increased and was forecast to be in line with the budget.

Within the schools block the forecast reflected 137 maintained schools, however since the budget a further 5 schools have converted to academy status and 1 nursery amalgamated with a primary school. The forecast position indicates some schools would be in deficit at the end of the academic year and be unable to set a budget next year.

The Council were awaiting confirmation from central Government for an indication on how the defect would be managed as it was not to be reflected in the Council budget until March 2026. The government have given any indication that they would offer advice in the next 3-4 months on how the deficit would be addressed.

Mrs Gunn noted that it was difficult to manage a budget and forecast spend when the placement of additional children was so unpredictable and costly. However, the focus needed to be on prevention of CiC cases rather than interventions at the stage when placement intervention was required.

The Principal Overview and Scrutiny Officer, Stephen Gwillym responded to a question from Councillor S Deinali stated that the Government budget settlement announcement would be included in the latest MTFP15 Update report going to Cabinet on 15 January 2025. This report would then be considered at Corporate Overview and Scrutiny Management Board on 21 January which members were welcomed to attend. Once approved the new budget would be reflected in the Q1 forecast report to Childrens and Young people Scrutiny Committee in the September.

Councillor Hunt commented that it was positive to see changes made to the home to school transport budget reflected in the forecasted spend.

The Finance Manager responded to Councillor B Kellett who asked for clarification on the position of CYPS overspend being funded corporately from general reserves. CYPS had not set aside any cash limit reserves hence the service did not hold a reserve to cover the deficit. As a national issue, and the sufficiency programme was in place to consider savings that could be made. There was also national input needed as well as local sufficiency board input to address profiteering in CiC placement provision by external providers.

Resolved: That the Children and Young People’s Services overall revenue position be noted.