Agenda item

To consider a report which sets out the projected 2024/25 financial position and the performance position for the period covering 1 April 2024 to 30 June 2024. The report also includes the outturns for 2023/24.

Members considered a report setting out the projected 2024/25 financial position, the performance position for the period covering 1 April 2024 to 30 June 2024, and outturn information for 2023/24.

Officers provided an overview and responded to questions from the committee. It was noted that:

·        The overall forecast overspend for 2024/25 of £3.4m was a significant improvement on the £11.4m forecast overspend at this stage last year, but there was a continuing need to deliver savings to safeguard the Council’s financial position. No Public Health finance information was included in the report as there were no significant variations for the first quarter.

·        Any further pressures on the budget that might be incurred due to requests received from care providers for higher rates of inflation than currently agreed had to be balanced against the risk of provider failure, as the Council had a statutory responsibility to ensure people’s needs continued to be met regardless of eligibility. The evidence base would be closely examined in considering any such requests.

·        With reference to the table at paragraph 13 of the report, the largest projected overspends were for Direct Payments and Supported Living. The position of the former had improved from the outturn as there was more ability to recover unused funds, and pressures on the latter were partly due to the full-year effect of a mid-year inflationary uplift for providers during 2023/24; ‘Other’ referred to the Adult Social Care grant received by the Council.

·        Housing rent arrears had been broadly flat over the last year and work was being done through the housing team to ensure tenants were not getting into further debt. By the end of the last financial year arrears had increased by around £100,000; this was manageable given a total rent roll of around £30m. Officers would provide members with more detail on unpaid debts and uncollected charges in domiciliary care, and the approach taken to collecting these.

·        The hospital discharge team was funded through the Better Care Fund. Integration and joint commissioning with health partners offered opportunities to reduce duplication, make efficiencies and improve outcomes; the benefits of this would likely be felt in future years. The Corporate Director for Adult Social Care and Integration was leading a project for the Integrated Care Board (ICB) on multidisciplinary integrated discharge hubs.

·        Opportunities to work with the York and North Yorkshire Combined Authority were being explored, including around housing accessibility and workforce education and skills.

·        Of the £7m growth received by Adult Social Care in 2024/25, beyond the allocations detailed in paragraph 15 of the report the remaining £3.8m had been used to relieve pressures on home and day support and residential care budgets.

·        An overspend on Be Independent was due to financial problems inherited when the service was brought in-house which were still in the process of being addressed.

·        Concerns were raised over the impact of the expiry of the Council’s contract for the provision of day clubs for older people with Age UK. The challenge faced by elderly people who had used the clubs was acknowledged, and it was noted that when savings had to be found from social care budgets there were few good options but that statutory services had to be prioritised. Those who had eligible needs would be supported and others could be signposted to alternative community services, including through Local Area Coordinators, although it was noted that not all wards were currently covered by the latter. It was anticipated that from November places would be available at half-day clubs, in addition to services the Council funded in partnership with the ICB, while the Dementia Day Clubs commissioned from Age UK were continuing.

·        Given the extent of savings that were still required, it was noted that scrutiny could play a productive role in contributing to conversations around how this could be done while protecting services for the most vulnerable.

·        The housing stock condition survey was nearly complete, and while emergency repairs had been carried out, it was anticipated that the percentage of dwellings failing to meet the decent homes standard was likely to rise due to historic problems not addressed in previous years. The survey results would be made available for consideration by the committee, and an action plan with resource implications would follow, with a goal of bringing the percentage down to as close to zero as possible.

·        National and regional benchmarking data had been included where available in the indicators scorecard in the annex to the report.

Resolved:

             i.                To note the finance and performance information.

            ii.                To note that work will continue on identifying savings needed to fully mitigate the forecast overspend.

Reason:     To ensure expenditure is kept within the approved budget.