Agenda and draft minutes

To consider the minutes of the previous meeting of the Overview and Scrutiny Management Board held on 11 December 2024 and 14 January 2025 and to approve them as a true and correct record of the proceedings and to be signed by the Chair.

Resolved: - That the Minutes of the meetings of the Overview and Scrutiny Management Board held on 11 December 2024 and 14 January 2025 be approved as a true record.

To receive declarations of interest from Members in respect of items listed on the agenda.

There were no declarations of interest to report.

To receive questions relating to items of business on the agenda from members of the public or press who are present at the meeting.

There were no questions from members of the public or the press.

To consider whether the press and public should be excluded from the meeting during consideration of any part of the agenda.

The Chair advised there were no items on the agenda requiring the exclusion of the press or public.

To consider the enclosed Medium-Term Financial Strategy update which had been due for consideration by OSMB on 14 January 2025.

Consideration was given to the introduction by the Cabinet Member for Finance and Clean and Safe Communities and supported by the Assistant Director of Corporate Finance which set the local context by way of a presentation for the Medium-Term Financial Strategy Update.

The presentation drew attention to: -

Main Pressures

·            Placement pressures within Children and Young People’s Services and Adult Social Care.

·            Home to School Transport pressures within Regeneration and Environment and Children and Young People’s Services.

·            Pressures on income generation within Regeneration and Environment, relating to the longer-term recovery from Covid-19 and the cost-of-living crisis.

·            Inflationary costs impacting the cost of food in Schools Catering and contractual and provider inflation impacting Children and Young People’s Services.

·            Increased costs of homelessness due to increased demand.

·            Increased property costs

·            Impact of the Local Government Pay Award.

How the Council was funded.

Where the money was spent.

Net Revenue Budget Comparison.

Budget 2024/25 and Medium-Term Financial Strategy and in order to set a balanced Budget for 2024/25 the Council approved: -

·            Further increases in fees and charges to 6% (up from MTFS plan of 2%)

·            Council Tax increased by 3.5% out of a possible 5% (0.5% above what had been assumed in MTFS)

·            £4.6m use of reserves across 2024/25 and 2025/26 (£9m less than planned at 2023/24 Budget)

·            No new savings for 2024/25

·            New revenue investments of £1.8m

·            Funding gap of £6.6m in 2025/26, not a concern at that point given uncertainty and time.

2024/25 Current Financial Challenges.

·            Placement pressures within Children and Young People’s Services (£4.8m) and Adults Social Care (£6.6m).

·            Home to School Transport pressures within Regeneration and Environment (£2.5m) and Children and Young People’s Services (£1.1m).

·            Inflation has rebased our costs, over 20% increase in base costs over last 2 years.

·            Increased costs of homelessness due to increased demand.

·            Pressure in waste management on staffing, vehicle costs, disposal costs and related income.

·            Impact of the Local Government Association (LGA) Pay Award.

November Monitoring Position 2024/25

December Medium Term Financial Strategy Update (Technical Update to Cabinet)

•             Picking up on what we know, rather than trying to pre-empt Governments plans.

•             Deal with inflation, energy, pay award position.

•             Refresh future pay assumptions

•             Refresh Council Tax / Business Rate assumptions

•             Refresh Fees and Charges assumptions

•             Expected Budget Gap of £5m-£10m per annum (pending Autumn Policy Statement clarity)

Autumn Statement and Provisonal Settlement Impacts

•             September’s CPI was confirmed at 1.7%, £350k resources reduction

•             Autumn Statement & Provisional Settlement really positive

•             £1.3bn extra – inc £0.68bn for Social Care (£3.8m for RMBC)

•             Bulk of £0.7bn is new recovery grant, to be provided on deprivation basis (£8.7m for RMBC – Services Grant cut £0.4m)

•             £1bn more for SEND – expected to flow into Dedicated Schools Grant to support High Needs Block.

•             Extended Producer Responsibility (EPR) grant- £6.1m

•             £233m for Homelessness grant continues £86m for further Disabled Facilities Grants

•             Household Support Fund to continue for a further year

•             New Homes Bonus announced for  ...  view the full minutes text for item 86.

To consider the enclosed presentation detailing an overview of the Home to School Service which was due for consideration by OSMB on 14 January 2025.

Consideration was given to a presentation by the Assistant Director for Community Safety and Street Scene and supported by the Cabinet Member for Children and Young People’s Services and the Assistant Director of Education which detailed an overview of the Home to School Transport Service.

The presentation drew attention to: -

·            Statutory Duties

v   Policy guidance.

v   ‘Home to School Travel and Transport Guidance’ 2014 updated June 2023 (DfE).

v   ‘Statutory guidance for local authorities for Post-16 travel support to education and training’, revised January 2019 (DfE).

v   SEND Code of Practice.

·            Home to School Service Overview

v   Home to school sits as part of Regeneration and Environment with Education and Health Care Planning (EHCP) and processes in Children and Young Peoples Services.

v   Mix of EHCP and Statutory Travellers in the cohort.

v   Direct travel solutions and commissioned solutions.

v   Independent Travel Training (ITT) Offer.

v   Services are also provided to Adults.

v   Mixture of solutions including ITT, Personal Travel Budgets, Zoom Zero Bus Pass, Shared Transport and Single Occupancy.

·            Cohort Overview

1805 Children and Young People receive home to school transport.

1241 are children with an EHCP.

v   Children attending their nearest suitable school which is more than the statutory walking distance. (NAS).

v   Unable to walk because of SEND (EHCP).

v   From low-income households.

v   Children in Care who don’t have an EHCP (LAC).

v   Children/ Young People outside of compulsory school age including under 5’s and 16+ (DISC).

·            Budget Overview

·            Demand Overview

·            Actions to date

Since 2018/19, a series of actions have been taken which include:

v   Separation of the Transport function under a new Head of Service role to provide greater focus

v   Development of data and understanding of the transport cohort

v   Driving cost efficiencies through improved logistics planning

v   Reviewing single occupancy journeys

v   Introducing an Independent Travel Training offer

v   Benchmarking with other local authorities

v   Strengthening of the application process

v   Reducing the conversion rate of young people with an EHCP who require transport

v   Review and implementation of Policy.

·            Impact

v   Benchmarking shows Rotherham largely performs well with a need to focus on post 16

v   13 Candidates successfully travel trained providing vital skills and reducing cost, programme growing

v   Whilst demand increases the proportion of single occupancy routes decreases

v   Reduction in the growth of 16-19 costs

v   Significant cost avoidance.

·            Future Plans

v   Continuing to manage demand and delivery as efficiently and effectively as possible

v   Review of Post 16-19 and Post 19-25 transport offer

v   IT solutions improvements (incorporating route optimisation software)

v   Ensuring delivery is appropriately supported to drive efficiencies

v   Review of transport operator procurement arrangements.

A discussion and a question-and-answer session ensued, and the following issues were raised and clarified: -

·       Independent travel training would not be appropriate for all of the children receiving home to school transport. This would consider factors such as age, ability, and willingness. Some children with education health and care plan (EHCP) may not be suitable due to their  ...  view the full minutes text for item 87.

Report from the Strategic Director of Finance and Customer Services.

Recommendations:

That Cabinet recommend to Council:

1.    Approval of the Budget and Financial Strategy for 2025/26 as set out in the report and appendices, including a basic Council Tax increase of 1% and an Adult Social Care precept of 2%.

2.    Approval of the extension to the Local Council Tax Support Top Up scheme, that will provide up to £126.12 of additional support to low income households accessing the Council’s Council Tax Support scheme. It will support the most  financially vulnerable to rising household costs, through reduced Council Tax bills as described in Section 2.5.15.

3.    Approve the proposed changes to the Local Council Tax Support scheme as set out at 2.5.10 and proposed changes to Council Tax Premiums as set out in Section 2.5.19.

4.    Approval of the updated Medium Term Financial Strategy (MTFS) to 2027/28, as described within Section 2.6.

5.    Approval of the Reserves Strategy as set out in Section 2.8 noting that the final determination of Reserves will be approved as part of reporting the financial outturn for 2024/25.

6.    To note and accept the comments and advice of the Strategic Director of Finance and Customer Services (Section 151 Officer), provided in compliance with Section 25 of the Local Government Act 2003, as to the robustness of the estimates included in the Budget and the adequacy of reserves for which the Budget provides as set out in Section 2.14.

7.    To note the feedback from the public and partners following the public consultation on the Council’s budget for 2025/26 which took place from 18 November 2024 to 10 January 2025, attached as Appendix 5.

8.    Approval of the proposed increases in Adult Social Care provider contracts and for Personal Assistants as set out in Section 2.4.

9.    Approval of the proposed approach and increases in Childrens Social Care costs as set out in Section 2.4.25.

10. Approval of the revenue investment proposals set out in Section 2.7 and Appendix 2.

11. Approval of the proposed revenue savings set out in Section 2.7 and Appendix 4.

12. Approval of the Council Fees and Charges for 2025/26 attached as Appendix 7.

13. Application of the Business Rates Reliefs as set out in Section 2.10, in line with Government guidance.

14. Approval of the proposed Capital Strategy and Capital Programme as presented in Section 2.12 and Appendices 3A to 3F.

15. Approval of the Treasury Management matters for 2025/26 as set out in Appendix 9 of this report including the Prudential Indicators, the Minimum Revenue Provision Policy, the Treasury Management Strategy and the Investment Strategy.

16. Approval that any changes resulting from the Final Local Government Finance Settlement 2025/26 be reflected in the Budget and Council Tax Report to Council on 5th March.

17. Continuation of the principles and measures adopted since April 2020 to make faster payments to suppliers on receipt of goods, works and services following a fully reconciled invoice as described in Section 2.11.

18. Approval  ...  view the full agenda text for item 88.

Consideration was given to the report introduced by the Cabinet Member for Finance and Safe and Clean Communities which proposed the Council’s Budget and Council Tax for 2025/26, based on the Council’s Provisional Local Government Finance Settlement for 2025/26, budget consultation and the consideration of Directorate budget proposals.

A review of the financial planning assumptions within the Medium-Term Financial Strategy (MTFS) had been undertaken.

The proposed Budget and Medium-Term Financial Strategy reflected the Council’s priorities as set out in the Council Plan 2022-2025 and Year Ahead Delivery Plan. Thedevelopment of the Budget proposals for 2025/26 and the further update of the MTFStook into account prevailing economic factors, supplier market factors, demand and the complexity of care pressures and the lasting impact of periods of high inflation during2023/24.

Following the Council’s technical MTFS updates, proposed budget decisions

within this report and the impact of the Provisional Financial Settlement, the Council had been able to propose a balanced budget for 2025/26 and 2026/27 with a potential £3.2m funding gap in 2027/28.

The Autumn Statement and Policy update, along with the Provisional Financial Settlement, have given the Local Authority sector a much-needed boost in terms of the funding package available. The confirmation of £1.3bn additional grant for the sector was much needed, with £0.68bn towards Adult Social Care (£3.8m for RMBC) and £0.7bn to be provided through the new Recovery Grant allocated on a deprivation basis (meaning £8.7m of new un-ringfenced grant for RMBC). Whilst some smaller grants have been removed to support this £1.3bn national uplift, overall the funding package represented a substantial increase in Local Authority funding. This settlement represented the most significant increase in core funding in the last fifteen years and the Council would be around £14m better off in 2025/26 than was expected a

year ago.

Though the position for Local Authority Funding had shifted positively, the Council remained committed to increasing efficiency and delivering on the priorities of residents.  As such, in order to invest in key priorities, this Budget included Budget savings proposals of £2.6m aimed to increase the efficiency of service delivery and reduce or remove spending on services that were no longer required or can be delivered differently, for example, through maximising grant funding opportunities in Childrens’ Services or route optimisation within Waste Management.

In recognition of escalating cost pressures within Adult Social Care, relating to

increased complexity of care and rising demand for the service, market inflation and transitions, the Council would provide for approximately £17m of additional funding to support the delivery of Adult Social Care services. Further investment of £4.3m would also be provided to address unavoidable cost pressures in complying with Home to School Transport requirements and £1.5m for unavoidable Waste Management costs.

In addition, the Budget would provide some additional investments to help support people and to support with delivering on the Council’s ambitions for the Borough with specific regard to the Council Plan aims of:-

•         People are safe, healthy and  ...  view the full minutes text for item 88.

To review and identify items for pre-decision scrutiny from the Forward Plan of Key Decisions covering the period from 1 January 2025 to 31 March 2025.

The Board considered the Forward Plan of Key Decisions 1 January 2025 - 31 March 2025 with the Chair noting that this item provided members with the opportunity to suggested topics for scrutiny.  The Chair asked that members considered the Forward Plan upon publication and suggest topics that could be scrutinised by the Commissions or OSMB as part of it’s pre-decision work.

Resolved: - That the Forward Plan be noted.

To consider any issues referred for call-in from recent Cabinet meetings.

There were no call-in issues.

To determine any item which the Chair is of the opinion should be considered as a matter of urgency.

There were no urgent items.