Agenda item

Cabinet Portfolio:  - Corporate Services, Community Safety and Finance

Strategic Directorate: - Finance and Customer Services

Consideration was given to a report presented by the Strategic Director of Finance and Customer Services and the Head of Corporate Finance. The report set out the financial position as at the end of September 2021 based on actual costs and income for the first six months of 2021/22 and forecast for the remainder of the financial year. Financial performance is a key element within the assessment of the Council’s overall performance framework and is essential to achievement of the objectives within the Council’s Policy Agenda. To that end, this was the third financial monitoring report of a series of monitoring reports for the current financial year which was to be brought forward to Cabinet on a regular basis.

As at September 2021, the Council expected to deliver the overall outturn within budget for the financial year 2021/22. Whilst the Directorates had a forecast year-end overspend of £9.8m on the General Fund, this was mitigated by the government’s provision of COVID-19 emergency support grant and Sales, Fees and Charges Income Compensation. However, it was noted that the longer term impacts of Covid-19, public health measures and the pace at which services can return to normal remains unknown.

In discussion, Members requested further information in respect of the impact of using agency workers in Children and Young Peoples’ Services (CYPS). The response from officers noted the general guideline for appropriate use of agency workers in this service. Where there has been a reduction in staff numbers corresponding to a reduction in caseloads, to manage temporary rises in caseloads, agency workers may be called upon.

Members expressed curiosity around how the agency worker numbers for Rotherham MBC compare to similar or neighbouring authorities. The response from officers noted this as a question for the service, with the note that these numbers have been higher than they were two years ago. The Chair noted an upcoming item on the scrutiny work programme regarding use of agency workers.

Members expressed concern that this year’s underspend in Adult Care could result in higher expenditures next year. The response from officers noted the finance team supporting the Strategic Director of Adult Care, Housing, and Public Health (ACHPH) with regard to the packages and numbers relevant to the budget for this directorate who worked to ensure that problems are not masked with short term funding. Whilst this was a question for the directorate, it was noted that expense comes not primarily from care for the elderly population but from pressures associated with mental health care provision.

In respect of the unknowns around budget forecasting, Members requested a view from officers on when there might be greater clarity. The response from officers cited unknowns associated with the progressing pandemic, including possible future lockdown, which would alter the financial picture. It also was too early to know when or if clientele of places like Rother Valley Country Park would return to spending. Budgets would be responsive to changes of this kind. In terms of business rates, relief funds have meant that revenue has not been lost, but it was hoped that businesses would be able to sustain themselves moving forward.

Members requested clarification around the saving and use of reserves during times of hardship like the current period. The response from officers noted that the COVID grant reserves rolled over to this year because it was expected that the situation would be ongoing. Officers provided a summary of the Covid Outbreak Management Fund (COMF) relief grant and business support details.

Further information was requested around the challenges associated with projected savings and overspend in Children and Young People’s Services, as placement shortages were not a local but a national issue. The response from officers cited the history of spending in this service area and noted the more recent savings goals had been delayed by temporary factors that were unforeseeable. It was noted that some of the requested savings had been delivered by CYPS and by Regeneration and Environment (R&E). Some of the savings yet to be delivered may be delayed, but careful attention was given in making these savings to ensure there would not be unintended consequences.

Members requested assurances around the appropriateness of savings in areas like CYPS and ACHPH, considering that some services that would benefit all children are available only to vulnerable children. The response from officers noted that this is a wider question for the budget that only Council can change if there were to be a considered view that the savings are not needed. It was noted that there are a small number of choices based on the limitations inherent in budgeting, because it is important not to cause harm.

Resolved:-

1.    That Cabinet be advised that the recommendations be supported.