Issue - meetings

To consider a report by the Cabinet Member for Finance, Commercial and Assets.

Decision

(1)       That the Senior Leadership Team’s forecast for Dorset Council’s position at the end of quarter 1, be noted;

(2)       That the context around  the budget that was set for the year be noted;

(3)       That the impact that any overspend would have on reserves and the general fund be noted;

(4)       That the work going into reviewing Dorset Council’s reserves and balances be noted;

(5)       That the approach to work to develop sustainability of the base budget position for 2020/21 and beyond be noted and

(6)       That the work going on around capital strategy and the capital programme and financing be noted.

Reason for decision: To ensure support and/or challenge for actions being taken in 2019/20 to balance the budget and consider the adequacy and use of reserves and to support transition and convergence.  2019/20 is a critical year for establishing the base budget for Dorset Council to enable an accurate, medium-term financial plan to be delivered alongside a longer-term, sustainable financial strategy.

The Cabinet considered a report by the Cabinet Member for Finance, Commercial and Assets providing an update on Dorset Council’s financial performance, position and forecasts at the end of the first quarter of the 2019/20 financial year.  Initial analysis of the first three months of the year forecast a year end overspend of £7.1M on its directly controlled budgets and up to £5.5M on funding for schools and education.  The general reserves had increased following the closure of the accounts from the predecessor authorities and were now higher than when the budget was agreed in February 2019.

Introducing the report, the Deputy Leader reminded Members that the budget for 2019/20 had been produced and the accounts of the predecessor authorities closed by staff who were uncertain of their futures, demonstrating the professionalism of the Council’s workforce.  Whilst he acknowledged that the forecasted overspend was concerning, there was a need to understand the causes of the increases, the work currently underway to address this and the direction of travel.  Particular attention was drawn to the increases in the cost of providing services relating to Looked After Children, Special Educational Needs and Disabilities (SEND) and Education, Health and Care Plans (EHCPs), in addition to the Dedicated Schools Grant funding.  However, he expressed his confidence that planned in year savings of £5.5M from the convergence of six councils into one would be achieved in the current year but considered that the Council should use its reserves to help to fill the gap until it was possible to resolve some of the systemic issues which had caused the first quarter overspend.

The Cabinet Member for Children, Education and Early Help explained that the cost pressure lay within the Higher Needs Block of the Dedicated Schools Grant (DSG).  He drew attention to the increase in demand for EHCPs since 2013 when there were 1,237 to an expected 2,515 in the current year.  It was anticipated that this trend would continue and there could be a rise to 2,752 EHCPs by 2021.  This was due to an increase in the number of children with increasingly complex needs which the Council were obliged to meet.  This was a national issue and an indication had been received that the Secretary of State would meet with local authorities to discuss this matter.

The Cabinet Member for Adult Social Care and Health confirmed that the pressures on the budget similarly reflected the national position in relation to the complexity of needs and the rise in the cost of care and the Council was actively working with partners in the NHS and voluntary sector and private providers to address this.

The Member for the South East Purbeck Ward, Cllr Brooks, asked whether the Council had considered evidence that the reduction in funding for school support staff had resulted in an increase in demand for EHCPs.  She also asked if there was evidence that the number of young people with EHCPs would have an impact on the future workforce and aspirations.  The  ...  view the full minutes text for item 30