Agenda item

To consider a report by the Corporate Director for Finance and Commercial (Section 151 Officer).

 

The Corporate Director for Finance and Commercial (Section 151 Officer) introduced the Budget and Medium-Term Financial Plan (MTFP). The proposed net revenue budget for 2026/27 was £482.6m. The underlying cost pressure was approximately £37m, the pressures in the proposed budget were addressed through a range of efficiencies, savings, grants and income. The proposed budget presented a balanced budget to the council.

 

The Committee discussed the report and asked questions of the Section 151 Officer, Cabinet Members, and relevant directors. Non-committee members were also given the opportunity to ask questions. Each of the appendices relevant to the committee’s remit were discussed in-turn, following an introduction from the senior officer responsible for the service.

 

 

Appendix 1d – Adults and Housing

 

The demand in adult social care was predicted to continue rising, although it was not expected to increase above the growth included in the budget. Pressures on the wider system could create pressure on the budget. Savings were to be achieved during the year.

 

The following points were raised during discussion on the Adults and Housing budget:

 

·         Whether the FutureCare savings target was realistic. The Executive Director for Adults and Housing was very confident for that these savings would be made.

·         A 3% vacancy factor was expected to be built into the budget. Recruitment for social workers was a challenge but vacancies for these posts were not deliberately held.

·         The unfunded staffing posts pressure in housing were being extended into this financial year as they were on a 2-year basis but were needed to continue investment and transformation in housing.

·         With regards to the council’s transport offer and making savings, the Executive Director advised the council was looking at more cost-efficient ways of funding this, such as using more direct payments.

 

 

Appendix 1e – Children’s Services

 

There was a 5.7% increase in the Children’s Services budget with £3.5m of pressures from pay increases and inflation. The largest pressure was the children in care placement budget. The budget included a £1.5m investment into fostering and kinship care, which was the least expensive option for children in care.

 

The following points were raised during the Children’s Services budget discussion:

 

·         There was a concern from the committee about the council’s High Needs Block deficit. The Section 151 Officer advised this was a national issue and the government planned to introduce a SEND white paper which would set out policy reform options. The council was managing SEND well and there may be additional funding in the final settlement.

·         A specific timeline was not attached to the introduction of AI. Additional capacity from remodelling the service, along with using AI to support staff, would mean the council does not need to rely on agency staff. The Transformation Management Office were reviewing the options for the implementation of AI.

 

 

Appendix 1f – Birth to Settled Adulthood

 

There had been significant growth in the budget for Birth to Settled Adulthood to reflect the service need. The service should help prevent growth in need and supporting children to stay with families. Some cost avoidance has been achieved through accommodation for young adults.

 

The following points were raised during the discussion:

 

·         The Dorset Parent Carer Council was praised for their involvement in developing the Birth to Settled Adulthood service.

·         There was concern about the increasing demand and overspend for the service and £1 million savings had not been achieved. The Corporate Director for Adult Care Operations advised that financial benefits from Birth to Settled Adulthood would take time and would develop as a person matures into adulthood. There was evidence that the approach was making a difference, and this was recognised by the Dorset Parent Carer Council.

·         Birth to Settled Adulthood has helped Adult Social Care to forecast their future demand. However, there were targets in the health system to reduce spending which could have impacts on social care budgets and performance in the future.

 

 

Appendix 1h – Public Health and Prevention

 

There were no questions or discussion following an introduction by the Director of Public Health and Prevention.

 

It was noted earlier in the meeting that there was a small uplift in the ringfenced Public Health grant and that some other funding streams had been consolidated into this grant. Some pressures had emerged following the transfer of some services from the Place directorate; however, the Director was confident that the service could remain within budget.

 

At the end of the discussion, the Chairman summed up and reenforced the need for clear contingencies within the budget, with pressures caused by increasing demand and unachieved savings.

 

The Committee made the following recommendation to Cabinet:

 

Recommendation: That Cabinet clarifies what contingency and resilience exists in the proposed 2026/27 budget should pressures exceed assumptions.