Agenda item

(To receive a report by David Forbes (County Finance Officer) which provides the second budget monitoring report for the financial year 2017/18.  The report will be presented to the Executive on 6 February 2018 along with the comments of the Overview and Scrutiny Management Board.  The report compares the projected expenditure with the approved budget and provides explanations for any significant over or underspending)

Consideration was given to a report by the Executive Director of Finance and Public Protection which provided the second monitoring report for the financial year 2017/18, comparing the projected expenditure with the approved budget, including explanations for any significant over or underspend.  The report would be presented to the Executive on 6 February 2018 along with the comments of the Overview and Scrutiny Management Board.

David Forbes (County Finance Officer) presented the report and referred members to Table A on page 17 of the agenda pack which provided detail of the Commissioning Strategies delivered by the Council.  The Board was asked to note the following areas in particular:-

·       It was proposed to use the draw down from the Public Health Grant reserve to release £1.5m which would be redirected, via the Readiness for Schools commissioning strategy, to cover the reported overspend in Readiness for Adult Life on Supported Accommodation;

·       Page 22 of the agenda pack referred to Protecting and Sustaining the Environment and a potential underspend of £0.998m based on the latest waste tonnages, seasonality quantities and associate pricing as at the November contract update.  There were savings on reduced costs from mixed dry recycling and a reduced tonnage for composting and other areas of recycling which reflected the volatility of the waste industry;

·       Page 24 of the agenda pack referred to the National Living Wage at paragraph 1.48 (Other Budgets).  It was reported that the corporate provision for the National Living Wage was currently forecasting an £8.740m underspend which was primarily due to national living wage growth in Adult Care being funded by the new Better Care Fund (BCF) monies in 2017/18.  It was anticipated this would continue to be funded by the BCF for the next two years;

·       A dividend of £0.563m was received from Eastern Shires Purchasing Organisation (ESPO).  As a member of the ESPO joint committee, Lincolnshire County Council was entitled to receive a share of the dividend generated by the organisation; and

·       Overall, it was reported that the Council budget, in terms of Table A, was currently showing a projected underspend of £16.8m with an expected underspend of £20m-£21m by the year end.

Page 27 of the agenda pack referred to the Capital Programme at Table B.  It was reported that the Council had set aside £7.5m in a New Development Capital Contingency Fund for 2017/18 for capital schemes which may emerge during the financial year.  There had also been an underspend for 2016/17 of £7.718m which had been carried forward for schemes in 2017/18.

Members were invited to ask questions, during which the following points were noted:-

·       In answer to a question about the age group for the provision of accommodation for homeless young people, it was explained that this was provided for 16 to 17 years olds and care leavers up to the age of 25 years old.  This issue was being looked at currently as the change in legislation had resulted in increasing numbers which provided a significant issue in the county.  A pilot was underway to provide in-house services to assist with reintegration back into family life rather than outsourcing to other agencies.  Despite the significant pressure in this area, plans were in place to improve the situation;

·       In order to address the demand, intervention strategies were being put in place to ensure that short notice procurement of services was avoided.  Pilots were underway to convert former fire houses in Grantham into two bedroom accommodation with intervention support.  It was hoped that this would provide step down provision for young adults to move back into family life or give the authority time to provide suitable alternative arrangements.  It was intended that this service would also link with youth offending services; and

·       An integral part of the universal offer was to provide intervention support.  Statistically, CIPFA benchmarking against national trajectories was considered with a view to improve the picture, however the escalation costs were significant and the priority, therefore, remained on early intervention.

RESOLVED

1.    That the report be noted; and

2.    That the comments noted below be passed to the Executive for consideration prior to its meeting on 6 February 2018:-

o       The Board fully supported the recommendation to transfer £1.5m from the Readiness for Schools revenue budget to Readiness for Adult Life; and

o       The Board was mindful of the potential increase in costs associated with the Council's legal duty to provide supported accommodation for homeless 16-17 year olds and car leavers.  Board members supported the idea of controlling demand through more suitable, and cost effective, intervention arrangements.