Agenda item

Councillor Ward, Executive Member for Finance, Planning and Performance, and Rachel Harrison, Deputy Director of Finance, introduced the report.

It was highlighted that there was an overspend of £12m in the general fund. A major factor was the availability of care beds and this was being monitored and challenged internally. The challenging financial position of local schools was also highlighted, with several expected to be in deficit in the next financial year. The Committee also noted slippage in the capital programme. The importance of robust financial management was emphasised, particularly following Birmingham City Council issuing a Section 114 notice.

The following main points were noted in the discussion:

·        Members asked why the council employed so many agency staff. In response, it was advised that several agency staff had been recruited to address the complaints backlog that had been subject to a review by the Local Government and Social Care Ombudsman. This was a short-term measure. The number of agency staff employed by the council was below the London average. It was accepted that there would always be a need to recruit agency staff to cover vacancies in front line services, but this should be kept to a minimum.

·        It was noted that further information on the unavailability of care beds was set out in the Exempt Appendix.

·        Following a question on the budget implications of having a relatively low recycling rate, it was commented that the council could take radical decisions to improve the recycling rate, for example switching to alternate weekly bin collections, but there would be wider consequences to this policy decision.

·        A member asked for further information on targeting capital spend on greening measures, for example implementing LED lighting. In response, it was advised that a full response would be sought from the Environment department.

·        A member asked about the overspend in Adult Social Care and what was being done to develop sustainable capacity in the service. In response, it was commented that Adult Social Care financing was a national issue, however a range of transformation measures were underway. There was a need for extra care beds  and this needed to be addressed through the planning system. There would be 60 care units accommodated on the new Holloway Prison development.

·        A member commented on the government’s watering down of net zero commitments and commented on the difficulty of local authorities delivering environmental improvements without financial support from central government. The Executive Member commented that retrofitting social housing with energy saving measures would help to save residents’ money on energy bills, provide higher quality homes, address persistent damp and mould issues, improve living standards, health and wellbeing, and boost the economy by providing new highly skilled jobs. However, it would be challenging to deliver the changes needed while the government did not prioritise these measures.

·        The Committee noted that £4.1m of the agreed £10.9m of savings were RAG rated wither Amber or Red. It was advised that an amber rating identified some level of risk, and it would be for senior decision-makers to ensure those savings were delivered.

RESOLVED:

That the Quarter 1 Budget Monitoring Report be noted.