Agenda item

A report from the Director of Finance is attached. (Key decision – reference number 4765)

(Report No.105)

(7.20 –  7.30pm)

Councillor Mary Maguire (Cabinet Member for Finance and Procurement) introduced the report of the Director of Finance (No.105) setting out the Council’s revenue budget monitoring position based on information to the end of September 2018.

NOTED

1.            The current projected outturn position of £8.9m overspend for 2018/19, as set out in paragraph 1.2 of the report.

2.            The Council’s financial position with regard to achieved and projected savings as detailed in paragraph 1.3 of the report.

3.            The continuing financial pressures outlined in the report, including rising cost pressures from Temporary Accommodation, SEN Transport, families with no recourse to public funds, and cost and demographic pressures in social care (section 3 of the report referred).

4.            The detailed departmental monitoring information, budget pressures and mitigating actions as set out in the report and its appendices.

5.            The additional Department of Health funding of £1.299m for adult social care services winter funding, as detailed in section 5.2 of the report.

6.            The financial developments set out in section 3.5 of the report including in relation to the London Business Rates Pool and the Strategic Investment Pool.

7.            The management action being taken to reduce costs including: additional scrutiny on any agency arrangements; review of all outsourcing arrangements; implementation of the review of management structures previously agreed as part of the Enfield 2017 workstreams and where appropriate vacant posts were being held in advance of future restructures. A Pressures Challenge Board had been established, (section 4 of the report referred). The projected savings for the Council needed to be realistic and achievable.

8.            That Report No.109 – Children’s Social Care Demand and Pressures and Report Nos. 112 and 113 – Variation to the Co-Managed Procurement and Commissioning Hub Contract (Minutes Nos. 8, 10 and 17 below referred), included implications for the revenue budget, the impact of which had been included within this report.

9.            The developments taking place with regard to Children’s Social Care as set out in section 5.2 of the report and the reasons for this. This was a priority for the Council. The £0.6m for 2018/19 was proposed to be funded from reserves and therefore did not form part of any forecasted variance. The £1.0m for 2019/20 and beyond would need to be considered in the budget setting process for 2019/20. Members were reassured that the Council’s finances could absorb these proposals.

10.         In response to questions of clarification raised, the continued work being undertaken concerning families with “no recourse to public funds” was outlined, as set out in Appendix C of the report; including the work of a fraud officer and an immigration officer.

11.         The work being carried out by several charities, including Project 17, specialising in immigration advice and support; and, the opportunities to be explored in linking up with appropriate Council services including social services and housing assessments. Members noted the communities that were in general most affected. The development of the Council’s housing strategy would take such matters into consideration.

12.         The public health implications for certain communities who were not registered with local GPs and the impact on schools as well. Councillor Brett outlined the work being undertaken in this area.

13.         That the saving identified with regard to the Youth Offending Unit (Appendix C of the report referred) was due to a vacancy not a reduction in staffing levels. The difficulties faced in recruiting such specialised staff was explained together with the actions being taken.

Alternative Options Considered: Not applicable to this report.

DECISION: The Cabinet agreed to note:

1.            The financial backdrop to the Council’s budget position (described in paragraphs 3.1 to 3.9 of the report).

2.            The £8.9m overspend revenue outturn projection and use of £4.2m of capital receipts to support organisation transformation.

3.            That Cabinet Members would continue to work with Executive Directors to implement action plans to reduce the forecast overspend in 2018/19 and implement savings.

Reason: To ensure that Members were aware of the projected budgetary position, including all major budget pressures and underspends which had contributed to the present monthly position and that were likely to affect the final outturn.

(Key decision – reference number 4765)