Agenda item

The Commission considered a report of the Director of Corporate Resources which provided an update on the 2024/25 revenue budget and capital programme monitoring position as at the end of Period 10 (the end of January 2025). A copy of the report, marked ‘Agenda Item 10’, is filed with these minutes.

The Chairman welcomed Mr. L. Breckon JP CC for this item.

Arising from discussion, the following points were raised:

(i)        With regards to forecasted slippage of £23m within the Capital Programme, a member asked whether cost analysis work had been undertaken in order to evaluate the impact of delays to particular long-term projects, such as the Zouch Bridge scheme. The Director of Corporate Resources assured members that although no specific work had been undertaken to evaluate the cost of delay, work had been undertaken to understand what had caused delays and to minimise the risk in the future. Delays had often been a result of additional procurement requirements and to accommodate for weather events. The Director stated that although costs had increased as a result of high levels of inflation, this needed to be balanced against the fact that unspent funds had accumulated interest.

(ii)       A question was raised in relation to a forecasted underspend of £16.5m within the Adults and Communities revenue budget. The Director of Corporate Resources stated the Department had established a wide-ranging demand management programme, and a review of care packages, which had started to have an impact on all commissioned services. Members were assured that although the Department had delivered an approach for controlled growth and improved commissioning, it continued to deliver the required level of support in order to meet demand and the needs of service users. The Chairman of the Adults and Communities Overview and Scrutiny Committee stated that the work undertaken had allowed a larger number of residents to be supported within their own homes and that this had led to benefits in terms of improvements to quality of life.

(iii)      Concern was raised in relation to overspend across Children and Family Services budgets. The Director of Corporate Resources stated that overspend in the High Needs Block was as a result of increased demand and a higher than budgeted number of High Needs students in both independent schools and mainstream schools. There had also been a change in demand in relation to children in residential provision, in comparison to budgeted assumptions. The Department continued to experience financial pressures as a result of increasing costs and rising demand for residential social care and placements for supporting children with complex needs. In addition to this, Unaccompanied Asylum-Seeking Children (UASC) continued to present a significant growth pressure in terms of demand and costs. Members noted that the Council was responsible for providing care to UASC up to the age of 18, at which point UASC received care-leaver status and required Council support to the age of 25. The Council received limited funding from Government for supporting care-leavers. Members were assured that government guidance was being applied whilst supporting UASC. The Department was part of a regional partnership working in consultation with the Government regarding the challenges and funding pressures relating to UASC.

(iv)      In response to a question regarding whether the Children and Family Services Department had experienced an increase in demand as a result of the removal of VAT exemption for education services provided by private schools, the Director of Corporate Resources said that there had been no impact to date. However, a phased impact was expected. The Council had undertaken work in order to evaluate the level of demand which could arise as a result of the Government’s policy change.

(v)       In relation to the Quorn Solar Project, members noted that a preferred bidder had been identified and that negotiations were taking place with a view for an outright sale of the site.

RESOLVED:

That the update on the 2024/25 revenue budget and capital programme monitoring position as at the end of Period 10 (the end of January 2025), be noted.