Agenda item

To consider and comment on the proposals within the Council’s 2021/22 Draft Budget/5 year Medium Term Financial Strategy (MTFS) 2021/22 – 2025/26 that come within the Panel’s terms of reference.

Ann Graham, the Director of Children’s Services, reported that the financial position of her service had seen a recent improvement.   Whilst savings had been identified in the Medium Term Financial Strategy (MTFS), there were no proposed reductions in services or personnel.  There were two savings proposals.  A mother and baby residential centre would be established with an external provider.  However, Council social work staff would be based in the centre and undertake assessments.  The intention was to ensure that assessments that were consistently of a high quality were produced.  Weekend places at the centre would be sold through the private law sector. 

There were also growth proposals in the MTFS.  This included £1.5 million to respond to the increase in demand for residential places.  In addition, £300k had been provided to fund free school meals in the next two years.  This had been a manifesto commitment and would ensure that no child went to school hungry.  There would also be additional staff to complete Education, Health and Care plans and a Leader’s bursary of £120k to assist ten young people from low income families through higher education. 

Brian Smith, Head of Finance (People), reported that the budget gap for 2021-22 was now £1.9m and these had been included as unidentified savings.  Due to the pandemic, there were budget pressures of £17m across the Council and a vigorous recovery and renewal process had been put in place to address this.   This had looked at what services should be expanded, end or be re-started as well as what was still deliverable.  Consideration was being given to which of the savings that had been agreed last year and subject to slippage could be delivered next year.  The further savings proposals were intended to improve services as well as reducing expenditure.  In addition, there were also growth proposals to relieve existing pressures and some new initiatives, as well as significant capital investment. 

The Panel queried the amount quoted in the budget papers for investment in the Wood Green Youth Hub, which was quoted as £1m and £790k.  It was noted that overall investment was £1m.  Some of the spend would be in the current  financial year with the majority of spend in 2021/22. 

In answer to a question, Ms Graham reported that the overspend had been accrued due to spending on Covid and budgetary pressures related to cost and demand.  In particular, there were now more children in residential care than four years ago and costs had gone up significantly.  The service was working hard to ensure that value for money was achieved.   Beverly Hendricks, Assistant Director for Safeguarding and Social Care, reported that 39 assessments had been undertaken since April and none of them had been subject to challenge.   They were being undertaken in a professional way that allowed little scope for challenge.  In terms of budgeting, it only took a small number of additional young people requiring support to add significant additional pressures.

In answer to a question, Ms Graham reported that savings from last year that had not been achieved would be rolled forward to next year.  It was not yet know how much this would be as the year had not yet ended.  Savings continued to be made. Only £600k had been achieved by the time of the first lockdown but this had now gone up to £1m.  The pandemic had prevented some savings being made and work had needed to be put on hold.  Work to achieve the savings would continue, subject to there being no further lockdowns.   One proposal had involved the extension of the homes of foster parents.  This had not happened as quickly as had been hoped but it was hoped that progress would be made shortly.