Agenda Item No. 4
The Vale of Glamorgan Council
Healthy Living and Social Care Scrutiny Committee: 9th October 2017
Report of the Director of Social Services
Revenue and Capital Monitoring for the period 1st April to 31st August 2017
Purpose of the Report
To bring to the attention of this Scrutiny Committee, the position in respect of revenue and capital expenditure for the period 1st April to 31st August 2017 regarding those revenue and capital budgets which form this Committee's remit.
It is recommended that:-
Scrutiny Committee consider the position with regard to the 2017/18 revenue and capital monitoring.
The progress made in delivering the Social Services Budget Programme is noted.
Reasons for the Recommendations
That members are aware of the position with regard to the 2017/18 revenue and capital monitoring relevant to this scrutiny committee.
That members are aware of the progress made to date on the Social Services Budget Programme.
Council on the 1st March 2017 (minute no 864 and 863 respectively) approved the Revenue and Capital Budgets for 2017/18. Reports monitoring expenditure are brought to this committee on a regular basis.
In setting the Social Services budget for 2017/18, the use of £650k from the Social Services Plan reserve was approved.
Relevant Issues and Options
Social Services Revenue
The forecast for Social Services at year end is a potential overspend of around £1m due to pressure on the Community Care budget.
A table and graph setting out the variance between profiled budget and actual expenditure to date and the projected position at year end are attached at Appendix 1.
Children and Young People Services - The major issue concerning this service is the pressure on the children's placements budget given the complexities of the children currently being supported. Work continues to ensure that children are placed in the most appropriate and cost effective placements. However, it should be noted that due to the potential high cost of each placement, the outturn position could fluctuate with a change in the number of looked after children and/or the complexity of need. This budget will be closely monitored during the year however a breakeven position is current projected.
Adult Services - The major issue concerning this service is the continuing pressure relating to the Community Care Packages budget and it is currently projected that there could be an overspend this year of around £1m. At this stage of the year, the outturn position is difficult to predict with any certainty. This budget is extremely volatile and is under pressure from significant demographic growth, an increase in the complexity of cases, as well as pressure from care providers to increase fees as a result of the National Living Wage. An increase of 1.5% above the 1% inflation provided in the budget will be paid to residential and nursing home providers. Additional funding has recently been announced by Welsh Government through the Social Care Workforce Grant which totalled £30m across Wales and has provided additional funding of £704k to the Council. This funding has been used to increase the fees paid to domiciliary care providers above the 1% provided within the budget. This additional money from Welsh Government was not sufficient to fund any growth either in number or size of care packages. It was entirely used to meet the increasing costs of domiciliary care provided by the private sector. The Community Care Packages budget will also need to achieve savings of £200k this year. The service continues to strive to manage growing demand. It has an excellent track record in this area however this is becoming increasingly difficult to contain. Further savings initiatives will be considered which may be funded via regional grants. Welsh Government has continued to provide Intermediate Care Fund (ICF) grant to Cardiff and Vale University Health Board to allow collaborative working between Health and Cardiff and the Vale Councils however the level of grant funding is not guaranteed on an ongoing basis.
It is proposed that up to £1 million is used this year from the Social Services Legislative Changes fund to cover the shortfall. Members will be provided with further details during the course of the year
Leisure Services Revenue
Leisure - There is currently an adverse variance to the profiled budget. The main reason is due to high costs for vehicles during the start of the Grounds Maintenance season. It is anticipated that this will reduce over the winter months and therefore it is currently projected that the overall budget will outturn on target.
2017/18 Savings Targets
Attached at Appendix 2 is a summary of savings to be monitored by this Committee during 2017/18. There is currently no specific savings target allocated to Leisure Services.
Each savings target has been given a RAG status. Green indicates that it is anticipated that the target will be achieved in full within the year, amber indicates that it is considered that the saving in the year will be within 20% of the target and red indicates that the saving to be achieved in year will be less than 80% of the target.
A saving of £320k had been approved for Social Services for the year however the way in which this was to be achieved had not been confirmed. The savings have now been allocated as follows and are shown in the attached appendix with an update of progress.
- Direct Payments (Care Packages) £100k
- Review Team (Care Packages) £100k
- Learning Disabilities Respite £80k
- Physical Disabilities Day Service £10k
- Meals on Wheels £30k
With regard to the Social Services savings targets which relate to the Care Package Budget reductions, while there is significant pressure on this budget and it is anticipated to overspend, schemes have been put in place to deliver savings in this area by transferring domiciliary care clients to direct payments and by establishing a review team and therefore the saving is projected to be achieved in full.
Appendix 3 provides further detail of the savings within the Social Services Budget Programme. The corporate programme board and project teams overseeing the plan will continue to monitor and ensure its delivery. As in previous years, ongoing progress updates will to be reported to Committee as part of the overall financial monitoring report for the Directorate.
Appendix 4 details financial progress on the Capital Programme as at 31st August 2017.
Residential Homes Internal Refurbishment - It has been requested that the £10k budget for this scheme is amalgamated with the £28k budget for the Residential Homes Refurbishment scheme to enable a more co-ordinated approach to the delivery of the works.
Parks and Grounds Maintenance Asset Renewal - S106 monies of £9k are available to contribute towards the cost of the installation of play equipment at Tre-Beferad and it has been requested that the budget for this scheme is increased accordingly. £50k had been allocated within this budget for the installation and upgrading of new play areas. Quotations for this work have been returned and are less than originally anticipated. This has allowed £4k to be vired from this budget to the Barry Regeneration Partnership, in order to fund a shortfall on the Fforest Community Park scheme due to additional ground works and £14k has been vired to the Romilly Mess Room scheme. The base of the structure was originally intended to be reused, however upon the removal of the existing building, the remaining base was found to be defective and not suitable to support the new structure. Remedial works to the garage base and replacement of the Mess room base will now be undertaken.
Resource Implications (Financial and Employment)
As detailed in the body of the report. Changes in future service provision may have an impact upon staffing levels and due consideration will be given to the Council's employment policies and procedures.
Sustainability and Climate Change Implications
There are no direct implications arising from this report.
Legal Implications (to Include Human Rights Implications)
There are no legal implications.
Crime and Disorder Implications
There are no crime and disorder implications.
Equal Opportunities Implications (to include Welsh Language issues)
There are no equal opportunity implications.
Effective monitoring assists in the provision of accurate and timely information to officers and members and, in particular, allows services to better manage their resources.
Policy Framework and Budget
The report is in accordance with the Policy Framework and Budget.
Consultation (including Ward Member Consultation)
The appropriate Chief Officer has been consulted. This report does not require Ward Member consultation.
Operational Manager - Accountancy
Director of Social Services
Lance Carver, Director of Social Services