To note the contents of the report and appendices.

The Finance Partner gave Members an overview of the Council’s likely Budget position at the end of the financial year. The Finance Partner informed Members that a total underspend of £528,000 had been forecast, which accounted for around 0.6 per cent of the Council’s overall budget for 2016/17. The Finance Partner explained that the underspend would be added to the Council’s reserves.

The Finance Partner informed Members that overall the Adult, Children and Health Commissioning budget had been overspent by around £694,000; however much of the overspend related to the Housing area of the budget. The Health and Adult Social Care sector was likely to record an underspend of around £1.25million.

The Finance Partner said there had been an underspend of around £919,000 for services relating to older people but an overspend of £59,000 for services relating to people with learning difficulties. The Finance Partner explained that the budget for services relating to learning difficulties was the most difficult to forecast due to its volatility, and a significant portion of the budget being used on a couple of high-spend cases. Underspends in the mental health services budget and other services – which included the Emergency Data Team – were forecast.

The Finance Partner explained that the budget for services for older people had been increased significantly from 2015/16 following an overspend in that financial year. However in 2016/17 the rate of increase in spend had not continued as forecast and there had been underspends in four of the five key budget heads relating to services for older people. The Finance Partner explained there had been an overspend relating to Ordinary Residence Adjudication, due mainly to a court case adjudicating against the Council when it had been expected the courts would find in the Council’s favour.

Cllr Lenton asked for more details on the case and asked if it could set a precedent. The Deputy Director of Health and Adult Social Care explained it related to the residential costs of a young person living outside of the Royal Borough whilst pursuing education inside it, and there had been an expectation that the other Authority would pay for the residential costs. However the court had ruled against the Royal Borough. The Deputy Director of Health and Adult Social Care stated that the case was expected to be a one-off.

Cllr Airey asked if there was any explanation for why so many budget heads were underspending. The Deputy Director of Health and Adult Social Care said there was now a greater emphasis on residents being independent, and for them to receive intensive treatment at the beginning of their programmes in order for them to not reach crisis point. She added that it was sometimes difficult to forecast trends. She said there were early indications that the new methods were successful, more greater analysis was needed.

The Finance Partner said that the amount spent by demand-led budgets naturally fluctuates, and it would be expected for there to be an underspend in some budget heads. The Children’s section of the Adult, Children and Health Commissioning budget was thought to be particularly volatile, while this year there had been a couple of high-spend cases in the older people’s sector relating to mental health.

The Chairman noted that the report stated there was a £100,000 pressure point relating to legal advice provided in child care issues and agency staff in the PODs, and asked if it was predicted that this trend would continue. The Managing Director and Strategic Director of Adult, Children and Health Services stated there had been a significant reduction in the use of agency staff and new senior and middle management roles had been appointed, and that it was hoped that the pressure point would be reduced as a result.

RESOLVED UNANIMOUSLY: That the contents of the report be noted.