Cabinet considered the latest financial update.

The Lead Member for Finance and Ascot informed Cabinet that there was a favourable variance of £101K at the end of month 8, an increase of £55K on month 6 which lead to a general fund balance to £7,160K.  He mentioned the following highlights from individual directorates and the overall financial position.

Children’s Services reported a total adverse variance of £769K, he focused on placements which covered all elements of placements, including fostering. There was an adverse variance of nearly £1.3M on the budget of £10.1 Million, which needed to be addressed but which had been partly offset by demography funding and additional continuing health contributions.

Children’s Services had seen an increase in demand for placements and cost increases that had proven impossible to resist. A single high-end placement can cost £500K per year. However painful it is to manage these costs had to be managed against the very positive outcomes and improved life chances placements, in appropriate settings, deliver for young people in our care. This was evidenced by case studies he had received.

The National Transfer Scheme had become mandatory and Local Authorities were now obligated to accept unaccompanied asylum seekers up to 0.07% of their general child population. An additional £80K had been added to this year’s budget but this could have a much greater impact next year.

There was a deficit of £3 million in the High Needs Block of The Dedicated Schools Grant which, working with schools, was managed by the Council. The deficit in this budget, which covers Special Education Needs and Disability, continues to grow and, working with schools, we are required to present a plan to the Department for Education showing recovery in three to five years. These costs are part of the school’s budget but Cabinet need to be aware that there was a risk that we may be invited to contribute.

Adult Social Care was forecasting an overspend of £678K against a current budget of £35M. This was an increase on the previous forecast of £97K and was a result of £162K costs for Senior Interims in Social Care and a £100K provision for bad debt which had been offset by some positive variances.

At the recent O&S Panel he was surprised by a request for finance to publish the number of people requiring Adults Social Care and the cost of that care. Cabinet were aware that we published that information in Month 6 broken down by Older People, Physical Disability, learning disability and Mental Health and publish it again in Table 19 on page 85 in this month’s report.

The table shows that the budget was set on the basis of 1006 people across all services requiring support but at month 8, this has risen to 1147, an increase of 14%. With the exception of Learning Disability, costs for all services have increased. So, it is quite remarkable and a noteworthy achievement that the overspend is contained at just less than 2%.

The pressure on Homelessness continued to grow with higher-than-expected demand over the last two quarters.  This would add nearly £500K to the temporary accommodation spend which should be covered this year by the recent Homelessness Prevention Grant.

In the Place Directorate Savings of £1,731,000 were built into the 2021/22 budget.  These savings were on track and any shortfall would be mitigated from savings elsewhere in the service.

Car park and parking permits were forecasted to be higher by £100K which suggested that the economic activity in towns was quietly picking up.  In Leisure Centres, Covid had reduced capacity and dampened demand, as a consequence an estimated additional £364K would be required to support the concession contract.

The revenue generating potential of the Leisure offer was second only to parking. Our Leisure Centres were amongst the best in terms of facilities and the cost of entry and the Lead Member was confident that they would begin to meet their potential and generate a growing income stream post covid.

The Lead Member explained how he was able to predict a small in year surplus when we reported £2.2m of savings being built into budgets and monitored separately, may not be achieved. The shortfall had been absorbed in services budgets or legitimately supported by the Contain Outbreak Management Fund.

With regards to borrowing there was a forecast of £229M at the year end, but with some capital slippage, it would now be £213M. In order to capture favourable interest rates, they had taken the opportunity to move some debt from short to long term.

In Capital a slippage of £26M from this year into 2022/23 was forecasted. The Boulter Lock car park extension had stalled because of increased costs so Cabinet was asked to approve the virement of £164K to the Windsor Coach Park lift and footbridge which require essential safety repairs.

The Lead Member for Corporate & Resident Services, Culture & Heritage and Windsor informed Cabinet that she was delighted to see funds being moved to the Windsor couch park.   The virement of this budget to support the proposed refurbishment of Windsor’s coach park lift and footbridge that requires an essential repair and refurbishment was welcomed and important for those vising Winsor especially those with disabilities. 

The Lead Member for Climate Change, Sustainability, Parks and Countryside said that with regards to the Boulters Lock car park extension although this project had been stalled it was not over and when looking at alternative proposals these could also include community facilities such as a shared allotment space.

The Lead Member informed Cabinet that although the Boulters Lock car park extension project had been put on hold it remained in the capital programme and alternative project specifications and funding would be looked into.

Cllr Baldwin mentioned that with regards to the improvements to the Windsor car park his colleagues had been asking for this so he was in support.  He also asked what plans were in place for the Boulters Lock car park as the report mentioned this would be early 2022 which we were now in.  He was informed that they were looking at an alternative specification for the car park as recent tenders had not come within budget, they may also be plans for alternative us of some of the space as mentioned.

The Lead Member for Adult Social Care, Children’s Services, Health and Mental Health said that with regards to high cost placements that three placements in quarter 4 of 2020/21, quarter 1 and 2 of 2021/22 totalling a net £822,000.  This was a national problem with increased costs but it was important that the placements were made with the best interests of the young people.  The budget build had increased funds in children’s services to help alleviate the pressure along with actions such as early intervention.

With regards to the reported pressures in the Housing service the Lead Member for  Housing, Sport & Leisure, and Community Engagement said that there had been an increase in demand for services regarding homelessness but this had been covered by grants.  The Pandemic had increased pressures with eth housing team but addition resources had been added to help support those at need to help them stay in their homes, deal with debt and that there was more affordable housing including social rent.  

Resolved unanimously:  that Cabinet: notes the report including:

      I.         The Council’s projected revenue and capital position for 2021/22.

     II.         Approves a capital budget virement of £164,000 from Boulters Lock

Car Park extension to Windsor Coach Park.