To comment on the Cabinet report.

The Panel considered the latest Cabinet financial update report.

The Panel were informed that the council was in a positive financial position.  The Adult, Children’s and Health directorate projected an underspend of £25,000 on a budget of over £57m. The Corporate and Community Services directorate projected an underspend of £64,000. The Operations and Customer Services projected an underspend of £337,000. As a consequence, this left the overall reserves at several hundred thousand pounds above the target budgeted to achieve by 31 March 2017.

With regards to Children’s Services the Panel were informed that the following three areas were reporting and overspend, commissioning (+7.4%), health, early help and safeguarding (5.4%) and dedicated schools grant spend (+1.1%).  This was offset by underspends in schools and education services (-2.2%) and dedicated schools grant income (-1.1%).

The Panel were informed that main non DSG budget issues were:

·         Home to school transport +£318k

·         Agency staff in MASH +474k

·         Residential Placements +261k

·         Legal support from Joint Team +£276k

·         CYPD childcare placements - £374k

·         Leaving Care costs - £185k

With regards to DSG budget issues the Panel were informed that the issues were:

·         Passenger assistance – high needs +£300k

·         PVI entitlement - January headcount - £207k

·         independent special school placements  +£700k

Cllr Jones asked that if we were looking at trends for the pressures would they be increasing or decreasing.  The Panel were informed that when looking at high needs there had been an increased pressure over the past year and initial measures to address this had been agreed by the Schools Forum who would also be looking at further measures.  There had also been a pressure relating to passenger assistance and this was being reviewed.  There had been a pressure relating to agency staff within the MASH and this was successfully being addressed.

Cllr Jones mentioned that she was please t hear that the agency staff pressure was being addressed and asked if it was possible to have a trend analysis for this in next months report.

The Panel were informed that there was a national issue regarding some agency staff who set themselves up as companies and paid themselves low wages to avoid taxation whilst charging a higher amount that went to the company.  The government had recognised this and Councils could take tax a source and thus it became better for agency staff to become permanent staff.

Cllr  E Wilson asked that with regards to CD95 Safe Routes – Holyport College, where did the money came from.  The Pane were informed that it was from S106 contributions but this would be checked.

With regards to Lowbrook School Cllr E Wilson  asked how much had been spent on the school to date to provide the extra 30 places and what was the balance.  The Panel was informed that when the expansion agreement was in place last year £1.3 million had been set aside.  About £75k had been spent for the internal expansion works and we were awaiting for the remaining costs of the external extension but this was expected to be about £300k.  Officers would confirm if the remaining balance would be return to the capital budget or if there had been no additional borrowing and thus nothing to return.

Resolved unanimously:  that the Children’s Services O&S Panel considered the Cabinet report and fully endorsed the recommendations relating to their remit.