Issue - meetings

To consider a report which provides an update on the current forecast outturn for the financial year 2025/26.

The committee adjourned for a short break during consideration of this item.

The committee considered the report which set out the Second Financial Review 2025/26 position based on income, expenditure and known commitments as at the end of August 2025.  It also identified actions that were being taken to address adverse variances within the Children and Families services.

A forecast overspend of £8.862m reflected a reduction of £0.136m on the FR1 overspend position of £8.998m.

The key pressures continued to be increased costs in placements and staffing, with the main overspends occurring in the following areas: provider services and fostering; children in need, protection and disabilities; cared for children; children’s services; education participation and pupil support; and education and 14-19 skills.

The committee asked questions and made comments in respect of:

• The savings target and reasons as to why this had not been achieved.
• The overspend of over £7m in Provider Services and Fostering.
• Delays in the Birth to Thrive project.
• Walking routes to school and these not being realised.
• The likelihood of achieving savings next year in respect of accommodation to support 18–25-year-olds.
• Staff recruited from overseas and new visa rules if a basic income is not achieved.  It was felt that this could pose risk for the local authority, as it had been reported that other public sector organisations, such as the prison service, were at risk of losing staff.
• The cost of placements and the likelihood of commissioning changes being able to help achieve this.
• The provision of care homes and whether the Council could operate more of these in the future to help reduce the costs of placements and residential places.
• The authorisation of additional expenditure, over agreed budgets.
• The need to spend money to prevent financial incentives from being lost.
• Savings proposals, policies and health and other outcomes associated with implementing walking routes to schools.
• The importance of the public recognising the Council’s statutory duties in providing social care support was highlighted; the Council could not turn people away once budgeted expenditure had been reached.
• The need for realistic budget setting within Children’s Services.
• The Corporate Parenting role and responsibilities and the need to remind other Elected Members of these.
• An update regarding the Westfields project was requested, together with clarification as to how current financial obligations were being met.
• Concerns around the Dedicated Schools Grant (DSG) were felt to be a national issue.
• The impending government White Paper and the potential associated financial implications.
• There was a statutory obligation to provide support and costs had increased.  Market forces determined pricing.

In response, officers reported that:

-       Regarding the safe walking routes programme, work had previously stalled but resumed in 2024/25, with two routes implemented and £80,000 in savings achieved.  A report to committee in April 2024 outlined the complexity of the programme.  The previously proposed savings target of £250,000 was unrealistic due to the long lead-in time required before transport could be withdrawn.  Four routes have progressed this year, with  ...  view the full minutes text for item 41