Agenda item

10:15

Contact Officer: Lorna Baxter, Assistant Head of Finance (Corporate Finance), 01865 323971

The attached report (CH5) sets out the Business Improvement & Efficiency Strategies for the Children, Young People and Families Directorate. The strategy contains the identified pressures and proposed savings over the medium term from 2010/11 to 2014/15. For reference, the current financial context and the report to the Strategy & Partnerships Scrutiny Committee are included. The scrutiny committee is invited to consider and comment on the strategies and the pressures and savings contained therein.

Comments from each scrutiny committee will be collated and fed back to the Cabinet by the Strategy and Partnerships Scrutiny Committee which meets on 14 January 2010.

Members of the Committee will have the opportunity to question the Cabinet Members for Schools Improvement and Children, Young People & Families, together with the Interim Director for Children, Young People & Families,

Heads of Service and other officers on the identified pressures and proposed savings. Officers from Financial Services will also be present at the meeting to answer any questions that the Committee may wish to ask.

A presentation will be given to the Committee on the identified pressures and proposed savings for 2010/11.

The Scrutiny Committee is invited to consider and comment on the Directorate Efficiency Strategies plus the identified pressures and proposals for savings contained therein.

The report at CH5 set out the Business Improvement & Efficiency Strategies for the Children, Young People and Families Directorate. The report contained the identified pressures and proposed savings over the medium term from 2010/11 to 2014/15. The scrutiny committee was invited to consider and comment on the strategies and the pressures and savings contained therein.

The Committee were advised that comments from each scrutiny committee would be collated and fed back to the Cabinet by the Strategy and Partnerships Scrutiny Committee, at its meeting on 14 January 2010.

The Cabinet Members for Schools Improvement and Children, Young People & Families, together with Jan Paine, Paula Tansley and Tan Leigh made themselves available to respond to questions from the Committee.  Also present were financial officers Lorna Baxter and John Hickson from Corporate Core and Shared Services respectively.

Councillor Bonner outlined the severity of the financial challenges facing the Authority over the coming years and whilst acknowledging that cuts would have to be made, stressed the importance of protecting frontline services wherever possible.  She reminded members that the remit of the Committee was to scrutinise the services provided to the young people of the County by the Authority and that where changes to the proposed savings were made, sensible alternatives must be given at the same time.

Lorna Baxter then gave a brief presentation on the identified pressures and proposed savings for 2010/11 (A copy of which is attached to the signed minutes).

Paula Tansley, Interim Head of ………. then gave a brief overview of the pressures facing the Children’s, Young People & Families Directorate.  She reported that, out of the Gross Budget of £511m,  £317m was dedicated School’s Grant, £92m was grants for specific purposes, £22m was area based grant and other ringfenced leaving only £98m base budget funding. Scope for efficiencies of £18 was consequently reduced.

In putting together the efficiency plan, officers looked at the three directorate priorities as set out in the Children and Young People’s Plan 2010-2013:

• Keeping all children and young people safe
• Raising achievement for all children and young people
• Narrowing the gap for our most disadvantaged and vulnerable groups

Further pressures were the increased numbers of asylum seekers and the provision of transport for children in care.  However, officers had tried to achieve efficiences without making cuts to frontline services and tried to avoid any efficiences in social care and safeguarding.  The Strategy for further service improvement and efficiency was focused around cutting bureaucracy and streamlining services; rationalisation and restructuring; reduction in subsidies and increased income generation and prioritisation of services – major rationalisation and reductions.  The proposals would include a reduction of 270 posts over 5 years through natural wastage.

Councillor Chapman and Waine reminded members of the restricted parameters the Cabinet were working within and that the efficiency savings before the Committee today were proposals and that the Cabinet Members present would be listening carefully to the Committee before any final decisions were made.   Councillor Chapman reiterated that there would be no efficiencies for Children in Social Care and thanked the Young People for the contribution regarding the Youth Service.

Following the presentation, Members asked a number of questions, a selection of which is included below, together with the response received:

Q.        Could we use Council reserves instead of making cuts? Do the Council receive payback for asylum seekers?

R.        General Balances are decided on a risk management basis.  Currently they stand at £11m – can’t see that reducing in the near future.

R.        The Government grant received for asylum seekers is backdated and does not cover costs by local government.

Q.        I find it very difficult to make decisions on the budget today when so much of it is presumed.  Also, I am not able to see or make recommendations on other budgets.

R.        (Cllr Mitchell) The estimate has been done as carefully as possible.  I am in no doubt that we are in for a very hard time over the next few years.  2/3rds of our expenditure is from central government.  It would not have been sensible to leave decisions until the outcome of the comprehensive spending review next year when we would only have a few weeks to make cuts.  The figures are not the worst case scenario which is why we hold Council reserves. 

R.        No one wants to cut their own services.  Strategy & Partnerships had looked across all the service areas to see if the percentages apportioned to each service were appropriate and would be meeting again to consider the advice from all the scrutiny committees and have a second opportunity to look across the board.

R.        (Cllr Chapman) Politically, Groups would also have an opportunity to present their own budgets to Council in February.

Q.        Was it true that there was a £2m Grant due from Government for Youth?

R.        (Cllr Chapman) I assume you are referring to the Capital Back on Track Funding we have received to enhance Youth Facilities.

Q.        Could Council Tax be increased to save cuts?

R.        (Cllr Mitchell) The Council Tax has only been set for one year – we are expecting a 3.75% increase over the next three years.  Many staff have had no salary rise or inflation rise – Council Tax forms a large amount of monthly budgeting.

Q.        Outdoor Centres – these should be closed and sold off to save Youth Services – children could be sent to other out of county outward bound centres at a cost to the parents.

R.        (Cllr Waine) The Centres are used by a lot of pupils – primary, secondary and special

The Committee AGREED to advise Cabinet via the Strategy & Partnership Committee:

(a)               (i)   that the Youth Service is a high risk, high priority area;   

(ii)  that the Committee asks for an assurance that it be involved in any future remodelling of the Service;

(iii)to ensure that young people who may be affected by any changes to

 the service are consulted;

(b)               that respite care remains a priority of the Committee and should be protected wherever possible;

(c)               that Frontline Services should be protected as much as possible;

(d)               the Committee recognises the good work carried out under the Chill Out Fund and would wish to see it reinstated as soon as possible when funding became available.