To consider the Budget Monitoring Report for Quarter 1 2024/2024 and make recommendations to the Cabinet.

The Board considered the submitted report which provided a high level summary of the Council’s Revenue and Capital Budgets for the 2024/2025 Financial Year.  The forecasts were based on information at the end of Quarter 1 and showed a predicted overspend of £0.526m, which was lower than the same quarter in previous years.

Members asked questions in relation to cost of taxis for school transport; why the Debenhams Development did not have budget assigned; a changing places toilet was being installed Brixham what was happening with Torquay and Paignton; in Exempt Appendix 2 what was a DRO (this was a Debt Relief Order); what progress had been made with the demolition of St Kildas; what action was being taken to address the overspend in Children’s Services and Legal Services; how confident was the Cabinet Member that the Council would achieve the identified savings on school transport; what was happening around Armada Park and the Capital Funding as the project had finished this week (a written response would be provided on the funding and why it was not showing in the report); what was the reason for the Grant Thornton External Audit Fees trebling and what other options were there for External Audit; why was the Revenue Budget Digest not showing on the website for 2024/2025; what was the reason for two different lines for the Paignton Coastal Defence Scheme; had the cut in interest rates impacted on our projections for the Treasury Management Budget; Adult Social Care Debt was showing £25m liability, had the Council considered selling the debt to the private sector to collect, as Cornwall Council had tried; was there a moratorium on spending on play equipment whilst the review was taking place and would new play parks such as the one at Plantation Way be included in the review (a written response to be provided on the terms of reference for the review of play parks, moratorium, start and finish times for the review and what happens with new parks); what was the reason for the reduced levels of fee income within Development Control; how confident was the Director of Pride in Place that the Planning Service for the Future has improved and that this was not just a result of drop in numbers of applications; and would there still be a need for solo transport to school for disruptive children or those who need to travel with an escort;

In response to questions around school transport, Members were advised that although the cost of school transport had increased the number of children had not increased significantly.  Action was being taken to reduce costs through a full review and needs analysis which ensured that the needs of the child was being addressed, where appropriate minibuses were being used to transport multiple children and a travel trainer was working with some children to help them to travel independently.  A risk assessed approach was used and those children who needed to travel alone or with an escort would continue to do so where this was the best option for those children.  The Director of Children’s Services was confident that there would be an improvement to the outturn for school transport through the robustness of the oversight put in place to try to address the £250,000 forecasted overspend.

In response to questions around the Capital Plan, Members noted that there was no money allocated in the Capital Plan currently for the Debenhams site as the costs sat outside the budget at this time.  The data that was included in the Capital Plan was only that which had Council approval of the relevant Business Case.  There was a separate list of projects that would be moved as soon as their Business Case had been approved.  The Changing Places budget of £90,000 was for the one in Brixham and this was fully Grant Funded.  It was anticipated that a bid would be made for one in Torquay at a cost of £90,000 once the funding opens up again for bids.  Internal works to remove asbestos was underway at St Kildas before the building could be demolished (a written response would be provided on the timescale for this project).  The Paignton Coastal Defence Scheme was funded through Levelling Up, Future High Streets and Environment Agency funding which was why there were two separate lines in the report.

Members were advised that the Council did not have any intention to sell the Adult Social Care Debt to the private sector and that this had not worked out for Cornwall Council.  It was noted that a lot of the debt was waiting for people to sell their homes to pay the debt and that there was a difference between people who do not understand their bills and those who choose to not pay them.  The Treasury Management Team had anticipated that interest rates would not stay at the same level of 2023/2024, and it was not anticipated that there would be a shortfall as a result of interest rates recently going down by quarter of a percent.  The Council had also entered into some fixed term deals at a higher rate and also locked in £15m for a longer term to provide more stability in our forecasts.

The Board was advised that there had been an increase in Social Worker vacancies from 6% in 2022 to 15% in 2024/2025.  There was a lot of pressures nationally on agency fees, a higher rate for Social Workers and also the impact on Stable Homes Built on Love (originally due in September but now in expected in next year) to manage the agency market and moving to a higher rate.  This had resulted in a number of Social Workers moving to agency as well as some neighbouring Local Authorities stepping away from the Memorandum of Understanding on an agreed pay level for Social Workers.  Due to the good working conditions and Torbay’s relational way of working a number of Social Workers had converted back to Torbay.  The market was also competitive and challenging for Solicitors and work had been done through reorganisation of the Team and pitching market supplements at appropriate levels to see some changes.  The outturn last year for Legal Services was £680,000 and it was currently £450,000.  A second round of recruitment would help to reduce the overspend but it would not be completely addressed in year.

Members were advised that the Revenue Budget Digest for 2024/2025 was not yet showing on the website as the final budget following the transfer of TDA to Torbay Council needed to be merged into the document to ensure a complete picture.  The data was available if Members needed to see specific details.

The Director of Finance highlighted the national issues with the backlog of External Audit and the strain on the sector.  The fees were set nationally by the Government and Torbay Council had signed up to the Public Sector Audit Appointments (PSAA) Framework for External Audit which gave a better rate due to joint purchasing.  However, more firms were starting to come to the market and it was expected that the Council would save money against the 2022/2023 fees due this financial year not requiring a full audit.  Audit Committee had received a report on Externa Audit which can be viewed at 2022-23 Local Government audit plan template (torbay.gov.uk) at their meeting on 24 July 2024.

The Board was informed that there had been a significant reduction in the number of planning application which was around 20% down compared to the previous two years.  The number of individual households applying for planning had reduced from 558 in 2021/2022 to 351.  This was likely to be due to high levels of interest and cost of living which had not been fully recognised when setting the budget for 2024/2025 in respect of planning fee income.  Officers were trying to encourage a higher level of pre-applications and asking agents to engage with the Service at an earlier stage to improve the validity and quality of applications.  Improvements in the Planning Service could be shown through the lack of appeals and the timeliness of cases coming through the system as well as the new inclusive approach and work of the Development Management Team Leader.  These improvements were not just as a result of a reducing market.

Members were advised that Participation Officers were working with SWISCo over the summer to speak to children about what they see as play and what they want as part of our child friendly approach.  Members recognised the need to take into account a community users of play parks as well as the children.

The Overview & Scrutiny Board noted the Council’s forecasted revenue outturn position and mitigating action identified and the updates to the Capital Investment Plan and the revised budget for 2024/25.

Resolved (unanimously):

1.       that the Director of Finance be requested to include more details in the Quarter 2 Capital Budget appendix, at a level to be agreed by the Director of Finance and Cabinet Member for Housing and Finance;

2.       that the Audit Committee be recommended to review the Public Sector Audit Appointments (PSAA) Framework for External Audit and explore future options and report back to the Overview and Scrutiny Board;

3.       that the Director of Adult and Community Services be requested to provide a written update on the profile of the Adult Social care debt to the Board; and

4.       that Councillors be requested to work with planning agents to encourage higher level of pre-applications to help to improve the validity and quality of applications.

(Note:  Councillors David and Jackie Thomas left the meeting prior to the start of this item.)