To consider the Budget Monitoring Report for Quarter 2 and make recommendations to the Cabinet.

The Cabinet Member for Housing and Finance, Councillor Tyerman and the Director of Finance, Malcolm Coe outlined the submitted revised Quarter 2 Budget Monitoring Report for 2024/2025, which showed an overall end of year forecast of £0.292m overspend.

In addition to the report the Board was advised that the following items would be included in the Capital section of the report to the Cabinet and Council:

Members asked questions in relation to where the £7.554m was coming from for Oldway; concern over the potential increase in spend for Adult Social Care and the impact on the budget; what was the reason for the £180,000 from Children’s Services Higher Needs Capital Funds for YMCA Capital improvements (a written response would be provided to this question); what was the reason for the waste disposals being significantly higher than last year and was there a corresponding increase or decrease in recycling; the content of the Budget Digest; assurance around 33 agency full time equivalent agency staff in Children’s Services and if this was going to reduce; the Dedicated Schools Grant and the Safety Valve and the agreed payback; and what was the governance around the decision to vire money from the Town Deal Fund to fund the Harbour Public Realm (a written response would be provided to this question).

In response to questions, Members were advised that the £7.554 for Oldway would be drawn down from Government capital funding with the Director of Finance being authorised to draw down funding to ensure the Council was spending to meet the grant conditions.

Members noted that the Council had negotiated a new deal with the Integrated Care Organisation from 1 April 2025 and know what the financial liability for Adult Social Care was and how much to put in, any overspend was held with health colleagues.  Wider Adult Services the additional money put into temporary accommodation and homelessness were now meeting demand as well as the additional money in Children’s Services, which was looking like a balanced budget would be delivered by the end of the financial year.

The Board was advised that the waste product from the recycler’s market value had declined bringing in less income but for a better quality product.  The levels of waste being sent to incineration and recycling goes up and down.  It was noted that the Waste and Recycling had not been over budget since Torbay became part of the South West Wast Partnership.  Members were advised that they could visit the site to see how our waste was managed and to let the Governance Support Team know if they wanted to organise a visit.

It was noted that there was still upwards pressure on the Higher Needs Block of the Dedicated Schools Grant, however, interventions such as the proposed Locality Model and the need to make different decisions would help longer term.  The Director of Finance gave assurance that the Director of Children’s Services was looking at the sustainability of staffing for Children’s Services.

Members were advised that the recent Budget Digests did not include the traditional savings plans and targets that had been previously used but focussed on areas to ensure they were addressing the costs e.g. Home to School Transport.

Resolved (unanimously):

1.         that the Overview and Scrutiny Board notes the Council’s forecasted revenue outturn position and mitigating action identified in the submitted revised report;

2.         that the Overview and Scrutiny Board notes the updates to the Capital Investment Plan and the revised budget for 2024/25 as set out in the submitted revised report;

3.         that future Budget Monitoring reports include more detail on the Higher Needs Element of the Dedicated Schools Grant and Safety Valve; and

4.         that the Director of Children’s Services be requested to provide a copy of the recovery plan for agency workers to Members.