Agenda item

The Executive Director of Finance & Commercial introduced a report that set out the financial monitoring position for the 2022/23 year as at the end of July 2022.

Senior Officers from each of the directorates were present to answer questions from Members about specific departmental and services issues.

The overall forecast year-end position for the General Fund, taking account of use of all capitalisation directions amendments, was a fully balanced position.  However, there was an overspend of £7.6m across service areas including a shortfall on in-year savings of £4.4m against a total target of £20m.  This included the loss set out in the Slough Children First company business plan.  An additional provision of £4.4m had been made for cost of living and inflation pressures over and above what was allowed in the 2022/23 budget.  The Committee noted the updated position on Dedicated Schools Grant and the Housing Revenue Account.

Members were concerned about the shortfall in savings delivery at that point in the year and asked if there had been any improvement in the position since the end of July.  The Director commented that the Month 6 report would be produced shortly and be received by Cabinet in November.  The committee challenged the robustness of the assumptions behind the figures and it was responded whilst officers were confident the report presented reflected all the identified risks at the time, it was likely new risks and opportunities would emerge.  Improved risk management practice and register was now in place and regularly reported to the Audit & Corporate Governance Committee.

Members asked each of the senior officers present questions about the delivery of savings plans within their services areas.  The Committee welcomed the fact that People (Adults) was on track to deliver its savings target this year and Members asked about how that had been achieved and whether there was any learning that could shared across the Council.  The Acting Executive Director for People (Adults) stated that the savings target was challenging but that a well-managed transformation programme was in place and the external support provided by PeopleToo had been important in achieving savings targets.

It was noted that Slough Children First (SCF) was reporting a forecast loss of £5.2m based on the July version of their business plan.  Members questioned the underlying reasons for the continued losses made by the Trust and now the company.  The SCF Finance Director explained the position and highlighted that demand for services was high and rising.  Many of the pressures on children’s social care were national, including workforce shortages which led to the high cost of agency staff.  Plans were being developed on a new early help model to try reduce demand but this was an invest to save activity that would require funding from the Council.

In relation to the Place directorate Members asked about the unachieved income target for leasing space at Observatory House.  The Executive Director for Place & Community explained that there had been interest in leasing space at the time the savings proposal was included in the budget but this had not materialised and the options for Observatory House would be included as part of the asset disposal programme.  Other matters raised included how the Council was seeking to minimise energy costs and assurance was provided that energy had been purchased until the end of March which would provide some protection against the rapidly rising princes.

During the course of the discussion on both finance items several members of the committee had commented on importance of supporting residents and the following recommendation was therefore proposed by Councillor Gahir and seconded by Councillor Bal:

“Bring back the corporate complaints and democratic services resource to handle member casework as was previously done.”

The proposal was agreed by the committee.

In relation to financial monitoring scrutiny the committee agreed that the report contained a lot of assumptions which were dependent on a number of key issues and there has been a shortfall against saving targets.  The report referred to the fact that the Cabinet, auditors and commissioners expected regular reports to evidence progress made and the following was therefore proposed by Councillor Matloob and seconded by Councillor Kaur:

·  “These reports come to scrutiny too at the same time.

·  If needed, we arrange extraordinary scrutiny meetings or direct meetings with the Executive Director of Finance and Commercial & relevant cabinet member to review key issues & examine savings plans to ensure they are robust.

·  Better timely detail shared to scrutiny on the assets being put forward for disposal.”

This proposal was agreed by the committee.

The Chair thanked the Lead Member, Executive Directors and other officers for their contribution to the meeting.

Resolved –

(a)  That the report be noted.

(b)  That the following be recommended to the executive to seek to improve the support to residents:

“Bring back the corporate complaints and democratic services resource to handle member casework as was previously done.”

(c)  That the following be agreed in relation to future scrutiny of financial monitoring and plans provided to cabinet, the auditors and commissioners:

·  “These reports come to scrutiny too at the same time.

·  If needed, we arrange extraordinary scrutiny meetings or direct meetings with the Executive Director of Finance and Commercial & relevant cabinet member to review key issues & examine savings plans to ensure they are robust.

·  Better timely detail shared to scrutiny on the assets being put forward for disposal.”