Agenda item

·  Agreed a one off non recurrent in-year increases in the contract sum to Slough Children First of approximately £1,786k relating to 2021/22 and 2022/23, being £613k for 2021/22 and £1,172k for 2022/23 for the demand pressures highlighted in Appendix 1 to 3, increasing the 2022/23 contract sum to £33.565m. 

·  Noted the current in-year forecast losses and that the Council’s £5.000m working capital loan is being used to cover these losses, putting a risk on repayment of the loan, unless alternative sources of funding are found either via savings in future years, or a further in-year change request is agreed, subject to submission of a compliant and accepted submission.

·  Delegated authority to the Executive Director of Finance and Commercial, in consultation with the Lead Member for Children's Services, Lifelong Learning & Skills, to agree the final in-year increase figure, including releasing it on a phased basis for 2022/23 based on actual spend.

A report was considered that sought approval for an in-year change under the Service Delivery Contract (SDC) for Slough Children First.  The SDC was the contractual mechanism for making in-year changes to the contract sum and Slough Children First had submitted a request to cover funding pressures for 2021/22 and 2022/23.

(Councillor Ajaib joined the meeting)

The sum requested by the company was for £1.786m over the two financial years 2021/22 and 2022/23 to cover demand pressures for the following:

·  Costs arising from an increase in unaccompanied asylum-seeking children into the area (£650k).

·  Pay award pressures (548k) to cover an award of 1.75% for 2021/22 and an average increase of 4% for 2022/23.

·  Inflationary uplift for placement costs (£88k).

·  Loss of public health grant (£500k).  SCF had budgeted for receipt of £500k from the public health grant to fund discretionary services that supported public health outcomes.  However, following a review, this would not be forthcoming and it created an in-year budget pressure for the company.

Full details for each of these areas was set out in the appendices to the report.  Lead Members asked a number of questions about the requests including about whether provision for pay awards should be included in future budgets for the company to avoid in-year requests.  The Cabinet concurred with the Commissioners comments that the in-year requests were for 2021/22 and 2022/23 only and should not be built into the base budget.

The Cabinet noted the update on SCFs wider financial position.  The company had notified the Council that it had a £1.332m deficit for 2021/22 and was projecting a £4.939m deficit for 2022/23.  The steps being taken to address the financial issues facing the company were summarised and the Cabinet would consider the business plan for 2023/24 - 2025/26 at the meeting in February 2023.  Lead Members commented on the importance of making rapid progress on the funding and governance model for the company over the coming months leading up to the budget.  The Director of Children’s Services/Chief Executive of SCF highlighted the rising demand for services and commented that the development of an Early Help model was important in seeking to minimise future service demand pressures.

At the conclusion of the discussion the recommendations were agreed.

Resolved –

(a)  That a one off non recurrent in-year increases in the contract sum to Slough Children First of approximately £1,786k relating to 2021/22 and 2022/23, being £613k for 2021/22 and £1,172k for 2022/23 for the demand pressures highlighted in Appendix 1 to 3 of the report, increasing the 2022/23 contract sum to £33.565m, be agreed.

(b)  That the current in-year forecast losses be noted and that the Council’s £5.000m working capital loan was being used to cover these losses, putting a risk on repayment of the loan, unless alternative sources of funding were found either via savings in future years, or a further in-year change request was agreed, subject to submission of a compliant and accepted submission.

(c)  That delegated authority be given to the Executive Director of Finance and Commercial, in consultation with the Lead Member for Children's Services, Lifelong Learning & Skills, to agree the final in-year increase figure, including releasing it on a phased basis for 2022/23 based on actual spend.