12.1 The report
was introduced by Philip Baker (Assistant Chief
Executive). He outlined
that this is the start of
scrutiny’s engagement in the budget setting process for
2022/23 and beyond. The State of the County report considered by
Cabinet in July set out the detailed financial planning context for
rest of the year and beyond. However,
the financial and policy position remains one of uncertainty and
there have been a number of developments since July which will be
covered in a RPPR report to Cabinet in September 2021. There have also been a number of significant
Government announcements which include:
-
There will be a three-year financial settlement
following the spending review which is likely to be published on 27
October 2021.
-
The Government is aiming for a balanced budget from
the financial years 2023/24 through to 2025/26.
-
The Government has announced plans for Health and
Social Care reform which will be funded by a 1.25% levy on National
Insurance contributions made by employers and employees. Details
will be set out in a White paper which will be published later in
the year. The impact on East Sussex could be significant in terms
of the local care market and on local health partners.
12.2 The
Committee discussed the report and a summary of the key points
discussed is set out below.
-
In response to a query regarding the one-off reserve contribution referred to in
paragraph 1.5 of the covering report, Members were informed by Ian
Gutsell (Chief Finance Officer)
that due to the pandemic some of the
pressures included in earlier financial planning had not
occurred. As a result an opportunity
had arisen to explore into the autumn the use of £8.855m
one-off funding for investment in areas that will help better
manage future demand for services or support the delivery of
priorities such as highways or climate change. It was also clarified that the savings set out in
the report are ‘legacy savings’ resulting from
decisions taken in previous years and that the Medium Term
Financial Plan for next year does not contain plans for new savings
to be identified.
-
The Committee asked about the steps being taken to
address delays in children and young people receiving a diagnosis
from Children and Adolescent Mental Health Services
(CAMHS). In response the Alison
Jeffery (Director of Children Services) informed Members that the
Department is in discussion with colleagues from the local NHS
Trust about what can be done to streamline the referral pathway and
deliver quicker responses. Work is also
being undertaken to raise awareness amongst the wider workforce of
neural diversity in children. It is hoped this will result in more
children and young people gaining access to support in a more
timely manner, without necessarily requiring a formal
diagnosis. Furthermore, additional
funding has been provided by central government to support
children’s mental health. The
Department are therefore actively engaging with NHS partners to
help ensure the best use of the funding.
- With regard to the
Government’s announcement of introducing a cap on care costs,
it was clarified to Members that the national insurance uplift for
employers and employees will come in to force in April
2022. The change to what people
pay, however, will not be introduced until October
2023. It was also clarified
that is anticipated that the cap will be applied to care costs and
will not cover costs such as accommodation and that the department
are waiting on further detail about, for example, what the
additional funding from central government will be allocated
to.
12.3 The Committee
RESOLVED to establish an RPPR scrutiny review board
to consider the developing Portfolio Plans and Medium Term
Financial Plan and to submit Scrutiny’s final comments on
them to Cabinet in January 2022.