Agenda item

26.1     The Director of ASCH introduced the report, which incorporated the recent RPPR Cabinet report which provided an update on the policy context, the Medium Term Financial Plan (MTFP), capital programme, and the Council’s response to significant financial pressures. The report presented a further opportunity for the Committee to ask questions on the planning context and to request any additional information required for the RPPR Board in December.

26.2     The Director of ASCH outlined the Department’s priority to deliver statutory duties under the Care Act and areas which had been protected as far as possible when identifying savings. Savings proposals contained in the November Cabinet report focussed on reducing capacity and improving efficiency, maximising charging, and refocussing external grants to deliver the Council’s core priorities.

26.3     The Director of CSD noted the Department’s continued focus on prevention and SEND and outlined the savings proposals contained in the Cabinet report which focussed on consolidating functions, maximising income and grants and a review of service models.

26.4     The Chief Finance Officer outlined the financial position of the Council and key headlines from the recent Government Autumn Budget statement.

26.5     The Lead Member for Education and Inclusion, Special Educational Needs and Disability (ISEND) commented that announcements in the Autumn Budget were unlikely to benefit ESCC and there was an ongoing challenge to balance the budget.

26.6     The Committee asked a number of questions regarding the information provided in the report including:

• Children’s Care Market – In response to a question a recent Government announcement to ‘crackdown’ on childcare profiteering, the Lead Members for Education and ISEND noted there were concerns as well as potential positives from this announcement and more detail was needed on the Government’s approach.
• Autumn Budget announcements – The Committee enquired about implications of announcements in the Autumn Budget to increase Employer’s National Insurance contributions, as well as increases to the National Living Wage on the Council’s budget. The Chief Finance Officer clarified that this was not currently reflected in the MTFP and it was unclear how National Insurance contributions would impact on ESCC; although the Chancellor said that the Public Sector (including local authorities) would be protected from the increase in Employers’ National Insurance, it was not yet known how this would be funded. It would most likely impact on the Council’s contracts and suppliers, including social care providers and this would be factored into future modelling. The Director of ASCH noted that negotiations were taking place with providers around these costs. In a response to the impact of these on self-funders, the Chief Finance Officer commented that costs probably would increase for self-funders and noted the previous government’s plans for social care funding reform which were now not going ahead. The Government’s approach to social care funding was not yet known. The Chief Finance Officer also noted that the year on year increase to the National Living Wage will require in the future a review of local government pay structures, which will increase costs.
• Procurement – There was a question on social value in procurement. The Chief Finance Officer and the Director of ASCH noted that social value was part of the existing procurement process, including with social care providers. The Director of CSD noted the ongoing work to ensure value for money was being achieved and contracts were currently being reviewed to ensure outcomes delivered impact.
• Public consultations on ASCH savings – The Committee welcomed the strong engagement with the public consultation on ASCH savings proposals, and asked how responses were being considered. The Director of ASCH noted that all responses would be analysed and evaluated, including those that included alternative proposals, once the consultation had concluded. If any alternatives were financially and operationally viable, these would be presented, along with other relevant information, to Cabinet in February for decision.
• Financial impact of savings – The Committee asked about the long term costs of savings. The Chief Finance Officer responded that the MTFP took into account the costs of delivering services and emphasised the need to set a balanced budget amidst a funding deficit. He noted that previous one year settlements had curtailed the ability to plan longer term and, like other local authorities, ESCC was now in an unstainable position with the need to make savings it did not wish to make. The announcement of multi-year settlements from 2026/27 was welcome and it was hoped would result in the ability to conduct longer term planning. The Director of ASCH clarified that savings proposals for statutory services would be reprovisioned so would not incur additional costs, however, savings proposals in relation to preventative services were being analysed to understand future need for eligible services. Although it was recognised that these savings could increase demand, the Department had to prioritise its ability to meet statutory need.

26.7     The Committee RESOLVED to note the report.