Agenda item

The Deputy Chief Finance Officer gave an overview of the Council’s draft Budget and the consultation timetable before Council agreement on 16 February 2023.  Detail was also provided on the draft Budget specifically within the remit of the Panel.

In the ensuing discussion, the following main points were made and would be reported to the Overview and Scrutiny Performance Board at its meeting on 30 January 2023:

·        The service demand for Adult Social Care for 2023/24 was budgeted at £18.5m with a £16.4m net investment into Adult Social Care including Provider Services, funded by the 2% Adult Social Care Levy, other funding streams and savings identified relevant to Adult Social Care

·        Members welcomed the 2% Adult Social Care Levy for 2023/24 and were pleased to hear that the Cabinet Member and Officers  every opportunity to lobby Government for fair funding

·        The Panel was keen to know how Worcestershire spend in Adult Social Care compared to that of other local authorities.  It was agreed to provide benchmarking information to Members

·        The Council’s assumption for inflation was 5%, however, there were some contracts, mainly in highways and transport, where inflation was much higher.  In Adult Social Care, inflation was difficult to forecast as a number of contracts had zero uplift and would require renegotiation and also the retail price index changed monthly

·        In terms of how the Council mitigated if inflation rates remained high, the Panel was advised that there was a balance to be achieved and that most contracts had inflation built in.  However, spot contracts (care purchased at the time of need) were negotiated at the time of need.  There was currently around a 20% vacancy rate in Worcestershire Care Homes.  Costs for spot purchased beds would vary depending on supply at the time and client need, however, block purchased beds would likely be more economical if fully occupied, however, when not used, would still be charged for.  Members were reminded that the Council had statutory duties to meet.  In addition, patient choice was a huge and important factor for anyone requiring a Care Home placement, either on a short or long term basis

·        The Council had set a savings target of 6.5% across the organisation for vacancy management, enabling savings to be achieved between an employee leaving and their successor starting.  It was acknowledged that this target will not be achievable for some areas of the Council and reserves of £5m had been earmarked to mitigate for this

·        In addition, the People Directorate had a savings target of £661,000 for the delay in recruitment to vacant posts.  The Strategic Director assured the Panel that recruitment was a priority and that posts were not left unfilled to make savings.  Overall, there had been an underspend by the Directorate in this area this year and it was therefore prudent to account for this

·        Recruitment was of ongoing concern in health and social care.  The Council could advertise posts with salaries which could include Market Forces supplements, however, the pool of applicants was in short supply across the sector and neighbouring authorities were equally able to increase a pay offer, if that was a prominent factor for a job seeker.  The Council was looking at innovative ideas to attract people to work in Worcestershire which included the overall job package not just pay

·        The Panel agreed that care work as a career could make a huge difference to people’s lives and the Council and its Members could do more to share some of the positives.  A video had recently been produced to promote working in Social Care in Worcestershire which would be shared with Panel Members to enable further promotion in their communities

·        Members asked how the Council and its Members could help in slowing down the demand for adult social care.  In response, one suggestion was that Members could promote and support local community provision, such as Dementia Cafes and Clubs aimed at combatting loneliness.  The Panel agreed that Members had a duty to advertise local provision to residents and where possible to was suggested that Councillors could use their Divisional Fund to support and develop community assets

·        Clarity was given that the newly announced Government Discharge Fund, allocated to support people being discharged from hospital into social care, was not a Grant, rather monies which Integrated Care Boards could claim and in the case of Herefordshire and Worcestershire, was capped at £2.6m from a national fund of £200m.