Agenda item

To agree the budget scrutiny task group report on the budget proposals for 2022/23.

Councillor Margaret McLennan (Lead Member for Finance, Brent Council) introduced the report which provided an update regarding Q3 updates, as well as updates on the various departments of the Council. It was updated that forecasts were on track for the Council to be able to present a balanced budget. It was noted that within Children and Young People, there was an outcome pressure amounting to £6.9m, with the high needs block and EHCP (Educational Healthcare Plans) costs rising. This was in addition to £1.5 million provided to unaccompanied asylum seeking schoolchildren. It was updated that money from the Dedicated Schools Grant would be recouped in later years, however this would lead to an overall deficit of £14m. In terms of the Council’s savings profile, it was updated that £8.5 million in cuts would be met, in line with the Council’s most recent budget. Therefore, the main area where a deficit was seen was within CYP.

The Committee was then invited to raise questions on the update provided, which focussed on a number of key areas as highlighted below:

·         In relation to the Dedicated Schools Grant (DSG) asylum seeking schoolchildren deficit, it was asked how could this be sustained in the future if the Government would not fund this. It was answered that the DSG would be recovered in later years, and that the Council and other Local Authorities across the country were lobbying the Government regarding the deficit around asylum seeking schoolchildren. It was also explained that Local Authorities that do have a deficit had a deficit recovery plan, which would be put in place to attempt to bring growth down to a sustainable level. It was noted that reducing this deficit was a key priority within the finance agenda for the Council and nationally. At the recent Local Government Finance Conference, it was acknowledged that lobbying and advocating would need to take place for this to happen. The Committee were also assured that this was not having an impact on current provision within the high needs block, with Cabinet recently approving the investment in 427 special needs places within Brent.

·         The Committee raised whether there was an underspend in the Black Community Action Plan and why this had happened. It was clarified that many projects had been delayed due to the impact of Covid-19. The money had been allocated however it was delayed in being spent.

·         In relation to the risks in the Q3 financial report, it was asked whether an equality impact assessment had been made for the reduction of bus routes for disabled adults. It was clarified that these services had not been reduced, but may not have been utilised in the current financial year and that a decision had not been made around reducing those routes.

·         In relation to 1.12 of the Scrutiny report, it was asked whether the Social Care precept reduction from 2% to 1% would have an impact on service delivery. It was noted that this was factored into the draft budget for 2022/2023. However, it was noted that whilst the precept provided ring-fenced funding for Adult Social Care, this did not cover the totality of pressures or growth surrounding the Department, and only supported a proportion of this. The Government had provided additional Social Care grant funding and although this still resulted in less funding, it still amounted to a balanced budget.

It was RESOLVED:

(1)     That the following areas for improvement be noted:

·         For the Council to continue to lobby central government for a sustainable solution to funding the Dedicated School Grant deficit, with active involvement from Cabinet.

(2)     The Committee made the following information requests:

·         To receive details of any lobbying and/or media communications undertaken by the Council and other local authorities calling for additional funding to recover the Dedicated School Grant deficit.