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Agenda items 5 and 6 were considered together.

The Cabinet Member introduced the report and thanked the Chief Executive, Executive Directors and Officers who worked hard to analyse the detail in the settlement and prepared papers for Cabinet and Scrutiny. 

There is provision for some extra funding for social care, but it does not go as far as was hoped.  The settlement indicates we will receive £20milliion less than in 2010, the burden passes onto Council Tax payers. 

Further investment coming to the services outlined in the cabinet papers, however not much change to areas of concern to this committee. 

Executive Driectors noted that this is an update since November which includes updated assumptions around inflation, pay and grants.  Pressures in social care and housing still exist, we are not alone, other brooughs are also affected.

Final settlement will come in the next week or ten days, the pressures are challenging, funding has not matched changes in service and demand over recent years. 

It’s the fifth year in a row of receiving a 1 year settlement, which makes longer term planning more challenging. 

In response to questions it was confirmed that:

-       Govt figures suggesting 5.8% increase in core spending power assumes that the full power to increase council tax will be taken advantage of.

-       An announcement in late December around funding followed by an update in January made the budgeting environment very challenging

-       Placement spend is 24% below average per child, recent assessment by Grant Thornton shown that we have a cost effective system in place.  Work is ongoing to assess ability to provide more care within the borough,

-       Also looking at providing semi-independent accommodation for children leaving care.

-       Highest cost is £29k per week for one child, in secure placement.  $8k per week is normal for an average placement. 

-       Local foster carers is more cost effective than using agencies, which in turn are more cost effective than children’s homes.

-       Looking at ways to use dynamic purchasing to reduce SEN transportation costs, through travel training, and other initiatives. 

-       It won’t take two years to do the feasibility study, but will need some expert advice to help follow up the recommended work from that study.  Will be looking at existing building stock, but will put in a capital bid at the appropriate time, but expect as a long term spend to save, such a bid would be well received. 

-       Local response to cost of living includes providing saving accounts to y7 pupils in the borough through Croydonplus Credit Union along with lessons in school around money management. 

-       The social care grant is ring fenced for children and dults but does not specify the proportions.  No reduction in overall funding.

-       Most of what can be seen in family hubs is different services coming into one place, the services will continue, though transformation funding will cease.

-       Capital spend projects may take place over a longer period of time or in the future.  Members can scrutinise each of these projects, if requested, but the budget report does not go into high detail on each project.  Members can also seek briefing from Executive Directors.  The Commission will also look at the details. 

-       We are working hard to ensure that early years provision can continue, some savings will come from an increase in grants, but nevertheless ambition is to ensure provision meets requirements.