Agenda item

To provide a full overview of both the service delivery performance and budget position across the Authority as at 31 July 2024; the key areas of service delivery on performance including where this impacts in budget terms; and the forecast outturn position to 31 March 2025 for both revenue and capital.

The most recent Performance and Financial Management Report was presented to Cabinet. 

The report sets out the key areas of service delivery and the performance metrics that drive the financial forecast based on the position as of 31 July this year.

Service delivery across the Authority remains strong, although the Authority continues to manage high levels of demand in a number of areas including education, children’s services, adult social care and homeless presentations. 

Particular areas of strength include the policy priorities of the Our North Tyneside Plan 2021-2025.  

·       The Authority is on track against its commitment to become carbon net-zero by 2030.  Carbon reduction in council service operations has decreased by 60% against the baseline year of 2010/11. 

·       The ambition to deliver 5,000 Affordable Homes is on track against the profiled target, with 2,289 homes delivered.

·       Council Tax and Business Rates collection remains strong and comparable with national performance.  

·       We continue to take a “Home First” approach to hospital discharges and the number of homecare hours commissioned by the authority is continuing to increase, reducing reliance on short-term residential care, facilitating hospital discharges and increasing residents’ independence to remain at home with support.

In line with previous reports, the Authority’s Safety Valve Management Plan is forecast to reach a positive in year balance by the end of 2027/28 in relation to high needs education.  At the end of July 2024 there are 2,246 EHCPs and the latest statutory return results show that since the Authority joined the Safety Valve Programme, the rate of new EHCPs issued has decreased in contrast to increases seen regionally and nationally.  Whilst the rate of growth is significantly better than regional and national comparators, the Authority continues to manage the high volume of requests received for assessment, mediations and tribunals. 

Cabinet will remember that our progress in this area secured additional funding of £19.5m from the Department for Education.   A condition of this funding was for regular performance reports to the DfE -  three submissions have been made, confirming the Authority is on track against the agreed performance measures.

Home to School Transport Service has a reported pressure of £1.8m partly due to increased inflationary costs, but mostly attributable to the high number of pupils with complex needs who need support with transport. Cabinet will be aware that Home to School Transport is being reviewed as part of the existing MTFP programme. 

Children’s Services in particular is an area of increased demand for the Authority leading to financial pressures.  The number of children in our care remains higher than the 365 children budgeted for with 375 children in care in July which, along with the placement mix of children in care and the cost of individual places, has led to a financial pressures.  However, positive improvements continue to be seen in terms of the number of children in need, which is now in line with the MTFP assumptions and will deliver financial benefits in the medium-term.  There is further detail on performance contained within Annex 1 to this report.

As Cabinet has discussed in previous meetings, we know that there continues to be significant pressures in 2024/25 and into the medium term.

Driven by our current performance information, as summarised, the forecast net pressure for the General Fund is £14m, £0.326m worse than the outturn position reported at the last Cabinet meeting.

Many of the pressures in the current year are consistent with those faced in recent years, and importantly form part of our existing Medium Term Financial Plan projects.  The pressures include the impact of inflation, on both in-house delivery and externally commissioned services, as well as rising demand and increased complexity for services within both adults and children’s social care. 

Cabinet will note that a programme of work is in place to both manage and mitigate the in-year pressures and the Senior Leadership Team has worked with Senior Officers across the Authority to consider a range of in-year mitigations that could be explored to support the 2024/25 position. These are included in the forecast position.

In terms of Schools, the projected year end deficit position is £9.707m as our schools continue to face similar challenges to the Authority. We continue to work with our schools to help address the deficit position.

It is good to note that there are no material issues in respect of the HRA with regards to its normal activity, and the HRA position is projected to outturn with a minor overspend of £0.039m.

Moving onto the Investment Plan - over £21.6m has been spent in the Borough so far this financial year.  Officers have carried out a further review of the plan, resulting in variations of £10.3m and reprogramming of £5.6m to the end of July 2024 and challenge sessions are underway with Senior Officers to further review our delivery plans.

Cabinet Resolved to (a) note the update provided on the Performance of the Authority including updated data on the key pressures facing the Authority and progress against the Our North Tyneside Plan 2021-2025, (b) note the forecast budget monitoring position for the General Fund, Housing Revenue Account (HRA), schools finance and Treasury Management together with the service delivery performance position across the Authority as at 31 July 2024, (c) note the Authority’s Investment Plan spend of £21.556m to 31 July 2024 and the proposed financing of the Plan to the end of the year, (d) approve reprofiling of £10.299m from 2024/25 into future years, and variations of £5.626m within the 2024-2029 Investment Plan and note the current position with Developers’ Contributions, and (e) approve the receipt of £0.465m new revenue grants and £4.768m of new capital grants