Discussion:
The Committee considered a
report on the second round of the Council’s revenue budget
monitoring process for 2020/21.
Members were advised that,
since February, the Council had received £65m of Covid
related grant, much of which was for passing on to businesses. This
grant, and management action to contain expenditure, had reduced
the pressure on the budget from £24m to
£2.5m.
Members raised a number of
issues which were responded to as follows:
- Concern was raised
regarding the worsening position in Adult Social Care due to the
pandemic and the Chief Finance Officer agreed that the raising of
the precept would be beneficial. Asked about the rising cost of
nursing care, he agreed that this was not sustainable and
negotiations with providers to reduce this cost were
ongoing.
- Negotiations with the
CCG on funding placements as a result of early hospital discharges
were continuing. Members were advised that such funding had to be
claimed back from the Department of Health and NHS England via the
CCG and clear records were being kept to ensure that claims were
made.
- In response to a
question on social work agency fees paid to the Medway Commercial
Group, the Chief Finance Officer advised that, whilst a premium
would still be paid, a new Memorandum of Understanding had been
agreed and this would enable MCG to support the Council in reducing
the number of agency workers in social care through joint working
on programmes such as ‘temp to perm’.
- With reference to the
£500,000 spend on legal counsel, the Chief Legal Officer
confirmed that two senior advocates had been recruited who could
represent the Council in the High Court and above. Counsel was used
for more complex matters which required attendance at court for
longer periods and would prevent the Council’s lawyers from
undertaking their other work. He reported that the spend on using
Counsel had been brought down from £700,000 in 2016/17 to
£183,000 in 2019/20. The current spend was unusual and was a
result of Covid.
- Asked for more
information on the Members priority fund, the Chief Finance Officer
agreed to consult the Leader on whether he wanted to make
commitments against it in the current situation and if so, what the
process should be.
- A Member noted that
all sections of the budget under the Committee’s remit were
underspent and that previous Q2 figures had sometimes been much
higher. He acknowledged the good job that the Chief Finance Officer
had done in previous years in ensuring that the figures that were
presented to the Committee at the end of the financial year
reflected the figures presented throughout the year.
- With reference to the
financial difficulties that had been reported at other Councils,
the Chief Finance Officer reported that the Council’s debt
exposure was much lower. Officers were currently assessing the
measures announced in the recent Government spending review to
assist Councils, such as continued support for responding to
Covid.
Decision:
The
Committee noted the results of the second round of revenue budget
monitoring for 2020/21.
(In accordance with Council Rule 12.6,
Councillors Johnson, Maple and Murray asked that their votes in
favour be recorded.)