Agenda item

The Corporate Scrutiny Committee considered a report of the Executive Director of Finance and Performance which set out the draft outturn for 2022/23.  The report set out the material financial issues which had been identified since the 2022/23 budget had been set in February 2022 and was based on the draft outturn for 2022/23.

The draft outturn reflected an overspend of £965k and due to strong financial management, the Council had been able to absorb most of the pressures arising from the Children’s Trust.  This was the Council’s largest single contract and they were reporting an overspend of £21.387m, the cost of which to the Council was £9.444m.

The Council’s overall draft outturn forecast for the Housing Revenue Account was a forecast underspend of £701k against the approved budget of £36.270m.

During discussion on the report, the following key points were made:

i.        The overspend by the Children’s Trust was worrying and what actions were being taken to address this?  In response, officers advised that they were continuously working with the Children’s Trust to look at service delivery.  Due to the arrangements for the establishment of the Trust, the two councils did not have operational oversight.

ii.       The Council had two demand led services, children’s and adults social care.  Adults had delivered around its budget but children’s was raising a red flag and could be a significant risk to the Council.  Were the Council confident that children were being looked after effectively?  In response, officers confirmed that they were constantly trying to work with the Trust who had significant pressures on staffing, placement costs and transport.  We were also working with the Department for Education, escalating any challenges that we saw.  It would be legitimate to ask whether the Chair of the Improvement Board could attend a future meeting, also the Chair of the Trust.

iii.      In the report, one paragraph stated that there was a saving on street lighting but in another paragraph, it stated that there was a pressure.  In response, officers advised that there were a number of street lighting assets and contracts.  Some were managed under a contract with Balfour Beatty, but the former district and borough lighting was managed through a separate contract and that is why there were different outturns.

iv.      In response to a question as to whether the government had undertaken their review of Business Rates, officers clarified that it had been delayed for another year.  A reset was now expected in 2025/26 but this may now be delayed until after the next general election.  This was leading to uncertainty around our funding schemes.

v.       The situation with the Children’s Trust was similar to what had happened at the former County Council.  The Executive Member stated that the situation at the County Council was due to the lack of management and control over the service.  NNC did not have control over the Trust.

vi.      How was the Council not aware of the situation with Kettering Leisure Village if they were aware of pressures on other leisure facilities?  In response, the Executive Member advised that the Council had made a separate grant to KLV of £337k.  KLV was run by a separate, private company and NNC only knew of the proposed closure at the last moment, the same time as everyone else.

RESOLVED:

To note the draft outturn report 2022/23.