Agenda item

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the Corporate Plan;

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Covid 19 – the current year context and Welsh Government (WG) support;

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the provisional settlement overview;

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the draft revenue budget, including savings, employee implications of savings and policy growth, fees and charges;

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Use of the financial resilience mechanism in 2021/22;

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Reserves;

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the Medium Term Financial Plan (MTFP) 2023/24 – 2026/27 and the Housing Revenue Account (HRA);

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Capital Programme Development for 2022/23 – 2026/27;

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Cardiff Council’s Capital Strategy 2022/23; and

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The Capital Investment Programme 2022/23 – 2026/27 and funding

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Members sought information as to whether the withdrawal of EU funding as a result of Brexit was already having an effect or would only make an impact in future years. Members were advised that it was difficult to distinguish between the impacts of Brexit and of Covid. There have been issues with labour shortages and movement of goods across national boundaries that have affected Council programmes. Officers advised that money had been set aside to cover both short- and long-term price pressures.

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Members sought clarification on whether the £9.3 million uplift to the delegated schools budget represented a real-term increase or was accounted for by the growth in pupil numbers and employee costs. Members were advised that it reflected the rise in pupil numbers.

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Members queried whether the end of the Hardship Fund meant that ongoing costs would have to be covered by school budgets. Members were advised that in all services the budget accounted for new standards but where there were significant pressures on PPE or cleaning regimes for example these would be covered in part by contingency.

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Members sought clarification on the implications of the national policy on free school meals and when they would become apparent, and further what the implications on the Pupil Development Grant would be. Members were advised that the full details were not yet apparent but that the Welsh Government (WG) aspiration appeared to be that no Local Authorities would be worse off as a result of the policy. The transition to free school meals would be phased. The Council is continuing to engage with WG for further details.

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Members asked when WG was likely to give earlier notice on grants coming into schools, and whether there would be relaxation on schools recording budget surpluses. Members were advised that school budget surpluses were, in some cases, linked to late receipt of grants, and that this could be repeated. The Council is pragmatic about budget surpluses held as a result of receipt of additional money, but in rare cases, where a school does not have a plan for use of the surplus, the Council could not rule out intervention.

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Members discussed the engagement of young people in the budget consultation and how the impact of money spent on young people’s projects would be measured. Members were advised that while the response to the budget consultation had been disappointing, account was taken of all available information on the impact of the pandemic on young people. In relation to performance and outcomes, information is sought from external bodies as well as Council sources in order to identify the most effective initiatives.

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In relation to Children’s Services, Members sought clarification on the savings that were anticipated from external spend. Members were advised that the principal savings were expected to arise from existing policies in relation to foster placements and different levels of preventative care.

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Members enquired about the resilience of the revenue for the 21^st Century Schools programme. Members were advised that the Capital Programme had been tested for resilience. The £40 million capital target has been in place for a number of years and includes school and other assets. The Council has been prudent in its assumptions on when it will be delivered. Sensitivity analysis regarding borrowing rates has been carried out. In the school programme there has been some significant slippage regarding asset renewal and the priority is to address this. In relation to the SOP there have been conversations with WG which has enabled the purchase of the Ty Glas site.

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Members sought clarification in respect of the net budget for Children’s Services for 2022-23 and how it compares with the previous year. Members were advised that there was a significant increase; £8.4 million.  There have been conversations between Children’s Services and Accountancy regarding planning and service delivery and calculating costs, presumed savings and required investments.

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Members sought clarification on staffing in Children’s Services. Members were assured that investment in additional resources was already costed in.

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Members enquired as to when the findings of the Progressive Review into Youth Services would be available to inform decisions about how money set aside under the Financial Resilience Mechanism might best be used, and whether annual one-off additional spending on Youth Services would be continued. Members were advised that the review would change the way Youth Services operates. There has been one-off additional spending over the past 2 years due to the challenging circumstances of the pandemic.

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Members enquired about the implications on the Council’s work with children’s home providers and out of county placements of the WG’s commitment to end profit in the children’s care sector. Members were advised that a wide range of provision had been opened over the past year. There was increased emphasis from WG on providing resources for children’s care provision. Representations had been made to WG by the heads of Children’s Services across Wales indicating that whilst there was agreement in principle with the policy it was important that it was phased in to avoid a shortfall in provision. Research is being undertaken to determine a sustainable model for Cardiff. Meetings had been set up with providers to explore various models and reassure providers of the Council’s continuing desire to work with them. The aim is to work towards improving outcomes for children. Enterprises in the private and not-for-profit sectors have the experience to assist the Council in setting up its own care homes. A national training programme will be required to address staffing shortages and competition for staff between local authorities.

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Members were advised that the Council was heavily reliant on the independent sector for fostering and as a consequence it is not be possible to move to an all in-house model in a short time scale without a significant increase in funding. Concerns had been expressed in the media about the lack of funding to keep children in the family. It is important to focus on the needs of families with children with disabilities.

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Members enquired about the risk that efficiency savings related to the Reviewing Hubs might not be achieved. Members were reminded that the role of the Reviewing Hubs was being expanded to encompass all children on care plans with the aim of providing the appropriate level of support at the earliest opportunity. There are risks associated with the availability of support and staffing shortages.

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Members enquired about the risks associated with appropriate placement funding and shifting the balance of care. Members were advised that in recent weeks the market has become more challenging and children have had to be placed further afield. The Council continues to monitor the market on a weekly basis.

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Members questioned the number of additional places for children delivered in the current year and the plans for the next year. Officers advised that Oakway provides 2 emergency places for children awaiting their 12-week assessment. The Council is using its capital resources to provide additional short-term emergency and respite accommodation. In addition, the Council is adopting the with North Yorkshire Model to develop Edge of Care residential accommodation and a ‘hub and spoke’ model to provide children moving on from care with multi-agency wraparound support. There have additionally been negotiations with 2 national providers to secure access to further beds.

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Members were pleased to note the successful recruitment of staff but sought further information on the retention of staff. Officers commended the work of staff involved in recruitment. Members were advised that retention had been positive overall; every effort was made to encourage members of staff to remain in post but there was always some natural churn. Residential staff were now included in recruitment and retention and more people had come forward to work in children’s homes.

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Members sought an update on the replacement measure for Pupil Development Grant . Members were advised that there was no further information from WG. Cabinet Members have raised the matter with Ministers. While there is support for the principle it is imperative that additional resources be provided.

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Members discussed whether the Council was being sufficiently bold in their planning for additional ALN places. Officers advised that the Council was working towards the information contained in the available data. Future growth is anticipated, and the Council will respond appropriately. It is anticipated that the establishment of further provision will be constrained by the physical characteristics of sites.

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Members commended the Directorate on a well-deserved positive Estyn report. Members referred to the Estyn recommendation for additional counselling support and enquired about the resources required to meet that additional support, and whether that support was sustainable. Officers advised that additionality is being built into the service. The Council will be responding to the recommendation in due course.

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Members sought clarification as to when the outcome of the progressive review of youth services would be available which will inform the deployment of additional resources. Officers advised that the review would commence on 7 March 2022; the first phase would focus on the deployment of additional resources received in the Budget settlement and will be undertaken in the first 2 weeks of March.

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Members enquired as to whether the evaluation of the Summer of Smiles was available and how the programme was expected to be developed following that evaluation. Officers advised that the evaluation would be forwarded to the Committee once it was available. The evaluation will feed into the forthcoming summer activities. It is unlikely that there will be match funding from WG this year and the activities will therefore be targeted on supporting the most vulnerable children and young people in the city.

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Members sought clarification on the budgetary proportion of Children’s Services and SEN out of county placements. Officers advised that the information was not available but that where a child was placed out of county and had a Statement of SEN the cost of meeting those needs was met by the host authority.