Purpose

To request approval to increase the contract
value due to inflationary related cost pressures.

Decision

That the Cabinet
Member for Health & Communities:
 

1) approved
the uplift in the value of the existing contract to manage
unforeseen inflationary cost increases; and
 

2) note that
a percentage of the uplift would be funded from the Public Health
Grant 2 years until 31 March 2027 and a percentage of the uplift
would be funded from the Drug and Alcohol Treatment, Recovery and
Improvement Grant (DATRIG) for 2025-26 only.

Reasons for the decision

Following a
financial review the forecast overspend had arisen due to
unforeseen rises in costs related to inflation.

Alternative options considered

To decline the
proposed increase in funding and ask the trust to manage the
overspend and bring back in line with the budget. This was not a
recommended option as it was highly likely that the trust would
have to remove some elements of the service which would severely
impact the level and quality of service delivery.