The meeting was scheduled to discuss a number of reports related to the finances of the council. It was due to receive an update on the second quarter finances for 2024/25 and the current budget position for Children's and Adult Services. It was also scheduled to consider reports on the calculation of the tax base for 2025/26, setting the Business Rate Base for 2025/26, and a Revenue Budget Update covering 2025/26 to 2027/28.

Children's Services Finances

The committee was scheduled to receive a joint report from the Director of Children's Services and the Deputy Chief Finance Officer on the second quarter finances for 2024/25.

The report was due to explain the forecast overspend position for Children's Services, which was £3.342m. In addition, legal costs for cared for children were also forecast to be £1m over budget.

The report attributes the overspend to several factors:

• The number of children in care is higher than planned, and the unit cost of placements has increased. In particular the average weekly cost of Independent Fostering Agencies has increased by £0.7m and the cost of Residential placements has also risen by £0.7m, driven primarily by the cost of one individual child.

• Supported Accommodation costs have also risen significantly due to changes in Ofsted¹ regulations.

• Safeguarding costs are also over budget.

• The number of Education, Health and Care Plans (EHCPs) continues to grow, resulting in increased demand for Educational Psychologists and Disability Services. There are also significant cost pressures in SEND transport, with the forecast overspend for 2024/25 being £0.852m. This overspend is being attributed to a number of factors:

  • An 11% increase in the number of pre-16 children using the service.
  • A 60% rise in the average cost per child, from £3,877 to £6,345.
  • A 19.1% increase in the number of children attending Independent Non Maintained Special School (INMISS).

The report also outlined several proposals for mitigating these costs. These include:

• Increasing the number of foster carers and extending existing foster carer properties.
• Bringing four new in-house residential homes into service by April 2025.
• Stabilising the workforce to reduce the use of agency staff.
• Strengthening partnerships with the external market to ensure effective commissioning and contract management.
• Implementing the Family Safeguarding model to keep more children safely with their families and out of care.
• Developing a Greater Manchester (GM) foster care hub to increase the number of foster carers across GM.
• Improving SEN hubs in schools to reduce the need for expensive out of area schools.
• Contributing to a joint working group with GMCA and the GM SEND Board, which is working with Transport for Greater Manchester (TfGM) on solutions to the cost pressures in SEND transport.

Adult Care Finances

The committee was scheduled to receive a joint report from the Director of Health & Care Integration (DASS & Deputy Place Lead) and the Director of Corporate Services/Chief Finance Officer on the second quarter finances for Adult Care.

The agenda names the document to be considered, but it was not included in the meeting pack.

Quarter 2 Finance Update

The committee was scheduled to receive a report from the Director of Corporate Services/Chief Finance Officer on the second quarter finances for 2024/25.

The report was due to explain that the overall forecast for 2024/25 is an overspend of £3.387m, driven by overspends in Integrated Care and Health, Children’s, and Economy & Place, which are being partially offset by savings in Corporate Services and higher than expected Treasury income.

Revenue Budget

The report stated that the forecast overspend in Integrated Care and Health is £1.795m and is being attributed to several factors:

• The ageing population
• An increase in the complexity of care needs
• An increase in mental health issues.
• The national and regional push to discharge people from hospital, which is resulting in individuals who are more complex at the point of discharge, and therefore requiring more expensive packages of care.

The forecast overspend in Economy & Place is £0.802m, and is attributed to:

• Housing Benefit and Homelessness costs, which are not fully covered by Government subsidy
• Continuing pressures in Environmental Management, Highways and Engineering, and Planning & Building Control.

The report notes that the underspend in Corporate Services has been achieved through:

• Staff savings, as a result of delays in recruitment to vacant posts, temporary arrangements, and one-off funding.

Capital Budget

The report was due to explain that the capital budget is forecast to be £116.903m, which is £36.442m lower than the budget set at the start of the year. £32.774m of this reduction is due to rephasing of expenditure in Economy & Place and Schools, with £14.774m of the rephasing in Economy & Place being funded through grants, capital receipts and prudential borrowing. The remaining £3.668m of rephasing is funded through grants, capital receipts, or prudential borrowing.

Significant Capital Budget Changes

The report also details several significant capital budget changes:

• £3.608m of High Needs Capital Allocations, received in March 2024
• £1.467m of additional High Needs Capital Allocations

Property Growth Fund

The Property Growth Fund is forecast to have a remaining uncommitted budget of £37.446m at the end of the year, and is forecast to have a net income of £1.71m in 2024/25.

Treasury Management

The report explains that the forecast for Treasury Management is an in-year saving of £1.876m. This saving has been attributed to:

• A reduced need to borrow, due to higher balances and slower progress on the Capital Programme.
• Higher than expected investment income, as a result of the Bank of England's base rate remaining high.

Setting the Business Rate Base

The committee was due to receive a report from the Director of Corporate Services on setting the Business Rate baseline for 2025/26.

The report was due to explain that:

• The Business Rates baseline is the estimated Business Rates income for the following year and is used to inform the precepting authorities of their precept on the Collection Fund.
• With the continuation of the 100% Business Rates retention scheme, 99% of the baseline income will be allocated to Rochdale BC – General Fund, and 1% will be allocated to GMCA Mayoral General (including Fire Services).
• The draft baseline figure for 2025/26 is £86.150m. This figure is subject to change, pending the provisional Local Government Finance Settlement 2025/26 and the issue of the Ministry of Housing, Communities and Local Government (MHCLG) guidance on completion of the 2025/26 Business Rates baseline return (NNDR1), which is due in January 2025.

The report recommends that:

• The draft Business Rate baseline figure of £86.150m for 2025/26 be approved, subject to any changes which may result from the provisional Local Government Finance Settlement 2025/26 and the issue of the MHCLG guidance on completion of the 2025/26 Business Rates baseline return (NNDR1).
• The Chief Finance Officer, in consultation with the Cabinet Member for Finance and Growth, be authorised to conclude and agree the final Business Rates baseline return (NNDR1) due on 31 January 2025, should the final information yet to be received from MHCLG change the baseline figure for 2025/26.

Calculation of the 2025-26 Taxbase

The committee was scheduled to receive a report from the Director of Corporate Services requesting approval for the calculation of the 2025-26 Council Tax base.

The report explains:

• The Council Tax base is the number of properties in the borough and is expressed as Band D equivalent properties .
• The tax base is used by the precepting authorities to determine the amount of their precept on the Council. It is also used by the Council to set the level of Council Tax.
• The proposed Council Tax base for 2025/26 is 59,825 Band D equivalent properties. This is an increase of 1,325 properties from the 2024/25 tax base.

The report recommends that the Council Tax base of 59,825 Band D equivalent properties be approved.

Revenue Budget Update 2025/26 to 2027/28

The agenda named the document to be considered, but it was not included in the meeting pack.

Discretionary Fees and Charges 2025/26

The agenda named the document to be considered, but it was not included in the meeting pack.

Capital Programme 2025/26 - 2029/30

The agenda named the document to be considered, but it was not included in the meeting pack.

Work Programme 2024/2025

The committee was scheduled to consider the Work Programme 2024/2025.

The Work Programme is a list of the topics that the committee is scheduled to scrutinise during the year.

GMCA Scrutiny Committee Meeting Minutes

The committee was scheduled to note the minutes of the GMCA Overview & Scrutiny Committee meetings held on 25 September 2024 and 23 October 2024.

Insurance Claims Report 2023/24

The agenda named the document to be considered, but it was not included in the meeting pack.