Agenda item

To consider a report of the Cabinet Member for Health and Adult Social Care.

Within this report and appendix we outline our strategic approach in responding to the review of the medium-term financial plan. This follows on from the report presented at the Cabinet meeting on the 28th September 2022. Whilst Stockport Council continues to develop opportunities for further enhancing the lives of our residents, we are also in a period of unprecedented uncertainty. Factors include the high levels of price inflation, interest rate changes, and uncertainty around volatile energy prices certainly beyond 6

months. In addition we are still without any means to accurately forecast the Government Settlement, Government assistance even via a levy on adult social care and wage settlements. Furthermore there are global issues, such as the war in Ukraine and energy supply generally, which are totally unpredictable.

This report outlines the budget proposals being considered by the Cabinet to address financial and demand challenges, enable longer term transformation, and ensure the delivery of shared strategic partnership ambitions.

The Scrutiny Committee is invited to comment on the report and the proposals presented within the report relevant to the remit of this committee.

Officer contact: Holly Rae on 0161 474 3014 or email: holly.rae@stockport.gov.uk

The Corporate Director People and Integration submitted a report of the Cabinet Member for Health and Adult Social Care (copies of which had been circulated) outlining the budget proposals being considered by the Cabinet to address financial and demand challenges, enable longer term transformation, and ensure the delivery of shared strategic partnership ambitions.

The following comments were made/ issues raised:-

·         It was noted that there was a large amount of uncertainty around Government funding and queried whether the financial plan was based on the unknown funding position.

·         In response, it was stated that there was uncertainty nationally about the funding that local authorities were due to receive and in addition, from an adult social care perspective there was a level of uncertainty around grant funding and non-recurrent funding. It was recognised that the position of the medium-term financial plan was unprecedented with the levels of inflation and trying to interpret what this would be in the short, medium and long term had been a challenge. The financial plan would continue to be modified as the analysis of inflation over the next 12 to 18 months was received. The current report was based of assumptions around inflation and the overall settlement; however this was caveated by the uncertainty with regard to the non-recurrent grant funding.

·         With regard to inflation, it was queried how the council was approaching an estimation of inflation.

·         In response, it was reported that the council use CPI as one indicator and other internal and external factors to make a judgement on the inflationary uplift. Over the last 6 to 12 months, there had been a significant increase in the assessment in regard to predicted inflation to around 8% which had impacted on the gap between the funding and income that was is received and anticipated expenditure. The financial plans were working with this prediction to set a balanced budget using a combination of saving proposals, taxation, reserves and other means to set the budget.

·         It was asked whether the council anticipated this 8% inflationary uplift would increase.

·         In response, Members were advised that the 8% figure was purely on the cash limit that the council had for services, of which adult social care was a significant proportion of that. In addition, the financial plan sets aside specific finite funding linked to national and real living wage increases and noted the grant funding linked to fair cost of care which was above the 8% figure.

·         In relation to progressing our ambitions for neighbourhoods, it was queried whether this was being actively pursued within this budget.

·         In response, Members were given reassurance that the council was determined to continue to progress working with residents in neighbourhoods to develop an effective, preventative offer.

·         Members requested access to the results of the fairer charging policy equality impact assessment.

·         In response to a question around the steps being taken to mitigate as much job losses as possible, Members were advised that the approach to the financial challenges was with Stockport residents at the heart of decision making to mitigate the impact on residents, however the council had to keep an open mind in order to secure a balanced budget which may include the loss of colleagues to meet this.

·         In relation to the changing nature of the financial plan predicts, it was queried whether there were plans to consult with scrutiny more frequently than in previous years.

·         In response, it was stated that there was a schedule in place to report to scrutiny and additional detail would be provided to Committee by February.

·         It was noted that the impact of inflation would be impacting on residents and clients both known and unknown to the council. It was queried whether estimations were being calculated on the potential increase in demand on adult social care.

·         In response, it was stated that demand management was high on the services agenda. Adult social care was based on eligibility funder the Care Act and if you were able to pay, you should pay. With the pressures, it was calculated differently when individuals lived in their own home compared to living in residential care, however consideration was being given to residents individual finances to identify specific people at risk and prevention work was available for residents to receive welfare and benefit advice.

·         In light of the Edenfield Centre news, it was asked what the council do to keep residents safe and whether the budget proposals put residents safety at risk.

·         In response, it was reported that the Edenfield Centre news had resulted in a fresh look at the clarity in terms of the practice and governance arrangements to ensure the council were clear about how Stockport residents were protected and received quality of care. The council were satisfied with the review of the immediate issues and had worked closely with other Greater Manchester authorities for the people who were living at the Edenfield Centre. It was noted that the current major adult social care reform included a series of safeguarding adults responsibilities and the council through the transformation programme were reviewing the pathway into safeguarding adults, how it worked with partner organisations and using service user experiences.

·         Clarification was sought around the Fairer Charging Policy and the maximum assessed charge.

·         In response, it was stated that when calculating charging, if you were able to pay, you should pay and that was based on a number of factors. Within the Fairer Charging Policy, there was a maximum assessed charge in place which was £413 irrespective of the true cost. Whilst in Stockport there would be a cohort of people because of their financial assets funding the whole cost of their care, the Fairer Charging Policy was around the residents who were financially assessed and had to make some contribution, however set at a limit. It was reported that there was a proposal to review the value of the limit in terms of the cost of care.

·         It was queried if it was possible to identify which residents would be impacted the most by the proposed cuts.

·         In response, Members were advised that the council were working through the finer detail and Equality Impact Assessments particularly around the Fairer Charging Policy and how many people this would impact. However, from an adult social care perspective this would be people who were eligible under the Care Act which includes people with disabilities and older residents with complex needs.

RESOLVED – That the report be noted.