SCC Financial Briefing Schools Forum 11 July 2018 Martin Young Strategic Finance Manager – Adults, Children and Public Health

Peer Review Main points on SCC services – Adults, Children’s, ECI were all good but the review accentuated the weak financial platform to continue to deliver this and recommended that SCC: Take immediate action to reduce any overspend during 2018/19 Develop a comprehensive set of achievable savings plans as part of its budget setting for 19/20 and equally for its MTFP Address the children’s base budget so that it is challenging but realistic and is in line with the council’s overall budget Ensure there is strong financial accountability in all areas of the organisation supported by appropriate guidance, training and support as well as measures in place to address any non - compliance Ensure members have sufficient financial and performance information on which to make informed decisions and deliver challenge

Somerset’s Shortfall Position 4 year gap of £26.2m (around 9% of our base budget) This takes into account an uplift for Children’s Services - Current plan is that £5m is included in 2019/20 for Children’s Services and a further £2.5m in 2020/21, and a further £2.5m in 2021/22

General Reserve Position Our reserves do fluctuate, go up as well as down – but more recently have dipped

What led to this?

Revenue Support Grant Reductions 2013/14 to 2020/21 (Noting a Budget of £317m)

2017/18 Band D Equivalent for County Councils

The approach 5 Key Lines of Enquiry (KLOEs): KLOE 1 – Tactical Financial Activities KLOE 2 – Review Existing Savings & New Opportunities KLOE 3 – Workforce Review KLOE 4 – Data analysis and insight KLOE 5 – Communications & Key Messages

Important to note Somerset has a proven record of bringing down in-year overspends in recent years. A series of county-wide programmes to reduce spend, monitored and revised on a weekly basis Many of the pressures in the report are not unique to Somerset, and are being seen nationally – particularly in upper tier shire authorities. Somerset is taking action now in order to give itself sufficient headroom to continue on a sustainable footing. Working in partnership with the Local Government Association, particularly focussing on Childrens Services, where both national and regional pressures continue.

Role of Peopletoo – LGA Support Partner Baseline and Benchmarking Demand Analysis End to End Review of Children Services High needs packages Budgeting Passenger Transport Commissioning and Commercialisation Organisational Development

Peopletoo Outcomes Financial Improvement Plan Key Milestones to measure progress Key Risks Key Dependencies