1. 2011/12 FINANCIAL OUTLOOK April 2011 John Holme, Principal Finance Manager ACS

2. National context Reductions in Government funding for (at least) four successive years Reductions in the number of different grants / restrictions on use Formula Grant allocations have been announced for two years Additional NHS support for social care has also been announced for two years Reviews of funding for local government generally - and adult social care in particular – are due to make recommendations in summer 2011 Public health will transfer to local government in 2013

3. National funding position…

4. …and how that affects Devon CC

5. Devon County Council budget 11-12 Increases £’m Transfers £’m Reductions £’m Budget £’m Change % Children & Young People3.397(0.195)(17.446)95.182-13.0 Adult & Community Services7.826(0.260)(17.719)205.563-4.7 Environment, Economy & Culture 14.267(0.252)(12.784)102.576+1.2 Chief Executive & Corporate Resources 1.0830.707(6.020)39.254-9.7 Capital financing, interest & levies 2.7110066.789+4.2 Contribution to / from reserves4.7940010.444+84.8 Total34.0780(53.969)519.808-3.7 The EEC total includes £12.35m for concessionary fares (transferred from district councils), without which the reduction would be -10%. The contribution to reserves includes funding for redundancies and emergency work on roads

6. Challenges for adult social care Demographic trends such as an ageing population and increased prevalence of disability in the population will add £8m per annum to costs if current patterns of service remain unchanged Across the sector, there are cost pressures (eg fuel, energy) and market capacity dilemmas. This is unsustainable so change is an absolute requirement. 70% of adult social care expenditure is with independent sector providers

7. ACS budget 11-12 Increases £’m Transfers £’m Reductions £’m Budget £’m Change % Funding for capital investment 00(2.500)0-100 Strategic, corporate & preventative 00.817(4.916)14.054-23 Information, learning & arts 00(2.255)9.303-20 Targeted support0.196(0.106)(3.405)15.907-17 Social care7.630(0.961)(4.643)166.299+1 Total 7.826(0.260)(17.719)205.563-4.7 The budget is displayed net of income from client contributions etc.

8. Key features of the budget for adult social care Protect front line care services with a £2m increase in services to older people, Learning Disability and MH Services Our budget in 2011/12 will support an additional 1,221 service users on average care package costs across all client groups This is about 25% of the estimated demographic and cost pressures Service changes and efficiencies must deliver the balance

9. Reductions to social care budgets £’m Reduce management costs, freeze staff pay, change terms & conditions (1.040) Delivery of savings from social care reablement (1.108) Redesign and service restructure of ‘Supported Employment’ services – better links to DWP, other agencies and contractors (0.980) Increase proportion of people receiving care in own home rather than residential care (0.825) Other contractual savings/efficiencies (eg greater use of lower cost services v in-house, redesign of engagement contracts …) (0.690) Personalised care – more innovative (and less costly!) interventions from adult social care (£ early days and being monitored) ?? (4.643)

10. Comparison of spending mix No data available for East Sussex

11. Gross spending on social care

12. Gross spending on adult social care

13. The Director’s Commentary to the 11/12 Budget A key element in our strategy has always been to keep people safe and independent in their own home for as long as possible, and this will remain so. We will seek to accelerate this by increasing the proportion of care spending on community based services. We recognise that the actual delivery of such changes depends on the individual circumstances of people needing care and changes will always follow an assessment of need and support plans agreed with the people receiving care and their carers. This change in the balance of spending will allow resources to be redirected to where they can go furthest and be most effectively applied. We are determined to achieve radical change in the pattern of care in Devon including extra care housing schemes which enable people to live independently knowing that care is easily accessible when needed. Nonetheless the residential and nursing sector will remain an extremely important part of the care that is provided in Devon and the care that we purchase in the foreseeable future. http://www.devon.gov.uk/budget_book_2011_12_final.pdfhttp://www.devon.gov.uk/budget_book_2011_12_final.pdf page44

14. Trends in residential care

15. …and the challenges keep on coming Based on demographic projections Based on the county council’s illustrative cash-limits