Agenda item

Report of the Director of Finance

The Board received a report which detailed Harrow Council’s Draft Revenue Budget 2018/19 to 2020/21 and Medium Term Financial Strategy 2018/19 to 2020/21 as reported to the Council’s Cabinet on 7 December 2017.  It was noted that the budget and MFTS would return to Cabinet in February 2018 for final approval and recommendation to Council.

An officer introduced the report and drew particular attention to the key points relevant to the Health and Wellbeing Board including the continued financial challenges to the health and social care sector.  Whilst a balanced budget was forecast, significant challenge was anticipated in the next few years with a budget gap of approximately £27m over the two years 2019/20 and 2020/21.  As detailed in the report, the government grant had reduced from £52.1m in 2013/14 to £1.5m in 2019.20 which, together with demographic pressures, underpinned the budget process.  The budget process refresh process identified further savings of £2m were planned for 2018/19 including £1,242,000 in adult services and £91,000 in Children and Family Services.  The draft budget assumed a 1.99% Council Tax increase and 1.5% social care precept.

Members were informed of relevant growth of £2m in Children’s Services, £5.8m in adult care and £275,000 in the public health budget.  The draft Public Health commissioning intention expenditure(detailed in the appendix)  included an increase in costs associated with health checks, the re?instatement of three posts and a reduction in the savings associated with the ongoing drug and alcohol services.  The savings for Project Infinity had been proposed for reversal and income generated would be re-instated into the budget as and when realised.  The Better Care Fund arrangements had been built into the budget.

In response to a question, the Board was advised that a two year Better Care Fund programme had been agreed between the Council and CCG and would be reviewed mid year and that the additional Improved BCF (IBCF) resources to the Council had been used to manage social care cost pressures and growth.

The CCG welcomed the reduction in the savings for drug and alcohol services and health checks.

RESOLVED:  That the report be noted.