Agenda item

Cabinet Member: Cabinet Member for Children, Young People & Learning, Councillor Alisa Flemming

Officer: Interim Executive Director Children, Families & Education, Debbie Jones

Key decision: no

Reason for late dispatch:  The Council was awaiting confirmation of the outcome of current negotiations with the relevant Government Departments.

The Leader of the Council delegated authority to the Cabinet to make the following decisions:

RESOLVED: To

1.    Note the actions taken since the June 2021 Cabinet meeting including the revised forecast budget gap of £2.357m in 2021-22 due to the disproportionate number of unaccompanied children and care leavers in Croydon’s care, rising to £7.149m over the MTFS period, 2021-24.

2.    Note the concerns raised by statutory Director of Children’s Services, endorsed by the Improvement and Assurance Panel and the Chair of the Children’s Continuous Improvement Board, of the damaging impact of further savings on the Council’s children’s services in the light of the existing MTFSsavings plans across all council services.

3.    Note the advice from the statutory Director of Children’s Services on the safety of children’s services if additional in-year savings are required to be made and instruct officers to draw up legal advice to Cabinet on all options to limit the council’s exposure to financial risk.

4.    As the council is still to hear from HM Government in regard to additionalfunding and the fact that the pre-election period begins on 30th August 2021, cabinet delegate authority to the Leader of the Council, the Cabinet Member for Children, Young People and Learning, the Chief Executive and the interim Executive Director, Children, Families and Education to take the necessary steps to address the in-year cost pressures set out in Table 1 of the report.

5.    Note that the Leader of the Council will write to the relevant Secretaries of State to underline the strength of Croydon’s case for additional support due to its exceptional circumstances and to request an urgent meeting.

The Leader of the Council (Councillor Hamida Ali) apologised that the report was published following the statutory deadline on 13 August 2021 due to the council waiting for a response from the government, which was unfortunately not received.

The Leader thanked officers, in particular Kerry Crichlow, and Margaret Lee from the Improvement & Assurance Panel for all their work during the discussions with government departments. Work had been undertaken to demonstrate that there was an unfunded budget gap which Croydon had borne unlike any other council in the country. It was noted that the view was held by not just Croydon Council, but also the Panel and the Children’s Improvement Board.

That the council had not heard from government was for the Leader disappointing, despite the consensus from all involved in the council. It was stated that the council was at risk of further government intervention, should it overspend and break the terms of the capitalisation direction. Additionally there remained a risk to children services as a whole and the support which could be provided to all children.

The Leader thanked colleagues from across London for their collaboration and commitment and those from outside of London who had provided support to Croydon. Members were informed that the Leader had written to the relevant Secretaries of State to ensure they were clear on the position facing Croydon and that she supported the work of officers in the discussions which had taken place over a number of months.

The Leader noted the events which were taking place in Afghanistan and informed Members that she had asked officers to ensure they were doing all they realistically could, as part of the national effort to support families who had risked so much.

The Cabinet Member for Children, Young People & Learning (Councillor Alisa Flemming) reflected on the impact of recent events on the people of Afghanistan and the continued support, of not just the borough but nationally, to ensure the safety of those at the point of need.

It was stated that the report gave an update following the report taken to Cabinet in June 2021 and the council’s continued request for fair funding. Assurances had been sought that exceptional costs would be funded to cover the costs of caring for the nation’s children. Whilst a decision had not been received from government, the Cabinet Member stated that she remained hopeful that the council would receive the appropriate funding as the funding gap was at £2.3 million but would rise to £7 million over the following three years. Given the council’s financial position, the Cabinet Member concluded that the council could no longer afford to meet the pressure without appropriate funding.

Councillor Robert Ward highlighted section 2.2 of the report which noted that the Children & Young People Scrutiny Sub-Committee, along with others, had worked through the model of assumptions and it was felt that this had resulted in more accurate and robust figures. It was sated that Croydon carried a disproportionate burden and the effectiveness of the revised national transfer scheme was also highlighted. Councillor Ward informed Members that the Scrutiny Sub-Committee supported the monthly monitoring and thanked officers for their work.

The Shadow Cabinet Member for Children, Young People & Learning (Councillor Maria Gatland) noted that Croydon had always experienced a disproportionality high level of UASC due to the location of Lunar House in the borough and the Opposition group had always supported the call for fair funding. It was suggested that the Opposition would continue to support the request to government, but stated that there needed to be confidence in the data provided. The Shadow Cabinet Member stated that previously the funding gap had been presented as being near £7 million. Officers and the Scrutiny Sub-Committee were thanked for their work to reach a point where the figures could be agreed by all.

Concerns were raised that children services had been cut and many staff were leaving the council particularly in light of the need to ensure all vulnerable children were safeguarded and protected. In light of the concerns raised, the Shadow Cabinet Member queried when Members would receive assurance that the figures were accurate and what would happen should the council be unable to support any further UASC.

In response, the Leader reflected that it was reassuring that there remained a cross party consensus to the basic principle for the need for fair funding. In terms of being unable to support UASC, the Leader stated that there had been constructive conversations with government and the council hoped a response would be received.

The Cabinet Member thanked the Shadow Cabinet Member for the acknowledgement that Croydon faced a disproportionate impact and that a resolution had been sought for some time. It was however, stressed that the council was at a point where it could no longer support the position it was in and a decision from government was required. In terms of questions on the impact if Croydon stopped taking in UASC, the Cabinet Member stressed that there would be human costs to such a decision.

Members were informed that the paper set out the financial position which had been reviewed by the Improvement & Assurance Panel, the Children’s Improvement Board and government departments, however it was noted that the figures fluctuated. It was noted by the Cabinet Member that at that point the council was experiencing a reduction, but it was anticipated figures would rise as more young people arrived at Lunar House.

The Cabinet Member stressed that there was a need for real urgency as the financial pressures could not remain as they were, as had been outlined in the report. She, however, welcomed the ongoing negotiations and reiterated that she was hopeful that a resolution could be found which was the best solution for Croydon. It was highlighted that the borough had a rich diversity and the council wished to ensure the safety of all children, however it was the duty of the council to ensure the delivery of good and safe services for children. 

The Interim Executive Director for Children, Families & Education (Debbie Jones) advised that her comments as the statutory Director of Children Services were included in the report. It was noted that it was unusual for such comments to be made but they reflected the seriousness of the position facing Croydon, which Members were informed were acknowledged by government. Whilst the situation was acknowledged, the Interim Executive Director advised Members that the council required the pressures to be alleviated.

Members were advised that the figures contained at table 1 of the report reflected a moving population; both in terms of children moving to being Care Leavers at the age of 18 and also the significant reduction in UASC arriving in Croydon which had been witnessed during the pandemic. The Interim Executive Director advised, however, that increased pressure had been experienced in Kent which would be reflected in London in due course.

The Interim Executive Director advised Members that Croydon had received considerable support from London boroughs which had helped the situation in recent months. Additionally, help had been received from government departments in terms of the assessment team.

In response to concerns raised in relation to the figures set out in the report, the Interim Executive Director confirmed that they had been reviewed line by line and everyone was assured that the budget pressure was £2.3 million at that moment in time. It was further highlighted that Croydon, along with other children services departments were facing budget pressures in relation to the impact experienced by the end of the pandemic and increased demand.

Members were advised by the Interim Executive Director that at section 5 of the report it was stated that if in year savings were required, there would be a reduction in agency staffing and vacancies would not be filled. The Interim Executive Director advised that would impact on the delivery of children services and as the statutory director she would not recommend such a course of action.

It was noted by the Shadow Cabinet Member for Homes (Councillor Lynne Hale) that the latest deep dive had shown that significant savings could be made and queried how the council would ensure ongoing pressures were maintained and that additional costs were not incurred. In response, the Cabinet Member stated that the council could not ensure it controlled budget pressures unless the national transfer scheme became mandatory. At present, it was stressed, that the council could not guarantee how many young people would present at Lunar House which Croydon would need to take responsibility for. Given the situation, the Cabinet Member concluded the council needed appropriate funding until the overall situation of the care of the nation’s children was addressed.

The Leader noted that the report set out that there was consensus that the figures were accurate. Whilst a mandatory scheme would resolve the situation, the Leader reflected that it was not a position the government appeared to want to take, as such financial alleviation was the only option which would make a difference.

The Leader of the Council delegated authority to the Cabinet to make the following decisions:

RESOLVED: To

1.     Note the actions taken since the June 2021 Cabinet meeting including the revised forecast budget gap of £2.357m in 2021-22 due to the disproportionate number of unaccompanied children and care leavers in Croydon’s care, rising to £7.149m over the MTFS period, 2021-24.

2.     Note the concerns raised by statutory Director of Children’s Services, endorsed by the Improvement and Assurance Panel and the Chair of the Children’s Continuous Improvement Board, of the damaging impact of further savings on the Council’s children’s services in the light of the existing MTFSsavings plans across all council services.

3.     Note the advice from the statutory Director of Children’s Services on the safety of children’s services if additional in-year savings are required to be made and instruct officers to draw up legal advice to Cabinet on all options to limit the council’s exposure to financial risk.

4.     As the council is still to hear from HM Government in regard to additionalfunding and the fact that the pre-election period begins on 30th August 2021, cabinet delegate authority to the Leader of the Council, the Cabinet Member for Children, Young People and Learning, the Chief Executive and the interim Executive Director, Children, Families and Education to take the necessary steps to address the in-year cost pressures set out in Table 1 of the report.

5.     Note that the Leader of the Council will write to the relevant Secretaries of State to underline the strength of Croydon’s case for additional support due to its exceptional circumstances and to request an urgent meeting.