The Overview & Scrutiny Committee of Enfield Council met on Monday 15 January 2024 to discuss the Council's Medium Term Financial Plan and the ICB Clinical Commissioning update. The committee agreed to defer the ICB Clinical Commissioning update to a future meeting and noted the Work Programme for 2023/24.

Medium Term Financial Plan 2024/25 to 2028/29

The committee considered the savings and income proposals, as well as the funding and spending assumptions for the Council's Medium Term Financial Plan (MTFP) for 2024/25 to 2028/29. Councillor Ergin Erbil, Deputy Leader of the Council, introduced the item, highlighting the significant financial pressures faced by the Council due to reductions in central government funding, inflation, and the cost of living crisis. He confirmed that the budget for 2024/25 has been balanced, contingent on proposed savings, a Council Tax increase, a review of the Council Tax Support Scheme, and grant funding for Adult Social Care.

Councillor Tim Leaver, Cabinet Member for Finance and Procurement, elaborated on the budget and economic context, explaining that the January MTFP Update Report details how a provisionally balanced budget has been set. This includes information on funding changes announced in the Chancellor's Autumn Statement and the 2024/25 Provisional Local Government Finance Settlement. The report also updates funding and spending assumptions from the November MTFP update and introduces further savings and income proposals. The Council is committed to a resilient and sustainable budget, with scrutiny of savings, income generation, and underlying assumptions being crucial in the current challenging financial environment.

Fay Hammond, Executive Director of Resources, provided further context on the financial strategy, savings, investments, departmental budgets, and budget risks. Members of the committee raised detailed questions, receiving responses from councillors and officers.

Regarding insourcing of services, Councillor Erbil stated it was good practice and that more services should be insourced where funding allows, prioritising staff and health and safety over profit. Councillor Leaver clarified that insourcing had saved money and that while the Council would not stop insourcing, there might be opportunities to review it for best practice.

On the topic of debt levels, Councillor Erbil assured that the Council's Capital Financing is affordable, with the Capital Strategy signed off in November being sound. He explained that debt is incurred to invest in key services such as road maintenance, housing, decarbonising council buildings, and improving parks and green spaces. Councillor Leaver added that most of this debt is at low interest rates, and the primary issue is a lack of fair funding from the government, not the Council's financing or investment.

Concerns were raised about the provisional Local Government Finance Settlement, with it being stated that Enfield is not fairly funded. It was noted that the government provides only 8% of the overall budget, making Enfield the second worst-funded local authority in London and seventh worst nationally.

The impact of cutting the Council Tax Support Scheme (CTS), which assists over 30,000 low-income households, was discussed. The Deputy Leader acknowledged the hardship faced by residents due to the cost of living crisis, with £1.4 million set aside in hardship funds and £1 million in council tax hardship as part of the new CTS. Enfield Council had previously offered one of the most generous CTS schemes in London, but due to budget pressures, it has been brought in line with the London average. The new scheme will still provide a discount to approximately one-third of households.

The Executive Director of Resources detailed the process for changes to Council Tax charges, including an Equality Impact Assessment (EQIA) and ongoing consultation. Letters have been sent to all 29,000 residents directly affected by the CTS changes, with 63 residents having made contact for one-to-one meetings. Engagement has occurred with specific client groups, and an easy-read version of the consultation is available online. Advertisements have been placed on social media and in Greek and Turkish newspapers. An exceptional hardship scheme of £1.5 million is being established, along with a dedicated support team.

A review of the Council's traded services fees and charges for 2024/25 has been conducted, aiming to ensure charges cover service delivery costs and maximise income. Charges are generally increasing by 9%, based on the July 2023 RPI, with some exceptions.

Regarding HR and Workforce Implications, any proposal impacting posts or services will require consultation with trade unions and staff.

The Director of Housing and Regeneration identified homelessness as the most significant pressure, largely due to a lack of affordable temporary accommodation and reliance on expensive hotel stays. Mitigation strategies include bringing accommodation under Council ownership to reduce exposure to market volatility. Enfield awaits notification of its allocation from the government's £120 million homelessness prevention grant.

The Director of Health and Adult Social Care highlighted the significant impact of the pandemic on the service, with demand rapidly increasing. Unlike the NHS, adult social care is means-tested, and decisions are being made based on cost-effectiveness, working with NHS partners. Deprivation levels, NHS pressures, and age profiles within the borough also heavily influence the service.

The Executive Director of People addressed the Social Worker Apprenticeship scheme, noting that the Adult Social Worker Apprenticeship scheme has been paused as vacant posts can be filled directly. The Children's Social Worker Apprenticeship scheme has been deferred, leading to increased pressure on children's social workers. However, a government grant of approximately £180,000 has been made available to local authorities to fund apprenticeships in this area.

The Executive Director of Environment and Communities is working with teams to understand high-demand services and monitor projects and initiatives within the budget paper, ensuring adequate resources for delivery.

The Executive Director of Resources confirmed there is no generic recruitment freeze, but Executive Directors must demonstrate the necessity of any recruitment.

The Deputy Leader explained that the Green Waste subscription fee is increasing to cover inflationary costs and maintain the service, with residents also able to use Barrowell Green Recycling Centre and the North London Waste Authority Eco Park. Flytipping and littering remain Council priorities, requiring adequate funding for street scene improvements and recycling rates.

The Executive Director of Finance concluded by stating that the next step is to await the final Local Government Finance Settlement figure by 31 January 2024, while ongoing due diligence of cost pressures, savings, and income proposals continues.

The committee AGREED to consider the savings and income proposals and funding and spending assumptions contained in the January Medium Term Financial Plan 2024/25 to 2028/29, and to report the outcome of their deliberations to the Council on 22 February 2024.

ICB Clinical Commissioning - Update

The committee AGREED to defer the ICB Clinical Commissioning Update report to the business meeting scheduled for Monday 4 March 2024.

Work Programme 2023/24

The Overview & Scrutiny Committee Work Programme for 2023/24 was NOTED.

Dates of Future Meetings

It was NOTED that the next business meeting of the Overview & Scrutiny Committee would take place on Tuesday 6 February 2024 at 7:00 pm in the Conference Room, Civic Centre.