Elected Member Briefing Note 2024, No. 88
About this Briefing Note
Report by: Donna Mitchell, Chief Finance Officer/ Head of Performance and Governance
Date: 1 October 2024
Subject: Financial Recovery Plan
Responsible Officer: Jacquie Pepper, Chief Officer/ Director (Health and Social Care)
Purpose
Details
The Perth and Kinross Integration Joint Board (IJB) is set to review a comprehensive Financial Recovery Plan designed to deliver a balanced budget whilst protecting the delivery of quality services to those most in need.
The challenges faced locally are similar to those being experienced by Integration Joint Boards across Scotland. Increasing demand for health and social care services comes against a backdrop of increasing costs to already stretched public sector budgets.
An update to the IJB's Audit and Performance Committee last month showed a projected overspend of almost £5m in the current year. The Financial Recovery Plan, which will be considered this week, sets out a series of actions to address this and achieve financial balance whilst maintaining services.
The Financial Recovery Plan outlines measures for prudent financial management aimed at reducing expenditure for the remainder of the 2024/25 financial year.
Key challenges which are driving the overspend include financial pressures from GP prescribing, care at home services, out-of-hours GP services, older people care home placements, and senior medical cover.
The plan sets out additional actions to add to the £5.518m of savings already reported to the IJB in September.
The key actions within the recovery plan are:
- Increased scrutiny of resource allocation and streamlined processes are expected to boost efficiency, potentially reducing costs by £0.270m.
- Careful review and consideration of all workforce vacancies, avoiding or delaying the filling of non-essential roles, aiming to save £0.230m
- Review and repurpose earmarked reserves, expected to save £0.450m.
- Request for Angus Integration Joint Board to implement an in year Financial Recovery Plan for Out of Hours GP services, with the expenditure reduction share for Perth and Kinross expected to be £0.350m.
Regular monitoring and reporting will continue throughout the financial year, maximising collaboration with NHS Tayside and Perth and Kinross Council, while minimising detrimental consequences.
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