Health and social care budget expected to end year in black

Health chiefs in Argyll and Bute have revealed they expect to end the financial year more than £4 million in the black.

A report has stated the £4.3m end-of-year underspend anticipated by the area’s health and social care partnership (HSCP) is due to centrally held funds covering overspends and additional funding being allocated.

However, the high demand on its learning disability budget continues to be raised as a concern and the report says the partnership will need to request council funding towards it over the coming financial year.

The report was due go before the HSCP’s integration joint board (IJB) at its meeting on Wednesday March 29.

James Gow, the HSCP’s head of finance and transformation, said: “An underspend totalling £4.3m, or 1.3 per cent of budget, is forecast.

“The position has improved as centrally held funds have been allocated to offset overspends and additional funding confirmed. It is anticipated the underspend will be carried forward in general reserves into 2023/24.

“Proportionately, this is small, but nonetheless will help manage the financial challenge in 2023/24 and enable transformation projects to progress.

“Underlying service overspends, inflation on key supplies and services and reliance on agency staffing remain concerns. For social work budgets the main area of concern continues to be high demand and spend on the learning disability budget and agency staff spend.

“The overall position has improved as centrally held budgets have now been allocated and slippage against growth funding has continued.

“The health position has also improved significantly due confirmation of additional non-recurring funding, slippage against investments, vacancies and new medicines funding.”

Mr Gow added: “The forecast has improved further and a relatively small but sizeable favourable variance against available budget is now expected. This means the HSCP will have some general reserves to carry into 2023/24.

“The improved position is due to confirmation of additional funding late in the year, on-going vacancies, slippage on growth and investments along with the allocation of centrally held budgets.

“Vacancy savings and slippage on investments is continuing and this is contributing to the favourable year end position.

“The HSCP will be required to make a case to [Argyll and Bute] Council for the carry forward of general reserves into 2023/24. Some of this may be required to be held to balance the financial position next year.

“This [projected underspend] will enable key projects to proceed in 2023/24 and provides a source of bridging funding to help manage the financial challenge next year.

“Late confirmation of funding has contributed substantially to the improved position but unfortunately much of it is non-recurring in nature which makes it difficult to rely on receiving it again next year for budgeting purposes.”