“Whilst the Council hopes and expects that it will be able to make the savings identified in those budgets, the budgets for each service area, and for specific heads of expenditure within those areas, are not set in stone. They are, in effect, funding envelopes in relation to which there is flexibility if the savings identified cannot be achieved. The budgets are not an absolute cap on what will be spent by a certain service area, or on specific head of expenditure within that area. ..Indeed, sometimes it transpires that certain savings cannot be made. For example, the monthly budget monitoring report for the month to28 February 2018 recorded that£16,000,000 of the savings identified for the 2017-2018 financial year had proved to be unachievable…and I have already referred to previous overspends in relation to SEND services. …It is important to note that the fact that an overspend occurs in relation to a particular service area does not result in the “tap being turned off” for that service area: the various service area budgets do not operate like a notional bank account whereby, once the allocated sums have been exhausted, no more money can be spent. On the contrary, the relevant service will continue and means of addressing the overspend (such as carrying it forward into the next financial year) will be found.”
“…Ms Little reported to members that local government as a whole was under significant pressure, with increasing demand and significant funding pressures. She noted that councils and public services of the future need to shift towards a more placebased, outcome driven model, working together with residents to improve outcomes, managing demand more effectively, delivering infrastructure and generating new income sources to fund public services. …Ms Little drew to the full Council’s attention the fact that the financial situation it was considering at the time was a very serious one. She acknowledged that the Council had made significant efficiencies and cost reductions, but pointed out that more was required and the Council needed to further develop and implement service transformation on a bigger scale. She further explained that the challenge of managing spending pressures within budgets was as difficult as delivering service cost reductions and it was therefore essential that the Council continued to monitor both savings actions plans and the service pressures very closely throughout the 2018-2019 financial year. …Ms Little concluded by drawing the Council’s attention to the fact that the budget for 2018-2019 had been balanced only by the significant use of one-off funding and that this could not be repeated. The Leader’s report … acknowledged that the savings identified would not necessarily be achieved …explained that a risk rating had therefore been applied to each identified saving reflecting the likelihood of it being achieved… Specifically, in the SEND Budget,£19,001,000 of the£21,001,000 savings identified had been risk rated as “red” or “amber”, meaning that there were severe or significant barriers to them being achieved …It acknowledged that there was a high degree of risk around all of the identified savings being achieved, and explained that in Ms Little’s view the Council was likely to need to draw on its reserves or take some other alternative action … …the Council hopes and expects to achieve the savings, but it would not be unprecedented for it not to do so, or for there to be an overspend on the budget for the 2018-2019 financial year generally, or on the budget for SEND services in particular. Indeed, as I have explained above, the Council has in the past overspent on its budget for SEND services. Such issues were in fact before the Cabinet at the27 March 2018 meeting itself, when the monthly budget monitoring report was considered …”
“The Council’s progress in making savings… 7. Throughout the 2018-2019 financial year work on the four areas of focus… has been ongoing. The Council’s intention is to implement a programme of transformational change in the provision of SEND services in Surrey that will result in an improved service that is provided at lower cost. The programme will involve a focus on early intervention which, as Ms Ferris recognises in her second witness statement, has the potential to produce long-term cost savings whilst providing an improved service to children and their families. 8. The Council therefore remains hopeful that in due course it will be able to make significant savings to its expenditure on SEND services by implementing a programme of transformational changes. However, almost half of the financial years has now passed and, at this point in time, the Council has concluded that it will not be possible for it to implement such a programme of change during the current financial year. It has not been possible to identify sufficiently specific proposals early enough for them to be subject to an appropriate decision making process and then adopted during the current financial year. 9. As a result, for the 2018-2019 financial year the Council has continued, and will continue, to provide SEND services in the same way as it has done previously. No changes to services will be made during the present financial year as a result of any programme of transformational change, whether based upon the “Areas of Focus” in the SSEND Budget for the 2018-2019 financial year, or otherwise. 10. I explained …that the SSEND Budget is not set in stone, that there is always a real possibility of identified savings not being achieved, and that the Council’s recent practice in such circumstances has been to carry forward the overspend into the following year’s budget…as of June 2018 an overspend of£30,000,000 on High Needs Block SEND services was forecast for the 2018-2019 financial year. Despite efforts to manage increasing demands on services and increasing costs, as at31 July 2018 the estimated overspend for the 2018-2019 financial year was around£15,000,000 . A significant part of that estimated overspend is attributable to the fact that the Council has not yet implemented a programme of change based on the “Areas of Focus” identified in the SSEND Budget for the 20182019 financial year during the present financial year. The Council has therefore accepted that when a budget is set for the 2019-2020 financial year, an overspend of£15,000,000 in the SSEND Budget will have to be carried forward unless additional sources of funding for the 2019-2020 financial year are agreed following the Schools Funding Consultation referred to in paragraph 13 below. 11. In the meantime, work remains ongoing to introduce a programme of transformational change for the provision of SEND services in Surrey. However, the introduction of that programme, and any savings that it produces, will not fall to be considered when the Council produces a budget and MTFP for the 2019-2020 and subsequent financial years. 12. I explained …that if and when plans to achieve savings under the “Areas of Focus Heading” were identified, a full decision-making process would be followed in relation to them, including consultation where appropriate, consideration of any relevant considerations, and the completion of any necessary equalities impact assessments. As the Council’s plans to implement a programme of transformational change develops, that process is now underway, but, as I explained above, the focus is now on the 2019-2020 financial year. 13. The Council’s current transformation plan and the accompanying funding proposals are described in the “SEND Transformation Programme” and “Schools Funding” sections of a School’s Funding Consultation paper... That paper was sent to Surrey Head teachers and governors on5 September 2018 . Consultees have been asked to provide their feedback on the plans by25 September 2018 . 14. The consultation paper explains that it forms an early part of a wider consultation process, which will include consultation with children and young people and their families, and which will inform the Cabinet’s decision making in relation to the next MTFP. That process will involve a wide-ranging consultation with a range of different stakeholders, including children with SEND and their parents, focusing not only on financial priorities, but on the future provision of SEND services in Surrey as a whole. The Council’s current intention is to begin a wider consultation and engagement on the proposals for a programme of transformational change towards the end of September/early October. 15. Part of the process will also include consultation on the draft MTFP for the 2019-2022 financial years (both in relation to the SSEND Budget and other areas of the Council’s expenditure). That consultation is likely to take place towards the end of November/early December and will form part of the Council’s “Vision for Surrey in 2030” programme…”
“A local authority shall keep under review the arrangements made by them for special educational provision and, in doing so, shall, to the extent necessary, consult the funding authority and the governing bodies of county, voluntary, maintained special and grant-maintained schools in their area.”
“The local authority must review its educational, training and social care provision, consulting a range of partners, including children and young people with SEN or disabilities and their parents and carers. This consultation will inform the development and review of the Local Offer (Section 27 of the Children and Families Act 2014 ).”
“Local authorities must review their provision, taking into consideration the experiences of children, young people and families (including through representative groups such as Parent Carer Forums), voluntary and community sector providers and local Healthwatch. Information from such reviews will contribute to future arrangements and the effectiveness of local joint working.”
“Keeping the Local Offer under review state that: “4.18 The requirement on local authorities to publish comments on their Local Offer and their response to those comments is relevant to their duty to keep under review the educational and training provision and social care provision for children and young people with SEN or disabilities and their role in contributing, with their partner CCGs, to Joint Strategic Needs Assessments and the development of local Health and Wellbeing Strategies (see chapter 3). 4.19 Local authorities must keep their educational and training provision and social care provision under review and this includes the sufficiency of that provision. When considering any reorganisation of SEN provision decision makers must make clear how they are satisfied that the proposed alternative arrangements are likely to lead to improvements in the standard, quality and/or range of educational provision for children with SEN (School organisation (maintained schools), Annex B: Guidance for Decision-makers, DfE 2014 – see the References section under Chapter 4 for a link). 4.20 Local authorities should link reviews of education, health and social care provision to the development and review of their Local Offer and the action they intend to take in response to comments. This will help to identify gaps in provision and ensure that the Local Offer is responsive to the needs of local children and young people and their families. At a strategic level local authorities should share what they have learned from the comments they receive with local Health and Wellbeing Boards where appropriate, to help inform the development of Health and Wellbeing Strategies and the future provision of services for children and young people with or without EHC plans.”