Hampshire County Council


Item 4

24 March 2003

Budget 2003/04 - business plans and performance targets

Report of the County Treasurer

Contact: Jon Pittam, ext 7400

1. Summary

1.1 The report sets out the required business plans and performance targets for the additional £10.5m set aside in the 2003/04 budget for delayed discharges of older people from hospitals, for domiciliary care of older people and for repairs of local roads and footways. Delay in the introduction of fines for delayed discharges from hospital means that the detailed business plan for this additional budget will be presented to a later Cabinet meeting.

1.2 The following decision is sought:

2. Reason

2.1 The Council needs to link its budget additions more closely with performance management.

3. Other options considered and rejected

3.1 None

4. Conflicts of interest declared by the decision maker or a member or officer consulted

4.1 Not applicable.

5. Dispensation granted by the Standards Committee

5.1 Not applicable.

6. Reasons for the matter being dealt with if urgent

6.1 Not applicable.

Approved by: (signature) Date: (date of decision)

Councillor T K Thornber


Hampshire County Council



Item 4


24 March 2003


Budget 2003/04 - business plans and performance targets


Report of the County Treasurer

Contact: Jon Pittam, ext 7400

1. Introduction

1.1 The Cabinet at its meeting on 10 February 2003 resolved that a report be brought to its next meeting on the business plans for the use of resources of:

1.2 The Cabinet also agreed that progress should be reviewed during 2003/04 and that performance outcomes be reviewed in a year's time before the 2004/05 budget is agreed.

1.3 The business plans and expected performance improvements for domiciliary care and local roads and footways are appended. This report summarises the issues arising.

2. Background

2.1 As part of the process of linking budgets more closely with performance management, proposals for additional spending should indicate measurable improvements in performance anticipated and any significant savings proposals should include a plan of how the proposal will be implemented.

2.2 This is a key feature of future assessment by the Audit Commission in updating the Comprehensive Performance Assessment. It was therefore agreed as part of the budget process that all Executive Members should review their plans and monitor achievement against them during 2003/04 for all the budget increases above the base budget, especially those met by redeployment of resources, in addition to the business plans to be brought to Cabinet for the three budgets set out in paragraph 1.1.

3. Social Services

3.1 £2m was set aside by Cabinet on 23 December 2003 in an earmarked reserve to provide resources to assist Social Services meet targets for the reduction of delayed discharges from hospitals (bed blocking) for the rest of 2002/03 and into 2003/04 prior to the introduction of fines by the Government for exceeding the targets.

3.2 It was agreed that the Leader would approve the release of resources from this reserve to match the profiled business plan to achieve the targets on the advice of the Chief Executive, County Treasurer and Director of Social Services.

3.3 No draw down from the reserve has been made, but it is estimated that about £0.7m was committed during January and most will be committed by the end of the year and into 2003/04. A report on achievement of planned reductions towards the target set is required for the Leader's next Executive Member decision meeting.

3.4 At present the future of the delayed discharges bill is unclear following its defeat in the House of Lords. The Lords amended the bill with a delay of 12 months. The Government appears to have suggested delaying the bill by six months as a compromise. The Department of Health (DoH) has indicated that councils will only receive the £100m set aside nationally for funding, once the bill has been passed, on a pro-rata basis for 2003/04.

3.5 This Council's budget included £2m as its anticipated share of the grant support as well as £3.5m set aside in the central contingency.

3.6 Social Services will be unable to commit spending against the £2m grant until it is clear how much will be available in 2003/04.

3.7 The Leader in his budget speech said:

3.8 In these circumstances the Leader may wish to delay the release of the £3.5m contingency prior to a firm timescale being established for the introduction of fines. The £2m already set aside in December 2002 could continue to meet urgent bed blocking problems but not to balance other parts of the Social Services budget for 2002/03.

3.9 A sum of £3.5m was set aside in the 2003/04 budget for domiciliary care for older people to meet performance targets. It was anticipated that the sum would be allocated to Social Services at the start of 2003/04 specifically for this purpose, subject to the appropriate business plan to be measured against relevant performance targets.

3.10 The Leader in his budget speech said:

3.11 The national target included in the Council's Local Public Service Agreement (PSA) is:

3.12 The indicators by which performance will be measured under the PSA are:


PAF C28:

the number of households receiving more than 10 contact hours per week and 6 or more visits during a survey week per 1,000 head of population aged 65 and over



PAF D41:

the number of people aged 75 and over with a delayed discharge from an acute hospital bed as a percentage of the numbers of people aged 75 or over occupying an acute hospital bed



PAF C26:

supported admissions of older people to permanent residential and nursing care per 10,000 population aged 65 or over.

3.13 The allocation of the total £7m, but in the first instance the £3.5m for domiciliary care, could be judged against the improvements in performance against these indicators, as well as avoidance of fines for delayed discharges. This performance assessment will also need to consider:

4. Environment

4.1 £3.5m was set aside to sustain repairs of local roads and footways to be measured against a business plan to improve performance outcomes.

4.2 The Leader's budget speech referred to:

4.3 The issues for the Cabinet to consider here include:

5. Conclusion

5.1 The business plans and performance outcomes proposed for approval are attached:

Section 100 D - Local Government Act 1972 - background papers

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

NB the list excludes:

Published works.

Documents which disclose exempt or confidential information as defined in the Act.