Hampshire County Council
	Executive Lead Member for Children's Services (Education)		Item 3
	23 January 2008
	Children and Young People Select Committee		Item
	23 January 2008
	Revenue Budget 2008/09, 2009/10 and 2010/11
	Report of the County Treasurer and the Director of Children's Services

Contact: Gordon Shinn, (01962) 847545; [email protected]

1 Summary

1.1 This report sets out the proposed Children's Services revenue budget for 2008/09, a provisional budget for 2009/10 and 2010/11 and recommends a revised budget for 2007/08. This report has been prepared in consultation with the Executive Lead Member and will be reviewed by the Children and Young People Select Committee. It will be reported to the Leader and Cabinet on 8 February 2008 to make final recommendations to County Council on 21 February 2008.

1.2 The budget proposals contained in this report are developed from the Corporate Business Plan, the Children and Young People's Plan and the service priorities. These have been developed to support the priorities of the Corporate Strategy.

Recommendations

To approve for submission to the Leader and Cabinet:

1 The revised budget for 2007/08 totalling £881.815m (as set out in appendices 1 and 2)

2 The base budget for 2008/09 totalling £901.540m (as set out in Appendix 3)

3 The proposals for growth totalling £14.439m (as set out in Appendix 4)

4 The proposals for redeployment of resources totalling £2.898m in 2008/09 (as set out in Appendix 4)

5 The proposals for efficiency improvements totalling £1.572m (1.1% of the base budget) in 2008/09 (as set out in Appendix 5)

6 The annual review of income and charges (as set out in Appendix 6)

7 The summarised trading accounts of business units (as set out in Appendix 7)

8 The detailed budget for 2008/09 (as set out in Appendix 8)

9 The workforce implications of the proposed budget for 2008/09 (as set out in Appendix 10)

10 The provisional total base budget for 2009/10 of £939.769m and for 2010/11 of £976.321m (as set out in Appendix 11)

11 The request to consider a one off invest to save allocation for in-house foster care of £1.4m in 2008/09 to be repaid in 2010/11. This enables additional investment in the in-house foster care service to be repaid within the three year budget period, partly by reducing Independent Foster Provider placements.

1 Executive Summary

1.1 This report starts by addressing the requirements from Cabinet of the Executive Member, demonstrating achievement of the budget guidelines as set by Cabinet.

1.2 The revised budget position is then set out, building on regular monitoring reports during this year to the Executive Lead Member. The forecast outturn for the service is an underspend of £1,173,000 on the Schools Budget and a balanced budget on non-schools budgets after applying one-off funding totalling £624,000. Underlying budget pressures for the forward budget relate to Home to School Transport and Children in Care. In both these areas the service has achieved real improvements in managing service delivery and costs. The report sets out the efficiency improvements delivered to date and planned for the future in both these areas and considers the forward budget requirements.

1.3 Significant progress on the Change for Children agenda has been made during the past two year budget period with:

· Positive assessments on the service from both the Joint Area Review (JAR) and the Annual Performance Assessment (APA)

· Locality teams rolling out the Common Assessment Framework (CAF) across the county, funding in part through a combined budget with Schools

· The Children's Centres programme on track to meet Government targets for centres and coverage for service delivery

· The Children in Care commissioning strategy which has delivered a focus on costs and outcomes for Children in Care and placements along with the development of early intervention services to prevent children entering care.

1.4 The overall budget settlement for 2008 - 2011 is then considered. For the Schools Budget this is the first of a three year budget. The Schools Budget, through Dedicated Schools Grant (DSG), has increased well above the national minimum per pupil increases, though at a markedly lower rate of increase than in the previous multi-year budget period. For the non schools budgets the impacts of the redirection for the new Hantsdirect Contact centre is set against the County Council's policy to continue to provide additional funding above corporate inflation assumptions for Children's Social Care, with an increase in each year of £1.2m for the service.

1.5 The separate elements of the Children's Service budget are then explored in more detail. Budget pressures and priorities have been founded around the corporate priorities. For the Schools Budget key areas for delivery have been increasing funding to schools for deprived pupils and children looked after, aimed at helping to address the attainment gap for children in Hampshire from areas of deprivation, and on the costs of Pay and Benefits step increases. For the non schools budget the budget is seeking to achieve step increases in the outcomes for Children in Care, addressing the issues of performance on placement stability for Children in Care and of value for money in placement provision and cost. An invest to save proposal is made for the in-house foster care service aimed at increasing the capacity of the in-house service both in terms of numbers and skills, and a further investment in the social care workforce to increase the numbers of social workers and therefore the service to vulnerable children and families in Hampshire.

1.6 The service asks Cabinet to consider a one off invest to save allocation in 2008/09 of £1.4 million to be repaid in 2010/11. The investment is for extra payments to in-house foster carers to attract additional carers and make in-house provision for children with more complex needs, the saving to come from a reduced use of more expensive independent foster placements.

1.7 With that invest to save plan in place the service proposes a balanced budget for the three years 2008/09 to 2010/11.

1.8 The efficiency agenda is then addressed with the service identifying significant achievements to date along with ambitious aspirations in the future to improve efficiency through further improved procurement in home to school transport and the internal investment in foster carers.

1.9 The Director of Children's Services particularly wished to highlight the following key aspects to this report.

1.10 This budget strategy presents a constructive and positive approach to the next three years. Children's Services budgets remain a complex combination of schools', non schools' and former children's social services budgets. It is to the credit of all concerned that a collective approach, including with the support of the Schools Forum, is helping to ensure both a sound financial base for the services and a developing awareness of the inter-relationship between the component parts. This is, of course, critical to the overall future success of Children's Services. The strategy is also predicated on the continuing effective stewardships of these pressurised budgets. Whereas there remain particular issues upon some of the demand led budgets, this strategy is once again being developed in the context of a balanced budget overall for 2007/8. All concerned are aware that this balanced position is achieved through the most careful and vigorous application of criteria and sound financial management practice. This strategy also sets out how the Council is preparing to address some particular areas of need within children's social work budgets and a proposed revision of the allowances and fees scheme for our foster carers. These proposals respond in part to the recommendations and main findings of the Joint Area Review.

2 Budget strategy

2.1 A provisional budget for 2008/09 and 2009/10 was agreed by the Cabinet in February 2007 alongside the 2007/08 budget. The budget strategy was incorporated in the Medium Term Financial Strategy approved by Cabinet in May. The budget strategy was reviewed by Cabinet in October following the publication of the Comprehensive Spending Review and in December to update inflation assumptions. The strategy is based on the following principles:

· Increases for all services in accordance with the County Council's base budget rules

· Above inflation increases for Adult Services and Children's Services

· Redeployment within each service of cashable efficiency improvements identified in 2008/09 towards new priorities and pressures

· No other provision for any new service developments unless funded by cashable efficiency savings

· Pay inflation of 2.5% plus a 0.5% increase in employer's pension contributions in 2008/09

· 2.5% for non-pay

· Income to be maximised by reviewing charges in line with the average inflation on the related gross expenditure.

2.2 The same assumptions have been used to set a provisional budget guideline for 2010/11.

2.3 For this service, the adjusted budget guidelines are:

	£m	% cash increase on year before
2008/09 guideline	911.681	3.8
2009/10 provisional guideline	939.769	3.5
2010/11 provisional guideline	976.321	3.6

2.4 This report sets out the Children's Services Executive Lead Member's responses to the guidelines. The report:

· Reviews the revised budget for 2007/08 ( as set out in Appendices 1 and 2)

· Reviews the 2008/09 base budget which totals £901.540m (as set out in Appendix 3)

· Identifies growth of £14.439m (as set out in Appendix 4)

· Identifies £12.616m of pressures and costs absorbed (as set out in Appendix 4)

· Proposes the redeployment of £ 2.898m of resources (as set out in Appendix 4)

· Identifies efficiency improvements of £1.572m, being 1.1% of the base budget (as set out in Appendix 5)

· Reviews the charges made by this service (as set out in Appendix 6)

· Reviews the trading accounts of business units (as set out in Appendix 7)

· Proposes a detailed budget for 2008/09 (as set out in Appendices 8 and 9) that exceeds the guideline by £1.4m

· Identifies the workforce implications of the budget proposals (as set out in Appendix 10)

· Proposes a provisional budget for 2009/10 and 2010/11 (as set out in Appendix 11), both of which are below the guideline by £1.4m

· Proposes the request to Cabinet of an additional invest to save amount of £1.4m in 2008/09, which would be repaid in 2010/11 thus enabling a balanced budget position for the three year period.

3 Revised budget

3.1 The cash limit for the revised budget is £881.815m (split £739.855m for Schools Budget and £141.960m for non-schools budget). The calculation is shown in Appendix 1.

3.2 A summary comparing the revised budget with the cash limit is set out in Appendix 2. This shows that there is a forecast underspend on the Schools Budget of £1.173m, which may be carried forward to 2008/09 subject to the final outturn figure and consideration by Schools Forum.

3.3 On the non-schools budget there is a forecast balanced budget for 2007/08, after applying one-off funding totalling £624,000. The key elements of the underlying overspend are home to school transport and children looked after and the forward budget implications of these pressures are addressed in the three year budget proposals.

3.4 A separate report on this agenda provides more details of the main variances and highlights that there are likely to be further reported underspends, particularly on the Schools Budget, which will be carried forward to 2008/09. On the non-schools budget there is also a potential underspend, primarily as a result of staffing levels being lower than anticipated (due to both recruitment difficulties and in preparation for the new integrated youth service) and as managers continue to manage down pressures.

4 Base budget 2008/09

4.1 A base budget for 2008/09 has been prepared which contains the current financial policies of the Council, in order to provide a starting point from which decisions can be made. The base budget for this service is £901.540m at outturn prices.

4.2 Appendix 3 shows the make up of the base budget.

4.3 Overall, the base budget includes a net increase in expenditure at constant prices of £31.304m. The main variations are considered in the following sections.

5 Schools Budget proposals for 2008/09, 2009/10 and 2010/11

5.1 The Department for Children, Schools, and Families (DCSF) has announced the details of the DSG for the three years 2008/09 to 2010/11, summarised as follows:

	2008/09	2009/10	2010/11
	%	%	%
National minimum per pupil increase	4.0	3.4	3.8
National average per pupil increase	4.6	3.7	4.3
Hampshire per pupil increase	4.5	3.7	4.2
Hampshire cash increase	3.8	3.1	3.8

5.2 There is a significant sum of unallocated specific grant for 2009/10 to cover what the DCSF are calling "progression" which accounts for the dip in funding nationally through DSG for 2009/10 and the allocations are not yet known. Progression is for ensuring pupils progress well through each stage of their school career.

5.3 For 2008/09 there are three earmarked ministerial priorities included in DSG

· Pockets of deprivation

· Provision for excluded pupils from the sixth day of an exclusion, and

· Personalised learning.

5.4 The "pockets of deprivation" earmark is one which should really be regarded as having to be met. The "personalised learning" earmark is distributed on age 5-15 pupil numbers with no weighting for deprivation. On this basis any distribution at local authority level for deprivation (including children in care) will increase Hampshire's performance against the target percentage. The ministerial statement noted that

"This additional funding is to support universal roll out of a personalised offer to all pupils - including those with special educational needs - and will be distributed on the basis of numbers of 5 to 15 year olds. In taking decisions on allocations, local authorities and their schools forums should consider our priorities:

· Ensuring all children are making good progress;

· Early intervention to prevent children from falling behind, especially those with special educational needs;

· Targeted support for specific groups including those ethnic minorities at particular risk of poor outcomes, white working class children, children in care; and

· Ensuring that the school workforce has the skills and confidence to address the needs of children from these groups."

5.5 The table below shows how the total Schools Budget managed by Children's Services is derived.

	2008/09	2009/10	2010/11
	£000	£000	£000
Dedicated Schools Grant	671,000	691,605	717,850
Less Items managed by Policy and Resources	-11,181	-11,461	-11,748
Technical Adjustments (SHIPS +£105,000, Occupational Health +£50,000, Eastleigh Family Nursery +£53,000, Rates Officers -£80,000)	128	128	128
Schools Budget Standards Fund	53,752	51,723	51,888
School Standards Grant	33,802	33,802	33,802
Schools Budget GSSG	17,971	21,857	25,647
Milk Grant	155	155	155
14-19 Diploma Grant	400
Schools Budget Total Managed by Children's Services	766,027	787,809	817,722

5.6 The base budget incorporates three main areas of change from the preceding year :

· The effect of inflation from year to year. The assumption in this paper is 2.5% per year for prices and 2.5% from the award date for pay rises. The increasing local government employers' pension contribution rate is also reflected. Inflation is shown separately for the Individual Schools Budget (ISB) (the sum of schools' delegated budgets) and the Central Expenditure Limit (CEL) ( items within the Schools Budget which are not delegated)

· The effect of changes in pupil numbers which increase for three and four year olds and special schools and decrease for both primary and secondary.

· The impact of the fixed costs of brand new schools and other revenue effects of the approved capital programme

· Additionally for 2008/09 the balance of insurance costs has been reassessed and from current claims history, the self insurance contribution can be reduced. Insurance is delegated with the sums delegated matching the Service Level Agreement (SLA) charges. This change would reduce budget shares and costs but it is sufficiently small that it should not affect Minimum Funding Guarantee (MFG) levels i.e. the minimum increases in funding that individual schools must receive.

5.7 Once this position has been arrived at the difference between the cost of the change in the base budget and the change in DSG is referred to as `Headroom'. The table below shows the current assessment of Headroom for Hampshire County Council:

		2008/09	2009/10	2010/11
		£'000	£'000	£'000
DSG increase year on year*		24,771	20,605	26,245
Less overestimate pupil numbers		-1,301	0	0
Net		23,470	20,605	26,245
Base Budget Changes
Inflation
Individual Schools Budgets		14,087	14,428	14,787
Central Expenditure		2,486	2,427	2,488
		16,573	16,855	17,275
Pupil numbers
3 and 4 year olds		950	900	786
Primary and secondary		-3,487	-2,680	-1,029
Special schools and units		260	180	50
		-2,277	-1,600	-193
Capital Programme		155	170	270
2006/07 add back		-699	0	0
		-544	170	270
Net Base Budget increase		13,752	15,425	17,352
Re-deployment proposals
SEN (Statemented pupils and out of county placements)		-400
Insurance re-assessment		-75	0	0
Reduction in Matched funding needed for Standards Funds		-91
		-566	0	0
Revised net commitments		13,186	15,425	17,352
Headroom Available		10,284	5,180	8,893

* For 2007/08 this change is based on the revised DSG figure of £647.530m, compared with the notified DSG of £672.301m

5.8 At its meeting on 11 December Schools Forum considered proposals for best use of the Headroom and agreed an approach to be ratified at its meeting on 24 January 2008. The following table and comments reflect these proposals. However, further work will be required to balance the pressures and priorities for 2009/10 and 2010/11 to match the funding available, though the table below shows how this might be achieved.

		2008/09	2009/10	2010/11
Deprivation		£'000	£'000	£'000
Earmarked deprivation funding		768	0	0
Children in Care		1,230	0	0
English as Additional Language		144	212	248
General		1,743	2,043	3,149
		3,885	2,255	3,397
Individual Schools Budget
6 day exclusions - schools		100	0	0
Pay and Benefits		1,800	800	2,070
Equal Pay fund		500	0	0
ICT		1,000	0	1,000
Outreach work by Special schools		154	108	111
Mainstreaming ASD provision		110	0	110
		3,664	908	3,291
14 to 19 Diploma		0	0	750
Early Years
Extended Early Years entitlement		870	1,470	590
Early Years SEN general		150	52	55
New SEN early years resourced provision		120	145	110
		1,140	1,667	755
Central Expenditure pressures
At the limit*		1,170	350	700
Above the limit		425	0	0
		1,595	350	700
Total = Headroom available		10,284	5,180	8,893

* For 2008/09 this includes £400,000 redeployment from SEN savings already in Central Expenditure

Deprivation Funding

5.9 Schools Forum has received various papers on this issue and has agreed the following priority amounts if the headroom available allowed:

· Children in Care - £1,200,000

· Pupils with English as an additional language (EAL) and from low attaining minority ethnic groups (EM) - £600,000

· Deprivation in general - £7,300,000.

5.10 The report considered by Schools Forum on 26 September 2007 (Item 5) dealt with the renewed Government pressure on local authorities and Schools Forums to increase the proportion of delegated funds allocated on a deprivation basis. The Government has introduced a target for deprivation funding for schools, such that all the funding included in the national distribution to local authorities for deprivation should be delegated to schools for deprivation. The current position puts Hampshire at 86% of the target figure. Given the amount of headroom this budget report proposes increases in funding by 2010/11 for:

· Children in Care - £1,230,000

· EAL -£604,000

· Deprivation in general - £6,935,000.

5.11 At this level of funding, the DCSF deprivation funding target of 100% will be met in the third year (2010/11).

5.12 At its meeting on 11 December 2007, Schools Forum considered a report from its Deprivation Sub-Group and agreed to allocate the funds on the basis of the use of the Index of Multiple Deprivation (IMD) based on the value for each pupil's home postcode.

Day six exclusions

5.13 The Education & Inspection Act 2006 requires schools or the local authority to provide for the excluded child's full time education from the sixth day of any fixed period exclusion in a school year (in the case of a school) or from the sixth day of each permanent exclusion (in the case of a local authority) but they can make the provision earlier.

Pay and Benefits

5.14 Funding of the impact of Pay and Benefits has previously been provided, with £850,000 in 2005/06 and £1,390,000 in 2006/07. Nothing further was added in 2007/08 as recognition of the funding in 2006/07 as year one of the multi-year budget period. For this three year budget the additional funding provided is to help meet the cost of step progression. There is also a Pay and Benefit impact on budgets counted as central expenditure items.

5.15 A contingency of £500,000 has been set aside within the budget proposals to assist with meeting the costs of equal pay claims in schools.

Information and Communication Technology (ICT)

5.16 The provision of an additional £1,000,000 in 2008/09 and in 2010/11 reflects the significant pressure related to the upgrading, development and maintenance of IT to keep an up to date curriculum provision.

Outreach work

5.17 Outreach work by special schools is considered a valuable resource which should be developed with further funding within budget shares by way of "outreach places".

Mainstreaming Autistic Spectrum Disorder (ASD) provision

5.18 The pilot in a pair of schools is to be mainstreamed at a cost of £110,000 and the proposal is to extend this to a further pair of schools in 2010/11 at a similar cost.

14 to 19 Diploma

5.19 The 14-19 clusters that have been approved by the DCSF to deliver the new diploma lines in 2008 will receive specific grant funding on top of the DSG provision made in 2007/08. The grant for this has recently been announced and, whilst it is felt that there is adequate funding in 2008/09 and 2009/10, there is an estimated shortfall of £750,000 in 2010/11.

Extended Early Years entitlement

5.20 Hampshire is a pathfinder authority for the flexible provision of free early years support. This entitlement requires the extension of free early years provision from 12.5 to 15 hours delivered flexibly. The target is to achieve a target of 100% delivery as soon as possible.

5.21 The rules applying to the grant are unlikely to meet the full costs of this extra provision, though the grant itself is considered more than sufficient. A provision has been made to meet the ineligible costs, whilst it has been assumed that it will be possible to claim costs in other areas that, at the moment, are unclear. Anomalies around the rules and funding arrangements are being pursued with the DCSF.

Early Years SEN - General

5.22 This reflects the extra cost of SEN children in respect of the move from 33 to 38 hours provision. The increased entitlements for both the number of weeks and the number of sessions/hours per week have built up more slowly for SEN children.

New SEN early years resourced provision

5.23 This provision is for SEN children aged three and four and allows a phased implementation, to allow greater equality of access, over the three year period.

Central Expenditure Limit (CEL) 2008/09 to 2010/11

5.24 Increases of Central Expenditure in line with delegated DSG are estimated at £770,000 in 2008/09, £350,000 in 2009/10 and £700,000 in 2010/11. Any increase beyond this limit requires specific Schools Forum approval.

5.25 The priority areas for any increase in Central Expenditure are Early Intervention Services and Preventative Services. This includes maintaining and extending some services that have been funded through specific grants and non-schools budgets.

5.26 The current projections for 2007/08 identify potential savings on Special Educational Needs (SEN) budgets (Statemented pupils and Out of County Placements) in the order of £500,000. Although there is some risk in terms of the volatility of these demand-led budgets it is believed that £400,000 can be identified as ongoing savings resulting from the successful early intervention services focused on SEN and inclusion. It is proposed to release this amount for continued investment in maintaining and developing early intervention and preventative services. Priorities for 2008/09 totalling £480,000 have been identified:

· Key Stage 4 - pupils at risk of exclusion and pupils with statements of SEN. This includes £85,000 for pupils at risk of exclusion for attending Link Courses at Colleges. The other £85,000 is to provide a range of activities that runs alongside the allocation of college courses for those in Education and Inclusion. The provision supports pupils in Key Stage 4, who have statements of SEN, who are not attending school full-time.

· Trial Inclusion/Full Inclusion Grants. This is to support pupils with statements in their transfer from specialist to mainstream provision. This is significant in moving children down from the higher tiers of provision into the mainstream environment, fitting in with the policy of inclusion and placing children in the least restrictive environment. This approach is at the heart of Hampshire's policy direction for supporting children with SEN and disabilities with appropriate support in universal services.

· TOP (Thomas Outreach Project). TOP is an early intervention service for young children with impaired social communication and/or autistic spectrum difficulties and is offered to help the child learn in a variety of settings e.g. the home, pre-school and then transition during the first term of Year R.

· Inclusion Support (Physical & Sensory Disabilities). Through the work of the Inclusion Support Assistant school staff are more aware of safe practice in relation to manual handling and risk assessment, thus reducing the risk of costly litigation. Schools are supported in developing and sustaining inclusive practice to get pupils with disabilities and complex medical conditions back into schools quickly and efficiently.

5.27 The following items represent the other priorities that Schools Forum considered within the Central Expenditure increase:

· Pay and Benefits

· Education Inclusion Service - Day six legislation

· Education Inclusion Service - Early Response Team and Primary Support

· Admissions - Appeals Process

· Specialist Education Support for children

· Prudential Borrowing - mainstream ASD provision in secondary school in the South East of the county

· Communication and Language Team.

Additional Central Expenditure limit priorities

5.28 The following proposals were submitted for consideration by Schools Forum, should there be any room within the funds available to meet these additional high priorities, which would exceed the limit and require specific Schools Forum approval:

· School Leadership Succession - £135,000

· Nurture Groups - £60,000

· Education Inclusion Service - Additional Primary Support - £230,000.

6 Non-Schools Budget proposals for 2008/09, 2009/10 and 2010/11 - Grant-funded

6.1 There are two main types of grants for Children's Services: Specific Revenue Grants and the Area-Based Grant (ABG). As an excellent-rated authority Hampshire County Council has benefited from flexibility and has been able to use of most of the specific grants for any purpose.

6.2 In 2007/08 the Government introduced a `Local Area Agreement (LAA) Grant' into which several former specific grants were pooled. The intention was that funds would be allocated by the Local Partnership in accordance with priorities. However, this process has not been developed and the Government has now created a new Area-Based Grant to replace the LAA Grant. Several existing grants have been amalgamated into this grant and there are some new grants as well.

6.3 Unlike the LAA Grant, the ABG is disconnected from the indicators, targets and outcomes in the Local Area Agreement and is paid on an unringfenced basis. This means that local authorities are able to spend the ABG as they see fit to deliver local and national priorities. However, for 2008/09 the working assumption with the ABG is that spending on services will continue in line with the grant allocation and it will therefore be available for the same services. The ABG has no restrictions on carry forward.

6.4 Current provisional figures for these grants (excluding Schools - see paragraph 6.5) are:

	2007/08	2008/09	change	2009/10	change	2010/11	change
	£'000	£000	%	£000	%	£000	%
Area-Based Grant*	11,035	12,457	12.8	14,160	13.7	12,981	-8.3
Specific Revenue Grants	3,361	3,697	10.0	3,575	-3.3	6,684	87.0
Total	14,396	16,154	12.2	17,735	9.8	19,665	10.9

* Figures for 2007/08 ABG are for comparison purposes only

6.5 The ABG is made up of the following:

Grant	2007/08	2008/09	2009/10	2010/11
	£'000	£'000	£'000	£'000
Connexions		TBC	TBC	TBC
School Development	1,093	1,093	1,093	1,093
Extended Schools - Start Up	1,410	1,832	2,961	1,218
Primary National Strategy - Central Co-ordination	479	628	637	637
Secondary National Strategy - Central Co-ordination	461	484	486	486
School Improvement Partners	505	555	555	555
School Intervention	360	360	360	360
Flexible 14-19 Partnerships	542	356	357	357
Secondary Behaviour & Attendance	183	183	183	183
Education Health Partnerships	212	212	212	212
School Travel Advisers	165	165	165	165
Choice Advisers	56	57	57	57
General Duty on Sustainable Travel to School	94	94	94	94
Extended Rights to Free Travel	115	285	456	626
Children's Fund	1,895	1,895	1,895	1,895
Positive Activities for Young People	166	166	285	370
Teenage Pregnancy	325	325	325	325
Children's Social Care Workforce	872	872	872	872
Care Matters	45	560	757	869
Child Death Review Processes		109	112	116
Carers	753	820	822	945
Child & Adolescent Mental Health Services	1,304	1,406	1,476	1,546
Total	11,035	12,457	14,160	12,981

6.6 Details of individual specific grants are given in Annex 1 to Appendix 11. In making like for like comparisons between the years the following factors need to be taken into account:

· 2007/08 contains a number of one-off grants and the Children's Services Grant of £3.1m that has been transferred to RSG

· Some grants have not yet been announced for 2008/09 and 2009/10

· Some grants have been transferred between specific and Area-Based.

6.7 There is little flexibility in terms of additional funds from these grant changes. However, as a result of reviewing commitments against former grant-funded expenditure it has been possible to release some funds to meet overall pressures. This is referred to in Section 8.

6.8 The main issues to be addressed regarding service areas funded by these grants are:

· Transfer of Connexions Service to Hampshire County Council on 1 April 2008

· New combined grant for workforce

· New grants with new burdens attached

· Extended Schools, Children's Centres and Early Years.

Transfer of Connexions Service and integration with Youth Services.

6.9 The Connexions grants were published for all local authorities on
15 November 2007 except for Hampshire, where it is understood that the complexities over the transitional grant claims by the South Central Connexions Partnership (SCCP) are impacting on the announcement of Hampshire County Council's overall settlement. Planning for the transfer of the service on 1 April 2008 is being hindered by the delay in this announcement from the DCSF.

6.10 In October the Executive Lead Member for Children's Services (Education) received a report setting out the detailed planning for the transfer of the Connexions service to Hampshire County Council and the development of an integrated youth support service.

6.11 There are a number of transitional costs associated with the transfer relating to premises, staffing and pensions liabilities. The DCSF has a transitional support grant against which applications have been made by Hampshire County Council and by SCCP. The outcomes are awaited but there are real concerns about the extent to which costs will be met, in particular for the pensions and lease liabilities of SCCP.

6.12 The planning for the new service is currently based on the assumption that the Connexions funding will transfer to Hampshire County Council, within the ABG, and that the grant total will transfer at the current value, although this figure has not been included in the budget. The October report was clear about the priorities and plans for the service and also clear of the need to ensure the service is structured to fit the funding available.

Children's Social Care workforce grant

6.13 This is an amalgamation of two former grants (Human Resources Development and National Training Strategy), totalling £2,565,000 in 2007/08, that were then split on an agreed basis (by the County Council) to Adult Services and Children's Services. There are now separate grants for Adults and Children's totalling £2,751,000 in 2008/09. The Children's grant is £276,000 in 2008/09 compared with a total of £872,000 for the Children's Services' share of the two grants in 2007/08. However, as the combined total of the two grants from 2008/09 onwards exceeds the previous totals it has been agreed that the Children's Services grant will be kept at the 2007/08 level.

New grants

6.14 There are three totally new grants within the ABG to meet new burdens, with expected outcomes attached, for which it has been assumed within the budget that the funding will be fully used for the intended purposes. However, more details of how these grants are to be used will be reported to the Executive Lead Member for Children's Services (Education) prior to the start of 2008/09. These grants are:

· Care Matters

· Child Death Review Processes

· LINks (Local Involvement Networks).

6.14.1 Care Matters (2007/08 - £45,000, 2008/09 - £560,000, 2009/10 - £757,000, 2010/11 - £869,000). The main areas to be covered by this grant are:

· Change fund - review corporate parenting. This can be used to help collect data on the DCSF SSDA903 re emotional and behavioural health

· £500 personalised educational allowance for every child in care at risk of not reaching the expected national standards of attainment

· Other commitments arising from Children and Young Persons Bill and Care Matters White Paper

· Separate allocations are being made for workforce reforms.

6.14.2 Child Death Review Processes (2008/09 - £109,000, 2009/10 - £112,000, 2010/11 - £116,000):

· Mandatory from April 2008 - Local Safeguarding Children's Boards

· Detailed Guidance is contained in chapter 7 of Working Together to Safeguard Children (2006).

6.14.3 LINks (Local Involvement Networks) (Total Adults and Children's - 2008/09 £378,000, 2009/10 £379,000, 2010/11 £381,000). This is funding to meet the requirements of the Local Government and Public Involvement in Health Act 2007. A report by the Chief Executive, which sets out the requirements of this legislation (principally to procure a host organisation in order to establish a LINk for their area to replace current NHS specific arrangements for engagement and participation), was submitted to the Executive Member for Policy and Resources on 7 December 2007. That report also detailed the actions taken to date and the issues to be addressed. Approval was given for the additional funds to be spent through the County Council's procurement process.

6.14.4 The DCSF has allocated a flat amount of £60,000 to each authority plus an additional amount split between adults and children's social care based on Relative Needs Formula. If the national formula allocation were followed in Hampshire, the balance after the £60,000 ( £318,000 in 2008/09) would be allocated approximately 75% (£238,000) to Adult Services and 25% (£80,000) to Children's Services.

6.15 On the Specific Revenue Grants there is one notable new grant: Aiming High for Disabled Children (2008/09 - £70,000, 2009/10 - £1,397,000, 2010/11 - £4,560,500). This grant is aimed at providing more disabled children with valuable experiences away from parents and carers and to provide parents and carers with breaks from caring. The £70,000 in 2008/09 represents a `change fund'. Subject to adequate preparations in 2008/09 the higher funding levels will be available from 2009/10.

Extended Schools, Early Years and Children's Centres.

6.16 Grant funding for these services (excluding flexibility of free entitlement for three and four year olds, which is dealt with in the Schools Budget section), is as follows:

	Extended Schools	Children's Centres	Early Education & Childcare	Total
	£'000	£'000	£'000	£'000
2007/08	1,410	7,084	8,969	17,463
Carry forward from 2006/07	545	1,418	357	2,320
Total 2007/08	1,955	8,502	9,326	19,783
2008/09	4,464	11,062	6,908	22,434
2009/10	5,944	14,175	7,681	27,800
2010/11	5,420	16,902	8,745	31,067

* N.B. This table shows General Sure Start Grant (GSSG), ABG and Standards Fund Grant and excludes core funding

6.17 Part of the Extended Schools element (start up costs) is included in the ABG for all three years and part is included (for 2008/09 only) in the new Sure Start Early Years and Childcare Grant (SSEYCG) together with all the other elements. Figures for a further new grant (Extended Schools - Subsidy) are yet to be announced though it is understood that figures for Pathfinder Authorities will be announced in September. Hampshire County Council will receive full funding when the national rollout occurs in 2010/11.

6.18 Excluding the carry forward from 2006/07 of £357,000, the Early Years element of the Sure Start, Early Years and Childcare grant reduces by £2.1m in 2008/09 compared with 2007/08. The main two elements of change in Government grant allocation are:

· £1m reduction in the Graduate Leader Fund

· £1.1m shown by DCSF as intended for Extended Schools allocation within GSSG, though this was used for various strands of expenditure. This element has subsequently transferred directly to the new Extended Schools allocation. (The £1.4m in 2007/08 for Extended Schools is a Standards Fund grant rather than GSSG).

6.19 Proposals to address the Early Years funding reduction include reducing service provision and support (e.g. conferences, CPD courses, sustainability and start up grants) and the introduction of charges for training and accreditation. Some of these savings are one-off in 2008/09, as the funding increases in 2009/10 and 2010/11, which will enable their re-instatement with minimal impact to the service.

6.20 All three strategies, those for Children's Centres, Early Education and Childcare and Extended Schools are important in preventing the future failure of children to reach the five outcomes of Every Child Matters and in early intervention when issues are already identified. There are Government targets, locally applied, for each strategy, and grant, either Standards Fund or Area Based Grant, to support the work. Hampshire is currently meeting the targets for Extended Schools and for Early Education and Childcare. These grants should allow that good work to be continued and developed and also to improve the performance of children in the Early Years Foundation Profile that measures, effectively, their early development and readiness for more formal education.

6.21 There are, however, issues to be addressed within the Children's Centre programme. These are being built in three phases to achieve the aim of one centre for each community in the county by 2010. The programme is on-track, to date, and during 2008 the sixty planned in the first two phases should all be completed. Previous delays in the building programme have resulted in unspent revenue and this, £1.3m, will be carried forward from 2007/08 into 2008/09. However, there are likely to be challenges to both the capital and revenue budget to complete the Children's Centre programme during 2009/10. There is insufficient Government funding to make this possible. Nevertheless, the work of Children's Centres is so crucial to preventing children, particularly those from disadvantaged backgrounds, from failing to achieve positive outcomes, that the department will seek alternative sources, should that be necessary, to fund the completion of this programme by looking at what might be trimmed from Area Based Grants. Further reports on this will follow as necessary.

7 Non-Schools Budget proposals for 2008/09, 2009/10 and 2010/11

7.1 The County Council has agreed to continue its policy of providing additional funding above corporate inflation assumptions for children's social care of £1.2m in 2008/09, an additional £1.2m in 2009/10 and a further £1.26m in 2010/11. In 2008/09 this increase is impacted by the transfer of £777,000 in respect of the contribution to the corporate Contact Centre (Hantsdirect) for which equivalent savings are to be achieved.

7.2 The proposals below are possible as a result of this additional corporate funding and by using the flexibility provided by reviewing commitments against specific grants (former grants that have finished and the limited increase in future years), including those that Schools Forum has agreed to fund through Schools Budget.

7.3 As stated above, it has been assumed that the new Government grants will be used to meet the new burdens required by underlying legislative requirements and Government priorities.

7.4 The Ministry of Justice has launched a consultation that concerns some of the developments that surround the implementation of the Public Law Outline for children in care cases. But the heart of this matter is a shift of fees to Local Authorities, which the consultation document refers to as having been reflected in the Revenue Support Grant calculations for local authorities. This certainly does not appear in the list of 'new burdens' for which explicit resource transfers have been identified in CSR and in the RSG settlement. In any event, as a floor authority, this has no impact on Hampshire County Council's grant. The Local Government Association (LGA) has been approached regarding the process followed and the financial implications.

7.5 At present the charge is about £150 per application, regardless of how far it proceeds. The new system is intended to reflect a general policy of placing the financial onus on the public sector applicants for court proceedings, rather than on the court service itself. The change in costs is considerable as a result. The total cost to the local authority for a full application that goes to final hearing would now be £4,825. There are graded costs for cases which are withdrawn at earlier stages because of early resolution (through the new Public Law Outline). However, the minimum cost for a first application will be £2,225. And of course, whereas a local authority's own decision to proceed and go to final hearing will always be needs-led, all other parties have no financial incentive to agree to early resolution.

7.6 It is estimated that, if implemented, this could cost the County Council an additional £400,000 per annum. No budget provision has been made for this.

7.7 Responses to questions within the consultation paper are asked for by 11 March 2008. It is proposed that the new fee structure will be implemented in April 2008. However, the consultation paper states: "If responses indicate legitimate concerns in relation to the timing or the cost we (will) work with DCLG and DCSF to find an acceptable solution before deciding on when they will be implemented." The County Council's response will make it clear that the implementation of any proposals will require adequate government funding.

Training - £120,000

7.8 This is the planned re-instatement of the budget following one-off savings in 2007/08.

Data and Information for Vulnerable Children - £200,000

7.9 The very significant increase in demand for information for performance and management purposes, including Contact Point and the Information Sharing Index, is exceeding the existing capacity within the Information Systems team and in the Information Research Unit. The pressures are around staff numbers (with five new posts proposed), but also stem from the need to purchase several new pieces of software to develop the capacity of the systems to capture and manipulate the data and information to meet needs analysis demands, both statutory and local. Growth of £200,000 is required to address this.

Home to school transport - £200,000

7.10 There remain considerable cost pressures affecting home to school transport. Fuel, wage and insurance costs are still driving prices charged by contractors upwards. Spend to save initiatives have helped to contain these pressures over the last five years and have moderated pressure on the budget. From an analysis of the Section 52 statements (the statutory national financial returns) it can be seen that the home to school transport budget in Hampshire increased by 24.2% between 2000/01 and 2005/06. In comparison the average increase for the ten Ofsted comparator counties was 45.6%. If Hampshire had inflated its budget for home to school transport at the average for the group the budget for 2005/06 would have been some £3.5m higher.

7.11 Activity levels continue to show the pressure on the budget. Although the number of contracts fell by 30 between July and October of this year, a higher than normal decline, the October 2007 figure of 1,302 was 12 higher than in October 2006. The latest estimates taking these activity levels into account indicate that there is an anticipated continuing pressure on the budget for 2008/09 of £200,000.

Rights, Respects and Responsibilities - £50,000

7.12 This programme has been operating in a number of secondary schools in Hampshire and has been funded through LPSA reward grant for the past two years. This funding comes to an end in March 2008, and so to continue the programme will require funding of £50,000.

Voluntary Sector Alliance - £50,000

7.13 The Children and Young Peoples Voluntary Sector Alliance presented a Business Plan to the Children and Young People's Partnership Management Board, which set out the objectives of the organisation and its role in relation to the voluntary and community sector organisations in Hampshire. In order to continue to develop the capability of the voluntary and community sector, e.g. through workforce development and capacity building, funding of £50,000 per annum for the next three years is required.

Building Schools for the Future (BSF) - £200,000 2008/09, £200,000 2009/10, £100,000 2010/11

7.14 The County Council was expecting that the earliest that it could come into this major secondary school transformation programme would be 2011. Experience from projects in other authorities to date show that preparation and strong pre-project planning is key to a successful programme, and that some have struggled to keep to the programme and timetables. It is possible that Hampshire County Council will get the opportunity to get involved in the programme earlier than anticipated. To start planning and preparation it would be sensible to start building a small project team over the coming three year period. At this stage it will need to be funded from revenue. Opportunities to capitalise or to charge to the Schools Budget and DSG are being explored. The proposal is to build up a total resource of £500,000 per annum by 2010/11.

Children Looked After/On the Edge of Care - £400,000

7.15 The following table is a summary of the anticipated outcomes in terms of activity data arising from the children in care commissioning strategy:

				Forecast numbers
Activity	Sept/ Oct 06	Mar/ Apr 07	Sept/ Oct 07	Mar 08	Mar 09	Mar 10	Mar 11
Children Looked After
Total	1,072	1,024	999	1,000	1,000	1,000	1,000
CLA - Non-County Placements	61	57	56	60	60	60	60
CLA - Independent Fostering	132	142	139	124	110	91	66
CLA - In-house foster care placements	588	541	540	552	566	585	610
Children on the edge of care
Kinship Care	58	60	59	60	60	60	60
Residence Order	103	108	109	112	115	115	115
Special Guardianship Order	7	22	49	55	60	65	70
Adoption	191	208	209	210	210	210	210

7.16 The latest budget monitoring report identifies a pressure of about £600,000 on Children Looked After (CLA) plus a pressure of almost £500,000 on Other Children's Services, offset by a forecast underspend of over £300,000 on Family Support Services. This extra funding, together with the investment in in-house foster services (see below) will help to alleviate the underlying pressures and enable resources to be directed towards meeting the objectives set out in the Children in care Commissioning Strategy (see 8.18).

7.17 Whilst CLA numbers have shown a downward trend, any further reductions may not be appropriate given the genuine needs of some families for alternative arrangements to be made for their children. In addition, as the numbers have reduced, then so has the profile of the children looked after. There are increasing numbers of children surviving with very complex needs and this means that numbers placed in specialist placement is not likely to reduce in the way that it is planned to reduce numbers in independent fostering placements. Reducing numbers also increases the numbers catered for in alternatives such as Kinship Care, Residence Orders, Special Guardianship and Adoption. Special Guardianship placements are likely to continue to increase but not at the same rate as over the last 18 months.

7.18 The Children in Care Commissioning strategy was considered by the Executive Member for Children's Services on 7 May 2007. The strategy includes proposals summarised below, which are linked to the project to raise the educational ambition and attainment of Children in Care:

· To increase the capacity of in house foster care in order to be able to reduce the level of purchased care

· To review some residential care services in order to identify options to develop intensive community support, including to those on the edge of care

· To reduce the level of purchased residential care by changing the purpose of some in house units

· To reinvest in preventative services to those on the edge of care and to be able to better support care placements under pressure in order to reduce the overall number of children in care and improve placement stability.

7.19 The Executive Lead Member for Children's Services (Education) considered a report on 11 October 2007 recommending that the residential care service at The Corner House in Aldershot should not reopen and that an alternative community support service should be developed within the current resource. A further report is being prepared to identify the nature of the local support service, based upon the model in South East Hampshire, recognising the need to deliver a service to two large centres of population in Basingstoke and Aldershot. Savings from the closure of Corner House (£80,000) are incorporated into the Budget Strategy.

Foster care - £1,800,000 2008/09, £600,000 2009/10, £550,000 2010/11

7.20 The activity data shows the excellent work that has been achieved in reducing the numbers of children in care and at the same time Children's Services have been working on the invest to save projects agreed from the LPSA reward grant:

· Recruiting and retaining more in-house foster carers

· Implementing a new regional commissioning strategy with Independent Foster Providers (IFPs) and

· Reviewing the existing Non County Placements (NCPs) in place to ensure they are being appropriately charged and delivering value for money.

7.21 The work on developing in house foster care capacity, through the use of LPSA funding to enhance recruitment, has highlighted the deeper issues of the relatively low fostering fees and allowances in Hampshire compared to those in the surrounding authorities or in Independent fostering sector. There is some evidence that foster carers are moving to IFPs in the surrounding authorities. Therefore the LPSA project, while increasing recruitment levels, has not done so at the rate anticipated.

7.22 The shortage of foster carers is a national issue, with a shortage of 10,000 across the country. Increasingly foster care is moving from a vocation to a profession. As such there is a clear need to develop and maintain a strong in house fostering service as a cost effective service which crucially improves the long term outcomes for children and young people. There is evidence that Hampshire County Council's rates of payment to in-house foster carers are among the lowest in the region.

7.23 A separate report on this agenda sets out detailed proposals to address these issues, including a change in the structure of foster care payments and an uplift in the allowances to bring them in line with neighbouring and competing local authorities. This approach will both allow long-term savings through the transfer of children and young people from IFP provision and cost avoidance by ensuring new placements are made in house rather than with IFPs. However, because of the size of the budget and the numbers involved it does represent a very significant upfront investment, which the current analysis shows has a pay back after about four years.

7.24 The profile of the proposed invest to save includes maintaining the current levels of in-house placements, transferring 92 placements from existing IFPs to in-house, and taking on the additional children that would otherwise be placed in IFPs based on projected trends over the next five years. This requires a net investment of £1.4m in 2008/09, although this reduces by £300,000 in 2009/10 and a further reduction of £250,000 in 2010/11. This makes a significant total net investment of £3,350,000 over the three years. Options for reducing these costs, and still maintaining an adequate level of investment to recruit and retain foster carers, are still being considered.

7.25 On the basis of these figures, annual savings would start in 2011/12 and a `break-even' (cumulative savings equal to cumulative costs) would occur in 2014/15.

7.26 A model has been developed to look at the costs avoided from future placements in IFPs i.e. by making the placements in-house. On current forecasts this shows that there could be a significant reduction in future anticipated pressures, perhaps as much as £4m per annum within five years. Clearly if action were not taken now then the trend for increasing IFP placements could increase further. However, the assumptions and inter-dependencies of various factors in the model require further development before a firm business proposal can be made.

7.27 This is an exciting opportunity to develop a strong and effective service for Hampshire's vulnerable children and young people. It aims to address the priority area of placement stability for children looked after raised in the APA/ JAR. At this stage this is an investment which would be proposed to start in 2008/09 and the service's budget position means it isn't in a position to fully fund the investment required in that year. An upfront contribution towards this initiative is requested from Cabinet of £1.4m, the service will be investing £3.4m itself over the three year budget period, repaying the corporate investment in 2010/11 and managing the funding within its own cash limit over the three year budget period.

Social work staffing - £600,000

7.28 The transfer of functions from existing Children and Families teams to Hantsdirect will involve significant restructuring and process engineering to deliver the efficiency savings required and will have a major impact on the social work staff in teams in Reception and Assessment and Family Support.

7.29 The proposal is to invest to increase the qualified social worker staff numbers, which would address the JAR concerns, improve Hampshire's benchmark position, but more importantly ensure safeguarding responsibilities are better met, contribute to better outcomes for children and young people and improve recruitment and retention of social workers. It would also reduce the hours above contract and agency staff currently in place. The investment proposed would be for 16 extra staff and £600,000 in 2008/09, dependent on delivering the Hantsdirect savings and support for the foster care invest to save proposals.

Permanence and adoption - £40,000

7.30 This pressure related to new statutory requirements for independent counselling services to birth parents on adoption, as identified in a CSCI inspection report and for a menu of services to support placements e.g. babysitting, respite, after school activities

Family Group Conferences - £150,000

7.31 There is a new statutory requirement (Public Law Outline) for these to be held pre court action, in those cases where the authority is considering care proceedings. This is part of a general national programme to reduce delay in case proceedings, which ultimately will improve efficiencies.

Wessex Youth Offending Team - £100,000 2008/09, £25,000 2009/10

7.32 A separate report on this agenda deals with the detailed findings of a recent inspection of the Wessex Youth Offending Team. In order to address one of the key recommendations - to increase front-line resources - it is proposed to invest an additional £125,000 in the service (£100,000 in 2008/09 and a further £25,000 in 2009/10 as a contribution to the appointment of five additional staff).

7.33 Other partners are also considering increased investment and the Management Board has agreed that all partners should secure the agreed funding commitments. Failure by any one partner will put at risk the whole action plan.

Direct Payments - £125,000

7.34 There is a target to increase the numbers receiving Direct Payments by 50% by 2012. This investment will be offset by a reduction in children receiving Home Care services.

Training of Educational Psychologists - £120,000

7.35 This is required to support Years 2 and 3 of Educational Psychology training. Savings of an equivalent amount are planned in order to fund this.

8 Cost pressures, redeployment proposals and efficiency improvements - 2008/09 - 2010/11

8.1 The Cabinet requires all services to consider and report on:

· cost pressures absorbed within the budget guidelines

· the redeployment of any resources required to offset any new spending priorities, or inescapable budget pressures, or legislative requirements which otherwise cannot be met within their budget guidelines

· annual efficiency improvements.

8.2 Details of cost pressures absorbed of £12.616m and redeployment proposals of £2.898m are included in Appendix 4.

Stubbington and Minstead Study Centres - removal of core funding - £145,000

8.3 This represents the planned removal of the balance of base budget funding to these Centres, having made a reduction of £95,000 in 2007/08.

Denominational Transport - £25,000 2008/09, £25,000 2009/10

8.4 This represents the full year impact of the denominational transport policy charges introduced in September 2007 and a further pick up in the future as more children enter the denominational schools without an entitlement to free transport.

Printers in Ashburton Court - £35,000

8.5 These savings will accrue through rationalisation and management changes of network printers following the move of the main office from its current location in Castle Avenue to the newly-refurbished accommodation in Ashburton Court (East).

Contact Centre - £800,000

8.6 Preparation for moving many areas of Children's Services into Hantsdirect is well underway and the first major service areas for the department will go live before the end of March. This includes the social care Reception and Assessment Services. The total transfer of funds to Hantsdirect in 2008/09 will be £1,312,000, of which £535,000 was in 2007/08. Savings will accrue through a mixture of reduction in staff posts (both administrative and qualified social workers) with 16 posts transferring and services provided through service level agreements. It is unlikely that many existing staff will transfer to the new service. However, this provides the opportunity to review existing structures and to fill current vacant posts. Funds released will also be used to increase the social workforce. (see paragraph 8.28).

Reduction in Independent Foster Placements - £400,000

8.7 This is a direct consequence of the proposed investment in in-house foster care services described above.

Residential Services - £80,000

8.8 The Executive Lead Member for Children's Services (Education) has agreed the closure of the Corner House Residential Unit as part of the children in care commissioning strategy.

Education Psychology - £120,000

8.9 Savings are planned through a combination of staff savings and income generation in order to meet the costs of additional training required (see paragraph 8.35).

Home Care - £125,000

8.10 Savings in the Home Care Service will be achieved as a direct consequence of targeting services through the Direct Payments Scheme.

Other Efficiencies

8.11 The CSR07 sets an annual efficiency target for local government overall of 3%, all of which has to be cashable, compared with 1.25% cashable improvements required by Gershon. The County Council will be required to publish a performance indicator demonstrating how it has contributed to the national target. 3% for Children's Services amounts to about £3.6m per annum (year on year increases).

8.12 Appendix 5 identifies efficiency improvements totalling £1.572m (1.1%) in 2008/09 and a further £1.281m (0.8%) in 2009/10 and £1.189m (0.8%) in 2010/11. Of these, £1.2m (0.8%) represent usable budget savings in 2008/09, which are incorporated in the redeployment proposals in Appendix 4.

8.13 The Children's Services department has a strong track record of efficiency savings and the redeployment of resources to meet new pressures. It delivered well under the previous Gershon efficiency rules. This report refers to specific examples that have already been implemented and are ongoing, including:

· Home to school transport (paragraph 8.10)

· Children in care commissioning strategy (paragraph 8.15), which has helped manage down expensive placements of children looked after

· Other early intervention and prevention services, particularly within the SEN services (as set out within the Schools budget proposals in Section 6).

8.14 In addition to the invest to save initiative on in-house foster care (paragraph 8.20) there should also be administrative savings arising from the planned transfer of the Connexions Service and integration with existing youth services (paragraph 7.9). However, the latter has not been quantified due to further analysis work being required and also the grant funding has not yet been announced.

8.15 The department is also committed to the corporate programme to drive out efficiencies across the full range of service areas. It is playing an active part in the review of Facilities Management, and will be trailblazing the efficient use of office space in the move to Ashburton Court East. In that move the department is very aware of its role as a pathfinder for the whole county council, and is working closely with Property, Business and Regulatory Services to ensure every opportunity is taken to innovate and explore new ways of working. A comprehensive review of all Children's Services accommodation has started. This will inform action to deliver the Children's Services accommodation strategy of steady rationalisation of office bases and increasing use of flexible working to align with the overall corporate accommodation strategy.

8.16 Preparation for moving many areas of Children's Services into Hantsdirect is well underway and the first major service areas for the department will go live at the end of January. This includes the social care Reception and Assessment Services. he total transfer of funds to Hantsdirect in 2008/09 will be £1.38m, of which £0.54m was in 2007/08.

8.17 Procurement is another area of focus - with the department working with the corporate procurement team to explore efficiency options, including around Home to School transport. The Home to School transport work includes a major taxi re-tendering scheme for the North East of the County which it is expected will save 5% of current expenditure of £1.8 million in the area. If successful this approach will be rolled out across the County. Area reviews of mainstream transport, following the approach for special education are also being implemented.

9 Summary of service pressures and savings for 2008/09, 2009/10 and 2010/11

9.1 The table below summarises the net position for the non-schools budgets for the next three years and outlines how extra `one-off' funding in 2008/09, to meet the savings of £1.4m still to be identified in 2008/09, could be managed over the three year period.

	2008/09	2009/10 change on 2008/09	2010/11 change on 2009/10
	£'000	£'000	£'000
Pressures	4,155	875	700
Savings	-2,332	-1,075	-840
Guideline increase	-423	-1,200	-1,260
Net	1,400	-1,400	-1,400
Additional Funding (one-off)	-1,400
Ongoing pressure		+1,400
Repayment of one-off funding			+1,400
Balance	0	0	0

9.2 This means that, were additional one-off corporate funding of £1.4m available in 2008/09 to meet the estimated net costs of the foster care service improvements, there is sufficient room within the 2009/10 budget to meet ongoing pressures in that year. The funding could then be repaid in 2010/11, which would also mean that in 2011/12 there would be an additional £1.4m available to meet new pressures.

10 Review of charges

10.1 The service's 2008/09 revenue budget includes income of £5.950m from fees and charges. Details of the material headings are included in Appendix 6.

10.2 There are some mandatory and national charges which the County Council is not able to vary. Within Children's Services the only charge that is mandatory relates to penalty notices to parents of truants and excluded pupils.

10.3 Discretionary charges are reviewed annually except when they are subject to agreements which cover longer periods when the review takes place at the end of the period of the agreement. The Executive Lead Member for Children's Services (Education) reviews school meal charges. A separate report on this agenda deals with the proposal for 2008/09.

11 Other expenditure

11.1 The budget includes some items which are not counted against the cash limit. This includes budgets for central departments' support services, except where they have been given to departments to buy services, and repair and maintenance of buildings. It also includes member support within Children's Services budget, which is rechargeable to the Policy and Resources budget for corporate and democratic services. These have been excluded at this stage as the budgets are subject to Policy and Resources Executive Member control and they have not yet been agreed. In the original budget they totalled £13.757m.

12 Business units

12.1 The trading accounts of the business units are summarised in Appendix 7.

12.2 The business units consist of two groups of services:

1) Stubbington and Minstead Study Centres, which provide curriculum services to pupils and generate income from schools to cover residential and support costs. In addition both have to secure income to cover building replacement costs and, therefore, operate ten-year business plans. In line with the strategy agreed in the 2007/08 budget, the balance of the core funding from the County Council is to be removed in 2008/09 (£145,000).

2) The other business units provide services to schools and to the Children's Services department on a charge basis. Broadly 80% of the income is secured through annual subscriptions from schools. The remainder is for services core-funded from the Children's Services budgets. Current Service Level Agreements (SLAs) expire at the end of March 2008.

12.3 Three of the business units are going through a period of change and readjustment. The restructuring of Hampshire Inspection and Advisory Service (HIAS) in response to changes in the market for their services is the most significant of the changes, and the specific personnel issues arising from this have already been discussed with the Leader.

12.4 Education Information and Communication Technology (EdICT) and Education Personnel Services are looking at more subtle changes to their organisations to maximise the benefits of working within the County Council. They are both exploring ways to maximise efficiency by streamlining the skills within the business units and the wider corporate HR and IT services departments respectively. The pace of change needs to be steady to ensure maintenance of service stability and quality to schools.

12.5 All the Education business units, and a range of other departments in the County Council who sell services to schools (e.g. Catering and Legal Services) are currently in the process of renewing three year Service Level Agreements (SLAs) with schools. Details of the new SLAs are currently with school governing bodies and the pattern and levels of sign-up should be known by the end of January 2008.

12.6 Business unit finances are looking reasonably steady. The implications of the HIAS restructuring are that its balances will reduce to about £350,000 by the end of the current financial year. The other business unit balances are projected to show a small combined surplus at year end, but one or two could end the year with small deficits. Clearly the outcome of the SLA sign-up process will be important to maintaining future stability.

13 Legal implications

13.1 There are no legal implications within the proposals in this report.

14 HR implications

14.1 The workforce implications of the proposed budget for 2008/09, excluding schools and business units, are set out in Appendix 10. The 2008/09 base budget supports a planned workforce of 1,836 full time equivalent (FTE) staff. This compares with the original estimate for 2007/08 of 1,838 which is a reduction of two.

14.2 The net effect of proposals for growth, savings and redeployment of resources (Appendix 4) on staffing levels are as follows:

2008/09	+21 FTEs
2009/10	+4 FTEs
2010/11	+2 FTEs

14.3 Approximately 233 full-time equivalent staff will transfer (under TUPE arrangements) from the Connexions Service on 1 April 2008. These are all front - line, direct delivery staff. Central `HQ' staff are not subject to TUPE. Work is currently underway to finalise and cost staffing structures for April 2008. These will be subject to a separate report to the Executive Lead Member for Children's Services (Education) and will also form part of the Workforce Plan. The outcomes are also dependent upon the government grant which is not yet known.

14.4 The HR implications of Hantsdirect have been kept to a minimum. No staff transferred directly to the contact centre as a result of the move of services. This was largely a factor of the roles available, the distance from the contact centre of children and families staff with the relevant skills, and the transferred services tending to form `parts' of jobs. The budget implications of this are being managed through the ongoing review and reorganisation of the social care workforce. Staff where part of their role has been transferred to the contact centre will move into other roles within the new structures. There is a reduction of 16 staff included in the 2008/09 budget.

15 Provisional budget for 2009/10 and 2010/11

15.1 The provisional budget at outturn prices for 2009/10 and 2010/11 for this service is set out in Appendix 11 and summarised below:

2009/10	£939.769m
2010/11	£976.321m

15.2 The main variations from the 2008/09 budget are picked up in detail in the earlier paragraphs of this report. There are a number of significant assumptions and proposals that will need to be fully assessed and reported to the Executive Lead Member for Children's Services (Education) as they are addressed. These include:

· Connexions and youth service integration

· Early Years, Extended Schools and Children's Centres

· Specific grants - meeting the cost of new burdens.

15.3 The forward years' budgets assume that efficiencies will be achieved to manage future pressures. This is essential to ensure there is sufficient funding to enable the repayment of the £1.4m `invest to save' one-off investment in in-house foster care in 2008/09, assuming it is approved.

15.4 On the Schools Budget it is assumed that, with tighter settlements over coming years and with pressures set out locally by schools, with Pay and Benefits and with the expectation to close the attainment gap and deliver personalised learning, school balances are likely to stay about the same (at about £42m). However, the department will be using a range of measures to challenge excessive balances with schools, including:

· three year budgets for schools

· clawback proposals

· ensuring capital contributions from schools are collected promptly.

16 Impact assessment

16.1 The proposals in this report are derived from the departmental service plan and are in accordance with the budget strategy and the County Council's financial management policy. An impact assessment of the departmental service plan and the financial management policy has been carried out and the proposals in this report are not considered to be discriminatory.

16.2 Children's Services officers have been meeting regularly with the Children's Voluntary Sector Alliance since April 2007 to brief them on the budget position. They have, therefore, been regularly updated on the 2007/08 budget position and the forward budget preparations. Feedback from them indicates that they have found this an informative and valuable process, with areas that can be further developed during 2008/09. Children's Services have made every effort to maintain stability of funding for the Voluntary sector in 2007/08 and in the forward budget. The forward budget proposals include further financial support for the Alliance.

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.

TITLE FILE

Financial Management Policy Impact Assessment - http://www3.hants.gov.uk/impactassessments/cx-puimpact-tres.htm

Links(s) to Corporate Strategy
	Yes	No
Hampshire safer and more secure for all	}	_
Maximising well-being	}	_
Enhancing our quality of place	_	}

Appendices

Appendix		Colour
1	Revised budget 2007/08 - calculation of the cash limit	yellow
2	Revised budget 2007/08 - comparison with cash limit	yellow
3	Base budget 2008/09 - summary of cash limit	pink
3 - Annex 1	Base budget 2008/09 - definition of base budget	pink
3 - Annex 2	Base budget 2008/09 - significant costs of inflation	pink
3 - Annex 3	Base budget 2008/09 - significant variations from 2007/08 re-priced budget	pink
4	Proposals for growth and redeployment 2008/09, 2009/10 and 2010/11	yellow
5	Efficiency statement	yellow
6	Review of income 2008/09	yellow
7	Business units - summarised trading accounts	White
8	Revenue budget 2008/09 - analysis of variations	Blue
9	Revenue Budget 2008/09 - budget book detail	Green
10	Workforce levels and costs 2007/08 - 2009/10	Blue
11	Provisional budget 2009/10 and 2010/11	Pink
11 - Annex 1	Provisional budget 2009/10 and 2010/11 - analysis of variations	blue

				Appendix 1
Children's Services (Schools Budget)
Revised Budget 2007/08
1. Calculation of the Cash Limit for the Revised Budget 2007/08 - Schools
The following table shows the progression from the original budget for 2007/08 to the
cash limit for the revised budget 2007/08. Both are at estimated outturn prices
2007/08.
			£'000	£'000
Original budget 2007/08 at outturn prices				720,644
Transfers to/from other services				-
=	Adjusted original budget			720,644
Other variations
-	County Council contribution towards standards fund
	schemes brought forward			1,760
-	teachers' sickness and maternity cover - 2006/07 over
	spend brought forward			-641
-	variation in expenditure financed by government grants:
	o Dedicated Schools Grant		5,128
	o Standards Fund		4,577
	o Schools Standards Grant		5,528
	o General Sure Start Grant		2,244
	o School Meals grant		287
				17,764
-	reversal of one-off contribution towards balances			328
=	Cash limit for the revised budget 2007/08			739,855

2. Calculation of the Cash Limit for the Revised Budget 2007/08 - Non Schools
The following table shows the progression from the original budget for 2007/08 to the
cash limit for the revised budget 2007/08. Both are at estimated outturn prices 2007/08
		£'000	£'000
Original budget 2007/08 at outturn prices			138,787
Transfers to/from other services
	- partnership officer contracts	12
	- legal services budget	65
	- Information Technology Services	-544
	- Visual Impaired Funding	36
	- Employee Support Line	3
	- Performance Management Unit	-32
	- Out of Hours Services	-32
	- Contracts Officer post	-17	-509
=	Adjusted original budget		138,278
Other variations
-	County Council contribution towards standards fund
	schemes brought forward		46
-	Children's Trust brought forward		324
-	Local Public Service Agreement Reward Grant		233
-	transfers (to)/from other committees		38
-	variation in expenditure financed by government grants:
	o Standards Fund	688
	o Youth Opportunities Fund	367
	o Access Grant	-25
	o Local Public Service Agreement pump priming	70
	o Contact Point	132
	o Positive Activities for Young People	166
	o Publicising Positive Action	80
	o Transition Information Sessions for Parents	307
	o Parenting Early Intervention	431
	o Parenting Strategy Support	22
	o Asylum Seekers	498
	o Carers	35
	o Children's Services	45
	o Training Support Programme	165
	o Teenage Pregnancy	60	3,041
=	Cash limit for the revised budget 2007/08		141,960
3. Total Cash Limit for Children's Services
	Schools		739,855
	Non Schools		141,960
	Total Children's Services		881,815

				Appendix 2
Children's Services
Revised Budget 2007/08
Summary comparing the Revised Budget with the Cash Limit
	Cash Limit	Revised		Variation
		Budget
	£'000	£'000		£'000	%
Nursery Individual Schools Budget	1,262	1,262		-	-
Primary Individual Schools Budget	295,778	295,778		-	-
Secondary Individual Schools Budget	269,052	269,052		-	-
Special Individual Schools Budget	27,703	27,703		-	-
Insurance	37	37		-	-
Licences/subscriptions	296	296		-	-
School-specific contingencies	4,087	3,532		-555	-13.6
Supply cover (not sickness)	669	669		-	-
Supply cover - sickness and maternity	-641	-641		-	-
Schools - support services recharge	2,758	2,750		-8	-0.3
Education otherwise than at school	7,414	7,594		180	2.4
Provision for pupils with statements	7,827	7,442		-385	-4.9
Independent and voluntary special schools	8,281	7,991		-290	-3.5
Inter-authority recoupment	720	755		35	4.9
Behaviour support implementation	343	343		-	-
Special education - support services recharge	2,996	2,996		-	-
Payments for 3 and 4 year-olds	24,548	24,398		-150	-0.6
Early Years and Childcare Unit	19,784	19,784		-	-
Assistance to voluntary and private providers	2,073	2,073		-	-
Early Years - support services recharge	925	925		-	-
School catering	124	124		-	-
Standards Fund (schools non-devolved)	8,254	8,254		-	-
Ethnic Minority Achievement Service	889	889		-	-
Direct grants to schools	33,802	33,802		-	-
Teachers Pay Reform Payments	18,787	18,787		-	-
School Meals Grant	2,087	2,087		-	-
Unallocated budget	-	1,173		1,173	-
Schools Budget	739,855	739,855		-	-
SEN audit and moderation	55	55		-	-
	Cash Limit	Revised		Variation
		Budget
	£'000	£'000		£'000	%
Premature retirement compensation	2,871	2,771		-100	-3.5
Insurance	188	188		-	-
LEA initiatives	3,255	3,255		-	-
Non-delegated schools - interest, other misc.	-818	-1,049		-231	28.2
Strategic management - support services recharge	7,052	7,019		-33	-0.5
Schools home to school transport	21,238	21,445		207	1.0
Pupil support	393	326		-67	-17.0
Field, outdoor centres, INTECH and grants	343	343		-	-
Other non-delegated school budget headings	216	216		-	-
Access - support services recharge	5,443	5,269		-174	-3.2
Special education	6,637	7,043		406	6.1
LEA initiatives (special)	11	11		-	-
School improvement - support services recharge	4,602	4,505		-97	-2.1
Standards Fund (non-schools)	1,868	1,853		-15	-0.8
Teachers Pay Reform Payments	422	422		-	-
Adult education	397	397		-	-
Community	3,912	3,912		-	-
Continuing education - home to college transport	969	969		-	-
Continuing education - other	572	572		-	-
Youth service	7,120	7,148		28	0.4
Services to Schools and Support	3,539	3,539		-	-
Unallocated amendment	946	582		-364	-38.5
Service Strategy and Regulation	95	95		-	-
Commissioning and Social Work	18,587	18,304		-283	-1.5
Children Looked After	33,376	33,979		603	1.8
Family Support Services	7,613	7,276		-337	-4.4
Youth Justice	2,364	2,349		-15	-0.6
Other Children's and Families	6,134	6,606		472	7.7
Asylum Seekers	499	499		-	-
Children's Fund	1,895	1,895		-	-
Wessex Youth Offending Team	47	47		-	-
Non Distributed costs	119	119		-	-
Non-schools Budget	141,960	141,960		-	-
Total Children's Services	881,815	881,815		-	-

		Appendix 3
Children's Services
Revenue Budget 2008/09
1. Calculation of the base budget 2008/09 - summary of cash limited
expenditure - Schools
The following table shows the progression from the original budget for 2007/08
which was prepared at outturn prices 2007/08 to the base budget 2008/09 at outturn
prices 2008/09.
		£'000	£'000
Original budget 2007/08 at outturn prices			720,644
Transfers to/from other services			-
Rates Officers			-80
=	Adjusted original budget		720,564
Increases for inflation to reflect November 2007 prices (see annex 2)
-	Inflation allocated during 2007/08 from the central
	inflation contingency	4,161
-	Excess cost of inflation over inflation allowance	1,666	5,827
Original budget at November 2007 prices			726,391
Other variations (see annex 3)
-	Reductions to offset excess expenditure		-1,306
-	Allowable base budget growth
	o variations in pupil numbers	-2,277
	o revenue effects of the capital programme	155
	o reversal of one-off contribution towards balances	328
	o variations in expenditure funded by government
	grants	21,239	19,445
Allocation for future inflation			11,779
=	Base budget 2008/09 at outturn prices		756,309

2. Calculation of the Base Budget 2008/09 - Summary of Cash Limited
Expenditure - Non Schools
The following table shows the progression from the original budget for 2007/08
which was prepared at outturn prices 2007/08 to the base budget 2008/09 at outturn
prices 2008/09.
		£'000		£'000
Original budget 2007/08 at outturn prices				138,787
Transfers to/from other services
	- partnership officer contracts	12
	- legal services budget	65
	- Information Technology Services	-544
	- Visual Impaired Funding	36
	- Employee Support Line	3
	- Performance Management Unit	-32
	- Out of Hours Services	-32
	- Contracts Officer post	-17		-509
=	Adjusted original budget			138,278
Increases for inflation to reflect November 2007 prices (see annex 2)
-	Inflation allocated during 2007/08 from the central
	inflation contingency	99
-	Excess cost of inflation over inflation allowance	474		573
Original budget at November 2007 prices				138,851
Other variations (see annex 3)
-	Reductions to offset excess expenditure			-474
-	Allowable base budget growth
	o grants assimilated into area grant	12,458
	o grant assimilated into Revenue Support Grant	3,064
	o variation in the number of school days	154
	o transfers to/from other committees	-179
	o Local Public Service Agreement Reward Grant	-1,143
	o variations in expenditure funded by government
	grants	-10,777		3,577
Allocation for future inflation				3,277
=	Base budget 2008/09 at outturn prices			145,231
3. Base Budget 2008/09 - Total Schools and Non Schools
	Schools Total			756,309
	Non Schools Total			145,231
	Total base Budget for Children's Services			901,540

Annex 1 to Appendix 3

Children's Services

Calculation of base budget 2008/09

Parameters used in the compilation

1	Definitions
1.1	The first stage in the construction of the budget for 2008/09 is the preparation of a base budget. The rules used this year are similar to those applied in 2007/08, which are summarised below.
1.2	The 2008/09 base budget is defined as the current year's budget adjusted for: · allocations made for inflation in 2007/08 including the full year effect of the provision made for outstanding pay awards from 2006/07 · exclusion of expenditure included in the 2007/08 budget which was financed by the carry forward of planned underspendings from 2006/07, the one-off use of reserves or balances, or which was approved on a non-recurring basis · the revenue effect of past capital programmes, subject to its inclusion in the approved capital programme unless a specific Cabinet decision to the contrary · the full year effect of council-approved policies included in the 2007/08 original budget, which have been introduced part-way through the year · changes in income volumes which are not the result of policy decisions · correction of arithmetical errors in the current year's budget · The following specific items:
		Children's		Variations arising directly from changes in the number of pupils in schools, pupils eligible for free meals and numbers of days in the school year
		Environment		Routine highway and street lighting maintenance arising from variations in road length
				Variations in waste disposal volumes
		Adults		Increased cost of joint finance schemes with health due to operation of the taper

Annex 2 to Appendix 3

Children's Services

Calculation of base budget 2008/09

Significant costs of inflation

1.

Variation between the actual cost of inflation in 2007/08 (as at November 2007) and the

provision for inflation included in the 2007/08 budget:

£'000

£'000

Additional costs of inflation

6,400

Less

- full year effect of pay awards during 2007/08

4,522

- allocation from contingency for business rates

-

4,522

= shortfall in the provision

1,878

2.

Significant costs of inflation between 2007/08 outturn prices and

November 2007 prices.

2.1

Pay awards

£'000

Provision was originally made in 2007/08 for pay awards of 2.5%

to teachers and 2.25% to other employee groups:

9,327

The additional cost in 2008/09 of the pay awards agreed in

2007/08 is:

1,398

The pay awards agreed are:

Negotiating body

Effective date

%

Teachers

September 2007

2.5

Hampshire Management Grades

April 2007

2.475

Local Government Services Staff

April 2007

2.475

Soulbury Staff

September 2007

2.475

Youth Workers

September 2007

2.475

2.2

Non-pay inflation

£'000

Provision was originally made in 2007/08 for a net amount of:

5,528

This was for price increases of 2.5% (£5.683 million), offset by

increased income to match inflation in gross expenditure.

The additional cost of price increases other than pay, and net of

income is:

483

The most significant variations within this additional cost are

as follows:

Outturn 2007/08

Cost in

November 2007

2008/09

%

£'000

Gas

-1.1

-38

Water charges

3.8

33

Sewerage charges

5.2

84

Home to school transport

1.6

293

Car allowances

-1.5

-41

Examination fees

1.4

48

Purchase of residential services

0.9

68

3.

Allocation for future inflation in 2008/09

£'000

Provision for all pay awards of 2.5% in 2008/09

11,084

Increase in local government employers' pension contributions

356

Provision for non-pay inflation at 2.5%

4,088

Allowance for increased income

-472

Total allocation for future inflation

15,056

Annex 3 to Appendix 3

Service

Calculation of base budget 2008/09

Significant variations

Major variations between the repriced budget 2007/08 and the base budget for 2008/09 at November 2007 prices contributing to the increase/decrease of £28.057m (3.3 %) are set out below:

		Variations against the repriced 2007/08 budget
		£'000	%
	Schools
	Reduction in pupil numbers	-2,241	-0.3
	Increase in Government grants	+22,670	+2.6
	Revenue effects of capital	+155	+0.2
	Non-schools
	Increase in Government grants	+2,630	+0.3
	Inter-committee transfers	-179	-0.2

						Appendix 4
Children's Services
1. Proposals for growth and redeployment 2008/09 to 2010/11 - Schools
Proposals are shown at outturn prices for the relevant year
Agreed proposals will be incorporated into future year's base budgets and so on-going
costs are shown in the first year only. One-off costs are shown in the first year and
subtracted from the following year
					Staffing (FTEs)
	2008/09	2009/10	2010/11		2008/09	2009/10	2010/11
	£'000	£'000	£'000
Growth proposals:
Growth in Delegated Funding
Earmarked Deprivation Funding	768	0	0		0	0	0
General Deprivation Funding	1,743	2,043	3,149		75	61	87
Children in Care	1,230	0	0		35	0	0
English as Additional Language/Ethnic Minority	144	212	248		5	8	8
6 Day Exclusions	100	0	0		0	0	0
Pay and Benefits in delegated budgets	1,800	800	2,070		0	0	0
ICT for schools	1,000	0	1,000		0	0	0
Outreach work for Special	154	108	111		3	3	3
Mainstreaming Autistic Provision	110	0	110		2	0	2
Sub Total Delegated Growth	7,049	3,163	6,688		120	72	100
Growth non-delegated funding
14-19 Provision	0	0	750		0	0	0
Extended Early Years Entitlement	870	1,470	590		0	0	0
Early Years SEN	150	52	55
New SEN Early Years Resourced Provision	120	145	110
Equal Pay Fund	500	0	0		0	0	0
SEN Preventative Services	480	0	541		0	0	0
Pay and Benefits - Central Spending	116	119	159		0	0	0
Education and Inclusion Service (EIS) - day 6 issues	40	0	0		0	0	0
EIS Early Response Team and Primary Support	300	0	0		9	0	0
					Staffing (FTEs)	0	0
	2008/09	2009/10	2010/11		2008/09	2009/10	2010/11
	£'000	£'000	£'000
School Leadership Succession	135	0	0		0	0	0
Nurture Groups	60	0	0		2	0	0
EIS - Additional Primary Support	230	0	0		4	0	0
Sub Total Non Delegated growth	3,235	2,017	2,205		20	3	0
Total Growth	10,284	5,180	8,893		140	75	100
Redeployment Proposals
Statemented Pupils & out county placements	-400
Insurance Premium Reassessment	-75	0	0		0	0	0
ICT Match Funding Adjustment	-91	0	0		0	0	0
Sub Total Redeployment	-566	0	0		0	0	0
Total increase allowed in the budget guidelines	9,718	5,180	8,893		140	75	100

2. Proposals for growth and redeployment 2008/09 to 2010/11 - Non Schools
				Staffing (FTEs)
	2008/09	2009/10	2010/11	2008/09	2009/10	2010/11
	£'000	£'000	£'000
Growth proposals:
Training	120	0	0	0	0	0
Data and Information for Vulnerable Children	200	0	0	5	0	0
Home to School Transport	200	0	0	0	0	0
Right Respect and Responsibilities	50	0	0	1	0	0
Voluntary Sector Alliance	50	0	0	0	0	0
Building Schools for the Future	200	200	100	3	3	2
Children Looked After/Edge of Care Strategy	400	0	0
Foster Care (allowances, skills fees and support)	1,800	600	550	8	0	0
Social Work Resources	600	0	0	16	0	0
Permanence and Adoption	40	0	0
Family Group Conferences	150	50	50
Wessex Youth Offending Team	100	25	0	4	1	0
Direct Payments	125	0	0
Training of Educational Psychologists	120	0	0
Total Growth proposals	4,155	875	700	37	4	2
Redeployment proposals:
Core Funding (Study Centres)	-145	0	0	0	0	0
Denominational transport	-25	-25	0
Printers in Ashburton Court	-35	0	0	0	0	0
Contact Centre	-800	0	0	-16	0	0
Reduction in Independent Fostering Placements	-400	-900	-800
Residential Service savings	-80	0	0
Education Psychology savings	-120
Home Care	-125	0	0
Use of Grant Flexibility	-602	-150	-40
Total redeployment proposals	-2,332	-1,075	-840	-16	0	0
				Staffing (FTEs)
	2008/09	2009/10	2010/11	2008/09	2009/10	2010/11
	£'000	£'000	£'000
Further savings to be identified	-1,400	0	0	0	0	0
Growth to be allocated	0	1,400	1,400	0	0	0
Total net growth and redeployment proposals	423	1,200	1,260	21	4	2
2008/09 Budget Strategy:
Growth in allowable budget guideline	1,200	1,200	1,260
Less Hantsdirect (Contact Centre)	-777
Total funding available to meet growth	423	1,200	1,260
Net pressure / (funding available)	0	0	0
Total Schools and Non Schools
Growth	14,439	7,455	10,993	177	79	102
Redeployment	-2,898	-1,075	-840	-16	0	0
Net	11,541	6,380	10,153	161	79	102

Appendix 5

Children's Services

Cashable efficiency improvements 2007/08 to 2010/11

	2007/08 £000	2008/09 £000	2009/10 £000	2010/11 £000
a) Cashable efficiency improvements producing a budget saving and meeting the Government's definition of efficiency:
Early Years inflation absorbed by providers	210
Departmental Management restructure	103
Family Group Conferences	50
Market Supplement Changes	135
Contact Centre		800
Independent Fostering Providers	100	400	900	800
Sub Total	598	1,200	900	800
b) Cashable efficiency improvements not producing a budget saving:
Increments and regradings	310	355	364	372
Home to School Contracts	197
Supporting extra 3 year olds	17	17	17	17
Teenage Pregnancy	25
Sub Total	549	372	381	389
Total cashable efficiency improvements	1,147	1,572	1,281	1,189
% of base budget (non-schools)	0.8%	1.1%	0.8%	0.8%

Notes

Cashable efficiency improvements occur when:

- inputs (money, people, assets etc) are reduced but outputs remain unchanged

- the price of inputs (procurement, labour costs etc) are reduced but outputs remain unchanged.

a) Cashable efficiency improvements producing budget savings and meeting the Government's definition of efficiency include general procurement savings against the budget provision of a 2.5% increase in prices.

b) Cashable efficiency improvements not producing budget savings arise because the efficiency is avoiding unbudgeted cost e.g. staff reductions made to absorb increments, procurement efficiencies where costs are still exceeding 2.5%, capital receipts or developer contributions applied to avoid unplanned additional borrowing

Appendix 6

Children's Services

Review of income 2008/09

		Current charge	Total income	Date of last review	Planned date for next review	Proposed increase to (if proposed now)	Is charge set to recover full cost Yes/No	Is charge determined locally? Yes/No
		£	£			£
1	Mandatory/National charges
	Inter-authority recoupment	Based on cost of placement	2,634,000	April 2007	April 2008		Yes	Annually calculated to national guidelines
	Penalty notices for parents of truants and excluded pupils	£50 / £100	2,000	February 2004	Not known			Charges are set nationally

		Current charge	Total income	Date of last review	Planned date for next review	Proposed increase to (if proposed now)	Is charge set to recover full cost Yes/No	Is charge determined locally? Yes/No
		£	£			£
2	Discretionary charges
	Sale of milk to infants	0.11	81,000	April 2007	April 2008	0.13	No	Calculated annually to reflect cost
	Rents for staff accommodation		126,000	September 2007	September 2008			Annual rent review by PBRS
	Education Psychology Service		56,000	April 2007	April 2008		Yes	External income, contracts reviewed annually
	Specialist Teacher Advisory Service		6,000	April 2007	April 2008		Yes	Charges to Post 16 sector, reviewed annually
	Outdoor Education (Recharge to OLAs)		55,000	April 2007	April 2008		Yes (SLA)	Contribution towards cost.

		Current charge	Total income	Date of last review	Planned date for next review	Proposed increase to (if proposed now)	Is charge set to recover full cost Yes/No	Is charge determined locally? Yes/No
		£	£			£
	Privileged Transport (school pupils)		210,000	September 2007	September 2008		Yes - extra cost is covered	Contribution towards cost
	Privileged Transport (continuing education)		100,000	September 2007	September 2008		Yes - extra cost is covered	Contribution towards cost
	Residential Accommodation for Children (Weekly):
	Community Homes	2,048	0	April 2007	April 2008	2,099	Yes	No
	Secure Unit (Swanwick Lodge)	4,200	2,551,000	April 2007	April 2008	4,305	Yes	No

		Current charge	Total income	Date of last review	Planned date for next review	Proposed increase to (if proposed now)	Is charge set to recover full cost Yes/No	Is charge determined locally? Yes/No
		£	£			£
	Homes for Children with Disabilities	2,408	0	April 2007	April 2008	2,468	Yes	No
	Other Charges:
	Parental Contribution (weekly)	38	20,000	April 2007	April 2008	39	No	Yes
	Hire of Rooms per hour	25	0	April 2007	April 2008	26	Yes	No
	Hire of accommodation - children's centres	Varies	109,000	none	April 2008	Varies	No	Yes
		Current charge	Total income	Date of last review	Planned date for next review	Proposed increase to (if proposed now)	Is charge set to recover full cost Yes/No	Is charge determined locally? Yes/No
		£	£			£
	Hampshire Foster Care Placement Management Charge - per week	238	0	April 2007	April 2008	245.00	Yes	No
	Foster Care Assessments	2,144	0	April 2007	April 2008	2,198	Yes	No
3	Services provided free where charges could be made		Nil
	Total		5,950,000

Children's Services								Appendix 7
Revenue Budget 2008/09
Services to Schools Business Units - Summarised Trading Accounts
	Education Financial Services	ICT Support & Development	Education Personnel Services	Hampshire Governor Services	Stubbington Study Centre	Hampshire Inspection & Advisory Service	Minstead Study Centre	Hampshire Music Service	Total
	(EFS)	(ICT)	(EPS)	(GS)	(SSC)	(HIAS)	(MSC)	(HMS)
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Income	1,017	5,110	1,703	1,417	587	10,224	218	6,428	26,704
Less Expenditure	997	5,001	1,784	1,400	623	10,752	271	6,453	27,281
Forecast Surplus / (Deficit)	20	109	(81)	17	(36)	(528)	(53)	(25)	(577)
Add estimated reserves brought fwd 1/4/08	99	(203)	(5)	218	458	358	29	26	980
Estimated reserves at 31/3/09	119	(94)	(86)	235	422	(170)	(24)	1	403

								Appendix 8
Children's Services
Revenue budget 2008/09
Analysis of Variations
	Adjusted	Variation in			Inflation			Growth &	2008/09
	original	inflation to		Other	allocation			redeploy-	Revenue
	budget	November		variations	to 2008/09			ment	budget
	2007/08	2007 prices			outturn			proposals
	£'000	£'000	%	£'000	£'000		%	£'000	£'000
Cash limited expenditure
Nursery Individual Schools Budget	1,217	9	0.7	23	24		1.9	10	1,283
Primary Individual Schools Budget	293,455	2,600	0.9	-501	5,086		1.7	3,618	304,258
Secondary Individual Schools Budget	270,380	2,499	0.9	410	4,408		1.6	2,569	280,266
Special Individual Schools Budget	27,505	226	0.8	50	532		1.9	777	29,090
Insurance	37	-	-	-	1		2.7	-	38
Licences/subscriptions	296	-	-	-	7		2.4	-	303
School-specific contingencies	231	-	-	328	14		2.5	500	1,073
Supply cover (not sickness)	669	7	1.0	-1	11		1.6	-	686
Schools - support services recharge	2,980	-	-	-222	68		2.5	186	3,012
Education otherwise than at school	7,157	134	1.9	40	128		1.7	655	8,114
Provision for pupils with statements	7,827	22	0.3	-15	204		2.6	409	8,447
Independent and voluntary special schools	8,281	-	-	-	202		2.4	295	8,778
	Adjusted	Variation in			Inflation			Growth &	2008/09
	original	inflation to		Other	allocation			redeploy-	Revenue
	budget	November		variations	to 2008/09			ment	budget
	2007/08	2007 prices			outturn			proposals
	£'000	£'000	%	£'000	£'000		%	£'000	£'000
Inter-authority recoupment	720	-	-	-	18		2.5	-	738
Behaviour support implementation	216	-	-	500	8		1.1	-	724
Special education - support services recharge	2,996	-	-	-	75		2.5	70	3,141
Payments for 3 and 4 year-olds	23,748	-	-	1,750	637		2.5	720	26,855
Early Years and Childcare Unit	16,073	4	-	1,893	-		-	-	17,970
Assistance to voluntary and private providers	2,073	1	-	-2	49		2.4	-	2,121
Early Years - support services recharge	974	-	-	-	24		2.5	-	998
School catering	120	-	-	34	4		2.6	-	158
Standards Fund (schools non-devolved)	4,335	-	-	9,817	-		-	-91	14,061
Ethnic Minority Achievement Service	711	3	0.4	269	12		1.2	-	995
Direct grants to schools	28,274	-	-	5,528	-		-	-	33,802
Teachers Pay Reform Payments	18,569	322	1.7	-42	267		1.4	-	19,116
School Meals Grant	1,800	-	-	-1,800	-		-	-	-
Schools Budget	720,644	5,827	0.8	18,059	11,779		1.6	9,718	766,027
SEN audit and moderation	55	-	-	-	1		1.8	-	56
Premature retirement compensation	2,872	25	0.9	-8	103		3.6	-100	2,892
Insurance	188	-	-	-	4		2.1	-	192
LEA initiatives	3,241	-	-	-	90		2.8	-	3,331
Non-delegated schools - interest, other misc.	-802	-	-	-	-19		2.4	-200	-1,021
Strategic management - support services recharge	7,019	29	0.4	-418	147		2.2	565	7,342
	Adjusted	Variation in			Inflation			Growth &	2008/09
	original	inflation to		Other	allocation			redeploy-	Revenue
	budget	November		variations	to 2008/09			ment	budget
	2007/08	2007 prices			outturn			proposals
	£'000	£'000	%	£'000	£'000		%	£'000	£'000
Schools home to school transport	21,136	309	1.5	-278	506		2.4	175	21,848
Pupil support	408	-	-	-15	9		2.3	-70	332
Field, outdoor centres, INTECH and grants	209	1	0.5	-121	1		1.1	-	90
Other non-delegated school budget headings	216	-15	-6.9	15	4		1.9	-	220
Access - support services recharge	5,443	22	0.4	-22	114		2.1	-	5,557
Special education	6,637	27	0.4	-27	139		2.1	-	6,776
LEA initiatives (special)	11	-	-	1	-		-	-	12
School improvement - support services recharge	4,602	18	0.4	-18	96		2.1	-	4,698
Standards Fund - non-devolved	6,201	-	-	2,327	-		-	-172	8,356
Teachers Pay Reform Payments	422	5	1.2	-1	6		1.4	-	432
Adult education	381	-	-	-	5		1.3	-	386
Community	1,957	-	-	1,002	64		2.2	-	3,023
Home to college transport	955	21	2.2	103	26		2.4	-	1,105
Continuing education - other	572	5	0.9	1	21		3.6	-	599
Youth service	6,575	32	0.5	67	123		1.8	-	6,797
Unallocated amendment	915	-	-	-943	214		-	-89	97
Service Strategy and Regulation	95	-	-	-	2		2.1	-	97
Commissioning and Social Work	17,701	19	0.1	679	480		2.6	-148	18,731
Children Looked After	34,465	74	0.2	-1,529	810		2.5	357	34,177
Family Support Services	6,942	-8	-0.1	568	179		2.4	17	7,698
	Adjusted	Variation in			Inflation			Growth &	2008/09
	original	inflation to		Other	allocation			redeploy-	Revenue
	budget	November		variations	to 2008/09			ment	budget
	2007/08	2007 prices			outturn			proposals
	£'000	£'000	%	£'000	£'000		%	£'000	£'000
Youth Justice	2,354	2	0.1	-125	49		2.2	106	2,386
Other Children's and Families	5,289	1	-	1,556	98		1.4	-18	6,926
Asylum Seekers	157	-	-	342	-		-	-	499
Children's Fund	1,895	1	0.1	-1	-		-	-	1,895
Wessex Youth Offending Team	47	4	8.5	-51	-		-	-	-
Unapportionable overheads	119	1	0.8	-	5		4.2	-	125
Non-schools Budget	138,277	573	0.4	3,104	3,277		2.3	423	145,654
Total base budget	858,921	6,400	0.7	21,163	15,056	1.7		10,141	911,681
Capital charges	43,671	-	-	-	-	-		-	43,671
Charges to Corporate & Democratic Core	-1,149	-	-	1,862	-	-		-	713
Income/expenditure transferred
(to)/from reserves	1,617	-	-	-1,040	-	-		-	577
Total net expenditure before grant	903,060	6,400	0.7	21,985	15,056	1.6		10,141	956,642
	Adjusted	Variation in			Inflation			Growth &	2008/09
	original	inflation to		Other	allocation			redeploy-	Revenue
	budget	November		variations	to 2008/09			ment	budget
	2007/08	2007 prices			outturn			proposals
	£'000	£'000	%	£'000	£'000		%	£'000	£'000
Specific government grants
Dedicated Schools Grant	644,917	-	-	26,083	-	-		-	671,000
Standards Fund - Schools Budget	40,482	-	-	13,270	-	-		-	53,752
Standards Fund - non-schools Budget	5,037	-	-	-3,953	-	-		-	1,084
Sure Start Early Years & Childcare - Schools	16,074	-	-	1,897	-	-		-	17,971
Sure Start Early Years & Childcare - Community	-	-	-	1,002	-	-		-	1,002
Schools Standards Grant	28,274	-	-	5,528	-	-		-	33,802
School Meals Grant	1,800	-	-	-1,800	-	-		-	-
14-19 Diploma Grant	-	-	-	400	-	-		-	400
European Social Fund	125		-	30	-	-		-	155
Local Public Service Agreement II	100	-	-	-100	-	-		-	-
Schools Access Fund	25	-	-	-25	-	-		-	-
Youth Opportunities Fund	594	-	-	-	-	-		-	594
Contact Point	387	-	-	-30	-	-		-	357
Aiming Higher for Disabled Children	-	-	-	70	-	-		-	70
Unaccompanied Asylum Seeking Children	158	-	-	342	-	-		-	500
Child and Adolescent Mental Health	1,304	-	-	-1,304	-	-		-	-
Carers Carry Forward	663	-	-	-573	-	-		-	90
Children's Fund	1,895	-	-	-1,895	-	-		-	-
Children's Services	3,064	-	-	-3,064	-	-		-	-
	Adjusted	Variation in			Inflation			Growth &	2008/09
	original	inflation to		Other	allocation			redeploy-	Revenue
	budget	November		variations	to 2008/09			ment	budget
	2007/08	2007 prices			outturn			proposals
	£'000	£'000	%	£'000	£'000		%	£'000	£'000
Workforce Grant	872	-	-	-872	-	-		-	-
Teenage Pregnancy	325	-	-	-325	-	-		-	-
Youth Justice Board	50	-	-	-50	-	-		-	-
Total Specific Government Grant	746,146	-	-	34,631	-	-		-	780,777
Total net expenditure	156,914	6,400	4.1	-12,646	15,056	10.0		10,141	175,865

	Appendix 9
Children's Services
Revenue Budget 2008/09
Reconciliation of the original 2007/08 budget on the following pages with the 2007/08
budget in the budget book
	Original
	Budget	Budget
	2007/08	2008/09
	£'000	£'000
Budget Limit
Total net expenditure on page B25 of the budget book	859,431
Transfers (to) / from Other Committees	-510
Total net expenditure for 2007/08 original budget on page 3	858,921	911,681
Capital charges	43,671	43,671
Adjustment for Pension costs	-1,149	713
Income / expenditure transferred (to) / from reserves	1,617	577
Total budget controlled by Committee	903,060	956,642
Budgets controlled by Policy and Resources Committee	13,757
Total net expenditure	916,817

Appendix 10

Children's Services

Workforce levels and costs

(excluding school staffing and business units)

	2007/08	2008/09
	£'000	£'000
Analysis of workforce costs in base budget:
Salaries of permanent staff (including employer's national insurance and pension contributions)	58,595	59,586
Temporary/fixed term/casual staff	619	701
Agency staff	46	48
Additional hours	-	-
Total workforce costs	59,260	60,335
Average FTE staff actually in post	1,838	1,836
Staffing changes in growth, savings and redeployment proposals:
Variation in staff (FTEs)		21
Variation in budget (£'000)		770
Workforce implications of budget proposals:
FTE posts available		1,857
Workforce budget available (£'000)		61,105

		Appendix 11
Children's Services
1. Provisional budget 2009/10 and 2010/11 - Schools
The following table shows the progression from the 2008/09 proposed budget at
outturn prices to the provisional budget for 2009/10 and 2010/11 at outturn prices.
		£'000	£'000
Proposed budget 2008/09 at outturn prices			766,027
-	Base budget variations:	426
-	Exclusion of non-recurring 2008/09 expenditure	-
-	Full year effect of 2008/09 growth proposals	-	426
Growth and redeployment proposals			5,180
Allocation for future inflation			16,175
Provisional budget 2009/10 at outturn prices			787,808
-	Base budget variations:	4,033
-	Exclusion of non-recurring 2008/09 expenditure	-
-	Full year effect of 2008/09 growth proposals	-	4,033
Growth and redeployment proposals			8,893
Allocation for future inflation			16,988
Provisional budget 2010/11 at outturn prices			817,722

2. Provisional budget 2009/10 and 2010/11 - Non Schools
The following table shows the progression from the 2008/09 proposed budget at
outturn prices to the provisional budget for 2009/10 and 2010/11 at outturn prices.
		£'000	£'000
Proposed budget 2008/09 at outturn prices			145,654
-	Base budget variations:	1,735
-	Exclusion of non-recurring 2008/09 expenditure	-
-	Full year effect of 2008/09 growth proposals	-	1,735
Growth and redeployment proposals			1,200
Allocation for future inflation			3,372
Provisional budget 2009/10 at outturn prices			151,961
-	Base budget variations:	1,887
-	Exclusion of non-recurring 2008/09 expenditure	-
-	Full year effect of 2008/09 growth proposals	-	1,887
Growth and redeployment proposals			1,260
Allocation for future inflation			3,491
Provisional budget 2010/11 at outturn prices			158,599
3. Total of Schools and Non Schools
	2008/09		911,681
	2009/10		939,769
	2010/11		976,321

																			Annex 1 to Appendix 11
Children's Service
Provisional budget 2009/10 and 20010/11
Analysis of Variations
	Proposed		Base			Growth			Inflation						Prov-		Base			Growth	Inflation				Prov-
	Budget		Budget			and			allocation						isional		Budget			and	allocation				isional
	2008/09		Variations			redeploy			to 2009/10						Budget		Variations			redeploy	to 2010/11				Budget
						-ment			outturn						2009/10					-ment	outturn				2010/11
	£'000		£'000			£'000			£'000				%		£'000		£'000			£'000	£'000		%		£'000
Cash limited expenditure
Nursery Individual Schools Budget	1,283		-			-			33				2.6		1,316		-			-	35		2.7		1,351
Primary Individual Schools Budget	304,258		-1,170			1,528			6,985				2.3		311,601		-245			3,234	7,335		2.4		321,925
Secondary Individual Schools Budget	280,266		-1,340			1,222			6,053				2.2		286,201		-514			2,697	6,357		2.2		294,741
Special Individual Schools Budget	29,090		180			414			731				2.5		30,415		50			757	768		2.5		31,990
Insurance	38		-			-			1				2.6		39		-			-	1		2.6		40
Licences/subscriptions	303		-			-			10				3.3		313		-			-	11		3.5		324
School-specific contingencies	1,073		-			-			19				1.8		1,092		-			-	20		1.8		1,112
Supply cover (not sickness)	686		-			-			15				2.2		701		-			-	16		2.3		717
Schools - support services recharge	3,012		-			11			93				3.1		3,116		-			11	98		3.1		3,225
Education otherwise than at school	8,114		-			-11			176				2.2		8,279		-			-22	185		2.2		8,442
Provision for pupils with statements	8,447		-			210			280				3.3		8,937		-			158	294		3.3		9,389
Independent, voluntary special schools	8,778		-			52			277				3.2		9,107		-			55	291		3.2		9,453
	Proposed		Base			Growth			Inflation allocation to 2009/10 outturn						Prov-		Base			Growth	Inflation				Prov-
	Budget		Budget			and									isional		Budget			and	allocation				isional
	2008/09		Variations			redeploy									Budget		Variations			redeploy	to 2010/11				Budget
						-ment									2009/10					-ment	outturn				2010/11
	£'000		£'000			£'000			£'000				%		£'000		£'000			£'000	£'000		%		£'000
Inter-authority recoupment	738		-			-			25		3.4				763		-			-	26		3.4		789
Behaviour support implementation	724		-			11			11		1.5				746		-			762	12		1.6		1,520
Special education - support services	3,141		-			273			103		3.3				3,517		-			651	108		3.1		4,276
Payments for 3 and 4 year-olds	26,855		900			1,470			875			3.2			30,100		786			590	919		3.0		32,395
Early Years and Childcare Unit	17,970		3,885			-			-			-			21,855		3,791				-		-		25,646
Assistance to voluntary and private providers	2,121		-			-			67			3.2			2,188		-			-	70		3.2		2,258
Early Years - support services recharge	998		-			-			33			3.3			1,031		-			-	35		3.4		1,066
School catering	158		-			-			5			3.2			163		-			-	5		3.1		168
Standards Fund (schools non-devolved)	14,061		-2,095						-			-			11,966		133			-	-		-		12,099
Ethnic Minority Achievement Service	995		66			-			16			1.5			1,077		32			-	17		1.5		1,126
Direct grants to schools	33,802		-			-			-			-			33,802		-			-	-		-		33,802
Teachers Pay Reform Payments	19,116		-			-			367			1.9			19,483		-			-	385		2.0		19,868
School Meals Grant	-		-			-			-			-			-		-			-	-		-		-
Schools Budget	766,027		426			5,180			16,175			2.1			787,808		4,033			8,893	16,988		2.1		817,722
SEN audit and moderation	56		-			-			1			1.8			57		-			-	1		1.8		58
Premature retirement compensation	2,892		-			-			106			3.7			2,998		-			-	110		3.7		3,108
Insurance	192		-			-			4			2.1			196		-			-	4		2.0		200
LEA initiatives	3,331		-			-			93			2.8			3,424		-			-	96		2.8		3,520
	Proposed		Base			Growth			Inflation						Prov-		Base			Growth	Inflation				Prov-
	Budget		Budget			and			allocation						isional		Budget			and	allocation				isional
	2008/09		Variations			redeploy			to 2009/10						Budget		Variations			redeploy	to 2010/11				Budget
						-ment			outturn						2009/10					-ment	outturn				2010/11
	£'000		£'000			£'000			£'000			%			£'000		£'000			£'000	£'000		%		£'000
Non-delegated schools - interest, other misc.	-1,021		-			-			-20			2.0			-1,041		-			-	-20		1.9		-1,061
Strategic management - support services	7,342		-			-49			151			2.1			7,444		-			50	157		2.1		7,651
Schools home to school transport	21,848		-			-25			521			2.4			22,344		-			-	539		2.4		22,883
Pupil support	332		-			-			9			2.7			341		-			-	10		2.9		351
Field, outdoor centres, INTECH, grants	90		-			-			1			1.1			91		-			-	1		1.1		92
Other non-delegated school budgets	220		-			-			4			1.8			224		-			-	4		1.8		228
Access - support services recharge	5,557		-			200			117			2.1			5,874		-			100	121		2.1		6,095
Special education	6,776		-			-			143			2.1			6,919		-			-	148		2.1		7,067
LEA initiatives (special)	12		-			-			-			-			12		-			-	-		-		12
School improvement - support services	4,698		1			-			99			2.1			4,798		1			-	102		2.1		4,901
Standards Fund - non-devolved	8,356		1,310			-11			-			-			9,655		-1,573			-	-		-		8,082
Teachers Pay Reform Payments	432		-			-			6			1.4			438		-			-	6		1.4		444
Adult education	386		-			-			5			1.3			391		-			-	5		1.3		396
Community	3,023		-1,002			-			66			3.3			2,087		-			-	68		3.3		2,155
Home to college transport	1,105		-			-			27			2.4			1,132		-			-	28		2.5		1,160
Continuing education - other	599		-			-			22			3.7			621		-			-	22		3.5		643
Youth service	6,797		119			-			127			1.8			7,043		85			-	131		1.8		7,259
Unallocated amendment	97		5			-40			220			-			282		14			-40	230		-		486
Service Strategy and Regulation	97		-			-			2			2.1			99		-			-	2		2.0		101
	Proposed		Base			Growth			Inflation						Prov-		Base			Growth	Inflation				Prov-
	Budget		Budget			and			allocation						isional		Budget			and	allocation				isional
	2008/09		Variations			redeploy			to 2009/10						Budget		Variations			redeploy	to 2010/11				Budget
						-ment			outturn						2009/10					-ment	outturn				2010/11
	£'000		£'000			£'000			£'000			%			£'000		£'000			£'000	£'000		%		£'000
Commissioning and Social Work	18,731		-152			-			494			2.7			19,073		4			-	511		2.7		19,588
Children Looked After	34,177		1,216			1,100			834			2.4			37,327		3,110			1,150	863		2.1		42,450
Family Support Services	7,698		-50			-			184			2.4			7,832		-			-	191		2.4		8,023
Youth Justice	2,386		-17			25			50			2.1			2,444		-			-	52		2.1		2,496
Other Children's and Families	6,926		305			-			101			1.4			7,332		246			-	104		1.4		7,682
Asylum Seekers	499		-			-			-			-			499		-			-	-		-		499
Children's Fund	1,895		-			-			-			-			1,895		-			-	-		-		1,895
Wessex Youth Offending Team	-		-			-			-			-			-		-			-	-		-		-
Unapportionable overheads	125		-			-			5			4.0			130		-			-	5		3.8		135
Non-schools Budget	145,654		1,735			1,200			3,372			2.3			151,961		1,887			1,260	3,491		2.3		158,599
Total base budget	911,681		2,161			6,380			19,547			2.1			939,769		5,920			10,153	20,479		2.2		976,321
Capital charges	43,671		-			-			-			-			43,671		-			-	-		-		43,671
Charges to Corporate & Democratic Core	713		-			-			-			-			713		-			-	-		-		713
Income/expenditure transferred
(to)/from reserves	577		-577			-			-			-			-		-			-	-		-		-
Total net expenditure before grant	956,642		1,584			6,380			19,547			2.0			984,153		5,920			10,153	20,479		2.1		1,020,705
	Proposed		Base			Growth			Inflation						Prov-		Base			Growth	Inflation				Prov-
	Budget		Budget			and			allocation						isional		Budget			and	allocation				isional
	2008/09		Variations			redeploy			to 2009/10						Budget		Variations			redeploy	to 2010/11				Budget
						-ment			outturn						2009/10					-ment	outturn				2010/11
	£'000		£'000			£'000			£'000			%			£'000		£'000			£'000	£'000		%		£'000
Specific government grants
Dedicated Schools Grant	671,000		20,605			-			-			-			691,605		26,245			-	-		-		717,850
Standards Fund - Schools Budget	53,752		-2,029			-			-			-			51,723		165			-	-		-		51,888
Standards Fund - non-schools Budget	1,084		-			-			-			-			1,084		-			-	-		-		1,084
Sure Start Early Years & Childcare - Schools	17,971		3,886			-			-			-			21,857		3,790			-	-		-		25,647
Sure Start Early Years & Childcare - Community	1,002		-1,002			-			-			-			-		-			-	-		-		-
Schools Standards Grant	33,802		-			-			-			-			33,802		-			-	-		-		33,802
14-19 Diploma Grant	400		-400			-			-			-			-		-			-	-		-		-
European Social Fund	155		-			-			-			-			155		-			-	-		-		155
Youth Opportunities Fund	594		-			-			-			-			594		-			-	-		-		594
Contact Point	357		-357			-			-			-			-		-			-	-		-		-
Aiming High for Disabled Children	70		1,327			-			-			-			1,397		3,110			-	-		-		4,507
Unaccompanied Asylum Seeking Children	500		-			-			-			-			500		-			-	-		-		500
Carers - Carry Forward	90		-90			-			-			-			-		-			-	-		-		-
Total Specific Government Grant	780,777		21,940			-			-			-			802,717		33,310			-	-		-		836,027
Total net expenditure	175,865		-20,356			6,380			19,547			-			181,436		-27,390			10,153	20,479		-		184,678