Home Care Costs Hit Budget Targets

The decision to stop charging pensioners for home care helped push Falkirk Council spending £1.5 million over target in the first three months of the new financial year. It has been confirmed the move, welcomed by OAP groups but taken after spending levels for 2006/2007 were set in February, will cost the social work department an estimated extra £407,000. The cost of children’s residential care, community care and 24-hour care is also up by £230,000 more than planned, while figures show departments, including education and corporate and commercial services, also failed to meet targets.

Wages for teachers and supply cover were £340,000 more than expected and the cost of emptying the district’s bins went up by £103,000.

The only ‘plus’ in finance director Alex Jannetta’s report on spending was a projected saving of £213,000 in loan charges, thanks to a reduction in the level of debt. The accounts ‘black hole’ puts pressure on staff to make the efficiency savings of £1.5 million identified.

Mr Jannetta told the policy and resources committee: “It’s early days and I am confident of hitting the targets agreed.”

But he warned that failure to deliver the savings will trim the council’s cash reserves to about £8 million and by even more if the cost of introducing the single status deal still being negotiated with the unions is greater than budgeted for.

The council’s policy is to hold back around two per cent of its budget in a general fund as a contingency against “unforseen events and emergencies”. Some is used to peg the annual increase in council tax to relatively stable levels over the short to medium term.

The committee was told the equal pay and single status issues were “major commitments” but the aim remained to protect council tax payers.

Council leader David Alexander said: “Budget decisions have a knock-on effect, however it’s clear, due to circumstances outwith our control, it’s going to be a bumpy ride over the next few years.”