THE forecast overspend for the year by health chiefs in Argyll and Bute has dipped below the £300,000 mark, a report has revealed.
The area’s health and social care partnership (HSCP) had predicted a £1.6million overspend after three months of the financial year, which began in April.
That was quickly reduced to £800,000 after detailed analysis of social work budgets and, by the end of October, had been lowered further to £681,000.
At the end of November, the forecast overspend for the end of March 2022 stood at £281,000.
A report considered by members of the HSCP’s integration joint board last week also acknowledged that responding to the Omicron variant of Covid-19 “does present an additional risk” to the partnership’s planned savings.
James Gow, the HSCP’s head of finance and transformation, said: “The forecast position has improved further and is now of reduced concern.
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“A year-end overspend of £280,000 is forecast against the budget of £307million. The position has improved significantly and does not yet take into account all of the additional funding allocations announced in late 2021.
“Recruitment and planning work is underway to deliver increased capacity over the winter in line with Government priorities. Some of this funding will address cost pressures already forecast.
“The forecast is based on a number of assumptions and there are risks associated with it, these are reviewed in detail bi-monthly and summarised in this report. As the year progresses, uncertainty reduces and the risk summary reflects this.
“The forecast overspend is of reduced concern, however, the prioritisation of the Omicron response does present an additional risk to the savings programme in the last quarter of the year.
“The financial position is now a standing item on the senior leadership team agenda and is reported and discussed in detail every month, in addition to routine monitoring carried out by service managers in partnership with the finance and service improvement teams.”
Mr Gow added: “There are services where overspending is continuing and there is slippage with the delivery of savings target.
“However, recruitment of staff has become problematic in some services, this is resulting in increased vacancies, reductions in care packages and reduced spend.
“There is now a high degree of confidence that the HSCP will operate within the resources available to it. There is on-going engagement with [Argyll and Bute] Council and NHS Highland to ensure an effective approach is being taken to manage the position.”
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