IJB debts pose risk to council

THE huge strain on health and social care services in Dumfries and Galloway is threatening the council’s “overall financial resilience”, council chiefs have warned. The region’s Integration Joint Board (IJB) is facing a funding shortfall of nearly £58 million this financial year, which means there will be severe cuts to health and social care that will impact elderly and vulnerable residents across the region. With £12.5m of this funding deficit relating to services delegated to Dumfries and Galloway Council, proposals were been drawn up for a major review of complex care in the region. It was hoped this would bring the funding deficit down from £12.5m to £6.65m. However, the financial picture is worse than initially thought and it is now posing a risk to the council, according to a report prepared for councillors. Gillian Ross, corporate finance and accounting manager, wrote: “Recent monitoring has highlighted delays and difficulties encountered in the delivery of savings, resulting in a risk that the previously projected IJB overspend could increase, rather than reduce, from the £6.65m reflected in those reports. “While the IJB has a statutory duty to deliver a balanced out-turn position, the agreed integration scheme indicates that where the recovery plan/agreed corrective action to address the overspend is not successful, the IJB can seek an additional payment from the council – as sought in 2024/25. “The potential overspending by the IJB therefore presents a very significant risk to the council, given the extent of the forecast potential overspend.” Deeper health and social care cuts than expected could be on the cards in order to balance the books. The council report states: “It is important to recognise the council is not in a position to provide significant additional recurring funding to address the extent of overspending being incurred. “It is therefore apparent that significant service change will be required to ensure that expenditure is contained within affordable and sustainable levels going forward. “Given the extent of currently projected overspending and the associated risk to the council, a review is currently being undertaken on the options available in the event that the council will be required to make potentially significant unbudgeted payment to the IJB at the end of the current financial year. “It is important to recognise that, depending on the level of additional payment required, this is unlikely to be achieved without impacting on wider council services and potentially on the council’s overall financial resilience.” Councillors will discuss the situation at next Tuesday’s enabling and customer services committee meeting.