Redcar & Cleveland Council is proposing to invest £18.7m into caring for vulnerable children and adults to meet an unprecedented demand for its services.
The ongoing huge demand means the additional funding is expected to be needed to cover steep increases in the cost of providing for children in care and supporting older residents.
The investment is included in the council’s budget proposals for next year.
The council has seen a significant increase in the number of children coming into care, particularly those with complex needs who require specialist care in residential accommodation.
The council has a legal duty to provide suitable accommodation, and a shortage of places nationally means the cost of this has risen significantly in recent years.
The average cost for residential and supported accommodation for young people who require specialist care and support is £330,000 each per year.
The cost driven by demand for residential placements for children in our care is currently forecast exceed the budget by £11.9 million in this financial year. Part of the proposed investment in next year’s budget is to offset the additional £11.9m.
Demographic and cost pressures are reflected in the number of vulnerable adults requiring care – and further provision is expected to be needed as Redcar and Cleveland has an older population in comparison with other areas of the North East.
The Council is also proposing to invest in waste disposal, where the cost of dealing with the borough’s waste is expected to rise significantly next year.
The Council is proposing a balanced budget, with proposed savings of £8.8m.
These include the sale of assets, such as lands and buildings, developing more in-house provision for children in care, a review of home to school transport funding and a review of fees and charges for council services.
The Council hopes the development of the Teesworks site will provide significant income through Business Rates in the years to come if companies which have expressed interest in locating there set up business.
However, if and when this happens is not confirmed, and any Business Rates which are expected in the coming year have been factored into the budget.
Cllr Christopher Massey, Cabinet member for Resources, said:
“The council’s financial situation remains extremely challenging and we have been faced with some difficult decisions about how to match our income with our outgoings.
“The cost of looking after children in our care – and particularly those in residential accommodation – is a national issue and one which the Government has recognised.
“We have seen a steep increase in the number of children coming into care and the cost of providing for this is a significant financial challenge. However, we have a legal and moral duty to keep children in our care safe and provide them with the best possible start in life.
“Our staff across all our services are working tremendously hard to provide help and support every day of the year in very challenging circumstances and I would like to thank them and elected members for working together to meet our financial challenges in a way which minimises the effect to the public.
“We have plans to address the main budget issues we face and we have made sensible decisions about raising revenue through the sale of some of our assets which will not affect our frontline services.
“We hope to see a more prosperous future for all our residents through the development of Teesworks, but we cannot plan for this until companies are fully confirmed and they start trading.”