Decision details

Consideration was given to a report of the Director of Finance which presented a proposal to increase the Council’s proposed contribution to the pooled budget managed via a Section 75 Funding Agreement which operated between Oldham Council and Oldham Clinical Commissioning Group (CCG). In addition to transferring budgets for existing services into the pooled arrangement, it was proposed to increase the Council’s contribution by £5.9m in 2019/20. This would support the financial resilience plan of the CCG whilst it was undergoing transformation to achieve future efficiencies and in turn support the wider Oldham healthcare economy over the next four financial years. It was anticipated that the investment would be reversed and that the Council would then pay a reduced contribution into the pool between 2021/22 and 2023/24.

The report outlined the issues around the potential allocation of £5.9m of Oldham Council reserves to support the financial recovery plan of Oldham CCG in 2019/20 and support the wider Oldham healthcare economy benefiting all our residents.

The Cabinet were informed that, as the 2019/20 Section 75 Pooled Funding Agreement between the Council and the CCG was currently being reviewed, a revision to the phasing of previously anticipated contributions could be agreed. It was proposed that the use of reserves of £5.9m would increase the Council’s contribution to the pooled budget for the financial year 2019/20, with reduced contributions from 2021/22 to 2023/24. This would allow the Council to put investment into the CCG so that the CCG could initiate work that could

otherwise be delayed at this stage of the integration process. This would support the delivery of longer-term savings and efficiencies across the CCG, the Council and the wider Oldham healthcare economy.

Cabinet noted the CCG would subsequently contribute an additional £5.9m to the pool over the period 2021/22 to 2023/24, thereby enabling the Council to reverse the investments made and replenish reserves. The use of reserves in this way demonstrated the great progress made with regards to integration and how this was of benefit to the people of Oldham.

Options/Alternatives considered:

·       Option 1 – Do nothing.

·       Option 2 – Increase the Council contribution to the pooled fund in 2019/20 by £5.9m to support the CCG, recognising in doing so that the Council must be satisfied that there are clear and demonstrable benefits to the Council Taxpayers of Oldham.

RESOLVED – That the use of £5.9m of Council reserves to provide additional investment supporting transformation to Oldham CCG in 2019/20 be approved.