Democracy Spraffa

Budget Outlook Appendix 1

Argyll and Bute Council · 25 September 2024
Back to Argyll and Bute HSCP Integration Joint Board (IJB) — 25 September 2024 and its agenda

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Page 1

Appendix 1a - Social Care Cost and Demand Pressures
Service Cost/Demand Pressure 2025-
26
£000
2026-
27
£000
2027-
28
£000
All Social
Work
Estimated Pay inflation reflecting a mid-range of 3%.
Adjusted for the impact of the reduction in the
employer's pension contribution rate changes.
1,049 2,301 3,590
All Social
Work
Estimated Pay increments 172 344 516
All Social
Work
Non-pay inflation, best and worst case based on
unavoidable/inescapable inflation and worst case.
905 1,864 2,883
All Social
Work
Non-pay inflation impact of payroll inflation on NHS
posts which are recharged to Social Work.
90 182 277
Adult
Care
Older People Demand Growth: due to demographic
change, 3% growth in homecare and care home
placements over 3 years.
400 800 1,200
Adult
Care
Younger Adults Demand Growth - Physical Disability. 
The mid-range reflects 2% growth.
59 119 180
Adult
Care
Mental Health Demand Growth - There has been a
continuing increase in demand for residential
placements and supported living for mental health
services. The mid-range reflects 2% growth.
61 123 187
Children
and
Families
Looked After Children Demand Growth - there is a
continuing demand for placements of children who are
cared for by the HSCP. The mid case reflects that
additional demand in 24/25 be funded from existing
resource with £250k per annum thereafter.
0 250 500
Children
and
Families
Looked After Children Budget Adjustment - to reflect
significant increase in demand for placements in
external residential care facilities.
970 970 970
Adult
Care
Mental Health Budget Adjustment - The Mental Health
Supported Living and Residential budgets are carrying a
recurring unbudgeted commitment and increasing
demand. Care.
115 230 345
All Social
Work
Allowance for unknown cost and demand pressures
which could arise.
700 1,000 1,500
TOTAL UNFUNDED COST AND DEMAND PRESSURES 4,521 8,183 12,148
Mid Range

Page 2

Appendix 1b - NHS Cost and Demand Pressures
Cost/Demand Pressure 2025-
26
£000
2026-
27
£000
2027-
28
£000
Pay increments 100 200 300
Inflation on Resource Transfer 289 583 883
Estates & Fleet cost increases 500 500 500
Prescribing - 8% per SG planning
assumption
2,052 4,262 6,643
Estates - Mid Argyll PFI 175 360 554
Estates - energy & utilities 282 588 920
Staffing Act Implementation 300 300 300
Oncology medicines demand for new drugs 200 400 600
Depreciation & IFRS16 164 329 495
MS365 Licenses - contract increases 50 100 150
NSD Car-T Regional Centre 302 553 804
NSD topslice - additional services & current
pressures
200 400 600
Misc / other cost pressures 80 167 253
Allowance for unknown cost and demand
pressures
1,000 2,000 3,000
5,694 10,742 16,002
It is assumed that other NHS cost pressures, such as pay, will be fully funded
Mid Range