Contact: Paddy Hillary Ext. 7391/Jill Lovelock Ext. 7591

1. Summary

1.1 This report updates Cabinet on the final outcome of the County Council's local public service agreement, which ended 31 March 2005, in terms of performance and spending for each of the 13 targets and the level of claim against the performance reward grant.

1.2 Hampshire County Council, as an excellent and high performing council, agreed very stretching targets for the LPSA. This provided a focus on performance in key priority areas for the Council, which were reflected in the corporate strategy and Cabinet priorities. LPSA gave drive to specific areas of business, acknowledged extra effort in these areas and provided a profile for activities that has levered in partners support. All of this has been worthwhile investment in important service delivery areas, and has led to budget alignment and reprioritising of spending to aim for improved performance to meet LPSA targets.

Starting from a position of high performance, stretch through the LPSA was a real challenge and even though performance at 100% of stretch has not been achieved for all targets, the focus, profile and priority of the exercise has led to overall improvement in performance which will be sustained beyond the LPSA period, inform the development of LPSA2 and will stand the County Council in good stead for the next round of CPA.

The LPSA also included the agreement of freedoms and flexibilities from government in relation to the achievement of the stretch in performance. We were unable to negotiate much in the way of freedoms and flexibilities, but those included were delivered by Government.

1.3 Overall out of the 13 targets current information indicates that are 8 have achieved at 60% or 100% for at least some indicators. Of these, it is interesting to note that 5 are local targets rather than national targets.

1. Not achieved

2. 12 schools achieved at 75%, Countywide not achieved.

3. Basingstoke schools achieved at 100%, Andover and Havant not.

4. Attainment and attendance target not achieved. Exclusions achieved at 100%.

5. admissions to residential care maintained as qualifying indicator in the agreement achieved; intensive care not achieved; delayed discharges reduction achieved although measurement against indicator not possible due to definition change by DH.

6. Not achieved.

7. Not achieved.

8. Adoptions/Friends and family placements achieved at 100%

9. Diversion of waste from landfill achieved at 100%.

10. Not achieved.

11. Casualty reduction achieved at 100%.

12. Achieved at 100% subject to agreement by ODPM and DfT on specific issues.

13. Not achieved.

1.4 Using the above assessment, the reward grant which will be claimed will be around £9,146,000. This is subject to an audit view that the data demonstrates robust figures on achievement and agreement from ODPM.

1.5 The ODPM is to issue guidance over the summer on the arrangements for making claims for PRG and claims will be submitted in the autumn with a decision in early 2006. PRG is payable in equal instalments over 2 years (2005/6 and 2006/7).

2. Introduction

2.1 Cabinet will recall that the County Council concluded negotiations for the local public service agreement with the Government in January 2002, for an agreement covering the period April 2002 to March 2005. The agreement covered 13 targets with a mix of 7 national targets, as prescribed by the Office of the Deputy Prime Minister, and 6 local targets. A full list is attached as Appendix 1.


2.2 As part of the LPSA, the County Council received £2,002,000 in pump priming funds. In addition, the Performance Reward Grant, of up to £22m, is payable at the end of the agreement on a sliding scale assuming that at least 60% of the stretch in performance for the individual targets has been achieved. The reward grant is divided equally between the 13 targets and where multiple indicators are used to measure the targets, reward grant is divided equally against the indicators unless otherwise stated.


2.3 The key issue in relation to the performance reward grant is the achievement of at least 60% of the stretch in performance. This is calculated from the stated level of anticipated improvement in performance without the LPSA to the level expected with the LPSA. For many of the targets the incremental improvement from 60% to 100% was relatively small with most of the improvement in the change from the current level to the anticipated level of improvement without the LPSA. This means that for some targets achieving even the 60% was a struggle and to reach 100% even more difficult.

3. Monitoring arrangements

3.1 This is the final monitoring report which shows the final outcome for all the LPSA targets in terms of performance and gives the final outcome of pump priming and borrowing spend in relation to the targets.

3.2 The County Council received a pump priming grant of £2.003m to assist
in achieving the service improvements required to meet the LPSA targets which was paid during April 2003. The grant was paid in a single instalment and the use of the grant planned over the three years of the LPSA. The final use of the grant was as follows:

	Actual 2002/03 £000	Actual 2003/04 £000	Actual 2004/05 £000	Total £000
Education - all targets	744	194	47	985
Environment - waste Diversion and bus use	33	288	141	462
Social Services - All targets	90	129	337	556
	----- 867	----- 611	----- 525	----- 2,003

3.3 In addition the County Council was authorized to incur unsupported borrowing of £2.250m allocated as follows:

Bridgemary Community School - provision of IT suite Brune Park Community School - extension of dining facilities Social Care Information System

£000 200 200 1850 ------- 2,250

All three are contributions towards larger projects. The Bridgemary and Social Care Information projects are complete, with the Social Care Information projects in progress.

4. Progress to date

4.1 The main value of the LPSA process was to give a focus to priorities and key areas of performance for the County Council, leading to improved services in many areas. For most of the targets a significant level of performance improvement has been achieved through the LPSA even though it was not possible to deliver on some of the more stretching targets even at the 60% level.

4.2 The monitoring information shows the original baseline (2000/01 or 2001/02 unless otherwise stated), the target (ie the stretch through LPSA), the 60% target (where reward grant triggers) and the final outcome in performance as at 2004/5.

Details of each target are shown below.

Education Targets (1-4)


Target 1 - Attainment at Key Stage 3 level 5

This target covers all Hampshire secondary schools.

	a) Baseline as in agreement	b) 60% target	c) Expected with PSA	d) Final outcome 04/05
English	69%	80.6%	81%	75%
Maths	73%	80.6%	81%	78%
Science	74%	76.8%	78%	72%
ICT	69%	78.8%	80%	70%

Outcome against LPSA target

Subject area	Target achievement
English	No
ICT	No
Maths	No
Science	No

From the outset it was likely that the original national targets set by the DfES would pose a challenge for the LEA and the schools. These figures were then increased by one or two percentage points to the stretched values shown above. All of these targets have been missed but progress has been made and, with the exception of KS3 science, the outcomes are above the original baseline set in 2001, and are the highest figures to date.

In relation to the KS3 results of authorities similar to Hampshire, the results in English, maths and science place us in the top third of our comparator group. This demonstrates the degree of difficulty posed by the original targets. In 2003 it seemed likely that the science target would be achieved but results nationally as well as in Hampshire fell back considerably in 2004 because of changes to the test.

Target 2 - GCSE results at A*-C in deprived areas within Hampshire

This has two components: a countywide target and an aggregate target relating to twelve schools in areas of relative deprivation. List of schools for targets attached as appendix 2.

	a) Baseline as in agreement	b) 60% target	c) Expected with PSA	d) Final outcome 04/05
12 schools	36.2%	41.4%	43%	42.0%
Countywide	56%	63.5%	63.8%	60.0%

Outcome against LPSA target

Target	Target achievement
12 schools	75%
County-wide	No

The twelve schools in areas of relative deprivation have collectively achieved an increase in their GCSE results that is 50% higher than the LEA increase. The schools in this group include 4 designated by DfES as `facing challenging circumstances'. The improved GCSE results for 3 of these schools - Oak Farm, Staunton Park and Park Community School - were significant contributory factors in approaching this target. For the countywide target, comments similar to those made for Target 1 apply in relation to nationally determined targets.

Target 3 - Reducing school truancies in targeted areas

	a) Baseline as in agreement	b) 60% target	c) Expected with PSA	d) Final outcome as at 04/05
		Reduce by 13%	Reduce by 15%
Andover	0.87%	0.76%	0.74%	2.46%
Havant	3.10%	2.70%	2.64%	3.52%
North Basingstoke	2.34%	2.04%	1.99%	1.65%

Outcome against LPSA target

Target	Target achievement
Andover	No
Havant	No
North Basingstoke	100%

Overall the targets proved too challenging and were only achieved in one of the three areas. The implementation of systems and initiatives for promoting attendance and immediate follow up of authorised absence were successful and are now being adopted by other schools in the Basingstoke area. As well as a reduction in unauthorised absence, the average level of attendance increased from 87.62% (99/00) to 89.72% (03/04).

Although the targets were not achieved in the other areas, the average base level of unauthorised absence was extremely low indicating that schools were `authorising' almost all absence. Subsequently guidance has been issued on promoting and categorising absence helping schools to challenge pupils and parents on the reasons for absence. The average level of attendance has improved from 90.57% (99/00) to 90.75% (03/04). Likewise in the Havant schools, although the level of unauthorised absence did not reduce the average level of attendance increased from 86.99% (99/00) to 89.14% (03/04).

Target 4 - Increase secondary attainment, reduce absence and exclusions in deprived areas in Gosport

	a) Baseline as in agreement	b) 60% target	c) Expected with PSA	d) Final outcome as at 04/05
5+ A*-C	32.6%	37.8%	39%	31.0%
5+ A*-G	89.4%	92.2%	93%	84.9%
Unauthorised absence	2.26%	1.69%	Reduce 35%	3.74%
			1.47%
Permanent Exclusion	8.5 per school	7.5per school	Reduce by 20%	3 per school
			6.8 per school

Outcome against LPSA target

Target	Target Achievement
5 A*-C	No
5 A*-G including English/Maths	No
Absence	No
Exclusions	100%

In 2003 the 2 Gosport schools were on course to achieve their 5 x A*-C GCSE target of 39%. However, results in both schools fell back in 2004 to an aggregate of 31% which is lower than the baseline. At the time that the targets were set, this was the start of a period of major change including new head teachers. Whilst the leadership of both schools is strong, staffing changes essential to achieve lasting improvement are still being completed - particularly at Bridgemary. The history of improvement in Gosport, where standards are now much more secure, suggests that progress is not even. Although the hard work undertaken by the schools is not reflected in the 2004 results, the schools report that improvement is likely in 2005.

Although the target for unauthorised absence was not achieved, the average level of attendance has improved from 90.57% in 99/00 to 90.72% in ¾. This suggests more rigorous challenge of pupil absence by the schools in line with Hampshire Education Welfare guidelines.

The permanent exclusions target has been achieved and there has been considerable support for the hard work undertaken by the schools and a number of specific initiatives implemented.

4.3 Social Services Targets (5-8)

Target 5 - Help older people to live as independently as possible

	a) Baseline as in agreement	b) 60% target	c) Expected with PSA	d) Final outcome 04/05
[C26	86	(70-100)	70-100	95.9]
C28	5.9	16	18	8.4
D41	(25.2%) (14.6%) (23.5%)		(2.5)

C26 Admissions to residential care - alongside the other 2 indicators, the LPSA specified that this indicators should remain within the range 70-100 for all 3 years. This has been achieved.

C28 Intensive care at home - the department has work extremely hard to achieve what amounts to a 42% increase in the provision of intensive care at home over the lifetime of the LPSA. Given the shortage of this type of domiciliary care capacity and the very high costs of such care in the SE England, it is unsurprising that the original targets have not been achieved. This result achieves no reward grant.

It is also worth noting that over the lifetime of this LPSA, another social care indicator C32: Older People helped to live at home through other forms of care, has risen significantly from 61.6 to 84.6 per 1,000 older people in the population.

D41 Delayed discharges - Cabinet will be aware of the significant investment in and achievements of the County Council to reduce the number of people who experience a delay in transferring from hospital to social care in Hampshire. Delays from acute hospitals have been incrementally reduced and are now at their lowest ever (19 people in May 2005). In addition `whole system delays' - those that include people waiting to transfer to other NHS services - have also reduced, particularly in the last year (174 in Feb 2004 to 128 in Feb 2005, latest DH figures available) with senior managers from the Older Persons sector taking a lead role in working with acute hospitals to prevent unnecessary admissions and review systems to accelerate discharges. This represents a high level of commitment and dedication by Social Services staff and it is the department's view that such performance should attract the 50% reward grant; and that this should be claimed by the Council.

Target 6 and 7 - Improve the educational attainment of children in care

Target 6

	a) Baseline as in agreement	b) 60% target	c) Expected with PSA	d) Final outcome 04/05
5 GCSEs A*-G on leaving care	40%	64.6%	69%	45%
KS3
English	26%	49.4%	51%	18%
Maths	43%	53.2%	54%	26%
Science	38%	53%	55%	16%
ICT	n/a	53%	55%	N/A

Although the targets were not achieved this important area of activity will be included in LPSA2.

Target 7

	a) Baseline as in agreement	b) 60% target	c) Expected with PSA	d) Final outcome 04/05
5 GCSEs A*-C on leaving care	13%	19.4%	21%	7%

Although the targets were not achieved this will be carried forward into LPSA2.

Target 8 - Increase number of children looked after in permanent placements

	a) Baseline as in agreement	b) 60% target	c) Expected with PSA	d) Final outcome 04/05
Increase number of children achieving permanence overall	219	330	345	394
Adoptions	56	82	84	70
Family/friends placements	163	249	261	324

This target has 1 national element, official adoptions, and 1 local element, friends and family placements. The reward grant is payable by reference to the total figures (i.e. both elements combined) irrespective of their composition. Achievement was also dependent on the % of adoption breakdowns remaining at or below 5%. This target has achieved at 100%.

4.4 Environment Targets (9-12)

Target 9 - Diversion of waste from landfill through development of natural resource management approach

	a) Baseline as in agreement	b) 60% target	c) Expected with PSA	d) Final outcome 04/05
Tonnes p/a households commercial & industrial waste diverted from landfill	0	24,000	40,000	79,553.8

Target achieved at 100%.

Target 10 - Increased bus use from 2000 levels by 10% by 2010 with improvements in punctuality and reliability

	a) Baseline as in agreement (2000)	b) 60% target	c) Expected with PSA	d) Final outcome 04/05
Increase in passengers per year	-2.13%	N/A	4%	Awaited

Information still awaited from operators but target not achieved.

Target 11 - Reduction in fatal and seriously injured casualties on the road network

	a) Baseline as in agreement (94-98)	b) 60% target	c) Expected with PSA (2004 calendar year)	d) Final outcome 2004
Fatal and seriously injured casualties (annual tolls - calendar year)	1054	814	780	669

Target achieved at 100%. This target will be included in LPSA2.


Target 12 - Halt deterioration of condition of road network and reduce backlog

	a) Baseline as in agreement	b) 60% target	c) Expected with PSA	d) Final outcome 2004
Condition of B, C and U roads	17.91%	-	17.91% by 03 (ie no deterioration ) 17.89% by 04 (improvement of 0.02% points)	16.66% 9.47% (improvement of 8.44%)

Baseline recalculated in line with discussions with DfT. Target achieved at 100%. Elements of this target will be included in LPSA2.



4.5 Target 13 - 2% cost effectiveness improvements

Target 13 measures the local authority's cost effectiveness and is determined by dividing an index of change in performance by an index of change in cost. The County Council is entitled to partial payment of reward grant when performance on the cost effectiveness indicator reaches 106 rising to a full reward grant when it reaches 108.

The performance index is built up from 26 local and national performance indicators with many of these indicators replicating those in the other 12 PSA targets. Weightings have been applied to ensure the importance of any indicator within the performance index measure is consistent with its scale and impact relative to the activities of the County Council. The cost index is based on the change in the County Council's spending net of specific grant adjusted for inflation. The exact methodology for calculating the cost index is still being considered by the Government, so this target remains unresolved even for the original pilot authorities.

Information is currently available for 2004/05 for only 22 of the 26 performance indicators therefore it has not been possible to accurately calculate the increase in performance for this indicator. Despite the uncertainty over the calculation of the cost index and data not being available for 4 of the performance indicators it is apparent from the data currently available that the County Council has at least maintained a consistent level of cost effectiveness over the period of the LPSA, as measured by the indicator. However as predicted the cost effectiveness target remains among the most challenging of all the PSA targets and the data available suggests that there has not been an increase in performance sufficient to earn reward grant on this indicator.

5 Overall conclusions and next steps

Overall the LPSA provided a useful focus for setting priorities and targeting performance improvement. Of the 13 targets, almost all achieved a significant improvement in performance even if the actual LPSA target was not met. The fact that we have achieved the LPSA target in 7 of the 13 targets is a clear demonstration of the value of targeting performance improvements notwithstanding the carrot of performance reward grant.

The ODPM will be issuing guidance on the process for claiming reward grant over the summer. We have arranged with internal audit to review the figures produced by departments prior to submitting claims in the autumn. PRG is payable in 2 instalments during this and the next financial years.

It is proposed that the following principle for allocating earned reward grant be adopted:

- allocation of £1.5m for the development of the Local Area Agreement


- repayment of £2.25m borrowing under unsupported credit approvals

- remainder allocated to departments in line with achievements as follows:

Target Number	% achieved
T2 - GCSE A*-C in targeted areas	37.5%
T3 - Reducing truancies in targeted areas	33%
T4 - Exclusions in Gosport schools	25%
T5 - Delayed discharges	50%
T8 - permanent placements	100%
T9 - diversion of waste from landfill	100%
T11 - reduction in casualties	100%
T12 - road condition	100%

6. Recommendations

1) Cabinet welcomes the outcome of LPSA1

2) Cabinet approves the principle for allocation of performance reward grant as
outlined in the report.



Appendix 1

SCHEDULE 1: PERFORMANCE TARGETS

Summary table

Appendix 2

Schools for target 2

Connaught Secondary - Aldershot

Fort Hill Community - Basingstoke

John Hunt of Everest Community - Basingstoke

The Vyne Secondary - Basingstoke

Harrow Way Community - Andover

John Hanson Secondary - Andover

Winton Secondary - Farnborough

Oak Farm Community - Farnborough

Wavell Secondary - Farnborough

Park Community - Havant

Staunton Park Community - Havant

Warblington Secondary - Havant

Schools for target 3

Brune Park Community - Gosport

Bridgemary Community - Gosport

Richard Aldworth Community - Basingstoke

Fort Hill Community - Basingstoke

Winton Secondary - Andover

Harrow Way Community - Andover

Staunton Park Community - Havant

Park Community - Havant