Contact: Bob Eardley, Strategic Planning Manager, 01962 846275. Email: [email protected]

1. Summary

1.1 This report sets out proposed changes to the 2005/06 and 2006/07capital programmes.

1.2 The proposals in this report support the following corporate aims:

· Aim 1 (Maximising life opportunities) by proposing allocations of funding to improve the learning environments of Hampshire schools.

· Aim 5 - (Improving services) by considering solutions which will contribute to the raising of educational standards.

1.3 Race and equality impact assessment has been considered in the development of this report and no adverse impact has been identified.

Children Act outcomes

1.4 The five outcomes specified in the Children Act are set out below, with a summary of how the proposals in this report contribute to their achievement:

· being healthy (enjoying good physical and mental health and living a healthy lifestyle): through proposals to encourage walking and cycling to and from school;

· staying safe (being protected from harm and neglect): by creating safe environments in schools, particularly through the separation of pedestrians and vehicles;

· enjoying and achieving (getting the most out of life and developing the skills for adulthood): by providing a high standard of education for children in suitable buildings;

· making a positive contribution (being involved with the community and society and not engaging in anti-social or offending behaviour): by encouraging the flexible use of accommodation;

· economic well-being (not being prevented by economic disadvantage from achieving their full potential in life): by ensuring that proposals will not disadvantage children and will protect equality of opportunity.

2. Amendments to the 2005/06 capital programme

Baycroft Special School, Stubbington

2.1 Baycroft School is a large special school providing for approximately 180 pupils between the ages of 11 - 16. Predominantly, students at the school have moderate learning difficulties and autistic spectrum disorders. There is also a small number of pupils with emotional, behavioural, social difficulties, severe learning difficulties, speech and communication difficulties, hearing and visual impairments.

2.2 During late August 2005 the school suffered significant flooding, following heavy rainfall. This led to the whole of the ground floor of the main school building being out of use until late September. Whilst a considerable amount of damage was caused to the internal fabric of the building, a degree of operational ability was maintained during the repair works. As part of these works it was felt appropriate that improvements should be made to the staff work area. It was agreed that together with new flooring, additional fixed benching and improved ICT facilities would be provided and it is proposed that the additional cost of the above works, £0.015m, be met from the 2005/06 capital programme block vote for staff facilities.

Otterbourne Primary School

2.3 There is a proposal to carry out internal adaptations at this school to provide more appropriate staff accommodation. This is part of a larger scheme to create three full size classrooms, thus releasing an area for these adaptations to be carried out to improve staff facilities. It is recommended that a sum of £0.050m be allocated from the 2005/06 capital programme block vote for staff facilities.

Knightwood Primary School, Chandler's Ford

2.4 A scheme has been developed at this school to extend the library, staffroom and sports store. The school has contributed £0.107m towards the cost and Policy and Resources is allocating £0.008m. The total cost of the scheme is £0.148m and it is proposed that the shortfall of £0.015m is met through an allocation from the 2005/06 capital programme block vote for staff facilities.

Norman Gate Special School, Andover

2.5 Norman Gate Special school caters for primary aged pupils with moderate learning difficulties. There are currently no facilities in the school to allow for children to be cleaned and changed as necessary. A scheme has been developed to provide a fully functional hygiene space at an overall cost of £0.036m excluding fees, and the school is contributing £ 0.018m. It is proposed therefore that a sum of £0.021m including fees be allocated as a contribution to the funding from the 2005/06 capital programme block vote for Health and Safety.

Broadoaks Education Support Centre, Basingstoke

2.6 The Pack Lane site of Basingstoke School Plus includes a building which was the hostel (now closed) for the former Hawthorns School. As the hostel is no longer required for its original purpose, proposals have been developed to refurbish this accommodation to provide an education support centre. The estimated cost of the works is £0.070m and it is recommended that this sum is allocated from the block vote for EOTAS provision in the 2005/06 capital programme.

Projects to be carried forward to 2006/07

2.7 The projects listed in Table 1 will not start in 2005/06 and need to be carried forward with their resources to 2006/07. Starts in the first quarter of the new financial year are expected. The cost of uplifting the financial provision for these projects from November 2004 to November 2005 prices can be met from the capital programme contingency.

Table 1

3. Amendments to the capital programme 2006/07

Health and safety issues - Wyvern campus, Fair Oak

3.1 Wyvern College, Fair Oak Junior and Fair Oak Infant Schools share a campus. As a result of a number of expansion projects over several years, the campus is now at capacity, resulting in significant congestion and car parking difficulties. As Wyvern College has a number of successful community activities, there are vehicle and pedestrian movements throughout the day, which are at their maximum at the start and end of the school day. Arrangements for segregation of vehicles and pedestrians would benefit from significant changes to the layout of the site entrances and car parking to improve safety and vehicle flow.

3.2 A project to address these issues has been developed and is reported for approval elsewhere on this agenda. The total cost of the project is estimated at £0.505m and can be funded as shown in Table 2.

Table 2

Funding source	£'m
Schools' contributions	0.145
Safer Routes to School	0.050
Policy and Resources	0.155
Proposed contribution from Children's Services capital programme	0.155
Total	0.505

3.3 There is provision in the Health and Safety block vote in the 2006/07 capital programme for a contribution to this project. It is recommended that a contribution of £0.155m is made from that source.

Crofton Hammond Junior School

3.4 Crofton Hammond Junior School is a 2fe community school located within the Stubbington area of Fareham. It currently has 242 pupils on roll and is forecast to remain at full capacity over the coming years. Housing development at HMS Daedalus will generate demand for additional primary school places in the area and Crofton Hammond Junior School is one of those likely to accommodate children from the development.

3.5 Part of the school's accommodation is in a double temporary classroom. A recent structural survey of the unit by the Director of Property, Business and Regulatory Services revealed that its condition is now considered to be `very poor'. It is proposed that this unit should now be replaced with a permanent structure therefore, ensuring that the school has suitable accommodation in which to deliver the curriculum. The work envisaged will also improve the flexibility of available accommodation and allow the school to take more pupils.

3.6 The estimated cost of the proposed scheme is £0.449m. The County Council has recently received a developer's contributions of £0.400m linked to the housing development on the HMS Daedalus site. It is therefore proposed that this contribution should be used fund the project, together with £0.049m of the school's devolved formula capital.

3.7 It is recommended that the developer's contribution of £0.400m should be added to the resources for 2006/07 and that a major project to replace the double temporary classroom at Crofton Hammond Junior School at an estimated cost of £0.400m should be added to the 2006/07 programme.

4. Early years capital funding and projects

Early years capital funding in 2005/06

4.1 As part of the overall funding regime for early years provision, the DfES made available:

(a) in 2004/05 and 2005/06 capital resources of £0.812m, principally towards the cost of increasing the availability of pre-school education and childcare, but also for investment in Phase 1 children's centres. This is termed sustainability capital by the DfES;

(b) in 2005/06 a capital allocation of £0.791m for investment in children's centres.

4.2 Both of these are allocations are indicative and need to be claimed against expenditure incurred. Strategies for optimising their use are set out below.

Sustainability capital

4.3 Phase 2 of the children's centres programme was announced by the DfES in June 2005 and an indicative capital allocation to the County Council of £9.515m was announced at the same time; this funding will be available over two financial years from April 2006. It was clear that this funding would be inadequate to provide the 53 children's centres required under Phase 2. The view was taken that further commitments from early years capital funding available from the DfES in the current financial year should not be made until the capital resourcing issues relating to the children's centre programme as a whole were clearer. As a result, although some projects to improve provision at Phase 1 centres have been worked up, resources have not yet been committed to contracts. Other high priority early years projects were committed using separate funding in the capital programme block vote for early years provision and other sources within the Children's Services capital programme.

4.4 The capital funding position for Phase 2 children's centres is now clearer (see paragraphs 4.11 to 4.15 below) and initial desktop costing exercises indicate that even with the enhanced capital resources available from the DfES in 2006/07 and 2007/08, it will be very difficult to fund Phase 2. Consequently, a strategy is proposed to maximise the carry-over of capital funding from the current year to increase the resources available for Phase 2, while allowing a small amount of high priority work at Phase 1 centres to proceed using 2005/06 resources. This approach is seen as providing a prudent balance between investment in Phase 1 and Phase 2 centres.

4.5 Table 3 sets out proposals for allocating this funding to specific projects. Of the £0.812m available:

· £0.020m has been committed;

· £0.742m is proposed for allocation to projects already funded by the County Council. This amount could then be carried forward and be available to spend in 2006/07;

· £0.050m is proposed for allocation to projects at Phase 1 centres, where work will be completed by 31 March 2006.

Table 3

4.6 If this strategy is approved £0.742m will be available to increase the resources available for future investment in children's centres. This is subject to:

· £0.147m of the carry forward being allocated for children's centre developments in Fareham. This is because the expenditure at Oak Meadow Early Years Centre shown in Table 3 was funded from resources made available through the William Price Trust, which can be spent only in Fareham;

· £0.473m being made available from Policy and Resources. This reflects the fact that this sum could be claimed by Children's Services against the capital receipts from asset sales being used to provide part of the funding for the Lanterns Children's Centre project.

4.7 The following recommendations are proposed:

· Endorsement of the approach set out in paragraph 4.5 and Table 3;

· Carry forward of resources totalling £0.269m (i.e. £0.742m - £0.473m) from 2005/06 to 2006/07;

· subject to approval by the Executive Member for Policy and Resources, an allocation in 2006/07 of £0.473m from capital receipts (when received).

Children's Centre capital

4.8 The DfES has allocated £0.791m to the County Council in 2005/06 towards the capital costs of Phase 1 children's centres. Of this sum, £0.430m (£0.100m plus £0.330m) has already been allocated to cover expenditure on specific projects, as shown in Table 4. Of the £0.361m unallocated it is proposed to use £0.249m to fund the project at Links Children's Centre, Cowplain (see paragraph 4.17) and £0.050m as a contribution to Gosport Borough Council for the Sure Start Rowner Centre. This leaves a balance of £0.062m. As there is no opportunity to commit this funding to other eligible projects, the DfES has been asked whether it can be carried forward to 2006/07. The outcome of this approach will be reported in May 2006.

Table 4

General Sure Start Grant (GSSG)

4.9 In order to maximise the use of the General Sure Start revenue grant, it is proposed to vire £0.354m from GSSG to the 2005/06 capital programme to enhance the funding available for early years capital projects/initiatives. This additional funding can then be used to offset expenditure already incurred for early years projects, thus increasing resources available for future schemes. The scope to carry forward this capital will ensure that capital programme flexibility for early years projects is maximised in 2006/07. Once there is a clearer view of forward year priorities in this area, a further report will be bought to the Executive Member for consideration. The recommended approach of viring revenue to capital is consistent with guidance from the DfES, but the claim will be subject to submission and audit. It is recommended, therefore, that the £0.354m is allocated to the contingency until the claim has been accepted by the DfES.

4.10 The projects which it is proposed to finance from these additional resources are set out in Table 5.

Table 5

Early years capital funding in 2006/07 and 2007/8

4.11 As indicated in paragraph 4.3 an initial capital allocation of £9.515m was announced by the DfES in June 2005 towards the cost of providing 53 Phase 2 children's centres. The funding would be made available over two financial years from April 2006 and would be subject to claims being made for individual projects.

4.12 Subsequent announcements from the DfES have confirmed that additional funding will be available to support:

· Phase 2 of the children's centre initiative;

· the provision of childcare through extended schools; and

· the expansion of childcare provision in areas not covered by children's centres (sustainability capital).

4.13 The available funding totals £19.775 over the two years and a proposed split is shown in Table 6. This:

· allocates most of the resources to Phase 2 children's centre provision;

· recognises the DfES policy of supporting the provision of childcare in extended schools through the allocation of specific capital resources;

· allocates funding to support the expansion of existing childcare facilities or provision of new ones, outside the children's centre initiative.

Table 6

4.14 This allocation is proposed as a working model at this stage and patterns of actual expenditure will be kept under review. Recommendations will be made to change the balance of the allocations if required. When costings for the first tranche of phase 2 children's centres are clear a further report will be submitted on a more detailed funding model.

4.15 It is recommended that resources for 2006/07 and 2007/08 are increased to reflect additional DfES allocations, as shown in Table 6.

Early years capital funding 2006/07 - summary

4.16 If the proposals set out in this section are approved, the revised provision for early years capital in 2006/07 would be as shown in Table 7.

Table 7

Links Children's Centre (formerly Littlefold Family Centre), Cowplain

4.17 On 26 October 2005 the Executive Member for Education approved a major project to extend and adapt the Littlefold Family Centre, Waterlooville as a children's centre. The estimated cost of the project was £0.230m, of which £0.200m was chargeable to the 2005/06 children's centre capital budget and £0.030m to General Sure start Grant.

4.18 Tenders for the project have now been received and the actual cost will be £0.249m. In accordance with the funding strategy set out in paragraph 4.8, it is recommended that the project proceeds and that the full cost is met from the 2005/06 provision for Phase 1 children's centre capital.

5. Prudential borrowing

5.1 The 2006/07 Children's Services capital programme includes provision for up to £11.300m of prudential borrowing, mainly against anticipated capital receipts. At its meeting on 2005, the Cabinet considered the corporate implications of the increasing level of "bridging" loans in advance of capital receipts or developers' contributions. Currently, the interest costs of such advances are rolled up and repaid from the eventual receipt., but this has cash flow implications, which become more significant as the level of borrowing increases. For Children's Services, these costs are currently estimated at up to £0.100m in 2006/07, £0.500m in 2007/08 and £0.700m in 2008/09.

5.2 In the context of these rising costs, the Cabinet decided to amend the current policy on prudential borrowing to require services to meet the recurring costs of prudential borrowing (which are about £0.090m for every £1.000m borrowed) either from revenue budgets, from capital programmes, or by setting aside part of their shares of capital receipts.

5.3 This policy change will have a significant effect on the funding of the Children's Services capital programme and proposals will need to be developed for a funding strategy to meet the costs, which should minimise as far as possible the effects on planned capital investment. Further proposals will be brought forward for consideration in May 2006.

6. Temporary Classrooms

Abbotts Ann Primary School

6.1 This school has a capacity of 102 places, including 30 places in an existing temporary classroom, and a number of roll of 94. The temporary classroom at this school has now reached the end of its economic life and will need to be replaced with another temporary building. This is a medium-term measure as there is a longer-term plan to replace the school on a different site. It is recommended that approval from the Executive Member for Policy and Resources is sought for the planning application to replace the existing temporary unit with another to remain on site until August 2011.

Wildern School, Hedge End

6.2 Wildern School is a popular and successful school. It has a net capacity of 1,798, with 1,807 pupils on roll in January 2006. Its Published Admission Number (PAN) is currently 360; however, in September 2005, following appeals, the number admitted was 372. The school is again over-subscribed from within its catchment area for September 2006 admissions and if all in-catchment pupils are admitted to the school, there will be 380 pupils in Year 7. If these pupils are not admitted they are almost certain to win at appeal, as Wildern is their catchment school. Over-subscription will continue for the next four to five years, exacerbated by pupils expected from the new Dowd's Farm housing development, which also lies within the Wildern catchment area.

6.3 There is, however, an underlying reduction in the number of pupils currently attending Wildern's feeder primary schools and the over-subscription is, therefore, likely to begin to reduce by approximately 2011 to within the current PAN. The school's governing body is willing to admit the additional pupils, provided that appropriate temporary accommodation is made available. Plans are also in hand to make changes to the school's infrastructure to cater for additional pupils and financial provision has been made for this work in the 2006/07 capital programme. To meet the additional in catchment demand for places at Wildern, it is recommended that a double temporary classroom is placed on site from September 2006.

7. County Council Policy Requirements

7.1 Legal implications - The proposals support the County Council's statutory duty to provide school places and comply with central government accommodation requirements and guidance.

7.2 Financial implications - These are set out in the report.

7.3 Personnel implications - None directly arising from this report.

7.4 Community cohesion, inclusiveness and partnership working - Most of the capital projects proposed in this report support these aims.

7.5 Crime prevention issues - None directly arising from this report.

Recommendations

1. That the following variations to the 2005/06 Children's Services capital programme be approved:

(a) an allocation of £0.015m from the block vote for staff workforce measures for a minor works project at Baycroft School, Gosport;

(b) an allocation of £0.050m from the block vote for staff workforce measures for a minor works project at Otterbourne Primary School;

(c) an allocation of £0.015m from the block vote for staff workforce measures for a minor works project at Knightwood Primary School, Chandler's Ford;

(d) an allocation of £0.021m from the block vote for health and safety measures for a minor works project at Norman Gate School, Andover;

(e) an allocation of £0.070m from the block vote for EOTAS provision for a minor works project at Broad Oaks Education Centre, Basingstoke;

(f) the addition of following minor works projects to provide early education facilities:

(i) Oak Meadow Early Years Centre, Fareham, at an estimated cost of £0.030m;

(ii) Warren Park Early Years Centre, Havant, at an estimated cost of £0.020m.

2. That, subject to the approval of the Executive Member for Policy and Resources the following variations to the 2005/06 capital programme be approved:

(a) that resources totalling £0.812m from DfES grant be added to the 2005/06 capital programme as sustainability capital for early years and childcare projects;

(b) that resources totalling £0.361m from DfES grant be added to the 2005/06 capital programme for the development of children's centres;

(c) that the following major projects in the 2005/06 Children's Services capital programme be carried forward to 2006/07:

(i) Curdridge Primary School, at a revised estimated cost of £0.711m;

(ii) Micheldever Primary School, at a revised estimated cost of £1.847m;

(iii) Trospacc Children's Centre, Havant, at an estimated cost of £0.700m.

(d) that expenditure on the following projects be charged to the block vote for early years sustainability capital:

(i) a contribution of £0.122m for Aviary (Nightingale) Early Years Centre, Eastleigh, originally charged to the 2005/06 capital programme contingency;

(ii) a contribution of £0.473m for Lanterns Children's Centre, Winchester, originally charged to the 2004/05 capital programme contingency;

(iii) a contribution of £0.147m for Oak Meadow Early Years Centre, Fareham, originally charged to the 2005/06 capital programme, minor works funded through grant from the William Price Trust;

(iv) £0.020m for provision of a community building at the Trospacc Early years Centre, Havant.

(e) that expenditure on the following projects be charged to the block vote for the development of children's centres:

(i) a grant of £0.050m to Gosport Borough Council towards the cost of the Sure Start Rowner facility, Gosport;

(ii) an allocation of £0.249m to fund a project to develop the Links Children's Centre, Waterlooville.

(f) that £0.062m of children's centre capital be carried forward from 2005/06 to 2006/07, subject to approval by the Department for Education and Skills;

(g) that funding of £0.354m be vired from General Sure Start Grant as an addition to the capital programme contingency to reflect contributions made to the cost of the following early years projects:

(i) £0.161m for purchase of furniture and equipment at the Lanterns Early years Centre, Winchester;

(ii) £0.090m for the purchase of a temporary building for use by an early years group at Wallop Primary School;

(iii) £0.103m towards the cost of early years facilities as part of the development of Blackfield Primary School.

3.
That, subject to the approval of the Executive Member for Policy and Resources the following variations to the 2006/07 capital programme be approved:

(a) the addition of resources of £0.400m from a developer's contribution to the provision for new pupil places in Gosport;

(b) that a major project at Crofton Hammond Junior School, Gosport be added to the capital programme at a total estimated cost of £0.049m, with a contribution of £0.400m from the provision for new pupil places;

(c) that a major project at Wyvern College, Fair Oak be added to the capital programme at a total estimated cost of £0.505m, with a contribution of £0.155m from the block vote for health and safety measures;

(d) that resources totalling £10.266m from DfES grant be added to the 2006/07 capital programme for the provision of early years facilities, to be split as follows:

(i) £7.908m for the provision of children's centres;

(ii) £1.718m for the provision of childcare through extended schools;

(iii) £0.600m for sustainability capital.

4.
That, subject to the approval of the Executive Member for Policy and Resources the following variations to the 2007/08 capital programme be approved:

(a) that resources totalling £9.549m from DfES grant be added to the 2007/08 capital programme for the provision of early years facilities, to be split as follows:

(i) £6.791m for the provision of children's centres;

(ii) £1.758m for the provision of childcare through extended schools;

(iii) £1.000m for sustainability capital.

5.
That, subject to the approval of the Executive Member, Policy and Resources, the following applications for planning permission for temporary classrooms be approved until 31 March 2010:

(a) a single temporary classroom at Abbotts Ann Primary School;

(b) a double temporary classroom at Wildern School, Hedge End.

Section 100D - Local Government Act 1972 - Background papers

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

NB: the list excludes:

1. Published works

2. Documents which disclose exempt or confidential information as defined in the Act.

None.