AT A MEETING of the CABINET of HAMPSHIRE COUNTY COUNCIL held at The Castle, Winchester on 24 July 2006

Chairman:

p Councillor T.K. Thornber, CBE

Councillors:

Also present: Councillors B.D. Dash; K.R. Chapman; Dr R.J. Ellis; Mrs C.A. Leversha and Mrs P.A West.

164. APOLOGIES

There were no apologies for absence.

165. DECLARATIONS OF INTEREST

Members were mindful that, where they believed they had a personal or personal prejudicial interest in any matter to be considered at the meeting, they should normally at the time of the debate, declare their interest, and, having regard to the circumstances described in paragraphs 9, 10, 11 and 12 of the County Council's Code of Conduct, consider whether to leave the meeting whilst the matter was discussed.

166. MINUTES

The minutes of the meeting held on 26 June 2006 were confirmed as a correct record, subject to an amendment to minute 159 to add that a strategic gap also be designated between Romsey and Southampton.

167. CHAIRMAN'S COMMUNICATIONS

There were no communications.

168. DEPUTATIONS

The following deputations were made:

(i) Shepherds Spring Infant and Junior Schools

(ii) Knights Enham Infant School

(iii) Knights Enham Junior School

169. REVIEW OF PRIMARY SCHOOL PROVISION IN THE NORTH AND EAST ANDOVER AREA

The Cabinet considered the report of the Director of Children's Services (Item 6 in the Minute Book) seeking approval of proposals as a result of consultations following the review of primary school provision in the north and east Andover area. The Executive Member with special responsibility for Education expanded on the very thorough review that had been undertaken by officers in the Children's Services department and the need to address the surplus school places that exist in the Andover area, including the associated concerns that had been raised by the District Auditor. The Director of Children's Services reported that the proposals had been prepared as a result of the very clear evidence that had come out of the review, and being particularly mindful of the need for the County Council to discharge its responsibilities in respect of the Children Act. He also emphasised that achieving value for money when undertaking this type of exercise was to ensure the provision of access to services.

During the course of a full and wide-ranging discussion, Members expressed a number of views. In particular, it was recognised that there is a high level of special educational needs children in the schools involved in the review. The Director of Children's Services reassured Members, teachers and parents alike that every effort would be made to ensure that each child's needs will continue to be met and it was anticipated that the proposals would lead to enhanced services in the longer term.

The Cabinet adopted the recommendations set out in the report subject to an amendment to the published recommendation 1.1 (b) and two new resolutions. A copy of the substantive decision sheet is attached to these minutes as Appendix 1.

170. ANNUAL SUSTAINABILITY REPORT

The Cabinet considered the report of the Director of Environment (Item 7 in the Minute Book) setting out the County Council's sustainability performance during 2005/06. The Director of Environment expanded on the report and highlighted it covered a much wider range of sustainability issues than in previous reports and not just those that affect the environment. Attention was also drawn to the achievements during this period as detailed in Appendix 2 to the report and the recommended new approach to sustainability target setting for 2006/07.

During the course of the ensuing discussion, Members welcomed the achievements (Appendix 2) and particularly those that were of a cross-cutting nature. A number of queries were raised in respect of the County Council's Aalborg Commitments Baseline Review Results (Appendix 1), in particular the rating associated with paragraph 7 - Local Action for Health. The Director of Environment suggested convening a small group to review the evidence collated. On this basis the Cabinet deferred this report to its September meeting together with the outcome of the review of evidence as detailed above. A copy of the decision sheet is attached to these minutes as Appendix 2.

171. COMPREHENSIVE PERFORMANCE ASSESSMENT (CPA) - USE OF RESOURCES ASSESSMENT 2006

The Cabinet considered the report of the Chief Executive (Item 8 in the Minute Book) outlining changes to the CPA framework (the `harder test' of council ability) including the model for assessing the Use of Resources block and the audit processes which evaluate the Council's performance in this area. The report also detailed progress in addressing the recommendations made following the assessment in 2005. The Chief Executive expanded on the report and highlighted the recommendation not to publish an annual report, as suggested by the Audit Commission, as this would be in addition to the annual publication of the County Council's Performance Plan (and possibly in future an Operating and Financial review) which would lead to duplication and increased costs.

During the ensuing discussion, Members expressed a number of views, namely: the importance of highlighting the Children and Young People's Plan, which encourages young people participation, to paragraph 2.1.21 of the report's appendix; that risk management awareness training would be beneficial for the Cabinet (paragraph 4.1.9 of the report's appendix); and supported the recommendation not to publish an annual report pending a clearer view emerging from the Government and key regulatory stakeholders.

The Cabinet adopted the recommendations set out in the report. A copy of the decision sheet is attached to these minutes as Appendix 3.

172. CAPITAL STRATEGY 2006

The Cabinet considered the report of the County Treasurer and the Director of Property, Business and Regulatory Services (Item 9 in the Minute Book) seeking approval of the Capital Strategy for 2006, attached as Appendix 1 to the report. The County Treasurer and Director of Property, Business and Regulatory Services expanded on the Capital Strategy which would be a useful background document to forthcoming consultations with stakeholders on the County Council's budget and capital programme. Section 12 of the document dealt with procurement initiatives, which highlighted many good examples of partnership working.

The Cabinet adopted the recommendations set out in the report. A copy of the decision sheet is attached to these minutes as Appendix 4.

173. CAPITAL PROGRAMME REVIEW

The Cabinet considered the report of the County Treasurer and Director of Property, Business and Regulatory Services (Item 10 in the Minute Book) dealing with issues raised when the Cabinet agreed the capital programme for 2006/07 to 2009/10 in February 2006. This included the cost of fees on building-related schemes; progress with the Strategic Property Review including projections of future capital receipts and proposals for meeting the shortfall of resources to fund the existing capital programme; proposals to restrict the use of Government borrowing allocations in 2007/08; and proposals to fund the accumulated shortfall of resources for the Adult Services capital programme to enable a revised programme for 2006/07 to 2009/10 to be approved.

The Cabinet adopted the recommendations set out in the report. A copy of the decision sheet is attached to these minutes as Appendix 5.

174. 2006/07 BUDGET REVIEW

The Cabinet considered the report of the County Treasurer (Item 11 in the Minute Book) reviewing the projected outturn for 2006/07 and recommended further action to provide additional balances to cover the risks of a further overspend on Adult Services. The County Treasurer expanded on the report in detail highlighting key pressures, the action proposed to address these pressures and associated timescales. A timetable of future reporting to the Cabinet was also confirmed.

During the course of a detailed discussion, Members recognised the pressures on the budget highlighted by the County Treasurer and the difficult decisions that had to be made in order to address the current situation and to safeguard services for the future. On this basis, the Cabinet adopted the recommendations as set out in the report, subject to further monitoring reports from the County Treasurer. A copy of the substantive decision sheet is attached to these minutes as Appendix 6.

175. EXCLUSION OF THE PRESS AND PUBLIC

That in relation to Appendices 3 and 4 of item 13 below, the press and public be excluded from the meeting as it is likely, in view of the nature of the business to be transacted or the nature of the proceedings, that if members of the press and public were present for these parts of the item there would be disclosure to them of exempt information within paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972, and further that in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information, for the reasons set out in page 1 of the report.

176. ASHBURTON COURT REPAIR AND REFURBISHMENT PROJECT - PROJECT APPRAISAL

The Cabinet considered the report of the Director of Property, Business and Regulatory Services (Item 13 in the Minute Book) detailing the recommended approach in regard to the repair and refurbishment of Ashburton Court. The Director of Property, Business and Regulatory Services detailed progress to date and highlighted the key issues associated with what is a major and complex project.

The Cabinet adopted the recommendations set out in the report. A copy of the decision sheet is attached to these minutes as Appendix 7.

Contact: Peter Colenutt, Education Officer (School Review)

01962 846157; [email protected]

Alex Munro, Education Officer (Admissions & Special Projects)

01962 846462; [email protected]

1 Summary

1.1 The following decisions were made:

a. That public notices be published in accordance with Sections 28 and 29 of the School Standards and Framework Act 1988, to:

· Discontinue Shepherds Spring Infant School and Shepherds Spring Junior School with effect from 31 August 2008 and

· Establish a new two form entry community primary school, to cater for 420 pupils aged 4 - 11 at East Anton, with effect from 1 September 2009;

b. Discussions take place with parents and governing bodies of local schools about arrangements accommodating pupils following the closure of the Shepherds Spring schools. Every assistance reasonably possible will be given to parents to accommodate their wishes;

c. The Andover Education Centre be re-located to the Shepherds Spring Junior School building, suitably adapted with the current lease at Cricklade College being temporarily re-negotiated;

d. A full-core offer Children's Centre be established on the Shepherds Spring Infant School site;

e. Any remaining surplus land be sold to help off-set the costs of implementing the above proposals.

f. The full capital receipt from the sale of part of the Shepherds Spring site be used for the implementation of this strategy.

g. Further research be undertaken in respect of the potential funding of the Education Centre from the Direct Schools Grant;

h. All receipts, capital or revenue, will be reinvested in the Andover area;


i. That an alternative Andover school will be identified to continue to be included in the "Better Chances, Better Lives" - 12 Schools Project.

2 Reason

2.1 The County Council has a statutory responsibility to manage school places efficiently and ensure the best use of existing resources to improve pupil achievements.

2.2 These proposals support the following Corporate Aims:

· Aim 1 - maximising life opportunities, by developing strategies for the most appropriate educational provision;

· Aim 4 - building strong and safe communities, by taking full account of community and neighbourhood issues when deciding upon how best to meet the demand for additional school places;

· Aim 5 - improving services, by considering solutions which will contribute to the raising of educational standards.

2.3 These decisions support the aims of the Children Act:

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) - by ensuring that the proposals promote every opportunity for pupils to take physical exercise and that recreational facilities are safeguarded;

staying safe: (being protected from harm and neglect) - by having access to a secure learning environment and ensuring that school provision is within a reasonable distance;

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, where possible within their own community;

making a positive contribution: (being involved with the community and society and not engaging in anti-social or offending behaviour) - by safeguarding friendship and neighbourhood groups by providing primary education as close to pupils' homes as reasonably practicable;

economic well-being: (not being prevented by economic disadvantage from achieving their full potential in life) - by ensuring that proposals will be to the benefit of all children and give them a sound start to their schooling and future ability to provide both for themselves and their families.

3 Other Options considered and rejected:

3.1 The creation of a one form entry 210 place primary school on the Shepherds Spring Infant and Junior School site.

4 Conflicts of Interest declared by the decision maker - none.

5 Dispensation granted by the Standards Committee - not applicable.

6 Reason for the matter being dealt with if urgent - not applicable.

Approved by: Date:
Councillor T K Thornber, CBE

Contact: Mike Bridgeman, ext 5832 email: [email protected]

1. Summary

1.1 The following decision was made:

That Cabinet's consideration of this report be deferred to September meeting to allow time for the review the rating of paragraph 7 of Appendix (attached to the report) in regard to Local Action for Health.

2. Reason

2.1 To report on corporate sustainability performance during 2005/06, and recommend a new approach to target setting for 2006/07.

2.2 This decision supports all aims of the Corporate Strategy.

3. Other Options Considered and Rejected

3.1 Not to do an annual sustainability report. This was rejected as the report is central to monitoring the County Council's sustainability performance and reviewing priorities as necessary. This has increased in significance since the County Council signed up to the Aalborg Commitments in June 2004 and as sustainability becomes more prominent in the Comprehensive Performance Assessment process.

4. Conflicts of Interest Declared by the Decision Maker or Other Executive Member Consulted - None.

5. Dispensation granted by the Standards Committee - Not applicable.

6. Reason(s) for the Matter being dealt with if Urgent - Not applicable.

Approved by: ..................................... Date: ...................................

Councillor T K Thornber, CBE

934Decn/MB

Contact: Jenny Heath, ext: 7402 Email: [email protected].

1. Summary

1.1 The following decisions are sought:

· That the Leader and the Executive Member for Performance, Efficiency and Communications continue to be kept informed of progress with the Use of Resources assessment for 2006.

· That the County Council continue its current policy of not publishing a separate annual report  pending a clearer stakeholder view emerging on the future form of financial and performance reporting

2. Reasons

2.1 The Use of Resources block in the Comprehensive Performance Assessment (CPA) is a measure of financial probity and a key indication of the Council's ability to deliver value for money. Therefore it provides evidence of how the Council is achieving the Corporate Strategy aim of `Improving Services' - specifically `managing our resources' and `improving our performance'.

3. Other options considered and rejected - none.

4. Conflicts of interest declared by the decision maker, or member or officer consulted - none.

5. Dispensation granted by the Standards Committee - not applicable.

6. Reason for matter being dealt with, if urgent - not applicable.

Approved by: Date:
Councillor T K Thornber, CBE

Contact: Jon Pittam (01962) 847400 [email protected], and

Andrew Smith (01962) 847826 [email protected]

1. Summary

1.1 The following decision is sought:

That the Cabinet approve the updated Capital Strategy, attached as Appendix 1 to the main report.

2. Reason

2.1 The Capital Strategy prepared last year needs to be updated for use as background to the forthcoming consultations with stakeholders on the County Council's budget and capital programme. An up-to-date Capital Strategy will also support the County Council's Comprehensive Performance Assessment.

2.2 The Capital Strategy supports all the Aims of the Council's Corporate Strategy, in particular, Aim 5 of Improving Services.

3. Other options considered and rejected - Not applicable

4. Conflicts of interest declared by the decision maker or a member or officer consulted - not applicable.

5. Dispensation granted by the Standards Committee - not applicable.

6. Reason(s) for the matter being dealt with if urgent - not applicable.

Approved by: ................................... ... Date: .........................

Councillor T.K. Thornber, CBE

Contact: Jon Pittam (01962) 847400 [email protected], and

Andrew Smith (01962) 847826 [email protected]

1. Summary

1.1 This report deals with issues raised when Cabinet agreed the capital programme for 2006/07 to 2009/10 in February 2006, including

· the cost of fees on building-related schemes

· progress on the Strategic Property Review including projections of future capital receipts and proposals for meeting the shortfall of resources to fund the existing capital programme

· proposals to restrict the use of Government borrowing allocations in 2007/08

· proposals to fund the accumulated shortfall of resources for the Adult Services capital programme, enabling a revised programme for 2006/07 to 2009/10 to be approved.

1.2 The following decisions are sought:

a. That the provision of £680,000 per annum in the Policy and Resources capital programme for fees on feasibility studies and other advance work on building-related schemes be increased from 2007/08, when the capital programme is next reviewed

b. That the standard percentage for fees on building-related schemes be increased from 16% of construction costs to 16.5% from 2007/08

c. That, subject to the feasibility of achieving higher than planned capital receipts in 2006/07 and 2007/08, the provision for additional staff or consultancy resources to generate additional capital receipts, funded on an invest-to-save basis, be increased from £190,000 to £500,000 per annum in 2006/07 and 2007/08

d. That the shortfall of capital financing resources in 2007/08 and 2008/09 be taken into account when the capital programme is next reviewed

e. That the failure of the Government to respond positively to representations to provide revenue grant support for loan charges arising from its `supported' borrowing allocations be noted and, as a result, services' capital programme guidelines for 2007/08 be reduced by the following amounts:

	£000
Adult Services	102
Children's Services	3,997
Environment	5,733
Policy and Resources	2,661
Recreation and Heritage	7
	---------
	12,500
	---------

f. That the requirement for Adult Services to pay its contribution of £1.320m towards the programme of improvements to homes for older people between 2000/01 and 2002/03 be waived by retaining centrally its share of the capital receipt from the disposal of Winton House, Winchester

g. That the plans to fund the required programme of capital investment in Adult Services, incorporating the use of 100% of capital receipts from the re-provisioning of Adult Services residential care homes for recycling into property-related spending on Adult Services be agreed

h. That 100% of the proceeds from the sale of two former Children's Services properties, Woodend and Copsehill, in Shepherds Row, Andover, be retained by Adult Services to cover unfunded Social Services capital expenditure relating to Children's Services

i. That the revised capital programme for Adult Services for 2006/07 to 2009/10, as set out in Appendix 2 of the main report, be approved.

2. Reason

2.1 In approving the capital programme for 2006/07 to 2009/10 in February 2006, Cabinet asked for a report on projections for capital receipts, the basis for estimating the cost of fees and on proposals for bringing future years' capital expenditure flows into line with available resources. It is also necessary to put in place plans to reduce the Council's use of Government borrowing allocations in 2007/08 now that there is little likelihood of the Government reversing its decision to reduce revenue grant support to the Council for such borrowing.

2.2 In addition, approval of the Adult Services capital programme was deferred in February 2006 until the funding of a number of outstanding commitments could be resolved.

2.3 Consideration of this report supports Aim 5 of the Corporate Strategy.

3. Other options considered and rejected:

3.1 Not applicable

4. Conflicts of interest declared by the decision maker or a member or officer consulted

4.1 Not applicable.

5. Dispensation granted by the Standards Committee

5.1 Not applicable.

6. Reason(s) for the matter being dealt with if urgent

6.1 Not applicable.

Approved by: ................................... ... Date: .........................

Councillor T K Thornber, CBE

Contact: Jon Pittam, (01962) 847400; [email protected]

1. Summary

1.1 This report reviews the projected outturn for 2006/07 and recommends further action to provide additional balances to cover the risks of a further overspend on Adult Services.

1.2 The following decisions are sought:

a. Children's Services take action to bring its projected overspend back within budget by the year end

b. planned budget savings that cannot be achieved in 2006/07 be reported back to Cabinet in October together with the compensating action being taken to avoid an overspend in 2006/07

c. benefit realisation savings for the pay and benefits review be initiated in advance of implementation to provide financial flexibility and improved workforce productivity

d. Executive members are asked to action the pay and benefits savings in 2006/07 (£500,000, table 6) with a report back to the Cabinet in December on firm plans to make the necessary workforce and budget reductions of £2m in 2007/08, noting that the use of other savings to substitute for workforce savings will not be acceptable.

e. unsupported borrowing is used to release revenue contributions to capital to finance the start up costs of the contact centre, to be repaid by annual efficiency savings of £1m per annum from 2007/08

f. full year budget transfers of £4m (table 7) be included when setting the 2007/08 provisional budget guidelines and forward financial plan to finance the running costs of the contact centre and provide the efficiency savings in recommendation v)

g. Cabinet note the risk of a projected £11m call on balances in 2006/07 from Adult Services

h. savings plans of £14.5m be approved (table 11) to meet the shortfall of £11m and to reinstate balances by £3.5m for the excess withdrawal in 2005/06

i. that £1.5m be withdrawn from the earmarked reserve for the use of local public service agreement reward grant for the three year pilot scheme on home to school transport, to be directed by the Executive member Policy and Resources.

j. the Executive members for Children's Services and Environment are asked to prepare costed business plans for the use of the remainder of the local public service agreement reward grant (table 10) for the October Cabinet meeting

k. a target be set to increase capital receipts by a further £5m in 2006/07 and 2007/08

2. Reason

2.1 Cabinet need to review the current outlook for 2006/07 and take action to mitigate additional risks of further overspending on Adult Services causing financial difficulty during the year.

2.2 Consideration of the report supports the corporate strategy and in particular Aim 5.

3. Other options considered and rejected:

None.

4. Conflicts of interest declared by the decision maker or other Executive member consulted

None.

5. Dispensation granted by the Standards Committee

Not applicable.

6. Reason for the matter being dealt with if urgent

Not applicable.

Approved by: Date:
Councillor T K Thornber, CBE

Contact: Steve Clow, Ext: 7858, email: [email protected]

John Duggan, Ext: 7873, email: [email protected]

Ian Parker, Ext: 7269, email: [email protected]

Councillor T.K. Thornber, CBE