AT A MEETING of the CABINET of HAMPSHIRE COUNTY COUNCIL held at The Castle, Winchester on 9 February 2007.

Chairman:

p Councillor T.K. Thornber, CBE

Councillors:

Also present: Councillor Mrs E.M. Byrom; M.F. Cartwright; K.G. Chapman; A.P. Collett; B.D. Dash; Dr R.J. Ellis and Mrs C.A. Leversha

229. APOLOGIES

Apologies for absence were received from Councillor Mrs Banks who was representing the County Council at a Hampshire Care Association conference.

230. 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.

231. MINUTES

The minutes of the meeting held on 22 January 2007 were confirmed as a correct record subject to an amendment to minute 228 in respect of the sentence beginning "In addition, approval was sought....", deletion of the text "within the Children and Young People's Strategic Partnership which will be linked to the Children's Services Policy Review Committee".

232. CHAIRMAN'S COMMUNICATIONS

a) The Chairman welcomed Cynthia Shanmugalingam from the Local
Government Team at HM Treasury to observe the meeting.

b) The Cabinet congratulated John Coughlan, Director of Children's Services for the excellent interview he had given that morning on BBC Radio 4.

233. CORPORATE BUSINESS PLAN

The Cabinet considered the report of the Chief Executive (Item 5 in the Minute Book) seeking approval of the Corporate Business Plan for 2007/08 as the action plan that will deliver the corporate priorities as an integral part of the Corporate Strategy and to drive the budget setting process. The Chief Executive expanded on the key areas of the Business Plan and drew particular attention to the activities detailed and the responsibilities of the Cabinet/Corporate Management Team sponsors.

The Cabinet welcomed the document and recognised the amount of work that had gone into its preparation. During the course of a full discussion, the Cabinet suggested some changes to the Cabinet sponsors to enhance the cross-cutting approach. The Cabinet were also keen to see the development of the corporate priorities strengthened (paragraph 4 of the supporting report to the Business Plan refers) to give a strong message of the County Council's commitment to a safer and more secure environment for Hampshire people by, amongst other things, taking positive action to deter low level crime and disorder. While the level of criminal activity in the County is low compared to elsewhere, perception of insecurity is high due to low level crime and social disorder. Therefore, it was emphasised that the County Council will, in all of its functions, carry out its duties under section 17 of the Crime and Disorder Act. Other points raised included the need for good quality, affordable housing, achieving general economic prosperity in Hampshire, the importance of all authorities working together to make the best use of Accredited Community Safety Officers (ACSOs) and Police Community Safety Officers (PCSOs), the importance of supporting vulnerable adults who have children, highlighted that low levels of government funding affects the County Council's capacity to deliver and to recognise that the County Council's partners also face sustained pressures on their resources, all of which were noted by the Chief Executive.


The Cabinet adopted the recommendations set out in the report subject to several amendments to the introduction of the Business Plan as detailed in the substantive decision sheet attached to these minutes as Appendix 1.

234. REVENUE BUDGET AND PRECEPT 2007/08 AND MEDIUM TERM FINANCIAL PLAN 2008/09 TO 2009/10

The Cabinet considered the report of the County Treasurer (Item 6A in the Minute Book) proposing recommendations to the County Council on the 2007/08 revenue budget and the council tax based on the budget guidelines approved by the Cabinet on 18 December 2006. The medium term financial plan for the two-year period 2008/09 and 2009/10 was also outlined. The County Treasurer highlighted the key areas of the report and drew Members attention to the latest position with service budgets and addition to balances for 2006/07 and for 2007/08, the grant position, budget guidelines, cash increase in service guidelines, total redeployments, spending pressures and savings, major risks and reserves and the provisional council tax bill.

Taking into account the key points raised by the County Treasurer, the Cabinet expressed strong disappointment that despite representations to the Government, the grant increase of 2.7% remained unchanged despite retail price inflation of 4.4% and consumer price inflation for services of 3.8%. Coupled with the potential grant loss of £38m over the next three-year funding period, mainly to the Midlands and north of the country, the County Council faces severe pressures especially in regard to the under-funding of Adult Social Care services, Children's Services and waste management. Also emphasised was the importance of working with partners to ensure that vital resources are targeted to the area of most need. The Cabinet did however recognise the Government's revenue support to Hampshire schools which had done considerably better than other County Council services albeit the funding was slightly below the national average. Cabinet also agreed that subject to any appropriate conditions, £95,000 be allocated from the Policy and Resources grants budget, for one year only, to replace the subsidy withdrawn by Children's Services from field study centres.

The Cabinet adopted the recommendations set out in the report subject to an amendment to recommendations 2 and 12 in respect of an increase to the amount of the Environment carry forward on highway maintenance. A copy of the substantive decision sheet is attached to these minutes as Appendix 2.

235. CAPITAL PROGRAMME 2007/08 TO 2010/11

The Cabinet considered the report of the County Treasurer (Item 6B in the Minute Book) setting out the proposed capital programme for the four-year period 2007/08 to 2010/11 and seeking agreement of recommendations to the County Council. The County Treasurer highlighted the key areas of the report and particularly drew attention to the position in respect of unsupported borrowing allocations following the Government's decision not to provide full revenue grant support towards these loans.. The Cabinet would continue to lobby the Government to recognise the cost of new supported borrowing when calculating the revenue grant floor or to provide full support by capital grants. The opportunity to reconsider its approach will present itself to the Government when the results of the Comprehensive Spending Review (CSR07) are announced in summer of 2007 and the Cabinet await the outcome with interest.

In expanding on capital funding, the Director of Property Business and Regulatory Services drew attention to a pathfinder programme for a new capital funding stream for the improvement of primary schools and primary age special schools that the County Council had been selected for, along with Kent County Council for the South East region. Under the South East Centre of Excellence, it had been agreed that the Director would be implementing both Hampshire's and Kent County Council's pathfinder models. The Cabinet were pleased to note that central Government had selected these projects as the most deserving cases in the South East region.

The reduced take up of supported borrowing in the New Deal for Schools (NDS) Modernisation programme for Children's Services had been offset in 2007/08 by an advance of capital grant of £5.4m for NDS from the following three years. The overall impact will depend upon capital grant support replacing the borrowing approvals during the CSR07 period.

In conclusion of a full discussion during which Members detailed questions were answered, the Cabinet adopted the recommendations set out in the report. A copy of the decision sheet is attached to these minutes as Appendix 3.

236. EDUCATION AND INSPECTIONS ACT 2006 - IMPLICATIONS FOR THE LOCAL AUTHORITY

The Cabinet considered the report of the Director of Children's Services (Item 7 in the Minute Book), which outlined the additional statutory duties imposed on the County Council by the Education and Inspections Act 2006. The Director of Children's Services expanded on the main provisions of the Act, which will require changes to current practice in some areas, and other implications for the County Council.

During the course of the ensuing discussion the Director of Children's Services answered Members detailed questions and particularly in relation to the establishment of Trust schools and Academies. The Cabinet emphasised the importance of establishing a clear framework for the consideration of any proposals for a Trust school, and similarly the importance of the County Council having a view as to whether it would wish in principle to propose or support the establishment of an Academy.

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

Contact: Jenny Heath, ext no 7402, e-mail: [email protected]

1. Summary

1.1 The following decisions were made:

a) That Cabinet approve the development of the Corporate Business Plan as
described subject to a number of amendments to the Business Plan's
Introductory pages (Appendix 1 to the report).


b) That Cabinet approve the designation of the elements of the Corporate
Business Plan, along with `Looking After Hampshire, Looking out for you'
as `The Corporate Strategy'

2. Reason

2.1 The Corporate Business Plan 2007/08 provides the action plan that will deliver the corporate priorities and is an integral part of the Corporate Strategy

3. Other Options considered and rejected

3.1 The content and presentation is the result of extensive consultation with departmental staff who are responsible for delivering and monitoring the activities and targets. Options for presentation and criteria for inclusion in the plan have formed part of that consultation process.

4. Conflicts of Interest declared by the decision maker or other Executive member consulted - none

5. Dispensation granted by the Standards Committee - none

6. Reason(s) for the matter being dealt with if urgent - none

Approved by: Date:
Councillor T. K. Thornber, C.B.E. - Chairman

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

1 Summary decision sheet

1.1 This decision sheet sets the scene for decisions on the 2007/08 revenue budget and council tax, based on the budget guidelines provisionally set in September 2006 and approved in December 2006. The 2007/08 budget takes account of subsequent developments and the reports back by the Executive Members. The council tax rise is 4.9% as set in the guidelines and within the Government's capping limit of 5%.

1.2 The report is in four parts:

· this summary decision sheet, containing the detailed recommendations required on the budget and council tax

· the Executive Summary, part A of the accompanying report, which can be read as a stand alone review of the 2007/08 budget proposals. There is no need to read beyond that unless further information or details are required

· part B of the accompanying report which provides more information behind the recommendations and the Executive Summary

· the appendices which comprise the detail of the budget, as considered by Executive Members for each service

1.3 The following decisions were made, based upon the recommendations from the Leader and Cabinet to the County Council for the 2007/08 budget and council tax that:

1. the revised estimates 2006/07 (Appendix 2) be approved

2. the anticipated underspendings of £0.7m on Environment and Policy and Resources and an overspending of £0.3m on Children's Services both be carried forward to 2007/08 (Table 4)

3. the estimated over commitment on Adult Services of £10.9m in 2006/07, as part of the two year recovery plan, be written off against balances as provided for in the review of the 2006/07 budget by Cabinet in July 2006; and that any remaining balance of the 2006/07 contingency within the Adult Services budget at the year end be carried forward to 2007/08 to offset pressures in that year, providing that the overall impact on balances does not exceed £10.9m.

4. a provision for future inflation and contingencies of £15.0m, including £4m for the waste management contract be approved (Table 23)

5. the additional pressures and growth proposals from Executive Members totalling £25.7m be approved (Table 1 and Appendix 4)

6. the cash efficiency savings and redeployment proposals of £21.4m put forward by Executive Members, be approved (Table 1 and Appendix 4)

7. additional growth of £0.8m for Hampshire Action Teams; and additional capital financing costs of £0.7m from higher interest rates and prudential borrowing, pending capital receipts; both be approved as met by additional income from the growth in the tax base

8. the annual review of charges and maximisation of income across services (Table 14 and Appendix 6) be approved

9. adjustments to reserves as set out in paragraph 11 and Table 19 and the overall level of reserves (Appendix 10) be approved

10. the estimated level of balances at 31 March 2008 of £14.4m (Table 20) be approved

11. the workforce implications of the proposed budget 2007/08 (Appendix 8) be agreed

12. the budget for 2007/08 as summarised in Tables 21 to 25, set out in detail in Appendix 7 and including the adjustments in recommendations 5 to 10 of the report and further adjustment to the Environment carry forward on highway maintenance, be approved

13. the medium-term financial plan for 2008/09 - 2009/10 as set out in Appendix 9 be approved

14. the treasury management and the annual investment strategies for 2007/08, as set out in Appendix 11, be approved

15. it be a recommendation to Council that

a) the Treasurer's report under Section 25 of the Local Government Act 2003 be taken into account when the Council determines its budget and precept for 2007/08 (Appendix 13)

b) the revenue budget for 2007/08 (as set out in the attached draft budget book) and the medium-term financial plan be approved

c) the total budget requirement for the general expenses of the County Council for the year beginning 1 April 2007 be £598,223,000

d) the County Council's band D average council tax for the year beginning 1 April 2007 be £955.62

e) the County Council's council tax for the year beginning 1 April 2007 for properties in each tax band be:

	£
Band A	637.08
Band B	743.26
Band C	849.44
Band D	955.62
Band E	1167.98
Band F	1380.34
Band G	1592.70
Band H	1911.24

f) precepts be issued totalling £471,356,287.22 on the billing authorities in Hampshire, requiring the payment, in such instalments and on such dates set by them and previously notified to the County Council, in proportion to the taxbase of each billing authority's area as determined by them and as set out below:

	£
Basingstoke and Deane Borough Council	61,049.70
East Hampshire District Council	47,044.89
Eastleigh Borough Council	43,012.29
Fareham Borough Council	42,043.00
Gosport Borough Council	26,948.20
Hart District Council	36,953.10
Havant Borough Council	42,468.00
New Forest District Council	71,687.40
Rushmoor Borough Council	30,359.64
Test Valley Borough Council	45,019.00
Winchester City Council	46,661.35

g) that the annual investment strategy (section 7 to Appendix 11) be approved

h) the prudential indicators (annex to Appendix 12) be approved.

2. Reason

2.1 The full County Council must agree the 2007/08 revenue budget and set the
council tax for 2007/08 at its meeting on 21 February 2007. The Leader will
present his budget speech and recommendations at that meeting. This report
provides the background to those budget decisions and presents the
recommendations from the Leader and Cabinet to the County Council.

2.2 The County Treasurer under Section 25 of the Local Government Act 2003 is
also required to report to the full Council on the:

· robustness of the estimates for 2007/08

· adequacy of the financial reserves in the budget.

2.3 These decisions support the corporate strategy by providing resources for:

· Hampshire safer and more secure for all

· maximising wellbeing

· enhancing our quality of place

2.4 The budget is part of the integrated financial, performance and workforce planning process linked to the corporate strategy, and resources have been allocated as the highest priority for maximising wellbeing towards meeting the needs of the most vulnerable in Adult Services and Children's Services.

3. Other options considered and rejected:

3.1 Other options are not available as far as process and timetable are concerned, but it is expected that the leaders of the opposition parties will wish to present their own recommendations on the budget and council tax to the County Council as amendments to these proposals.

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, C.B.E. - Chairman

Contact: Jon Pittam, (01962) 847400, e-mail: [email protected]

1. Summary

1.1 The accompanying report sets out for approval the proposed capital programme for 2007/08 to 2010/11, based on the guidelines agreed by Cabinet on 18 December 2006 and the support for capital schemes recently announced or confirmed by the Government. The proposals take account of the County Council's capital strategy and the Prudential Code for Capital Finance in Local Authorities including the capital financing position, the level of debt outstanding and the consequences for the revenue budget and council tax.

1.2 The following decisions are sought, based on the recommendations of the Leader and Cabinet to the County Council, for the capital programme for 2007/08 to 2010/11:

1 That the County Council continues to lobby the Government to provide full revenue grant funding for Government supported borrowing allocations or provide its support as capital grants (paragraph 4.4)

2 That unsupported borrowing be used to meet the temporary shortfall of resources in 2006/07, estimated to be £4.864m, to be repaid from forecast surplus capital resources in 2007/08 (paragraph 2.2)

3 That Children's Services schemes and resources totalling £19.496m be deferred from the 2006/07 capital programme to 2007/08 (paragraph 7.2)

4 That additions to the Children's Services capital programme for 2007/08 to 2010/11 financed by unsupported borrowing of up to £26.438m, including £12.690m for 2007/08, be approved in principle, subject to further reports to Cabinet on specific proposals (paragraph 7.15)

5 That the inclusion in the proposed Environment capital programmes for 2008/09 to 2010/11, of schemes costing £4.444m, to be funded from additional external resources that have yet to be identified, be approved subject to those resources being found or equivalent reductions made in the programme (paragraph 8.2)

6 That the proposal to increase the provision in the Policy and Resources capital programme for 2007/08 to 2010/11 for fees on feasibility studies by £0.5m per annum be approved (paragraph 9.2)

7 That the Recreation and Heritage capital programme guideline for 2007/08 be increased by bringing forward £0.1m from the programme for 2010/11, funded in 2007/08 by unsupported borrowing (paragraph 10.1)

8 That it be a recommendation to Council that:

a) the capital programme for 2007/08 be approved as set out in Appendix 5 of the accompanying report and subject to the conditions set out in section B.3 of the County Council's Financial Procedures and, where appropriate, to the approval of the executive member for Policy and Resources to proposals by executive members to retain more than a 25% share of capital receipts

b) the remainder of the capital programmes for 2008/09 to 2010/11 be approved as set out in Appendix 5 for the purpose of undertaking design work (including the preparation of feasibility and design project appraisals)

c) expenditure on preliminary design and planning work for major transport schemes be permitted when they have achieved a place in the County Council's Local Transport Plan, subject to the cost being met within existing Government allocations

d) authority be given to incur expenditure on land purchases as follows:

(1) up to the sum specified in respect of sites still required for the schemes included in the capital programme for the period 2007/08 to 2010/11 provided that the relevant scheme has been the subject of a feasibility or design project appraisal approved by the relevant executive member

(2) up to the amount included in the 2007/08 programme in respect of advance and advantageous land purchases.

2. Reason

2.1 The full County Council must agree the capital programme for 2007/08 to 2010/11 at its meeting on 21 February 2007. The Leader will present his budget speech and recommendations at that meeting, including proposals for the capital programme. This report provides the background to the capital programme and proposes the recommendations from the Leader and Cabinet to the County Council.

2.2 These decisions support all the County Council's corporate priorities as the capital programme provides financial resources for:

Hampshire safer and more secure for all

Maximising wellbeing

Enhancing our quality of place.

3. Other options considered and rejected

3.1 Other options are not available as far as process and timetable are concerned, but the leaders of the opposition parties may wish to present their own recommendations on the capital programme to the County Council as amendments to these proposals.

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

4.1 None.

5. Dispensation granted by the Standards Committee

5.1 None.

6. Reason for the matter being dealt with if urgent

6.1 Not applicable.

Approved by: Date:
Councillor T.K. Thornber, C.B.E - Chairman

Contact: John Coughlan, ext 6400, e-mail: [email protected]

John Clarke, 6459, e-mail: [email protected]

1. Summary

1.1 The following decision is sought:

That Cabinet recognises the additional statutory duties imposed on the County Council by the Education and Inspections Act 2006 and acknowledges the likely future resource and service implications for the Children's Services Department highlighted in the report.

2. Reason

2.1 The Act sets out important new duties for the County Council which will require changes to current practice in some areas with consequential resource implications.

2.2 This decision supports the following Hampshire County Council priority:

"Maximising well-being" - the Act supports the corporate strategy by requiring local authorities and governing bodies to promote high standards in the fulfilment of every child's potential and, in particular, by ensuring that pupils from disadvantaged families are given greater educational opportunities.

2.3 The decision supports the following Aims of the Children Act:

Being healthy; Staying safe; Enjoying and achieving; Making a positive contribution - by enhancing pupil access to schools, offering wider curriculum choices at Key Stage 4 and improving the quality of school food.

3. Other Options considered and rejected:

3.1 The Act sets out a range of additional statutory responsibilities for local authorities and governing bodies. It is likely that detailed proposals on implementation will include a range of options in some areas.

4. Conflicts of Interest declared by the decision maker or other Executive Member consulted - None.

5. Dispensation granted by the Standards Committee - None.

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

Approved by: Date:
Councillor T. K. Thornber, C.B.E. - Chairman