AT A MEETING of the CABINET of HAMPSHIRE COUNTY COUNCIL held at The Castle, Winchester on 26 March 2007

Chairman:

p Councillor T.K. Thornber, CBE

Councillors:

Also present: Councillors M.F. Cartwright; K. Chapman; Dr R.J. Ellis; R.C. McIntosh and Mrs C.A. Leversha.

252. APOLOGIES

All members of the Cabinet were present and accordingly there were no apologies for absence.

253. 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.

254. MINUTES

The minutes of the meeting held on 12 March 2007 were confirmed as a correct record.

255. CHAIRMAN'S COMMUNICATIONS

The Chairman invited the County Treasurer to report on the key headlines of the Lyons Review and similarly in respect of the Chancellor of Exchequer's Budget Statement prior to going into private session for consideration of the exempt Item 9 on the agenda.

256. ANNUAL AUDIT AND INSPECTION LETTER 2005/06 AND COUNTY
COUNCIL'S RESPONSE

Due to the link between Items 5 and 6 on the agenda, the Cabinet considered the items in tandem.

Stephen Taylor, the County Council's Relationship Manager from the Audit Commission, accompanied by his colleagues Stephen Goodyear and Kelvin Pattison attended the meeting to present the findings of the Annual Audit and Inspection Letter for 2005/06. They highlighted the key headlines and a number of recommendations on areas requiring action by the County Council in the coming year. Overall Mr Taylor reported a solid performance by the County Council with some positive messages arising to support the authority's Comprehensive Performance Assessment (CPA) rating of four-star improving well. In response to a specific Member question regarding the management of the County Council, Mr Taylor reported that the findings detailed in the Inspection Letter indicates to the people of Hampshire that the County Council is doing a good job in delivering its services.

The Chief Executive reported that the letter signalled a very good result overall for the County Council during what had been a challenging period, especially for Children's Services and Adult Services which had experienced significant turmoil due to restructuring. In particular, he highlighted that as the County Council's starting point was as a four-star authority, the harder it is to improve year-on-year therefore it was pleasing to see that 60% of the County Council's Best Value Performance Indicators (BVPIs) show improvement. In referring to the County Council's response, the Chief Executive drew attention to, and expanded on, the appendix to Item 6 that outlined an action plan of specific work that is underway to address the Auditor's recommendations.

In welcoming the Inspection Letter the Cabinet adopted the recommendation set out in the report subject to an amendment to congratulate all staff for the contribution they have made to the County Council's performance. A copy of the substantive decision sheet is attached to these minutes as Appendix 1.

257. OUTLINE BUSINESS CASE FOR STREET LIGHTING PRIVATE FINANCE INITIATIVE

Councillor Collett declared a personal interest as a member of Yateley Town Council, which is one of the potential beneficiaries of the scheme. Councillor Kendal declared a personal interest as Leader of New Forest District Council in respect of any future decisions the district council may need to take pertinent to the scheme.

The Cabinet considered the report of the Director of Environment (Item 7 in the Minute Book) seeking approval to the submission of an Outline Business Case to the Department for Transport in respect of the proposed Street Lighting Private Finance Initiative (PFI). This report follows initial consideration by the Cabinet in January 2006 when authorisation was given for an Expression of Interest to be prepared and submitted, and further to a report in November 2006 which explored the implications of joint working with Southampton City Council and West Sussex County Council who had also submitted bids. The Director of the Environment expanded on the report and confirmed that this latest report had been prepared to bring to the Cabinet's attention changes to both the revenue and capital estimates formerly reported.

In conclusion of a full discussion and taking all views into consideration, the Cabinet agreed that the best way forward for the County Council to address the backlog of maintenance and providing new investment in street lighting stock was to submit an outline business case for Street Lighting PFI as seeking alternative means of funding would not qualify for grant support from the Government and would result in higher costs to the County Council in the longer term. However the Director of Environment was asked to note the Cabinet's ambition to limit lighting levels and light pollution in more rural areas, that the contract allows Hampshire to benefit from advancements in technology to improve energy efficiency and energy management, and that the aesthetics of street lighting in Hampshire is borne in mind.

The Cabinet adopted the recommendation set out in the report and a copy of the decision sheet is attached to these Minutes as Appendix 2.

258. THE LYONS REPORT

At the invitation of the Chairman the County Treasurer gave a presentation on the Lyons Report following its publication on 21 March 2007, the same day as the Chancellor of the Exchequer presented his Budget Statement. The County Treasurer focussed on the background to the Lyons Review, short and medium term recommendations, and the Local Government Association and central Government responses. In addition the County Treasurer reported the main headlines from the Budget Statement, which confirmed the funding package for schools for the next three years; the setting of a 3% efficiency savings target across all services; increase in landfill tax from April 2008 which will significantly increase the County Council's costs in managing the waste contract, and disappointingly no additional funding for Adult Social Care despite the known trend nationally of under-funding for these particular services.

The Cabinet were of the view that overall the outcome of the Lyons Review was very disappointing given the lengthy review period and the speculation during it. Of particular concern to the Cabinet in respect of the budget Statement was the announcement of an [increased] efficiency savings target of 3%, which would just add to what was already a pressured situation for Hampshire, and the implications of the increase in landfill tax.

259. EXCLUSION OF THE PRESS AND PUBLIC

The following report is not for publication as it contains exempt information within Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972 being information relating to the financial or business affairs of any particular person (including the authority holding that information). Further, it is considered that, in all the circumstances, the public interest in maintaining this exemption outweighs the public interest in disclosing this information. While there may be a public interest in disclosing this information, namely it will identify the details of the proposed transactions, it is felt that on balance this is outweighed by other factors in favour of maintaining the exemption, namely that to reveal details of the negotiation would adversely affect the County Council's negotiating position.

260. CAPITAL FUNDING PARTNERSHIP WITH HAMPSHIRE PRIMARY CARE TRUST

With the concurrence of the Chairman under Section 100B (4)(a) of the Local Government Act 1972, this matter has been included on the agenda as a decision is required prior to 31 March 2007.

The Cabinet considered the exempt report of the County Treasurer and Director of Adult Services (Item 9 in the Minute Book) which detailed a proposal to assist the Hampshire Primary Care Trust (PCT) to deliver services in partnership with the County Council. The PCT has the power to make capital grants to the County Council pursuant to the objectives of the local health improvement plan. Accordingly, planned capital investment in adult social care for 2006/07 would meet those objectives and help to maximise the resources available for the provision of public services within Hampshire. The County Treasurer reported the reasoning behind this decision being sought and confirmed that this was a one-off proposal in respect of the financial position for 2006/07 and that any future requests would be considered on the merit of the proposal being put forward.

The Cabinet adopted the recommendation and a copy of the decision sheet is attached to these Minutes as Appendix 3.

Contact: Gary Smith, ext 7691 email: [email protected]

1. Summary

1.1 The following decision was made:

Cabinet received the comments by the District Auditor and approved the approach laid out in the Appendix to the report as the County Council's formal response to the Annual Audit and Inspection Letter 2006, whilst congratulating all staff on the contribution they have made to the performance of the County Council.

2. Reason

2.1 The Annual Audit and Inspection Letter contains the findings of the District auditor, including judgements on the Council's overall performance, direction of travel and use of resources. This report provides a response to those findings that will enable the continued improvement of the Council and delivery against the Corporate Strategy.

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

Approved by: Date:

Councillor Ken Thornber, CBE - Chairman

Contact: Trevor Wallis, tel 023 9244 6510 email: [email protected]

1. Summary

1.1 The following decision is sought:

That approval is given to the submission of an Outline Business Case to the Department for Transport in respect of the proposed Street Lighting Private Finance Initiative.

2. Reason

2.1 Addressing the backlog of maintenance and providing new investment in the street lighting stock and improving lighting standards will make a significant contribution to reducing road accidents, crime and fear of crime.

3. Other Options Considered and Rejected

3.1 Any alternative source of finance will not attract Government funding and will result in increased borrowing costs and/or interest charges being charged to the County Council Revenue Budget.

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 CBE - Chairman

1290Decn/TW

Contact: Nick Gibbins, (01962) 84 7544; [email protected]

1 Summary

1.1 It is proposed to assist the Hampshire Primary Care Trust (PCT), which has greater capital than revenue flexibility, to deliver services in partnership with Hampshire County Council.

1.2 The following decision is sought:

· That the Cabinet approve financial transactions which will assist the Hampshire PCT to the overall benefit of public services within Hampshire

2 Reasons

2.1 The PCT has the power to make capital grants to the County Council for purposes that fulfil the objectives of the local health improvement plan and planned capital investment in 2006/07 on adult social care would meet those objectives. The use of this power would assist in maximizing the resources available for the provision of public services within Hampshire. The decision supports the corporate strategy by assisting in maximising wellbeing.

3 Other options considered and rejected

3.1 Not to support the PCT in the way proposed, which will put greater pressure on the PCT's budget, and reduces the scope for effective partnership working between the County council and the PCT.

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 for the matter being dealt with if urgent

6.1 An agreement needs to be entered into with the Hampshire PCT prior to 31 March 2007 to utilize 2006/07 capital funding.

Approved by: Date:
Councillor T K Thornber CBE, Chairman