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

Chairman:

p Councillor T.K. Thornber, CBE

Councillors:

Also present with the agreement of the Chairman: Councillors M.F. Cartwright; A.P. Collett; B.D. Dash and Mrs C.A. Leversha.

348. APOLOGIES

Apologies for absence were received from Councillor M.J. Kendal.

349. DECLARATIONS OF INTEREST

Members were mindful that where they believed they had a personal or prejudicial interest in any matter considered at the meeting declared that interest at the time of the relevant debate and, having regard to the circumstances described in paragraphs 9, 10, 11 and 12 of the County Council's Code of Conduct, considered whether to leave the meeting whilst the matter was discussed, save for exercising any right to speak in accordance with paragraph 12 of the code.

350. MINUTES

The minutes of the meeting held on 29 October 2007 were confirmed as a correct record.

351. CHAIRMAN'S COMMUNICATIONS

The Chairman welcomed Julia Gavin from the Corporate Communications team in the Chief Executive's department, who observed the meeting as part of a personal development exercise.

352. ASHBURTON COURT - PROGRESS REPORT

The Cabinet considered the report of the Director of Property, Business and Regulatory Services (Item 5 in the minute book) detailing progress on the main construction project to complete the first phase of the programme; summarising the plans and actions to achieve the critical Christmas/new year period up to the end of January 2008 and the works to enable this; and summarising the financial plan to manage the project within the approved budget. In support of the report Steve Clow, the County Council's Head of Architecture together with Julian Lipscombe, Director of Bennetts Associates, Architects gave a short presentation providing Members with the opportunity to see a `digital walkthrough' of how the east wing of the building will look upon completion. They also drew attention to the high focus of the project on environmental improvements, sustainability and energy efficiency, and the high level collaboration between the County Council, consultants and other organisations such as the Carbon Trust to provide accessible and flexible modern office accommodation for optimum occupancy whilst achieving value for money.

The Cabinet expressed their support for the progress achieved so far and the innovative approach adopted by all involved in the project. Accordingly the recommendations set out in the report were adopted and a copy of the decision sheet is attached to these minutes as Appendix 1.

353. POST OFFICES CHANGES PROGRAMME - CONSULTATION RESPONSE

The Cabinet considered the report of the Chief Executive (Item 6 in the minute book) summarising the consultation proposals that the Post Office Ltd published on 16 October 2007 to make significant changes to the provision of services in Hampshire. The closing date for responses to the consultation was 26 November 2007 therefore the County Council's draft response was circulated at the meeting for discussion.

The Cabinet expressed their strong concerns about the proposals, particularly the insufficient consultation period (only six weeks) which has not allowed the County Council's Hampshire Action Teams, as a principal consultee to consider the proposals as thoroughly as they would have liked; the lack of detail in regard to the outreach proposals; the overall costs associated with the changes programme; the detrimental effect the closures will have on communities in Hampshire, particularly in rural areas; and the absence of an opportunity for the operators of the post offices identified for closure to put forward a business case to support the continuation of the service they offer before a final decision is taken by Post Office Ltd. The Cabinet noted that officers are awaiting a response to a Freedom of Information request submitted to Post Office Ltd in regard to the outreach proposals.

The Cabinet adopted the recommendation set out in the report together with two further resolutions to reflect the views expressed during the meeting. A copy of the substantive decision sheet is attached to these minutes as Appendix 2. A copy of the final consultation response will be made available on the County Council's website.

354. AN OVERVIEW OF CHILD WELL-BEING IN RICH COUNTRIES - IMPLICATIONS FOR HAMPSHIRE

The Cabinet considered the report of the Director of Children's Services (Item 7 in the minute book) setting out the main findings of the UNICEF report "An overview of child well-being in rich countries". The Cabinet's endorsement of the principles contained in the Declaration on Child Well-being sponsored by UNICEF (as set out in Appendix 1 to the report) was also sought to inform the County Council's future planning for the improvement of services to support the well-being of children and young people in the county.

The Cabinet expressed their concern in regard to the key findings in the UNICEF report, which gives a clear but disturbing message about the current issues affecting the well-being of children and young people in the UK. Particularly worrying was the low proportion of young people who do not participate in education beyond the age of 16 and who have low aspirations; the problems of modern-day society; and the effects of family breakdown, deprivation and poverty. The Cabinet also emphasised the importance of encouraging inter-generational activities and to consider carefully the activities provided at extended schools and Children's Centres.

In conclusion of a full discussion, the Cabinet requested that the Children's Services Policy Review Committee take an in-depth look at the UNICEF report's findings to get a clear idea of what the Hampshire position is and what the County Council's leadership role should be and that a seminar for all Members of the County Council be convened in due course.

The Cabinet adopted the recommendation set out in the report together with two additional resolutions to reflect the views expressed during the meeting. A copy of the substantive decision sheet is attached to these minutes as Appendix 3.

355. 2007/08 BUDGET MONITORING UPDATE

The Cabinet considered the report of the County Treasurer (Item 8 in the minute book) reviewing the budget monitoring position for 2007/08 particularly focussing on progress to achieve budgeted savings and in dealing with budget pressures. The report also reviews the position at the end of the second quarter on high risk/demand led budgets, overall employee budgets, savings plans and financial health indicators to provide an overall corporate context to budget monitoring. It was emphasised that the County Council's capital assets are not included in the financial health indicators summary to offset the reported debt levels (appendix 3 to the report refers).

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

356. CONSULTATION ON REFORMS TO THE LOCAL AUTHORITY BUSINESS GROWTH INCENTIVES SCHEME (LABGI)

The Cabinet considered the report of the Chief Executive and County Treasurer (Item 9 in the minute book) summarising the Government's consultation paper seeking views on the principles that should underlie a revised LABGI scheme. The report also sought approval of the proposed County Council response as set out in an appendix to the report. The County Treasurer expanded on the main issues raised in the consultative paper (as detailed in paragraph 3.1 of the report) together with the key points of the proposed County Council response (as detailed in paragraph 3.2 of the report).

During the course of a full discussion the Cabinet expressed strong concerns about the proposals for a revised scheme which is expected to distribute much less of the growth in business rates than the current scheme. This will result in only £150m being available in England for 2009/10 and 2010/11 (as compared with £935m to cover the spending review period 2005/06 to 2007/08), with no LABGI at all in 2008/09. The Cabinet were of the view that it has been necessary for this type of incentive to be used by local authorities to support insufficient revenue grant settlements by the Government, therefore the significant reduction proposed in the revised scheme will put key services under even more pressure.

The Cabinet adopted the recommendation set out in the report subject to the inclusion of an introductory paragraph to the County Council's response to reflect the views expressed during the meeting. A copy of the decision sheet is attached as Appendix 5 and a copy of the final consultation response will be made available on the County Council's website.

357. FOLLOW UP REPORT ARISING FROM THE INVESTIGATON INTO THE ARRANGEMENTS FOR THE USE OF IT CONSULTANTS IN CONNECTION WITH THE CONTACT CENTRE PROGRAMME

With the concurrence of the Chairman under Section 100B (4)(b) of the Local Government Act 1972, this matter was included on the agenda to provide Members with a follow-up report on specific aspects arising from the investigation report considered on 24 September 2007, as resolved by the Cabinet.

The Cabinet considered the report of the Chief Executive (Item 10 in the minute book) making recommendations in specific areas arising from the investigation report considered on 24 September, namely matrix management; procurement arrangements; centralisation of expertise and the role of county supplies; and the involvement of consultants in interviews for the appointment of consultants in similar fields. In expanding on the report, the Chief Executive provided Members with some contextual information particularly in relation to the vast amount of business successfully contracted by the County Council on an annual basis, highlighted the lessons to be learned which underpin the report's recommendations and reported on the steps that have already been taken to ensure that robust practices are in place across the organisation as a whole.

In considering the report in detail and with particular regard to the issues surrounding matrix management, the Cabinet adopted the recommendations set out in the report subject to some amendments and an additional resolution for a further report on the proposed guidance to be submitted no later than March 2008. A copy of the substantive decision sheet is attached as Appendix 6.

Contact: Andrew Smith Ext: 7826 email: [email protected]

John Duggan Ext: 7873 email: [email protected]

CAB1107A

Contact: Paddy Hillary Ext 7391 email [email protected]

1. Summary

1.1 The following decisions were made:

(a) That Cabinet agree the County Council's response to the consultation from Post Office Ltd on proposals to make changes to the provision of post office services in Hampshire.

(b) The County Council requests Post Office Ltd that where their
branches supply a viable business case, the proposal to close those branches should be reconsidered.

(c) that a copy of the County Council response be sent to all Hampshire MPs and to the Secretary of State for Communities and Local Government.

2. Reason

2.1 The Post Office Ltd have published proposals to make significant changes to the provision of services in Hampshire for public consultation. This includes the possible closure of 41 post offices and the introduction of 9 areas for development of an outreach service. The consultation period ends 26 November 2007 with final implementation expected in 2008.

2.2 The County Council recognises the importance of post offices to both the economic and social wellbeing of residents and businesses in urban and rural areas of the county and will be making a strong response to the consultation. This supports the County Council's corporate aim of maximising wellbeing.

3. Other Options considered and rejected:

3.1 Not to make a response to the consultation.

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: John Clarke, Deputy Director of Children's Services, telephone 01962 846464, email [email protected]

1. Summary

1.1 The following decisions were made:

a) That the Cabinet of the County Council endorses the Declaration produced in June 2007, following the publication of the UNICEF report `An overview of child well-being in rich countries', and that the principles set out in that Declaration inform the Council's future planning for the improvement of services to support the well-being of children and young people in the county.

b) That a commission is established under the auspices of the Children's Services Select Committee to investigate further the findings of the UNICEF report, its relevance to Hampshire's children and what the County Council's leadership role should be.

c) That a seminar for all Members of the County Council be convened in
due course.

2. Reason

2.1 This decision supports the following Hampshire County Council priorities:

"Making Hampshire safer and more secure for all" - by reducing disaffection among children and young people.

"Maximising well-being" - by improving health and safety amongst children and young people; their achievements; the quality of family and peer relationships; and reducing the risks faced by children and young people.

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

(Being healthy; Staying safe; Enjoying and achieving; Making a positive contribution; Economic well-being) by bringing each of these dimensions into sharper focus and suggesting ways in which each of these can be improved.

3. Other Options considered and rejected:

3.1 None.

4. Conflicts of Interest declared by the decision maker or other Executive Member consulted

4.1 None.

5. Dispensation granted by the Standards Committee -

5.1 None.

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

6.1 None.

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

Contact: Nick Gibbins, (01962) 847544; [email protected]

1. Summary

1.1 This report reviews the budget monitoring position for 2007/08, on the basis of the first half year's budget monitoring and from reviewing the initial service budget monitoring reports submitted to Executive members.

1.2 The following decision is sought:

(a) That the action being taken by all services to contain spending within
cash limits be supported.

2. Reason

2.1 Budget monitoring reports are submitted regularly to the Cabinet to review
whether any action is required to deal with variations between planned and
actual spending.

3. Other options considered and rejected

3.1 Not applicable.

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

4.1 None.

5. Dispensation granted by the Standards Committee

5.1 None

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

6.1 None

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

Contact: Nick Gibbins, (01962) 847544; [email protected], John Rees-Evans, (01962) 84 6628; [email protected]

1. Summary

1.1 The Government introduced the LABGI scheme in 2005 for a three year trial period to provide a financial incentive for local authorities to encourage local business growth. The Government confirmed in the 2007 budget that it intended to bring forward proposals to reform the scheme and a consultation paper has been issued seeking views on the principles that should underlie a reformed scheme. This report considers the County Council's response to the consultation.

1.2 The following decision was made:

That subject to the inclusion of an introductory paragraph, the response to the Government's Consultation on reforms to the LABGI scheme was approved.

2. Reason

2.1 The County Council has the opportunity by responding to the consultation to influence the approach to the reform of the current LABGI scheme.

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 K T Thornber CBE, Chairman

Contact: Peter Robertson, (01962) 847300, e-mail

1. Summary

1.1 At the September meeting the Cabinet considered an Investigation report into the letting of IT consultancy contracts in connection with the Contact Centre Programme and requested a report on the following specific issues:

a) Matrix management

b) Procurement issues

c) Centralisation of expertise and the role of County Supplies

d) The involvement of consultants in interviews for the appointment of consultants in similar fields

1.2 This report deals with these issues and the Cabinet is recommended to adopt the proposals in the report at paragraphs 3.4, 3.9 and 3.10.

1.3 The following decisions were made:

a) That guidance is produced by the Monitoring Officer and the County Treasurer to clarify expectations where projects are matrix managed.

b) That the County Council is reviewing its corporate services and procurement issues and roles will be considered in detail as part of that review.

c) On the issue of consultants taking part in the interview of other consultants in similar fields, consultants should be available to give advice but must not take part in the interview process.

d) That a further report on proposed guidance in a) above be submitted to the Cabinet by March 2008 for approval.

2. Reason

2.1 The purpose of the report is to ensure that any lessons learned as a result of analysing the reasons for non-compliance with the County Council's Standing Orders, European Procurement Regulations and the requirements for letting public contracts are implemented in order to ensure a similar situation does not arise again.

3. Other options considered and rejected

3.1 No other relevant options.

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 - Chairman