At a meeting of the CABINET of HAMPSHIRE COUNTY COUNCIL held at THE CASTLE, WINCHESTER on 17 December 2007.

Present:

Councillors:

p T.K. Thornber, CBE (Chairman)

Also present with the agreement of the Chairman: Councillor M.F. Cartwright; K.G. Chapman; A.P. Collett; B.D. Dash; Dr. R.J. Ellis (part of meeting) and Mrs C.A. Leversha.

358. APOLOGIES FOR ABSENCE

There were no apologies for absence.

359. 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.

360. MINUTES

The minutes of the Cabinet meetings held on 16th and 26th November 2007 were confirmed as a correct record.

Arising thereon:-

(i) Minute 353: Post Office changes programme - it was noted that a response to the County Council's Freedom of Information request submitted to Post Office Ltd in regard to their outreach proposals was still awaited.


(ii) Minute 354: An overview of child well-being in rich countries and the implications for Hampshire - a seminar for all Members of the County Council to engage in a wider discussion is being organised. The date will be confirmed shortly.

361. CHAIRMAN'S COMMUNICATIONS

There were no communications.

362. PROVISIONAL FORMULA GRANT SETTLEMENT AND CONFIRMATION OF BUDGET GUIDELINES 2008/09

With the concurrence of the Chairman under Section 100B (4)(b) of the Local Government Act 1972, this matter has been included on the agenda to inform the Cabinet about the announcement of the provisional grant settlement on 6 December 2007 which did not allow for a full report in time for the publication deadlines for the Cabinet meeting.

The Cabinet considered the report of the County Treasurer (Item 5 in the Minute book) outlining the provisional formula grant settlement announced by the Government on 6 December 2007. Due to the lateness of the announcement, the County Treasurer supported the report with a presentation summarising the settlement proposals and the implications for Hampshire, including new burdens which will be imposed and demographic pressures. The County Treasurer reported on the changes to the way grants are organised into a new `hierarchy' of specific grant, area based grant and formula grant moving from ring fenced funding through to general Government grant support. He drew attention to changes to the financing of Government capital programme allocations for the local transport plan and schools which increases the amount of borrowing required but which is not supported by Government revenue grant and which does not work in the County Council's favour.

The Cabinet expressed very strong concerns on the issues raised in the County Treasurer's presentation which will see floor increases of only 2.0%, 1.75% and 1.5% for the three-year period starting 2008/09; a level of grant which is wholly inadequate to address the many challenges the County Council faces particularly in regard to social care services and environmental matters such as waste management, road maintenance and flooding. The Cabinet were of the view that the residents of Hampshire continue to be ill-served by the Government in regard to the formula grant it receives which is not sustainable and will therefore wish to meet with Ministers during the consultation period in order to make face-to-face representations on the settlement proposals. The Cabinet also emphasised the importance of updated information on disposable income in Hampshire being taken into account and sharing the County Treasurer's presentation with pressure groups such as Is It Fair to ensure they fully understand the difficulties the County Council continues to face.

In conclusion of a full discussion the Cabinet adopted the recommendations set out in the report. A copy of the decision sheet is attached to these minutes as Appendix 1.

363. CORPORATE BUSINESS PLAN PROGRESS - 2007/08 HALF YEAR CORPORATE PERFORMANCE REPORT

The Cabinet considered the report of the Chief Executive (Item 6 in the Minute book) reviewing the corporate performance of the organisation as at 30 September 2007 on the basis of the first half year's performance monitoring. The Chief Executive reported that overall progress against the Corporate Strategy/Corporate Business Plan priorities is good with over half of the activities on track with a low risk of non-achievement, whilst taking into account that at this half-year position some data is not available. In discussing the areas of risk, the Cabinet noted that these were being carefully monitored and remedial action had already been taken in some cases.

In adopting the recommendations set out in the report, the Cabinet recognised the focus the Corporate Business Plan places on the key activities for the organisation and engages staff in the improvement plan process. A further resolution was agreed in regard to the continuance of the 101 non-emergency telephone number service following withdrawal of central government funding from February 2008. A copy of the substantive decision sheet is attached to these minutes as Appendix 2.

364. ADULT SERVICES PERFORMANCE 2007

The Cabinet considered the report of the Director of Adult Services (Item 7 in the Minute book) outlining performance improvements achieved resulting in the County Council being awarded the highest rating of 3 stars for its adult services by the Council for Social Care Inspection (CSCI), placing it in the top quartile of the 150 councils with adult services responsibilities. In expanding on the report, the Director of Adult Services highlighted the strong leadership of elected Members and the commitment of the Corporate Management Team and County Council staff which has led to the 3-star rating.

In welcoming this excellent achievement, the Cabinet was also pleased to note that CSCI has asked the County Council to share its expertise with other local authorities who are currently facing the issues that the County Council has already tackled.

The Cabinet adopted the recommendations set out in the report together with an additional resolution to set up a Commission on personalisation of services for people requiring support and care. It is intended that the Commission will operate along similar lines to that of the recent Climate Change Commission and a report will be submitted to the Cabinet in January 2008. A copy of the substantive decision sheet is attached to these minutes as Appendix 3.

365. 2007 ANNUAL PERFORMANCE ASSESSMENT OF SERVICES FOR CHILDREN AND YOUNG PEOPLE, HAMPSHIRE COUNTY COUNCIL AND JOINT AREA REVIEW ACTION PLAN

The Cabinet considered the report of the Director of Children's Services (Item 8 in the Minute book) setting out the Annual Performance Assessment (APA) letter which is Ofsted's Annual Report on the performance for all children's services delivered by the local authority, together with the Joint Area Review (JAR) Action Plan following an inspection earlier in the year which focused primarily on services delivered by the local authority and its partners for the most vulnerable children. The Deputy Director of Children's Services expanded on the key elements of the report and answered Members detailed questions.

During the course of a full discussion, the Cabinet welcomed the achievement of a consistent score of 3 "good" for both assessments and considered in detail the improvement/action plan for the development areas identified during the assessments [set out at Appendix 2 to the report] and the setting of departmental priorities which will also link into the Local Area Agreement.

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

366. SOUTH COAST STREET LIGHTING PRIVATE FINANCE
INITIATIVE

The Cabinet considered the report of the Director of Environment (Item 9 in the Minute book) addressing a request from the Department for Transport (DfT) for a full and unambiguous commitment to the affordability ramifications of the proposed Street Lighting Private Finance Initiative (PFI) before it will give full funding approval - an announcement is expected on 18 December 2007. The Director of Environment expanded on the key elements of the report and answered Members detailed questions.

During the course of a full discussion, the Cabinet raised a number of concerns in regard to the risks associated with the project whilst recognising the need to address the backlog of maintenance and to provide new investment that will improve lighting standards and make a significant contribution to reducing road accidents, crime and fear of crime. They would be concerned if any additional costs for the project were to result in reduced levels of road and pavement maintenance.

The Cabinet adopted the recommendations set out in the report with the caveat that the funding for the project must not impact on road and pavement maintenance. A copy of the decision sheet is attached to these minutes as Appendix 5.

Finally the Cabinet extended their thanks to Peter Robertson, who was retiring as the Chief Executive of the County Council, for his contribution to the welfare of Hampshire and wished him a very happy retirement.

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

With the concurrence of the Chairman under Section 100B (4)(b) of the Local Government Act 1972, this matter has been included on the agenda to inform the Cabinet about the announcement of the provisional grant settlement on 6 December 2007 which did not allow for a full report in time for the publication deadlines for the Cabinet meeting.

1 Summary

1.1 The Government announced the provisional grant settlement figures on 6 December 2007. As expected the County Council remains at the grant floor, and will receive cash increases of 2%, 1.75% and 1.5% for 2008/09, 2009/10 and 2010/11 respectively. This is slightly better than assumed in setting the budget guidelines, but as the Council only receives about 20% of its funding from grant support this does not have a substantial impact.

1.2 The extra grant will provide some further flexibility in setting the budget in February 2008, either to increase spending or reduce the council tax increase. However the position on supported borrowing has got worse as the amount of capital grant has been reduced for both the local transport and the school capital programmes. If the Council wishes to take up all the allocated borrowing approval or maintain its planned capital programme, which already assumes the non take up of supported borrowing of £31m over the next three years, it will need to increase its borrowing further. Higher capital financing costs will erode some of the grant gain, or require new savings elsewhere. To continue the current policy of limiting the increase in the capital financing requirement to 2.5% per annum will require the non take up of approximately a further £10m of supported borrowing in 2008/09 increasing to £14m over a three year period.

1.3 Decisions on the level of new borrowing can be deferred until February, and it is proposed that programmes be formulated by Executive Members on the basis of the current policy on supported borrowing highlighting the implications for the capital programme and the achievement of corporate strategy objectives of the non take up of supported borrowing of up to £45m over the next three years.

1.4 Overall the settlement is much as expected. It is anticipated that service budgets can be contained within the budget guidelines set and there is no need at this stage to change the budget guidelines agreed at the last meeting.

1.5 Cabinet will consider the outcome of the Executive Member budget reports and scrutiny arrangements at the Cabinet meeting on 8 February 2008 when final decisions on budgets and council tax can be recommended to Council.

1.6 Because of the lateness of the announcement the County Treasurer will make a presentation on the grant settlement at this meeting. The Cabinet may wish to make written representations on the provisional settlement to Communities and Local Government (CLG) by the deadline of 8 January 2008, based on the issues raised during the presentation. Local authorities which in addition wish to meet with Ministers during the consultation period in order to make face-to-face representations on the settlement proposals must arrange to do so before 28 December 2007.

1.7 The following decisions are sought:

i) to continue with budget preparation within the provisional budget and locally resourced capital programme guidelines for 2008/09 to 2010/11 agreed at the last meeting, as the basis for Executive Members to prepare draft revenue budgets and locally resourced capital programmes for consideration by the Cabinet on 8 February 2008.

ii) to request Executive Members to prepare draft capital programmes for government supported capital programmes based on capital grant approvals and the take up of supported borrowing consistent with limiting the increase in the capital financing requirement to 2.5%, and to highlight the implications of not taking up supported borrowing in full.

iii) to protest to Government about the increased borrowing costs of implementing the local transport and schools capital programmes following the further reduction in capital grant to support the Government's allocations.

iv) to determine the final flexibility available from the marginal increase in grant, over that assumed in setting guidelines, to meet additional borrowing costs, or other spending priorities at the February Cabinet meeting.

v) to authorise the County Treasurer, in consultation with the Leader to make written representations to CLG on the provisional settlement, based on the presentation to the meeting and any other issues the Cabinet wish to raise.

vi) to determine whether to seek a meeting with Ministers to make further representations on behalf of the County Council.

vii) to authorise the County Treasurer, in consultation with the Leader, to determine the form of any further budget consultation for 2008/09, possibly through the Citizens Panel.

2 Reason

2.1 The Cabinet needs to respond to the consultation as it sets the government grant allocations for the next three years. Good progress is already being made in preparing the budgets within the guidelines set. It should be possible to contain pressures and costs within the guidelines by means of the annual efficiency savings and redirection of priorities within cash limits, without reductions in services. This continues the annual projected rises in council tax at about 5%.

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 Not applicable.

Approved by: Date:
Councillor T K Thornber CBE

Contacts: Gary Smith, ext 7402 email: [email protected]

1. Summary

1.1 This report reviews the corporate performance of the organisation as at 30 September 2007, on the basis of the first half year's performance monitoring and from reviewing departmental performance monitoring reports.

1.2 The following decisions were made:

(a) That Cabinet agree that the 2007/08 half year corporate performance report and results will be used to inform the continuing development of the Corporate Business Plan.

(b) That strong progress made during the half year and the work by staff to achieve improved results is recognised and that any areas of risk are noted or action taken, as appropriate.

(c) That Cabinet support the development of options, in conjunction with
the County Council's partners, to secure the continuance of the 101
non-emergency telephone number service following the withdrawal
of Government funding from February 2008.

2. Reason

2.1. Executive Members and/or Cabinet continually receive more detailed reports on the individual performance areas mentioned in this report. For example, the results summarised here are consistent with the statements made in this year's Corporate Assessment self-assessment. The value of this report is to bring together for consideration and discussion an overview `snapshot' of the work of the organisation. It should be noted that the report provides a cross-cutting view of corporate performance and is not intended to reflect everything that the Council does.

3. Other Options Considered and Rejected - Not applicable.

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

Contact: Rea Mattocks, Ext (01962) 847200, email: [email protected]

1. Summary:

The following decisions were made:

(a) That Cabinet note the performance improvements in its Adult Services Department and recognise that this has been achieved through the leadership of elected members, and the commitment and dedication of Chief officers and staff within Hampshire County Council.

(b) That Cabinet agreed to set up a Commission on personalisation of services for people requiring support and care, focussing on all adult social care groups and including young people with physical and learning disabilities in transition and care leavers. The outcomes of the Commission will inform both the modernisation of Adult Services in Hampshire and the Green Paper on the future of Adult Social Care. The Commission will operate along similar lines to that of the recent Climate Change Commission and a report will be submitted to Cabinet in January 2008.

2. Reason

2.1 To take to public committee the CSCI performance rating for Adult Services within 2 months of publication. The formal publication date is 29^th November 2007.

3. Other Options considered and rejected:

3.1 None

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 TK Thornber, CBE - Chairman

Contact: John Coughlan; (01962 846516); [email protected]

1. Summary

1.1 The following decision is sought:

That Cabinet note the APA letter, the JAR Action Plan, and the forthcoming

setting of priorities on behalf of the department and in connection with the Local Area Agreement.

2. Reason

2.1 This decision supports the following Hampshire County Council priority:

"Making Hampshire safer and more secure for all"
"Maximising well-being"
"Enhancing our quality of place"

2.2 The decision supports the five core outcomes of the Children Act:

Being healthy;
Staying safe;
Enjoying and achieving;
Making a positive contribution;
Economic well-being

3. Other Options considered and rejected - Not relevant.

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, C.B.E. - Chairman

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

1. Summary

1.1 The following decisions are sought:

(i) That the Cabinet approves the procurement budget of £1.1 million.

(ii) That the Cabinet approves the full commitment of existing budgets of £5.57 million per annum at 2007/08 prices for the duration of the contract term.

(iii) That the Cabinet approves the funding of the base case maintenance affordability gap of up to £600,000 per annum at 2007/08 prices for the duration of the project term and also notes a possible increased energy consumption of up to 15 million kilowatt hours amounting to approximately £1.2 million per annum at current prices, which would need to be contained within the overall operational budgets of the Environment Department. The base case assumes that the project will be off-Balance Sheet under Financial Reporting Standard 5.

(iv) That the Cabinet notes the intention of the Department of Communities and Local Government to introduce Regulations to ensure that in the event that Private Finance Initiative schemes become on-Balance Sheet transactions that it has no effect on the charge to the revenue account.

2. Reason

2.1 Securing Government funding for the street lighting project will address a backlog of maintenance and provide new investment that will improve lighting standards and make a significant contribution to reducing road accidents, crime and fear of crime.

3. Other Options Considered and Rejected

3.1 Not to address a request from the Department for Transport for a full and unambiguous commitment to the affordability ramifications of the proposed street lighting private finance initiative.

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

1518Decn/TW