Agenda and minutes

A webcast of the meeting can be viewed at https://bit.ly/2NKDhFz

The minutes of the meeting held on 23 March 2021 were taken as read, confirmed and signed.

There were no urgent items for consideration.

The Chairman invited members who wished to do so to declare any interest in respect of items on the agenda for the meeting. He declared a disclosable pecuniary interest in agenda item 20 (Ashby Canal Restoration– Extension to Option Agreement with Measham Land Company for Proposed Measham Development) as a local property owner and undertook to leave the meeting whilst that item was considered.

Mrs P. Posnett CC declared a personal interest which may lead to bias in agenda item 6 (Melton Mowbray Distributor Road Southern Section – Housing Infrastructure Fund Grant) and undertook to leave the meeting whilst that item was considered.

Mr R. J. Shepherd CC declared a personal interest in agenda item 12 (National Youth Agency – Transfer of Pension Fund Assets and Liabilities) as a member of the Local Pension Board.

Mr R. J. Shepherd, Mrs D. Taylor CC and Mrs C. M. Radford CC all declared a personal interest in item 15 (Urgent action taken by the Chief Executive in relation to the Leicester and Leicestershire Statement of Common Ground Relating to Housing and Employment Land Needs) as members of Charnwood Borough Council.

Mr. O. O’Shea CC declared a personal interest in agenda item 12 (National Youth Agency – Transfer of Pension Fund Assets and Liabilities) as a member of the Leicestershire Pension Fund.

The Chairman sought and obtained the agreement of Members to vary the order of business from that set out in the agenda.

The Cabinet considered a report of the Director of Corporate Resources which set out the provisional revenue and capital outturn for 2020/21.  A copy of the report, marked ‘Agenda item 4’, is filed with these minutes.

Mr. Breckon CC said that the County Council had responded well to what had been a considerably tough financial year. He added that despite the difficulties, the Council had manage to identify £9.9m which had been used to fund projects outlined in the manifesto on which the Conservative Group had been elected.

RESOLVED:

a)    That the 2020/21 provisional revenue and capital outturn be noted;

b)    That the prudential indicators for 2020/21 as shown in Appendix E to the report be noted;

c)     That the net underspend is used for the additional commitments as specified in the report.

(KEY DECISION)

REASON FOR DECISION:

To inform the Cabinet of the provisional revenue and capital outturn for 2020/21.

The Cabinet considered a report of the Director of Children and Families concerning the progress made with the delivery of the High Needs Block Development Plan and the worsening position with regard to the 2021/22 SEND capital program. A copy of the report, marked “Agenda item 5”, is filed with these minutes.

Mrs. Taylor CC said that the whilst she understood the concerns of school leaders with regards to the proposed transfer of 0.5% of Schools Block funding to the High Needs Block for 2022/23, until the Council’s High Needs Block was funded according to need, the Authority had no option but to progress the transfer. She added that the Council would continue to highlight to Government the issues the Council faced and the level of funding it required to fully resource the safeguarding and care of children in Leicestershire with SEND.

RESOLVED:

a)    That the Cabinet notes the financial position, in particular

                           i.    the forecast overspend for High Needs Block of over £9.35m at the end of the current financial year and a potential deficit of £43m by 2024/25;

                          ii.    the effect of the High Needs Block overspend on the revised Special Educational Needs and Disabilities (SEND) capital programme 2021/22, as detailed in paragraphs 37 to 41 of this report;

b)    That the Cabinet notes that Leicestershire Schools and the Schools Forum will be consulted in Autumn 2021 on a proposed transfer of 0.5% of Schools Block funding to the High Needs Block for 2022/23 to help manage the revenue position;

c)     That an application should be made to the Secretary of State to make the transfer at b) above should the Schools Forum refuse the request.

(KEY DECISION)

REASONS FOR DECISION:

The High Needs Block (HNB), part of the Dedicated Schools Grant (DSG), funds SEND provision and is currently overspent. The High Needs deficit is forecast to continue to increase up to 2024/25. The transfer of up to 0.5% from the Schools Block to the High Needs Block is included within the Department’s financial plan for SEND services, and the position will worsen by £2m should the transfer not proceed.

It is a requirement to consult Leicestershire schools and the Schools Forum for proposed transfers of up to 0.5%.  Should the Forum not approve the transfer, the Council may seek approval from the Secretary of State; such a request would need to be submitted to the Department for Education (DfE) by mid-November 2021 for a transfer within 2022/23.

Initial engagement with the Leicestershire Schools Forum has already taken place on the subject of the proposed transfer. It is intended to undertake formal consultation and thereafter submit a report to the Schools Forum as soon as all relevant information is available and necessary approvals from the Secretary of State have been sought.

RESOLVED:

That the item be withdrawn.

The Cabinet considered a report of the Director of Environment and Transport which provided an overview of the recently published National Bus Strategy and the Bus Service Improvement Plan Guidance and sought the Cabinet’s approval of the County Council’s intended approach to improving bus services in Leicestershire. A copy of the report, marked ‘Agenda item 7’, is filed with these minutes.

Mr. O’Shea CC said that the establishment of an Enhanced Partnership Scheme would enable the Authority to bid for a significant amount of Government funding to help deliver its commitment to improve bus services in Leicestershire. He encouraged people to complete the Council’s online questionnaire which sought views on how the current service could be improved.

RESOLVED:

a)    That the overview of the National Bus Strategy (NBS) and Bus Service Improvement Plan Guidance (the guidance) and the immediate implications arising, as set out in paragraphs 17 to 36 of the report, be noted;

b)    That the failure to comply with NBS and the guidance will result in the immediate loss of access to Government COVID-19 Bus Services Support Grant (CBSSG), worth in excess of £1m to date;

c)     That of the two options available for improving bus services, approval be given to proceeding on the basis of establishing an Enhanced Partnership Scheme (EPS) for the reasons set out in paragraphs 33 to 36 of the report;

d)    That subject to the approval of recommendation (c) above, the Director of Law and Governance be authorised to publish the requisite Statutory Notice stating that the Authority has chosen to progress on the basis of establishing an EPS to improve bus services in Leicestershire;

e)    That the work already commenced to develop a Bus Service Improvement Plan (BSIP) for Leicestershire, including engagement with operators and the public be noted; and

f)      That a further report be submitted to the Cabinet in the autumn, setting out proposals for an EPS and BSIP for Leicestershire, and identifying any implications for the Authority’s previously adopted Passenger Transport Policy and Strategy.

(KEY DECISION)

REASONS FOR DECISION:

To comply with the requirements of the NBS and the guidance, which requires the County Council to establish which approach it has chosen to improve bus services in Leicestershire and publish a notice by the 30 June 2021 setting out its intentions. Compliance with the NBS and the guidance will ensure the Authority is still able to access COVID-19 funding, be eligible for the further £25m NBS implementation support funding and be eligible to access a further share of the £3bn funding Government is making available to fund delivery of the NSB.

The Cabinet considered a report of the Director of Environment and Transport which sought approval for the creation of a Members Highway Fund. A copy of the report, marked ‘Agenda item 8’, is filed with these minutes.

Mr. O’Shea CC welcomed the Fund which would enable each County Councillor to allocate up to £25,000 to address highway concerns within their electoral division.

Mrs Taylor CC said that whilst £25,000 per division was a considerable amount of money, it was important expectations within communities were managed carefully.

RESOLVED:

a)    That £1.4m be allocated from the additional Highways funding identified within the Medium Term Financial Strategy 2021/22 for the creation of a Member Highway Fund;

b)    That the creation of Member Highway Fund as set out in paragraphs 13 to 26 of the report be approved;

c)     That each Member [County Councillor] be authorised to agree the use of the £25,000 allocated to them from the Member Highway Fund for spending in their electoral division subject to this being in accordance with the principles for the Fund;

d)    That it be noted that the aim is to continue the initiative in 2022/23 subject to the necessary funding being identified.

REASON FOR DECISION:

The fund and associated programme of works will allow Members to address specific community concerns within their locality which would not normally be funded via the highway maintenance budget or to bring planned works forward.

The Cabinet considered a report of the Director of Adults and Communities concerning proposals for the future delivery of community life choices services in Leicestershire. A copy of the report, marked ‘Agenda item 9’, is filed with these minutes.

RESOLVED:

a)    That a procurement exercise to establish a new community life choices (CLC) provider Framework, with a view to the new service being implemented by the end of November 2021, be agreed;

b)    That the Director of Adults and Communities be authorised to commence a consultation exercise on proposals to reduce the Council’s in-house CLC services and help existing service users to move to appropriate alternative services;

c)     That a further report be presented to the Cabinet in November 2021 on the outcome of the consultation with regard to in-house service provision.

(KEY DECISION)

REASONS FOR DECISION:

The current procurement framework was due to end on 30 September 2020.  However, as providers were concentrating on re-shaping their service offer to individuals due to lockdown and social distancing restrictions, the procurement was delayed as a supportive measure. Following appropriate consultation with the Director of Law and Governance and the Director of Corporate Resources, a 14-month extension was applied, with the current contract due to end on 30 November 2021.

The County Council’s market share within the CLC provider market has steadily reduced over the past several years which has led to a reduction in demand on the service. The Covid-19 pandemic has also meant that capacity to deliver in-house services has been dramatically reduced over the past 12 months, leading to a requirement to consider alternative provision within the provider market where there is greater capacity.

The approval of the recommendations will enable a re-focussing of in-house provider services on crisis care, short term reablement and enablement, and support for carers through the delivery of a responsive seven day a week service and ceasing the provision of long-term maintenance CLC support. This will have the aim of meeting the Department’s commitment to preventing, reducing, and delaying need through the provision of crisis support to carers to prevent carer breakdown. In doing so it will contribute to the delivery of Adults and Communities Departmental Strategy “Delivering Well-being and Opportunity in Leicestershire 2020-24”.

The Cabinet considered a report of the Director of Corporate Resources which provided an update on the performance of Leicestershire Traded Services and plans to further the County Council’s commercial approach. A copy of the report, marked ‘Agenda item 10’, is filed with these minutes.

Members noted the comments of the Scrutiny Commission, a copy of which is filed with these minutes.

Mr. Breckon CC said that despite the unprecedented trading conditions over the past 12 months, the prudent management of the Council’s Traded Services during the Covid-19 pandemic had ensured an almost cost neutral position for 2020/21 was achieved.

RESOLVED:

a)    That the comments of the Scrutiny Commission be noted;

b)    The performance against targets in the Commercial Strategy during 2020/21 be noted;

c)     The future development of the Commercial Strategy as outlined in this report and the appended Leicestershire Traded Services Review and Outlook for 2021/22 be welcomed.

REASONS FOR DECISION:

The Annual Report on the Commercial Strategy outlines the progress that has been made by the County Council (via the Leicestershire Traded Services) by introducing a more commercial approach to ensure that trading income makes an increasing and meaningful contribution to the Council’s budget.

The Cabinet considered a report of the Director of Corporate Resources regarding action taken and the performance achieved in respect of the Council’s treasury management activities in 2020/21. A copy of the report, marked ‘Agenda item 11’, is filed with these minutes.

RESOLVED:

That the report be noted.

REASON FOR DECISION:

The Authority’s full adoption of the CIPFA Code of Practice for treasury management requires an annual report on Treasury Management activity and performance to be considered by both the Cabinet and the Corporate Governance Committee before the end of September each year.

The Cabinet considered a report of the Director of Corporate Resources which sought approval for the transfer of the National Youth Agency’s pension fund assets and liabilities to Leicestershire County Council. A copy of the report, marked ‘Agenda item 12’, is filed with these minutes.

RESOLVED:

That the transfer of the National Youth Agency’s pension fund assets and liabilities to Leicestershire County Council, be approved.

REASONS FOR DECISION:

To enable the transfer of the NYA’s Pension Fund Assets and Liabilities to Leicestershire County Council, thereby enabling the NYA to have concluded all its Pension Fund responsibilities, alleviating it of any future Fund responsibility.

The County Council is facilitating a solution for the local charity to successfully exit the Leicestershire Pension Fund which will remove its future costs and limit any detrimental impact on its accounts or ability to raise funding and other finances. Based on the most recent Actuarial evaluation of the NYA’s Fund position the assets, which will be added to the County Council share of the Leicestershire Pension Fund, exceed the liabilities by £900,000.

The Cabinet considered a report of the Chief Executive which advised of the development of a draft Economic Growth Strategy prepared by the Leicester and Leicestershire Enterprise Partnership, ahead of a formal stakeholder consultation. A copy of the report, marked ‘Agenda item 13’, and a supplementary report, which was circulated separately, are filed with these minutes.

Mr. Bedford CC said it was vital that the importance of the rural economy and inward investment opportunities were recognised in the Economic Growth Strategy. He added that the Strategy should also set out the key role Town Centres had in supporting growth and the County Council’s commitment to climate change.

The Leader said that the significant impact the proposed High Speed 2 line would have on the County should also be recognised in the Strategy.

RESOLVED:

a)    The development of the Economic Growth Strategy for Leicester and Leicestershire be supported;

b)    The Cabinet notes the initial comments made by officers, as set out in paragraph 23 of the report, for consideration of the Leicester and Leicestershire Enterprise Partnership in the development of the draft Strategy;

c)     That it be noted that the draft Economic Growth Strategy will be considered by the Scrutiny Commission and Cabinet in July.

REASONS FOR DECISION:

In the absence of a Strategic Economic Plan or Local Industrial Strategy for Leicester and Leicestershire, it is crucial the subregion establishes a clear vision for the economy, not least given the impact of the pandemic on businesses and individuals and that the agreed strategy properly reflects the unique challenges and opportunities that exist in the County.

The Cabinet considered a report of the Chief Executive regarding the proposed establishment of a Freeport covering sites in Leicestershire, Nottinghamshire and Derbyshire. A copy of the report, marked ‘Agenda item 14’, is filed with these minutes.

The Leader said it was important a comprehensive outline business case for the Freeport was developed, which the Government required to be done speedily as the first step towards Freeport designation. He added that the County Council would continue to work closely with North West Leicestershire District Council on the matter.

RESOLVED:

a)    That the latest position and next steps in establishing the Freeport to be known as the East Midlands Global Gateway, be noted;

b)    That it be noted that the Council is a member of the Freeport interim Board with the Leader of the Council as the nominated representative; and

c)     That it be noted that urgent action was taken by the Chief Executive under delegated authority for the Council to assume the role of lead authority and accountable body and incur expenditure to support progression of the Freeport proposal in the form of a business case.

REASONS FOR DECISION:

To ensure that the Cabinet is aware of the latest position and next steps in establishing the Freeport. 

With respect to the urgent action taken by the Chief Executive regarding the lead authority and accountable body role, the Government’s guidance, published on 1st April 2021, on Freeports Governance requires each freeport to have a nominated local authority as its Lead Authority and Accountable Body. The Chief Executive took the decision, following consultation with the Leader of the Council and following discussions with the other County Councils hosting sites within the proposed Freeport, in order to meet tight deadlines set by Government for the submission of this information.

The Council’s Constitution (Part 3, Section D) provides that the Chief Executive may take urgent decisions between meetings subject to this being reported for information to the next available meeting.

The Cabinet considered a report of the Chief Executive which advised of urgent action taken by the Chief Executive to agree for the County Council to become a signatory to a Statement of Common Ground (SoCG) which had been prepared by the Leicester and Leicestershire authorities to accompany the emerging Charnwood Local Plan. A copy of the report, marked ‘Agenda item 15’, is filed with these minutes.

In response to questions from members concerning the requirement of the Duty to Co-operate, the Chief Executive said that if district councils failed to agree to the Statement of Common Ground, it would not be possible to demonstrate that the local authorities were collaborating on housing distribution and there was a risk that local plans would not be approved.

RESOLVED:

a)    That the content of Leicester and Leicestershire Statement of Common Ground Relating to Housing and Employment Land Needs (March 2021), appended to the report, be noted;

b)    That the urgent action taken by the Chief Executive to agree for the County Council to become a signatory to the Statement of Common Ground, as a factual statement, be noted.

REASONS FOR DECISION:

The Statement of Common Ground has been prepared jointly by the 9 local authorities in Leicester and Leicestershire and its preparation has been overseen by the Members Advisory Group. The SoCG sets out the purpose of the Charnwood Local Plan examination process, the collaboration underway to reach agreement on strategic housing distribution and other matters in line with the Government’s Duty to Co-operate.

The SoCG demonstrates a reasserted commitment to joint working on long-term strategic planning for housing, economic growth and associated strategic infrastructure across Leicester and Leicestershire.

The Cabinet considered a report of the  Director of Environment and Transport concerning urgent action taken by the Chief Executive to agree an exception to the Council’s Contract Procedure Rules which enabled the direct appointment of Enterprise Flex E Rent to supply the County Council’s Short term hired vehicles. A copy of the report, marked ‘Agenda item 16’, is filed with these minutes.

RESOLVED:

That the urgent action taken by the Chief Executive to agree an exception to the Contract Procedure Rules to enable the appointment of Enterprise Flex E Rent to supply all of the Council’s short term hired vehicles, up to a two year period from 1st April 2020, be noted.

REASON FOR DECISION:

The Council’s Constitution (Contract Procedure Rule 6 (b)) provides that exceptions to the Contract Procedure Rules may be made by the Cabinet where it is satisfied that an exception is justified on its merits and that in urgent cases the Chief Executive (after consultation with the Leader or Deputy Leader save where this is not practicable) may direct that an exception be made subject to it being reported to the Cabinet.

The circumstances and financial considerations surrounding the proposal are explained in Part B of this report. The two year arrangement with Enterprise Flex E Rent offers around a 5% saving from the previous arrangement of using multiple suppliers on the ESPO framework.

There were no items referred from Overview and Scrutiny.

The public are likely to be excluded during the following item of business in accordance with Section 100(A) of the Local Government Act 1972:-

·       Ashby Canal Restoration– Extension to Option Agreement with Measham Land Company for Proposed Measham Development

(Exempt under Paragraphs 3 and 10 of Schedule 12A.)

·       Urgent Action Taken by the Chief Executive - Procurement for a Contract for the Treatment of Post- 2020 Residual Waste.

(Exempt under Paragraphs 5 and 10 of Schedule 12A.)

·       Proposed Purchase of Property for Additional Special Educational Needs and Disability Provision.

(Exempt under Paragraphs 3 and 10 of Schedule 12A.)

RESOLVED:

That under Section 100A of the Local Government Act 1972, the public be excluded for the remaining items of business on the grounds that they involve the likely disclosure of exempt information as defined in Paragraphs 3, 5 and 10 of Part 1 of Schedule 12A of the Act and that, in all circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

(Exempt under Paragraphs 5 and 10 of Schedule 12A.)

The Cabinet considered a report of the Director of Law and Governance regarding issues that had arisen in the procurement for a contract for the treatment of post-2020 residual waste and urgent action taken by the Chief Executive on the matter, using his delegated powers. A copy of the report, marked ‘Agenda item 21’, is filed with these minutes. The report was not for publication by virtue of paragraphs 5 and 10 of Schedule 12A of the Local Government Act 1972.

RESOLVED:

a)    That the urgent action taken by the Chief Executive under delegated powers, following consultation with the Leader of the Council, as detailed in paragraph 16 of this report be noted;

b)    That it be noted that the Director of Law and Governance will ensure that the Cabinet is advised of developments on the matter.

REASONS FOR DECISION:

To advise the Cabinet of the latest position regarding the procurement.

The Council’s Constitution (Part 3, Section D) provides that the Chief Executive may take urgent action between meetings after consultation with the Leader or his nominated representative subject to the details of such action being reported for information to the next appropriate meeting of the relevant body.  The urgent action was taken by the Chief Executive on 19 May 2021.

(Exempt under Paragraphs 3 and 10 of Schedule 12A.)

The Cabinet considered a report of the Director of Children and Families which sought approval for the use of funds to develop an additional SEND (Special Educational Needs and Disabilities) facility as part of the High Needs Block Development Plan. A copy of the report, marked ‘Agenda item 22’, is filed with these minutes. The report was not for publication by virtue of paragraphs 3 and 10 of Schedule 12A of the Local Government Act 1972.

RESOLVED:

a)    That it be noted that a significant contribution from the Outturn of £2.358m will be required in order to enable the purchase at b) below;

b)    That subject to the production of a satisfactory final business case,

satisfactory surveys and due diligence, the purchase and recommissioning of the property as set out in this report to provide additional places for pupils with SEND, at a maximum cost of £6m (for the purchase, acquisition, and such works necessary to bring the site into operational use) be approved.

REASONS FOR DECISION:

A report on the Provisional Outturn is also being considered by the Cabinet at this meeting, as part of which it will be asked to approve the Outturn contribution towards the purchase of the property.

The High Needs Development Plan includes measures to reduce the overspend and subsequent deficit, and the development of additional local provision is integral to this. The acquisition of the property will enable the early development of more SEND provision within an area of significant growth and help to meet the increasing demand for specialist places.

(Exempt under Paragraphs 3 and 10 of Schedule 12A.)

(Mr. N. J.  Rushton CC, having declared a disclosable pecuniary interest in the matter, left the meeting whilst this item was considered.)

The Cabinet considered a joint report of the Director of Environment and Transport and Director of Corporate Resources which sought approval for the County Council to enter into an agreement with Measham Land Company to extend the option for the County Council to grant an easement providing a right of access into their development land across County Council owned land. A copy of the report, marked ‘Agenda item 20’, is filed with these minutes. The report was not for publication by virtue of paragraphs 3 and 10 of Schedule 12A of the Local Government Act 1972.

RESOLVED:

a)    That the Director of Corporate Resources in consultation with the Director of Environment and Transport and the Director of Law and Governance be authorised to enter into the extension agreement with Measham Land Company to extend the option granted by the original Option Agreement for a further 10 years, ending 31 July 2031;

b)    That it be noted that the Director of Environment and Transport in consultation with the Director of Law and Governance and the Director of Corporate Resources may resume negotiations and enter into a revised Option Agreement with Measham Land Company, based on the principles as set out in the report and in line with existing delegations and approvals given by the Cabinet in July and November 2015.

REASON FOR DECISION:

The original Option Agreement of 31 July 2000 granted Ideal Country Homes an option to enter into an easement providing a right of access into a development site lying south-east of the A42 Trunk Road, Measham (the Development Site) subject to Ideal Country Homes obtaining planning permission for development of the Development Site. The freehold ownership of the Development Site is now vested in Measham Land Company, a private housing developer, (a sister company of Ideal Country Homes), and Measham Land Company has obtained planning permission to build up to 450 residential dwellings on the Development Site  which incorporates 1.1km of canal into the proposed Measham Wharf. The extension agreement assigns the benefit of the original Option Agreement to Measham Land Company.

The County Council, which owns the land which incorporates the access to the Development Site, has granted an option for an easement in order for the developer to access the site via an Option Agreement which expires on 31 July 2021. Entering into an extension to the Option Agreement makes commercial sense to the County Council because of the significant value of the easement providing access to the site in the event that Measham Land Company develops the land and should protect the County Council’s interests in the event of any such development. It will also assist the County Council should it wish to claim compensation from HS2, if the development of the canal in this area should be affected by the construction of HS2 in future.

It is expected that the new Option Agreement will provide a better outcome for the County Council, relative to the existing agreement, in terms of value for money. The new agreement would result in Measham Land Company being responsible for the construction of a length of canal of a higher value (in terms of capital cost) than the monetary value of the existing Option Agreement. It also offers additional benefits such as ongoing management of the proposed section of canal at no cost to the Authority. In July 2015 the Cabinet authorised officers to negotiate a new Option Agreement and for the Director of Environment and Transport  ...  view the full minutes text for item 22.