Executive Board Meeting
Friday 21st March 2014, 10.00am Galileo Room, Pera Innovation Park, Melton Mowbray
AGENDA
1. Apologies
2. Declarations of Interest
3. Minutes of the Executive Board Meeting 6th December 2013 1
Items for decision:
4. EMC Budget 2014/15 11 5. EMC Business Plan 2014/15 20 6. Management Group Terms of Reference in relation to conducts and standards 35 7. Regional Review - The Impact and Response to Migration Patterns in the East Midlands 45 8. Regional Review - Health in the East Midlands 63
Items for discussion:
9. Boosting Economic Growth and Working with LEPs 67
Items for information:
10. Regional Employers’ Board 85 11. East Midlands Improvement & Efficiency Partnership Board – Sector led Improvement and Transformation 91 12. Report of Management Group 94
13. Any Other Business Item 3
EAST MIDLANDS COUNCILS EXECUTIVE BOARD MINUTES OF THE MEETING HELD ON 6TH DECEMBER 2013 AT EAST MIDLANDS COUNCILS OFFICES
Present: Cllr Jon Collins (Chair) – Nottingham City Council Cllr Paul Bayliss – Derby City Council Cllr Tom Beattie – Corby Borough Council Cllr Roger Begy OBE – Rutland County Council Cllr Robin Brown – Northamptonshire County Council Mayor Tony Egginton – EMC Independent Group Cllr Chris Millar – Daventry District Council Cllr Linda Neal – South Kesteven District Council Cllr Robert Parker- EMC Labour Group Cllr Lewis Rose OBE – Derbyshire Dales District Council Cllr Nick Rushton – Leicestershire CC Cllr David Slater – Charnwood Borough Council Steve Atkinson – Chief Executive, Hinckley & Bosworth Borough Council Judith Spence – Head of Corporate Finance, Leicestershire CC (for item 4b) Jane Todd – Independent Advisor (for item 4C) Allen Graham – Chief Executive, Rushcliffe Borough Council (for item 5) Stuart Young – East Midlands Councils Andrew Pritchard – East Midlands Councils Sam Maher – East Midlands Councils Sarah Short – East Midlands Councils Lisa Hopkins – East Midlands Councils (Minutes)
Apologies: Cllr Martin Hill OBE (Vice-Chair) – Lincolnshire County Council Cllr Neil Clarke (Vice Chair) – Rushcliffe Borough Council Cllr Jim Harker OBE - Northamptonshire County Council Cllr Alan Rhodes – Nottinghamshire County Council Cllr Paul Kenny – Boston Borough Council Cllr Anne Western – Derbyshire County Council Ian Curryer – Chief Executive, Nottingham City Council John Sinnott – Chief Executive, Leicestershire County Council Cllr Fiona Martin MBE – EMC Liberal Democrat Group Cllr Rory Palmer – Leicester City Council
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ACTION 1. Apologies and Introductions
1.1 Apologies were received as noted above.
2. Declarations of Interest
2.1 Cllr Jon Collins declared an interest in item 4(d).
3. Minutes of Executive Board Meeting held on 27th September 2013
3.1 The minutes were agreed as a true and accurate record.
4. Reports of EMC Management Group
4a. Update on EMC Performance, Audit Control and Governance
4a.1 Stuart Young, Executive Director East Midlands Councils, introduced this paper.
4a.2 He informed Members that EMC general reserves were £546,000 as at 1st April 2013. Performance against Business Plan is currently on track.
4a.3 In relation to the audit requirements for the Certification Office this is needed to meet statutory requirements.
4a.4 Resolution:
Members of the Executive Board: . Noted EMC Management Accounts 1st April 2013 – 31st October 2013. . Noted performance against the Business Plan 2013/14. . Noted the statutory audit requirements of Certification Office.
4b. Draft Statement of Accounts (Certification Office) presented by Leicestershire County Council 4b.1 Judith Spence, Head of Corporate Finance Leicestershire County Council, introduced this report and informed Members that this is a legal requirement as required by the Certification Office.
4b.2 External Auditors have been appointed to provide EMC’s Statement of Accounts. These accounts do not reflect the EMC Management Accounts that are compiled on a slightly different basis.
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ACTION
4b.3 Judith Spence informed Members that the pension liabilities included in the Financial Statements of Accounts are only an estimate and that more accurate information will be provided by the actuarial assessment. The cost for the production of these accounts is estimated to be between £20,000 and £30,000. This includes auditor’s fees and officer’s time.
4b.4 Cllr Jon Collins tabled a letter from Brian Roberts, Director of Corporate Resources Leicestershire County Council.
4b.5 Questions/Comments
4b.6 Cllr Nick Rushton enquired whether tender documents have been sent out for the accountable body role. Stuart Young confirmed that these documents have been sent out and the deadline for receipt is noon on Friday 13th December 2013.
4b.7 Cllr Robert Parker queried the cost of the audited accounts and stressed the importance of negotiating costs and keeping these to a minimum. Judith Spence confirmed this was the amount expected.
4b.8 Cllr Jon Collins stated the importance of organisational sustainability once the review has been completed and this will need to be looked at in the New Year.
4b.9 Resolution:
Members of the Executive Board: . Approved the draft 2012/13 statement of accounts that are subject to external audit. . Approved the Treasurer in consultation with the Chairman and Executive Director to make any amendments following the audit.
4c. The Review of East Midlands Councils
4c.1 Cllr Jon Collins introduced this report and informed Members of the need to finalise proposals prior to the full East Midlands Councils meeting on 7th February 2014.
4c.2 Jane Todd, independent advisor, presented the report’s conclusions and recommendations.
4c.3 Questions/Comments
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ACTION 4c.4 Cllr Lewis Rose commented that EMC needs to better ‘sell its offer’ to the wider membership.
4c.5 Cllr Chris Millar stated that Members need to understand the ‘added value’. The policy brief which now goes to all councillors helps to raise awareness of EMC.
4c.6 Cllr Jon Collins stated that moving forward there is a need to look at the following:
. EMC website needs to be more user friendly. . Implementation plan on how to take forward the work programme. . More seminars and member development sessions to be offered. . Member-led – responding to the priorities of its membership. . Involving its membership in the policy review work. . More member focused organisation.
4c.7 The conclusions and recommendations of the EMC review will be presented at the full EMC meeting on 7th February 2014. The 2014-15 Business Plan should provide the basis of an ‘Implementation Plan’ to be considered and agreed by Executive Board at its meeting in March 2014. SY
4c.8 Cllr Jon Collins tabled a paper from Leicestershire County Council in relation to the pension liabilities. Leicestershire County Council have written to treasurers of 9Cs authorities suggesting the establishment of a pension ‘sub-fund’ within the wider Leicestershire Pension Fund and that pension liabilities would remain with Leicestershire County Council but this liability if jointly covered by other upper-tier councils.
4c.9 Cllr Jon Collins requested that Leicestershire County Council confirm arrangements and asked that liaison is directly through to Leicestershire County Council.
4c.10 Resolution:
Members of the Executive Board: . Considered the information contained within the report. . Considered, discussed and endorsed the report as completed by the independent advisor. . Agreed on the implementation of a new approach, in accordance with the approach outlined in the report and informed by the independent advisor, for communication with the wider membership of EMC.
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ACTION 4d. Accountable Body Arrangements for EMC
4d.1 Cllr Jon Collins left the meeting for this item.
4d.2 Stuart Young, Executive Director East Midlands Councils, introduced this paper and provided background information to members in respect of the accountable body arrangements.
4d.3 There is a need to secure alternative accountable body arrangements from 1st April 2014. There have been two expressions of interest received – Nottingham City Council and Boston Borough Council. To ensure accountability and transparency, a tender process is being run and the deadline for receipt of these tenders is noon on Friday 13th December 2013.
4d.4 Resolution
Members of the Executive Board: . Noted the expressions of interest submitted by Boston Borough Council and Nottingham City Council in providing future accountable body arrangements for EMC. . Noted the provision of information to both councils that have submitted an expression of interest and the corresponding request that they provide EMC with information that will support our consideration of proposed arrangements. . Noted progress on financial, legal and employment matters in anticipation of transferring accountable body arrangements to a new authority. . Gave delegated authority to the Management Group to act on its behalf in order to expedite this matter.
5. Welfare Reform
5.1 Allen Graham, Chief Executive Rushcliffe Borough Council, updated Members on this issue and informed members of the key headlines:
. There is evidence for a rise in social housing rent arrears and a decline in council tax collection rates – but measures such as the ‘benefit cap’ have had little impact on the East Midlands to date; . The impact of the changes is not even – so far the larger urban areas and coastal towns have faced the most challenges; . Councils need greater local freedom and flexibility to address the under-
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ACTION supply of affordable housing – particularly for smaller properties and one bedroom accommodation; . Councils need greater freedom and flexibility to support people into employment and deliver strong local economies; . Government must full acknowledge the financial impact on councils of administering the changes – and the impact this has on councils to plan strategically; . Local knowledge is required to properly support people with particular needs – both with claiming universal credit and through managing local impacts of the changes using the ‘community budgets’ approach; . Council run Local Welfare Assistance Schemes have been a success – but there is significant doubt about their future now that the Department of Work & Pensions has decided to remove funding in 2015/16.
5.2 Allen Graham informed members that the single fraud investigatory service is being transferred to a national service and the Department for Work and Pensions will take responsibility for this in March 2014. A formal announcement is expected shortly but this will have implications on staffing with fraud officers being transferred to this new service.
5.3 In relation to the localisation of the work programme, this is more successful at getting people back into work at a local level rather than a national one.
5.4 Most authorities are in the process of confirming/resetting schemes for council tax support.
5.5 It was agreed that this document could provide the basis for good practice information for all authorities. This is also to include setting up of hardship schemes, articulate experience of councils in this and lobbying points for issues to raise with MPs.
5.6 Cllr Paul Bayliss stated that this has a massive impact on councils and local communities and supports any work undertaken.
5.7 A further report and updated data to be presented to the full meeting of EMC on 7th February 2014. Allen Graham stated that while the full year data will not all be available, Members will be able to see clear trends emerging. AG/SS
5.9 Resolution
Members of the Executive Board:
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ACTION . Noted the developments on welfare reform as highlighted in the report. . Considered and agreed the key issues for welfare reform and how it impacts on communities and local councils in the East Midlands. . Endorsed the approach for supporting wider councillor engagements in this issue. . Considered further lobbying via the LGA in particular to call for the timetable for Universal Credit to be shared; explore the potential for the pooling of Discretionary Hardship payments if authorities wish to and the issues of the Emergency fund payments.
6. An Update on HS2
6.1 Andrew Pritchard, Director of Policy and Infrastructure East Midlands Councils, introduced this report and updated Members on recent events held in relation to HS2.
6.2 He reported on the connectivity, especially going northwards, is a key issue and highlighted the results of a technical study which confirms there are opportunities to directly connect HS2 to MML to address this concern
6.3 It is for Parliament to make the final decision on HS2 in the national interest. Assuming that current HS2 proposition progresses, a draft regional response has been prepared to the current consultation to act as out a collective negotiating position for councils.
Questions/Comments
6.4 Cllr Paul Bayliss confirmed that he does not support Toton as the preferred station option. However, no matter where the station is located, connectivity is the main issue. Heavy rail link is the key. Network rail needs to sign up to undertake any connectivity issues that need to be addressed.
6.5 Cllr Nick Rushton stated that he also is opposed to Toton and line of route, but would support the EMC response as drafted.
6.6 Cllr Robert Parker stated that the two main factors are the cost and the impact on the environment - which would need to be properly addressed by Government
6.7 Resolution
Members of the Executive Board:
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ACTION . Agreed the draft as a regional response for submission to the consultation on Phase 2 of HS2. . Noted the rest of the report.
7. European Funding in the East Midlands (2014-2020)
7.1 Stuart Young, Executive Director East Midlands Councils, introduced this report and informed members this links to the wider collective decision of councils and EU structural funds programme.
7.2 Andrew Pritchard informed members that the East Midlands is likely to lose around £6million from the current programme due to under performance. For the future programme, partners must learn from current experience and take a more strategic and collaborative approach to project development and delivery.
7.3 Andrew highlighted the final draft of the Meeting Need/Realising Opportunity document, which is a key out-put of EMCs PA3 Project.
7.4 The project will formally complete in June 2014. Andrew Pritchard is working with partners on the next steps for the remainder of this project, starting with a ‘Fast Track to Growth’ event aimed at the rail industry on 26th February 2014 in Derby.
7.5 Cllr Jon Collins asked that the ‘Meeting Need, Realising Opportunity’ document is presented at the meeting with MPs on 10th December 2013.
7.6 Cllr Jon Collins expressed disappointment at the potential loss of the £6million funding as has been persistently highlighting the programme’s poor performance to DCLG over the past two years.
Resolution
7.7 Members of the Executive Board: . Noted the emerging priorities and management arrangements for the use of EU Structural Funds for the period 2014-2020. . Endorsed the socio-economic framework contained in the report. . Endorsed proposals for the next stage of EMC’s Technical Assistance Project set out in the report.
8. Board Reports
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ACTION 8a. Report of the Regional Employers’ Board
8a.1 Cllr Tom Beattie, Chair Regional Employers’ Board introduced this report. He drew members attention to the national employment developments.
8a.2 The joint trade unions’ pay claim for 2014 has been submitted and EMC will be hosting an event that afternoon to enable the LGA to consult with authorities in the region on the employers’ approach to negotiations. The Regional Joint Council has agreed to work jointly in relation to the impact on jobs and services.
8a.3 Cllr Beattie informed members that we are still awaiting further information from CLG on their proposals to remove the statutory requirement for a Designated Independent Person to be appointed to progress matters concerning the conduct or capability of Chief Executives, Monitoring Officers and s151 Officers.
8a.4 Resolution
Members of the Executive Board: . Noted the report. . Provided comments and feedback on the employment issues identified within the report to inform EMC’s input to future Employers’ Board meetings at Regional, National and European level.
8b. Report of East Midlands Strategic Migration Partnership Board
8b.1 Sarah Short, HR & Development Manager East Midlands Councils, introduced this report and drew Members attention to the following:
. Toolkit of resources to be produced for member councils to help authorities respond to any queries in relation to migration. . Impact of Migration event to be held in February 2014. . A sub-group of the Strategic Migration Partnership Board to be established to look at exploitation, anti-slavery and anti-trafficking.
8b.2 Resolution
. Members of the Executive Board noted the report.
8c. Report of Improvement and Transformation Board
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ACTION 8c.1 Cllr Roger Begy, Chair of the Improvement and Transformation Board, introduced this report. This issues discussed at the recent Board meeting included the following:
. Member Development . Networks . Performance Management . Children’s Lead Members . Adult Lead Members
8c.2 Proposals will be brought back to the next Executive Board meeting in relation to Health and links into this.
8c.3 Resolution
. Members noted the information contained within the report.
9. Any Other Business (previously notified to the Chair)
9.1 None.
10. Date of Next Meeting - Friday 21st March 2014 10.00am, East Midlands Councils Offices, Phoenix House, Melton Mowbray.
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Executive Board 21st March 2014
Report on EMC Budget 2014/15, Reserves and Pension Liabilities
Summary
The draft budget for 2014/15 is recommended to the Executive Board by Management Group.
It reflects discussions and agreement of Management Group that have sought to deliver a balanced budget, with any use of reserves at the discretion of members against an agreed set of priorities.
Recommendation
Members of the Management Group are invited to: . Endorse the 2014/15 budget, as recommended by the Management Group (subject to any amendment). . Endorse the proposals (as outlined in section 6 of this report) to reduce the pension deficit that will remain with the Leicestershire Pension Fund. . Note the EMC reserves statement.
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Budget Summary 2014/15
1. Key Points
1.1 Management Group directed that a budget is developed that makes significant progress towards a balanced budget for 2014/15. The use of any reserves (including former RIEP monies) would be at the discretion of Members on the basis of agreed options for the delivery of specific roles and/or services.
1.2 The proposed revenue budget for 2014-15 is attached as Appendix 4(a) and shows all income and expenditure associated with the running of East Midlands Councils (EMC).
1.3 A budget analysis is shown as Appendix 4(b) that identifies costs and income across a range of activities as discussed by Management Group; core services, contracts and grants and traded income (comprising consultancy, fee-paying events, and fee-paying services).
1.4 The allocation of resources and budget monitoring against the agreed 4 pillars of the business plan will be reported through Management Group on a quarterly basis.
1.5 The budget does not provide for any discretionary project fund that would support EMC to respond to policy/project priorities unless offset by additional income, nor does it include any call on reserves.
1.6 It is proposed that at the discretion of Management Group reserves may be called upon to support projects which are of significant relevance to the delivery of the business plan.
2. Expenditure a) Staff Costs
2.1 The principal expenditure at EMC is on staff; while the proposed 2014/15 budget shows a reduction in salary costs to the organisation of £130,000; some of the savings have been offset by the provision of a 1% pay award.
2.2 A part year effect of savings has been built in to allow for any consultation process for any proposed reduction in the staffing establishment of EMC.
12 Item 4 b) Members Costs
2.3 In line with EMC’s member allowance scheme this budget includes a 1% pay award employer’s superannuation contributions and NI contributions which are payable on members’ allowances. c) Premises Costs
2.4 Following the agreement to move to Pera the significant reduction in accommodation costs of £30,000 has been included within the 2014/15 budget.
2.5 Other costs associated with the office relocation will need to be met, e.g. removal and associated IT costs. It is proposed that these costs, likely to be around £12,000 are met from reserves.
3. Income
3.1 This comprises membership subscriptions (£258,000); contracts & grants (£342,000); and consultancy/traded income (£331,000). For 2014/15, the income figure is an estimate. While over 66% of income has already been secured (primarily membership subscriptions and contacts & grants), Members are advised that a significant element of 2014/15 income is not confirmed and, similar to previous years, relies upon income targets being met. EMC has a proven track record of achieving these targets.
3.2 With some consideration to exceeding income targets there is a need to have flexibility around the staffing structure to be able to respond to any increase in demand.
3.3 The 9Cs money is the second and final part of money already transferred from the previous 9Cs secretariat.
3.4 EMC officers will work with colleagues at our new accountable body to explore a more commercial approach to our income generation to ensure that our income target is met, with a fundamental review of fee paying events and services focusing upon those that add greatest value together with an analysis of opportunities to widen the market.
4. Implications
4.1 It is estimated that this budget, unless offset by a significant increase in income, would require a reduction in the staffing establishment. However, the potential to increase income will be explored, particularly in relation to a focus on higher income generating projects and/or an increase in charges
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(assuming stable demand), securing additional grants/contracts, and looking for potential new areas of work.
4.2 If additional income cannot be secured then it is anticipated that there will be an impact on the scale and breadth of the EMC offer. In particular, the cessation of all officer-based networks which are non-fee earning; a focus on a reduced but more targeted number of Member networks; a reduction in policy expertise/capacity; and a reduction in strategic HR expertise/capacity.
5. Key risks
5.1 There is a risk that the challenging balanced bottom line for 2014/15 may not be achieved due to stretching income targets and planned savings not being achieved within the targeted timescale. The impact of this could be a reduction in reserves, although work such as the review of income and expenditure will mitigate against this risk, with progress against budget and business plan being reported quarterly to Management Group
5.2 A reduction in some work areas, e.g. networks, that results from a more focused offer may lead to perceptions that less value-added is received from EMC by member councils (particularly district councils) – as a number of services may no longer be provided on the same basis. The impact of this could be pressure upon membership (and subscription income) that could undermine the value of EMC. Full consultation with members on the work programme and a focus on value-added would mitigate against this risk.
6. Proposal for East Midlands Councils to Reduce its Pension Deficit a) Background
6.1. Leicestershire County Council Pension Fund has undertaken an actuarial review of the pension assets and liabilities that are attributable to EMC, as at 31st December 2013.
6.2 The actuarial review confirms a pension deficit of £835,000 on an on-going basis; with a much larger deficit of £3,160,000 on a gilts/termination basis. If EMC ceased, or when the last active member of EMC leaves the Leicestershire Pension Fund, it is this much larger figure that would be payable. It is because of the size of this figure that Leicestershire has sought an agreement with other upper-tier councils that will allow the on-going valuation basis to be used.
6.3 The EMC pension sub-fund is 82% funded. For comparison purposes, the overall Leicestershire Pension Fund was 72% funded as at 30th March 2013 and is estimated to be 75-76% funded as at 31st December 2014.
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6.4 In moving accountable body, EMC will become part of the Nottinghamshire Pension Fund. The EMC sub-fund will be a new scheme within Nottinghamshire and be fully funded at point of transfer.
6.5 Subject to the actuarial decision of the Nottinghamshire Pension Fund, it is estimated that EMC will make provision for an 18% employer’s superannuation pension contribution. This compares to the current rate of 19% employer’s superannuation pension contribution payable by EMC (and as currently budgeted) to the Leicestershire Pension Fund. b) Proposals for Closing the Pension Deficit
6.6 Management Group invites the Executive Board to endorse the following proposals for closing the £835,000 pension deficit:
Principles
6.7 Action is required on behalf of EMC to address the residual £835,000 deficit of the EMC pension sub-fund thereby minimising the liabilities of the 9 upper- tier councils. There is an expectation from these councils that EMC will take action to close the deficit in order to address concerns in relation to these pension liabilities.
6.8 Any contribution to pension liabilities should be at a level that offers a significant commitment to the reduction of the pension deficit while ensuring contributions are not set at a punitively high level that hollows out the EMC budget, thereby threatening organisational sustainability and the ability of EMC to meet wider financial liabilities.
6.9 Any contributions to the pension liabilities will be made from reserves held by EMC.
6.10 An on-going commitment is agreed but specific three year commitments are made in accordance with anticipated actuarial reviews. EMC will re-consider the level of contributions in response to any subsequent actuarial assessment.
Proposal
6.11 EMC makes a commitment to reduce the deficit of the sub-fund within the Leicestershire Pension Fund over 3 years.
6.12 This commitment is on the following basis; an initial 10% payment (£83,500) for 2013/14, followed by two further payments of 10% of the remaining
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deficit for the following years; specifically £75,200 for 2014/15; £67,700 for 2015/16.
6.13 Executive Board, on the advice of Management Group, reserves the right to review this commitment on an annual basis.
6.14 The commitment to reduce the pension liability is on-going; but after the initial 3 year period, subsequent commitments will reflect actuarial reviews and consideration of the level of EMC reserves.
7. EMC Reserve Statement
7.1 The following table provides a statement of EMC reserves.
7.2 This statement does not reflect any commitment to reduce the pension deficit through payments from reserves, or any option that will impact upon reserves, e.g. to support service delivery. These will be reflected in the reserves statement upon the agreement of options by Members.
GENERAL RESERVE Estimated 2014/14 2014/15 2015/16 Opening Balance 546,500 1,124,500 1,069,500 Partial IT refresh -30,000 Estimated trading surplus + 110,000 Estimated redundancy costs -25,000 Estimated removal costs - 12,000 RIEP legacy programme + 480,000 Closing Balance 1,124,500 1,069,500 1,069,500
Allocated as: Earmarked Reserves - Staffing Liabilities 300,000 300,000 300,000 - Other contractual liabilities 20,000 20,000 20,000 Non-earmarked reserves 804,500 749,500 749,500 1,124,500 1,069,500 1,069,500
8. Recommendations
Members of the Executive Board are invited to:
8.1 Endorse the 2014/15 budget, as recommended by the Management Group (subject to any amendment).
8.2 Endorse the proposals to close the deficit of the EMC pension sub-fund, as detailed in Section 6 of this report.
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8.3 Note the EMC reserves statement.
Alison Neal Corporate Governance Manager
17 Appendix 4(a)
East Midlands Councils Proposed Budget
2014/15 INCOME £ Members Subscriptions 258,000 Contracts /Grants 342,000 Trading 321,000 One off 40,000 Interest 2,500 Total Income 963,500
EXPENDITURE £ Salaries, NI,Supn.(Payroll) 750,400
Salaries (inc NI Super) 750,400
Travel /Mileage 20,000 Other Staff Costs 20,000
Members Allowances 18,500 EMC Meetings 1,500 Members Costs 20,000
Premises costs 32,000 Cleaning Materials 600 Office Equipment 3,000 Computer Equipment 4,000 Computer Maintenance 5,000 Meeting room costs 1,500 Photocopying 4,500 Stationery 3,000 Postal Services 2,000 Telephones/Fax/Internet 9,500 Mobile Phones 500 Subscriptions 4,000 Insurance 1,500 SLA - NCC 23,500 Computer Services (SLA) 10,500 Web Site/Publicity 3,000 Corporate Costs (Contingency) 5,000 Other Fixed Costs 113,100
Direct Project Costs 60,000
TOTAL 963,500
Bottom Line 0
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Summary EMC Trading Income
Members Fee Core Contracts Learning & Paying Fee Paying 2014/15 Budget Services & Grants Development Consultancy Events Services TOTAL
Income 300,500 342,000 50,000 186,000 67,500 963,50017,500
Total 300,500 342,000 50,000 186,000 67,500 17,500 963,500
Expenditure
Direct Staffing 236,300 189,350 59,900 130,000 49,300 15,950 680,800 Project Costs 60,000 60,000 Members allowances 20,000 20,000 Total 256,300 249,350 59,900 130,000 49,300 15,950 760,800
Indirect Staffing 21,650 25,700 9,800 24,150 7,700 600 89,600 Overhead costs 21,650 25,700 9,800 24,150 7,700 600 89,600 Accountable Body charge 5,680 6,745 2,570 6,335 2,015 155 23,500
48,980 58,145 22,170 54,635 17,415 1,355 202,700
Total 305,280 307,495 82,070 184,635 66,715 17,305 963,500
Surplus/Deficit -4,780 34,505 -32,070 1,365 785 195 0
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Executive Board 21st March 2014
Draft Business Plan 2014-15
Summary
The following report presents a draft Business Plan 2014-15 for the consideration of Members.
It reflects the initial views of Members expressed through the EMC organisational review, the full EMC meeting on 7th February 2014 and the meeting of EMC Management Group on 28th February 2014.
Recommendation
Members of the Executive Board are invited to:
. Consider and approve the draft Business Plan 2014-15.
. Approve proposals that the final draft of the Business Plan is further consulted upon with councillors across the East Midlands.
. Consider proposals for designating Executive Board members with lead role responsibilities against specific areas of the Business Plan.
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1. Background
1.1 The following report provides an overview of the proposed business plan for 2014-15. It reflects the initial views of Members expressed through the EMC organisational review, the full EMC meeting on 7th February 2014 and the meeting of EMC Management group on 28th February 2014.
1.2 The Executive Board is invited to consider and approve the proposed Business Plan 2014-15.
1.3 Upon the direction of Members, the agreed 2014-15 Business Plan will be used as the basis for the development of a longer term Business Plan and reflect the development of budgets for subsequent years.
1.4 For information, a summary of current activity, the roles and services that EMC provides on behalf of its membership, is attached as Appendix 5(a).
2. Introduction
2.1 In March 2013, the Executive Board of East Midlands Councils directed that a review of EMC should be undertaken, led by the Management Group, into the future roles and responsibilities of EMC.
2.2 The objectives of the review were agreed as: a) Confirm the basis, if any, for a collaborative, membership organisation representing local government in the East Midlands. b) What those roles and responsibilities should be. c) How the organisation will be financially supported from 2014/15 onwards. d) The governance arrangements appropriate to support any such organisation.
2.3 All member councillors in the East Midlands were invited to respond to the consultation on the review of East Midlands Councils. This included proposals for refocused work programme on the big ‘value-added’ issues facing the sector as well as a new approach for better engaging the membership in the work of East Midlands Councils.
2.4 In consideration of the independent review and responses to this consultation, the Board was unanimous in agreeing that EMC should: . Provide a better platform for councillors’ leadership. . Delivering added value with transparency of the costs and benefits of membership . Deliver services and support to local authorities.
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. Engaging with more councillors rather than a sole focus on leaders and portfolio holders through offering opportunities for all councillors in the region to be actively involved in some way in the work of EMC. . Work for getting a better funding deal for the region. . Establish a new approach for working with the region’s MPs, Local Enterprise Partnerships and wider partners. . Focus on a limited set of issues of key importance; e.g. economic development, public investment, housing and infrastructure, welfare reform, migration and climate change mitigation/adaptation. . Deliver an expanded councillor and officer development programme. . Moving to a more sustainable funding model
2.5 This business plan is, in effect, the review’s delivery plan – the work that EMC will undertake in order to deliver this new approach.
3. Sustainability
3.1 The Executive Board is committed to deliver greater financial sustainability from April 2014. This involves looking at new sources of funding and income, and minimising the liabilities of member councils in underwriting EMC.
3.2 Difficult choices will have to be made – but the business plan should focus resources on priorities set by Members.
4. Business Plan - ‘4 Pillars’ of Activity
4.1 The Business Plan is a statement of EMC’s objectives and proposed activity over the next 12 months in order to deliver upon the new approach agreed by Members. As a membership body, the priorities of EMC should be developed and agreed by member councils and clearly presented for review, not just in order to promote an understanding of the roles and responsibilities of EMC, but also as a measure against which our performance and value as an organisation should be judged.
4.2 Against this business plan, EMC must be flexible and respond to the changing priorities and challenges faced by the sector. Therefore, the activities within it may change if Members require it to. However, within this context, the business plan reflects issues highlighted through initial consultation with our membership and so provide the basis for work in the coming year.
4.3 The focus for the Business Plan is provided by the new ‘4 pillar’ approach unanimously agreed by Members at the Executive Board meeting on 6th December 2013 (and see diagram below): . All-Member Organisation. . Policy Development.
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. Collective Work and Lobbying. . Improve Communication.
East Midlands Councils Councillor-Led and Voice for the Region
Pillar 1 Pillar 2 Pillar 3 Pillar 4 All-Member Policy Collective Work Improve organisation Development and Lobbying Communication
Governance: Full EMC Membership Management Group, Executive Board and Regional Boards EMC budget 2014/15 - £963,500
4.4 Pillar One: EMC established as an ‘all-member’ organisation through securing greater member involvement. A fundamental change is that instead of an organisation that focuses on the limited number of councillors who comprise the actual membership of East Midlands Councils, EMC should become more of an ‘all member’ organisation through offering opportunities for all councillors in the region to be actively involved in some way in the work of EMC.
4.5 Pillar Two: A focus on policy development, with the membership providing the mandate for action (based upon an annual work programme).
4.6 Pillar 3: More effective collective work and lobbying. The identification of practical solutions and policy responses should link campaigning to the collective work of member councils, specifically in conjunction with the work of the All-Party Parliamentary Group of MPs (East Midlands) and LEPs.
4.7 Pillar 4: Improve communication with the membership and outside partners to better promote the identity and profile of the region alongside the value of the organisation. While aware of the political sensitivities of the ‘region’, there is nevertheless the potential to better promote this region and to support better joint working (as exists in other regions). The concern is that a failure to do so will do nothing to stop the region continuing to lose out in securing resources and wider investment.
4.8 In delivering the EMC Business Plan 2014-15; the 4 pillar approach provides the framework for the proposed programme of work. While some issues inevitably relate to more than one pillar of work, this approach does provide clarity on the focus of organisational activity against the priorities identified by the independent review and unanimously agreed by Members.
23 Item 5
4.9 The Business Plan 2014-15 overview against a 4 pillar approach is attached as Appendix 5(b): . The governance structures underpin the organisation and relate to all 4 pillars. . Each pillar has clear outcomes, services and proposed actions. . The budget analysis against Cores Services, Contracts & Grants and Traded Services (member development, consultancy, fee-paying events and services) relate to all 4 pillars. . Progress against the 4 pillar Business Plan will be reported on a quarterly basis to Management Group and Executive Board. a) Working with MPs – Pillars 2 & 3
4.10 We need to better unite MPs, MEPs and other partners around common causes and enhance the profile of the region and establish a genuine and effective collective approach in the East Midlands.
4.11 In particular, EMC will develop stronger links with MPs through their All-Party Parliamentary Group. Over the course of 2014-15 it is proposed that three summits are jointly held with the APPG on supporting LEPs/economic growth, migration and health to agree and subsequently deliver on joint priorities. On each issue, EMC will invite members to agree priorities – then in response, member-led task groups will undertake work and develop proposals supported by member consultation. This then feeds into the Executive Board and full meetings of EMC – our decision making bodies. b) LEP Strategic Priorities Review (April 2014) – Pillars 2 & 3
4.12 This review will consider the key strategic priorities contained in each of the LEP Strategic Economic Plans (to be completed by the end of March 2014), to ensure that MPs have a clear understanding of the proposals, and actively support what is proposed by each LEP and to highlight common or strategic measures that can form the basis of a joint EMC/EM APPG/ LEP lobbying platform. c) Migration Review (July 2014) – Pillars 2 & 3
4.13 The review group will clearly set out the patterns and types of migration in the East Midlands. With a focus on the local impact and effect of migration (e.g. on provision of services, local labour markets), it will highlight examples of good practice by local councils/local agencies in responding to these challenges and agreement of a limited number of priority issues for the Government to respond to, for local government to respond to, and for other partners to respond to.
24 Item 5
d) Health Review (October 2014) – Pillars 2 & 3
4.14 The establishment of a review group to undertake work on a regional health review; with a consideration of health inequalities and outcomes, and the agreement of priorities and action. e) A Focus on Growth and European Funding – Pillars 2 & 3
4.15 Lobbying for fair funding for the region from national/EU sources, in particular, securing a greater share of national infrastructure spend through delivery of key infrastructure priorities that include: . A5 (Staffordshire – Leicestershire – Northamptonshire) . Castle Line (Lincoln – Newark – Nottingham Rail Corridor) . The upgrade and electrification of the Midland Mainline (including the Market Harborough Enhancement) . Establishment of an HS2 Programme Board for the East Midlands to give strategic political leadership for the implementation of Phase 2 of HS2 in the East Midlands. . Increasing levels of investment in affordable housing provision . Securing additional investment in strategically important flood defences . Joint work with Institution of Civil Engineers in the development of a regional infrastructure projects pipeline.
4.16 Completion of ‘Future EU Structural Funds Review’ (June 2014). EMC will complete work that will support partners to maximise the opportunities of approximately €700m of future EU funding to the region. The region needs effective local delivery of projects with sufficient strategic scale and impact. The delivery of the PA3 TA Project by the end of June 2014 will focus on, and support, the development of public/private partnerships capable of doing this in a number of key sectors. f) A Focus on Welfare Reform (February 2015) – Pillars 1, 2 & 3
4.17 EMC has recently completed a review of the initial impact of welfare reform in the region. Members agreed that this issue should be further considered towards the end of 2014-15 in order to further consider the impact on councils and their communities with a particular focus upon rent and council tax arrears, the administrative burden on councils, and the future of welfare assistance schemes and discretionary housing payments. It is proposed to produce an updated Welfare Reform document in early 2015. g) Statutory Regional Employers’ Role - Employment and Pay – Pillars 2 & 3
25 Item 5
4.18 All regions have a statutory Employers’ Organisation, and this is one of the functions within EMC. Its primary focus will be to represent the interests of local authorities on employment issues as they develop at European, national and local level, as indicated below: . Representing the region’s councils at national meetings. . Host regional pay consultation meetings. . Dispute resolution (both formal and informal). . Liaise and communicating with councils on pay negotiation developments. . Represent the interests of local councils in the region at European level on Directives being developed/reviewed e.g. Working Time, Agency Workers, Equality and equal pay. h) Meeting the Sector’s Challenges – Pillars 1, 2 & 3
4.19 A core role for EMC is to provide a platform for councillors’ leadership to address the key challenges facing the sector. In addition to the priorities above, the membership has highlighted the following issues for EMC to focus upon: . Children’s, Adults and Health and Wellbeing. EMC and the LGA will continue to jointly support member networks for Chairs and Portfolio Holders in Children Services, Adult Social Care and Health and Wellbeing Boards. These will support members to work collectively on joint priorities and to lead on self-improvement and capacity development.
4.20 Adapting to the changing environment. The EMC review recognised that councils are working within a changing environment and EMC should respond to these changes and provide an effective platform for councils to respond to legislation, policy and funding, and to engage with Government Departments particularly those with a presence at the regional level, e.g. DfT, BIS, DCLG, the Home Office, DfE, DEFRA and the Cabinet Office. i) Externally Funded Programmes – Pillars 1, 2 & 3
4.21 Where they meet with organisational objectives, East Midlands Councils is responsible for the delivery of externally funded programmes on behalf of the region: a) Climate change mitigation and adaptation with a focus on councils and businesses, delivered through Climate East Midlands (funded by DEFRA). b) Informing the delivery of European structural funds 2014-2020 (EU Funded) – in particular through a series of sector based events, starting with the rail industry on the 26th February 2014 at the Roundhouse, Derby. c) Regional Migration Partnership (funded by Home Office) d) Secretariat for Rural Network East Midlands, including an annual conference on the 20th November 2014 at Scalford Hall, Leicestershire.
26 Item 5
j) The Provision of Member Support - Pillars 1, 2 & 3
4.22 Member support is a key offer of East Midlands Councils that will focus on providing timely and relevant support for councillors in providing leadership on matters important to their council and communities.
4.23 East Midlands Councils commits to delivering an expanded Member Development Programme for 2014-15 so that every month there is at least one all-member event or member development opportunity. This will include the following: . Support, briefings and advice. . Councillor development charter – providing bespoke support to councils in gaining the nationally recognised award for councillor development. . Facilitating personal development plans for councillors. . Councillor skills portal – providing support to councils using an on-line portal for councillor development. . Programme of knowledge briefing events for councillors. . Provision of community leadership development leading to formal accreditation for councillors. . Locally-based councillor development programmes (within county-based areas). k) Delivering Value-Added and Benefits of Membership – Pillars 1 & 4 . Facilitating appraisals for chief executives . The provision of discounted services, e.g. e-pay Check (the on-line pay benchmarking database); WARP network (IT security early warning system) and East Midlands Jobs (online recruitment portal). . Access to discounted consultancy services and capacity support . Discounted officer development programmes, e.g. CPD programme for Environment Health Officers, CPD programme for Planners, Delivery of Planning & Housing Master classes . Research and information service . Collating and circulating information on HR policies and practice amongst local authorities . Providing an advice service to local authorities on terms and conditions and employment law . Salary surveys and salary benchmarking . Economic, housing and investment trend date and information l) Better communication – (April 2014) Pillar 4
4.24 An important pillar of this new approach is communication with our membership to better promote the identity and profile of the region, and to better support joint working in securing resources and wider investment.
27 Item 5
4.25 To deliver this, EMC will provide: . A refreshed policy brief. . Regular updates on the progress of work and opportunities for members to inform its development. . Better use of EMC website including a discussion facility and link to councils’ and councillors’ twitter accounts. . Greater opportunities for the use of social media. . Targeted promotion of specific regional/sub-regional issues.
5. Consultation and Next Steps
5.1 The draft Business Plan has been informed by: . The independent report from the review of East Midlands Councils. . Initial consultation responses from councillors. . The priorities as highlighted by EMC membership at its meeting on 7th February 2014. . Direction provided by the Management Group.
5.2 An agreed element of the revised approach is the opportunity for the membership of East Midlands Councils to inform the development of the Business Plan.
5.3 To support this, reflecting any changes as agreed by the Executive Board, it is proposed that a final consultation draft is shared with all councillors for comment for a 2 week period with final sign-off of the Business Plan delegated to EMC Management Group.
5.4 The final version including agreed budgets will be published and disseminated to the wider membership and partners.
5.5 In the delivery of the Business Plan, Members are asked to consider lead role responsibilities (similar to that of portfolio responsibilities) in order to support councillor leadership and engagement on all matters of EMC activity.
6. Recommendation
Members of Management Group are invited to:
6.1 Consider and approve the draft Business Plan 2014-15.
6.2 Approve proposals that the final draft of the Business Plan is further consulted upon with councillors across the East Midlands.
28 Item 5
6.3 Consider proposals for designating Executive Board members with lead role responsibilities against specific areas of the Business Plan.
Stuart Young Executive Director
29 Appendix 5(a)
A Summary of EMC Roles and Responsibilities
The (current) Business Plan 2013-14 is based on two priorities; supporting economic growth and sector-led transformation and improvement.
The activities referred to below are a summary against the headings of the proposed 2014/15 budget; Core Services, Contracts and Grants, Member Learning & Development, Consultancy, Fee Paying Events, Fee Paying Services.
1. Core Services a) Governance ▪ (Support for) full-membership EMC Meetings ▪ (Support for) EMC Executive Board Meetings ▪ (Support for) Regional Employers Board Meetings ▪ (Support for) Regional Improvement and Transformation Board ▪ (Support for) EM APPG b) Economic growth and Infrastructure ▪ Collective activity on HS2 ▪ A5 Partnership & Task & Finish Group ▪ Castle Line Stakeholder Board ▪ Market Harborough Steering Group (MML) ▪ Lincolnshire Flood & Drainage Management Strategy Board ▪ Joint work with Institution of Civil Engineers (Infrastructure Pipeline Project) ▪ Collective activity on affordable housing investment c) Statutory Regional Employers’ Organisation ▪ Resolving disputes – formal and informal ▪ Supporting joint consultation ▪ Representing the region’s councils and their interests at national meetings ▪ Hosting regional pay consultation meetings ▪ Liaising and communicating with councils on pay negotiation developments ▪ Providing an advice service to local authorities on terms and conditions and employment law ▪ Supporting the LGA to develop guidance to local authorities ▪ Responding to consultation on employment issues/legislation ▪ Representing the interests of councils at European level on Directives being developed/reviewed e.g. Working Time, Agency Workers, Equality and equal pay ▪ Undertaking appraisals for chief executives ▪ Salary surveys and salary benchmarking
30 Appendix 5(a) d) Free Member Services ▪ HR advice line ▪ Economic, housing and investment trend data and information ▪ Negotiating discounts for local authorities on subscriptions from other providers, e.g. on-line HR information system, e-learning systems e) Platform for Councillors’ Leadership ▪ Health & Wellbeing Chairs Network ▪ Children's Services Lead Members Network ▪ Adult Social Care Lead Members Network ▪ Scrutiny Chairs Network f) Officer Support Networks ▪ Welfare Reform ▪ Learning and development ▪ Councillor development ▪ Pay and rewards ▪ Disclosure & Disbarring Scheme Users ▪ Public Health HR Transition ▪ Safety ▪ Performance management and benchmarking ▪ Strategic Housing ▪ ERDF PA2 ▪ Troubled Families Leads g) Communication ▪ Weekly Policy Briefing ▪ Web-site management/Twitter ▪ Press releases ▪ Publications
2. External Contracts and Grants ▪ Delivery of regional migration project on behalf of the Home Office, including the Regional Strategic Migration Board. ▪ Delivery of ERDF PA3 Project – EU structural funding 2014-2020 ▪ Management and Delivery of Climate East Midlands grant funded activity ▪ Secretariat for Rural Network East Midlands
3. Member Learning and Development ▪ Regional councillor development events ▪ In-house councillor development events
31 Appendix 5(a)
▪ Councillor development charter – providing guidance and support, assessing against the charter, working with other regions to develop the charter ▪ Facilitating personal development plans for councillors ▪ Councillor skills portal – providing support to councils using the portal for councillor development ▪ Programme of knowledge briefing events for councillors ▪ Provision of community leadership development leading to accreditation for councillors ▪ Locally-based councillor development programmes (e.g. within county-based areas) ▪ Advice and support on all aspects of councillor development
4. Consultancy The following consultancy support for local authorities is provided: ▪ Interim HR management ▪ Recruitment and assessment centre service ▪ Restructures and reorganisation support ▪ Outplacement support ▪ Coaching ▪ Mediation ▪ Investigations (grievances, harassment/bullying/discrimination, disciplinary) ▪ Advice to hearings (grievances, discipline) and appeals ▪ Appeal training for appeal panel members ▪ Staff surveys ▪ Reports to provide independent expert advice on a range of employment issues, e.g. senior level salaries ▪ Provision of psychometric testing ▪ Provision of associate consultants ▪ Direct & Associate Consultant Support on planning & housing issues.
5. Fee Paying Events ▪ Regional officer training/development events ▪ In-house officer training/development events ▪ Low-cost CPD programme for Environment Health Officers ▪ Low-cost CPD programme for Planners ▪ Delivery of Planning & Housing Master classes
6. Fee Paying Services ▪ e-pay Check – on-line pay benchmarking database ▪ WARP network – IT security early warning system ▪ Coaching network – provision of a pool of qualified coaches and an on-line system to match coaches/coachees and provide coaching support materials
32 Appendix 5(a)
▪ East Midlands Jobs – online recruitment portal
33 Appendix 5 (b)
East Midlands Councils Councillor-Led and Voice for the Region
Pillar 1: All-Member Organisation Pillar 2: Policy Development Pillar 3: Collective Work & Lobbying Pillar 4: Improve Communication
Outcomes: Outcomes: Outcomes: Outcomes: . Councillors are more informed on issues that . Councillors have a better understanding and . Councillors better able and supported to provide leadership on key . Councillors better able to promote and adopt matter to them. engagement with policy of relevance and issues. best practice locally and regionally. . Councillors are able to plan for and importance to the region. . Councillors are more effective in lobbying on key regional issues and . Councillors better able to engage and inform implement new policies in their local council. . Councillor, MPs, MEPs or other partners (e.g. securing a better funding deal/investment and resources for the region. the work of EMC. . Councillors have greater ‘ownership of EMC. business leaders) have an effective relationship . More effective and collective approach between councillors, MPs, MEPs, . Secure greater resources/benefit to the region and joint approach. business leaders and other partners. through an enhanced profile. . Policy is better informed by, and reflects; local . Enhanced public profile for EMC and its leadership. priorities, concerns and opportunities. . The East Midlands ahs a greater profile and ‘speaks’ authoritatively on . EMC is able to more effectively represent member key issues. councils at the national level. Services: Services: . Every councillor offered opportunities for . Highlight best practice and case studies. Services: member development and to inform the . Online forum for councillors, officers and . High quality briefings and support fro councillors on priority issues. policy work of EMC. Services: partners. . A greater number of events on specific issues to provide a platform to . New councillor inductions after council Refreshed weekly Policy Brief. . Peer challenge and support. . influence and lobby. elections. All councillors offered the opportunity to inform . Joint procurement to secure efficiencies for . . Enhanced councillor leadership and support for ‘portfolio leads’ amongst . Online forums. the development of EMC policy/response. sector. Executive Board members. . Member Development events, action learning Reviews focused upon clear conclusions and . Opportunities for councillors to share thinking . . Enhanced links with the national (trade press), regional and local media. and peer mentoring. recommendations. with wider sector. . Update prospectus on investment and infrastructure opportunities. . Provision of bespoke and cost effective HR . Represent the region on a range of key issues of . A refreshed weekly Policy Brief. . Secretariat and co-ordinating role for EM APPG (MPs) and MEPs. and organisational capacity support. collective concern; economic growth and Hosting Climate East Midlands. . Provision of discounted services for member infrastructure, migration, health and well-being, . councils, e.g. pay benchmarking database, IT children’s and adults services, regional pay security and online recruitment portal. negotiations and consultation, and climate change mitigation and adaptation. Actions: Actions: . Better use of EMC website including a . More active approach to communications and media work. discussion facility, Twitter and other social . Coordinate joint external/lobbying work of EM APPG, business, trades media. Actions: unions and VCS, Government Departments. . Targeted promotion of specific regional/sub- . Respond to changing policy environment and . Identify lobbying opportunities and provide a platform for councils’ voice. regional issues. Actions: provide platform for Councillor leadership on key . Undertake specific and time-limited reviews, led by task and finish groups, . Calls for evidence from the sector to identify . Audit of learning and development needs. policy issues: e.g. welfare reform, New Homes on growth and infrastructure, European funding, migration and health. best practice within region and nationally. . An expanded member development Bonus, CIL, affordable housing investment. . Respond to consultations/calls for evidence/select committees to provide . Specific events on best practice and wider programme (delivered both regionally and . Develop policy forward plan that reflects risk, single voice on issues of common concern. opportunities for the sector. locally). opportunities and actions required. . Campaign of key issues that include wider levels of public funding, rural . Further developed links with the LGA, e.g. peer . Member briefing and consultation events on . Regular MP and MEP briefings. issues, efficiency and innovation. challenge, joint events. key/significant issues. . Regular councillor and officer briefing . Showing best practice amongst regional and national partners (e.g. South- . Further develop links with partner . Roll-out of mentoring/coaching offer and opportunities. West Councils, LGA). organisations, e.g. Government Departments, support. . Councillor-led task and finish groups develop . Focused work to secure a greater share of investment through: voluntary and community sector, business . Widen opportunities for member-leads on collaborative policy on specific issues; health, . Joint work on A5 (Staffordshire–Leicestershire–Northamptonshire) organisations. specific issues/priorities. migration and European funding. . Castle Line (Lincoln-Newark-Nottingham Rail Corridor) Facilitating personal development plans for . . Promote more effective LEP co-ordination. . The upgrade and electrification of the Midlands Mainline councillors. . Promote social care and NHS integration. . Establish HS2 Programme Board for the East Midlands . Promote and develop regional leadership on . Increase levels of investment in affordable housing climate change adaptation and mitigation. . Securing additional investment in strategically important flood defences
Governance: Full EMC Membership Management Group, Executive Board and Regional Boards EMC budget 2014/15 - £963,500
34 Item 6
Executive Board 21st March 2014
Revised Management Group Terms of Reference
Summary
This report proposes revised terms of reference for Management Group with specific reference to responsibilities for conduct and standards and lead member roles.
Recommendation
Members of the Executive Board are invited to:
. Consider and endorse the revised terms of reference and proposed ‘local arrangements for dealing with standards complaints’, as attached as Appendices 6(a) and 6(b) respectively. . Consider any further specific issues beyond those referred to in this report.
35 Item 6
1. Background
1.1 Management Group proposed that revised governance arrangements are developed that define its role and responsibilities in relation to EMC Conduct and Standards.
1.2 At its meeting on 28th February 2014, Management Group considered and agreed proposed changes to its Terms of Reference for subsequent recommendation to the Executive Board. If endorsed by Executive Board, the revised governance arrangements will take effect from 1st April 2014.
1.3 Members are reminded that it is within scope for the Executive Board to agree changes to Management Group (and any other Board’s) terms of reference.
2. Review of Terms of Reference in Relation to Conduct and Standards
2.1 The current East Midlands Council’s constitution and governing documents were updated in July 2012. This includes a Code of Conduct setting out the expected behaviours required of its members, acknowledging that they each have a responsibility to represent EMC and work constructively with EMC staff and partner organisations to secure better social, economic and environmental outcomes for the East Midlands.
2.2 It was suggested by Members of Management Group, at their meeting on 17th December 2013, that its terms of reference should be updated to include: . Specific reference to responsibilities for the conduct and standards of EMC members. . ‘Lead Member’ roles in respect to the core responsibilities of Management Group.
2.3 Confirmation of the formal role of Management Group in relation to Conduct and Standards of EMC members, whilst engaged on specific EMC ‘business’, would be appropriate to ensure clarity in advance of the formal transfer of EMC accountable body arrangements. The current terms of reference are silent on this point.
2.4 Formal lead roles for members of Management Group would support member ownership and oversight. For each role, formal job descriptions will be developed and agreed.
2.5 For the consideration of Members, the proposed revised terms of reference are attached as Appendix 6(a), with specific reference to paragraphs 6.16 to
36 Item 6
6.26. The proposed ‘local arrangements for dealing with standards complaints’ are attached as Appendix 6(b).
3. Other Changes
3.1 In addition to paras 6.16-6.24, the revised terms of reference propose further minor changes, specifically: Para 3.1 Reference to both internal and external auditors (previously, the only reference was to external auditors) Para 3.2 Reference to both internal and external auditors (previously, the only reference was to external auditors) Para 6.2 Proposal for the appointment of lead member roles for key Management Group responsibilities, excluding ‘political advice and support’.
4. Recommendations
Members of the Executive Board are invited to:
4.1 Consider and endorse a) The revised terms of reference as attached as Appendix 6(a). b) Proposed ‘local arrangements for dealing with standards complaints’, as attached as Appendix 6(b).
4.2 Consider any further specific issues beyond those referred to in this report.
37 Appendix 6(a)
Management Group
Draft Revised Terms of Reference (for implementation on 1st April 2014).
1. Membership
1.1 The Management Group will consist of 7 members:
. The Chair of EMC/Executive Board . The Principal Vice-Chair of EMC/Executive Board . The District Vice-Chair of EMC Executive Board . The four Political Group Leaders of EMC
1.2 A quorum shall be four members.
1.3 It is anticipated that the Group will operate on the basis of consensus. If required, voting at meetings shall be by show of hands and shall be by way of a simple majority.
2. Chair of Management Group
2.1 The Principal Vice-Chair of EMC/Executive Board will chair meetings of the Management Group.
2.2 The Vice-Chair of Management Group will be the political group leader of the largest political group of local authorities in membership of EMC (political balance will be determined on the basis of political proportionality information provided by the LGA).
3. Attendance at Meetings
3.1 The Corporate Governance Manager and the Executive Director of EMC shall normally attend meetings. A representative of the accountable body has a right to attend should they so wish. The internal/external auditor (as appropriate) shall attend meetings as requested by the Chair of the Management Group.
3.2 At least once a year the Group may, at its discretion, meet with the internal and external auditors without EMC Executives present.
3.3 Meetings of EMC Management Group shall be open to the public, subject to the right of exclusion at the discretion of the Chair. Agenda and supporting papers will be published on EMC website at least one week in advance of the meeting unless, on the advice of the Corporate Governance Manager, the item is ‘confidential and not for publication’.
38
Appendix 6(a)
4. Frequency of Meetings
4.1 Meetings shall be held quarterly, prior to any meetings of the Executive Board, and additionally as required.
4.2 Representatives of the accountable body and/or the internal/external auditors may request a meeting if they consider that one is necessary, in consultation with EMC Executive Director.
5. Authority
5.1 The Management Group is part of the formal governance structure of East Midlands Councils and reports to EMC Executive Board on a quarterly basis.
5.2 The Management Group is authorised by the Executive Board and East Midlands Councils to investigate any activity within its terms of reference. It is authorised to seek any information it requires from any employee. All employees are directed to co-operate with any request made by the Management Group.
5.3 The Management Group is authorised by the Executive Board and East Midlands Councils to obtain outside legal or other independent professional advice and to secure the attendance of outsiders with relevant experience and expertise if it considers this necessary.
5.4 The Management Group has the power to act without reference to the Executive Board on matters within its authority.
6. Roles and Responsibilities
6.1 The roles and responsibilities of the Management Group shall focus upon: a) Corporate Governance (including legal and accountable body arrangements) b) Performance Management c) Audit and Financial Control d) Conduct and Standards e) Political Advice and Support
6.2 Management Group will allocate from within its membership ‘lead member roles’ with respect to its responsibilities for corporate governance, performance management, audit and financial control, and conduct and standards.
6.3 The ‘lead member’ roles will be allocated on the following basis:
39
Appendix 6(a)
a) Audit and Financial Control - EMC Principal Vice-Chair. b) Political Advice and Support - EMC Chair.
c) ‘Corporate governance’, ‘performance management’ and ‘conduct and standards’ to be determined on the basis of political proportionality (with reference to para 2.2) on the following basis: . Management Group members invited to submit up to two expressions of interest for lead member roles. . The ‘lead roles’ will then be considered and agreed by EMC Political Group Leaders, on the basis of political proportionality. . If agreement cannot be reached, then the Management Group will vote on this matter, by show of hands, and shall be by way of a simple majority.
Corporate Governance
6.4 To consider all matters relating to corporate governance and make recommendations to the Executive Board and full meetings of EMC, as appropriate. Corporate Governance relates to the set of systems, principles and processes by which EMC is governed.
6.5 To consider and recommend to the Executive Board EMC’s Annual Business Plan.
6.6 To hold the EMC Executive Director accountable for the efficient and effective management of the organisation and to undertake an annual appraisal against achieving the objectives and priorities identified and agreed by the political leadership.
Performance Management
6.7 To ensure that non-financial performance is properly monitored and to review EMC progress in agreeing and delivering its annual key performance indicators and report appropriately to the Executive Board.
Audit and Financial Control
6.8 To decide on and recommend to the Executive Board the adoption of EMC’s Annual Budget.
6.9 To ensure that a rigorous risk management framework and associated control environment is in place.
6.10 To ensure that the financial performance and compliance with financial regulations is properly monitored.
40
Appendix 6(a)
6.11 To have proper oversight of the financial reporting processes.
6.12 To have responsibility for establishing and recommending policy on all finance matters.
6.13 To review quarterly and annual financial statements before submission to the Executive Board and East Midlands Councils, focusing particularly on: a) Any changes in work programmes and/or accounting policies and practices. b) Proposed virements within the overall budget exceeding £20,000. b) Significant adjustments resulting from any audit. c) The ‘going concern’ assumption. d) Compliance with accounting standards and financial regulations. e) Compliance with legal requirements. f) Review and update of the Risk Register.
6.14 To discuss concerns or issues arising from the interim and final audits, and any matters the auditor may wish to discuss (in the absence of the Executive where necessary).
6.15 To consider the findings of internal investigations and the response of EMC executive.
Conduct and Standards
6.16 In relation to Members’ actions whilst engaged on EMC business, EMC has adopted Local Arrangements [insert date 1st April 2014] [as detailed in Appendix x] that applies to complaints against members of EMC alleging failure to comply with the Members Code of Conduct (a ‘standards complaint’) as stated in EMC Constitution.
6.17 To promote and maintain high standards of conduct by Members of EMC.
6.18 Assisting Members to observe the Members’ Code of Conduct.
6.19 Monitoring the operation of the Members’ and Officers’ Codes of Conduct.
6.20 Advising, training or arranging to train Members on matters relating to the Members’ Code of Conduct.
6.21 To consider and determine allegations that individual Members have breached the Members’ Code of Conduct.
41
Appendix 6(a)
6.22 Taking all decisions that are necessary to deal with individual cases of alleged breaches of the Code of Conduct.
6.23 Reviewing and monitoring EMC’s response to: a) Probity and standards issues arising from internal audit functions and reports of the external auditor. b) Corporate governance issues that relate to whistle blowing and complaints handling. c) Any other functions allocated to the Management Group that relates to Conduct and Standards.
6.24 If a Member of East Midlands Councils is subject to a standards investigation at their own local authority that, in the view of the respective Monitoring Officer, is of a serious nature; then the member council be invited to withdraw the nomination of the member concerned from acting as their EMC representative in any capacity during the course of the investigation. If the complaint is upheld, then Management Group will agree on any further action from an EMC perspective after consultation with both the EMC Monitoring Officer and the Monitoring Officer from the member’s own local authority.
6.25 The process highlighted in paragraph 6.24 is intended to link the standards regimes of EMC and its member councils, and support EMC to uphold high standards of behaviour and integrity. It should in no way be taken as a judgment of the standards investigation before its conclusion.
6.26 The EMC Corporate Governance Manager acts as EMC Monitoring Officer.
Political Advice, Guidance and Support
6.27 To provide political advice, guidance and support to senior officers of East Midlands Councils, agreeing the composition of agendas for both the Executive Board and full EMC meetings, and identifying issues to be raised as appropriate.
6.28 To provide political lines of communication to members of East Midlands Councils.
6.29 To identify political representatives to East Midlands Councils Boards and to external organisation and partnerships.
6.30 In addition to those roles and responsibilities identified in paras 6.4 to 6.29; the Management Group reserves the right to consider other issues, as identified and agreed by the Executive Board and East Midlands Councils.
..... [END] …..
42
Appendix 6(b)
[Draft] Proposed Local Arrangements for Dealing with Standards Complaints
1. EMC has adopted its Code of Conduct (July 2012) setting out the expected behaviours required of its members, acknowledging that they each have a responsibility to represent EMC and work constructively with EMC staff and partner organisations to secure better social, economic and environmental outcomes for the East Midlands.
2. In accordance with the Localism Act provisions, when acting in this capacity all Councillors must be committed to behaving in a manner that is consistent with the principles detailed in Section [x] of the EMC constitution, agreed July 2012
3. The Local Arrangements relate to allegations of failure to comply with the Members Code of Conduct (a ‘standards complaint’) as stated in EMC Constitution [reference x].
4. For clarity (a) these Local Arrangements apply to complaints against members of EMC whilst, upon the judgement of the Monitoring Officer, are engaged on EMC business and (b) they do not apply to complaints alleging more serious issues such as alleged criminal offences which are dealt with by other means such as referral to the Police.
5. The arrangements reflect commitment of the Management Group to maintaining high standards of conduct and their wish to demonstrate that commitment by playing a leading role.
6. Following a standards complaint made to the Monitoring Officer or referred to him/her, the Monitoring Officer will inform the Member and relevant Group Leader that a complaint has been received. The EMC Monitoring Officer will also inform (and provide further updates to, as appropriate) the Monitoring Officer of the Council from which the Member has been nominated to EMC.
7. The Monitoring Officer will review the complaint to evaluate whether it is covered by the Code of Conduct.
8. If it is not covered by the Code of Conduct the Monitoring Officer will inform the Member and relevant Group Leader and notify the complainant.
9. Where the complaint is covered by the Code of Conduct the Monitoring Officer will consult the Group Leader and evaluate whether the behaviour complained about presents a serious risk to the reputation of EMC.
10. If there is no serious risk to the reputation of EMC, the Monitoring Officer will work with the Member and relevant Group Leader to seek an informal resolution. The Monitoring Officer will notify the complainant.
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11. If there is a serious risk to the reputation of EMC, the Monitoring Officer will appoint an appropriate independent person to investigate the complaint.
12. Where the independent investigator finds that no breach of the Code has occurred, the Monitoring Officer will notify the Member and relevant Group Leader and complainant.
13. Where the investigator finds that a breach of the Code has occurred, the Monitoring Officer will make arrangements for a ‘Hearing’. The Hearing will be by the Management Group, and will consider the Investigators Report, consult the Independent Person and, except in cases covered by paragraph 14 ebelow, mak recommendation(s) to the relevant Group Leader (or their nominated senior member, as referenced in paragraph 15) who will decide the appropriate action and notify the Member and Monitoring Officer. The Monitoring Officer will notify the complainant of the outcome and any sanctions imposed.
14. Where the Hearing, having consulted the Independent Person, decides that the complaint is of such extreme seriousness that it should result in the censure of the Member, then such a proposal should be referred to the next meeting of EMC Executive Board.
15. In cases where the complaint is against a Member of the Management Group, the process will be that as detailed in paragraphs 6‐14 above except that (a) a nominated representative of the Member of Management Group will attend the Hearing in their stead, and (b) the Monitoring Officer will consult the nominated representative in all cases where he/she would have otherwise consulted a Group Leader.
16. The ‘nominated representative’ shall be a senior Member of EMC, not from that Member’s own local authority, specifically nominated for that purpose in advance of any complaint of a Member of Management Group.
17. In cases that involve the engagement of a nominated representative, the Hearing will in accordance with the processes highlighted in paragraphs 13‐14 above.
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Executive Board Meeting 21st March 2014
Regional Review: The Impact and Response to Migration in the East Midlands
Report by the Strategic Migration Partnership Board
Summary
East Midlands Councils considered a report on 7th February 2014 on recent migration trends in the East Midlands, how these may affect local councils and examples of how councils are taking effective action in supporting migration in their local communities.
As part of the new approach agreed by Members, it was agreed that EMC would undertake a review into the impact of, and response to, migration in the East Midlands.
Recommendations
Members of the Executive Board are invited to:
. Support the completion of a review into migration in the East Midlands as the basis for further engagement with Government and partners.
. Note recent migration trends, direct the review going forward and to highlight any specific issues of concern.
. Support the Chair of the SMP in writing to the Immigration Minister to highlight concerns with proposed grant ‘conditions’, as suggested in paragraph 2.5.
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1. Introduction
1.1 At the 7th February 2014 meeting of East Midlands Councils, Members supported the completion of a review into migration in the East Midlands as the basis for further engagement with Government and partners on this important issue.
1.2 Led by councillors from across the region, and chaired by Cllr Paul Kenny (Boston Borough Council), the EMSMP will lead the development of a region-wide report on migration in the East Midlands in order to: . Inform consideration on the impact of migration on the region. . Highlight where local councils are effectively responding. . Advise/lobby regional and national bodies, including DCLG and the Home Office on behalf of our membership.
1.3 Clearly, there are important positive effects of migration. At the same time, migration impacts upon the demand for and use of public services. While the average cost of providing some public services to migrants is the same for those born in the UK, and the rise in service delivery costs are linked to increasing demand, in other areas there are likely to be additional costs to local councils. For example, migrants are likely to make a greater use of translation services than those born in the UK, or schools incurring potential additional costs in providing the necessary support for migrants’ children.
1.4 The purpose of this report is to give an overview of the key issues as they affect the East Midlands and to invite Members of the Executive Board to provide a steer on the issues that the review should focus upon.
1.5 The objective of the review is, through consultation with Members and partners, to identify the key issues for councils and communities in the East Midlands, highlight examples of good practice and work with Government to ensure that councils are supported in responding to any challenges.
2. Background on the East Midlands Strategic Migration Partnership
2.1 The EMSMP is supported by an enabling grant from the Home Office. The value of this grant is currently £105,000 per annum.
2.2 A core responsibility of the EMSMP is to facilitate strategic regional leadership on migration amongst partners in the region, to monitor migration impacts and trends, and raise awareness of issues, risks and opportunities within the region to inform policy.
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2.3 Consequently, the EMSMP is ideally placed to lead this review and to engage with, and respond to councillors and partners throughout the course of its work.
2.4 Members are informed, however, that the Home Office has recently indicated that the Enabling Grant from 1st April 2014 will be for the specific purpose of supporting work on asylum and asylum dispersal. The numbers of supported asylum seekers in the East Midlands, as at 1st March 2014, are 1873. This represents a relatively small number compared with regional migration more generally. The 2011 census identified 448,211 foreign born residents in the East Midlands compared with a usual resident population of 4,533,222.
2.5 The Executive Board are therefore asked to support the Chair of the SMP in writing to the Immigration Minister stating that whilst EMC welcomes the continuing support of the Home Office to the work of the East Midlands Strategic Migration Partnership, there is concern that other responsibilities previously included in the grant, e.g. work on EU migration, Afghan interpreters, Syrian vulnerable people, support to the Migration Advisory Committee and immigration enforcement, will no longer receive direct Government funding.
3. Emerging Issues for Consideration
3.1 From initial research, consultation and feedback from members the following have been identified as initial issues for consideration and will be tested as part of the wider review: a) Data and the impact on Funding
3.2 Whilst data on migration has seen some improvements in recent years it is of concern to local government that the current methods for collecting data have led to a significant under-estimation of migration numbers. Since a sizeable element of local government funding from central government is directly linked to the size of the local population, the undercount of the migrant population has, led to inadequate funding for public services. Even when additional funding is forthcoming it lags behind the more immediate pressure on local services. b) Cost shifts
3.3 The Government should ensure that local councils have adequate funding to provide and pay for the increasing demand for public services. Cost shifts from central to local government include support to those who have No Recourse to Public Funds, support to former ‘looked after unaccompanied asylum seeking children’ who have exhausted all appeal rights and the impact of the ‘Newcastle
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Judgement’ that that found local authorities have a duty (with no discretion) to make a grant in relation to educational expenses and this could include a grant for university tuition fees for former looked after children. c) Dispersal of Asylum Seekers
3.4 Whilst the numbers are relatively small in comparison with other migrant groups, a fair process of dispersal of asylum seekers should be maintained in the East Midlands which do not place additional burdens on local services. d) English as a Second Language
3.5 The census findings suggest that in the East Midlands there is a slightly lower English Language proficiency in comparison to England and Wales as a whole. This coupled with increasing pressure on public services to reduce translation and interpretation costs means that access to ESOL provision is of increasing concern. e) Legislative changes
3.6 Proposed new legislation including the Immigration Bill and the Modern Slavery Bill offer opportunities for local government to make representation to government. f) Returns
3.7 Local Government continues to adopt a multi agency approach to the voluntary return of migrants where appropriate. Central Government should meet its obligations in wherever possible by removing those who have no legal right to remain in the UK or meet the cost of supporting those individuals where removal is not possible. g) Economic activity
3.8 To address concerns regarding fair and legal employment, the EMSMP is raising awareness with employers of their obligations as employers and also to ensure that workers are able to exercise their legal rights. Local authorities have a clear role in supporting employment creation and influencing local labour markets. Local Government request that they continue to be consulted on the impact of migrant workers on the local economy and welcome the outcome of the recent consultation by the Migration Advisory Committee of the impact of migrant workers and low pay.
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h) No Recourse to Public Funds
3.9 One barrier to the effective management of cases is the lack of data sharing between local government and the Home Office. EMC acknowledge the introduction of the NRPF Connect database and support the further roll-out of this initiative. i) Health
3.10 The lack of migrant health information hinders Local Authorities, Health and Wellbeing Boards and the NHS in effectively understanding the health needs of their local migrant population and reflecting this in Joint Strategic Needs Assessments. j) Strategic Planning
3.11 Local Government welcomes the ongoing commitment to the East Midlands Strategic Migration Partnership from the UK Visas and Immigration division of the Home Office. However, for the East Midlands the management of asylum dispersal, whilst crucial, is one small part of a wider issue. There needs to be cross governmental engagement on the issues that are associated with migration to limit unintended consequences of policy and legislative change.
4. Progress and Future Milestones
4.1 Subsequent to the meeting of EMC on 7th February 2014, the East Midlands Strategic Migration Partnership Board considered these issues and fully supported review proposals at its meeting on 5th March 2014.
4.2 The East Midlands All Party Parliamentary Group, in conjunction with EMC, will consider the impact of migration at a Westminster summit on 9th June 2014. Through this event; MPs, MEPs, Leaders, Chief Executives and representatives from the business and voluntary and community sectors will be invited to inform this review.
4.3 An all-member consultation briefing event is scheduled for the 17th June 2014. This will focus on the trends and impact of migration, the responses by local councils and partners, and highlight examples of innovative and good practice by partners. Importantly, it is an opportunity to engage with the wider membership on this issue and provide an opportunity for councillors to directly inform further work and focus.
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4.4 There are a number of examples of good practice from local authorities across the region and it is envisaged that the review will bring together these examples and identify further examples which highlight the response of local government.
4.5 In terms of progress, the EMSMP welcomes the outcome of a recent round table meeting with DCLG on the issue of cost burdens. EMSMP understand that DCLG are considering a New Burdens Assessment of the various changes in law and practice that have given rise to increasing numbers and costs for local authorities.
4.6 The Executive Board will be invited to consider the draft final report and recommendations at its meeting on 13th June 2014.
4.7 As agreed by Members, this work will culminate in a final report and recommendations to the East Midlands Councils AGM on 11th July 2014, as presented by the Chair of the Strategic Migration Partnership.
5. Migration Trends
5.1 The following section highlights recent migration trends to inform the consideration of Members
5.2 Using Census 2011 data, East Midlands had one of the fastest growing populations of all English regions between 2001 and 2011. Overall, the population of the East Midlands was 4.5 million in mid-2011, 9% of the population of England.
5.3 The population increased at the third highest rate of any English region between 2001 and 2011, rising by 8.3% compared with 7.4% for England. The interim 2011-based projections suggest that the region may have 4.9 million residents by 2021, 8.6% more than in 2011, the same as the projected percentage increase for England over the same time period.
5.4 Within the region, most notably the populations of Leicester City and Nottingham City increased by around 15% between 2001 and 2011. They are both projected to increase by around 5% in the next 10 years.
5.5 In mid-2011, 17.2% of residents in the East Midlands were aged 65 and over, a similar proportion to most other regions outside London. However, this masks some significant intra-regional differences with, for example, Lincolnshire having a greater proportion of resident older people than other counties in the region.
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More generally in this region, as nationally, the proportion in this age group is expected to grow much faster than the total population. The projections show that by 2021, 20.1% of residents could be aged 65 and over.
5.6 International and interregional net migration to the region increased the population at a rate of 26 people per 10,000 residents in 2010, compared with the England average of 41 per 10,000 residents.
5.7 Population density in the East Midlands in mid-2011 was 290 residents per sq km, one of the lowest among the English regions. It varied from less than 80 residents per sq km in local authorities West Lindsey and East Lindsey in Lincolnshire, to 4,500 in Leicester UA. a) In 2011, the total usual resident population of the East Midlands stood at 4,533,222. Close to 10% of those residents (448,211) were born outside of the UK.
5.8 As shown in Table 1, in 2011, the total usual resident population of the East Midlands stood at over just over 4.5 million people; 448,211 of which had been born outside of the UK. This represents 9.9% of the total resident population of the region (a 63.5% increase from 6.1% in 2001). The foreign-born population of the East Midlands accounts for 6% of the total non-UK born population of England and Wales (an increase of 10% from 5.4% in 2001).
5.9 Since 2001, the foreign-born population grew by 195,901 persons, accounting for 54% of the total population growth of 361,048 usual residents in the decade. While overall the population of the East Midlands increased by nearly 9% between 2001 and 2011, the non-UK born resident population grew by 78% in the same period.
Table 1 - Key Census Statistics for the East Midlands
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5.10 In 2011, 42% of East Midlands’ foreign-born residents were aged 20-39 years of age and 70% were aged 20-59 years of age. In comparison, 24% of the UK- born population were between 20 and 39 years old in 2011. b) In 2011, 46% of the non-UK born population held a UK passport, and 49% held only a non-UK passport. The rest (5%) held no passport.
5.11 In terms of the foreign-born population, 46% of the non-UK born population (206,974 residents) held a UK passport, while 49% (219,279 residents) held only a non-UK passport. Only 5% of the foreign born population held no passport. c) Nearly a quarter (24.7%) of the foreign-born population resided in Leicester, with the city having both the highest number (110,843) and highest population share (33.6%) of non-UK born residents in 2011.
5.12 Nearly a quarter (24.7%) of the foreign-born population of the East Midlands resided in Leicester (see Table 2). Leicester also had the highest number of non- UK born residents with 110,843 residents, amounting to 33% of the local population. This was followed by Nottingham with 59,729 residents, accounting for 13% of all foreign-born residents living in East Midlands and 20% of the local population. This means that more than a third (38%) of the non-UK born residents of East Midlands resided in the cities of Leicester and Nottingham.
5.13 Conversely, the smallest proportion of the foreign-population lived in the county of Derbyshire; its 25,642 foreign-born residents represent 6% of the total non- UK born population of the region and 3% of the local population. At the more
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local level, the district with the smallest foreign-born population was Bolsover (2,292 residents representing 0.5% of East Midlands’ non-UK born population).
5.14 Leicester also had the highest number of residents with a non-UK passport. In 2011, there were 50,174 residents with a non-UK passport, representing 15% of the local population and 21% of all those with a non-UK passport resident in the East Midlands. In this measure, Derbyshire also had the smallest percentage of residents with only a non-UK passport in 2011, with the 12,652 residents representing 1.6% of the local population and 0.7% of all non-UK passport- holders in the region.
Table 2 Non-UK born and non-UK passports held: East Midlands 2011 Chart provided by migrationobservatory.ox.ac.uk
53 Item 7 d) Between 2001 and 2011, the total foreign-born population grew the most in Leicester (46,283 additional non-UK born residents) while the biggest percentage increase in the foreign-born population occurred in Boston (a 467% increase)
Table 3
5.15 Between 2001 and 2011, the non-UK born population increased in every local authority area within the East Midlands, but to varying degrees and at different speeds (see Table 3). The largest numerical increase took place in Leicester, with the number of foreign-born residents rising by 46,283 persons. However, since the non-UK born population was already the largest in the region in 2001, this
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rise represents an increase of 72%, in line with the overall growth of the foreign- born population of the region.
5.16 The biggest percentage increase in the non-UK born population occurred in Boston, where the non-UK born population grew by 8,063 residents (from 1,727 in 2001 to 9,790 in 2011), representing a growth of 467%. At the same time, the non-UK born population has grown the least in Rutland, increasing by 445 residents; a rise of 23%, the lowest in the region.
Table 4
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5.17 As shown in Figure 4, although the non-UK born population has increased in each area of the East Midlands since 2001, its distribution within the region has changed somewhat since 2001. In terms of the foreign-born as a proportion of the total resident population within a given area, the highest increase (from 3% to 15%) also took place in Boston. The area with the lowest change in the share of the foreign-born population within the resident population was also Rutland, with an increase of 12% (from 5.7% in 2001 to 6.4% in 2011). e) Residents born in India represent the most numerous non-UK born group in the East Midlands (68,463 residents) followed by residents born in Poland, Ireland, Pakistan and Germany
5.18 It is important to note that the non-UK born groups were not evenly distributed across the region. Residents born in India were largely concentrated in the Leicester City, with 337,224 Indian-born persons residing there in 2011, accounting for 54% of all Indian-born residents of East Midlands and 34% of Leicester’s foreign-born residents.
5.19 Northamptonshire had the largest Polish-born population out of the 9 upper-tier authority areas, with 12,475 residents born in Poland in 2011, representing 23% of all Polish-born residents in the region and 17% of the local foreign-born population.
5.20 In terms of the Polish-born as proportion of the local foreign-born population, Mansfield had the highest level where 35% of the local non-UK born was born in Poland. f) In terms of main spoken language, 269,717 residents of the East Midlands (6% of total population) spoke a language other than English as their main language in 2011
5.21 Among those residents of the East Midlands who did not select English as their main spoken language in 2011, 75% reported speaking English either very well or well (compared to 79% nationally); 21% reported not being able to speak English well; while 4% reported they couldn’t speak English at all. g) In both 2001 and 2011, the East Midlands ranks 5th position in terms of the population share and 7th position in terms of population numbers of non-UK born residents, out of the ten regions of England and Wales.
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5.22 In terms of a regional comparison, foreign-born people as a percentage of the total population within East Midlands stood at 9.9% in 2011. On this measure, the East Midlands occupied the 5th position of the 9 regions of England and Wales in both 2001 and 2011 (see Figure 9). The regions with the lowest share of the foreign-born population were Wales and the North East, where those born outside of the UK made up 5.5% and 5% of residents respectively. On the other hand, the region with the highest proportion of non-UK born residents was London (37%) and the second region with the highest non-UK born population was the South East (12.1%).
Figure 5
5.23 In terms of the number of non-UK born residents, in both 2001 and 2011 the East Midlands ranked 7th among regions of England and Wales concerning the (see Figure 10). London had the highest number of foreign-born residents; the North East was the region with the lowest proportion of non-UK born population, where there were 128,000 people born outside of the UK in 2011.
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Figure 6
6. The Social Impact of Migration (Home Office Research, 2013)
6.1 This Home Office research into the Social and Public Service Impacts of Migration (2013) identified that different types of migrant have a different impact locally. The research also identifies that legitimate international students and highly skilled non EU migrants are likely to make less demands on services than the indigenous population:
6.2 Low skilled migrant workers present a mixed picture. In some sectors, including agriculture and hospitality, they are regarded as bringing essential benefits but migrants can also have higher impact on health, housing and social cohesion. The report identifies that asylum seeking families and asylum seekers and refugees without children are likely to have the highest demand on public services compared with other migrants due to their particular circumstances and levels of need.
6.3 Numbers of asylum seekers compared with other migrant groups are quite small but the impact is in concentrated areas. In the East Midlands, there are 1836 supported asylum seekers (Home Office Dec 2013). The numbers of asylum seekers dispersed in supported Home Office accommodation has risen by 401 since December 2012, a percentage increase of 30% against a national increase of around 18%. The current dispersal areas for asylum seekers in the East Midlands are the cities of Derby, Leicester and Nottingham.
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6.4 Newly arrived migrants are more likely to access the private rented sector for accommodation and there is evidence that this is causing pressure on the lower end of the housing market, e.g. increase in rent levels.
6.5 The impact of migration is felt more acutely in local areas that do not have previous experience of significant inward migration. The nature and impact of migration changes over time as migrants integrate and move to other areas.
6.6 Available evidence on crime suggests that broadly being a migrant has little effect of the experience of crime either as a perpetrator or victim.
6.7 There is some support for the view that asylum seekers, refugees, low skilled migrant workers and their dependents challenge social cohesion, the report acknowledges that deprivation and population churn are also factors.
6.8 In terms of the labour market the report identifies the positive impact of both highly skilled and low skilled migrant workers in filling gaps in the labour market and entrepreneurial business activity. It also highlights the potential for migrants labour to displace non-migrant labour from the labour market (particularly in respect of highly skilled workers) and also the potential to lower wages at the local level amongst the lowest paid groups.
7. Impacts of Migration on UK Native Employment: An Analytical Review of the Evidence
7.1 The Home Office and Department for Business Innovation and Skills have recently published the above report which reviews the evidence around the impacts of migration on the employment of existing UK native workers. The purpose of the review, carried out by government analysts, has been to consider comprehensively the evidence in this area and to reconcile the wide-ranging conclusions from the economic literature, in order to set out the agreed cross- government view.
7.2 Importantly, it is recognised that the impacts of migration on the labour market depend on a range of factors that vary over time, and therefore the impact of migration on the labour market cannot be condensed to a ‘one size fits all’ answer.
7.3 It is difficult to predict the impacts of future migration on native employment with any great degree of certainty. However, government analysts nonetheless must make an informed judgement based on existing evidence in order to provide robust advice on government policy. To this end, the conclusions below
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summarise the government analysts’ view of the evidence to date, which they will employ in making that judgement in the future, according to the economic and wider context.
. Overall, the assessment is that there is relatively little evidence that migration has caused statistically significant displacement of UK ‘natives’ from the labour market in periods when the economy has been strong. However, in line with some recent studies, there is evidence for some labour market displacement in recent years when the economy was in recession. . Displacement effects are also more likely to be identified in periods when net migration volumes are high, rather than when volumes are low – so analyses that focus on data prior to the 2000s are less likely to find any impacts. In addition, where displacement effects are observed, these tend to be concentrated on low skilled natives. . This suggests that the labour market adjusts to increased net migration when economic conditions are good. But during a recession, and when net migration volumes are high as in recent years, it appears that the labour market adjusts at a slower rate and some short-term impacts are observed. . To date there has been little evidence in the literature of a statistically significant impact from EU migration on native employment outcomes, although significant EU migration is still a relatively recent phenomenon and this does not imply that impacts do not occur in some circumstances. . The evidence also suggests that where there has been a displacement effect from a particular cohort of migrants, this dissipates over time – that is, any displacement impacts from one set of new arrivals gradually decline as the labour market adjusts, as predicted by economic theory.
8. No Recourse to Public Funds
8.1 During 2012/13 East Midlands Councils conducted a research project into the extent of people supported with No Recourse to Public Funds (NRPF). The report published in May 2013 found that for the 2012/13 year there were 877 NRPF people supported by local authorities in the East Midlands at a cost for accommodation and subsistence alone of just over £1.6 million. This compares with the 4000 NRPF people reported across all of England in 2008.
8.2 The numbers are summarised below:
. 353 Third Country nationals 272 families with children 81 single adults . 524 EEA nationals
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427 families with children 97 single adults.
8.3 A distinguishing feature of the 427 NRPF EEA families with children was that 388 of them have been supported by Derby City Council. Most are believed to be Slovak or Czech Roma.
8.4 NRPF has become increasingly important to local government because the numbers of NRPF people becoming destitute are increasing. This is now imposing a significant cost on local authorities.
8.5 Local government is in an unenviable position in relation to NRPF people; it is required to support destitute people but has little influence on either mitigating the circumstances of their destitution or their numbers. This is the responsibility of the Home Office for third country nationals. As a result the opportunities for local government to reduce cost, short of major policy changes, are limited to the margins.
8.6 The majority of costs borne by local authorities in supporting NRPF people are incurred through providing accommodation for families with children; but the highest individual costs are incurred by a very few NRPF single adults with complex and long term needs such as those with mental health issues or rough sleeping.
8.7 Local Authorities have real concerns that a significant portion of the costs met by local authorities for NRPF Third Country nationals are caused by the slowness of the Home Office in resolving cases. Since the report’s publication Leicester City Council has signed up to the national NRPF network’s NRPF Connect database enabling data sharing on cases between the local authority and the Home Office. Early feedback suggests that this has reduced the time taken to resolve cases. Another local authority in the East Midlands is in the process of signing up to the database.
8.8 There is concern highlighted by some partners in the voluntary and community sector regarding the apparent arbitrary nature of some decisions made by local authorities that appear to interpret the law in different ways. To support clarity, some local authorities, e.g. Nottingham City Council, have published a protocol on its support NRPF cases.
8.9 East Midlands Councils has provided training for 28 frontline staff on Human rights assessments for children and adults and a programme of advanced training is planned. The training is supported by funding from the Home Office.
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8.10 The numbers and costs of NRPF people supported by local authorities in the East Midlands have risen rapidly since the previous research in 2009-10. This issue is challenging for local government and needs to be managed in a partnership with both the Home Office and the voluntary and community sector. With increasing pressure on local authority budgets it cannot be an open ended cheque met by local government.
9. Recommendations
Members of East Midlands Councils are invited to:
9.1 Support the completion of a review into migration in the East Midlands as the basis for further engagement with Government and partners.
9.2 Note recent migration trends, direct the review going forward and to highlight any specific issues of concern.
9.3 Support the Chair of the SMP in writing to the Immigration Minister to highlight concerns with proposed grant ‘conditions’, as suggested in paragraph 2.5.
Cllr Paul Kenny Chairman Strategic Migration Partnership Board
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Executive Board Meeting 21st March 2014
Regional Review – Health in the East Midlands
Summary
The following paper proposes a review into health, as suggested by Members in previous discussions relating to EMC Business Plan 2014-15. It is suggested that this review is led by a task and finish group and undertaken jointly with MPs in consultation with key partners, e.g. Public Health England.
The report provides a summary of the proposed approach and invites Members to provide a steer on specific issues that should be focused upon as part of any agreed review.
Recommendations
Members of the Executive Board are invited to:
. Endorse the establishment of task and finish group to deliver a health review in line with Business Plan commitments.
. Consider and discuss key issues that should be included as part of the review as the basis for the subsequent development of agreed terms of reference.
. Consider and, if appropriate, propose a lead member from within its membership to chair this review.
. Delegate to the Management Group and the chair of the review task and finish group the responsibility to agree the terms of reference.
. Direct that a draft final report be considered by the Executive Board at its meeting on 19th September 2014.
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Proposed Joint Health Review
1. Introduction
1.1 In previous discussions with the full EMC membership on 7th March 2014, and with MPs through the APPG EM, support was highlighted for proposed joint work between councils, MPs and partners on health matters.
1.2 In addition to this support, Members specifically highlighted that health; the impact of new roles and responsibilities on local authorities, and disparity in health outcomes for the local community, should be a focus of EMC work (and reflected in the Business Plan) for 2014-15.
1.3 Given the shared interest in health issues, there is considerable potential for a joint ‘review’ that will deliver on the Business Plan commitments for policy develop and collective work and lobbying. It also provides an invaluable opportunity to engage the wider membership, MPs and partners in this important issue.
1.4 However, in undertaking any work, MPs, councillors and other partners should be clear on the objectives of the work, and its mandate for undertaking any review
1.5 Any proposed work will be led by local councils and complement the work already undertaken by local health scrutiny committees and health and wellbeing boards. The focus of the proposed review should be where a collective approach ‘adds value’ and will support the consideration of issues that are of joint interest to councils, MPs and wider partners.
2. The Basis for a Joint Review
2.1 EMC Members and MPs have both expressed an interest in undertaking a review on health matters in the East Midlands. The importance of the issue, and relevance to EMC work, was emphasised at the EMC meeting on 7th February 2014.
2.2 MPs have expressed an interest in working with EMC on this issue with a proposed joint ‘summit’ suggested for September 2014 in Westminster.
2.3 At the regional level, there is a locus (generally, or at least in part) between the geographical focus (and structures) of NHS organisations that cover, commission or provide services across the East Midlands region, e.g. NHS Midlands and East, East Midlands Ambulance Service and Clinical Commissioning Groups.
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3. The Proposed Focus for a Joint Review
3.1 Seek to develop an understanding of the key issues relating to health issues in the region and contribute to the development of policy to improve health and reduce health inequalities.
3.2 There are specific health issues of relevance across the East Midlands with the review offering an opportunity to consider health outcomes and the levels of health spending in the East Midlands compared to other regions. For example, the East Midlands covers areas with a number of challenging health outcomes including comparably high levels of smoking related deaths, obese children and adults; alongside comparably low levels of physical activity and life expectancy. However, the latest (HM Treasury) data shows that expenditure per head in the East Midlands is only 92% of the levels for England.
3.3 The performance of East Midlands Ambulance Service continues to cause concern; EMAS has failed to meet successive national targets for patients involved in life threatening emergencies, with response times in some localities being particularly poor.
3.4 Alongside this, there has been considerable change to the structure and delivery of health services. Local authorities have regained responsibility for public health as part of the health and social care reforms introduced in April 2013. In addition, the establishment of Health and Well-Being Boards bring together clinical commissioning groups and councils to develop a shared understanding of the health and wellbeing needs of their local communities.
3.5 As part of this review, there is potential to consider the public health responsibilities of local authorities through highlighting examples of good practice and identify priorities for the Government and/or its agencies, i.e. Public Health England, to respond to.
4. Role of the Task and Finish Group
4.1 The role of the task and finish group would be to consider the matters referred to it through the agreed terms of reference.
4.2 Its primary role would be to lead the review and provide a final report with clear and achievable recommendations for the consideration and agreement of Executive Board and the full meeting of EMC.
4.3 It is proposed that the Chair of this Task and Finish Group is an Executive Board member.
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5. Recommendations
Members of the Executive Board are invited to:
5.1 Endorse the establishment of task and finish group to deliver a health review in line with Business Plan commitments.
5.2 Consider and discuss key issues that should be included as part of the review as the basis for the subsequent development of agreed terms of reference.
5.3 Consider and, if appropriate, propose a lead member from within its membership to chair this review.
5.4 Delegate to the Management Group and the chair of the review task and finish group the responsibility to agree the terms of reference.
5.5 Direct that a draft final report be considered by the Executive Board at its meeting on 19th September 2014.
Stuart Young Executive Director
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Executive Board Meeting 21st March 2014
Economic Growth & Investment in the East Midlands
Summary
This report summarises work undertaken by EMC in partnership with MPs, member councils, LEPs and wider partners to promote economic growth & investment in the East Midlands.
In addition it proposes that EMC supports Derby as the preferred location for the High Speed Rail College and sets out the basis for an EMC response to the East Midlands Airport Sustainable Development Plan consultation.
Recommendation
Members of Executive Board are invited to:
. Endorse efforts to establish an ‘HS2 Programme Board’ for the East Midlands. . Agree to support Derby as the preferred location of the proposed High Speed Rail College and to make a response to the public consultation led by BIS to this effect. . Agree a response to the East Midlands Airport Sustainable Development Plan consultation based on the principles set out under section 5 of this report. . Endorse proposals for further joint working with the East Midlands APPG and efforts to secure the delivery of strategic infrastructure priorities.
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1. Background
1.1 This report summarises work undertaken by EMC in partnership with MPs, member councils and other to promote economic growth & investment in the East Midlands. In addition it proposes that EMC supports Derby as the preferred location for the High Speed Rail College and sets out the basis for an EMC response to the East Midlands Airport Sustainable Development Plan consultation.
2. Joint Working with the East Midlands APPG & LEPs
2.1 Following the successful joint meeting of council leaders, MPs and LEP chairs in Westminster on the 10th of December 2013, a programme of further joint work is now proposed focussing on three main areas
. LEP Strategic Economic Plan Priorities (7th April 2014) . Migration on the East Midlands (June 2014) . Health (September 2014)
2.2 The meeting on the 7th April will brief MPs on the Strategic Economic Plans developed by LEPs across the East Midlands, which will be used by Government as a basis for agreeing Local Growth Deals. Further context is provided by BIS, as set out in Appendix 9(a) of this report. The objective will be to highlight a limited number of common priorities as a basis for a concerted collective campaign in Parliament in the period up to the summer recess.
2.3 Rowena Limb, Area Director, BIS East Midlands and South East Midlands will update Members on recent developments in respect to Local Growth Deals.
3. European Funding in the East Midlands (2014-2020)
3.1 Following the publication of Meeting Need-Realising Opportunity as part of EMC’s EU Technical Assistance Project in December 2013, EMC has been working with DCLG and BIS to take forward identified priorities, in particular opportunities for collaborative working in key sectors where the East Midlands has a competitive advantage. The first such event, ‘Fast Track to Growth’, aimed at the midlands rail engineering sector, took place at the Roundhouse in Derby on the 26th February 2014. Over sixty representatives of local companies, the FE/HE sector and business support organisations attended. A full report from the event is currently being drafted and will be circulated to all those that attended as well as to LEPs and other key decision makers.
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3.2 Similar events are now planned for the high performance engineering, food technology and energy sectors in the period up to the end of June 2014. In addition, EMC will work with One East Midlands to produce a comprehensive ‘lessons learned’ document based on the experience of current EU Structural Fund Programmes.
4. HS2 Phase 2
4.1 The response to the HS2 Phase 2 consultation agreed at the last Executive Board (set out in Appendix 9(b)) represents an agreed collective negotiating position for councils to shape the implementation of the project, assuming that it progresses in the way currently proposed by Ministers. A Government decision on the preferred line of route and station location is expected before the end of 2014. Any significant changes may require a further round of public consultation, but the revised proposition will form the basis for the development of a second hybrid bill due in 2017.
4.2 In the meantime the new Chief Executive of HS2 Ltd, David Higgins, has been asked to examine ways in which the costs for building HS2 can be reduced. His report is likely to be published on the 17th March 2014 and will consider a range of alternatives, including the potential to reduce costs by speeding up construction.
4.3 HS2 Ltd will be holding its next Board meeting in Nottingham on the 20th March 2014, to which a number of council leaders have been invited to attend. The meeting will be preceded by an evening reception hosted by Cllr Jon Collins as Chair of EMC. The HS2 Board meeting presents an opportunity for council leaders and LEP chairs to demonstrate the strategic leadership that will be required to maximise the economic benefits of HS2 in the East Midlands.
4.4 In Birmingham, Manchester, Leeds and Sheffield, local partners have moved to establish high level ‘Programme Boards’ to help shape the HS2 proposition with Government and to align local planning and investment decisions in ways that maximise the economic benefits HS2 to local communities. These structures will present opportunities to influence Government not currently available to local partners in the East Midlands and give Government and HS2 Ltd a clear focus for strategic engagement as the project progresses. Following discussions with HS2 Ltd and the Department for Transport, EMC has been working with relevant councils to develop a similar arrangement for the East Midlands based on the draft proposals set out in Appendix 9(c).
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4.6 The Department of Business, Innovation and Skills (BIS) have launched a public consultation on a preferred location for the proposed High Speed Rail College, which will be established to ensure that the UK has sufficient trained engineers, designers and construction workers required to build HS2. EMC first raised the principle and location of such a college during the visit of Lord Deighton to Loughborough on the 15th February 2014, highlighting in particular strengths of the Derby area both in terms of the skills base and the quality of local academic institutions. It is therefore proposed that the Executive Board resolves to formally support Derby’s bid to host the High Rail Speed College. The closing date for representations is 30th April 2014.
5. East Midlands Airport
5.1 East Midlands Airport (EMA) is a major economic driver for a large part of the East Midlands, employing 6,730 people and generating £239 million of GVA per year. In recent years EMA has focussed on the low-cost passenger market and freight - becoming the UK’s largest pure cargo airport, major air-mail hub and leading express freight airport.
5.2 Although originally established in 1965 by a consortium comprising Derbyshire, Leicestershire and Nottinghamshire County Councils and Derby and Nottingham City Councils, EMA is now owned by the Manchester Airport Group (MAG). MAG has two principal shareholders: Manchester City Council and IFM Investors, a private sector investment company. As well as Manchester and EMA, MAG also owns Stansted and Bournemouth Airports.
5.3 The 2006 EMA Masterplan, developed in the context of the 2003 Aviation White Paper, envisaged EMA handling up to 10 million passenger and 1.2 million tonnes of cargo by 2030. However expected levels of growth have been reduced by the recent economic conditions, and in 2013 EMA handled 4.3 million passengers and 0.3 million tonnes of cargo. There has also been a reduction in the level of scheduled passenger flights to a number of key European destinations.
5.4 Despite this recent performance, the draft EMA Sustainable Development Masterplan published for consultation on the 4th March 2014 maintains the growth aspirations of the 2006 document. The Draft Masterplan also makes reference to the proposed development of the Roxhill Inter-modal Freight Interchange and HS2 (which is proposed to tunnel under both the Airport and Roxhill). The Draft Masterplan sets out revised targets for public transport access to EMA, but rules out a fixed public transport link based on joint research carried out back in 2006. It also highlight’s EMAs commitment to the development its local workforce through the establishment of the ‘Airport
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Academy’ in 2013, which provides pre-employment training and a recruitment service for local jobseekers.
5.5 Relevant member councils are better placed to respond to the local environmental issues raised by the Draft Masterplan than EMC. From the strategic economic perspective, the key concerns relates to maximising the potential of the EMA to benefit local economies and communities across the East Midlands. As a result, it is proposed that EMC makes a response to the masterplan consultation based on the following principles:
. EMA will not realise its full potential as driver of local economic growth by focussing on low cost passenger flights and freight alone. MAG should have a clear priority on maintaining and expanding the range of scheduled flights from EMA to key European destinations, particularly for business related travel.
. MAG should maintain and develop the network of bus routes servicing the EMA to encourage greater public transport access, but also review opportunities for a fixed public transport link to EMA in the light of the HS2 and Roxhill developments.
. Efforts by MAG to support the development of the local workforce through the establishment of an ‘Airport Academy’ are strongly supported and should be expanded.
6. Other Infrastructure Investment Priorities
6.1 An update on other infrastructure priorities previously identified by the Executive Board is set out below.
6.2 The Upgrade & Electrification of the Midland Main Line (including Market Harborough Enhancement) Network rail are continuing to undertake preparatory works for the upgrade and electrification of the Midland Main Line. In addition, following pressure from EMC and a number of member councils, Network Rail are now taking forward a study to assess the costs and benefits of an a enhancement scheme in the Market Harborough area to improve track alignment and station facilities and potentially deliver a freight loop. An initial meeting to agree the scope took place on the 14th February and technical work is now underway. In the meantime, the initial business case analysis undertaken by Nottinghamshire County Council back in 2011 has been made available to the Network Rail and the relevant LEPs to inform Strategic Economic Plan submissions.
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6.3 Castle Line (Lincoln – Newark -Nottingham) EMC convened a member summit of relevant councils hosted by Newark & Sherwood District Council on the 4th March 2014 to discuss proposals for securing improvements to the rail corridor. The meeting received a presentation from Network Rail on the potential for infrastructure enhancements. It was made clear that such enhancements (as opposed renewals) would require a commitment to increase rail services. Nottinghamshire County Council outlined the results of a business case analysis for a service enhancement which indicated a benefit to cost ratio of over a 30 year period of between 1.59 (base case) and 1.84 (including an assessment of the economic impact of planned housing and job growth around North Hykeham Station). It was noted that an enhanced service would help to promote attendance at the Magna Carta 800 Exhibition at Lincoln Castle and the National Civil War Museum in Newark, both due to open in 2015. It was agreed to progress a joint bid through the Strategic Economic Plan submissions of both the D2N2 LEP and Greater Lincolnshire LEP with support from relevant councils to secure the initial revenue support required.
6.4 A5 Corridor (Northamptonshire to Staffordshire) Following a review of all existing Enterprise Zones (EZs) by DCLG, MIRA in Hinckley & Bosworth has been identified as one of five EZs that have particularly high job growth potential and which should be given additional Government support as a result. This priority has given added impetus to efforts to secure improvements to the A5. DCLG have asked that local partners, the HCA and the Highways Agency form a ‘multi-agency task group’ to develop proposals for major enhancements to the A5 between the A42 and the M69 by the summer of 2014, as potential input into the Chancellor’s 2014 autumn statement.
6.5 East Coast Mainline Franchise EMC met with a representative of the Keolis/Eurostar consortium, one of the three bidders for the East Coast Mainline Franchise, on the 10th March 2014. The importance of increasing direct services between Lincoln and London via the East Coast Main Line was highlighted, along with improving service patterns at Grantham, Newark & Retford. A further meeting is planned also involving relevant member councils and LEPs before the formal submission of tenders. As yet, EMC has not been approached by either of the other two franchise bidders.
7. Recommendations
Members of Executive Board are invited to:
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7.1 Endorse efforts to establish an ‘HS2 Programme Board’ for the East Midlands.
7.2 Agree to support Derby as the preferred location of the proposed High Speed Rail College and to make a response to the public consultation led by BIS to this effect.
7.3 Agree a response to the East Midlands Airport Sustainable Development Plan consultation based on the principles set out under section 5 of this report.
7.4 Endorse proposals for further joint working with the East Midlands APPG and efforts to secure the delivery of strategic infrastructure priorities.
Andrew Pritchard Director of Policy & Infrastructure
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Local Growth Deals
Summary and next steps
What does Government expect Growth Deals to deliver?
Government wants local leaders to use their biggest advantages - local knowledge and the ability to join up programmes in places - to deliver better economic growth outcomes. A growth deal should be focused on cutting through the barriers that stand in the way of those better growth outcomes. Deals should also be based on the principle of ‘something for something’. When it comes to economic growth we want places to be ambitious, to take risks and to work in true partnership across functional economic areas. The challenge will be to:
pool local investment across administrative boundaries and make the best use of local assets and land;
prioritise economic growth against other pressures, such as wider service delivery, and in the face of local political tensions;
put stronger area governance in place to provide more certainty for business and investors;
implement reforms to local public services such as planning to underpin growth priorities;
support the delivery of nationally important growth objectives.
The process – timetable and decisions
31st March Submission of Strategic Economic Plans
April - May Initial government assessment of SEPs, preliminary ministerial advice. The process is expected to be an iterative negotiation and there will be an opportunity for clarification before the end of May. This will cover both bids for Local Growth Fund and requests for Government freedoms.
Mid July – Growth Deal announcements (before recess)
Funding available for LEPs through the Local Growth Fund (2015/16)
Source £ Million 2015/2016 Capital Revenue Allocated Competitive Total Local Major Transport 819 570 249 819
Funding Local Sustainable Transport 100 100 100 Fund
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Integrated Transport Block 200 200 200 Further Education Capital 330 330 330 European Social Fund Match 170 170 170 New Homes Bonus (London) 70 70 70 RGF Round 5 50 50 50*** RGF – allocated to 15/16 63** 63 63 Housing Revenue Account 150 150 150 borrowing Large Sites funding 50 50 50 Total LGF 1699 303 873 1129 2002
Via ESF match opt-in, i.e. if LEPs opt into SFA support through their EU Strategic Investment Fund. **Not all revenue – will provide detailed breakdown of allocated projects in due course. *** Additional £50 million agreed for 16/17
Things you might want to consider before submitting your SEP and in negotiation:-
Don’t just bring out old projects, be innovative, think wider than LEP boundaries if it will improve deliverability or impact.
Link any projects to the overall strategy, show evidence of need, where / how the projects will make a real difference
Show how you have prioritised what you are asking for; tell us what you could do with less money and how you have thought about revenue costs.
Asks of government – be specific about how different ways of working would help, be ambitious in your asks, how will they enable you to deliver better?
Be clear about what you would offer Government in return for any freedoms and flexibilities. This is a deal.
Have you linked your European thinking to the wider strategy, the projects you want funding and your freedoms?
What is the LA role? Are you offering a stronger and more binding way of making decisions.
Can you demonstrate a strong track record or delivery?
A new team has been established drawing together Cities Policy Unit, Local Growth from BIS and DCLG and BIS Local to support LEPs in developing their bids, negotiating with Government and supporting delivery of the deal.
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Annex A shows this team and its relationship to the wider decision making process.
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HS2 Consultation Response from East Midlands Councils
Agreed by the EMC Executive Board on 6th December 2013
Key Principles
The decision to proceed with the development of HS2 can only be made by Parliament in the national interest, based on the most robust and up to date assessments of cost, value for money, economic and environmental impacts. It is noted that a final decision to proceed with the eastern leg of HS2 will be made in the next Parliament through a hybrid bill process.
Assuming the next Parliament does decide to proceed with the Eastern leg of HS2, including a new East Midlands Hub station at Toton, then the following principles should be applied to its development to ensure that the economic potential of the scheme for both the East Midlands and the country as a whole is fully realised:
. Nil detriment to existing plans to upgrade and electrify the Midland Main Line, including enhancements at Derby, Leicester & Market Harborough; . Use of existing rail capacity released by HS2 to improve services at stations across the East Midlands; . Adverse environmental impacts of the line and new Hub Station should be avoided where possible, or minimised and mitigated through excellent design; . Full compensation for people and businesses who are adversely effected by the new line and Hub Station at the earliest opportunity; . Development of high quality 'classic rail' services between the new Hub Station and the city centres of Derby, Leicester & Nottingham; . Effective connectivity between HS2 and existing rail lines, including the option to run ‘classic compatible’ trains from Derby, Nottingham and Leicester on HS2; . Maximum access to the new Hub Station by tram, bus, walking and cycling; . Minimum impact of the new Hub Station on local and strategic roads; . Ensuring that rail engineering and construction companies based in the East Midlands have a fair opportunity to win contracts to build the new line and rolling stock; and . Ensuring that local people have the skills to access the full range of design, engineering and construction jobs that will be created during the delivery of the project.
These principles have used to inform the detailed responses to the questions set out in the consultation document relevant to the East Midlands.
Regardless of the decision on HS2, East Midlands Councils strongly supports the expansion of the inter-city rail network to meet the projected demand for long
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distance rail travel (which has doubled over the last 15 years) and to promote local economic growth as part of a balanced approach to national and local transport investment.
Q4: The Route & Supporting information
Do you agree with the Government’s proposed route between West Midlands and Leeds?
The proposed route through the East Midlands follows for the most part the established transport corridors of the M42/A42 and the M1, which will help to limit adverse impacts on local communities and environmental assets.
The decision to extend the tunnel under East Midlands Airport, to enable the proposed inter-model freight terminal (known as the Roxhill development) to proceed if it secures development consent through the national infrastructure planning regime, is strongly supported.
However, there will still be adverse impacts along the proposed route that will need to be avoided, or minimised and mitigated through the detailed design process.
Underpinning the approach to route and station development should be a commitment to excellent design and community consultation. It is vital to its success that HS2 in the East Midlands seen as an exemplar major infrastructure scheme both locally and nationally. The East Midlands architecture centre, OPUN, has an excellent track record of working with councils, developers and communities to deliver sympathetically designed new development and could play a valuable role in achieving this objective.
In terms of the potential impact on communities, noise and severance are the major concerns.
Whilst it is accepted that the line will be built to a significantly higher engineering standards than the existing Victorian network, the trains will also be running much faster. The detailed design of the route must therefore utilise all available noise abatement technologies, including noise barriers and improvements to train aerodynamics and electric transmission, to minimise the impact on both homeowners and businesses and on the tranquillity of the countryside.
Long Eaton is already subject to severance from the Midland Main Line, and there are several level crossings within the town. The addition of HS2 should be used as an opportunity to address existing severance problems and to create safe routes across both lines for vehicles, cyclists and pedestrians.
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There are also particular challenges in the Chesterfield area, where the proposed line of route has the potential to impact on a number of regeneration opportunities and the re-instatement of stretches of the Chesterfield Canal. Further ongoing dialogue will be required with relevant councils and business to ensure that the final route maximises the potential for regeneration and job growth.
Elsewhere, individual councils are well placed to highlight other locations where the proposed line cuts across local roads, bridleways and footpaths used by communities to access services, move livestock and farm produce or for recreational purposes. Extensive consultation with councils and communities will be required to understand local patterns of movement and to develop mitigating solutions acceptable to local people.
As highlighted in the Appraisal of Sustainability, there will be natural and heritage assets placed at risk of damage by the proposed route. The Government should ensure that these risks are avoided where possible, or failing that minimised and mitigated, and that the new line is integrated as far as possible into the landscape through the use of sympathetically designed cuttings and tunnels.
This will be particularly important in the Bolsover area of Derbyshire where the line of route, like the M1, runs close to the Grade 1 listed Hardwick Hall and the associated Grade 1 listed Registered Park & Garden. The route is likely to have a detrimental impact on the setting of these assets without appropriate mitigation.
Whilst most of the route in the East Midlands will be at or below ground level (either in cuttings or tunnels), there will be bridges, stretches of embankment and where the line crosses the flood plains of the River Soar & River Trent, the track will be raised onto long viaducts. These viaducts in particular have the potential to be highly visually intrusive and detrimental to landscape character, but could also be iconic structures if well designed and sympathetically integrated into the landscape.
Experience from other major infrastructure schemes, including HS1, indicates that there is potential for environmental enhancements through planting, landscaping and habitat creation. Opportunities should be taken to improve local biodiversity over and above the current situation in line with local and national habitat management and re-creation objectives, rather than just replacing what has been lost. The Government should also work with landowners to ‘pre- mitigate’ where possible, through implementing landscaping and planting schemes that will have time to mature before the line is constructed.
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Q5: Proposals for Stations c: Do you agree with the Government’s proposals for an East Midlands station to be located at Toton as described in Chapter 8?
Analysis undertaken by HS2 Ltd indicates that a Hub Station at Toton (with both HS2 & classic rail access) is capable of serving a larger population than any single city centre station location in the East Midlands.
Research commissioned by Nottingham City Council, Broxtowe Borough Council and Derbyshire and Nottinghamshire County Councils and undertaken by Voltera Ltd has indicated that there is potential for significant local economic benefits resulting from the development of the Hub Station. This analysis is consistent with the conclusions of the HS2 Ltd commissioned KPMG Study on the wider economic benefits of HS2, which indicated that the Derby-Nottingham area could see a rise in GVA of between £1.1 and £2.2. billion per year (depending on the size of the national economy at any given time).
However, in order for the passenger and economic benefits of the Hub Station to be fully realised, it must be of an excellent design standard and fully integrated into the public transport and road network. In particular, the following conditions must be met:
. Effective direct heavy rail access to the city centre stations at Derby, Leicester and Nottingham. It would be unacceptable to serve the Hub Station by diverting existing cross county rail services (such as the Liverpool-Norwich service), which will lead to overcrowding, delays and poor passenger experience. Ongoing research led by Network Rail has indicated a range of alternative options for how the Hub Station could be served by heavy rail. This work should be used as a basis for further engagement with councils, the rail industry and other stakeholders.
. Potential to run ‘classic compatible’ trains on both HS2 and the Midland Main Line. This would widen connectivity between existing stations in the East Midlands and the north and west of England (making use of spare capacity on HS2 north of the junction at Water Orton) and enable the development of a ‘regional high speed network’ to complement the London services. This would radically improve a range of journeys that are currently very difficult to make by rail, but for which Network Rail’s Long Distance Market Study indicates there is strong latent demand. For such movements to be possible there must be a direct link between the Midland Main Line and HS2, allowing some trains to run on both lines.
EMC with support from a number of Local Transport Authorities commissioned Arup to undertake a technical and economic assessment of a
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number of options to link HS2 with the MML (‘HS2 Direct Connections Study Outline Business Case’, December 2013, copy enclosed). The study has demonstrated the scale of latent demand between cities across the midlands and north, in particular between Nottingham and Birmingham, and has concluded that a number of such linkages are not only feasible, but would add to the overall business case for HS2. The most straight forward option is to build linkages at the Hub Station, where the HS2 and MML tracks run in parallel and in close proximity. This would allow direct connectivity from Derby, Leicester and Nottingham to Leeds and the north east of England, giving journey time between Leicester and Leeds of less than 50 minutes, and between both Derby and Nottingham and Leeds of less then 40 minutes. The cost of such linkages would be marginal if built into the final design of the Hub Station.
The addition of the southward facing chord linking the MML and HS2, either to the south of the Hub-Station or to the north near Trowell, would allow direct connectivity between Nottingham and Birmingham with a journey time of less than 30 minutes. It would also significantly increase connectivity between Lincoln, Newark and Birmingham. Both chord options would require a heavy engineering solution and neither would be cheap. However the scale of latent demand for such journeys is such that the long term economic benefits are likely to significantly out-weigh the costs, and consequently one of the chord options should be taken forward into the final HS2 proposition.
Finally, the Arup study indicates there is potential for a linkage at Killamarsh (south of Sheffield) at modest cost which would improve connectivity from both Derby and Chesterfield, and this should be actively considered as part of the final HS2 proposition.
. Effective access to the Hub Station from the A52. There have been a number of proposals for major developments on the Toton site over the last 20 years, including an inter-modal freight terminal. However, access from the A52 has never been resolved to the satisfaction of the Highways Agency. It will be important to develop a credible scheme at an early stage which is also acceptable to local people, relevant councils as well as the Highways Agency. The Arup study indicated that the addition of direct connectivity between HS2 and the MML has the potential to reduce the scale of highway improvements required to serve the Hub Station.
. Effective access to the Hub Station by tram. The Government is already planning to extend Phase 2 of the Nottingham Express Transit (NET) to terminate at the proposed Hub Station. There is also the potential to extend NET into Long Eaton, giving high quality public transport access to the Hub Station for the people and businesses of the town. Whilst this further extension would be up to local partners to fund if a sufficient business case
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can be demonstrated, the terminus at the Hub Station should be designed in such a way as to make a further extension technically feasible. In practice, this would mean terminating NET above the station, with escalators and lifts to enable passenger to descend to the HS2 platforms, similar to the arrangement currently under construction at Nottingham Station.
. Effective local access to the Hub Station. In addition to NET access to the Hub Station, there must be provision for appropriate local road access for local busses and taxis and for cyclists and pedestrians in the immediate localities of Toton, Stapleford and Long Eaton. Although the Hub Station will be a regional facility it will have very significant local impacts and it is vital that it is fully integrated into the existing urban fabric, rather than functioning as an alien structure unrelated to surrounding communities.
Q7:Appraisal of Sustainability
Please let us know your comments on the Appraisal of Sustainability (as reported in the Sustainability Statement) of the Government’s proposed Phase Two route, including the alternatives to the proposed route as described in Chapter 9
The Appraisal of Sustainability is a high level document which has been primarily used to inform consideration of alternative lines of route. As such it is generally of an appropriate standard of detail and scope.
However, in developing and refining the proposed line of route to a level required by a future hybrid bill, much more detailed information and analysis will be required, working closely with councils, local communities and amenity groups. Experience from other similar projects suggests that the quality of the outcome will be dependent on the level and quality of such engagement.
Q 8: Freed Capacity
Please let us know your comments on how the capacity that would be freed up on the existing rail network by the introduction of the proposed Phase Two route could be used as described on Chapter 10.
The single biggest potential transport benefit from the development of HS2 in the East Midlands is the ability to re-allocate capacity from the increasingly overcrowded classic rail network to better serve existing stations.
Long distance rail travel has doubled over the last 15 years and has continued to grow despite recent adverse economic conditions and above inflation fare
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increases.
The Long Distance, Freight and Regional Market Studies produced by Network Rail have all indicated that rapid passenger and freight growth will continue over the next 30 years under all foreseeable economic scenarios.
The Network Rail commissioned study on released capacity (Better Connections: Opportunities for the Integration of HS2) sets out a range of different approaches for how it could be allocated. In relation to the Midland Main Line, the study concluded that there was no case for reducing the number of train paths to London post HS2. In relation to both the East Coast and West Coast Main Lines, the study concluded that there were significant opportunities to reallocate services to better serve intermediate stations.
From an EMC perspective:
. capacity released from the Midland Main Line must enable further improvements to connectivity between Derby, Leicester and Nottingham and the northern ‘core cities’, and enhanced services for Chesterfield, Loughborough, Market Harborough, Corby, Kettering and Wellingborough;
. capacity released from the East Coast Main line must enable enhanced services for Retford, Newark, Grantham and Lincoln;
. capacity released from the West Coast Main Line must enable enhanced services for Northampton to both Birmingham and London;
The role of Leicester on the Midland Main Line will be particularly important post HS2. At the moment, the fastest train to London is 69 minutes and the services are in two bunches: at 25 and 33 minutes past each hour and at 55 and 57 minutes past the hour. Current and proposed improvements to the Midland Main Line (including electrification) should enable journey times to London to be reduced to below 60 minutes by 2019. The addition of HS2 should be used as an opportunity to re-orientate MML services around Leicester, resulting in an even ‘clock-face’ service, which would also benefit other stations along the line including Derby and Nottingham.
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East Midlands HS2 Programme Board
Function: To give strategic political leadership for the implementation of Phase 2 of HS2 in the East Midlands through high level liaison with the Department for Transport and HS2 Ltd, and by aligning decisions made by Derbyshire & Nottinghamshire Joint Committees, LEPs, and other relevant authorities.
Membership: Leaders of 3 city councils, 3 county councils, Broxtowe, Erewash, Chesterfield, Chairs of D2N2 & LLEP and MD of East Midlands Airport (tbc).
In Attendance: HS2 Ltd, DfT, BIS Local, Network Rail & Highways Agency
Chair: Cllr Jon Collins Vice Chair: Cllr Anne Western
Secretariat: EMC
Connectivity Working Economic Development Joint Planning (Advisory) Group Working Group Committee
Function: To prioritise and Function: To highlight Function: To develop a co-ordinate transport opportunities for business strategic planning policy investment required to growth and to prioritise framework for Toton station support HS2, and to act as investment in economic and associated a strategic reference group development and skills development across the for the resolution of HS2 required to maximise the Nottingham Core HMA line of route issues to economic potential of HS2. inform preparation of the Membership: Lead Hybrid Bill. Membership: CXs from Planning Members from D2N2, LLEP, SCRLEP, Nottingham City, Membership: Lead 6Cs Chamber of Nottinghamshire County, Transport Members from Commerce, Universities, Ashfield, Broxtowe, the 6 LTAs, Broxtowe & EMFEC, BIS Local, East Erewash, Gedling & Erewash, Ashfield, Midlands Airport, Roxhill Rushcliffe. Bolsover & NW Developments Leicestershire plus HS2 Chair: Broxtowe Borough Ltd, HA & Network Rail, Chair: D2N2 Council D2N2, LLEP, SCRLEP Secretariat: 6Cs Chamber Secretariat: Officer Chair: Nottinghamshire CC of Commerce Working Group
Secretariat: Officer Working Group HS2 Working Group
A flexible Member/Officer Working Group supported by Broxtowe Borough Council
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Executive Board 21st March 2014
Regional Employers’ Board Report
Summary
This paper updates Members on the recent work of East Midlands Councils’ Regional Employers’ Board.
Recommendations
Members of the Executive Board are invited to:
. Note this report. . To provide comments and feedback on the employment issues identified within the report to inform EMC’s input to future Employers’ meetings at Regional, National and European level.
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1. Introduction
1.1 The Regional Employers’ Board leads the development of employment issues and on councillor development; it forms the Employer’s side of the Regional Joint Council. This report updates members on the progress and work of the Board to date.
2. Background
2.1 At East Midlands Councils’ AGM 2013, Cllr Tom Beattie from Corby Borough Council was elected as Chair of the Employers’ Board with Cllr Ian Fleetwood from Lincolnshire County Council as Vice-Chair.
2.2 The Board is comprised of 15 members: . Cllr Tom Beattie - Corby BC (Chair) . Cllr Ian Fleetwood - Lincolnshire CC (Vice Chair) . Cllr Ken Savidge - North East Derbyshire DC . Cllr John Clarke - Gedling BC . Cllr John Burrows - Chesterfield BC . Cllr Simon Greaves - Bassetlaw DC . Cllr Dennis Kelly - Bolsover DC . Cllr Pat Lally - Broxtowe BC . Cllr Robert Parkinson - Erewash BC . Cllr Mary Malin - Kettering BC . Cllr Tony Roberts MBE - Newark and Sherwood DC . Cllr Terry King - Rutland CC . Cllr David Slater - Charnwood BC . Cllr Jeffrey Kaufman - Oadby & Wigston BC . Cllr Christopher Darcel - West Lindsey DC
3. Employers’ Board and Regional Joint Council Meetings
3.1 The Regional Employers’ Board had identified the following as the key areas of focus: . Implementation of the Living Wage . Zero-hour contracts . Relationship with CEEP UK/Europe . Creating jobs and youth employment . Blacklisting amongst contractors . Working together on terms and conditions
Progress made to date on these issues is summarised below.
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a) Living Wage
3.2 It is for each local authority to decide whether it wishes to pay the Living Wage, and accreditation with the Living Wage Foundation is voluntary. There has been growing interest and uptake, both regionally and nationally and focus has been heightened, given the joint trade unions’ link to the Living Wage within its pay claim for this year for Local Government Services staff.
3.3 At its meeting of 7th October, the Board received a report on the Living Wage and information on the uptake of the Living Wage amongst local authorities in the region. A presentation was received at the Regional Joint Council meeting on 2nd December from Bassetlaw District Council, to share their experience and any key lessons learned, having been given full accreditation from the Living Wage Foundation. Derbyshire County Council will be attending a future meeting to also share their experience and approach within an organisation of a larger scale.
3.4 EMC provides support and advice to local authorities on pay and rewards, including those who may be considering paying the Living Wage. It has recently assisted the LGA with a survey on the different ways local authorities have implemented the Living Wage and cost estimates. The findings have recently been circulated.
3.5 The Living Wage has been a significant agenda item at meetings of the National Association of Regional Employers (NARE), attended by the Chair and Vice-Chair of the Employers Board. This has been helpful in exchanging information across the country to then share with local authorities within our region and inform national guidance. b) Zero-Hours Contracts
3.6 The Employers Board considered a report on Zero Hours Contracts its meeting of 10th March 2014. The Board agreed a response to the Government’s consultation on proposals regarding the use of zero-hours contracts. The Board’s submission was in agreement to proposals for an employer-led code of practice, to include the fair use of exclusivity clauses and to promote transparency and clarify the rights and responsibilities of all parties to the contracts.
c) Relationship with CEEP UK/Europe
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3.7 EMC is a member of CEEP UK, which represents the interests of public sector employers at European level negotiations through its role in CEEP, which is a social dialogue partner.
3.8 EMC has continued its membership of CEEP UK and is seeking to maximise the benefits of membership and ensure that opportunities for influence are fully utilised. An example of this is my recent appointment to CEEP UK’s Executive Board.
3.9 With over 50% of regulations affecting local government stemming from the EU, the importance of effective influence is clear. The EU’s main forthcoming agenda issues of youth employment, equality, procurement and health and safety have particular relevance for local government.
3.10 CEEP UK participated in a European Commission stakeholder seminar on the skills challenge in London on 11th March 2014. The purpose was to discuss the issues surrounding youth unemployment in Europe, and what can be done to ensure that young people develop the right skills to succeed in the labour market. The meeting focussed on:
. Skills needs in the UK – enhancing employability, entrepreneurship and technical skills . The public perception of vocational education and training, both in the UK and elsewhere in the EU . Enhancing the quality of apprenticeships and engaging the professions . Promoting employer engagement throughout the system, to match training to skills needs and qualifications to durable employment.
3.11 EMC held a briefing event for Councillors on 13th March 2014 to provide them with information on how to maximise opportunities for EU funding and to gain influence at European level.
3.12 The Regional Joint Council met on 10th March 2014 and received a presentation from Unison on its Ethical Care Charter. The Charter is aimed at promoting higher standards in terms of the quality of care provision and the terms and conditions of care workers, with particular concerns regarding compliance with the National Minimum Wage (associated with non-payment of time for travel between care appointments) and misuse of zero-hours contracts. The meeting also received information resulting from joint working between trade unions and employers regarding migrant workers and activities to promote greater understanding.
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4. National Association of Regional Employers (NARE)
4.1 NARE brings together all of the regional employers’ organisations across the country to inform developments in local government employment and terms and conditions.
4.2 At its meeting of 18th March 2014, there will be a discussion concerning the implications for local authorities, including legal issues, of the Public Sector Network Security Checks required by the Cabinet Office. This will help to develop guidance and information to authorities in the region, which will be disseminated through EMC’s relevant networks.
5. National Employment Developments
5.1 The joint trade unions have submitted a pay claim for Local Government Services (“Green Book”) employees for 2014. The claim is for a minimum increase of £1 an hour on scale point 5 to achieve the Living Wage and the same flat rate increase on all other scale points. It has been estimated by the LGA that this would add 8.5% to the national pay bill in local government. East Midlands Councils hosted an event in December 2013 to provide an opportunity for local authorities to meet with national negotiators to inform this year’s pay negotiations. Feedback from this meeting was similar to that in other regions.
5.2 The national employers and trade unions will meet on 20th March to commence negotiations. This will be against the backdrop of the Low Pay Commission’s recommended increase in the National Minimum Wage of 3.0% (from £6.31 to £6.50) with effect from 1st October 2014. There will now follow a period of consultation amongst Government departments before a formal announcement is made on the National Minimum Wage. For reference, the lowest pay level in local government is currently £6.45, and a 1.0% pay award would increase that to £6.51. At the East Midlands Regional Joint Council meeting on 10th March 2014, the trade union side expressed their concern that the national minimum wage had caught up local government pay levels for lower paid workers.
5.3 CLG are proposing to remove the statutory requirement for a Designated Independent Person to be appointed to progress matters concerning the conduct or capability of Chief Executives, Monitoring Officers and s151 Officers. Since the last Executive Board meeting, CLG has published a proposal to replace this statutory provision, with a legal requirement that any decision to dismiss a Chief Executive, Monitoring Officer or s.151 Officer should be considered by a local authority’s remuneration panel before decision at full Council. National
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Employers are working with Regional Employers Organisations, such as EMC, to consider the proposals and to prepare guidance for local authorities.
6. Recommendations
Members of the Executive Board are invited to:
6.1 Note the contents of the report.
6.2 Provide comments and feedback on the key employment issues identified above to inform EMC’s input to future Employers’ meetings at regional, national and European level.
Cllr Tom Beattie Chairman Regional Employers’ Board
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Executive Board Meeting 21st March 2014
Regional Improvement and Transformation Board Report
Summary
This report provides Members an update on developments relating to the Improvement and Transformation Board.
Members have previously managed the formal closure of the previous RIEP programme and continue to advise on developments relating to this area of work.
Recommendation
Members of the Executive Board are invited to note the information contained within this report.
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1. Introduction
1.1 The Board, at the advice of the Executive Director, has not met since 28th November 2013. This was to allow sufficient time for the development of budget and business plan proposals that will provide the basis for future EMC work on improvement and transformation.
1.2 The Board prudently managed the RIEP-legacy programme and this has provided sufficient resources to support an EMC sponsored programme, at the discretion of Members. At the next meeting of the Improvement and Transformation Board officers will be directed to develop proposals to support the Board’s work in the delivery of the EMC Business Plan 2014-15.
2. Roles and Responsibilities
2.1 Members are reminded of the Boards’ revised roles and responsibilities previously endorsed by the Executive Board: . To oversee the development of new arrangements for sector-led improvement and transformation. . To advise the EMC Executive Board and wider membership on sector-led improvement, transformation and efficiency agendas. . To provide political leadership; influence the EMC Business Plan by ensuring the priorities of the sector are appropriately reflected; and overseeing a programme of work to deliver the strategic priorities set by EMC Executive Board. . To provide collaborative support and oversight to the development of sector performance information and intelligence. . In conjunction with the LGA, to work with councils in difficulty. . To maximise the opportunities for sector-led improvement and transformation activity across councils in the East Midlands, with particular focus upon adult and children’s services, public health/Health and Wellbeing Boards. . To build and maintain effective relationships with key stakeholders and, in particular, undertake all work in conjunction with member councils and/or the LGA. . To commission sector-led leadership/councillor development programmes and wider workforce development as part of the ‘improvement offer’.
3. Networks
3.1 EMC runs a number of networks that: . Support the sharing of best practice and information. . Inform the development and delivery of specific work programmes and events that can be offered on a regular basis to achieve efficiencies of scale and coordination.
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3.2 Members considered the priorities for transformation and improvement work of East Midlands Councils and the contribution of networks to the delivery of these. In effect, the networks managed by EMC should provide a means of delivering its strategic priorities.
3.3 The management of networks offer a means for the wider membership to directly inform the work of East Midlands Councils. There are a range of networks that EMC manages, some with the LGA, and these are both member and officer focused.
3.4 The importance of the following networks are, in particular, highlighted to Members: a) Lead Member – Adult Social Care b) Lead Member – Children’s Services c) Lead Members – Health and Well-Being d) Local Government Scrutiny
3.5 These networks reflect key areas of local government responsibilities. At the recent meetings of these networks, there was a clear demonstration of the benefits for lead members in discussing respective and joint challenges, highlighting examples of good practice and options for addressing some of the important challenges facing the respective sectors.
3.6 If the Executive Board are minded to endorse proposals for a regional review into health, then given their oversight responsibilities, particularly in relation to lead member networks, the Improvement and Transformation Board will offer its full support and active contribution to the completion of this review.
4. Recommendations
4.1 Members of the Executive Board are invited to note the information contained within this report.
Cllr Roger Begy, OBE Chairman Improvement and Transformation Board
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Executive Board Meeting 21st March 2014
Update on East Midlands Councils Performance, Audit Control and Governance
Summary
EMC Management Group met on 28th February 2014. The following report summarises the issues that relate to the organisational performance, audit control and governance of EMC.
All papers are available on the EMC website or on request to the Executive Director or Corporate Governance Manager.
Recommendations
Members of the Executive Board are invited to note the issues considered by Management Group, specifically:
. EMC Management Accounts 1st April 2013 to 31st January 2013. . Performance against the Business Plan 2013/14. . Update on the Certification Office submission of accounts . Update on the transfer of accountable body . Accommodation
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1. EMC Management Accounts – 1st April 2013 to 31st January 2014
1.1 Members considered a report that detailed the financial position for the period ending 31st January 2014.
1.2 The year end trading position is now forecast to be in surplus by £110,000, a decrease on the original budgeted surplus of £130,000. This forecast has been reduced slightly to take into account the now known costs relating to the production of the Statement of Accounts as required by the Certification Officer, these being £27,500 from PWC and £8,000 from Leicestershire County Council. Any surpluses would, at year end, be transferred to reserves.
2. Performance against Business Plan 2013/14 (April to December 2014)
2.1 Members noted this report with specific reference to those KPIs that were underperforming as at the end of the first quarter: a) Increasing attendance (year on year) at meetings of EMC and associated Boards from 2012/13 levels
2.2 Attendance for the three quarters of 2013/14 against this KPI is not on-target due to attendance levels for the Executive Boards and the full meetings of EMC with both being below 2012/13 levels.
2.3 The supportive role of group leaders was acknowledged, although poor attendance may be seen as a lack of membership engagement and was highlighted to Management Group as a risk to EMC.
3. Audit Requirements of the Certification Officer
3.1 Members were reminded of the audit requirements of the Certification Office in relation to East Midlands Councils role as an Employers Association as delegated under the Trade Union and Labour Relations (Consolidation) Act 1992.
3.2 A Statement of Accounts has now been produced by Leicestershire County Council and audited by their auditors Price Waterhouse Coopers in order for EMC to comply with its statutory requirements, and these accounts have been submitted to the Certification Office.
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4. Transfer of Accountable Body
4.1 An update report was presented to the Management Group by the Executive Director and the nominated lead for the accountable body (Deputy Chief Executive).
4.2 There was agreement that the date of 1st April 2014 is on target to be delivered, with NCC having almost completed their due diligence.
5. Accommodation
5.1 Members agreed a recommendation to relocate EMC offices to PERA on the basis of cost and business need. A licence to occupy for a 12 month period will be signed by NCC (on behalf of EMC) and there is an ongoing commitment to keep further options under review.
6. Recommendation
6.1 Members of the Executive Board are invited to note the issues considered by Management Group.
Stuart Young Executive Director
Alison Neal Corporate Governance Manager
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