Executive Board Meeting
10am, Friday 23 rd March 2012 Nottingham City Council
AGENDA
1. Apologies
2. Declarations of Interest
3. Minutes of the Executive Board Meeting 16 TH December 2011
4. Financial Report 2011-12
5. EMC Priorities – Business Plan 2012-13
6. EMC Budget 2012-13
7. EMC Membership 2012/13 (Verbal Report)
8. Welfare Reform
9. Transport Investment a) Midland Main Line Upgrade & Electrification b) Local Transport Bodies Consultation
10. Regional Growth Fund and BIS Update (Verbal Report)
11. Affordable Housing Provision
12. Judicial Review and DEFRA Consultation on the Waste (England and Wales) Regulations 2011
13. Board Reports a) East Midlands Improvement & Efficiency Partnership b) Strategic Migration Board c) Regional Employers Board
14. Report of the EMC Management Group (discussion to be chaired by Cllr Jon Collins) Item 3
EAST MIDLANDS COUNCILS EXECUTIVE BOARD MINUTES OF THE MEETING HELD ON 16 TH DECEMBER 2011 AT LEICESTERSHIRE COUNTY COUNCIL
Present: Cllr David Parsons CBE (Chair) – Leicestershire County Council Cllr Jon Collins (Vice-Chair) – Nottingham City Council Cllr Neil Clarke (Vice Chair) – Rushcliffe Borough Council Cllr Ernie White – Blaby District Council Cllr Chris Millar – Daventry District Council Cllr Andrew Lewer – Derbyshire County Council Cllr Lewis Rose OBE – Derbyshire Dales District Council Cllr Martin Hill OBE – Lincolnshire County Council Cllr Kay Cutts – Nottinghamshire County Council Cllr Roger Begy OBE – Rutland County Council Cllr Linda Neal – South Kesteven District Council Cllr Robert Parker- EMC Labour Group Mayor Tony Egginton – EMC Independent Group Cllr Geoff Stevens – Derbyshire Dales District Council Cllr Ian Fleetwood – Lincolnshire County Council
Steve Atkinson – Chief Executive, Hinckley & Bosworth Borough Council John Sinnott – Chief Executive, Leicestershire County Council Jane Todd – Chief Executive, Nottingham City Council
Stuart Young – East Midlands Councils Jan Sensier – East Midlands Councils Andrew Pritchard – East Midlands Councils Sam Maher – East Midlands Councils Alison Neal – East Midlands Councils Lisa Hopkins – East Midlands Councils (Minutes)
Apologies Cllr Jim Harker - Northamptonshire County Council Cllr Philip Hickson – Derby City Council Cllr Rory Palmer – Leicester City Council Tony Favell – Peak District National Park Cllr Fiona Martin – EMC Liberal Democrat Group
1 Item 3
ACTION 1. Apologies and Introductions
1.1 Cllr David Parsons CBE welcomed Members to the meeting.
1.2 Apologies were received as noted above.
2. Declarations of Interest
2.1 None.
3. Minutes of Executive Board Meeting held on 23 rd September 2011 & Matters Arising 3.1 The minutes were agreed as a true and accurate record.
3.2 It was confirmed that Cllr Neil Clarke has been appointed as an additional Vice Chair
from the District representation.
4. EM Improvement and Efficiency Partnership Board Report
4.1 Cllr Martin Hill OBE introduced the EM IEP Board Report.
4.1.1 He drew Members’ attention to the Councillor development programme and the
leadership development programme.
4.1.2 Cllr Roger Begy commented on the withdrawal of the Children’s services paper and updated Members. The LGA have established a Children’s Improvement Board that will undertake internal peer reviews and also unannounced safeguarding inspections. This has not been formally discussed by portfolio holders/lead members and there is some uncertainty with regard to the accountable body. Jan Sensier to provide a JS briefing note on this for Board Members.
4.2 Resolution:
Members agreed to promote the recent “New Ways of Working” report, and to encourage the use of the repository of case studies created through this project
5. EMC Regional Employers’ Board Report
5.1 Cllr Ian Fleetwood, Chair, Regional Employers Board, introduced this report.
2 Item 3
ACTION 5.1.1 He stated that the Board continues to meet on a regular basis and debates issues with the Unions.
5.1.2 He informed Members that consultations held within the region on national pay negotiations for 2012 identified the challenges being faced.
5.2 Questions
5.2.1 Mayor Tony Eggington enquired whether Authorities responded to surveys and requests for information. Sam Maher informed that there is good response from Local Authorities.
5.3 Resolution
Members of the Executive Board noted this report 6. EMC Strategic Migration Partnership Board Report
6.1 Cllr Geoff Stevens, Vice Chair Strategic Migration Partnership Board, introduced this report.
6.1.1 He confirmed that funding has been agreed for the next 12 months. The Board will th be meeting with Gail Adams from the UK Border Agency on 20 December 2011.
6.1.2 Salary costs will be covered but programme work which needs to be undertaken will now be funded on a bid basis.
6.1.3 There is now good attendance at Board meetings following the new membership of
this Board.
6.2 Questions
6.2.1 Cllr Roger Begy enquired about the ESOL campaign.
6.2.2 Cllr Geoff Stevens confirmed that discussion relating to ESOL is ongoing.
6.2.3 Cllr Robert Parker commented that the survey the Migration Board is undertaking in Spring 2012 should be taken in conjunction with the review of EMC. SY/SS
6.3 Resolution:
Members noted the contents of this report.
3 Item 3
ACTION
7. Planning and Housing Update
7.1 Andrew Pritchard, Director of Policy & Infrastructure for East Midlands Councils introduced this report.
7.1.1 He drew Members attention to the new ‘duty to co-operate’ on strategic planning in
the Localism Act and to the latest information on the delivery of affordable housing in the East Midlands.
7.1.2 On transport issues, he highlighted announcements in the Autumn Statement and by the Secretary of State for Transport confirming funding for number of outstanding schemes in the former RFA programme, including the A453, Lincoln Eastern Bypass,
A43 Corby Link Road, A14 Kettering Bypass, and the Nottingham Ring Road.
7.1.3 The recent lobbying event in London to promote the upgrade and electrification of the Midland Main Line had been well attended. However, there is now a need for greater engagement with MPs to move this project forward.
7.1.4 A Government announcement on the future of HS2 is expected early in the New Year.
7.2 Questions
7.2.1 Cllr Lewis Rose enquired what lobbying needed to be undertaken in relation to affordable housing.
7.2.2 Cllr Neil Clarke welcomed the widening of the A453. Cllr Andrew Lewer also commended the work that Cllr Kay Cutts and Cllr Jon Collins had put into this scheme.
7.2.3 Cllr Martin Hill enquired about the Duty to Cooperate and how this would work in practice if conflicts between authorities could not be resolved.
7.2.4 Andrew Pritchard stated that if local agreement on key strategic issues could not be achieved it is likely that plans would not be found ‘sound’. On affordable housing, it would be important to work closely with the Homes and Communities Agency and the National Housing Federation to get the best deal for the East Midlands.
7.3 Resolution:
Members noted the report.
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ACTION Members supported further lobbying on Midland Main Upgrade and Electrification and delivery of affordable housing
8. Review of East Midlands Councils
8.1 Members received a presentation from Cllr David Parsons.
8.1.1 Questions/comments
8.1.2 Cllr Martin Hill stated that a decision will need to be made in relation to East Midlands Jobs – if it fails to generate sufficient income, then the project should be discontinued. However this could also be an income generator if enough Authorities sign up. SY/JS
8.1.3 Cllr Chris Miller commented that broadband is an important issue in rural areas. He also asked about collaboration and cross-boundary working. He feels East Midlands Councils should be to promote East Midlands and cross boundary issues are more akin SY to national level work.
8.1.4 Cllr Andrew Lewer highlighted the need to avoid duplication of work and that cities will only engage if they feel they get extra value from EMC activity.
8.1.5 Cllr Robert Parker stated the need to expand on priorities. He commented that IT is an important issue re infrastructure and highlighted the need to look at expansion, priorities and funding models.
8.1.6 Stuart Young confirmed that there needs to be a limited set of priorities for EMC that need to be relevant. EMC will be financially sound for 2012/13 but the current financial model post April 2013 is not sustainable in the longer term.
8.1.7 Cllr Roger Begy stated that Authorities who actively participate see a value however those who don’t, don’t see this.
8.1.9 Jan Sensier stated that the engagement from councils has been included as an annex to the report. This shows levels of involvement.
8.1.10 A specific report on priorities for EMC activity to be brought back to the next Board meeting that will be the focus for the organisation for the next 1 – 3 years. SY
9. Update from Management Group Meeting
9.1 Members received this paper for information.
9.2 Resolution:
Members noted the recommendations agreed by management group.
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ACTION
10. Any Other Business (previously notified to the Chair)
10.1 None.
10.2 Members placed on record their thanks to Jan Sensier. 11. Date of Next Meeting
11.1 Friday 23 rd March 2012, 10.00am at Leicestershire County Council.
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Executive Board 23rd March 2012
EMC Accounts – Financial Update Report (Period Ending February 2012)
Summary
The attached statement provides details of the financial position for the period ending February 2012.
Recommendation
Members are invited to:
Note the financial position as at February 2012.
Note the forecast surplus of £164,000 and that subject to year end confirmation of the accounts and Member approval this will be carried forward to 2012/13.
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1. Key Points
1.1 The attached statement provides details of the financial position for the period ending February 2012.
1.2 The columns show the original budgets, together with the actual and forecast outturn position as at 31 st March 2012.
1.3 An explanation of the main variances (the budget against outturn) is contained within the report.
1.4 EMC has been working with our accountable body (LCC) on how these accounts are presented in order to bring them in line with its reporting requirements. The presentation of these accounts has therefore altered since being prepared for the Management Group and updated to reflect the position as at February 2012.
2. Financial Report to February 2012
2.1 The financial statement, attached as appendix 4(a) details the financial position for the period ending February 2012. a) Notes on Income
2.2 (Note 1) Subscriptions All member subscriptions have been received for this financial year, in addition there has been a small increase in the numbers of associate members resulting in an increase in subscription of £3000.
2.3 (Note 2) Traded Income This budget is forecast to be £210,000 net higher than originally included in the budget. This comprises the UKBA grant of £19,000 and secondment income of £116,000. This leaves a balance of £75,000 that is actual income earned in excess of the budget.
2.4 (Note 3) Carry forward This figure represents the amount carried forward from 2010/11 and is £75,000 higher than originally budgeted for. b) Notes on General Costs
2.5 (Note 4) Salaries The outturn for total associated salary costs is forecast to be higher than the budget by £119,000 due to: The inclusion of staff on secondment (not originally included in the budget), the return from secondment of the Executive Director and other staffing changes, including cover for long term sickness and outplacement
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support for two members of staff who were to be made redundant. These factors have led to an overspend against original budget of £113,000 that has been mitigated by a corresponding increase in income see 2.3 above. An overspend of £12,000 in travel expenses that is largely as a result of an original under estimate in the level of budget required. A more realistic forecast will be included in 2012/13 proposed budget. An underspend of £6000 on staff training and development.
2.6 (Note 5) Other fixed costs This includes premises and general organisational running costs. This budget is forecast to be overspent by £6000 at year end against the budget of £144,000. This is due to the one off purchase of new office equipment.
2.7 (Note 6) Members costs This budget is forecast to be slightly overspent at year end by £1000
2.8 (Note 7) Corporate costs This budget is forecast to show a £2000 underspend at year end against a budget of £10,000. This is largely as a result of planned project activity no longer taking place.
3. EM IEP
3.1 EMC currently holds the EMIEP legacy funding of £3.5million for delivery during 2011/12 and 2012/13. This is currently held on the balance sheet as advised by LCC.
4. Reserves and Liabilities
4.1 Our current level of reserves as at February 2012 is £470,000 with current liabilities including staffing and closedown costs being around £270,000. It is anticipated that around £40,000 will be charged to reserves this financial year (redundancy/ early release of pension) leaving a balance of £160,000 against the pension liability of (approx) £4 million.
4.2 In the event of EMC being wound up any liabilities would be met by the 9Cs as in the current constitution agreed at the AGM in July 2010.
Extract from EMC Constitution (5.10) County and Unitary authorities, by accepting membership of EMC, agree to underwrite jointly and in equal parts any liabilities which may be incurred in the name of EMC during the period of their membership and any liabilities, costs or deficits which fall to be met on dissolution of EMC, save that if at any time there are less than five principal authorities in membership
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of EMC, those liabilities costs or deficits shall be met by all authorities in membership at that time.
5. Recommendation
Members of the Executive Board are invited to:
5.1 Note the financial position as at February 2012.
5.2 Note the forecast surplus of £164,000 and that subject to year end confirmation of the accounts and member approval this will be carried forward to 2012/13.
Alison Neal Corporate Governance Manager
10 Item 4, Appendix (a)
EAST MIDLANDS COUNCILS
2011/2012 BUDGET MONITORING REPORT
February Management Accounts 2012
Note 2011/12 ACTUALS FORECAST VARIATION INCOME BUDGET OUTTURN
Local Authority Subscriptions 1 273,315 276,315 276,315 (3,000)
Other - Trading income 2 361,000 745,946 571,177 (210,177)
Carry forward 3 227,000 302,437 302,437 (75,437)
TOTAL INCOME 861,315 1,324,698 1,149,929 -288,614
EXPENDITURE
Staff Costs 4 687,418 745,552 806,480 (119,062) Other fixed costs 5 143,897 118,375 149,894 (5,997) Members Costs 6 20,000 19,170 21,365 (1,365) Corporate Costs 7 10,000 3,006 7,886 2,114
TOTAL EXPENDITURE 861,315 886,103 985,625 -124,310
OPERATIONAL SURPLUS 0 438,595 164,304 -164,304 11 Item 5
Executive Board 23rd March 2012
East Midlands Councils’ Business Plan 2012-13
Summary
This report presents the draft East Midlands Councils’ Business Plan 2012/13 for Member consideration and endorsement.
Recommendation
Members are invited to consider and agree the EMC Business Plan 2012-13.
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Item 5
1. Introduction
1.1 This report presents the East Midlands Councils’ Business Plan 2012/13 for Member consideration.
1.2 Members are reminded that the core offer of East Midlands Councils is to: Represent the interests of local councils to Government and national organisations. Enable local councils to work together on key issues of common concern. Support local councils with advice and services on employment, training and development, housing, health, transport and planning.
1.3 EMC activity is managed largely through its Board structure: Executive Board Strategic Migration Board Regional Employers’ Board Improvement and Efficiency Board Management Group
2. Business Plan 2012-13 – Our Future Priorities
2.1 The business plan is a formal statement of EMC’s objectives for 2012/13. As a membership body, the priorities of EMC should be developed and agreed by members and clearly presented for review, not just in order to promote understanding of the roles and responsibilities of EMC, but also as a measure against which our performance as an organisation should be judged.
2.2 The draft EMC Business Plan 2012/13 is presented for consideration and endorsement. Informed by discussions at EMC Management Group, the draft Business Plan has been developed in discussion with Members, and reflects not just the priorities of local government but also where the impact of collaborative action through EMC is likely to be the greatest.
2.3 To reflect sector priorities and to support clarity on ‘what EMC does’, it is proposed that the principal focus of this business plan, and hence EMC activity, should be upon supporting economic growth and sector-led improvement and transformation. Consequently, the business plan is divided into two clear sections and all proposed activity, project and programme delivery is within the framework of these two priority areas.
2.4 A draft has been sent to all EMC Members, Leaders and Chief Executives of the regions’ local authorities. Key partners have also been consulted in the
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Item 5
development of the draft, e.g. LGA, CLG, ONE East Midlands and BIS local teams.
2.5 The draft business plan is attached in appendix 5(a) for the consideration and agreement of the Executive Board.
3. Recommendation
3.1 Members Executive Board are invited to consider and agree the EMC Business Plan 2012-13.
Stuart Young Executive Director
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D R A F T
2012 – 13 Business Plan
CONTENTS
Page
PREFACE 3
1. EMC Achievements - An Overview of 2011/12 4
2. Key Issues and Challenges 2012-13 6
3. Consultation 6
4. Accountability, Audit and Risk Management 7
5. Key Performance Indicators 8
6. Resources 9
Section 1 – Supporting Local Economic Growth
Section 2 – Supporting Sector-led Improvement and Transformation
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East Midlands Councils Business Plan 2012- 2013
Preface
We are confident that East Midlands Councils (EMC), with the excellent support of Members and staff, will achieve the aims and objectives of this Business Plan on behalf of the region’s local authorities.
EMC continues to deliver a number of important roles and responsibilities. Over the past year, we have worked on a range of policy issues, including economic growth, local government pay and recent changes that affect health and housing. Alongside this, EMC has lobbied for key infrastructure development, including the upgrade and electrification of Midland Mainline. EMC has also led the joint work of local councils on improvement and efficiency and through our commitment to providing service support to local authorities; EMC has continued to provide valuable sector-led support on HR and training, councillor and workforce development.
Looking forward, and from discussions with member authorities and partners, it seems clear that two priorities for any organisation that represents the local authority sector should be supporting economic growth and sector-led transformation and improvement. Therefore, in order to reflect sector priorities and to support clarity on ‘what EMC does’ – it is proposed that the 2012/13 business plan is structured upon these two objectives, specifically: Focus on supporting economic growth Focus on transformation and sector led improvement
East Midlands Councils will provide all possible support to ensure the region’s local authorities are best placed to respond to these difficult times. The success of this organisation and its relevance to member authorities should be measured against the delivery of this business plan and specifically the effectiveness of EMC support on promoting economic growth and sector-led transformation and improvement.
This business plan will be placed on the EMC website and sent to Leaders and Chief Executives of the region’s local authorities.
(Note – upon agreement, to be signed by EMC Chair and Vice-Chairs)
3 1. EMC Achievements - An Overview of 2011/12
2011/12 has been a challenging year for EMC and the sector as a whole. Within a very tight financial context, and with additional roles and responsibilities, local government has a key role in leading the implementation of new models of public service delivery.
It is a credit to both EMC members and staff that through this challenging period, EMC has developed and delivered on its priorities within this changing landscape. This has included closer working with the Local Government Association and with central government departments. Our offer therefore reflects the new reality facing local government as the examples below demonstrate:
Lobbying and Policy: Advice and Information: Midland Mainline Electrification Weekly two page policy briefing Pay and Pensions HR advice line Health reforms New Ways of Working report Changing European employment legislation Range of events, case studies, toolkits to help councils adapt to English as a Second Language provision the challenges of climate change Operational Delivery: Networks: East Midlands Jobs recruitment portal LEP co-ordinators quarterly meetings Low Cost CPD programmes for Environmental Health and Scrutiny network for members and officers Planning Officers Quarterly meetings of Strategic Housing and Strategic Planning Member Development programmes including Charter Officers RIEP funded Income Generation reviews for 21 councils Performance Management Benchmarking network
Through its Board structure, EMC has led work on local government improvement and efficiency, migration issues and, as the ‘Regional Employers’ body’, leads the development of employment issues and forms the employer’s side of the Regional Joint Council. Board achievements this year include:
4 Strategic Migration Board
The Board successfully negotiated with the UK Border Agency to secure funding for the Strategic Migration Partnership for 2012/13. The Board, with support from the Department of Health, developed a Migration Health Toolkit to support practitioners in providing sources of advice and research on health issues that have particular relevance for new migrant communities. The Board has lobbied central Government on the impact of changes to English for Speakers of Other Languages provision in the East Midlands.
EM IEP Board
The Board commissioned a major report ‘New Ways of Working’ examining how councils have dealt with budget reductions, which informed a regional event attended by 100 members and officers showcasing good practice in the East Midlands. The Board is funding work to integrate adult social care, housing and health services for older people through a number of local and regional projects, including looking at the changing needs of the adult social care workforce. The Board has promoted collaborative work e.g. by integrating the work of housing officers across Northamptonshire, and by using the Nottingham City Cloud Computing project as an opportunity for regional learning.
Regional Employers’ Board
The Board has commissioned two sub-regional councillor development programmes, receiving excellent feedback and high engagement from participating councillors and authorities. The Board has overseen the delivery of over 6000 hours of continuous professional development for environmental health and spatial planning officers during the year and provided training for over 50 HR officers that led to a 39% increase in confidence levels. As part of free services provided to member local authorities, 95 separate research requests were completed up to March 2012; 45 employment advice queries were answered, 20 queries were from County/Unitary authorities and 25 from District/Borough authorities or fire services.
5 2. Key Issues and Challenges 2012-13
This business plan is a formal statement of EMC’s objectives for 2012/13. As a membership body, the priorities of EMC should be developed and agreed by member organisations and clearly presented for review, not just in order to promote 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.
The principal focus of this business plan – and hence EMC activity – will be upon supporting economic growth and sector-led transformation and improvement. Consequently, the business plan is divided into two clear sections and all proposed activity, project and programme delivery is within the framework of these two priority areas.
However, within this context, to support the delivery of this business plan and to establish a longer term vision for East Midlands Councils, a number of key challenges are identified for 2012/13:
Agree and implement revised governance and accountability arrangements. Through the delivery of the business plan identify further opportunities for collaborative work for the benefit of member organisations. In particular, EMC should further develop close working with the national LGA and any sub-national structures established by central government. Ensure wider awareness and understanding of EMC roles and responsibilities. Support the development of a longer term sustainability plan that specifically addresses any shortfall in income envisaged for 2013/14. Minimise cost (and any resultant liabilities) while maximising income opportunities. Maintain Member, partner and staff engagement.
3. Consultation
This business plan has been developed primarily in discussion with member authorities; specifically councillors and chief officers. In addition, partner organisations have been consulted in those areas where EMC activity is not wholly confined to local government.
6 4. Accountability, Audit and Risk Management
EMC has policies and procedures in place to ensure robust, transparent and effective systems and high standards of financial stewardship. The commitment to transparency and openness will be demonstrated by financial accounts being placed on the EMC website and all formal EMC member meetings being open for members of the public to attend if they so wish.
We will ensure accounting requirements are observed via internal audit and external audit functions in liaison with Leicestershire County Council (the accountable body of EMC).
Progress against the delivery of the EMC business plan 2012/13 will be reported on a quarterly basis to EMC Management Group and Executive Board.
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5. Key Performance Indicators
Key Performance Indicators 2012/13 Progress
1. Member Engagement To achieve 75% attendance of those councils in membership at meetings of East Midlands Councils and associated Boards. To increase the take-up of the range of EMC services by member authorities by x% (actual % to be determined).
2. People Management Maintain staff sickness rate at less than 8 days per full time equivalent. EMC is accredited for IiP status.
3. Budget Management To deliver services within budget across all areas, including the RIEP programme. To meet the traded services income target set.
4. Membership Service Standards To respond to all advice requests within 2 working days. To conduct a membership satisfaction survey (quarter 3, 2012/13) and address any areas for improvement as a consequence.
Key: Progress in Achieving Objective Activity successfully completed
Activity on target for completion
Activity not on target for completion
8 6. Resources Resources - 2012/2013 Explanatory Note EAST MIDLANDS COUNCILS This note explains the financial assumptions made for the business plan for 2012/13. 2012/2013 BUDGET 2012/13 This business plan for 2012-13 has been prepared on the INCOME BUDGET following basis:
The continuation of the ‘service plus’ model of operation Local Authority Subscriptions 273,000 that was approved by the Executive Board on 10 th Project Income 208,500 December 2010. Local Authority subscriptions will remain at the 2011-12 Traded Income 392,500 Grants/contracts 95,000 level of £4,995 for district authorities and £9,500 for upper TOTAL INCOME 969,000 tier authorities.
Members agree to the use of one off underspends and EXPENDITURE surpluses generated from previous years to be used to Staff Costs 880,500 support work in 2012/13. Other fixed costs 137,500 Members Costs 20,000 The accountable body for East Midlands Councils (EMC) is Corporate Costs 10,000 Leicestershire County Council (as from 1.4.2006) Project costs 78,000 TOTAL EXPENDITURE 1,126,000 Staff Costs: Salaries, including NI and Superannuation, travel and subsistence expenses, and staff training and development. OPERATIONAL SURPLUS/DEFICIT -157,000
Other Fixed Costs: Premises and associated running costs. Use of one off underspends and surpluses generated from previous 181,600 Member Costs: Members allowances, expenses and meeting years costs. OPERATIONAL SURPLUS/DEFICIT 24,600 Corporate Costs: A small budget allocated for any one off unexpected expenditure. Reserves As at 01.04.2011 reserves stood at £470,000. These reserves Project Costs: Direct costs associated with individual projects will be used to fund any future liabilities including redundancies such as East Midlands Jobs. and any other contractual liabilities.
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Section 1: Supporting Local Economic Growth
EMC Priority Objective/ Outcome Action Required By When By Whom Funding 2012/13 Action To provide policy Informed political EMC Policy Briefing Weekly EMC Part of EMC core service funded by advice and support leaders who are better Secretariat subscriptions to Councils able to deliver local Detailed briefings to EMC Quarterly EMC Part of EMC core service funded by economic growth Executive on specific issues Secretariat subscriptions highlighted by the EMC Management Group
Maintain & develop the ‘EM Ongoing Department Currently dependant on DoH Platform for Food, Physical of Health funding. Future funding under Activity & Health’ consideration LEP Network Quarterly EMC Part of EMC core service funded by Secretariat subscriptions Work with Government Ongoing EMC Part of EMC core service funded by and Work Programme Secretariat subscriptions with potential for providers to prepare some costs to be met by partners councils for welfare reform Informed senior Low Cost CDP Programme 6 events EMC Traded Services - Funded through officers who are better for Planners per year Secretariat additional annual contributions from able to deliver local councils and other bodies economic growth Spatial Planners Group & Quarterly EMC Part of EMC core service funded by Technical Group Secretariat subscriptions Strategic Housing Network Quarterly EMC Funded through residual ‘regional Secretariat housing pot’ monies. Joint training sessions with 6 events EMC Traded Services - Funded through Chartered Institute of per year Secretariat direct payments by councils Housing & CIH attending
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EMC Priority Objective/ Outcome Action Required By When By Whom Funding 2012/13 Action To help councils to The delivery of Work with HS2 Ltd to Ongoing EMC Part of EMC core service funded by secure additional strategic infrastructure inform detailed proposals Secretariat subscriptions infrastructure that promotes local for the Birmingham to economic growth Leeds route
Work with partners to Ongoing – EMC Part of EMC core service funded by promote the upgrade and key date Secretariat subscriptions – some additional electrification of the MML July 2012 support from partners Continue to promote other Ongoing EMC Part of EMC core service funded by regional road and public Secretariat subscriptions transport priorities
To help councils Local economies that Delivery of a programme March EMC Funded through income generation adapt to and are more resilient to of mitigation 2013 Secretariat from 2011-12 and remaining DCLG mitigate the climate change through Skills Fund effects of climate Climate East change in their Midlands Potential for EU Elena funding to localities, and to significantly extend activity promote the Delivery of Defra March EMC Currently dependant on Defra transition to low Adaptation Programme 2013 Secretariat funding via the Environment carbon local through Agency. economies Climate East Midlands Future funding under consideration To help councils to Councils that have Provision of Planning Ongoing EMC Traded Services - Demand led maintain & access to specialist Support Service Secretariat service resulting in some income improve local skills on an ad-hoc supported generation development basis at below private by Associate services sector rates that will Consultants support local economic growth Develop partnership Ongoing EMC Part of EMC core service funded by agreements with external Secretariat subscriptions. Some income
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EMC Priority Objective/ Outcome Action Required By When By Whom Funding 2012/13 Action bodies to provide working generation potential. discounted services to EMC with members partners (e.g. OPUN) To help councils The delivery of projects Provide support for EMC Ongoing EMC Part of EMC core service funded by secure additional and initiatives that will representatives on the EU Secretariat subscriptions European funding benefit local economies Committee of the Regions & prioritise & the ERDF Local investment Management Committee effectively Work with Government Ongoing EMC Part of EMC core service funded by and EC to influence the Secretariat subscriptions. shape of current and future funding Opportunities to fund through programmes technical assistance to be explored
To improve skill Councils and Promotion & support for Ongoing EMC Part of EMC core service funded by levels within communities better apprenticeships Secretariat subscriptions council workforces able to deliver local & local economic growth communities Advice on employment Ongoing EMC Part of EMC core service funded by policies and employee Secretariat subscriptions - potential for some development activity income generation Collaboration with ‘Skills Ongoing EMC Part of EMC core service funded by for Justice’ to identify and Secretariat subscriptions support key skills Influencing through Ongoing EMC Part of EMC core service funded by national and European Secretariat subscriptions – potential for EU networks to support skills funding development
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Section 2: Sector-Led Transformation & Improvement
EMC Priority Objective/ Action Required By When By Whom Funding 2012/13 Action Outcome To lead and co- Councils in the East Effectively manage RIEP Ongoing EM IEP Board EM IEP Legacy programme due to ordinate Midlands that legacy programme and EMC finish March 2013 – potential for improvement perform well and Secretariat closer working with LGA activity across are continuously Develop Performance By June 2013 EMC Secretariat Will become part of EMC core the East improving Management business once RIEP funding ends Midlands Benchmarking network
Robust early Through EM IEP Ongoing EM IEP Board With East of England, pilot closer warning system in agreed processes, gather and EMC working with LGA on improvement place to identify intelligence to support Secretariat issues and make proposals for any councils members working with further devolution of resources potentially in LGA and activity difficulty, Identify how EM IEP legacy Ongoing EM IEP Board EM IEP programme can support and EMC councils in difficulty Secretariat Joined up and Work with LGA and across Ongoing EM IEP Board Potential for closer working with effective activity service areas including and EMC LGA, Children’s Improvement taking place to children’s and adult Secretariat with Board, DH etc stimulate and services to co-ordinate LGA Principal support sector activity Adviser improvement Facilitate exchange of good Ongoing EMC Secretariat EM IEP practice through learning events, case studies etc To lead the To deliver the Provide a regional Ongoing to Strategic UKBA funded to March 2013 Strategic objectives of the advisory, development and 2013 Migration Migration business plan for consultation function for Partnership and Partnership for the Strategic member organisations EMC Secretariat the East Migration from all sectors
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EMC Priority Objective/ Action Required By When By Whom Funding 2012/13 Action Outcome Midlands Partnership Co-ordination of the Ongoing to EMC Secretariat provision of advice, 2013 support and services for migrants To deliver Local authorities Provision of advice line Ongoing EMC Secretariat Part of EMC core services funded strategic have support to by subscriptions workforce implement improvement for employment Events and networks Ongoing EMC Secretariat Part of EMC core services funded local authorities legislation and throughout by subscriptions national conditions the year of service Liaison with LGA Ongoing EMC Secretariat Part of EMC core services funded by subscriptions Local authorities Support for Regional Quarterly EMC Secretariat Part of EMC core services funded are provided with a Employers’ Board and by subscriptions mechanism for Regional Joint Council influencing national conditions of Liaison with LGA Ongoing EMC Secretariat Part of EMC core services funded service and UK & by subscriptions European Hosting pay roadshow Annually EMC Secretariat Part of EMC core services funded employment by subscriptions legislation Co-ordination of Ongoing EMC Secretariat Part of EMC core services funded consultation responses by subscriptions
Participation at NARE Quarterly Regional Part of EMC core services funded meetings and at CEEP/ PPE Employer’s by subscriptions meetings Board Chair/ EMC Secretariat Local authorities Research & information Ongoing EMC Secretariat Part of EMC core services funded working together service by subscriptions on common issues
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EMC Priority Objective/ Action Required By When By Whom Funding 2012/13 Action Outcome to achieve efficiencies, share resources and good practice Provision of networks Quarterly EMC Secretariat Part of EMC core services funded by subscriptions Bulk purchase of WARP Ongoing EMC Secretariat Traded Service – subscription online security service and model network support
Online HR information Ongoing EMC Secretariat Traded Service – subscription service model
Online pay benchmarking From July EMC Secretariat Part of EMC core service funded system 2012 by subscriptions plus licence costs To deliver Local authorities Recruitment and Ongoing EMC Secretariat Part of EMC core service funded strategic will have support to Selection: by subscriptions plus opportunities workforce and deliver their Provision of support to for income generation member workforce councils development strategies to ensure appropriate skilled Pay and Rewards Ongoing EMC Secretariat Part of EMC core service funded resources within Supporting modernisation by subscriptions plus opportunities local government of pay and rewards for income generation frameworks
Organisation Ongoing EMC Secretariat Part of EMC core service funded Development: by subscriptions plus opportunities Managing change for income generation Support with redundancies and outplacement Shared services
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EMC Priority Objective/ Action Required By When By Whom Funding 2012/13 Action Outcome Equality and Diversity: Ongoing EMC Secretariat Part of EMC core service funded Supporting authorities to by subscriptions plus opportunities improve diversity and for income generation address inequalities
Leadership Ongoing EMC Secretariat Part of EMC core service funded Development: by subscriptions plus opportunities Providing support and for income generation plus specific advice on effective projects awaiting confirmation of leadership and on EM IEP funding depending on leadership development invest to Save monies being (officer and councillor) repaid Organising and supporting regional and sub-regional programmes
Skills Development: Ongoing EMC Secretariat Part of EMC core service funded Apprenticeships by subscriptions plus opportunities Supporting authorities to for income generation and achieve skills development potential for EU funding Offering regional and sub- regional programmes including low-cost CPD for Environmental Health Officers Development of regional talent pool To facilitate Local authorities Provision of support to Ongoing EMC Secretariat Part of EMC core service funded additional are provided with meet individual authorities’ by subscriptions plus opportunities strategic individual support needs for income generation. Talent workforce to meet their Development of coaching Pool element provided through EM capacity for the requirements and tool and interim IEP funding. sector have access to a management database
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EMC Priority Objective/ Action Required By When By Whom Funding 2012/13 Action Outcome pool of qualified and experienced coaches, interims and consultants to call upon To deliver EM Council officers and Provision of coaching tool By March EMC Secretariat EM IEP IEP strategic members better 2013 workforce and prepared to face member challenges of local development authority leadership programme
Delivery of sub-regional Ongoing to EMC Secretariat EM IEP councillor skills March 2013 development programmes
Delivery of Low-cost CPD 6 events to EMC Secretariat EM IEP for Councillors March 2013
Provision of accredited Ongoing EMC Secretariat EM IEP councillor development programme To provide the To deliver the East Gain sufficient By May 2013 EMC Secretariat Traded Service – subscription local authority Midlands Jobs subscriptions to sustain the model and wider public recruitment portal, portal; sector with more ensuring its Deliver excellent customer Ongoing EMC Secretariat Traded Service – subscription efficient and effectiveness and service to subscribers; model effective future sustainability Continue to develop Ongoing EMC Secretariat Traded Service – subscription recruitment tool market beyond local model authorities
17 Item 6
Executive Board 23 rd March 2012
Proposed Budget 2012-13
Summary
This report provides information on the proposed EMC budget 2012/13.
Recommendation
Members are invited to consider and endorse the proposed budget for 2012-13.
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1. Introduction
1.1 The following report provides information on the proposed EMC budget 2012/13.
2. Key Points and Presentation of Budget 2012-13
2.1 The budget will be for the purpose of delivering the EMC business plan 2012/13, as agreed by EMC Executive Board.
2.2 This report details the proposed East Midlands Councils budget for 2012-13 that has been developed on the continuation of the ‘service plus’ model of operation (approved at the Executive Board on 10 th December 2010).
2.3 The proposed budget is predicated upon the assumption that Local Authority subscriptions will remain at the 2011-2012 level of £4995 for district authorities and £9500 for upper tier authorities and on the basis of delivering the objectives as set out in the Business Plan.
2.4 There is also an underlying assumption that at year end 2011-12 Members will agree to the use of one off surpluses and underspend (estimated at this time at £181,000) to support the work of EMC for 2012/13.
2.5 This paper differs on the financial appendix from the draft budget taken to the Management Group on 20 th February due to changes recommended by our accountable body (Leicestershire County Council) to bring the accounts of EMC in line with those of LCC and a recommendation from the Management Group that any anticipated surplus should be shown on the bottom line.
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EAST MIDLANDS COUNCILS Notes
2012/2013 BUDGET
2012/13 INCOME BUDGET
Local Authority Subscriptions 1 273,000 Project Income 2 208,500 Traded Income 3 392,500 Grants/contracts 4 95,000
TOTAL INCOME 969,000
EXPENDITURE
Staff Costs 5 880,500 Other fixed costs 6 137,500 Members Costs 7 20,000 Corporate Costs 8 10,000 Project costs 9 78,000
TOTAL EXPENDITURE 1,126,000
OPERATIONAL SURPLUS/DEFICIT -157,000
Use of ‘one-off’ underspend and surplus generated from previous years 181,600
OPERATIONAL SURPLUS/DEFICIT 24,600
a) Notes on Income
1. Local Authority Subscriptions This budget is based on Local Authority subscriptions of £9500 for the 9 upper tier authorities and £4995 for district authorities plus a number of associate members at £1000 each.
2. Project Income This budget represents the subscription income form East Midlands Jobs together with income to support the work of the Climate change officers.
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3. Traded Income This budget shows the net budget for our traded services work, and includes work such as our low cost CPD seminars, HR and Planning consultancy, work on member development, event income and other consultancy work for members and non members. This budget also includes any recharges for staff working on contracts funded from other sources.
4. Grants/Contracts This budget identifies the area of income which is subject to grant, that income being the grant from the UKBA (UK Borders Agency) to deliver on strategic migration. b) Notes on Expenditure
5. Staff costs This budget includes all associated staff costs including national insurance and superannuation, staff travel and subsistence, payment for professional fees and staff training. The budget is based on 21 members of staff equivalent to 16.6 FTE
6. Other fixed costs This budget includes all premises related running costs such as rent & rates and includes all office base costs such as stationery printing and communication costs.
7. Members costs Included within this budget are members allowances and expenses payable and any associated meeting costs. This budget has been held at the 2011/12 level.
8. Corporate costs This small budget of £10,000 allows for any one of project work to be undertaken.
9. Project costs This budget is for the direct costs of running projects for example the East Midlands Jobs portal.
EM IEP
The balance of the EM IEP legacy funding for 2011 -13 is held on the balance sheet as in accordance with the financial regulations of our accountable body and is not included within this budget. This is due to be fully allocated during the 2012/13 financial year.
3. Recommendation
3.1 Members are invited to consider and endorse the proposed budget for 2012- 13. Alison Neal Corporate Governance Manager
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Item 8
Executive Board 23rd March 2012
WELFARE REFORM – PROPOSED EMC ACTION
Summary
This report summarises the Government’s policies on Welfare Reform, and examines their impact on citizens and councils. The paper suggests some issues on which East Midlands Councils may lobby Government, sets out support from the EM IEP on this issue, and proposes support to any authority putting itself forward as a Universal Credit pilot.
Recommendation
Members of the Executive Board are invited to:
Note the developments on welfare reform as highlighted in this report.
Support the case for a delivery role for councils in Universal Credit, and support any proposals from authorities in the East Midlands.
Press the case for timely adoption of the regulations for the localisation of council tax benefit to ensure authorities have sufficient time to prepare.
Promote the EM IEP events to raise awareness and facilitate collaboration on the introduction of local council tax support schemes.
Consider the lobbying points outlined to form the basis of a letter to the Secretaries of State for DWP and DCLG, in particular to highlight concerns that local council tax support schemes may mitigate against the work incentive design of Universal Credit and to emphasise the need for greater sharing of data by the DWP for developing local council tax support schemes.
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1. Introduction
1.1 The Coalition Government has stated that there are two main problems with the current welfare system: Work incentives are poor. The system is too complex.
1.2 The Government has therefore made the commitment to overhaul the benefit system to promote work and personal responsibility. On 8 th March the Welfare Reform Act 2012 received Royal Assent. Key elements of the Act include: The introduction of Universal Credit to provide a single streamlined benefit that will ensure work always pays - from October 2013. A ‘Benefits Cap’ that ensures no-one can get more than £26,000 in benefits – from April 2013 The abolition of Council Tax Benefit to be replaced by locally administered schemes – from April 2013. Reforms to other benefits including Disability Living Allowance and community care grants and crisis loans – community care grants & crisis loans are being abolished and local authorities will be expected to deliver a local system of emergency provision for vulnerable groups to meet severe hardship.
1.3 This paper sets out the wider welfare reform agenda in four parts – changes to the current system, the introduction of Universal Credit, and the localisation of council tax benefit and welfare assistance. For each, the paper identifies the impact of citizens, on councils and any key issues for East Midlands Councils.
2. Changes to the Current System
2.1 Changes are already being made to the current welfare system, and more will result from the Welfare Reform Act. These include:
Moves from Incapacity Benefit to Employment Support Allowance. Tax credits reduced. Up-rating linked to Consumer Price Index. Local Housing Allowance limited to £400 per week (LHA rates will reduce from the 50 th percentile to the 30 th percentile of market rents). New rules on single occupancy and under occupancy.
2.2 Many of these changes relate to housing benefit; some of the changes were introduced in 2011 and this will carry on through until 2013. The following grid assesses the potential impact on citizens and councils:
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Impact on Citizens Impact on Councils
Cumulative impact of changes difficult to Potential impact on councils as landlords assess and on RSLs and private sector Initial work carried out by some councils landlords in sourcing suitable shared (e.g. Nottingham City C ouncil) suggests and smaller accommodation worse hit will be low income families in Potenti al reduction in supply of rented work accommodation Families/Individuals needing to move to Potential for family moves to impact on avoid excessive housing costs, or the distribution of school places and other single and under occupancy rules services, including across councils areas Potential knock-on impact on children e.g. (some evidence that London Boroughs if need to move school following house are issuing leaflets supporting people to move as above move to cheaper areas) Potentially reduced choice of location and Potential increase on debt handling and type of stock available other welfare services Greater incentive to find work
2.3 Issues for East Midlands Councils: It is important that councils prepare for these changes, and understand their implications. East Midlands Councils, through its Strategic Housing Network, has been discussing implications with housing authorities, and on 16 March is running an event ‘Welfare Reform and Housing Benefit’ specifically geared at helping housing officers understand the implications of these changes. The Local Government Association is proposing to develop communications materials which councils can tailor to their needs, and will also be pressing government to fund any new burdens on councils that emerge from these changes.
3. Introduction of Universal Credit
3.1 Universal Credit will be introduced incrementally from October 2013, starting with new claims and those with significant changed circumstances. From April 2014, those who will most benefit will move onto the system, with the remaining recipients moved from 2015-2017.
3.2 Given the Government’s intention that the new system should provide an incentive to work, should mimic work, and should be simpler to administer, payments will generally be made monthly in arrears as a single payment per household. Features include:
Replaces Jobseekers Allowance (income based), Employment Support Allowance (income based), Income Support, Housing Benefits, Child Tax Credit, and Working Tax Credit. Aspiration and vision for up to 80% of claims to be managed online.
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Claimants pay rent, bills etc. rather than direct payments to landlords. Taper approach to withdrawing Universal Credit to incentivise work. Projected to lift 350,000-500,000 out of poverty.
3.3 Universal Credit will be delivered by Jobcentre Plus using a new computer system aligned with real time income information from HMRC. However, following extensive lobbying, Lord Freud wrote to Sir Merrick Cockell, Chair of the Local Government Association, on 20 February, inviting the sector to support short and long term pilots to help develop integrated working with local authorities as well as diverse models for delivery from 2015. In particular, local authorities see a clear role for the sector in offering telephone and face to face advice particularly to more vulnerable people, and in integrating services such as in the example of Rushcliffe Community Contact Centre that already operates in partnership with Nottinghamshire Police to deliver a joint customer experience.
3.4 The table below sets out the potential impact on individuals and councils as a result of the move to Universal Credit.
Impact on Citizens Impact on Councils
Modal shift to online claims will require Increased demand for support to access support for some people IT perhaps through People’s Network in Lack of access to online due to libraries etc infrastructure in rural areas or soc ial Move to monthly payments may increase mobility issues rent and Council Tax arrears therefore Since the monthly payments will not be will likely to be an increased demand itemised, citizens will need to budget and upon collection and debt management plan themselves for elements such as services both within Local Authorities and rent, child support etc third sector providers. Required change of behaviour to manage Ending of Housing Benefit will lead to housing all housing costs. staff reductions which may not be Tapering arrangements shoul d mean mitigated by a role for LAs in delivery greater incentives to work
3.5 Issues for East Midlands Councils: The Local Government Association, along with representatives from a number of councils across the country, is strongly advocating a delivery role for Local Authorities. Councils are now being invited to put forward proposals to pilot arrangements and East Midlands Councils should provide support to any such proposals, whilst continuing to press the case for a role for the sector, particularly in helping the integration of services, and in supporting the more vulnerable.
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4. Localisation of Council Tax Benefit and Welfare Assistance
4.1 Council Tax Benefit will not form part of the Universal Credit. Instead, from April 2013, the national scheme will cease and through the Local Government Finance Bill, support for Council Tax will be localised. Councils will be expected to deliver local schemes with a cash limited non ring fenced grant, reflecting a 10% saving on the current Council Tax Benefit bill.
4.2 Authorities in the East Midlands are making preparations for the introduction of local schemes, although concern has been expressed both by the sector and by major IT suppliers about the timescales for implementation, particularly as regulations to support the legislation are not due until the latter part of 2012. Councils will need to have their schemes in place by end January 2013 in readiness for April 2013 implementation. Authorities in the East Midlands, such as in Nottinghamshire, are also working together to explore the possibility for joint of aligned scheme to minimise the risk of differentiated levels of support.
4.3 Due to the 10% cut in overall budget, councils will need to make choices on groups of clients to support. Under the provision of the bill, pensioners receiving support currently are protected. There are other groups currently receiving relief through passported benefits. The groups that may be affected therefore could well be the low income working families and there is a danger that any decreases in the level of support to this group may off-set the incentive effect of Universal Credit.
4.4 If councils do not have schemes ready by end January 2013, the default is likely to be retaining the existing criteria and allowances, which could therefore impose a significant budgetary pressure on councils due to the 10% cut in funding.
4.5 In addition to the above, a further element of localisation is the move in responsibility to upper tier authorities for welfare support. Community care grants and crisis loans will be replaced with local welfare assistance funded by a non ring fenced grant to these authorities.
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4.6 The table below sets out the potential impact on citizens and councils:
Impact on citizens Impact on Councils
Local schemes will reduce support to Timing – if schemes are not ready certain groups, potentially low councils will risk bea ring the cost of the Income working families 10% cut in budget Neighbouring councils offering different IT systems will need to be in place, with schemes may lead to neighbours data analysis available to aid decision receiving different levels of support – making on local schemes potential communications exercise Capped grants will necessitate careful Confusion for the citizen due to planning to ensure costs are kept within complexity and reasons for change budget Financial pressures due to 10% cut in budget Significant exercise to consult and determine scheme and demand of vulnerable groups Risk of legal challenge by effected groups Cost and ri sk transfer to major precepting authorities Reduction in collection rates and impact upon cash flow of collection funds Risk of increase in unforeseen demand
4.7 Issues for East Midlands Councils: Councils should continue to press for early adoption of regulations to support the changes so that preparations can be made. Where this is not already happening, councils should consider working together to produce aligned schemes and explore the potential to share costs (e.g. in IT development) and thereby create efficiencies. Through the East Midlands Improvement and Efficiency Partnership, EMC will be holding two events – one for leaders, members and Chief Executives to discuss an overview of the changes and their implications, and one for Heads of Finance, Revenues and Benefits, and Procurement to examine the technical issues and explore the possibility for joint working. These will take place in April and May. In addition, Members may wish to highlight concerns that the impact of local schemes to support Council Tax may damage the work incentive impact of the Universal Credit and DWP may be pressed to better support the provision of shared data.
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5. The Work Programme
5.1 Alongside these welfare reforms, the Government has set out a comprehensive package of assistance to support people into work. A key plank of this is the Work Programme that pays providers by results to find sustainable employment for the long term unemployed. East Midlands Councils held an event on 7 th December, designed to bring together councils with Jobcentre Plus and the two Work Programme prime contractors for the region, A4e and Ingeus Deloitte. This was attended by 12 authorities and was successful in breaking down some previous barriers to joint working, particularly in Lincolnshire. East Midlands Councils continues regular dialogue with the Work Programme providers and with Jobcentre Plus, and should the demand arise, could consider holding future meetings/events to support joined up working.
6. Recommendations:
Members of the Executive Board are invited to:
6.1 Note the developments on welfare reform as highlighted in this report.
6.2 Support the case for a delivery role for councils in Universal Credit, and support any proposals from authorities in the East Midlands.
6.3 Press the case for timely adoption of the regulations for the localisation of council tax benefit to ensure authorities have sufficient time to prepare.
6.4 Promote the EM IEP events to raise awareness and facilitate collaboration on the introduction of local council tax support schemes.
6.5 Consider the lobbying points outlined to form the basis of a letter to the Secretaries of State for DWP and DCLG, in particular to highlight concerns that local council tax support schemes may mitigate against the work incentive design of Universal Credit and to emphasise the need for greater sharing of data by the DWP for developing local council tax support schemes.
Allen Graham Chief Executive Rushcliffe Borough Council
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Item 9
Executive Board 23 March 2012
TRANSPORT INVESTMENT
Summary
This report updates Members on efforts to secure the upgrade and electrification of the Midland Main Line, and sets out a draft response to the Department of Transport’s consultation on Local Transport Bodies as part of the successor arrangements to the former Regional Funding Allocations Programme.
Recommendation
The Executive Board is invited to:
Endorse efforts to secure the upgrade and electrification of the Midlands Main Line set out under section 2 of this report, highlighting where further action may be required.
Endorse a response to the consultation on ‘local transport bodies’ based on the points set out under section 3.5 of this report, subject to any amendments agreed by Members.
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1. Introduction
1.1 This report updates Members on efforts to secure the upgrade and electrification of the Midland Main Line, and sets out a draft response to the Department of Transport’s consultation on ‘local transport bodies’ as part of the successor arrangements to the former Regional Funding Allocations programme.
2. Midland Main Line Upgrade and Electrification
2.1 EMC has been working closely with South Yorkshire Passenger Transport Executive, Network Rail and East Midlands Trains to ensure that the proposals to upgrade and electrify the Midland Main Line set out in the Initial Industry Plan (September 2011) are reflected in the Government’s High Level Outputs Statement (HLOS), expected in July 2012.
2.2 A revised summary briefing of the benefits of the investment package, reflecting updated metrics on annual revenue cost and CO2 savings from the electrification element has been produced and widely disseminated (contained in Appendix a). The annual cost savings from electrification are now estimated to be £60 million per annum, meaning that the cost of the whole investment package of just over £700 million can be recouped in less than 12 years.
2.3 In order to raise the profile of the Midland Main Line with MPs and Ministers, EMC has been working with Nicky Morgan MP (Loughborough) to gain cross party support in Parliament for the investment package. As a result, a group of 20 MPs from across the East Midlands and South Yorkshire have signed a joint letter to the Rail Minister Theresa Villiers MP urging inclusion of the whole investment package into the HLOS (enclosed in Appendix b). Attempts are also being made to secure an Adjournment or Westminster Hall debate in Parliament to raise the issue directly with Ministers.
2.4 Consideration is being given to hosting another event at the House of Commons towards the end of May 2012 in the form of smaller ‘summit meeting’ of key local authority leaders, MPs and business interests. The views of Executive Board members on this proposal are invited, along with any other thoughts on how the profile of the Midland Main Line can be raised further with Ministers in the run up to the HLOS announcement.
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3. Local Transport Bodies Consultation
3.1 On the 31 of January 2012 the Department for Transport published consultation on the devolution of funding for local authority major schemes (more than £5 million) to ‘local transport bodies’, with a closing date for comments of 2 April 2012. The full consultation document is available at: http://assets.dft.gov.uk/consultations/dft-2012-04/main-document1.pdf
3.2 The proposals represent the successor arrangements to the former Regional Funding Allocation process and are designed to become operational for the period beyond 2014-15. Under the proposals the Government is looking to directly devolve resources from the Department to ‘local transport bodies’, which will prioritise spending on local authority major schemes in a given locality. Whilst this represents a step beyond the former RFA process (where the Department remained in ultimate control of the notional ‘regional budget’), the proposals do not cover Highways Agency or other Government spending, which was considered to be a significant benefit of the previous system.
3.3 The consultation document sets out a number of options for how ‘local transport bodies’ could be structured and operate. However the Department considers that Local Economic Partnerships (LEPs) should have a central and influential role in any arrangements on the grounds that:
LEPs can help prioritisation and make trade offs between individual schemes across a wider geographic area; LEPs can influence complementary streams of investment; and LEPs understand the economic benefits of transport infrastructure.
3.4 Given the strategic nature of transport investment and its importance to all parts of the East Midlands, it is proposed that EMC submits a response to the consultation. Whilst there is likely to be a breadth of view on some of the details, discussion with a number of local transport authorities has indicated several areas of common concern which are summarised below:
Democratically accountable local transport authorities are best placed to lead and manage the prioritisation process working together as appropriate – giving due consideration to advice from LEP Boards. The potential for giving local transport authorities a greater say over priorities for Highways Agency and rail spending should be actively explored. The responsibilities for programme (as opposed to individual scheme) management should be clear, but not onerous from a local transport authority perspective.
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Experience from the RFA process indicated that additional resources will be required to undertake a rigorous prioritisation process across wider spatial area, and some allowance should be made for this in the arrangements.
3.5 The arrangements should allow for different geographies to be used in different circumstances. For example, prioritisation of rail expenditure may require local transport authorities to work together on a rail franchise area basis.
3.6 It is proposed that EMC submits a consultation based on the points set out above, subject to the outcome of discussion at the meeting.
4. Recommendations
Members of the Executive Board are invited to:
4.1 Endorse efforts to secure the upgrade and electrification of the Midlands Main Line set out under section 2 of this report, highlighting where further action may be required.
4.2 Endorse a response to the consultation on ‘local transport bodies’ based on the points set out under section 3.5 of this report, subject to any amendments agreed by Members.
Andrew Pritchard Director of Policy & Infrastructure
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Low-carbon economic growth for the South Yorkshire and the East Midlands
Upgrading and electrifying the Midland Main Line
Upgrading and electrifying the Midland Main Line is imperative for economic growth. It would reduce travelling times between key cities, meet business demand for rail freight, improve performance, reduce costs and carbon emissions, and deliver £450m in wider economic benefits. Local councils, businesses and Local Enterprise Partnerships from across the East Midlands and South Yorkshire are united in their support for this crucial investment. ______
In July 2012, Government will announce whether it will fund the proposals to Key benefits electrify the line and undertake • Cut rail industry costs by up to £60m per improvements at key locations as part of its year High Level Statement of Outputs (HLOS). • Reduce journey times between London and Even in times of austerity, the case for this Sheffield by up to 14 minutes investment is compelling. • Slash carbon emissions by up to 13,000 tonnes a year Low-carbon economic growth • Create hundreds of jobs during The environmental case is clear. Electrifying construction the line from Bedford to Sheffield could cut • Add £450 million of wider economic carbon emissions by 13,000 tonnes per benefits year . Meeting growing demand for rail • Improve freight access by providing W10 freight would lead to further emission gauge clearance throughout the route reductions as more lorries are encouraged • Widen access to HS2 from areas not directly off roads and on to rail. served by new stations
• The business case is clearer still. The Midland Main Line connects four of the largest cities and one of the fastest growing areas in England to London and each other. Reducing journey times between these cities will help businesses access markets, and improve the effectiveness of labour markets.
An independent report prepared for East Midlands Councils and South Yorkshire Passenger Transport Executive by consultants Arup estimated that upgrading and electrifying the Midland Main Line would generate £450m worth of wider economic benefits in terms of higher productivity of business.
Reducing Costs Electrification reduces significantly the costs of rolling stock, energy, track access and maintenance. The latest estimates suggest that electrifying the line from Bedford to Sheffield would save up to £60m every year in industry costs . That means within ten years of completion, the electrification of the line between Bedford and Sheffield will have paid for itself and will continue to reduce the cost of rail to the taxpayer year on year.
Faster journeys Upgrading and electrifying the line could reduce journey times by 13-14 minutes between London and Sheffield. This will also enable journey time reductions to Derby, Leicester, Nottingham and Northamptonshire, working towards locally agreed aspirations for Sheffield in 100 minutes, Nottingham in 90 and Leicester in 60.
Long-term growth The upgrade and electrification of the Midland Main Line will provide the first step towards creating a modern, efficient inter-urban rail system for the East Midlands and Sheffield City Region. It is an essential prerequisite to creating an integrated fast long distance rail system, ahead of, and alongside High Speed 2. The schematic map opposite, prepared by Arup for East Midlands Councils and South Yorkshire Passenger Transport Executive, shows the proposed upgrades and estimated journey time improvements on the line. They comprise:
• Improvements to enable higher line speeds scheduled to be delivered by 2014; • Line speed improvements and electrification of the line from Nottingham to Chesterfield via Langley Mill; • Line speed improvements and additional electrification to ‘in-fill’ the gaps on selected routes between Sheffield and Leeds; • Accommodating train lengthening for high speed services (up to 11 car formations), which will be realised through procuring an extra 13 train units; • Derby station track re-modelling; • Dore Junction re-doubling; • Further line speed improvements at Market Harborough; • Upgrading Sheffield Station, including track remodelling; • platform extensions to enable longer trains; • Re-signalling and track remodelling in the Leicester area; and • Electrification of the line from Bedford to Sheffield via Leicester and Derby, Trent Junction to Nottingham, plus Kettering to Corby.
Item 11
Executive Board 23 March 2012
IMPROVING DELIVERY OF AFFORDABLE HOUSING
Summary
This report summarises initiatives to help Councils maximise investment under the Homes and Communities Agency’s Affordable Housing Programme (AHP).
Recommendation
The Executive Board is invited to note this report and to consider establishing a Member led ‘task and finish group’ to help councils maximise opportunities for local delivery.
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1. Introduction
1.1 The 16 th December 2011 meeting of the Executive Board noted that the overall level of investment available through Affordable Homes Programme 2011-16 (AHP), which aims to increase the supply of new affordable homes in England, represents a significant cut from the previous CSR period. In addition, housing associations based in the East Midlands appeared to be less successful in making bids to the AHP than has previously been the case. As a result, delivery of affordable housing in the East Midlands may well be severely constrained over the next few years.
1.2 Bids to AHP for 2011-16 were assessed on the basis of value for money, support from the Local Authority for the bid, and availability of sites. There were no ring- fenced regional allocations and the HCA no longer collects data on an East Midlands basis.
1.3 The Executive Board supported further lobbying to increase the delivery of affordable housing across the East Midlands.
1.4 EMC is working with the HCA and the National Housing Federation to better understand the current situation, to raise the profile of need in the region and to identify opportunities to promote investment.
2. Update
2.1 Cllr David Parsons CBE met with Margaret Allen (Director, HCA Midlands Region) on 1 February. The Homes & Communities Agency (HCA) is the Government’s housing agency, accountable to DCLG. It manages the Government’s affordable housing investment programme and has an ‘enabling’ role to help councils realise their growth and regeneration priorities. The HCA’s Midlands Region covers East and West Midlands plus Milton Keynes and Bedfordshire.
2.2 The objective for the meeting was to develop an effective working relationship between East Midlands Councils and the HCA at a senior level. In particular:
To highlight the concerns of Executive Board Members about the delivery of affordable housing in the East Midlands. To seek some reassurance that the HCA understands EMC’s concerns and is taking reasonable steps to mitigate the situation for the future.
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To offer the support of East Midlands Councils at both a political and officer level to help councils and housing associations make the best of the investment and enabling support available from the HCA.
2.3 A number of characteristics of housing in the East Midlands may well have contributed to the relatively poor performance in the recent bidding round:
There is less difference between social and private rent levels throughout much of the region. Therefore, it was often more difficult for bids to appear competitive. Few big national housing associations operate in the region compared to elsewhere, so there are fewer opportunities for cross-subsidy. Rural bids often lack scale and have higher costs – it can be more difficult to put together a competitive bid in these areas which make up much of the East Midlands.
2.4 However, the HCA is already responding to concerns about the implications of the AHP allocations for the delivery of affordable housing in the East Midlands and has created 2 additional AHP schemes worth £1.5m in Lincolnshire and £1.3m in the Peak District.
3 Current & Future EMC Activity
3.1 In order to maximise delivery councils need to think about all opportunities for delivery - not just through grant. In particular:
Identifying sites. Putting in council owned land. Making use of New Homes Bonus to support new affordable housing provision. Enhanced partnership working. Developing a consensus about priorities across councils boundaries on a ‘larger than local’ basis.
3.2 This is a challenging agenda but opportunities do still exist. EMC already has a number of activities already planned which will assist councils.
Planning and Housing event for Elected Members (May 2012). Joint EMC/CIH training course ‘Housing delivery in a challenging market; delivering new housing without grants’ (July 2012). HCA Investment Manager attended EMC’s 2 nd March Strategic Housing Network to discuss maximising opportunities under the Affordable Housing Programme.
32 Item 11
A small officer working group is looking at the potential to use Local Development Orders to un-lock difficult housing sites. EMC has brokered a package of discounted design support services for EMC member authorities from the regional architecture centre, OPUN, to help improve the quality of new development.
3.3 In order to give a greater focus for this activity and to help councils make the best of investment and enabling support available from the HCA and maximise local delivery, it is proposed that a small member-led ‘task and finish group’ is established, reporting to the Executive Board.
4. Recommendation
4.1 Members consider the establishment of an affordable housing ‘task and finish group’, led by an Executive Board Member, to help councils maximise opportunities for local delivery.
4.2 Members note the rest of this report.
Andrew Pritchard Director of Policy & Infrastructure
Cathy Jones Policy Manager (Housing and Health )
33 Item 12
Executive Board 23 rd March 2012
JUDICIAL REVIEW & DEFRA CONSULTATION ON THE WASTE (ENGLAND & WALES) REGULATIONS 2011
Summary
This paper updates members on proposed changes to waste regulations that require the separated collection of recycled materials by 2015, unless it is not ‘technically, economically, or environmentally practicable’ (TEEP) to do so, or ‘necessary to meet appropriate quality standards’.
It also seeks views from the Executive Board on what kind of factors should be considered when applying the regulations across the East Midlands, to inform representations to Defra and the LGA.
Recommendation
The Executive Board is invited to:
Highlight factors relevant to applying the draft waste regulations in an East Midlands context to inform representations to Defra and the LGA.
Note the rest of this report.
34 Item 12
1. Introduction
1.1 Defra and the Welsh Government were subject to a Judicial Review during the summer of 2011 based on a challenge that the Waste Regulations 2011 (issued in April 2011) failed to comply with the EU Waste Framework Directive. The basis of the case is that EU law requires paper, metal, plastic and glass to be separately collected or sorted at the kerbside during collection. The existing UK regulations explicitly specify that ‘co-mingled’ collection is a form of separate collection, and this is the method currently used by many councils.
1.2 Rather than go to court, Defra were awarded an adjournment for six months in order to amend the regulations, which are now subject to consultation (closing date 12 April 2012). The consultation document also states that Defra will subsequently publish statutory guidance on how the amended regulations should be interpreted.
2. Key Changes
2.1 The key proposed changes to the regulations are as follows:
The requirement for separated waste collection must be consistently applied both to councils that retain in-house collection services and those that out- source to a contractor. This means that councils cannot make the contractor solely responsible for determining the way in which waste is collected.
The removal of an explicit reference to ‘co-mingled’ collection as a form of separated waste collection.
The requirement for separated collection will apply unless it is not ‘technically, economically, or environmentally practicable’ (TEEP), or not ‘necessary to meet quality standards’.
The term ‘appropriate to meet necessary quality standards’ has been amended to ‘necessary to meet the appropriate quality standards’.
2.2 If Defra’s amendments are accepted by the court it will be up to councils to justify continuing a co-mingled collection based on the TEEP criteria or to move to a kerbside sorted system. Councils could face individual legal challenges to prove that they have met the TEEP criteria. If Defra’s amendments are not accepted by the court, it is possible that all councils will be required to make separate collections of recycled materials.
35 Item 12
2.3 The Government is proposing to issue statutory guidance following the laying of the regulations, which will give further detail on how the TEEP test should be applied and define ‘appropriate’ quality standards in order to reduce the chance of councils facing legal challenge.
3. Key Issues
3.1 Clearly any change to regulations governing how recycled waste is collected could have major practical and financial implications for councils. Assuming the revised regulations are accepted by the court, the content of the statutory guidance will be of key importance and must follow promptly to minimise the period of uncertainty.
3.2 Of particular significance will be the definition of the ‘TEEP test’ and ‘appropriate quality’ which will set out the circumstances in which ‘co-mingling’ will still be an acceptable form of waste collection. The consultation document provides additional information on TEEP and quality standards, identifying the following factors as requiring consideration:
the collection on non-bottle plastics population structure and characteristics type of housing stock road width urban density contractual arrangements and commitments
3.3 The Executive Board is invited to consider how these factors might apply in different situations across the East Midlands and to highlight any other concerns that could inform representations to both Defra and the LGA.
4. Recommendations
The Executive Board is invited to:
4.1 Highlight factors relevant to applying the draft waste regulations in an East Midlands context to inform representations to Defra and the LGA.
4.2 Note the rest of this report.
Andrew Pritchard Director of Policy & Infrastructure
36 Item 13(a)
Executive Board 23 rd March 2012
EAST MIDLANDS IMPROVEMENT AND EFFICIENCY PARTNERSHIP REPORT
Summary
This report provides an update on the work of the EM IEP Board.
Recommendation
Members of the Executive Board are invited to:
Note this report and progress of projects and programmes.
Consider and endorse the future role of the RIEP Board in overseeing the wider improvement agenda.
Consider the implications for the future management of the Children’s Improvement Board programme.
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Item 13(a)
1. Progress
1.1 The Board last met on 18 January with its next meeting due on 11 April. At the January meeting, the Board received presentations from Kettering Borough Council on their transformational approach to budget setting, and in an item led by Cllr Neil Clarke, on the Climate Change Skills Fund programme funded by the Department for Communities and Local Government. The Board also considered the progress of the sub-regional and regional programmes it is funding, and gave a steer on taking these forward.
1.2 Key issues that arose from the review of progress are:
a) Member development, the new low-cost CPD programme is now up and running and 13 councils have so far signed up (see list attached at Appendix (a)). The first event will be on 27 th March on the theme of ‘Health’ and a full programme has been developed with excellent speakers booked. The event is aimed at all councillors with an interest in the health reforms and their impact on local authorities A steering group for the full CPD programme has been established, chaired by Cllr Robin Brown, Northamptonshire CC, and they have advised that future topics should include localism – new community rights, and the introduction of Police and Crime Commissioners.
b) Climate Change Skills Programme – although this programme is due to finish at the end of March 2012, Members approved a limited carry over of funds to support the completion of two elements; peer review and member engagement. In addition, the Board agreed the carry over of £100k to be used to support a bid for European funding which would support councils to take forward low carbon projects. Work on this bid is ongoing, although after initial interest some key authorities have now indicated they will not be participating as they are considering their own bid.
c) Invest to Save – part of the RIEP budget for 2011/13 was to come from the return of Invest to Save monies from a previous RIEP project with the East Midlands Property Alliance. This has been delayed due to reduced activity in the property market, which has in turn led to the scaling down of the legacy projects on leadership development, and support to councils on transformation and improvement projects. Work is ongoing to recoup this money.
d) The Board also noted the good work being carried out by the range of sub-regional regional programmes. One example of this is the Joint Children’s and Adults Collaboration and Efficiency Programme which has now identified six key projects to take forward covering issues such as collaborative education placements, care funding calculators for children’s and adult services, children’s community equipment,
38
Item 13(a)
person-centred support and market shaping, and culture change. The programme has strong governance – overseen by the lead DCS, Carol Chambers (Rutland CC) and DASS, Mick Connell (Leicestershire CC), with political oversight from Cllr Roger Begy (Rutland CC) and Cllr David Sprason (Leicestershire CC). The programme manager will be attending the EM IEP Board meeting on 11 th April to give a fuller update on this exciting work that has already attracted additional funding from the Department of Health.
2. Current Developments
2.1 The RIEP Board also gave a steer to shape ongoing work. In particular, the Board supported the initiative to develop performance management benchmarking in the East Midlands. This builds on work already begun by cities and counties, but will enable its extension to districts, whilst also working closely with the LGA to steer the development of their LG Inform system. An event was held on 26 th January attended by 26 councils, and it has been agreed to run future quarterly networks for performance managers. In addition, the EM IEP is supporting a small project to identify common performance measures useful to significant numbers of authorities to aid benchmarking.
2.2 The Board also gave a steer that future EM IEP events should be short, sharp and focused on particular topics, and agreed that the first of these should be on Welfare Reform. This has led to the paper being presented at the Executive Board today, with EM IEP events to support councils understand and tackle the implications of the reforms.
3. Moving the RIEP Forward
3.1 At its meeting in January, the Board agreed that its future work will be more focused on the wider sector improvement agenda, and confirmed that it sees a clear need for the Board to continue beyond March 2013, when current funding is due to run out, in order to carry out this wider role. The Executive Board will recall that in 2011, it updated the RIEP terms of reference to include the following:
Identifying as early as possible councils potentially in difficulty and putting in place mechanisms to support these. Representing the region on issues relevant to local government improvement and efficiency at the regional and national level, complementing the work of the Local Government Association. Promoting collaborative working across authorities to share good practice.
3.2 Since then, the RIEP Board has worked to develop stronger links with the LGA, who have supported its work on member development and on performance management. It has now been agreed that the East Midlands,
39
Item 13(a)
together with East of England, will act as pilots for this closer working relationship on the improvement agenda.
4. Sector led Improvement – Children’s Services
4.1 In keeping with the above, the EM IEP Board took an item on developments in sector led improvement activities in children’s services. The Executive Board will recall that it requested a briefing on this at its last meeting and this is attached as Appendix (b) to this paper.
4.2 Since this briefing note was prepared and the issue discussed at the RIEP Board, the national Children’s Improvement Board has been granted a further £8m funding for 2012/13, and has signalled that this leads the way for further devolution of funding through regions.
4.3 The national Children’s Improvement Board programme relies heavily on peer review and peer challenge mechanisms. Part of the LGA core offer to councils is the invitation for a corporate peer review once every three years. Other peer reviews are also proposed in the field of adult social services and climate change. This highlights the need for the RIEP Board to retain a strong oversight of these activities to ensure coherence and avoid duplication. In order to support this, the Board agreed to co-opt the lead member for children’s improvement work (Cllr Patricia Bradwell, Lincolnshire CC) and for adult social care (Cllr David Sprason, Leicestershire CC) who will attend future meetings. The RIEP has also been working with the Department for Health and the LGA on their leadership programme for Health and Well Being Boards and ensuring that this is tailored to fit the region’s needs.
5 Recommendation
Members of the Executive Board are invited to:
5.1 Note this report and progress of projects and programmes.
5.2 Consider and endorse the future role of the RIEP Board in overseeing the wider improvement agenda.
5.3 Consider the implications for the future management of the Children’s Improvement Board programme.
Cllr Martin Hill, OBE Cllr Roger Begy, OBE Chairman EMC Children Services Champion EM IEP Board
40
Item 13(a), Appendix (a)
Authorities who have signed up to the Low Cost CPD Knowledge Based Programme for Councillors
Ashfield District Council Blaby District Council Charnwood Borough Council Chesterfield Borough Council Derby City Council Gedling Borough Council Kettering Borough Council Lincolnshire County Council Newark & Sherwood District Council North East Derbyshire District Council North Kesteven District Council Northamptonshire County Council Oadby & Wigston Borough Council
41 Item 13(a), Appendix (b )
CHILDREN’S SERVICES SECTOR-LED IMPROVEMENT AND SUPPORT – THE EAST MIDLANDS APPROACH
Issue This paper sets out how children’s services sector led improvement is being taken forward in the East Midlands, following the national work of the Children’s Improvement Board, and the devolution of funding to the regional level.
Background The Children’s Improvement Board (CIB) is a partnership board set up by the Local Government Association (LGA), the Association of Directors of Children’s Services (ADCS), the Society of Local Authority Chief Executives (SOLACE) and the Department for Education (DfE). It is a direction setting and decision-making group that is responsible for the overall delivery of a new programme to develop a sector- led improvement system for children’s services.
The system for self-improvement set up by the CIB is based on the self-assessment and improvement activities of councils reinforced by rigorous peer challenge. Councils are expected to dedicate five days per annum of senior leadership time (DCSs as well as members of their leadership teams) on a reciprocal basis to undertake this peer challenge activity. DfE are funding the work of the CIB with £10.5m per annum over the next three years. The intention of the CIB is to devolve to local level as much responsibility and resource as possible to support sector led improvement.
Taking this Forward in the East Midlands The East Midlands has been at the vanguard of this programme. Very early, our Directors of Children’s Services (DCSs) made a successful regional bid to become early adopters. Outside of London, the East Midlands is the only region to have acted in this concerted, co-ordinated way. Furthermore, the East Midlands proposal went further than the national guidance – as well as the peer challenge activity outlined above, our DCSs proposed a system of unannounced assurance safeguarding visits to make a strong contribution to performance risk management, and the trialling of tools and processes to support a sector led approach.
DfE are looking for quick action on this agenda – the initial tranche of funding has to be spent by March 2012, therefore the CIB are asking that 50% of peer challenges are booked to take place by that time, and the East Midlands is making good progress on this with four reviews now timetabled to take place between January and March next year. CIB have appointed regional brokers to support this work, and for the East Midlands this will be Christine Cassell, well known to our DCSs through her former work at the Government Office and at Leicestershire County Council.
Devolution to regions of resources and responsibilities Since September, CIB has been developing its overall approach by working with early adopters and through this has identified that working across regions provides momentum for individual councils to get started. Furthermore, they have established
42
Item 13(a), Appendix (b ) that regional governance looks to be the right way forward – and this fits well with the joined up approach taken by our DCSs.
CIB have therefore decided to make an early start on devolution ahead of the first full year of operating the new system in 2012/13. £1.5m nationally is to be devolved, with at least £96k going to each region, with the remainder to be decided through a process of formula allocations and negotiations. For the East Midlands, the accountable body for this funding is Leicestershire County Council, and the Memorandum of Understanding has been signed by Cllr Roger Begy, EMC Children’s Services Champion.
To support this work, CIB earlier this year asked for member and officer leads to be appointed in each region. In the East Midlands, the following leads were agreed:
Lead Leader – Cllr Roger Begy, Leader, Rutland CC Lead Portfolio Holder – Cllr Patricia Bradwell, Lincolnshire CC (Deputy – Cllr Ivan Ould, Leicestershire CC) Lead Chief Executive – John Sinnott, Leicestershire CC Lead DCS – Anthony May, Nottinghamshire CC.
Jan Sensier East Midlands Councils 20 December 2011
43
Item 13(b)
Executive Board 23 rd March 2012
EAST MIDLANDS STRATEGIC MIGRATION PARTNERSHIP BOARD REPORT
Summary
This report updates Members on the work of East Midlands Strategic Migration Partnership Board for the period from December 2011-February 2012.
Recommendation
Members of the Executive Board are invited to note this report.
44
Item 13(b) 1. Introduction
1.1 The East Midlands Strategic Migration Partnership provides a regional advisory, development and consultation function for member organisations from the statutory, voluntary, community and private sectors - for the co-ordination and provision of advice, support and services for migrants.
1.2 East Midlands Strategic Migration Partnership is funded by the United Kingdom Border Agency (UKBA) Enabling Grant. The East Midlands Strategic Migration Partnership is one of eleven UK partnerships.
1.3 This report updates members on the progress and work to date of the Board.
2. Background
2.1 The East Midlands Strategic Migration Partnership has been in existence since 2007. In April 2010 it became a Board of East Midlands Councils.
2.2 The Board is comprised of 4 members:
Councillor Simon Galton Leicestershire County Council (Chair) Councillor Geoff Stevens Derbyshire Dales (Vice Chair) Councillor Paul Kenny Boston Borough Council Councillor Paul Robinson Lincolnshire County Council
2.3 Our key partners at the moment represented on the EMSMP Board and standing sub-groups are:
Local Authorities Public Health Police EMC Jobcentre Plus ACAS Priority Properties One East Midlands Refugee Support TUC Refugee Action NIACE
2.4 Others, including service users, attend our general stakeholder forum, ad-hoc and occasional sub-groups and workshops.
3. East Midlands Strategic Migration Partnership Board
3.1 The Board last met on 15 th February 2012 and featured the analysis of a survey of member organisations. The results indicate that the priorities for the Board for 2012/13 should be refugee integration, social cohesion, ESOL (English for Speakers of Other Languages), No Recourse to Public Funds and Health issues. There was a detailed discussion on the impact of the Roma community in the East Midlands and this issue has been taken forward to the LGA Migration, Asylum and Refugee Task Group and will be raised at the forthcoming National Migration Group.
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Item 13(b)
3.2 At the Board meeting the five task groups provided an update report on their work since the last Board meeting. The five task groups are Health, No Recourse to Public Funds, Unaccompanied Asylum Seeking Children, Asylum Support and Employment and Skills.
4. Work Programme and Key Priorities for 2011/12
4.1 As discussed in the last report to the Executive Board, a draft project plan has been submitted to UKBA for a project to identify the numbers of people who have No Recourse to Public Funds and are supported by local authorities in the East Midlands. The partnership will work closely with UKBA to prioritise and conclude supported cases. The intention is deliver cash savings for local authorities and to develop shared protocols and models of best practice within and between local authorities. A programme of training and development will then be implemented to enhance the knowledge of practitioners in what is a complex and fast moving area of case law.
4.2 A meeting took place on 5 th March between members of the Strategic Migration Partnership Board and the Regional Director of UKBA to confirm the arrangements for the Partnership going forward. UKBA confirmed the intention to fund the Partnership for a further year and to have early discussions about the funding arrangements for 2013/14.
4.3 UKBA have been undertaking a procurement process for the new contract arrangements for support to asylum seekers when the current contractual arrangements end during this year.
4.4 The overall aim of the commercial and operational managers procuring asylum support services (COMPASS) project is to provide ongoing contract provision for asylum support services, in accordance with government policy, beyond the current arrangements which are due to expire during 2012. The following services are currently within the scope of COMPASS: initial and dispersed accommodation and associated services for asylum applicants; and transport for asylum applicants.
4.5 The UK Border Agency have announced that G4S Regional Management (UK and I) Ltd is the preferred bidder for the East Midlands for the COMPASS programme and a period of due diligence is underway and contract sign off is due imminently. East Midlands Strategic Migration Partnership have continued discussions with stakeholders including local authorities housing, children’s and adults services and cohesion teams, health, police and voluntary sector to support effective planning and management of the transition of service users from current contracts to COMPASS contracts to ensure minimal disruption. The EMSMP will provide further information about the COMPASS transition programme and the likely impact on local authorities across the East Midlands as further details are made available.
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Item 13(b) 5. Priorities 2012/13
5.1 The EMSMP business plan for 2012/13 will be presented to the Board in April. However the three key priorities for next year are:
a) The delivery of the NRPF project outlined above. The EMSMP Board will act as the Project Board for the successful delivery of the project outcomes.
b) The facilitation of the relationship between the preferred bidder for the COMPASS programme, local authorities, health, police and voluntary sector. The EMSMP Board through the Asylum Support Task Group will facilitate the programme of transitions in order to minimise the impact on service users and those organisations supporting them.
c) To work with partners to determine the future role of the migration partnership beyond 2013. The EMSMP board will work with UKBA, local authorities, health, police and the voluntary sector to determine future priorities and how best these should be met.
6. Recommendation
6.1 Members are asked to note the contents of the report.
Cllr Simon Galton Chair East Midlands SMP Board
47
Item 13 (c)
Executive Board 23 rd March 2012
REGIONAL EMPLOYERS’ BOARD REPORT
Summary
This paper updates Members on the work of East Midlands Councils’ Regional Employers’ Board.
Recommendation
Members of the Executive Board are invited to note this report.
48 Item 13 (c)
1. Introduction
1.1 The Regional Employers’ Board leads the development of employment issues and forms the Employer’s side of the Regional Joint Council. This report updates members on the progress and work of the Board to date.
1.2 Membership of the Regional Employers’ Board for 2011/2012 is: Cllr I Fleetwood, Lincolnshire CC – Chair Cllr K Savidge, NE Derbyshire DC – Vice Chair Cllr EA Webster-Williams, Blaby DC Cllr D Sprason, Leicestershire CC Cllr S Spencer, Derbyshire County Council Cllr R Parkinson, Erewash BC Cllr M Malin, Kettering BC Cllr A Roberts MBE, Newark and Sherwood DC Cllr B Montgomery, Rutland CC Cllr D Bill, Hinckley & Bosworth BC Cllr F Martin MBE. East Lindsey DC Cllr G Oxby, Bassetlaw DC Cllr J Knight, Ashfield DC Cllr K Richards, South Derbyshire DC Cllr R Metcalf, Lincoln City
2. Employers’ Board Meetings
2.1 There has not been a meeting of the Regional Employers’ Board since the last Executive Board. The next meeting will take place on 23 rd April 2012.
3. Regional Joint Council
3.1 The Joint Council is formed by the Employers’ Board and Joint Trades Unions. The Regional Joint Council last met on 17 th October 2011.
3.2 A meeting was due to be held on 6 th February 2012, but the Joint Trade Unions side proposed that a meeting at that time was not necessary, as it felt that it had already been provided with sufficient opportunity at previous meetings to put forward its concerns and views on local government pay and pensions.
4. National Association of Regional Employers
4.1 The Vice-Chair of the Regional Employers’ Board and the Director of HR & Councillor Development for East Midlands Councils attended a meeting of the National Association of Regional Employers on 20 th January 2012. The meetings enable regional employers’ organisations from across the country to share
49 Item 13 (c)
practice, information and resources and to discuss developments on employment matters, including pay, at national and European level.
4.2 The meeting provided information on an on-line facility for local authorities to benchmark pay. The data is available in real-time, without the usual delays of salary surveys, and provides extremely useful information to support equal pay, inform pay policies and establish market rates for different roles. Pay data can be provided by type of role, type of authority, region and through ‘clubs’ of authorities. East Midlands Councils will be providing this facility free of charge to its member authorities and there will be no licence costs for 2 years for authorities signing up to the system by July 2012.
5. European Level Employment Issues
5.1 East Midlands Councils are members of PPE (the Partnership of Public Sector Employers in Europe). This body represents the interests of public sector employers through its membership of CEEP, which is one of the social partners that develops and negotiates on European Directives. Cllr Ian Fleetwood, Chair of the Regional Employers Board, is currently a vice-president of PPE.
5.2 Current developments at European level incude a review of the working time directive and on procurement. Discussions between employers and trade unions at European level are taking place, and the interests of local government employers are represented through the involvement of one of the regional employers organisation’s Director as a member of the negotiating committee. The treatment of on-call time and paid annual leave were issues for debate between employers’ side.
5.3 In terms of procurement, a UK response to the draft Directive has been sent in support of the LGA response. There has been a demonstrable effort to balance the fundamental aims of the procurement directives and the need to assist public sector organisations in buying goods and services efficiently and cost effectively in the current economic climate. The proposed reforms will go some way to making public procurement less bureaucratic, more reflective of the economic requirements of contracting authorities and, to some extent, quicker. It is also helpful that the draft Directive clarifies and expands upon some of the subjects that have previously been litigated, although there’s a lack of precision in other areas that will undoubtedly give rise to case law. There are areas in the draft Directive that have not brought the improvements originally hoped for, eg in relation to framework agreements. Given the benefits of the draft Directive, it’s unfortunate that there’s a significant time lag between it being published and the deadline date for implementation into national law.
50 Item 13 (c)
6. National Pay Developments
6.1 The Board will be aware, through Circulars distributed by East Midlands Councils, that there has been a decision not to make a national pay award offer for local government services employees. This reflects the views of many authorities who attended a meeting with the national negotiators which was hosted by East Midlands Councils in November 2011.
6.2 The requirement within the Localism Act for councils to agree and publish pay policy statements has led to a number of councils requesting advice and support from East Midlands Councils. A free workshop was arranged in February 2012 to provide advice and information, with expert input from the LGA’s workforce team.
7. Councillor Development
7.1 A programme of councillor development for the region has been established with the benefit of RIEP funding. The range of councillor development activities being provided is based on the requests made from Leaders and Chief Executives to ensure that the support is relevant and meets requirements. It includes:
A CPD knowledge-based programme offering two places for councillors from each authority at six events over the next year. The first event is taking place on 27 th March and is focussed on Health. It will enable councillors to access key speakers on a range of issues on the health agenda that are relevant to the councillor role. Opportunities for councillors to gain accreditation for the development and activity that they undertake within their roles. The programme includes development at three different levels to take account the different ranges of experience of councillors. Free skills programmes for councillors offered on a sub-regional basis.
8. Recommendations
8.1 Members of the Executive Board are invited to note the contents of the report.
Councillor Ian Fleetwood Chair of the Regional Employers Board
51 Item 14
Executive Board 23 rd March 2012
Report of EMC Management Group
Summary
This report is to be considered in private session.
The following report from EMC Management Group proposes that it is timely for East Midlands Councils’ governance and accountability arrangements to be reviewed. It provides background to this proposal and suggested process and timescales.
Recommendations
Members of Executive Group are invited to:
Note this report from the Management Group and the action it has taken.
Approve a review of EMC’s governance and accountability arrangements.
Consider and agree the proposed process and timescales for the review of EMC governance and accountability.
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Item 14
1. Background
1.1 The membership of EMC Management Group is as follows:
Cllr David Parsons Chairman EMC and Executive Board Cllr Jon Collins Vice Chairman EMC Executive Board Cllr Neil Clarke Vice Chairman EMC Executive Board Mayor Tony Egginton Vice Chairman/Independent Group Leader Cllr Martin Hill Vice Chairman EMC/Conservative Group Leader Cllr Fiona Martin Vice Chairman EMC/Liberal Democrats Group Leader Cllr Rob Parker Vice Chairman EMC/Labour Group Leader
1.2 At the request of EMC’s accountable body, Leicestershire County Council, an internal audit report was considered at a special meeting of members of the Management Group on 16 th January 2012.
1.3 The recommendations in the report were addressed to the statutory officers of Leicestershire County Council. They contained a recommendation about reporting the findings to the appropriate governance forum of the EMC. The Leicestershire officers had requested a discussion with the Management Group before any reporting within the County Council’s committee process. Members of the Management Group considered all the recommendations in the report.
1.4 On the immediate issues in the report, the Management Group agreed that it should take appropriate action through the political group concerned both in terms of what had happened and future transparency.
1.5 In regard to the remaining recommendations in the report and where they relate directly to East Midlands Councils, Members are informed that the Management Group discussed these at its meeting on 20 th February 2012 and are now acting upon them, including its recommendation to review EMC governance and accountability arrangements.
2. Proposed Review of Governance and Accountability
2.1 The current East Midlands Council’s constitution, whilst only agreed in July 2010, contains no reference to the Executive Board, the Management Group or corresponding roles and responsibilities. It also included specific references to emda and GOEM (organisations recently abolished by Government).
2.2 This was correct at that point in time as the functions of the current Executive Board were undertaken by the East Midlands Leaders’ Board – with its own defined statutory powers under the Local Democracy, Economic Development and Construction Act (2010). However, while East Midlands Councils has evolved in response to the new institutional and political
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Item 14
environment, its organisational governance has not been adequately amended to reflect this. Consequently, the Executive Board currently operates without its own specifically-defined Terms of Reference.
2.3 It was agreed by the Executive Board on 23 rd September 2011 that changes were required to address this situation, and with the additional Vice Chair role agreed from within district representatives, it was advised that specific terms of reference for the Executive Board should be developed.
2.4 More recently, issues relating to governance and accountability have arisen from an internal audit report (as referred to in Section 1 of this report) and the Corporate Governance Committee of Leicestershire County Council.
2.5 Consequently, the Management Group recommends to the Executive Board that it is timely for East Midlands Councils’ governance and accountability arrangements to be reviewed, to include:
a) The roles and responsibilities of EMC Management Group. b) The roles and responsibilities of EMC Executive Board. c) Any consequent changes required to EMC constitution. d) The role and responsibilities of an accountable body.
2.6 For information, the EMC Management Group Terms of Reference are attached as Appendix (a). Although the terms of reference were revised and adopted in June 2011, some doubts have arisen as to their appropriateness.
2.7 There is first a question as to the status of the Management Group. On paper, its responsibilities are wide-ranging; a leadership body, advisory body, responsibilities for finance and performance, an investigatory body and deals with audit recommendations. However, there is no reference to ‘governance’ per se and neither is it clear what executive authority the Management Group has and nor is it clear in some instances, whether it reports to the Executive Board.
2.8 It was also agreed in June 2011 that the Management Group could meet ‘virtually’, which questions its status as a body with any formal standing in the EMC decision-making structure. The Constitution of EMC, although its states that meetings “shall be open to the public and documentation widely available”, means in practice that EMC operates outside local government law, i.e. different from the requirements of its member authorities. Therefore, a review of governance and accountability arrangements will need to ensure that there is a fit between the Constitution and the terms of reference of boards and associated groups.
2.9 It would be helpful for the Executive Board to clarify if the Management Group is to be a formal body or whether it should operate only as an informal
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‘Leaders’ Group’. There is also the question of whether meetings should be open to the press and public. The terms of reference are silent on this point.
2.10 It would also be helpful to clarify the role of the accountable body. Leicestershire County Council has been the accountable body for EMC since April 2006. EMC is an unincorporated association operating in the nature of a consortium of ‘club’ which is hosted by Leicestershire County Council. This means that while EMC is a membership and member-led body, in practical, legal terms, LCC is the accountable body for the purposes of grant distribution from Government, employs the staff at EMC, enters into contracts on behalf of the consortium and holds the interests in land for the EMC offices. From a legal perspective, EMC is part of Leicestershire County Council.
2.11 Clarification could usefully be sought on the roles of the accountable body’s statutory officers on the matters referred to in paragraph 2.10, including line management, and, separately on the sharing of risk and financial liability in respect of EMC’s operations.
3. Process and Timescales
3.1 The Management Group recommends that under its direction, EMC Corporate Governance Manager and Executive Director should lead the review of EMC governance and accountability.
3.2 Leicestershire County Council, as EMC accountable body, will be consulted during the course of this review.
3.3 EMC Executive Board should formally consider the conclusions and recommendations of any review in advance of formal consideration and adoption by EMC at its AGM in July 2012. Consequently, the following schedule is proposed:
23 rd March 2012 – Executive Board considers and is invited to agree a review of EMC governance and accountability.
May 2012 (tbc) – Management Group to consider and recommend to the Executive Board the conclusions of the governance and accountability review.
22 nd June 2012 – the Executive Board to consider and, subject to their agreement, refer the conclusions and proposed changes for formal adoption at EMC AGM in July 2012.
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4. Recommendations
Members of Executive Group are invited to:
4.1 Note this report from the Management Group and the action it has taken.
4.2 Approve a review of EMC’s governance and accountability arrangements, to include: a) The roles and responsibilities of EMC Management Group. b) The roles and responsibilities of EMC Executive Board. c) Any consequent changes required to EMC constitution. d) The role and responsibilities of an accountable body.
4.3 Consider any further particular issues beyond those referred to in this report to be included in the scope of the review.
4.4 Consider and agree the proposed process and timescales for the review of EMC governance and accountability as detailed in section 3 of this report.
Report of EMC Management Group
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Item 14, Appendix (a)
Executive Board 23 rd March 2012
Management Group Terms of Reference – Revised February 2011
Membership
1. The group will consist of 7 members - the four political group leaders of EMC plus the joint Chair and the Vice-Chair of East Midlands Councils/Executive Board plus a District Representative. A quorum shall be four members.
2. 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. The Chair shall have a casting vote in the event of a tied vote.
Attendance at Meetings
3. The Corporate Governance Manager and the Executive Director of EMC shall normally attend meetings. A representative of the accountable body (Leicestershire County Council) has a right to attend should they so wish. The external auditor and senior representatives shall attend meetings as requested. However, at least once a year the Group may, at its discretion, meet with the internal and external auditors without EMC Executives present.
Frequency of Meetings
4. Meetings shall be held quarterly, prior to any meetings of the Executive Board., and additionally as required. The group can also meet “virtually” by means of e- mail, telephone and video conferencing as appropriate. The external auditors may request a meeting if they consider that one is necessary.
Authority
5. The 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.
6. The Group is authorised by the Executive Board and East Midlands Council to obtain outside legal or other independent professional advice and to secure the
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attendance of outsiders with relevant experience and expertise if it considers this necessary.
Duties
7. The duties of the Group shall be:
To provide political leadership to the officers of East Midlands Councils, agreeing the composition of agendas for both the Executive Board and full councils meetings, and identifying issues to be raised as appropriate;
To provide political lines of communication to members of East Midlands Councils, for example using members as points of reference in EMC publications as appropriate;
Identifying political representatives to East Midlands Councils Boards;
To ensure that an adequate risk management framework and associated control environment is in place.
To ensure that the financial and non-financial performance is properly monitored.
To have proper oversight of the financial reporting processes.
To have responsibility for establishing and recommending policy on all finance and audit matters.
To review on a quarterly basis non financial performance, and the half year and annual financial statements before submission to the Executive Board and East Midlands Councils, focusing particularly on,
(i) any changes in work programmes and/or accounting policies and practices (ii) significant adjustments resulting from any audit (iii) the ‘going concern’ assumption (iv) compliance with accounting standards (v) compliance with legal requirements (vi) review and update of the Risk Register
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).
To consider the major findings of internal investigations and the response of EMC executive.
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To consider other issues, as identified by the Executive Board and East Midlands Councils.
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