COMMITTEE REF:
EX/06/19
NOTICE OF MEETING
COMMITTEE : EXECUTIVE
DATE : MONDAY, 24 JUNE 2019
TIME : 18:00
PLACE : COMMITTEE ROOM 3 TOWN HALL, LUTON, LU1 2BQ
COUNCILLORS : SIMMONS (CHAIR) M. HUSSAIN BURNETT A. KHAN CASTLEMAN MALCOLM HOPKINS SHAW J. HUSSAIN TIMONEY
QUORUM : 3 MEMBERS
Contact Officer: Matthew Hussey (01582 546032)
INFORMATION FOR THE PUBLIC
PURPOSE: The Executive is the Council’s primary decision-making body dealing with a range of functions across the Council’s activities and services.
This meeting is open to the public and you are welcome to attend.
For further information, or to see the papers, please contact us at the Town Hall:
IN PERSON, 9 am to 5 pm, Monday to Friday, or
CALL the Contact Officer (shown above).
An induction loop facility is available for meetings held in Committee Room 3.
Arrangements can be made for access to meetings for disabled people.
If you would like us to arrange this for you, please call the Contact Officer (shown above).
NOTE: Members of the public are entitled to take photographs, film, audio-record and report on all public meetings in accordance with the Openness of Local Government Bodies Regulations 2014. People may not however act in anyway considered to be disruptive and may be asked to leave. Notice of these rights will be given verbally at the meeting, as appropriate.
Page 1 of 132 AGENDA
Agenda Subject Page Item No.
EMERGENCY EVACUATION PROCEDURE
Committee Rooms 1, 2, 4 & Council Chamber: Turn left, follow the green emergency exit signs to the main town hall entrance and proceed to the assembly point at St George's Square.
Committee Room 3: Proceed straight ahead through the double doors, follow the green emergency exit signs to the main Town Hall entrance and proceed to the assembly point at St George's Square.
INTRODUCTIONS, PHOTOGRAPHY, FILMING & AUDIO RECORDING
1. APOLOGIES FOR ABSENCE
2. PUBLISHED RECORD OF THE MEETING
1. 23rd April 2019 5 - 12
2. 21st May 2019 13 - 34
SECTION 106, LOCAL GOVERNMENT FINANCE ACT 1992
Those item(s) on the Agenda affected by Section 106 of the Local Government Finance Act 1992 will be identified at the meeting. Any Members so affected is reminded that (s)he should disclose the fact and refrain from voting on those item(s).
DISCLOSURES OF INTERESTS
Members are reminded that they must disclose both the existence and nature of any disclosable pecuniary interest and any personal interest that they have in any matter to be considered at the meeting unless the interest is a sensitive interest in which event they need not disclose the nature of the interest.
A member with a disclosable pecuniary interest must not further participate in any discussion of, vote on, or take any executive steps in relation to the item of business.
A member with a personal interest, which a member of the public with knowledge of the relevant facts would reasonably regard as so significant that it is likely to prejudice the member’s judgment of the public interest, must similarly not participate in any discussion of, vote on, or take any executive steps in relation to the item of business.
Page 2 of 132
Disclosable pecuniary interests and Personal Interests are defined in the Council’s Code of Conduct for Members and Co-opted members.
3. BUSINESS NOT COVERED BY CURRENT FORWARD PLAN: GENERAL EXCEPTION
The Executive Leader to report on any business which it is proposed should be considered by the Executive following compliance with Regulation 10 of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012.
4. BUSINESS NOT COVERED BY CURRENT FORWARD PLAN: SPECIAL URGENCY
The Executive Leader to report on any business which it is proposed should be considered following compliance with Regulation 11 of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012.
5. REFERENCES FROM COMMITTEES AND OTHER BODIES
6. RECOMMENDATIONS FROM SCRUTINY REVIEWS
7. PETITIONS
BUSINESS ITEMS
CUSTOMER & COMMERCIAL (FINANCE)
8. TREASURY MANAGEMENT DECISIONS ON 35 - 48 BORROWING & INVESTMENTS TO OPTIMISE THE COUNCIL'S FINANCIAL POSITION (Report of the Service Director, Finance & Audit)
9. 2018/19 PROVISIONAL REVENUE & CAPITAL 49 - 126 OUTTURN (Report of the Service Director, Finance & Audit)
PLACE & INFRASTRUCURE (PLANNING & TRANSPORT)
10 DELEGATED POWERS DEVELOPMENT CONSENT 127 - 132 ORDER (DCO) FOR LONDON LUTON AIRPORT (Report of the Service Director, Planning & Economic Growth)
11. REGULATION 4 OF THE LOCAL AUTHORITIES (EXECUTIVE ARANGEMENTS)(MEETINGS & ACCESS
Page 3 of 132 TO INFORMATION)(ENGLAND) REGULATIONS 2012 To consider whether to pass a resolution under Regulation 4 of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012 to exclude the public from the meeting during consideration of the item(s) listed below as it is likely, that if members of the public were present during the transaction of the item(s), exempt information within the meaning of the Paragraph(s) of Part 1 of Schedule 12A to the Local Government Act 1972 indicated next to the item, would be disclosed to them.
12. PUBLISHED RECORD OF THE MEETING
1. 23rd April 2019
Paragraph (3) - Information relating to the financial or business affairs of any particular person (including the authority holding that information).
EXECUTIVE LEADER
13 LONDON LUTON AIRPORT LIMITED BUSINESS CASES FOR THE BARTLETT SQUARE DEVELOPMENT & BUSINESS, SKILLS AND INNOVATION CENTRE & DEBENTURE LOAN FACILITY
Paragraph (3) - Information relating to the financial or business affairs of any particular person (including the authority holding that information).
NOTE: RESCHEDULED ITEMS
Business Growth Initiatives - Deferred to a future meeting Active Luton SSC - Information Communication Technology Proposal - Deferred to 22nd July 2019
Note: Five days’ notice is hereby given of items to be considered in private as required by Regulations (4) and (5) of the Local Authorities (Executive Arrangements) Meetings and Access to Information) (England) Regulations 2012.
Details of any representations received by the Executive about why any of the above exempt decisions should be considered in public: none at the time of publication of the agenda. If representations are received they will be published separately, together with the statement given in response.
Page 4 of 132 AGENDA ITEM
EXECUTIVE – 23rd April 2019 AT 6.00 P.M. 2.1 PRESENT: Councillor Timoney (Deputy Leader), Councillors: Akbar, Burnett, Castleman, A. Khan, Hopkins, Hussain, Malcolm and Shaw
APOLOGIES: Councillor Simmons
IN ATTENDANCE: Councillors Franks and Pedersen
DECISIONS SHEET Exemptions from the call-in process: (1) If the Council would be likely to suffer legal prejudice (2) If the Council would be likely to suffer financial prejudice (3) Where the calling-in of the decision would result in the decision not being capable of implementation at all (4) Where the decision is to in incur or forego expenditure of £5,000 or less except where the decision has been taken otherwise that in accordance with the Council's Policy Framework or any policies, practices, or procedures adopted by the Executive (5) Where the decision results from a reference or report or recommendation from the Overview and Scrutiny Board or from a Task and Finish Group. (6) Where the decision will be the subject of a recommendation to the Full Council
AGENDA SUBJECT DEC. DECISION AND REASONS FOR DECISION OTHER OPTIONS ITEM/ NO. CONSIDERED WARD(S) AFFECTED 2.1 Published decision sheet EX/49/19 That the published decisions of the meetings of of the Executive on 25th the Executive held on 25th March 2019 be March 2019 agreed as a correct record of the meeting and sign by the Deputy Leader. 3.1 M1-A6 Road Planning EX/50/19 (i) That the Corporate Director, Place and Not to respond to the Application Response Infrastructure be instructed to submit Luton request by Central Council’s response to the planning Bedfordshire Council
Page 5 of 132 application to Central Bedfordshire Council for input on the scope set out in Appendix A to the report (Ref 3.1) of the proposed Environmental Impact (ii) That the Corporate Director, Place and Assessment Infrastructure be delegated in consultation with the Executive Member for Place and Infrastructure (Planning and Transport) to make minor amendments and finalise the response to the planning application prior to its submission.
Reason: To ensure that in reaching a decision on the planning application, Central Bedfordshire Council fully and critically considers the potential impact of the proposed development on Luton residents and businesses
(NOTE: The above item was considered by the Executive in compliance with Regulation 15 (General Exception) of the Local Authorities (Executive Arrangement) Meetings and Access to Information) (England) Regulation 2012)) 3.2 Preventing Violence EX/51/19 (i) That the preventing violence against women The Executive could All Against Women and Girls and girls policy set out in Appendix A to the decide not to approve Policy report of the Service Director, Public the policy – this is not Protection (Ref 3.2) be formally adopted into recommended as the the Council’s policy framework. support of the Council’s Executive is (ii) That all Service Directors be requested to critical in providing identify and nominate a departmental strong leadership and champion to facilitate the action plan on directing this agenda
Page 6 of 132 behalf of their department.
Reason: To ensure the council’s response to violence against women and girls is robust and will work towards longer term change
(NOTE: The above item was considered by the Executive in compliance with Regulation 15 (General Exception) of the Local Authorities (Executive Arrangement) Meetings and Access to Information) (England) Regulation 2012)) 4.1 Resource & Waste EX/52/19 That the Corporate Director (Place & That a technical All Strategy – National Infrastructure), following consultation with the response is provided, Consultations Executive Member with portfolio responsibility this was rejected as for Housing & Environment be authorised to was not submitting a submit a response to the national consultations response. covering the Resource & Waste Strategy on behalf of the council by the 12 May for one and the other three by 13 May 2019.
(NOTE: The above item was considered by the Executive in compliance with Regulation 40 (Special Urgency) of the Local Authorities (Executive Arrangements) Meetings and Access to Information)(England) Regulations 2012).
8. Post 16 Transport and EX/53/19 That the Council’s Post 16 Transport and Travel a) To reject the All Travel Support to Support to Education and Training Policy 2019- recommendation Education and Training 20 be agreed for publication on the Council’s b) To request further Policy 2019-20 website. information
Page 7 of 132 Reason: To make arrangements for the provision of transport as consider necessary in respect of adults aged 19 and over; relevant younger adults with education, health and care plan and for young adults for which the local authority has a duty of care. 9. Revenue and Capital EX/54/19 (i) That the final monitoring for the General To reject the All Budget Monitoring Final Fund accounts forecasts a net underspend of recommendations and Forecast 2018/19 £1.016 million is for 2018/19, supporting the request further earlier forecast at quarter 3 of achieving a information final position that is within the original budget set for the year be noted.
(ii) That the proposal to transfer the final underspend for 2018/19 to a new specific reserve to provide cover for emerging future cost and income risks on the property estate, subject to affordability when the final outturn position is confirmed be noted.
(iii) That the final forecast includes £0.247 million of contributions to reserves for budget underspends in the current year requested for carrying forward to 2019/20, subject to further review and approval by the Executive when the outturn position is confirmed and reported be noted.
(iv) That the full forecast movements in Reserves arising from overall service activity during 2018/19, subject to review and approval by
Page 8 of 132 the Executive when the outturn position is confirmed and reported be noted.
Reason: To regularly report the latest forecast outturn position for the current year and toward the medium term financial strategy and to put corrective measures in place in order to achieve and maintain a balanced budget. 10 Amalgamation of Cheynes EX/55/19 That the amalgamation of Cheynes Infant a) To reject the Sundon Infant School and Sundon School and Sundon Park Junior School be proposals Park Park Junior School approved following the publication of statutory b) To approve the proposals as set out in Appendix A to the report proposals of the Director of People (Ref: 10) c) To approve the proposals with a Reason: To create an all through primary school modification utilising existing premises of Cheynes Infant having consulted School and Sundon Park Junior Scchool under the governing the leadership of a single headteacher body (e.g. the proposed implementation date) 11. Multi Agency Safeguarding EX/56/19 That the proposed new operating arrangements In the early stages of All Arrangements for the Luton Safeguarding Children’s Board development (May (LSCB) set out in Appendix A to the report of 2018) a senior group the Director of People (Ref 11) be approved to of officers across take effect from 1st September 2019. Bedfordshire considered 3 different Reason: To streamline some activity and avoid options for the new duplication arrangements, one focussing on increased Pan
Page 9 of 132 Bedfordshire activity with a local board meeting twice a year and another where the Pan Bedfordshire activity primarily focused on specific work related to priorities with the other functions being retained locally. In discussion they agreed the proposals provide the best balance of local and county wide activity whilst improving efficiency 12 Local Authorities EX/57/19 A resolution was passed under Regulation 4(2) All (Executive Arrangements) of the Local Authorities (Executive (Meetings and Access to Arrangements) (Meetings and Access to Information) (England) Information) (England) Regulations 2012 to Regulations 2012 exclude the public from the meeting during consideration of the item(s) listed below as it is likely, that if members of the public were present during the transaction of the item(s), exempt information within the meaning of Paragraph(s) of Part 1 of Schedule 12A to the Local Government Act 1972 indicated the item would be disclosed to them. 13 London Luton Airport EX/58/19 That the recommendations in the report of the
Page 10 of 132 Concession Agreement Director of Customer and Commercial (Ref 13) and Supplemental be granted. Agreement 2017 14 Proposed Property EX/59/19 That the recommendation in the report of the All Investment Service Director, Property and Construction (Ref 14) be approved.
The meeting ended at 6.30 pm. DATE OF PUBLICATION: 25th April 2019
Page 11 of 132 EXEMPT INFORMATION SUMMARY OF THOSE MATTERS WHICH BY VIRTUE OF PART 1 OF SCHEDULE 12A OF THE LOCAL GOVERNMENT ACT 1972 MAY BE DISCUSSED IN PRIVATE
Paragraph No.
1. Information relating to any individual.
2. Information which is likely to reveal the identity of an individual.
3. Information relating to the financial or business affairs of any particular person (including the authority holding that information).
4. Information relating to any consultations or negotiations, or contemplated consultations or negotiations, in connection with any labour related matter arising between the authority or a Minister of the Crown and employees of, or office holders under, the authority.
5. Information in respect of which a claim to legal professional privilege could be maintained in legal proceedings.
6. Information which reveals that the authority proposes:
(a) to give under any enactment a notice under or by virtue of which requirements are imposed on a person; or (b) to make an order or direction under any enactment.
7. Information relating to any action taken or to be taken in connection with the prevention, investigation or prosecution of crime.
Page 12 of 132 AGENDA ITEM
EXECUTIVE 2.2 21st May 2019 at 6.32 p.m.
PRESENT: Councillor Simmons (Executive Leader); Councillors Castleman, Burnett, Hopkins, J. Hussain, M. Hussain, A. Khan, Malcolm, Shaw and Timoney.
APPOINTMENT OF DEPUTY EXECUTIVE LEADER (REF: 2)
EX/60/19 The Executive Leader reported that she had appointed Councillor Timoney as Deputy Executive Leader for the ensuing Municipal Year.
ALLOCATION OF EXECUTIVE PORTFOLIOS (REF: 3)
EX/61/19 The Executive Leader reported that she had allocated Executive Portfolios as detailed in Appendix 1/19 to these minutes.
REPRESENTATIVES ON OUTSIDE ORGANISATIONS (REF: 8.1)
EX/62/19 Resolved: That the appointment of representatives to serve on outside organisations as detailed in Appendix 2/19 to these Minutes be approved.
APPOINTMENTS TO OTHER BODIES (REF: 9.1)
EX/63/19 Resolved: That the appointments to other bodies as detailed in Appendix 3/19 to these Minutes be approved.
DATES AND TIMES OF MEETINGS (REF: 10.1)
EX/64/19 Resolved: That the dates and times of meetings insofar as they relate to meetings of the Executive be approved.
CONSULTATION WITH MEMBERS (REF: 11)
EX/65/19 Resolved: That the Executive Leader and the relevant Portfolio holder be appointed as the Members of the Executive whom Chief Officers are required to consult before taking action not covered in the Scheme of Delegation to Officers.
(Note: The meeting ended at 6.34 p.m.)
Page 13 of 132
Page 14 of 132 EXECUTIVE – 21ST MAY 2019 APPENDIX 1/19
ALLOCATION OF EXECUTIVE PORTFOLIOS – 2019/20
Name: Councillor Hazel Simmons Portfolio: Leader of Luton Borough Council Specific Responsibilities: Chief Executive’s - Leader
Eastern Economic Heartland Legal/Monitoring Officer Democracy and Member Support Data Protection/FOI/ Member Training & Development Equalities Electoral Registration Performance* Regional/National Government Policy Budget* Partnerships (including Health & Wellbeing Investment Framework* Board)* (Chair) (Including Major Projects) Prevent & Counter Terrorism STP Special Interest Group (Counter Extremism) Social Inclusion and Community London Luton Airport (Shareholder Cohesion Representative) SEMLEP Business Intelligence
Name: Councillor Sian Timoney Portfolio: Place & Infrastructure Specific Responsibilities: Regeneration (Deputy Leader)
Investment Framework (Including Major Projects)* Economic Development & Business Support Luton Enterprise Zone Bartlett Square Developments Communications & Promotion Fixed Assets Foxhall Homes* (Director) Commercial & Strategic Corporate Landlord Design & Maintenance Skills & Employability (Including Adult Learning)* External Grant Funding Business Transformation/Luton Excellence Luton BID Group Social Inclusion and Community Cohesion
3/1 Page 15 of 132 EXECUTIVE – 21ST MAY 2019
Name: Councillor Andy Malcolm Portfolio: Customer & Commercial Specific Responsibilities: Finance
Overall performance* Finance London Luton Airport Limited (Chair) Budget development/Audit/Risk Debtors & Creditors Treasury Management Exchequer Services Revenues & Benefits Access Luton Customer Services IM Issues ‘E’ Government Champion Foxhall Homes * (Shareholder Representative) Social Inclusion & Community Cohesion
Name: Councillor Javed Hussain Portfolio: People Specific Responsibilities: Adults
People 1 Adults with physical disability Reablement
People 2 Safeguarding Adults
People 4 Adults Safeguarding Assessment & Care Physical Disability & Frail Elderly Learning Disability Day Services
Health & Wellbeing Board* Domestic Abuse* Social Inclusion and Community Cohesion
Name: Councillor Mahmood Hussain Portfolio: People 3/2 Page 16 of 132 EXECUTIVE – 21ST MAY 2019
Specific Responsibilities: Children’s Services
People 1 Early Years and Intervention Youth Services Children’s Centres Stronger Families Youth Offending Services
People 2 Children’s Social Care Child Protection Virtual School Special Needs Quality Assurance & Safeguarding – Children
People 3 14 – 19 Campus Luton Borough Council 16-19 Admissions Education Welfare Governor Support School Place Planning Pupil Referral Unit Alternative Learning & Progression School Improvement
Adult Learning* Health & Wellbeing Board* Social Inclusion and Community Cohesion
3/3 Page 17 of 132 EXECUTIVE – 21ST MAY 2019
Name: Councillor Jacqui Burnett Portfolio: Customer & Commercial Specific Responsibilities: Traded Services
Catering Services – including School meals Fleet Transport (trading only) Cemeteries and Cremations (trading only) School Trading LTS/LTS Ltd Corporate Health and Safety Leagrave Centre Foxhall Homes* (Director) Passenger Transport Service (trading only) Music Service BTS* – (trading only) Fairtrade Social Inclusion and Community Cohesion
Name: Councillor Aslam Khan Portfolio: Place & Infrastructure Specific Responsibilities: Safer, Stronger Communities
Environmental Enforcement (including pollution) Trading Standards Food & H&S Licensing Registrars Solutions Partnership (including antisocial behaviour) Neighbourhood Services (Single Enforcement) Community Safety/CCTV Community Cohesion & Luton in Harmony Civil Protection/Emergency Planning Neighbourhood Watch Schemes Police Commissioner Liaison Drugs & Alcohol* Strategic Community Services/Member Led Engagement Social Inclusion & Community Cohesion
3/4 Page 18 of 132 EXECUTIVE – 21ST MAY 2019
Name: Councillor Rachel Hopkins Portfolio: Commissioning and Public Health Specific Responsibilities: Health
Health Inequalities/JSNA Health Protection Health & Wellbeing Board* CCG Engagement Weight management and tobacco control Total Wellbeing
Contracts & Procurement Integrated Commissioning (including Children’s) Children & Adult Travel Needs HWB Preventative Services Vulnerable Adults Dental Mental Health Promotion Drugs & Alcohol* ELFT Mental Health Trust Sports and Physical Activity Strategy (Including Parks) Cultural Strategy Social Inclusion & Community Cohesion
3/5 Page 19 of 132 EXECUTIVE – 21ST MAY 2019
Name: Councillor Tom Shaw Portfolio: Customer & Commercial Specific Responsibilities: Housing & Environment
BTS* - (day to day delivery) Public Sector Housing & Housing Policy and Strategy Housing Landlord Services Accommodation/Waiting List Foxhall Homes* (Director) Housing SLA Private Sector Housing Rogue Landlord and Housing Improvement Tenants Cleansing & Refuse Strategic Waste Authority Climate Change Social Inclusion & Community Cohesion
Name: Councillor Paul Castleman Portfolio: Place & Infrastructure Specific Responsibilities: Planning & Transport
Regional Transport Sub-Committee Strategic Planning & Infrastructure Strategic Flood Highways Transport & Regulations (including day to day transport issues, passenger transport, fleet transport etc.) Parking Operations Road Safety – Traffic Management
Cemeteries and Crematoriums Gypsy and Travellers
Social Inclusion & Community Cohesion
3/6 Page 20 of 132 EXECUTIVE 21ST MAY 2019 APPENDIX 2/19
Organisation Representatives 2019 - 20
Active Luton Board Portfolio: People (Children’s Services) Councillor Clive Mead (Liberal Democrat) Councillor John Young (Conservative)
Bedfordshire Fire and Rescue Authority Councillor Choudhry (Labour) Councillor Franks (Liberal Democrat) Councillor K. Malik (Labour) Councillor Waheed (Labour) (Spokesperson)
Bedfordshire Pension Fund Panel and Pension Fund Committee Councillor Tom Shaw (Labour) Councillor John Young (Non Voting) (Conservative) Service Director Finance & Audit
Bedfordshire Police and Crime Panel Councillor Ali (Liberal Democrat) Councillor Donelon (Labour) Councillor S. Saleem (Labour)
BLASJC (Bus Lane Adjudication Service joint Committee) Portfolio holder: Place & Infrastructure (Planning & Transport)
Central Bedfordshire & Luton Joint Local Access Forum Portfolio holder: Place & Infrastructure (Planning & Transport)
Children and Young People's Trust Board (Luton Forum) Portfolio holder: People (Children's Services)
Citizens Advice Luton Councillor S. Hussain (Labour) Councillor Waheed (Labour)
Page 218.1/ of 1321 EXECUTIVE 21ST MAY 2019
Community Safety Partnership - Community Safety Partnership Portfolio holder: Safer, Stronger Communities Executive (CSPE) Chief Executive
Crawley Green Sports and Social Club Councillor Castleman (Labour)
East Anglia Reserve Forces and Cadets Association The Mayor or nominee
East of England Local Government Association Executive Leader or nominee
England's Economic Heartland Strategic Alliance Executive Leader
England's Economic Heartland Transport Forum Portfolio holder: Place & Infrastructure (Planning & Transport)
East London NHS Foundation Trust Porfolio holder: Commissioning & Public Health (appointment until May 2022)
Federation of Allotments Councillor Mark Rivers (Labour)
Groundwork Luton & South Beds Advisory Panel Councillor Mark Rivers (Labour)
LGA - Strategic Aviation Special Interest Group (SASIG) Chair of the Airport Board Service Director Planning & Economic Growth or nominee
LGA (The Public Transport Consortium Special Interest Group) Portfolio holder: Place & Infrastructure (Planning & Transport) Portfolio holder: People (Adults) Liberal Democrat Vacancy
Page 228.1/ of 1322 EXECUTIVE 21ST MAY 2019
Local Pension Board Portfolio holder: Customer & Commercial (Traded Services)
London Luton Airport Consultative Committee Portfolio holder: Customer & Commercial (Housing & Environment) Councillor Franks (Liberal Democrat)
London Luton Airport Forum Councillor Ghulam Rabbani Javed (Labour) Councillor Franks (Liberal Democrat)
London Luton Airport Pensions Fund Trustees None required
Luton Admissions Forum Portfolio holder: People (Children Services) Councillor Roche
Luton and Dunstable University Hospital NHS Foundation Trust Portfolio holder: People (Adults)
Luton Community Housing Ltd Councillor Lovell
Luton Cultural Services Trust Ltd (Board of Directors) Councillor Khurshid (Labour) Mr. Andrew Strange (Liberal Democrat)
Luton Domestic Abuse Delivery Group Portfolio: People (Adults)
Luton Fairtrade Steering Group Councillor Rivers (Labour) Councillor Lovell (Labour)
Page 238.1/ of 1323 EXECUTIVE 21ST MAY 2019
Luton Federation of Allotments and Leisure Gardens Association Councillor Mark Rivers (Labour) Councillor John Young (Conservative)
Luton Foodbank Councillor S. Hussain (Labour)
Luton Fostering Panel Councillor Mark Rivers (Labour)
Luton Law Centre Management Committee Trustees are elected to the Board by the Board. However, we are keen to ensure that we retain links from the ocuncil on the board. We will let LBC know when there is a vacancy where we would welcome applications for election from council members.
Luton Learning Disability Partnership Forum Portfolio holder: People (Adults)
Luton Mediation Management Committee Councillor Lovell (Labour)
Luton Rights Councillor Javed Hussain (Labour) Mr. Lawrence Patterson (Liberal Democrat) Councillor Rivers (Labour)
Luton Safeguarding Children Board Portfolio holder: People (Children Services)
Luton Shopmobility The Mayor
Marsh Farm Futures Councillor Donelon Councillor Pedersen
Page 248.1/ of 1324 EXECUTIVE 21ST MAY 2019
PATROL Parking and Traffic Regulations Outside London Portfolio holder: Place & Infrastructure (Planning Adjudication Joint Service Substitute: Vacancy
Regional Flood Defence Committee (Environment Agency Regional Portfolio holder: Place & Infrastructure (Planning Committee) Substitute
SACRE Portfolio: People (Children Services) Councillor Agbley Councillor T. Saleem Mr. Lawrence Patterson (Liberal democrat) Conservative Group (Vacancy)
Safer Luton Partnership Stakeholders Group Portfolio holder: Place & Infrastructure (Safer, Stronger Communities)
Schools Forum Portfolio holder: People (Childrens Services)
Schools Organisation Committee Portfolio holder: People (Childrens Services) Councillor Javed Hussain (Labour) Councillor S. Hussain (Labour) Councillor Rabbani (Labour)
Supplementary School Advisory Committee Portfolio holder: People (Childrens Services) Councillor Agbley (Labour) Labour vacancy
South East Midland Local Enterprise Partnership Ltd Executive Leader
Team Beds and Luton County Sports Partnership Portfolio holder: Public Health and Commissioning or nominee Commissioning Manager for Leisure and Culture (or nominee)
Page 258.1/ of 1325 EXECUTIVE 21ST MAY 2019
Town and Gown Forum Executive Leader Portfolio holder: People (Children Services) Chief Executive or nominee Laura Church
Unitary Council's Network Executive Leader
Outside Corporate Bodies
Foxhall Homes Ltd. Board of Directors Councillor Jacqueline Burnett (Labour) Councillor Anna Pedersen (Liberal Democrat) Councillor Tom Shaw (Labour) Councillor Sian Timoney (Labour) London Luton Airport Limited Board of Directors Councillor Akbar Councillor Javeria Hussain Councillor Malcolm Councillor Khtija Malik Councillor Nicholls Councillor Tahmina Saleem Councillor Young Liberal Democrat Vacancy x2
Page 268.1/ of 1326 EXECUTIVE 21ST MAY 2019
Charities
Aylott Janes Trust Homes Councillor Agbley (Labour) Councillor Castleman (Labour) Councillor Franks (Liberal Democrat) Councillor Javeria Hussain (Labour) Butler Charity (St Matthew's Parish) Executive Leader
Luton War Memorial Fund Portfolio holder: Customer & Commercial (Housing & Enviroment)
Mary Constance Bennett Charity Trust Councillor Lovell (Labour) Councillor S. Saleem (Labour)
Mary Seacole Housing Association Ltd Councillor A. Hussain Councillor Lovell Portfolio holder: Customer & Commercial (Housing & Enviroment
Page 278.1/ of 1327
Page 28 of 132 EXECUTIVE ADVISORY & OTHER BODIES 2019/20 APPENDIX 3/19
CONSTITUTION OF OTHER BODIES, ETC.
PURPOSE, FUNCTIONS AND DELEGATED MEMBERSHIP 2019/20 POWERS
*Corporate Parenting Partnership Board (5 ) To ensure that the Council and its partners Councillor Campbell effectively discharge its role as Corporate Councillor M. Hussain Parents for all their children in care and care Councillor Keens leavers. Councillor Rivers Councillor Roche
* Local Plan Working Party (10) To consider and provide guidance on the Councillor Adrees detailed content of the emerging Local Plan. Councillor Campbell Councillor Castleman Councillor Franks Councillor A. Hussain Councillor J. Hussain Councillor K. Malik Councillor Rabbani Councillor Waheed Councillor Wynn
Substitutes: Councillor Young (Liberal Democrat Vacancy) Councillor Hussain (Labour Vacancy x6)
352/8
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CONSTITUTION OF OTHER BODIES, ETC.
* Supplementary School To consider, evaluate and make Councillor Agbley Advisory Panel (4) recommendations to the Executive on annual Councillor M. Hussain applications for supplementary school grant. Labour Vacancy x1 (Liberal Democrat vacancy)
* Young People’s Panel (9) (1) To provide advice to the Executive and Councillor Adrees Scrutiny Committees on all issues relating to Councillor Choudhry looked after children. Councillor Franks Councillor M. Hussain (2) To provide consultation to Officers on all Councillor S. Hussain reports which would have an impact on looked Councillor Malcolm after children. Councillor Moles Councillor K. Malik (3) To receive regular detailed reports on Councillor Petts looked after children covering all local and national performance indicators and outcome measures and complaints.
(4) To receive regular reports on all national developments concerning policy and objectives for looked after children.
(5) To maintain direct contact with key local authority service providers (residential care staff, social workers, education staff, foster carers, etc.) and with other agencies whose services are essential to the achievement of objectives (i.e. health and care staff)
(6) To maintain contact with service users, 352/9
Page 30 of 132 EXECUTIVE ADVISORY & OTHER BODIES 2019/20 APPENDIX 3/19
CONSTITUTION OF OTHER BODIES, ETC.
including children looked after and advocates or organisations acting as advocates for looked after children.
Luton Joint Negotiation and Consultative (1) To provide regular methods of consultation Councillor Donelon Committee (6) and negotiations between the Council and its Councillor Franks employees so as to prevent differences and to Councillor M. Hussain seek to resolve them should they arise by Councillor Mead making decisions where appropriate or by Councillor Rivers making recommendations to the Executive. (Vacancy) (2) To be the Corporate interface on major human resource issues. (3) To be an important element in the provisions of effective communications between the Council and its employees. (4) To consider, report and make recommendations to the Executive on terms and conditions of service, on training and on development. (5) To discharge such functions as are specifically assigned to it by the Executive or by the Council from time to time all in accordance with the Model Constitution approved by the Council at Minute 561 (112)/97.
352/10
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CONSTITUTION OF OTHER BODIES, ETC.
Luton Senior People’s Forum (2) To advise and make recommendations to Councillor J. Hussain Luton Borough Council and other local Councillor Moles agencies on any aspect of service delivery and policy that affects older people in Luton. For this purpose the Forum shall: • Provide a mechanism for consultation and liaison with the Council and other local agencies on the issues that affect older people in Luton. • Receive and request reports from the Council and other local agencies on issues that affect older people i.e. health and social care, pensions, housing, access, public transport, personal security etc. • Consider and advise on policies and strategies that affect older people • Promote the welfare and interests of older people in Luton by building partnerships and alliances with organisations within and outside the borough including the Luton Assembly, Eastern Region Older Person’s Advisory Group (OPAG) and Better Government for Older People (BGOP) • Shall not represent any political party or political interest
352/11
Page 32 of 132 EXECUTIVE ADVISORY & OTHER BODIES 2019/20 APPENDIX 3/19
CONSTITUTION OF OTHER BODIES, ETC.
Older Person’s Partnership Board 1. To act as an expert reference group, taking Councillor J. Hussain (1) account and drawing on the experience of older people, in order to inform the Health & Wellbeing Agenda for Luton. 2. To review relevant changes in Government Policy and legislation, in order to understand and comment on the impact that such changes may have on the development of Health & Wellbeing Services for Older People in Luton. 3. To foster joint working and encourage the development of; an integrated-outcomes based approach to the planning, commissioning and delivery of services by developing a multi- disciplinary membership that encompasses the statutory bodies, private & voluntary organisations and older people of Luton. 4. To assist the Health & Wellbeing Board (H&WB) to understand the needs of older people across Luton by informing and influencing the development of the Statutory Joint Strategic Needs Assessment and the Joint Health and Wellbeing Strategy, by providing periodic reports in a manner and timescale to be determined.
352/12
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Page 34 of 132 Report For: Executive Item No: Date: 24 June 2019 Report Of: Service Director (Finance & Audit) 8 Report Author: Angela Bush
Subject: Treasury Management Annual Report – Year Ended 31st March 2019 Lead Executive Member(s): Councillor Malcolm Wards Affected: None Consultations: Councillors ☐ Scrutiny ☐ Stakeholders ☐ Others ☐
Recommendations
1. Executive is recommended to;
i) to approve, for submission to Full Council and Audit Committee, the Annual Report on Treasury Management and prudential indicators for the year ended 31st March 2019 which summarises and reviews the Council’s treasury management activities for the 2018/19 financial year.
ii) note that, as planned, there has been an increase in the amount of debt of £114 million during 2018/19
iii) note that the Council did not breach any of its prudential limits.
Background
2. The Council is required under the Local Government Act 2003 to produce an annual treasury report reviewing treasury management activity and the actual prudential and treasury indicators. This report meets the requirements of both the CIPFA Code of Practice on Treasury Management, and the CIPFA Prudential Code for Capital Finance in Local Authorities and is submitted in accordance with Treasury Management Strategy Statement for 2018/19 and the Annual Investment Strategy approved at decision EX/18/18 approved by Full Council on 19th February 2018.
The Current Position
3. This report covers the following areas:-
• capital activity for the financial year 2018/19; • the Council’s overall borrowing need (capital financing requirement); • prudential indicators throughout the report and Appendix A; • overall treasury position identifying how the Council has borrowed in relation to its indebtedness, and the impact on investment balances Appendix B; • borrowing strategy and activity; and • investment strategy and activity. The Council’s Capital Expenditure and Financing 2018/19
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4. The Council undertakes capital expenditure on long term assets. These activities may either be:
• Financed immediately through the application of capital or revenue resources (capital receipts, capital grants or revenue contributions), which has no resultant impact on the Council’s borrowing need; or • If insufficient financing is available, or a decision is taken not to apply resources, the capital expenditure gives rise to a borrowing need.
5. The actual capital expenditure forms one of the council’s required prudential indicators. The table below shows the actual capital expenditure and how this was financed.
2017/18 2018/19 2018/19 General Fund Actual Estimate Actual £million £million £million Capital Expenditure 49.704 176.994 140.489* Financed in Year 30.060 32.267 30.304 Subsidiary Investments 10.000 105.145 80.141 Unfinanced Expenditure 9.644 39.583 30.044 *Expenditure is £0.376m greater than the reported outturn due to the accounting for embedded leases
2017/18 2018/19 2018/19 Housing Revenue Actual Estimate Actual Account (HRA) £million £million £million Capital expenditure 17.667 27.476 22.773 Financed in Year 13.019 19.838 14.631 Unfinanced Expenditure 4.648 7.638 8.142
6. The majority of the capital expenditure which did not incur in 2018/19, related to the financing of major subsidiary projects, the Temporary Accommodation Purchasing Scheme (TAPS) and Commercial Properties. All of this expenditure has been re-profiled to 2019/20.
The Council’s overall borrowing need
7. The Council’s underlying need to borrow for capital expenditure is termed the Capital Financing Requirement (CFR). This figure is a gauge of the Council’s indebtedness. The CFR results from the capital activity of the Council and what resources have been used to pay for the capital spend. It represents the 2018/19 unfinanced capital expenditure (see above tables) and prior year’s net or unfinanced capital expenditure which has not yet been paid for by revenue or other resources.
8. Part of the Council’s treasury activity is to address the funding requirements for borrowing need. Depending on the capital expenditure programme, the treasury service organises the Council’s cash position to ensure sufficient cash is available to meet the capital plans and cash flow requirements. This may be sourced through borrowing from external bodies, such as the Government, through the Public Works Loan Board (PWLB) or the money markets, or utilising temporary cash resources within the Council.
Page 36 of 132 9. The Council’s non-HRA underlying borrowing need (its CFR) is not allowed to rise indefinitely. Statutory controls are in place to ensure that capital assets are broadly charged to revenue over the life of the asset. The Council is required to make an annual charge to revenue, called the Minimum Revenue Provision (MRP) to reduce the CFR. This is effectively a repayment of the non-Housing Revenue Account (HRA) borrowing need (there is no statutory requirement to reduce the HRA CFR). This differs from the treasury management arrangements which ensure that cash is available to meet capital commitments. External debt can also be borrowed or repaid at any time, but this does not change the CFR.
10. The total CFR can also be reduced by :-
• the application of additional financing resources (such as unapplied capital receipts); or • charging more than the statutory charge (MRP) each year through a Voluntary Revenue Provision (VRP).
11. The Council’s MRP Policy for 2018/19 was approved in February 2018. The actual MRP for the financial year was £8.743 million.
12. The Council’s CFR for the year is shown below, and represents a key prudential indicator.
2017/18 2018/19 2018/19 CFR General Fund Actual Estimate Actual £million £million £million Opening Balance 289.036 298.301 296.753 Capital Expenditure 49.704 176.994 140.489 Capital Financing (30.060) (32.267) (30.304) MRP (incl. PFI & leases) (9.654) (8.988) (8.743) Appropriation of Buckle (0.725) Close to HRA Closing Balance 298.301 434.040 398.195
2017/18 2018/19 2018/19 CFR Housing Revenue Actual Estimate Actual Account £million £million £million Opening Balance 118.618 123.991 123.991 Capital Expenditure 17.667 27.476 22.773 Capital Financing (3.434) (6.404) (4.625) Major Repairs Reserve (9.585) (13.435) (10.005) HRA Previously Funded Appropriation of Buckle 0.725 Close from General Fund Closing Balance 123.991 131.628 132.134
13. The borrowing activity is constrained by prudential indicators for net borrowing and the CFR, and by the authorised limit.
14. To ensure that borrowing levels are prudent over the medium term and only for a capital purpose the Council should ensure that its gross external borrowing does not, except in the
Page 37 of 132 short term, exceed the total of the capital financing requirement in the preceding year (2017/18) plus the estimate of additional capital financing requirement for the current (2018/19) and the next two financial years. This essentially means that the Council is not borrowing to support revenue expenditure. This indicator allows the Council some flexibility to borrow in advance of its immediate needs in 2018/19. The table below highlights the Council’s Gross borrowing position against the CFR and the Council has complied with this prudential indicator. Gross Borrowing compared with the Capital Financing Requirement
2017/18 2018/19 2018/19 Actual Estimate Actual £million £million £million Borrowing 277.192 400.502 391.610 Other Financial Liabilities 23.030 22.306 22.678 Total Debt 300.222 422.808 414.288 CFR 422.292 565.668 530.329 Over/(Under) Borrowing (122.070) (142.860) (116.041)
15. The authorised limit is the affordable borrowing limit required by section 3 of the Local Government Act 2003. The Council does not have the power to borrow above this level. The table below demonstrates that during 2018/19 the Council has maintained gross borrowing within its authorised limit.
16. The operational boundary is the expected borrowing position of the Council during the year. Periods where the actual position is either below or over the boundary is acceptable subject to the authorised limit not being breached.
2017/18 2018/19 2018/19 General Fund Debt Actual Estimate Actual £million £million £million Total Debt 300.222 422.808 414.288 Operational Boundary 326.816 455.000 455.000 Authorised Limit 403.100 505.000 505.000
The Council’s Treasury position at 31st March 2019
17. The Council’s treasury position is shown at Appendix B to this report. At all times the treasury management service will seek to ensure adequate liquidity for both revenue and capital activities, security for investments and to manage risks within all treasury management activities. Procedures and controls to achieve these objectives are well established within the Council’s Treasury Management Practices.
Borrowing strategy for 2018/19 and the control of interest rate risk
18. During 2018/19, the Council maintained an under-borrowed position. This meant that the capital borrowing need, (the Capital Financing Requirement), was not fully funded with loan debt, as cash supporting the Council’s reserves, balances and cash flow was used as an interim measure. This strategy was prudent as investment returns were low and minimising counterparty risk on placing investments also needed to be considered.
Page 38 of 132 19. A cost of carry remained during the year on any new long-term borrowing that was not immediately used to finance capital expenditure, as it would have caused a temporary increase in cash balances; this would have incurred a revenue cost – the difference between (higher) borrowing costs and (lower) investment returns.
20. The policy of avoiding new borrowing by running down spare cash balances, has served well over the last few years. However, this was kept under review to avoid incurring higher borrowing costs in the future when this authority may not be able to avoid new borrowing to finance capital expenditure and/or the refinancing of maturing debt.
21. Against this background and the risks within the economic forecast, caution was adopted with the treasury operations. The Service Director, Finance & Audit therefore monitored interest rates in financial markets and adopted a pragmatic strategy based upon the following principles to manage interest rate risks:
• if it had been felt that there was a significant risk of a sharp FALL in long and short term rates, (e.g. due to a marked increase of risks around relapse into recession or of risks of deflation), then long term borrowings would have been postponed, and potential rescheduling from fixed rate funding into short term borrowing would have been considered.
• if it had been felt that there was a significant risk of a much sharper RISE in long and short term rates than initially expected, perhaps arising from an acceleration in the start date and in the rate of increase in central rates in the USA and UK, an increase in world economic activity or a sudden increase in inflation risks, then the portfolio position would have been re-appraised. Most likely, fixed rate funding would have been drawn whilst interest rates were lower than they were projected to be in the next few years.
22. The Council has a current policy of maximising internal borrowing, and therefore minimising the need to borrow. This has the consequence of there being less cash available for treasury investments, and therefore a reduction in investment income. This policy will be continually monitored to ensure the council is not exposed to higher borrowing rates in future years.
Borrowing rates in 2018/19
23. Interest rate forecasts expected only gradual rises in medium and longer term fixed borrowing rates during 2018/19 and the two subsequent financial years. Variable, or short- term rates, were expected to be the cheaper form of borrowing over the period.
24. Luton Borough Council’s treasury advisors Link Asset Services gave the following forecast on 2nd January 2018.
Page 39 of 132 25. Since PWLB rates peaked during October 2018, most PWLB rates have been on a general downward trend, though longer term rates did spike upwards again during December, and, (apart from the 1 year rate), reached lows for the year at the end of March. There was a significant level of correlation between movements in US Treasury yields and UK gilt yields - which determine PWLB rates. The Fed in America increased the Fed Rate four times in 2018, making nine increases in all in this cycle, to reach 2.25% – 2.50% in December. However, it had been giving forward guidance that rates could go up to nearly 3.50%. These rate increases and guidance caused Treasury yields to also move up. However financial markets considered by December 2018, that the Fed had gone too far, and discounted its expectations of further increases. Since then, the Fed has also come round to the view that there are probably going to be no more increases in this cycle. The issue now is how many cuts in the Fed Rate there will be and how soon, in order to support economic growth in the US. But weak growth now also looks to be the outlook for China and the EU so this will mean that world growth as a whole will be weak. Treasury yields have therefore fallen sharply during 2019 and gilt yields / PWLB rates have also fallen.
Public Works Loan Board Borrowing Rates 2018/19
Borrowing outturn for 2018/19
26. In December 2018 the Council successfully applied for £100m of PWLB special infrastructure rate loan to part finance the London Luton Airport Direct Air to Rail Transit (DART) project. This decision was made to fix lower gilt rates and therefore reduce interest rate risk. This generated a short term increase in the level of investments held by the council. These balances were utilised by 31st March 2019. The Council is currently negotiating an additional £125 million of loans from the European Investment Bank to finance the remaining costs of delivering the DART project. These successful applications support the strong vision and financial management of the Council and the major projects it is undertaking; not to mention the considerable financial savings achieved by the competitive interest rates of the loans.
27. In October 2018 the government announced a policy change with the HRA debt cap being abolished. The removal of the Debt Cap has opened up the potential to invest in new developments across the town. This opportunity is being investigated, and in the new financial year more detailed plans, supported by robust business cases, will be evaluated, determined by affordability.
Rescheduling
28. During December 2018 the Council was approached by RBS with an offer to redeem £22 million of LOBO loans that they were planning to sell to another party. Following advice from external experts the Council re-financed the LOBO loans with PWLB debt using the certainty
Page 40 of 132 rate. This required a premium payment of £5.7 million to RBS, which can be spread over the remaining 42 years of the loans. The re-financing deal will generate savings of approximately £35,000 per annum. This has removed the risk of the lender option and reduced the annual interest being paid by the Council.
29. During 2018/19 the Council also undertook £60m of short term fixed rate borrowing from other Local Authorities to fund the net unfinanced capital expenditure. As at 31st March 2019 all but £8 million has been repaid.
30. Appendix B items 1 & 2 show a comparison of the treasury borrowing maturity profile for the years 2017/18 and 2018/19 split between the General Fund and Housing Revenue Account.
Borrowing in advance of need
31. The Council has not borrowed more than, or in advance of its needs, purely in order to profit from the investment of the extra sums borrowed.
Investment Strategy, control of interest rate risk and Outturn for 2018/19
32. The expectation for interest rates within the treasury management strategy for 2018/19 was that Bank Rate would rise from 0.50% to 0.75%. At the start of 2018-19, and after UK GDP growth had proved disappointingly weak in the first few months of 2018, the expectation for the timing of this increase was pushed back from May to August 2018. Investment interest rates were therefore on a gently rising trend in the first half of the year after April, in anticipation that the MPC would raise Bank Rate in August. This duly happened at the MPC meeting on 2 August 2018.
33. It was not expected that the MPC would raise Bank Rate again during 2018/19 after August in view of the fact that the UK was entering into a time of major uncertainty with Brexit due in March 2019. Investment rates were little changed during August to October but rose sharply after the MPC meeting of 1st November was unexpectedly hawkish about their perception of building inflationary pressures, particularly from rising wages. However, weak GDP growth data after December, plus increasing concerns generated by Brexit, resulted in investment rates falling back again. When Bank Rate went up in August investment returns also improved from deposits for periods up to one month. Continued uncertainty in the aftermath of the 2008 financial crisis has promoted a cautious approach whereby investments would continue to be dominated by low counterparty risk considerations, resulting in relatively low returns compared to borrowing rates.
34. Luton Borough Council’s treasury advisors Link Asset Services gave the following forecast on 2nd January 2018.
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35. The Council’s investment policy is governed by MHCLG guidance, each year the Council sets the investment strategy approved by the Council. The policy sets out the approach for choosing investment counterparties, and is based on credit ratings provided by the three main credit rating agencies, FITCH, Standard and Poors and Moodys, supplemented by additional market data such as credit default swaps and rating outlooks all provided by the Council treasury adviser Link Asset Services. The approved countries for investment are included as Appendix C.
36. The Council’s investments are mainly cash flow derived with an element of core reserve balances.
37. The Council’s inherent strategy is to reduce the level of investments held, by using maturing investments to help fund cash flow. It was not considered likely that new long term investments (over one year) would be a prominent feature going forward but a limit of 25% of total investments was set should the opportunity arise. Investments in the main would be kept liquid in reserve accounts and money market funds.
38. The investment activity during the year conformed to the approved strategy, and the Council had no liquidity difficulties. The Council maintained an average balance of £45 million of internally managed funds and these funds earned an average rate of return of 0.69% as shown in Appendix B. The comparable performance indicator is the average 7-day LIBID rate, which was 0.5071%. This compares with a forecast average rate of 0.36%. In cash terms this outperformance equates to £148k, however £139k was paid to 3rd parties.
39. As expected much of the Council’s investments were kept short in instant access money market fund accounts at rates ranging between 0.45% and 0.80%.
40. Funds are also invested on behalf of London Luton Airport Limited at times when concession income created investment opportunities and these investments are shown in the London Luton Airport Limited accounts. Similarly surplus funds on the schools National Westminster Bank account, mainly arising from half yearly payments transferred in by the Council were invested on a daily basis in a Goldman Sachs money market fund for cash flow liquidity and a longer term basis for excess funds not immediately required for cash flow purposes. In both cases investments were only made with institutions included on the Council’s approved lending list. Appendix B shows the performance for the year against the benchmark of 0.36% of 0.60% for Schools.
The Economy and interest rates in 2018/19
41. After weak economic growth of only 0.2% in quarter one of 2018, growth picked up to 0.4% in quarter 2 and to a particularly strong 0.7% in quarter 3, before cooling off to 0.2% in the final quarter. Given all the uncertainties over Brexit, this weak growth in the final quarter was as to be expected. However, some recovery in the rate of growth is expected going forward. The annual growth in Q4 came in at 1.4% y/y confirming that the UK was the third fastest growing country in the G7 in quarter 4.
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42. After the Monetary Policy Committee raised Bank Rate from 0.5% to 0.75% in August 2018, it is little surprise that they have abstained from any further increases since then. We are unlikely to see any further action from the MPC until the uncertainties over Brexit clear. If there were a disorderly exit, it is likely that Bank Rate would be cut to support growth. Nevertheless, the MPC has been having increasing concerns over the trend in wage inflation which peaked at a new post financial crisis high of 3.5%, (excluding bonuses), in the three months to December before falling only marginally to 3.4% in the three months to January. British employers ramped up their hiring at the fastest pace in more than three years in the three months to January as the country's labour market defied the broader weakness in the overall economy as Brexit approached. The number of people in work surged by 222,000, helping to push down the unemployment rate to 3.9 percent, its lowest rate since 1975. Correspondingly, the total level of vacancies has risen to new highs.
43. As for CPI inflation itself, this has been on a falling trend since peaking at 3.1% in November 2017, reaching a new low of 1.8% in January 2019 before rising marginally to 1.9% in February. However, in the February 2019 Bank of England Inflation Report, the latest forecast for inflation over both the two and three year time horizons remained marginally above the MPC’s target of 2%.
44. The rise in wage inflation and fall in CPI inflation is good news for consumers as their spending power is improving in this scenario as the difference between the two figures is now around 1.5%, i.e. a real terms increase. Given the UK economy is very much services sector driven, an increase in household spending power is likely to feed through into providing some support to the overall rate of economic growth in the coming months.
45. The ongoing Brexit saga will ensure that any interest hike is delayed, even though a disorderly Brexit has been avoided for now. The EU has provided a "flextension" to end-October 2019, but allowing the UK to leave before then if a deal is agreed. This, then, puts the immediate onus on discussions between the Government and opposition, but the outlook for the talks is steadily fading and given that previous votes on a raft of potential options produced no clear direction, investors remain as uncertain as ever. The outlook for the coming year remains that official interest rates will be unchanged, though the expectations of a change did firm on the Inflation Report. Even if an exit is agreed in the coming months, the Bank of England's ability to raise rates could be hampered by global growth concerns, which could handcuff them to current policy.
Audit & Governance
46. As Audit and Governance Committee have been delegated responsibility for the scrutiny of Treasury Management Activity a copy of this report will be forwarded to their next meeting on 29th July 2019.
Goals and Objectives
47. To enable the Executive to review the Treasury Management Activity for the year
Proposal
48. That Executive note the report
Page 43 of 132 Key Risks
49. Treasury Management is an area of significant risk. In relation to security and probity of investments all activity has been undertaken in accordance with the provisions of the Council’s treasury Management Practices (TMP’s) which include a substantial section on risk, in order to manage and minimise, so far as possible, the risks involved.
Consultations
50. None
Alternative options considered and rejected (please specify)
51. Executive has the option to note and approve the report which has been presented in accordance with the recommendations of The Chartered Institute of Public Finance and Accountancy’s (CIPFA) Code of Practice for Treasury Management or ask for further information.
Appendices Attached Appendix A – Prudential Indicators Appendix B – Treasury Performance & Current Status Appendix C – Approved Countries for Investment
Background Papers There are no background papers to the report.
Page 44 of 132 IMPLICATIONS
For Executive Reports: • All grey boxes must be completed • All statements must be cleared by an appropriate officer
For CLMT Reports: • Only the dark grey boxes must be completed • Clearance is not required
Legal Clearance Agreed By Dated Save for those set out in the body of the report, there Vicky Sowah 10th June are no direct legal implications to this report. Principal Solicitor 2019
Finance Clearance Agreed By Dated The financial implications are set out in the body of Dev Gopal, Service Director 10th June the report. (Finance & Audit) & S151 2019 Officer
Integrated Impact Assessment (IIA) – Key Points
Equalities / Cohesion / Inclusion (Social Justice) Clearance Agreed By Dated There are no direct Equalities, Cohesion/ Inclusion Sandra Hayes, 7th June implications arising from the recommendations in this Strategic Community 2019 report. Service Manager Environment Clearance Agreed By Dated There are no direct environmental implications of this Keith Dove, Strategic Policy 6th June report. However, indirectly some of the projects Adviser 2019 funded during 2018-19 could have environmental implications. Health Clearance Agreed By Dated There are no direct health implications arising from Stephen Gunther 6th June the recommendations in this report. Service Director 2019
Community Safety Clearance Agreed By Dated
Staffing Clearance Agreed By Dated
Other Clearance Agreed By Dated
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APPENDIX A
2017/18 2018/19 2018/19 PRUDENTIAL INDICATORS Actual Estimate Actual (1). CAPITAL FINANCE
1. Gross Debt (including other financial liabilities) £million £million £million Non HRA 165.575 289.455 279.631 HRA 134.647 133.353 134.657 Total Gross Debt 300.222 422.808 414.288
2. Capital Financing requirement £million £million £million Non-HRA 298.301 434.040 398.724 HRA 123.991 131.628 132.134 Total Capital Financing Requirement 422.292 565.668 530.858
3. Capital Expenditure £million £million £million Non-HRA 49.704 176.994 140.489 HRA 17.667 27.476 22.773 Total Capital Expenditure 67.371 204.470 163.262
4. Ratio of financing costs to net revenue stream £million £million £million Non-HRA -11.50% -14.54% -14.62% HRA 12.52% 12.84% 13.96%
(2). TREASURY MANAGEMENT
5. Authorised limit for external debt - £million £million £million Borrowing 380.070 480.000 480.000 Other long term liabilities 23.030 25.000 25.000 Total Authorised Limit 403.100 505.000 505.000
6. Operational boundary - £million £million £million Borrowing 303.786 430.000 430.000 Other long term liabilities 23.030 25.000 25.000 Total Operational Boundary 326.816 455.000 455.000
7. Actual external debt 300.222 422.808 414.288
Page 46 of 132 APPENDIX B TREASURY POSITION COMPARISON – 31/03/18 to 31/03/19 GENERAL FUND HOUSING REVENUE ACCOUNT Balance 2017/18 Balance 2018/19 Balance 2017/18 Balance 2018/19 Sheet Rate/ Sheet Rate/ Sheet Rate/ Sheet Rate/ 31/03/2018 Return 31/03/2019 Return 31/03/2018 Return 31/03/2019 Return £million % £million % £million % £million % BORROWING 1 Fixed Rate Funding PWLB - Fixed rate (79.242) 4.37 (204.036) 3.73 (124.955) 2.75 (127.661) 2.74 Money Market (32.449) 3.97 (21.925) 3.96 (4.551) 3.97 (3.075) 3.96 Short term 0 0 (8.000)
2 Variable Rate Funding Money Market (29.467) 4.05 (20.697) 4.10 (4.133) 4.05 (2.903) 4.10 3 Other Financial Liabilities PFI (22.244) (21.820) Leases (785) (858) 4 Accrued Interest (1.387) (2.295) (1.009) (1.018) Total Debt (165.574) (279.631) (134.648) (134.657)
5 CFR 298.301 398.195 123.991 132.134 (Over)/Under Borrowing 132.727 118.564 (10.657) (2.523)
INVESTMENTS 6 Luton Borough Council 12.548 0.29 8.040 0.69 7 Schools 11.352 0.30 14.867 0.60 Total Investments 23.900 22.907
Net Debt (141.674) (256.724) (134.648) (134.657)
Investments on behalf of other 0.620 0.59 0.20 0.60 organisations
Page 47 of 132 APPENDIX B (Continued)
TREASURY POSITION COMPARISON – 31/03/18 to 31/03/19
Maturity Structure of Debt Portfolio GENERAL FUND HOUSING Actual Estimate Actual Actual Estimate Actual 31/03/18 31/03/19 31/03/19 31/03/18 31/03/19 31/03/19 £million £million £million £million £million £million Up to 12 months 1.387 0 10.295 1.009 0 1.018 12 months and within 24 months 0 0 0 0 0 0 24 months and within 5 years 2.982 7.351 7.351 89.874 90.487 90.487 5 years and within 10 years 8.754 4.385 4.385 21.518 20.905 20.905 10 years and within 20 years 7.452 27.659 7.452 1.045 1.045 1.045 20 years and within 30 years 0 0 0 4.095 4.095 4.095 30 years and within 40 years 53.915 53.915 53.915 7.562 7.562 7.562 40 years and within 50 years 38.588 144.373 144.088 5.412 5.126 5.412 50 years and within 60 years 16.312 29.467 29.467 2.288 4.133 4.133 60 years and within 70 years 13.155 0 0 1.845 0 0 ***Actual figures include interest on loan accruals at 31st March 2019
Overall Maturity Structure of investment Portfolio Actual Estimate Actual 31/03/18 % 31/03/19 % 31/03/19 % £million £million £million longer than 1 year 0 0 0 0 0 Under 1 year – Money Market 23.900 100.00 21.000 100.00 22.907 100.00 Funds
APPENDIX C Approved countries for investment
AAA
Australia Canada Denmark Germany Netherlands Singapore Sweden Switzerland USA
AA+
Finland
AA
U.K
Page 48 of 132 Report For: Executive Item No: Date: 24 June 2019 Report Of: Dev Gopal. Service Director, Finance & Audit 9 Report Author: Tim Lee, Principal Accountant
Subject: 2018/19 Provisional Revenue and Capital Outturn Lead Executive Member(s): Councillor Malcolm Wards Affected: All Consultations: Councillors ☐ Scrutiny ☐ Stakeholders ☐ Others ☐
Recommendations 1. Executive is recommended to:
i) note the provisional outturn figures for 2018/19, subject to Audit. ii) approve the budgets to be carried forward to 2019/20 iii) approve the movements in reserves arising from the outturn position for 2018/19 iv) note the revenue movements relating to outstanding debt for 2018/19
Background 2. The Council’s Budget is monitored monthly throughout the year and reported to the Executive on a quarterly basis. This report shows the provisional outturn position for 2018/19 subject to Audit, compared to the approved budget and the cumulative monitoring forecast.
3. The Council’s future budget prospects remain a long-term challenge and it is essential to maintain momentum to deliver services within budget each year and to plan for the savings needed for the further cuts expected in grant funding.
The Current Position 4. The Council has continued to manage a number of significant demand-led service pressures over 2018/19, including the high levels of support needed for vulnerable children and families in the town and providing accommodation for members of the community that are homeless, together with other operational pressures in services that have placed additional strain on the overall Budget.
5. A 2 year efficiency & sustainability plan to reduce costs where possible and to increase income without impacting front-line service delivery was put in place early, to work toward achieving a balanced outturn position by the close of 2018/19 and to improve longer term resilience of the Council’s budget.
6. A summary of the monitoring forecasts over 2018/19 and the provisional outturn position now reported is shown in the table below, including the net effect of applying the central contingency budget to help meet costs.
Page 49 of 132 Monitoring Cumulative Main New Variations Forecast on Costs/Income Report Forecast Quarter 1 £3.6m net £5.8m overspend on children’s care/family support overspend -£1.2m specific contingency budget cover for children’s care (partial use of £2.0m overspend on temporary housing for homelessness contingency) -£1.9m specific contingency cover for homelessness £1.0m overspend on the corporate property estate £1.0m overspend on SEN travel costs £0.6m IT Costs £0.5m revenues and benefits service -£1.8m reduction on adult social care costs -£2.4m of efficiency savings, underspends and increased income £1.6m forecast overspend net of remaining central contingency budget Quarter 2 £2.0m net £0.8m increased overspend on children/family support overspend £0.1m increased overspend on temporary accommodation for (partial use of homelessness contingency) -£0.4m further reduction in adult social care costs -£2.9m net gain from borrowing & investment returns (including £1.6m LLAL) and capital charges improvement -£1.1m net increase in efficiency savings, underspends and from Q1 increased income £1.9m one off contribution to reserves (future economic support) Balanced position net of remaining central contingency budget Quarter 3 £2.0m net £0.3m increased overspend on temporary housing for overspend homelessness (partial use of £0.2m increased cost & income pressures in revenues service contingency) -£0.1m reduction in overspend on SEN travel costs -£0.2m further reduction in Adult Social Care costs no net -£0.2m further net gain from borrowing & investment returns change from (including LLAL) and capital charges Q2 -£1.5m of increased compensation grant funding for business rates relief and business rates levy -£0.4m further net increase in efficiency savings, underspends and increased income £1.5m one-off contribution to reserve (future funding equalisation for business rates) £0.4m contribution to reserves from reduced use of redundancy contingency Balanced position net of remaining central contingency budget Final £1.0m net £0.4m increased overspend on temporary housing for Forecast underspend homelessness (full release £0.6m increased overspend for Children/Family Support of -£0.5m reduced overspend on ICT contingency) £0.1m increased overspend in revenues and benefits service -£0.3m reduced overspend on the corporate property estate £1m -£0.1m further reduction in Adult Social Care costs reduction -£1.5m reduced net cost of housing benefits including adjusted from Q3 debt provision (including £0.5m unachieved corporate procurement savings target contingency) -£0.2m additional gain from borrowing & investment returns (including LLAL) and capital charges -£0.7m one-off receipt from refinancing of QED joint venture -£2.0m remaining contingency budget released in to forecast- £0.5m net reduction in efficiency savings, underspends and increased income
Page 50 of 132 Monitoring Cumulative Main New Variations Forecast on Costs/Income Report Forecast £0.3m of potential budgets to be carried forward to 2019/20 Provisional £0.8m including £0.4m of budgets to be carried forward to 2019/20. Outturn underspend Cumulative analysis of the final position is shown at paragraph 5
7. Consolidation of the Council’s statutory accounts is now underway in order to meet the shorter timescales available to complete publish the accounts by 31st May 2019.
Goals and Objectives 8. To report the provisional outturn position for 2018/19, subject to Audit and to approve the resulting movements in reserves arising from this.
Proposal General Fund Revenue Budget 2018/19
9. The provisional outturn position for 2018/19 after contributions to and from specific operational reserves is a net underspend of £0.84m compared to the annual budget, a variation of around 0.2% on total expenditure during the year. This is slightly lower than the cumulative monitoring forecast which predicted a net under spend of £1.02m.
10. The under spend is however a net position with significant additional costs incurred for the year, offset by use of this year’s approved central contingency budget, some significant one-off gains in the corporate resource accounts and by compensating cost reductions or additional income led by the efficiency and sustainability measures put in place at Quarter 1. The main variations to budget underlying the final net position are:
£’m Cost or Income Pressures children’s placements & family support (before contingency budget cover) 7.7 children & family contingency cover -1.2 temporary accommodation for homelessness (before contingency budget cover) 3.1 Temporary accommodation contingency cover -1.9 corporate property estate and services 1.4 special education needs transport 0.8 revenues & benefits cost and income pressures 0.5 unachieved corporate procurement savings 0.5
Cost Reductions, Income Gains & Contingency Budget (one-off *) general contingency budget (toward overspend incl. children & family services) -2.0 * Adult Social Care net underspend (incl. early delivery of 19/20 savings) -3.1 * borrowing costs/investments/airport dividend (net position linked to major capital -2.9 schemes) finalisation of housing benefit claim (net cost incl. revised debt provision and admin -1.2 subsidy loss) * additional corporate level grant funding (business rates relief compensation, levy -1.3 surplus and EU exit) reduction in revenue costs of capital spend (mrp and capital recharges) -0.9 * one-off PFI refinancing receipt -0.7 efficiency savings, employee costs (vacancy savings and reduced agency staff costs) -1.8 net efficiency savings and underspends - non-employee costs and income -1.6
Page 51 of 132 Movements in Reserves one-off contribution to reserves (support to business and employment 2019/20) 1.9 one-off contribution to reserves (business rates equalisation funding) 1.2 budgets carried forward to 2019/20 0.4 other contributions from specific operational reserves 0.3 Net Under spend 2018/19 -0.8
Summary Outturn Position by Department 2018/19
11. Total net spend on General Fund services during 2018/19 is £126.849 million prior to movements in reserves, with a further £0.4 million of spend to be incurred in 2019/20 from the budgets requested for carry forward. After allowing for the final contributions from and to specific reserves including those approved in principle from the 2018/19 monitoring, there is a net underspend compared to budget of £0.844m.
12. The Housing Revenue Account has a net underspend of £0.841m compared to budget for 2018/19, giving a final operational surplus of £2.223 million for the year, helping to maintain a prudent level of operational reserves to help meet future costs including support for the capital costs for improvements and additions to the housing stock. Further information on the HRA outturn position is provided at Appendix F/Fi.
13. Net spend on the Schools Budget for 2018/19 is £151.698m against a budget of £153.886 million, giving a gross underspend of £2.2 million for the year, netted down to £1.4m after taking account of the £0.8m adjustment needed this year to cover the recoupment of last years unused early years funding.
£0.7m of this year’s underspend relates to the budgets held by Schools and £1.513m is for the underspend in the central schools budget, including some unused early-years funding for 2018/19 that will be recouped from the Council in 2019/20. Further information on the Schools outturn position is provided at Appendices C - Ciii.
14. A summary of each department’s outturn position compared to the approved operating budget and is shown in the table below:
Operating Final General Fund Position 2018/19 Variation Compared to Operating Budget Budget Spend +over/-under £million £million £ million Chief Executive 3.959 3.715 -0.244 Appx A Customer & Commercial 11.349 11.444 0.095 Appx B People () 107.795 110.437 2.642 Appx C Place & Infrastructure 33.525 34.522 0.997 Appx D Commissioning & Procurement 12.856 12.370 -0.486 Appx E Public Health 15.382 15.341 -0.041 Appx E Public Health Grant -15.382 -15.382 -0.000 Appx E General Contingencies 2.326 0 -2.326 Corporate Accounts (excl. reserves) -38.611 -44.662 -6.051 Total Prior to Movements in Reserves 133.199 127.785 -5.414 Carry Forwards to 2019/20 0 0.418 0.418 One-off contrib. to Reserves – 0 1.900 1.900 business and employment support One-off contrib. to Reserves - business 0 1.173 1.173 rates grant funding
Page 52 of 132 Net contribution to specific operational 4.022 5.101 1.079 reserves Net GF Underspend Available to 0.844 0.844 Reserves Net General Fund Expenditure 137.221 137.221 0.000
Other Accounts Schools Budgets (met by DSG) 153.886 151.698 -2.188 Appx C HRA contrib. from/to (-) balances -1.382 -2.428 -1.046 Appx F HRA contribution to capital resources 0.205 0.205
15. The cumulative monitoring for the General Fund in 2018/19 predicted an under spend of £1.016m. The final outturn position is an under spend of £0.841m, a reduction of £0.175m compared to the predicted position. The change compared to the final forecast is summarised below, together with the HRA and Schools Budget:
Forecast Final General Fund Position 2018/19 Variation Compared to Forecast Budget Budget Spend +over/-under £million £million £ million Chief Executive 3.760 3.715 -0.045 Appx A Customer & Commercial 11.607 11.444 -0.163 Appx B People (non-schools) 110.917 110.437 -0.480 Appx C Place & Infrastructure 33.745 34.522 0.777 Appx D Commissioning & Procurement 12.374 12.370 -0.004 Appx E Public Health 15.382 15.341 -0.041 Appx E Public Health Grant -15.382 -15.382 0.000 Appx E General Contingencies 0.000 0.000 0.000 Corporate Accounts (excl. reserves) -44.608 -44.662 -0.054 Total Prior to Movements in Reserves 127.795 127.785 -0.010 Carry Forwards to 2019/20 0.246 0.418 0.172 One-off contrib. to Reserves – 1.900 1.900 0.000 business and employment support One-off contrib. to Reserves - business 1.173 1.173 0.000 rates grant funding Net contribution to specific operational 5.091 5.101 0.010 reserves Net GF Underspend Available to 1.016 0.844 -0.172 Reserves Net General Fund Expenditure 137.221 137.221 0.000
Other Accounts Schools Budgets (met by DSG) 152.541 151.698 -0.843 Appx C HRA contrib. from/to (-) balances -1.812 -2.428 -0.616 Appx F HRA contribution to capital resources 0.205 0.205
16. More detailed analysis of each department’s final revenue position and monitoring over the year is included in the Appendices A to F of this report. Each appendix gives explanations for the most significant variations reported in the monitoring and the changes since the final monitoring forecast.
Page 53 of 132 Approved Central Contingency Budget
17. The final use for the central contingency budget is similar to the position reported in this year’s monitoring. The full contingency has been released toward final costs, but is £0.8m higher than needed due to a reduction in net costs at the final outturn position:
Original central contingency budget £7.2m less specific reallocations for: loss of education services grant £1.2m (permanent) temporary accommodation £1.9m (temporary) children’s social care £1.2m (temporary) former capital costs now revenue £1.0m (temporary) Remaining contingency released for outturn costs £1.1m (temporary) Surplus contingency contributing to the net underspend £0.8m
Corporate Resource Accounts
18. The corporate accounts for borrowing costs, investment income, capital financing and corporate level grant funding have contributed a short term net gain of £5.6m to assist the 2018/19 outturn position. The includes:
Inter-dependant Resource Accounts £’ million Borrowing Costs -5.839 Interest Earned on Investments & Debentures 7.169 Airport Dividend -4.159 Capital Financing -0.915 Net Treasury Management Gain -3.744 short term
Business Rates Compensation Grant and Levy Surplus -1.173 one-off QED PFI refinancing gain -0.733 one-off Total Net Gain -5.650
19. As previously reported, the costs and the funding resources for the major projects in this year’s capital programme have been intensively managed, to ensure that the Council achieves the maximum benefit from investing in these projects.
20. The use of internal cash balances and low-cost short term borrowing to fund capital spend up to December 2018 generated a significant one-off reduction in borrowing costs, but also impacted on the income returns achievable this year and on the airport dividend position. The net gain from this totals £3.744m for the year compared to budget. Around £1m of this relates to the use of cash balances and short-term funding pending a decision on the optimum point for arranging the long-term borrowing needed to resource the major projects.
Corporate Level Grants
21. Additional on-off grant income of £1.173m above budget was received for 2018/19 relating to business rate grant funding, including:
• 2 in-year corrections totalling £0.436m made to this year’s compensation grant payable for the introduction of new business rate reliefs, due to errors in the base calculation of the grant originally notified with the 2018/19 funding settlement.
Page 54 of 132 • £0.736m reimbursed from the national Safety Net Levy Surplus. The Government top-slices each finance settlement by a levy that is used to meet the cost of the business rates safety net and the unused surplus from this has been refunded across local authorities.
22. The final position for the corporate resource accounts is broadly similar to the position forecast in this year’s monitoring, with a small reduction of around £0.2m compared to the final forecast.
23. Subject to final affordability, the Executive has previously agreed in principle for:
• £1.9m of the net treasury management gain to be set-aside in a specific reserve to commitments for supporting business and employment in the town
• the £1.2m one-off grant funding receipt to be set-aside in a specific reserve to provide risk cover to meet future fluctuations in the Council’s business rate income, including local changes and any proposed change in the core finance settlement methodology at the forthcoming local government funding review this Autumn.
24. The final net costs for the year confirms that both these transfers can be accommodated within the overall outturn position.
Budgets to be Carried Forward to 2019/20
25. The use of carry forwards is advocated as good financial management in Local Authorities and the Council’s Financial Regulations make provision for carrying forward managed net underspends, subject to reporting these to the Executive for approval.
26. Appendix G shows the budgets that managers have asked to carry forward to 2019/20, totalling £0.487m, including the ring-fenced public health underspend and the budget held on behalf of the Local Safeguarding Children’s Board.
27. Subject to Executive approving the carry forwards, they will be subject to further review by the Chief Executive and the Service Director Finance & Audit when they are requested for release.
Movements in Reserves 2018/19
28. The estimated movements in reserves for 2018/19 were reported in the final monitoring report to the Executive in April. This has now been updated to reflect the final outturn position for the year.
29. Total General Fund Reserves have increased by £9.4m (net) in 2018/19, including:
• the £5.0m contribution approved when the budget was set for this year.
• a £4.4m contribution to specific reserves from this year’s net outturn position, including the £3.1m of one-off grant and treasury management gains explained at paragraph 13 and the £0.8m final net underspend for 2018/19. £2.7m of this is already allocated toward future commitments.
• £2.0m of specific reserves used during the year for budgets carried forward from the previous financial year and for specific projects previously approved by the Executive including invest to save initiatives and investment in the LIF..
30. The full movements in each reserve for 2018/19 are shown at Appendix H of this report.
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31. School Reserves have increased by £2.2 million in 2018/19, due to an underspend in the Individual Schools budget and the Central Schools budget. Part of this underspend relating to unused early years funding will by reclaimed by the department for education next year. Further details of the under spend are included at Appendix C of this report.
32. The HRA revenue reserve has increased by £2.2m in 2018/19. Further details of the under spend are included at Appendix F of this report.
Implications for the Medium Term Finances
33. Although the Council has achieved a final position that is within budget for 2018/19, this is partly due to some one-off cost reductions and income gains that are unlikely to be repeated in the future. In contrast, the main cost pressures reported this year will continue to exert pressure on the budget for 2019/20 alongside the need to deliver £15.4 million of further savings already set in the budget; while the Council continues to adapt and develop the additional efficiencies and local income needed to keep the budget and longer term finances in a sustainable position.
34. This includes reviewing and updating the existing plans for managing the main overspend pressures in light of the 2018/19 outturn position and ensuring early preparations are in place for the 2020/21 Budget and refreshed medium term financial plan.
35. The next funding settlement is due this Autumn and it is not yet clear what further implications this will have for the Council’s grant funding from 2020/21, although there is a general consensus that austerity measures will not have ended and that further funding cuts are likely. The continued disarray on the terms and timing of the UK’s exit from the European Union adds further uncertainty to what may lie in store at the finance settlement.
36. It is therefore essential to continue to plan for further cuts in grant funding and preparations for the 2020/21 budget are already underway.
Revenue Impacts of Outstanding Debt 2018/19
37. During 2018/19 debt collection has improved in certain areas. However further work is being done in order to accelerate the collection rate and reduce the level of outstanding debts.
Opening Closing Debt Type Raised Written Off Collected Balance Debt Council Tax 22,143,416 75,763,668 -74,160 -72,586,843 25,246,081 Business Rates 6,041,132 38,627,515 -111,665 -37,681,249 6,875,733 Housing Benefit 12,135,525 5,388,434 -91,844 -5,504,056 11,928,060 Overpayments Adult Social Care 4,480,207 9,469,693 -4,434 -9,382,711 4,562,755 Sundry Debt 7,920,374 52,513,198 -31,654 -54,580,252 5,821,666 Rent Deposits 365,383 291,905 -57,749 -82,189 517,349 Housing Rents & 2,556,523 37,454,717 0 -37,046,769 2,964,471 Other Charges Temporary 7,819,960 13,784,564 0 -12,336,424 9,268,101 Accommodation Parking 2,045,329 3,747,011 -2,509,654 -1,401,797 1,880,888
Page 56 of 132 Total 65,507,848 237,040,707 -2,881,165 -230,602,290 69,065,104
38. The most significant improvements have been seen in Housing Benefit Overpayments. The amount of cash collected or taken through Housing Benefits has more than doubled. There has been an additional resource employed and a new data sharing arrangement with HMRC implemented.
39. The collection of older debt within the Collection Fund has improved with additional resources employed and the adoption of more targeted collection paying considerable benefits. The in-year collection of Council Tax remains a challenge with external factors influencing the level of affordability for local residents.
40. Adults Social Care debt collection was identified as an area of poor performance during 2017/18 with a considerable amount of aged debt being collated on the Balance Sheet. The level of debt increased by less than £100,000 during 2018/19 (nearly £1 million in 2017/18) with practically no write offs. New processes are still being embedded, but the prospect of continued improved collection is high.
41. In terms of areas of weakness, Temporary Accommodation continues to carry a significant cost of non-collection. Even after affordability limits and Housing Benefits income the debt increased by approximately £1.5 million during 2018/19. More work is being carried out in this area with a recovery plan in place expecting to generate cash savings during 2019/20.
42. Housing Rent Deposits is another area which is operating at a lower level but does generate a relatively high cost in terms of non-collection. This cost does need to be analysed in more detail in conjunction with the level of savings generated by avoiding higher levels of homelessness. The policy and process is under review.
Capital Outturn 2018/19
43. The original 2018/19 capital programme approved in February 2018 totalled £305.605 million for the General Fund with a further £22.589 million for the HRA. Capital projects have been monitored monthly during 2018/19, with progress reported to the Executive on a quarterly cumulative basis.
44. Final capital expenditure for the year is £140.113 million for the General Fund and £22.773 million for the HRA. A breakdown of the expenditure compared to the original programme for the year is shown in the table below
Capital Programme 2018/19 Opening Final Total Total Spend Analysis Programme Spend Variation Variation Appendix A £million £million £million % Place & Infrastructure 33.993 24.190 -9.803 -28.84% People Department 10.900 8.324 -2.576 -23.64% Chief Executive's Department 2.641 1.551 -1.090 -41.26% Customer & Commercial 19.897 25.906 6.009 30.20% Total General Fund Excluding Corporate Projects 67.431 59.971 -7.460 -11.06%
Page 57 of 132 Corporate Projects 238.174 80.141 -158.033 -66.35% Total General Fund Programme 305.605 140.113 -165.493 -54.15% Housing Revenue Account 22.589 22.773 0.184 0.81% Total LBC Capital Programme 328.194 162.886 -165.309 -50.37%
45. The financing of the original 2018/19 capital programme compared to the financing of the final capital programme is shown in the table below.
46. Prudential borrowing is significantly lower than originally budgeted for, due to the re- profiling of the financing of the Investment Properties project, the LLAL Debentures and the Wholly Owned Housing Company. The borrowing for HRA projects is more than budgeted for, due to the earlier delivery of the Marsh Farm Development.
Capital Programme 2018/19 Opening Final Total Total Financing Analysis Programme Spend Variation Variation £million £million £million % Grants & Contributions 18.637 14.679 -3.958 -21.24% Revenue Contributions 0.904 0.633 -0.271 -30.03% LLAL Dividend - Capital Element 4.084 5.153 1.069 26.18% Capital Receipts 10.273 9.839 -0.434 -4.22% General Fund Prudential Borrowing 33.533 29.709 -3.824 -11.40% General Fund Prudential Borrowing for Corporate Projects 238.174 80.100 -158.074 -66.37% Total General Fund Financing 305.605 140.113 -165.493 -54.15% Major Repairs Reserve 13.259 10.005 -3.254 -24.54% Grants & Contributions 0.000 0.746 0.746 n/a Revenue Contributions 2.538 2.005 -0.533 -20.98% Capital Receipts 2.082 1.874 -0.208 -9.98% Prudential Borrowing 4.710 8.142 3.432 72.88% Total HRA Capital Financing 22.558 22.773 0.184 0.82% Total LBC Capital Financing 328.194 162.886 -165.308 -50.37%
47. The monitoring for the General Fund capital programme in 2018/19 predicted a net reduction in spend of £158.306 million for the year compared to the opening programme, £158.024 million of which related to Corporate Projects. The final costs compared to the monitoring forecast are shown below by department, together with the final position for the HRA.
Comparison to February Forecast
Capital Programme 2018/19 Final Final Total Total Spend Analysis Forecast Spend Variation Variation Appendix A £million £million £million % Place & Infrastructure 30.015 24.190 -5.825 -19.41% People Department 7.523 8.324 0.801 10.64% Chief Executive's Department 1.650 1.551 -0.099 -5.98% Customer & Commercial 27.961 25.906 -2.056 -7.35% Total General Fund Programme 67.149 59.971 -7.178 -10.69%
Page 58 of 132 Corporate Projects 80.150 80.141 -0.009 -0.01% Total General Fund Programme 147.299 140.113 -7.187 -4.88% Housing Revenue Account 25.301 22.773 -2.528 -9.99% Total LBC Capital Programme 172.600 162.886 -9.714 -5.63%
48. The final forecast estimated General Fund expenditure of £147.3 million and HRA expenditure of £25.3 million for the year. For the final spend there has been a further £9.7 million re-phasing across the General Fund and HRA programmes. The notably re-profiled schemes include;
• £3.029 million for Investment Properties (PI44) – due to the uncertainty surrounding market conditions and the performance of certain sectors the purchase of additional property has been paused pending for analysis. • £0.858 million for Fleet Transport Replacement Programme (PI22) – budget has been rephased to fund a number of vehicles expected to be delivered early in 2019/20. • £0.978 million for LLA Highway Access (Junctions of ELC) (PI51) – There has been a delay in the delivery of the scheme. • £0.992 million for Temporary Accommodation Purchase Scheme (TAPS) (CC11) – Additional properties are expected to be purchased during 2019/20 to reduce the need for private sector placements. • £1.498 million for BTS major works (HRA3) – certain elements of the maintenance work on the housing stock have been delayed until 2019/20
49. The accuracy of Capital Programme forecasting has improved in 2018/19. This of vital importance to overall financial management as there are considerable treasury management implications for not accurately forecasting for capital expenditure and financing. This is an area which will be developed further during 2019/20.
50. During 2018/19 the Vale Crematorium & Chapel Upgrade/Refurbishment scheme reported an overspend of £0.182 million. A separate report explaining the project overrun is expected.
51. Within the HRA BTS Major Works scheme there is a sub-scheme relating to the cladding of tower blocks. This scheme is expected to incur additional costs compared with the original costed proposal due to an increase in the specifications of the cladding.
52. All other overspends incurred in 2018/19 have been funded by additional external resources, reducing approved future years budgets or releasing budgets from other schemes. The final financing analysis compared to forecast is shown below.
Capital Programme 2018/19 Outturn Final Total Total Financing Analysis Budget Spend Variation Variation £million £million £million % Grants & Contributions 15.256 14.679 -0.577 -3.79% Revenue Contributions 0.610 0.633 0.023 3.69% LLAL Dividend - Capital Element 4.084 5.153 1.069 26.18% Capital Receipts 11.987 9.839 -2.148 -17.92% Prudential Borrowing 36.117 29.709 -6.409 -17.74%
Page 59 of 132 Prudential Borrowing for Corporate Projects 79.245 80.100 0.855 1.08% Total General Fund Financing 147.299 140.113 -7.187 -19.17% Grants & Contributions 0.381 0.746 0.365 95.81% Revenue Contributions 2.651 2.005 -0.646 -24.35% Major Repairs Reserve 10.920 10.005 -0.915 -8.38% Capital Receipts 3.046 1.874 -1.172 -38.47% Prudential Borrowing 8.303 8.142 -0.161 -1.93% Total HRA Capital Financing 25.301 22.773 -2.528 -9.99% Total LBC Capital Financing 172.600 162.886 -9.715 -5.63%
53. The major re-profiling explained in paragraph 27 has created a further reduction in General Fund prudential borrowing of £6.409 million; which is illustrated in the table above.
54. The HRA capital spend was £2.528 million less than forecast, creating a reduction of £0.161 million in the need to borrow. There was a variance in the Major Works scheme of 0.915 million which is funded by the Major Repairs Allowance. The main variance in funding is Capital Receipts of £1.172 million less than forecast.
Key Risks 55. The main financial risks arising from the 2018/19 outturn position are the increased levels of demand and cost in some demand-led volatile service areas, most notably for support to children & families, the cost of temporary accommodation and the corporate property estate.
56. Difficult decisions will continue to face the Council to ensure that budgets are kept within the level of future resources available to the Council, including the further expected reductions in grant support from central government.
57. Effective financial planning remains key to ensuring that the Council continues to set a balanced budget each year that supports the delivery of essential services to the community
Consultations 58. None
Alternative options considered and rejected (please specify) 59. The Executive can accept, reject or the amend report
Appendices 60. Revenue Outturn Appendices:
Appendix A/A(i) Chief Executive’s Department Appendix B/B(i) Customer & Commercial Department Appendix C/C(i),(ii),(iii) People Department, including Schools Appendix D/D(i) Place & Infrastructure Department Appendix E/E(i) Public Health Commissioning & Procurement Department Appendix F/F(i) Housing Revenue Account Appendix G Budgets to be Carried Forward to 2019/20 Appendix H Movements in Reserves 2018/18
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Capital Outturn Appendices: Appendix I Capital Monitoring & Outturn 2018/19 Appendix J/J(i) Revised Capital Programme 2019/20 – 2023/24
Background Papers There are no background papers to the report .
Page 61 of 132 IMPLICATIONS
For Executive Reports: • All grey boxes must be completed • All statements must be cleared by an appropriate officer
For CLMT Reports: • Only the dark grey boxes must be completed • Clearance is not required
Legal Clearance Agreed By Dated The service director finance & audit’s responsibilities Raj Popat Principal Solicitor 6th June with regard to budget monitoring are set out in the 2019 council's constitution. The report provides members with financial information on the pressures likely to cause significant variances from the budget as well as ensuring service managers have the latest financial information to maximise their use of resources within authorised limits. Section 3 of the Local Government Act 1999 requires the Council as a best value authority to “make arrangements to secure continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness”. Monitoring of performance information is an important way in which that obligation can be fulfilled.
Finance Clearance Agreed By Dated A final outturn position has been achieved within the Dev Gopal, Service 4th June budget set for the year. However, significant Director Finance & Audit 2019 underlying cost pressures continue to strain the Council’s budget and although this has been met by the combined use of the central contingency budget and one-off compensating savings for 2018/19, some of the cost pressures will continue in to 2019/20. Work will continue, to ensure that robust plans are in place to address these impacts at the earliest opportunity.
Integrated Impact Assessment (IIA) – Key Points
Equalities / Cohesion / Inclusion (Social Justice) Clearance Agreed By Dated There are no direct equalities implications in this Sandra Hayes, SCS – 10th June report. Service Manager 2019
Environment Clearance Agreed By Dated
Page 62 of 132 There are no direct environmental implications to this Keith Dove, Strategic Policy 5th June report. Adviser 2019
Health Clearance Agreed By Dated There are no direct Health implications to this report. Stephen Gunther, Service 6TH June Director PHCP 2019
Executive Leader YES/NO
Portfolio Holder YES/NO
Community Safety Clearance Agreed By Dated
Staffing Clearance Agreed By Dated
Other Clearance Agreed By Dated
Chief Executive YES/NO
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Page 64 of 132 APPENDIX A SUBJECT: CHIEF EXECUTIVE’S DEPARTMENT REVENUE OUTTURN 2018-19 Report of: Chief Executive Report Author: Darren Lambert, Finance Business Partner
LEAD EXECUTIVE MEMBERS: COUNCILLOR SIMMONS
REPORT
Revenue Budget Overview for the Year
1. Net expenditure on the Chief Executive’s Department for 2018/19 is £3.715 million, an under-spend of £0.244 million for the year, a variation of 1.4% from the operating budget before recharging internal support to other departments.
The chart below, shows the forecast variations to budget reported by the department for the 2018/19 monitoring exercises, together with the final spend for the year.
Forecast Movements Reported in the 2018/19 Monitoring
2. The cumulative position forecast for the department in this year’s monitoring was a net underspend of around £0.199 million for the year. The main variations reported in the monitoring include:
Page 65 of 132 APPENDIX A
Main Overspends & Income pressures
• Business Intelligence - Ongoing budget pressures due to the underachievement of previous years savings following the establishment of the Business Intelligence service (£134,000). • Business Intelligence - GIS Income shortfall as trading contracts with Milton Keynes and Dacorum Councils and the CCG have been cancelled (£76,000) • Communications - Historic overspend on design and printing services. This is being mitigated by a council wide review of design and printing requirements (£113,000) • Information Technology - Unachieved prior year saving (£213,000) • Information Technology - Unachieved ICT trading income from schools (£55,000) • Information Technology - additional agency costs to support IT Transition project to roll out new equipment across the council (£54,000) • Transformation - Agilisys invest to save benefits not achieved (£250,000) • Service Director Transformation & Technology - Agency costs for the Interim Service Director (£60,000)
Main Underspends, Savings or Additional Income:
• Policy Communities & Engagement division - Salary underspends across the service due to vacancies (£76,000) • Business Intelligence - Schools information governance trading income for GDPR support (£76,000) • Planned Employee Cost Reductions across the department through reduced Agency & Overtime (£50,000) • Information Technology contract – the renegotiated contract included provision for the contractor to reimburse some costs to the Council as well as including some cost savings on software (£950,000)
Final 2018/19 Position and Changes from the Forecast
3. The department’s final spend compared to the approved budget and to the monitoring forecast is attached at Appendix A(i), summarised by service level for each Service Director. This shows an increase of £0.045 million in the final underspend for the year compared to the forecast. This is primarily due to:
• Policy, Communities & Engagement • Community Development – additional costs associated with 5 community centres that have been transferred back to the Council (£77,000) • Community Development – underspend in Strategy & Management costs, mainly due to a vacant post (£33,000) • Social Justice – employee underspend in the Strategic Community Service team due to vacancies (£32,000) • Social Justice – additional European Social Fund income received for the Community Led Local Development programme (£12,000) • Head of Service & Infrastructure Fund – underspend across the service (£40,000)
Page 66 of 132 APPENDIX A • Chief Executive – costs associated with the recruitment of the interim and new Chief Executive positions (£42,000)
None of the departments 2018/19 budget needs to be carried forward to 2019/20.
Departmental Outlook from the 2018/19 Outturn
4. There are a number of areas which will continue to impact on the departmental spend during 2019/20. These are summarised below together with an overview of proposed actions to help mitigate the potential pressure.
• Business Intelligence - Ongoing budget pressures due to the underachievement of previous years savings following the establishment of the Business Intelligence service (£134,000). A review of the structure of the service is planned for 2019/20 which will partly alleviate this budget pressure. • Business Intelligence - GIS Income shortfall as trading contracts with Milton Keynes and Dacorum Councils and the CCG have been cancelled (£76,000). The service is continually exploring opportunities to generate additional income through trading activity, and the selling of GDPR advice to schools during 2018/19 is an example of this. • Communications - Historic overspend on design and printing services. This is being mitigated by a council wide review of design and printing requirements (£113,000) • Information Technology – a number of budget pressures were reported during 2018/19 as outlined above. Overall, the service came in under budget but this was primarily due to one-off income. The overall budget for the service will be further reviewed during 2019/20, and the service are also reviewing all business applications across the Council including Agilisys contract in a bid to drive down corporate costs. • Community Development – additional costs associated with 5 Community Centres that have been transferred back to the Council (£77,000). The 5 community centres will continue to be operated by the Council in 2019/20, and options for maximising income potential will need to be developed.
Page 67 of 132
Page 68 of 132 Appendix A(i)
Chief Executive's Revenue Budget Outturn Statement 2018-19
Service Director/Service Area Approved Period 11 Variance to % of Budget Forecast Actual Forecast Budget Approved £'000 £'000 £'000 £'000 £'000 Budget Transformation & Technology Business Intelligence -38 99 82 -17 120 Transformation & Technology 197 -93 -83 9 -280 159 6 -1 -8 -160 -1.3%
Policy, Communities & Engagement Communications and Engagement 55 97 74 -24 18 Community Development 50 50 94 44 44 Democracy 1,387 1,323 1,306 -17 -81 Head of Service and Investment Framew 507 507 469 -38 -38 Local Resilience 63 63 70 7 7 Social Justice 824 810 760 -50 -64 2,885 2,849 2,771 -79 -115 -2.4%
Chief Executive Chief Executive -10 -2 40 42 50 Corporate and Democratic Core Costs 925 906 906 0 -20 915 904 946 42 31 2.6%
Total Department (net of related income) 3,959 3,760 3,715 -45 -244 -1.4% before internal recharges
Page 69 of 132
Page 70 of 132 APPENDIX B SUBJECT: CUSTOMER AND COMMERCIAL SERVICES DEPARTMENT REVENUE OUTTURN 2018-19
Report of: Director of Customer & Commercial Services Report Author: Darren Lambert, Finance Business Partner
LEAD EXECUTIVE MEMBERS: COUNCILLOR MALCOLM
REPORT
Revenue Budget Overview for the Year
1. Net expenditure on the Customer & Commercial Services Department for 2018/19 is £11.444 million, an over-spend of £0.096 million for the year, after allowing for the allocation of £1.880 million of contingency budget specifically held to cover cost risks on temporary accommodation to relieve homelessness. This is a variation of 0.2% from the operating budget before recharging internal support to other departments.
The chart below, shows the forecast variations to budget reported by the department for the 2018/19 monitoring exercises, together with the final spend for the year.
Page 71 of 132 APPENDIX B
Forecast Movements Reported in the 2018/19 Monitoring
2. The cumulative position forecast for the department in this year’s monitoring was a net overspend of £0.259 million for the year. The main variations reported in the monitoring include:
Overspends & Income pressures
• Housing (general fund) o Temporary Accommodation for Homelessness (£815,000 after applying the contingency of £1.88m) – whilst the mix of properties used during the year changed, with 76 TAPS (Temporary Accommodation Purchase Scheme) properties coming on stream by year end, the overall numbers in temporary accommodation only reduced marginally. Issues with the provision of alternative premises also had an adverse impact on costs, e.g. 100 units were planned at Chubb House but this never materialised meaning that clients remained in more expensive nightly let accommodation, and the purchase of Sherd lodge was delayed meaning that the benefits were only realised at the very end of the financial year o Rent Deposit Scheme (£212,000) - This is an ongoing budget pressure, as it is unlikely that all rent deposits paid out by the Council will be fully recovered. The rent deposit procedure is currently under review to ensure that the cost to the Council is minimised. A year end bad debt provision has been made for £120,000 o Housing Employee costs (£121,000)- Unachievable employee savings, including turnover provision, due to the need to fill front line posts o Housing Aids & Adaptations (£60,000) - capital salaries were not fully recovered due to a service restructure (£113,000). This was partly offset by salary underspends (£15,000) and additional admin income (£38,000)
• Director of Customer & Commercial Services o Procurement (£402,000)- Unachieved central procurement savings
• Revenues, Benefits & Customer Services o Revenues & Benefits (£224,000) – employee costs relating to unachieved turnover provision for Financial Assessments, Billing & Recovery and Systems o Business rates (£90,000) - Unbudgeted Rates Listing project costs for which an invest to save bid was submitted. This has delivered an increase of £533,000 in the business rates collection fund for 2019/20 of which the Council will keep £261,000, so the costs of the project are more than covered o Revenues & Benefits Trading (£56,000) - Unachieved trading income due to the cessation of the Watford and Three Rivers contract. The emphasis has switched from external trading to internal debt recovery o Billing & Recovery income (£52,000) - Loss of income due to policy changes where we can no longer charge fees for direct debits or arrangements o Billing & Recovery increased costs (£61,000) - Increased costs from using Civica on demand contractors who have been employed to remove the housing benefit processing backlog prior to the implementation of Universal Credit. This cost has contributed significantly towards improved performance in
Page 72 of 132 APPENDIX B handling Housing Benefit claims which helped towards the £1.46m improvement reported at year end (see below). o Council Tax Summons Income (£87,000) - the chargeable fee has been reduced from £125 to £75 per summons as we were unable to justify the higher fee to the Clerk of Court. An increase in the fee has been granted for next year that will help relieve part of this pressure o Housing Debt Collection (£228,000)- The target for recovery of Housing debt bought forward from previous years was set too high and is not achievable. Collection of HRA debt contributed £73,000 towards the target but collection of non-HRA debt did not take place due to cleansing of data taking longer than expected. o Financial Assessments (HB) (£100,000) - Overtime costs for work to protect the Housing Benefit subsidy threshold, helping toward a £1.46m underspend at year end. o Housing Benefit Admin Subsidy Grant (£298,000) - Cumulative reduction in the Housing Benefit Admin Subsidy grant received by the Council. Central Government imposed the grant reduction but the level of activity has not reduced. o Systems (Revenues & Benefits) (£58,000) - Software licence fee costs to support the new service delivery requirements o Enforcement Agents (£190,000) - additional Parking debt enforcement income not achieved due to lack of resources o Revenues – debt Tiger Team (£102,000) - Additional resources to improve debt collection were approved as an invest to save scheme. The resource worked across a number of service areas where improved collection of aged debt has been achieved.
Underspends, Savings or Additional Income:
• Human Resources & Monitoring Officer o Employees across the division (£242,000) - Salary underspends due to staffing vacancies o Trading (£72,000) - Additional out of Borough trading income from schools
• Housing (general fund) o Building & Technical Services (£236,000) - increased income from a mix of additional internal/external contract work and efficiencies
• Revenues, Benefits & Customer Services o Enforcement Agents (£483,000) - Increased Enforcement fee income on collection of Council Tax and Business Rates o Financial Assessments (£97,000) - new grant income received for Verify Earning & Pensions (VEP) service. This will be spent to improve performance o Financial Assessments Housing Benefits (£100,000) - Service review savings following reduction in HB grant and introduction of Universal Credit o Discretionary Rate Relief (£99,000) - Budget not utilised in 2018/19 o Housing Benefit (£1.46m) - The net cost of Housing Benefit payments was expected to come in significantly under budget due to the recovery of overpayments against the cautious provisions made previously for outstanding debt and the in-year position on this year’s expenditure and subsidy receivable.
Page 73 of 132 APPENDIX B The additional resources brought in to the team have ensured that subsidy thresholds were met.
• Department Wide o Employees (£175,000) – planned employee cost reduction relating to agency spend and overtime
Final 2018/19 Position and Changes from the Forecast
3. The department’s final spend compared to the approved budget and to the monitoring forecast is attached at Appendix A(i), summarised by service level for each Service Director. This shows a reduction of £0.163 million in the final costs for the year compared to the forecast. This is primarily due to:
• Finance & Audit . Accountancy Services – employees underspend due to vacancies (£43,000) . Accounts & Insurance – underspend in software licence costs (£35,000) and additional internal income achieved by the accounts receivable team (£33,000) which indicates an increase in activity levels . Service Director Finance & Audit – an increase in costs of the Shared Anti-Fraud Service (£124,000) offset by a reduction in external audit fees (£63,000)
• Housing (general fund) . Building Technical Services – a reduction in the net surplus position reported at period 11 (£56,000) . Stopsley Mobile Home & Caravan Park – underspend (76,000) used as a revenue contribution to capital resources for future site improvements
• Director of Customer & Commercial Services . overspend on employee costs relating mainly to the National Graduate Development Programme (£39,000) and the Commercial Development Manager who has supported managers across the Council to increase trading income (£54,000)
• Revenues, Benefits & Customer Services . Customer Contact Centre underspend on employees due to vacancies (£62,000), additional income from the Schools Admissions team towards employee costs (£28,000) and an underspend on Council Tax Hardship Relief (£35,000) . Revenues • A reduction in the final spend relating to the debt Tiger Team (£46,000) • An underspend against Big Lottery funding received (£31,000) • A further shortfall in income relating to the collection of aged debt (£97,500)
Page 74 of 132 APPENDIX B • A further overspend on employee costs in the Financial Assessments (HB) team to ensure that the Housing Benefit subsidy threshold as not exceeded (£83,000)
• Billing & Recovery – additional costs were incurred in relation to tracing and insolvency work (£50,000) and postages (£43,000) which were more than offset by a reduction in rates listing project spend (£21,000), court fees (£23,000) and additional summons income (£156,000) • Enforcement agents – additional income (£42,000)
£170,674 of the departments 2018/19 budget needs to be carried forward to 2019/20 subject to approval by Executive. Of this, £123,319 relates to Homelessness Reduction Grant to continue with prevention work on reducing homelessness. The other £47,355 is required to provide additional finance support to services in areas that are key to the financial efficiency and sustainability plan including housing and children’s services.
Departmental Outlook from the 2018/19 Outturn
4. A number of the variations reported during the year will continue to be ongoing pressures in 2019/20. These are summarised below together with mitigations or expected actions aimed at mitigating the budget pressures.
• Housing (general fund) o Temporary Accommodation (Homelessness). This will continue to be a significant cost pressure. The service has been set a target of reducing costs by £2m by the end of 2020/21; the aim is to achieve this by reducing the overall numbers in temporary accommodation gradually, particularly in the more expensive types of accommodation, such as nightly lets accommodation. An integral part of the project will be to reduce debt levels. o Rent Deposit Scheme. The rent deposit procedure is currently under review to ensure that the cost to the Council is minimised by tightening up the requirements for providing rent deposits and also for recovering the cost of the deposit
• Director of Customer & Commercial Services o Procurement - Unachieved central procurement savings. Services across the department will need to continue to work with the procurement team to identify potential opportunities for cost savings. However, this is likely to take time to achieve, and therefore this is likely to be a budget pressure in 2019/20.
• Revenues, Benefits & Customer Services o Revenues & Benefits employee costs relating to unachieved turnover provision for Financial Assessments, Billing & Recovery and Systems. Although this pressure has been partly addressed for 2019/20, the services still have a turnover provision target to achieve. This is likely to be an ongoing budget pressure as the services need fully resourced teams to ensure that income across some key services can be sustained
Page 75 of 132 APPENDIX B o Business rates - Unbudgeted Rates Listing project costs for which an invest to save bid was submitted. A business case is needed to demonstrate that this cost investment can lead to a sustainable net income to the collection fund. o Billing & Recovery increased costs - Increased costs from using Civica on demand contractors who have been employed to remove the housing benefit processing backlog prior to the implementation of Universal Credit. The service is fundamentally under resourced for the volumes it is receiving. At year end the additional pressure of issuing 20,000 benefit notifications causes a backlog to occur. The service is developing a business case to employ additional staff resources instead of expensive contractors and overtime to minimise this expenditure until automation and Universal Credit is fully rolled out in 2023. UC was initially to be rolled out by 2017 but this delay has put unprecedented pressure on the service. o Housing Debt Collection. The target has been reduced slightly for 2019/20 but will continue to be a budget pressure. Further progress is expected during 2019/20 as the quality of data is being continually improved which provides a much clearer picture of those debts that should be recoverable. o Financial Assessments (HB) - Overtime costs for work to protect the Housing Benefit subsidy threshold. This will continue to be an ongoing budget pressure if performance slips and is not effectively managed. o Systems (Revenues & Benefits) - Software licence fee costs to support the new service delivery requirements. This will continue to be an ongoing budget pressure unless the service can identify a way of covering the cost. o Revenues – debt Tiger Team - Additional resources to improve debt collection were approved as an invest to save scheme to ensure that collection rates for aged debts across a number of services were improved. Whilst there is still work to be done in some service areas, e.g. parking, non-HRA debt, improvement has been made in others, e.g. Housing benefit overpayments, Council Tax. Work needs to continue on improving debt collection across all services, and it may be necessary to recruit additional resources to oversee this activity. A detailed business case will be required to demonstrate how the additional resources will be used to ensure that all debt income targets are achieved.
Page 76 of 132 Appendix B(i)
Customer & Commercial Revenue Budget Outturn Statement 2018-19 Service Director/Service Area Approved Period 11 Variance to % of Budget Forecast Actual Forecast Budget Approved £'000 £'000 £'000 £'000 £'000 Budget Human Resources & Monitoring Officer Central Training 166 170 167 -4 0 Human Resources 123 -224 -244 -20 -367 Legal Services -63 -93 -61 33 2 Local Land Charges 0 0 227 -147 -138 9 -365 -6.6%
Finance & Audit Accountancy Services 14 -58 -105 -47 -120 Audit and Investigation -18 -33 -56 -24 -38 Accounts & Insurances 71 85 11 -74 -59 Service Director Finance & Audit 17 17 109 92 92 Airport Client -23 -23 -40 -17 -17 61 -12 -81 -69 -142 -3.3%
Housing (general fund) Allocation Of Costs From HRA 64 64 64 0 0 Building Technical Services -89 -325 -270 56 -180 Corporate & Democratic Core 646 607 607 0 -39 Stopsley Mobile Home & Caravan Site 2 2 -85 -87 -87 Homelessness 3,728 4,916 4,938 22 1,209 Housing Development 1,905 1,895 1,912 18 8 Strategy & Private Sector Housing 409 517 485 -32 76 6,665 7,675 7,652 -23 987 3.5%
Director of Customer & Commercial Services Corporate & Democratic Core 2,107 2,054 2,050 -4 -57 Director of CCS -352 50 190 140 543 1,755 2,104 2,240 137 486 26.1%
Revenues, Benefits & Customer Services Customer Contact Centre 569 559 434 -126 -136 Housing Benefits 458 -704 -748 -44 -1,206 Local Taxation 2,060 1,961 1,992 32 -67 Revenues -446 172 92 -79 539 2,640 1,987 1,770 -217 -870 -2.0%
Total Department 11,348 11,607 11,444 -163 96 0.2%
before internal recharges
Page 77 of 132
Page 78 of 132 APPENDIX C SUBJECT: PEOPLE DEPARTMENT REVENUE OUTTURN 2018-19
Report of: Director of People Report Author: Atif Iqbal, Finance Business Partner
LEAD EXECUTIVE MEMBERS: Councillor Waheed Akbar (Adults) & Councillor Mahmood Hussain (Children’s Services)
REPORT
General Fund Revenue Budget Overview for the Year
1. Net expenditure on the People Department (GF) for 2018/19 is £110.437 million, an overspend of £2.642 million for the year, a variation of 2.4% from the operating budget before recharging internal support.
The chart below, shows the forecast variations to budget reported by the department for the 2018/19 monitoring exercises, together with the final spend for the year.
Page 79 of 132 APPENDIX C
Forecast Movements Reported in the 2018/19 Monitoring
2. The cumulative position forecast for the department as at Period 11 was a predicted over spend of £3.122 million for the year. This was after allocating £1.207m additional budget from contingencies.
Children’s Services - as has been reported for the past two years, the budget is under severe pressure due to the high levels of care and support needed by children and families in the town and there was a projected over spend of £7.542m on care provision and staffing costs across Children and Families Social work (reducing to £6.334m after the contingency has been taken into account).
There was a projected overspend of £0.915m due to additional cost pressure in home to school transport for SEN pupils, due to increased numbers of pupils and the complexity of travel needs. The forecast over spends are partially offset by £1.173m of reduced costs and additional grant funding within Children’s services.
Adult Social Care – There was a net under spend of £2.763m projected across the division at period 11. Of this, £0.922m related to reduced spend across in-house service provision and the result of early implementation of 2019-20 savings projects. There was also a projected net underspend across purchased care of £1.280m from an underspend of £1.965m in Older Person’s residential and nursing placements offset by an overspend of £0.685m for support at home, Mental Health and Learning Disability services. Additional winter resilience grant of £0.788m was announced in December 2018, and an increase in recovery of money held in direct payment holding accounts also helped contribute towards the under spend. ASC care management staffing was predicted to breakeven. The service also benefitted from £0.758m continued grant allocation which was awarded since the budget was set.
3. The cumulative position forecast for the department in this year’s monitoring was a net overspend of £3.122 million for the year. The main variations reported in the monitoring include:
Overspends & Income pressures
• £2,587,000 overspend on children’s residential placements
• £1,939,000 overspend on children’s agency foster placements
• £477,000 overspend on Special Guardianship Orders
• £385,000 overspend on 18+ Unaccompanied Asylum Seeking Children
• £245,000 overspend on Leaving Care Services
• £663,000 overspend on Looked After Children staffing due to use of agency staff
• £85,000 overspend on Children’s Social Care Legal Services
Page 80 of 132 APPENDIX C
• £38,000 overspend on the Emergency Duty Team
• £68,000 overspend on Looked After Children supplies and services
• £85,000 overspend on Child Protection Services
• £810,000 overspend on SEN transport
• £430,000 overspend on Adults Mental Health purchased care
• £54,000 overspend on Learning Disability Services
• £444,000 increase in the Adult Care bad debt provision
Underspends, Savings or Additional Income:
• £423,000 on Early Years and Children’s Centres primarily lower running costs
• £165,000 on Disabled children’s Services mainly London Road Resource Centre and the short breaks service
• £87,000 net underspend across other Prevention and Early Intervention Services
• £243,000 underspend on mainstream Home to School Transport
• £101,000 additional penalty notice income under Education Welfare Services
• £103,000 underspend in staffing budgets across Support, Challenge and Intervention Services
• £51,000 additional income for the school meals service
• £142,000 additional income across Support, Challenge and Intervention Services mainly from government grants and traded services
• £371,000 underspend on Learning Disability Service due to early implementation of 2019-20 savings
• £414,000 underspend on Extra Care and Reablement Services due to early implementation of 2019-20 savings
• £227,000 underspend on Day Care Services due to early implementation of 2019-20 savings
• £1,908,000 underspend on Older Persons and Physical Disability Residential and Nursing placements
• £165,000 underspend on Older Persons and Physical Disability non-residential care
Page 81 of 132 APPENDIX C
• £105,000 underspend on Care Management staffing
• £758,000 additional ASC grant received from central government post budget setting
• £154,000 underspend on ASC Drug and Alcohol placements
Final 2018/19 Position and Changes from the Forecast
4. The department’s final spend compared to the approved budget and to the monitoring forecast is attached at Appendix A(i), summarised by service level for each Service Director. This shows a further underspend of £0.479 million in the final spend for the year compared to the forecast. This is primarily due to:
• £30,000 increased spend on Section 17 payments • £45,000 increased spend on looked after children purchased care • £193,000 increased spend on Children and Families social work staff • £61,000 increase underspend on Children with Disability Services mainly on shared care and direct payments • £157,000 increase underspend on SEN and Home to School transport due overstated projection on routes that had ceased • £92,000 increased grant and traded income across Prevention and Early Intervention Services • £72,000 increased underspend on Learning Disability day services • £309,000 increased underspend across Adult Social Care purchased care • £103,000 further underspend on ASC Care Management staffing • £44,000 increased spend due to further allocation to the ASC bad debt provision
There are three carry forward requests made in 2018/19 for the following:
• £21,000 for Schools Catering Service to help support the costs of tendering for a contract to non-Luton schools which will generate additional income to the service if successfully awarded. • £17,250 for improved IT at Flying Start children’s centres to enable more agile working for 22 staff located at the site. • £26,663 for the Luton Children’s Safeguarding Board which is the balance remaining on the Luton hosted pooled budget. This money will be used to continue the work programme of the board in 2019-20.
Departmental Outlook from the 2018/19 Outturn
5. The current pressures on the children and families budget are not short term and will continue to impact in 2019-20. This pressure is not unique to Luton or any particular type or group of councils. Across the country, over the past year, almost 2.4 million people contacted children's services because they were worried about a child - a 78% increase on 10 years ago, while serious investigations over concerns of significant harm are up from just under 77,000 in 2008 to almost 200,000 last year - a rise of 159%.
Page 82 of 132 APPENDIX C The newly developed Luton Families Programme brings together all Children’s Services that are in a recurrent deficit position, and through a combination of invest to save projects, plans to reduce the budget deficit over the next 5 year period. The additional investments are included in the 2019-20 budget along with an additional £1.346 million of government grant funding awarded to help meet current social care pressures.
Within ASC, the Improved Better Care fund will still be available in 2019-20 and it is anticipated that by this time, there will be noticeable return on the investment made, helping to reduce the rate of growth in Adult Care costs and improving the sustainability of future budget resources for providing Adult care services. There will be no additional ASC Precept available in 2019/20 and beyond as LBC has fully utilised the available precept over the three year period between 2016/17 to 2018/19. Additional grant funding of £0.788 million has also been announced for adult social care to help alleviate forthcoming winter service pressures in 2019-20. Due to no additional iBCF funding available beyond 2019/20, it is anticipated there will be a cliff edge budget position for ASC of £4.3m in 2020/21 and onwards.
SCHOOLS BUDGET REPORT - DEDICATED SCHOOLS GRANT
6. £153.886 million of Dedicated Schools Grant (DSG) was received for 2018/19, net of £0.777 million Early Years adjustment relating to 2017/18. It has not been necessary to drawdown on the £3.121 million of unspent grant available from 2017/18, as the final position for the 2018/19 is a net underspend of £3.856 million compared to budget. This consists of:
Central Schools Budgets Budget Outturn Variation £’000 £’000 £’000 Central School Budgets 18/19 25,594 24,028 -1,565 Central budgets now deemed ISB 0 0 52 Early Year Adjustment 17/18 777 Brought Forward Underspends 17/18 0 0 -3,121 Central DSG Reserves at 31/03/2019 -3,856
Central Schools Budget 7. The gross underspend for central expenditure in 2018/19 is £1.513m, representing 5.9% of the available budget. The main variations for the year were:
• £0.766m underspend in the Early Years Block - relating to reduced numbers of 3 & 4 year olds at the spring and autumn term census counts and also low take-up of the additional 15 hours early years education entitlement for working parents. This will be subjected to a retrospective clawback in 2019/20.
• £0.371m net underspend in the High Needs Block – the approved budget includes additional grant of £604k awarded in December 2018. This has helped to reduce the underlying cost pressures in this block relating to top-up funding within non-maintained and independent provision and also to cover the additional spend within alternative provision.
Page 83 of 132 APPENDIX C • £0.442m underspend in the Central Schools Block – where a contingency for the pupil growth fund was not utilised and net cost reductions in School Admissions due to increased trading income and staffing vacancies.
INDIVIDUAL SCHOOL BALANCES
8. Individual School Balances have increased between 1 April 2018 and 31 March 2019 by £0.675m with balances now standing at £17.038m, as detailed in Appendix C(ii).
An analysis of Consistent Financial Reporting returns at the 31st March 2019 from all maintained schools is shown below.
£’000 Total School Balances 17,038
Analysed as: Committed Balance 1,907 Community Focused Balances 1 Uncommitted Balance 15,130
Committed Balances
An analysis of the committed expenditure of £1.907m is shown in the table below and in more detail at Appendix C(iii).
£’000 % Capital and Building Works 139 7.3 Pupil Premium Grant 541 28.4 Universal Infant Free School Meals Grant 24 1.3 Prior Year Commitments 515 27.0 Partnership Funding 469 24.6 Specific Grant Balances 218 11.4 Total 1,907
School financial advisers will be engaging with schools to ensure that the sums identified as being committed are correctly assigned and are being spent as intended.
Uncommitted Balances
The level of uncommitted balances stands at £15.130m. The Schools Forum has approved the removal of the balances clawback mechanism in the light of government guidance and the ever tighter financial climate for schools, pending the implementation of the national funding formula. This decision will be reviewed again in future.
Schools in Deficit
9. Lealands High school has reduced its deficit from £241k to £42k, a reduction of £199k. Local Authority officers are working with the school to ensure that the budget is brought back into balance.
Bushmead Primary School’s deficit has increased from £78k at the start of the year to £262k at the end of the year in line with the agreed deficit recovery plan. The school’s financial adviser is working with the school to ensure that full deficit is eliminated by March 2021 as agreed in the licensed deficit recovery plan.
Page 84 of 132 APPENDIX C
Cheynes Infant School is showing a deficit of £30k despite of starting the year in £14k surplus. As this school is in the process of merging with another school, the plan is to deliver future efficiencies as a result of this merger which will eliminate this deficit position.
Norton Road Primary School is showing a deficit of £72k despite of starting the year in £135k surplus. The schools financial advisers are drawing up a deficit recovery plan with the school which will eliminate this deficit within three years. Avenue Centre is showing a deficit of £21k despite of starting the year in £6k surplus. The schools financial advisers are drawing up a deficit recovery plan with the centre which will eliminate this deficit within three years
Page 85 of 132
Page 86 of 132 Appendix C(i)
People (Non-Schools) Revenue Budget Outturn Statement 2018-19
Service Director/Service Area Approved Period 11 Variance to % of Budget Forecast Actual Forecast Budget Budget £'000 £'000 £'000 £'000 £'000 Director of People Capital Asset and PFI 7,889 7,689 7,675 -15 -214 Corporate and Democratic Core 415 380 380 0 -34 Education Services Grant 0 0 Management 585 617 617 0 31 School Central Costs 1,018 1,025 1,027 3 9 9,907 9,711 9,699 -12 -208 -2.0%
Prevention & Early Intervention Assessment and Monitoring 464 524 516 -7 52 Disabled Children and Support 3,026 2,922 2,861 -61 -165 Early Years 3,672 3,231 3,249 19 -423 Education Psychology Service 488 523 511 -11 23 Family Services 65 39 32 -6 -33 Learning Support 90 86 89 3 -1 Management 318 365 391 26 73 PEI Integrated Services 769 812 806 -7 37 SEN Transport 2,806 3,729 3,616 -112 811 Student Support Transport 238 230 185 -45 -53 Youth Offending 1,481 1,465 1,450 -15 -31 Youth Service 448 292 292 0 -156 13,863 14,216 13,999 -217 135 0.9%
Children and Family Services Child Protection and LSCB 1,381 1,463 1,466 3 85 Family Services 3,118 3,092 3,151 58 32 Management 645 633 654 21 9 Purchased Care Services 14,826 20,394 20,439 45 5,613 Services for Looked After Children 8,128 8,846 8,988 142 860 Unapportioned Overheads 697 647 647 0 -50 Youth Service 43 40 43 3 -0 28,840 35,115 35,388 272 6,548 22.5%
Support, Challenge and Intervention Admissions 156 158 143 -14 -13 Behaviour and Tuition 0 69 69 0 69 Business Unit 34 -7 -11 -4 -44 Children in Care 105 125 103 -21 -2 Early Years 170 120 111 -9 -59 Education Welfare 0 -91 -81 10 -81 Home Educate 29 30 30 0 1 Inspection and Advice 679 539 501 -37 -178 Music Services 67 66 62 -5 -5 School Improvement 118 78 73 -5 -45 School Meals (gf) -23 -59 -63 -5 -40 School Transport 549 308 306 -3 -243 1,885 1,337 1,244 -93 -641 -15.8%
Adult Social Care Assessment & Care Management 21,629 19,961 19,965 5 -1,664 Brokerage Enablement 4,329 3,910 3,915 5 -414 Improved Better Care Fund -728 -2,039 -2,501 -462 -1,773 Management and Support -6,161 -5,608 -6,161 -553 0 MH Pooled Budgets 5,716 6,236 6,292 56 576 Resources Adults Under 65 6,248 5,916 5,866 -49 -381 Service Provision 2,282 2,112 2,065 -46 -217 Services for Adults Under 65 19,277 19,395 20,010 614 732 Unapportionable Central OHeads 708 656 656 0 -51 53,301 50,538 50,108 -430 -3,193 -6.0%
Total Non-Schools 107,795 110,917 110,437 -479 2,642 2.4% Page 87 of 132
Page 88 of 132 Appendix C(ii) SCHOOL BALANCES AS AT 31 MARCH 2019
Increase in Balances 2018-19 2018-19 Opening Closing in Change in School Balance Balance Balance % change £ £ £ % Lealands High School (241,003) (41,715) 199,288 -83% Ashcroft High School 1,080,277 1,913,039 832,763 77% Lea Manor High School 868,215 1,160,604 292,389 34% Stopsley High School 869,999 1,146,019 276,019 32% Luton Futures 0 0 0 0% Chapel Street Nursery 184,555 184,296 (259) 0% Grasmere Nursery 221,974 321,976 100,003 45% Hart Hill Nursery 209,265 194,987 (14,278) -7% Pastures Way Nursery 215,439 166,367 (49,072) -23% Rothesay Nursery 249,024 259,755 10,731 4% Gill Blowers Nursery School 214,080 261,025 46,945 22% Cheynes Infant School 13,568 (30,281) (43,848) -323% Foxdell Infant School 294,716 48,736 (245,980) -83% Hillborough Infant School 243,343 304,241 60,898 25% Someries Infant School 288,935 265,498 (23,437) -8% Warden Hill Infant School 158,898 58,200 (100,699) -63% William Austin Infant School 478,413 386,721 (91,692) -19% Crawley Green Infant School 76,421 43,436 (32,985) -43% Farley Junior School 308,462 227,628 (80,834) -26% Ferrars Junior School 161,022 235,235 74,213 46% Foxdell Junior School 320,595 309,324 (11,271) -4% Hillborough Junior School 455,607 619,680 164,073 36% Someries Junior School 180,047 168,292 (11,755) -7% Sundon Park Junior School 203,863 255,268 51,405 25% Warden Hill Junior School 99,118 126,426 27,308 28% Wenlock VA Junior School 249,591 234,806 (14,785) -6% William Austin Junior School 289,804 248,106 (41,698) -14% The Meads Primary School 414,381 389,491 (24,890) -6% Norton Road Primary School 135,345 (72,119) (207,464) -153% Surrey Street Primary School 39,006 164,710 125,705 322% Tennyson Road Primary School 282,746 291,617 8,871 3% Wigmore Primary School 183,667 161,214 (22,453) -12% Bramingham Primary School 190,959 164,848 (26,111) -14% Beech Hill Community School 138,284 63,633 (74,650) -54% Leagrave Primary School 383,040 363,796 (19,244) -5% Waulud Primary School 130,459 218,524 88,065 68% Bushmead Primary School (78,393) (261,732) (183,339) 234% Stopsley Primary School 266,804 179,972 (86,832) -33% Ramridge Primary School 623,425 671,991 48,567 8% Icknield Primary School 281,194 263,778 (17,416) -6% Sacred Heart Primary School 99,299 86,562 (12,737) -13% Beechwood Primary School 528,075 423,972 (104,102) -20% Maidenhall Primary School 374,252 353,074 (21,178) -6% St Matthews Primary School 197,208 214,653 17,445 9% Pirton Hill Primary School 346,255 322,247 (24,007) -7% Southfield Primary School 385,124 418,719 33,595 9% Whitefield Primary School 479,169 333,304 (145,865) -30% Denbigh Primary School 311,464 443,959 132,495 43% Downside Primary School 1,165,777 1,479,594 313,817 27% Putteridge Primary School 571,079 496,253 (74,826) -13% St Joseph's Primary School 116,124 93,461 (22,663) -20% Avenue Centre for Education 6,306 (21,415) (27,721) -440% Woodlands Secondary School 222,127 23,593 (198,534) -89% Richmond Hill School 532,186 506,174 (26,012) -5% Lady Zia Wernher School 343,930 196,779 (147,151) -43% 16,363,520 17,038,325 674,805 4% Page 89 of 132 Appendix C(iii) School Committed Balances at 31 March 2019
Capital/ Unspent Specific Building & Pupil UIFSM Prior year Partnership Grant ICT Works Premium Grant commitments Funding Balances School £ £ £ £ £ £ Total £ Lealands High £ - £ - £ - £ - £ - £ - £ - Ashcroft High £ - Lea Manor High £ - £ - -£ 6,160 -£ 22,406 -£ 21,798 £ - -£ 50,364 Stopsley High -£ 68,462 -£ 23,712 -£ 164,310 -£ 256,483 Total Secondary £ - -£ 68,462 -£ 6,160 -£ 46,117 -£ 186,108 £ - -£ 306,847 Chapel Street Nursery -£ 1,000 -£ 2,440 -£ 4,881 -£ 1,113 -£ 2,141 -£ 11,575 Grasmere Nursery -£ 2,672 -£ 2,672 Hart Hill Nursery -£ 160 -£ 160 Pastures Way Nursery £ - £ - £ - -£ 2,966 £ - £ - -£ 2,966 Rothesay Nursery £ - -£ 8,824 £ - -£ 119 £ - -£ 111,312 -£ 120,255 Gill Blowers Nursery -£ 12,791 -£ 177,486 -£ 190,277 Total Nursery -£ 1,000 -£ 24,055 £ - -£ 188,285 -£ 1,113 -£ 113,453 -£ 327,906 Cheynes Infant £ - £ - £ - £ - £ - £ - £ - Foxdell Infant £ - £ - £ - £ - £ - £ - £ - Hillborough Infant -£ 3,860 -£ 3,860 Someries Infant £ - £ - £ - £ - £ - £ - £ - Warden Hill Infant -£ 1,573 -£ 1,573 William Austin Infant £ - Crawley Green Infant £ - £ - £ - £ - £ - £ - £ - Farley Junior £ - £ - £ - £ - £ - £ - £ - Ferrars Junior £ - £ - £ - -£ 10,813 £ - -£ 2,148 -£ 12,961 Foxdell Junior £ - -£ 114,479 £ - -£ 7,539 £ - £ - -£ 122,018 Hillborough Junior £ - £ - £ - £ - -£ 226,525 -£ 40,754 -£ 267,279 Someries Junior -£ 7,872 £ - £ - -£ 2,384 £ - £ - -£ 10,256 Sundon Park Junior £ - Warden Hill Junior -£ 2,630 £ - £ - -£ 2,630 Wenlock Junior -£ 39,501 -£ 53,762 -£ 93,263 William Austin Junior £ - The Meads Primary £ - -£ 102,849 £ - £ - £ - -£ 11,336 -£ 114,185 Norton Road Primary £ - £ - £ - £ - £ - £ - £ - Surrey Street Primary £ - Tennyson Road Primary £ - £ - £ - -£ 24,858 £ - £ - -£ 24,858 Wigmore Primary -£ 48,543 -£ 48,543 Bramingham Primary -£ 3,882 -£ 3,882 Beech Hill Primary £ - £ - £ - £ - £ - £ - £ - Leagrave Primary -£ 130,000 -£ 136,559 £ 68 -£ 23,419 -£ 21,036 -£ 310,945 Waulud Primary £ - Bushmead Primary £ - £ - £ - -£ 20 £ - £ - -£ 20 Stopsley Primary £ - £ - £ - £ - £ - £ - £ - Ramridge Primary £ - £ - £ - £ - £ - £ - £ - Icknield Primary £ - £ - £ - -£ 9,883 £ - £ - -£ 9,883 Sacred Heart Primary £ - Beechwood Primary £ - -£ 76,733 -£ 18,200 -£ 6,595 £ - £ - -£ 101,528 Maidenhall Primary £ - £ - £ - £ - £ - £ - £ - St Matthew's Primary -£ 49,622 -£ 20 -£ 49,642 Pirton Hill Primary £ - £ - £ - -£ 7,086 -£ 1,686 -£ 22,751 -£ 31,523 Southfield Primary £ - Whitefield Primary £ - Denbigh Primary £ - -£ 18,135 £ - £ - £ - -£ 6,700 -£ 24,835 Downside Primary £ - £ - £ - -£ 120 £ - £ - -£ 120 Putteridge Primary £ - St Joseph's Primary £ - Total Primary -£ 137,872 -£ 448,754 -£ 18,132 -£ 242,329 -£ 281,994 -£ 104,725 -£ 1,233,805 Avenue Centre for Education £ - £ - £ - £ - £ - £ - £ - Woodlands Secondary £ - £ - £ - £ - £ - £ - £ - Richmond Hill £ - £ - £ - -£ 9,634 £ - £ - -£ 9,634 Lady Zia Wernher -£ 28,852 -£ 28,852 Total Special/Alternative Provision £ - £ - £ - -£ 38,487 £ - £ - -£ 38,487 Grand Total -£ 138,872 -£ 541,271 -£ 24,292 -£ 515,217 -£ 469,214 -£ 218,178 -£ 1,907,044
Page 90 of 132 APPENDIX D SUBJECT: PLACE AND INFRASTRUCTURE DEPARTMENT REVENUE OUTTURN 2018-19
Report of: Director of Place & Infrastructure Report Author: Darren Lambert, Finance Business Partner
LEAD EXECUTIVE MEMBERS: COUNCILLORS TIMONEY AND CASTLEMAN
REPORT
Revenue Budget Overview for the Year
1. Net expenditure on the Place & Infrastructure Department for 2018/19 is £34.523 million, an over-spend of £0.997 million for the year, a variation of 1.7% from the operating budget before recharging internal support.
The chart below, shows the forecast variations to budget reported by the department for the 2018/19 monitoring exercises, together with the final spend for the year.
Forecast Movements Reported in the 2018/19 Monitoring
Page 91 of 132 APPENDIX D 2. The cumulative position forecast for the department in this year’s monitoring was a net overspend of around £0.220 million for the year. The main variations reported in the monitoring include:
Overspends & Income pressures
• Director of Place & Infrastructure o One-off costs associated with the review of the Central Bedfordshire Local Plan (£60,000).
• Public Protection o Coroner Service (£153,000) - Increase in projected service costs as reported by Central Beds Council which manages this service o Parking income (£276,000) - The sale of Bute Street Shoppers car park has resulted in a £345k loss of income. This is partly offset by a management fee of £69k for running the car park on behalf of the new owner o Licensing income (£70,000) - Unachieved additional income target (£42k) and reduction in taxi licensing o Selective licensing (£113,000) - introduction of the selective licensing scheme for private sector housing has been delayed o Food & Safety Service (£50,000) - Public Health will not be making the annual contribution to the Food & Safety team
• Property & Construction Services o Property estate costs (£850,000) - Ongoing Maintenance and utilities services budget pressures on town centre offices and operational sites combined with a general increase in repair costs. The service is undertaking a full review of maintenance to ensure only essential work is undertaken o Property Portfolio (£63,000) - Loss of rental income due to the disposal of Power Court. This was partly offset by interest earned on purchase repayments from the buyer. o Arndale House (£100,000) - net part year costs due to fit out period before tenant occupancy which included a rent free period. o Corporate Health & Safety (£190,000) - One-off, urgent professional support for the Corporate Health & Safety service (endorsed by CLMT) and some income shortfall o Arndale Market (£111,000) - Provision for bad debt against the Mall indoor market operator
• Public Realm o Street lighting (£223,000) - Savings from the roll out of LED street light columns have been more than offset by a 15% increase in energy prices o Streetworks permits and penalty charges (£106,000) – this is reliant on the amount of work utility companies carry out and is demand dependent; this reduction in fees received is due to less works being undertaken by utility companies in 2018/19 o Fleet Transport (£147,000) - income shortfall as a result of reduced capacity to trade due to staff vacancies; however existing commercial contracts were delivered and new contracts were brought in towards the year end
Page 92 of 132 APPENDIX D o Procurement savings (£110,000) - Unachieved central procurement savings in Public Realm, which need to be reviewed during 2018/19 o Winter maintenance (£207,000) – This service is delivered by the highways term maintenance contractor. This service is demand dependent and although there was a relatively mild winter, the costs are associated with the purchase of salt, various salt runs as well as contractual costs. Setting of future budgets will need to be reviewed to reflect the new way of delivery. o Refuse collection (£52,000) – this relates to the setup and operating costs for the food waste trial introduced in February o Cemeteries & Crematorium income (£358,000) - Shortfall in income is not unique to Luton with information received from undertakers suggesting a general 12% shortfall across the country; this is further compounded with the completion of new crematoria at Hitchin and Aylesbury. The income target for future years will need to be reassessed, as this will continue to be a budget pressure. Even with the shortfall to budget, the service still contributed net income of £688,000.
• Planning & Economic Growth o Strategic Planning (£158,000) – additional agency costs were reported to cover vacancies in Strategic Planning mainly to assist with the CBC Local Plan process o Adult Learning (£135,000) - Back dated rates payment (four years) for Adult Learning’s occupancy of offices at Lea Manor school. The service has no budget for this charge
Underspends, Savings or Additional Income:
• Public Protection o Supplies & services across the division (£53,000) - Underspends from a review of supplies and services base budgets where there has been no spend in the last 5 years. This will be an ongoing saving o Employees (£207,000) - Salary underspends across the service. Vacancies have been held pending the implementation of the Neighbourhood Regulatory Service restructure o Neighbourhood Enforcement Team (£100,000) – recruitment difficulties resulted in posts being vacant • Property & Construction Services o Property estate rents (£327,000) - Increase in rental income from three new investment properties and from Luton Town Football Club along with back dated rent for a telecom mast. This is partly offset by a shortfall in sundry property income o Property & Construction Trading (£340,000) - Additional fee income from housing, LLAL and schools for project work o Employees (£162,000) – a managed decision by the service not to fill some vacancies in the short term. This is to support cost reduction and may need to be reviewed if service delivery is affected o Basepoint Centre (£205,000) - Additional profit share from lettings income at the Basepoint Centre • Public realm o Street Cleansing (£312,000) – Reduction in cleansing vehicle costs (fuel, external hire and maintenance) due to acquisition of new vehicles (£178,000).
Page 93 of 132 APPENDIX D Implementation of the waste strategy (£100,000) and additional income from external customers (£34,000) o Waste consultants budget (£135,000) - Budget for waste consultancy is for the procurement work for the new waste contract, which is currently not expected to start until at least 2019 o Waste disposal (£350,000) – implementation of the waste strategy, including alternate weekly collection o Street lighting (£90,000) - Reduction in maintenance due to lower numbers of street lights getting damaged. Also the service has continued to reduce maintenance due to the role out of LED lighting and CMS o Passenger transport unit (£148,000) - Reduction in hire of external vehicles by PTU o Employee underspends across the division (£504,000) due to vacancies o Parks income (£74,000) – annual fee from London Luton Airport Ltd for the management of Wigmore Valley Park • Planning & Economic Growth o Employees (£89,000) - Salary underspends across the service due to vacancies, part of which offsets the reported overspend on agency staff within Strategic Planning explained above. o Adult Learning (£182,000) – underspend on the modern apprentice scheme
Final 2018/19 Position and Changes from the Forecast
3. The department’s final spend compared to the approved budget and to the monitoring forecast is attached at Appendix D(i), summarised by service level for each Service Director. This shows an increase of £0.778 million in the final underspend for the year compared to the forecast. This is primarily due to:
• Director of Place & Infrastructure o Management & Support Services - additional recharges to London Luton Airport for approved posts (£62,000) and employee underspends (£23,000) • Public Protection o Car Parking Service – additional supplies and services costs associated with the running of the service, including the Parking Enforcement Centre (£43,000) and postage (£20,000), plus a shortfall in reported income (£80,000) • Property & Construction Services o Building Control – an overspend on consultant costs (£114,000) which was partly offset by an underspend in employee costs (£48,000). The consultants have been working with the service to ensure that the service can compete in an increasingly competitive marketplace. o Building control shortfall in reported income (£165,000) due to difficulties in attracting work over the course of the year o Commercial Investment & Development – employee costs were overspent against forecast mainly due to agency costs (£94,000), although these were largely recovered through recharges to London Luton Airport Limited. A Minimum Revenue provision (MRP) charge was made in year in relation to new commercial investment properties (£922,000) which was partly offset by additional income from these
Page 94 of 132 APPENDIX D properties (£624,000). However there was a shortfall in income relating to the remainder of the property portfolio (£237,000) o Corporate Landlord & FM Services – overspends relating to Arndale House premises related costs (£109,000), Inspire sports centre additional annual lifecycle costs (£84,000), Albany premises costs, mainly rent (£110,000), and other premises costs, primarily repairs and maintenance costs (£486,000). o Design & Maintenance – an underspend in employee costs across the service (£70,000), additional income from fees in relation to Foxhall Homes ported income (£220,000) o Service Director Property & Construction – additional net income related to trading activity (£131,000) • Public Realm o Street Cleansing – a further underspend in vehicle related costs (£83,000) and additional unbudgeted income (£22,000) o Refuse collection – an overspend on employee related costs (£121,000) and on vehicle related costs (£55,000), partly related to the food waste collection trial o Fleet Management – a shortfall in internal income across all services that use vehicles (£154,000), which will be offset by underspends in those services o Parks, Cems & Crem – a slight improvement against the forecast shortfall of income was achieved at year end (£54,000) o Passenger Transport Unit – an underspend in vehicles related costs (£190,000) and additional Bus Service Operators grant from the Government (£80,000) o Waste Disposal & Management – a reduction in the volume of waste disposed of coupled with an increased level of recycling resulted in a further underspend at year end (£119,000) • Planning & Economic Growth o Development Control – employee costs were higher than forecast due to staff advertising costs and agency spend (£17,000), whilst income was short of forecast (£131,000), although income was still in excess of the approved budget o Skills and Funding – a one-off Government grant was received (£315,000) but there were overspends in relation to employees (£41,000) and business support costs (£43,000) unrelated to the grant. o Strategic Planning – employee costs were underspent against forecast, mainly due to agency staff costs being lower than expected (£92,000), and consultants costs were also significantly below forecast (£72,000). However, this was partly due to the CBC Local Plan examination being delayed which means further costs will be incurred during 2019/20.
£77,700 of the departments 2018/19 budget needs to be carried forward to 2019/20 subject to approval by Executive; of this £50,000 is to support the provision of a new childrens play area in Leagrave Park where the current facilities are now at end of life, and £27,700 is to support the Luton Car Club project to support the promotion of electric car usage in Luton.
Departmental Outlook from the 2018/19 Outturn
Page 95 of 132 APPENDIX D 4. A number of the variations reported during the year will continue to be ongoing pressures in 2019/20. These are summarised below together with mitigations or expected actions aimed at mitigating the budget pressures.
• Public Protection o Coroner Service – Discussions are ongoing with Bedford Borough and Central Bedfordshire in relation to service delivery options. However, this service will continue to be an ongoing area of concern in terms of cost. o Parking income – with the introduction of red routes and more flexible enforcement across the borough, the income target may be achievable but will need to be closely monitored; however, the loss of income from the Bute Street car park will be difficult to replace. o Licensing income – the service has undertaken a detailed review of licences and when they are due for renewal which will help inform more accurate reporting o Selective licensing – this will be monitored until a decision regarding implementation of a scheme is made and the associated charging structure agreed. • Property & Construction Services o Property estate costs – the size of the Council’s estate, and the return of a further 5 community centres to the Council’s portfolio during 2018, makes this an area of real concern. The Council has a statutory responsibility to maintain its property estate to an adequate standard, but adding more buildings to the portfolio adds additional pressure. This has resulted in the budget being overspent. Whilst some adjustments have been made to increase the budget for 2019/20, there is still a risk that demands may exceed the budget provision. The service needs to develop an agreed maintenance plan with an allowance for reactive repairs to align with the budget provision. If the provision for reactive repairs proves insufficient, the planned work programme should be curtailed where possible to accommodate the urgent repairs within budget. If costs cannot be contained within budget, then a report will need to be brought to the Executive outlining the issues and the financial implications. o Arndale House – the financial position on Arndale House should improve significantly in 2019/20 as rent free periods come to an end for existing tenants and new tenants move into the vacant floors. Due to Council services being located in Arndale House there will always be a net cost to the Council. o Arndale Market – until the future of the indoor market operator is resolved, this remains a risk
• Public Realm o Street lighting – the planned investment in further LED street lighting will help manage energy costs and maintenance costs going forward. However, energy prices are volatile and so the benefits achieved through LED lighting will need to be measured against the increase in energy unit costs o Streetworks permits and penalty charges – if utility companies continue to undertake less work, the team will need to be reviewed to reduce costs o Procurement savings – services will need to engage with procurement to identify potential opportunities if this target is to be achieved o Winter maintenance (£207,000) – This service is outsourced to the highway maintenance term contractor. The concern is that we had a mild winter this year, yet the budget was still overspent. If a bad winter is experienced next
Page 96 of 132 APPENDIX D winter, the overspend will be even greater. The service will therefore need to assess the required budget level and explore options for increasing the budget o Cemeteries & Crematorium income – The scale of the shortfall in income was significant and requires detailed analysis particularly given the level of investment made in the crematorium. The reasons for the reduction in income need to be fully understood so that appropriate action can be taken. This may require a business case to be developed.
• Planning & Economic Growth o Adult Learning – the service moved into Arndale House during 2018. However, the costs of occupying a floor in Arndale House far exceed the budget that the service has available. The service is primarily funded by Education Skills Fund Agency funds and has operated historically with a level of reserves. These reserves have largely been depleted and it is probable that they will be exhausted during 2019/20 unless the service takes radical action to review the service offered. If the reserves are depleted, any overspend will fall to the Council. It is therefore essential that service delivery options are explored. o Strategic Planning – the delay to the examination of the CBC Local Plan will mean that further costs will need to be incurred during 2019/20. Whilst unavoidable, these costs should be one-off, providing the CBC Local Plan process completes during 2019/20.
Page 97 of 132
Page 98 of 132 Appendix D(i)
Place & Infrastructure Revenue Budget Outturn Statement 2018-19 Service Director/Service Area Approved Period 11 Variance to % of Budget Forecast Actual Forecast Budget Budget £'000 £'000 £'000 £'000 £'000 Director of Place & Infrastructure Corporate & Democratic Core 1,998 1,925 1,898 -27 -100 Management & Support Services -34 75 -20 -95 14 1,965 2,000 1,878 -122 -86 -3.5% Public Protection Coroners Service 198 351 338 -13 140 Car Parking Service -1,563 -1,391 -1,242 149 321 Community Safety and Civil Protection 764 766 755 -12 -9 Licensing -334 -270 -247 23 87 Service Director Public Protection 10 10 3 -7 -7 Enforcement & Abandoned Vehicles 679 571 539 -32 -140 Environmental Health & Protection 790 668 625 -42 -165 Pest Control & Dog Wardens 207 232 183 -49 -24 Registration Services 214 219 215 -3 1 Housing Regulation and Enforcement 474 541 527 -15 53 Management Support 7 7 22 15 15 Trading Standards 425 429 451 22 27 1,872 2,135 2,170 36 299 10.9% Property & Construction Services Building Control 62 62 301 239 239 Commmercial Investment & Developmt -6,375 -6,768 -6,227 541 148 Corporate Landlord & FM Servs 101 989 1,827 838 1,726 Design & Maintenance -405 -744 -1,043 -299 -638 Health and Safety -7 183 174 -9 181 Service Director Property & Construction 12 -84 -216 -131 -228 -6,610 -6,363 -5,184 1,179 1,427 46.6% Public Realm Cleansing 4,106 3,979 3,297 -682 -808 Transport Trading -215 -136 -96 40 119 Fleet Management 239 212 365 153 126 Grounds Maintenance 23 -55 -60 -5 -83 Highways Services 13,869 13,974 13,966 -8 97 Management Support Services 36 13 12 -1 -24 Parks, Cems & Crem 1,135 1,531 1,449 -83 314 PTU -116 -313 -558 -245 -442 Recycling 1,315 1,299 1,993 694 677 Waste Disposal & Management 9,777 9,402 9,283 -119 -494 30,170 29,904 29,650 -254 -519 -1.2% Planning & Economic Growth Corporate & Democratic Core 58 54 54 0 -4 Development Control 333 311 443 132 111 Economic Growth and Investment 272 272 257 -15 -15 Highways Authority 34 34 108 74 74 Environmental Initiatives 245 189 201 12 -44 Highways 170 170 169 -1 -1 Service Director and Management Support 51 94 129 35 78 Modern Apprentice Scheme 188 6 6 0 -182 Other Adult Education 59 194 196 1 137 Public Transport -45 -45 -21 24 24 Skills and Funding 229 229 18 -211 -211 Strategic Planning 458 593 396 -197 -62 Transportation Strategy 4,078 3,968 4,052 84 -26 6,130 6,069 6,007 -61 -122 -1.7%
Total Department 33,525 33,745 34,523 778 997 1.7%
Page 99 of 132
Page 100 of 132 APPENDIX E SUBJECT: PUBLIC HEALTH, COMMISSIONING & PROCUREMENT DEPARTMENT REVENUE OUTTURN 2018-19
Report of: Director of Public Health Commissioning & Procurement Report Author: Atif Iqbal, Finance Business Partner
LEAD EXECUTIVE MEMBERS: COUNCILLOR Rachel Hopkins
REPORT
Revenue Budget Overview for the Year
1. Net expenditure for the Department for 2018/19 is: • Public Health Services £15.341 million, fully funded by Grant; • Commissioning & Procurement Services £12.370 million
The Public Health budget has a small underspend of £0.041 million (0.2%) in 2018/19 and in line with the specified grant conditions, this has been allocated to the specific Public Health reserve and will be carried forward to 2019/20 to continue supporting spend on public health activity.
Commissioning & Procurement has an underspend of £0.486 million (3.4%) for the year compared to budget.
The chart below, shows the forecast variations to budget reported in the monitoring over 2018/19, together with the final spend in the year. Public Health was forecast to be approximately on budget throughout the year
Page 101 of 132 APPENDIX E Forecast Movements Reported in the 2018/19 Monitoring
1. Mid-year there was expected to be a shortfall on Public Health grant funded services however, by Period 11 this position had changed and a break even position was reported.
For general fund services, the main variations being reported throughout the year were underspends from staff vacancies and reduced costs on supplies and services. These were primarily due to early delivery of 2019-20 savings projects. The predicted underspends were expected to be partially offset by a shortfall of Procurement income and the departmental contribution towards the National Graduate Development Programme
2. The cumulative position forecast for the department in this year’s monitoring was: • a balanced position for Public Health services • a net underspend of around £0.481 million for commissioning and procurement The main variations reported in the monitoring include:
Overspends & Income pressures
• £45,000 reduced trading income from schools and lower energy rebates within Procurement
• £28,000 departmental contribution towards the National Graduate Development Programme
• £31,000 additional pension costs incurred by the department.
Underspends, Savings or Additional Income:
• £35,000 staffing underspend due to a vacant post under the Director of Public Health
• £73,000 reduced spend on Adult Social Care contracts managed by Adults Commissioning • £36,000 staffing underspends due to vacancies within the Children’s Commissioning Team • £43,000 additional income coupled with underspends on Children’s Services contracts managed by the Children’s Commissioning Team • £374,000 Staffing underspends across Quality and Procurement Teams
Final 2018/19 Position and Changes from the Forecast
3. The department’s final spend compared to the approved budget and to the monitoring forecast is attached at Appendix A(i), summarised by service level for each Service Director. This shows: • a change of £0.041 million in the final position for public health services compared to the forecast • a very small change of around £0.004 million in the final underspend for commissioning and procurement compared to the forecast. This is primarily due to:
• £41,000 underspend on demand led Public Health contracts. In line with the grant conditions, this will be held in the specific public health reserve, pending use to meet the continuing programme of public health activity.
Page 102 of 132 APPENDIX E
Departmental Outlook from the 2018/19 Outturn
4. Although the PHCP department has successfully identified cost reductions to deliver the savings target needed in 2019/20 for General Fund services and has reduced Public Health spend to match the further grant reduction of £404k in 2019/20, there is still uncertainty on the future of the PH grant funding, including how this might change at the Governments forthcoming local government funding review due to be implemented from 2020/21.
Page 103 of 132
Page 104 of 132 Appendix E(i) Public Health Revenue Budget Outturn Statement 2018-19
Service Director/Service Area Approved Period 11 Variance to % of Budget Forecast Actual Forecast Budget Budget £'000 £'000 £'000 £'000 £'000 Director of Public Health Leadership & Intelligence 66 11 20 10 -45 General Costs -458 -179 -77 101 381 -393 -168 -57 111 335 62.2% Healthy Lives & Children's Joint Commsioning Diet & Nutrition 967 967 981 15 15 Leadership & Intelligence 0 -2 0 2 0 Public Health Programmes 6,219 6,209 6,007 -203 -213 Sexual Health 2,855 2,734 2,701 -33 -155 Smoking & Tobacco 791 750 769 19 -21 10,832 10,658 10,458 -201 -374 -3.4% Healthcare & Adults Commissioning Leadership & Intelligence 0 -17 -18 -1 -18 Luton Drug & Alcohol Partnership 4,794 4,794 4,794 0 0 Public Health Programmes 149 149 199 50 50 4,943 4,925 4,974 49 32 0.6% Quality & Corporate Procurement Commissioning Support 0 -34 -34 1 -34 -21.7%
Public Health Grant -15,382 -15,382 -15,382 0 0 0.0%
Net Public Health Costs 0 0 -41 -41 -41 -0.2% before internal recharges
Commissioning & Procurement Revenue Budget Outturn Statement 2018-19
Service Director/Service Area Approved Period 11 Variance to % of Budget Forecast Actual Forecast Budget Budget £'000 £'000 £'000 £'000 £'000 Director of Public Health Management and Support 198 186 189 3 -9 Unapportionable Central Overheads 343 335 335 0 -8 541 522 524 3 -17 -3.1% Healthcare & Adults Commissioning Adult Care Contracts & Commissioning 1,575 1,518 1,543 25 -32 Supporting People & Social Prescription 2,083 2,101 2,100 -2 17 Mental Health Pooled Budget 1,753 1,749 1,750 1 -3 5,410 5,368 5,392 24 -18 -0.3% Healthy Lives and Children's Integrated Commissioning Childrens Joint Commissioning 432 384 384 0 -48 Sport & Leisure 2,463 2,445 2,441 -4 -22 Cultural Services 3,111 3,097 3,090 -7 -21 6,006 5,926 5,915 -12 -91 -1.5% Quality & Corporate Procurement Contracting & Quality Assurance 494 404 377 -27 -117 Corporate and Democratic Core 54 51 51 0 -4 Corporate Procurement -5 -190 -178 12 -173 Service Director Quality & Corp. Proc. 16 21 22 1 6 Care Brokerage, Placements and 0 0 Commissioning Support 340 272 268 -5 -72 899 558 539 -19 -359 -16.2%
Total Commissioning & Procurement 12,856 12,375 12,370 -4 -486 -3.4% before internal recharges Page 105 of 132 Appendix E(i) Public Health Revenue Budget Outturn Statement 2018-19
Service Director/Service Area Approved Period 11 Variance to % of Budget Forecast Actual Forecast Budget Budget £'000 £'000 £'000 £'000 £'000
Total Department 12,856 12,374 12,330 -45 -527 -1.7%
Page 106 of 132 APPENDIX F SUBJECT: HOUSING REVENUE ACCOUNT REVENUE OUTTURN 2018-19
Report of: Director of Customer & Commercial Services Report Author: Darren Lambert, Finance Business Partner
LEAD EXECUTIVE MEMBERS: COUNCILLOR SHAW
REPORT
Revenue Budget Overview for the Year
1. The 2018/19 Housing Revenue Account budget was set with an original contribution to balances of £1.382 million, in line with HRA financing regulations that require contributions from revenue balances to support capital improvements and additions to the housing stock.
The final position for the year is an under-spend of £0.841 million compared to the original budget, giving a final contribution to balances of £2.223 million for the year.
The chart below, shows the forecast variations to budget reported by the department for the 2018/19 monitoring exercises, together with the final spend for the year.
Page 107 of 132 APPENDIX F
Forecast Movements Reported in the 2018/19 Monitoring
2. The cumulative position forecast for the department in this year’s monitoring was a net underspend of around £0.430 million for the year. The main variations reported in the monitoring include:
Overspends & Income pressures
• Income and costs for the Assisted Technologies Service have been moved to the general fund trading account
• Increase in work undertaken by the Shared Anti-Fraud Service
• Sheltered Accommodation - increased broadband costs
• Increased agency costs due to vacant Housing Management Team Officer posts
• Agency staff covering Vacant Leaseholder Officer Post
• Increase in staff costs due to a new Legal Officer (0.5fte) to support Right to Buy and two Money and Benefit officers to support Universal Credit
• Increased Revenue Contributions to finance capital expenditure
Underspends, Savings or Additional Income:
• Savings due to four vacancies in the Sheltered Accommodation service
• Increased commercial income from Shops due to rent reviews and recovery of outstanding debts
• Additional rental income from garages
• Savings in the Concierge and Estate Management team due to not being fully operational, this year. The service had previously been provided by an external provider but is now being provided in-house.
• Savings due to staff vacancies in the Housing Management team
• Additional income from leaseholders arising from the final payments relating to 2017/18 accounts.
Final 2018/19 Position and Changes from the Forecast
3. The department’s final spend compared to the approved budget and to the monitoring forecast is attached at Appendix A(i), summarised by service level for each Service Director. This shows an increase of around £0.410 million in the final underspend for the year compared to the forecast. This is primarily due to:
Page 108 of 132 APPENDIX F Overspends & Income pressures
Property Maintenance & Repairs – £219,000
• Increased repair costs on void properties and additional repairs expenditure on structural finishes
Underspends, Savings or Additional Income:
Housing General Costs - (£649,000)
• Reduced provision for bad debts arising from the reduction in the debt outstanding from tenants and leaseholders as a result of the debt Tiger Team work
• Net increase in charges in respect of tenants heating trading account
• Increases in investment income and the interest received on HRA capital reserves and revenue balances
• Reduced revenue contribution to capital expenditure arising from the decision to finance all capital expenditure on affordable housing not met from retained right to buy receipts from the capital reserve.
Departmental Outlook from the 2018/19 Outturn
4. It is anticipated that there will be additional pressure on the HRA in 2019/20 primarily due to the need to make additional revenue contributions to finance the additional pressures in the capital programme. However, the HRA budget will need to be managed to ensure that any additional cost pressures can be contained within budget.
Page 109 of 132
Page 110 of 132 Appendix F(i)
Housing Revenue Account Revenue Budget Outturn Statement 2018-19 Service Director/Service Area Approved Period 11 Variance to % of Budget Forecast Actual Forecast Budget Budget £'000 £'000 £'000 £'000 £'000
Housing Aids & Adaptatations 923 923 932 9 9 1.0% Property Maintenance & Repairs 12,265 12,265 12,484 219 219 1.8% Business Development and Tenant Participation 549 536 576 40 27 5.0% Service Director Housing 220 220 222 2 2 0.7% Housing General Costs -21,589 -21,749 -22,399 -649 -810 -3.8% Housing Management 4,836 4,598 4,637 39 -199 -4.1% HRA Shops 332 332 296 -36 -36 - Sheltered Accomodation 1,080 1,062 1,028 -33 -52 -4.8%
Net HRA Costs -1,382 -1,812 -2,223 -410 -841 -2.5%
Page 111 of 132
Page 112 of 132 Appendix G General Fund Services Carry Forward Requests Customer & Commercial Corp01 Finance External Trading Income FF1000/0*** Dev Gopal £47,355 To provide additional finance support to services in areas that are key to the financial efficiency and sustainability plan Corp02 Homelessness Reduction Grant GH6110/6090 Patrick Odling-Smee £123,319 2018/19 grant not fully utilised in year, required for 2019/20 to continue with prevention work on reducing homelessness £170,674 People
PE01 School Catering EV2267/3990 John Wrigglesworth £21,000 To support the costs of tendering for the contract to provide school meals to the 5 non- Luton Schools managed by the Chiltern Learning Trust, including costs for external marketing support. The tender is expected in May 2019 and the contract value is circa £2m, with an operating profit of £200k over the 3 year period of the contract. PE02 Fying Start Children's Centres EJ3445/3551 Jo Fisher £17,250 Improved IT capability for the 22 support workers located in the centres, by providing a basic laptop with 4G sim to enable on-site and home working. Workers currently have to return to base and share a single wyse terminal. £38,250
Place & Infrastructure
PI01 Wigmore Valley Park VP1101/3015 Alex Constantinides £50,000 To support capital funding in 2019/20 for replacement of end-of-life play equipment at Leagrave Park PI02 Sustainable Travel - Luton Car Club PE8200/3430 Sue Frost £27,700 Shine On grant for Luton Car Club project not fully utilised in 2018/19. Required to support the promotion of electric car usage in Luton.
£77,700 Corporate Corp01 EU Exit Preparation Funding £104,984 New burdens funding received at year end for Brexit preparations, to be carried forward to meet the cost of preparation and risk mitigation £104,984
General Fund Services Carry Forward Total £391,608
LBC Hosted Budgets PE04 LSCB Pooled Budget £26,663 The pooled budget is hosted by LBC, but managed by the respective Board. There is a small underspend forecast for the current year, to be carried forward to continue with the work programme of the board
Total Draft Carry Forwards to 2019/20 £418,271
Page 113 of 132
Page 114 of 132 Appendix H Movements to/from Revenue Reserves 2018/19 2018/19 Final Contributions
From Total Reserve To Reserve Movement £'000 £'000 £'000 Specific Reserves Invest to Save Repayment of Prior Advances 376 376 Debt Management Project -119 -119 SBRR Software -5 -5 Children's Transport Review -49 -49 5 Year Children & Families Investment Plan (Year 1) -58 -58 -231 376 145 Pensions Reserve Contribution in Year 350 350 350 350 Service Provision Use of Prior Year Carry Forwards Budgets -706 -706 Potential Carry Forward to 2019/20 418 418 Business and Employment match funding 1,900 1,900 2018/19 Staff Severance Provision surplus 350 350 EU Exit Preparation Funding 105 105 Transparency Code 13 13 -706 2,787 2,080 Reorganisation Reserve (Monitoring Balances) Cultural Enabler Funding -50 -50 -50 0 -50
Cremator Mercury Emissions Reserve 18/19 Fees contribution to reserve -38 196 158 -38 196 158 Butterfield Profit Share Reserve Profit Share, net of drawdown -200 345 145 Vauxhall pre-employment programme -47 -47 -247 345 98 Public Health Reserve Balanced position forecast 41 41 0 41 41 Investment Reserve Social Worker Workforce Strategy -13 -13 Flying Start Investment -95 -95 -107 0 -107 Insurance Reserve Operational surplus 2018/19 83 83 0 83 83 Funding Equalization Reserve Contribution to reserve (Base Budget - collection fund gains) 5,214 5,214 One-off S31 Business Rates Compensation Grant & Levy Surplus 1,173 1,173 0 6,387 6,387 Neighbourhood Governance Reserve Operational contribution from reserve 2018/19 -121 -121 -121 0 -121 Luton Investment Framework Reserve Operational contribution from reserve 2018/19 -469 -469 -469 0 -469
Total Movement in Specific Operational GF Reserves -1,970 10,565 8,595
Property and Commercialisation Sinking Fund Reserve General Fund Underspend2018/19 844 844 0 844
-1,970 10,565 9,439.167
Housing Revenue Account 2,223 2,223 Schools Page 115 of 132 1,411 1,411
Page 116 of 132 Appendix I Capital Outturn 2018/19 2018/19 Budgets 2018/19 Outturn Monitoring Explanation / Action Budget Funded Unfunded Original After P11 Final Final Final Released Over- Over- Budget Slippage Forecast Spend Variance Slippage Advances Budgets spend spend Ref Scheme Description Funding Total Total Total Total Total Total Total Total Total Total £m £m £m £m £m £m £m £m £m £m Place & Infrastructure Department Energy PI42 Energy Performance Contract Phase 1 & Phase 2 CR 0.650 0.704 0.654 0.668 0.013 0.000 0.007 0.000 0.006 0.000 Energy Sub Total 0.650 0.704 0.654 0.668 0.013 0.000 0.007 0.000 0.006 0.000 Highways Integrated Transport PI1 LTP Package for Integrated Transport CG 1.941 1.457 1.457 1.484 0.027 -0.008 0.000 0.000 0.035 0.000 PI5 NPIF - JUNC IMPR AT CARDIFF RD-DUNST RD CG 0.000 0.484 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 PI57 Digitalisation of existing safety camera stock CR 0.300 0.300 0.300 0.160 -0.140 -0.140 0.000 0.000 0.000 0.000 PI61 Red Routes CR 0.150 0.150 0.150 0.080 -0.070 -0.070 0.000 0.000 0.000 0.000 PI63 Speed restraint measures CR 0.300 0.300 0.210 0.231 0.021 0.000 0.000 0.000 0.020 0.000 Integrated Transport Sub Total 2.691 2.691 2.117 1.955 -0.162 -0.218 0.000 0.000 0.055 0.000 Roads Maintenance PI2 LTP Highway Maintenance CG 1.261 1.261 1.938 1.947 0.009 0.000 0.009 0.000 0.000 0.000 PI4 Resurfacing CR 1.400 1.373 1.373 1.531 0.158 0.000 0.093 0.000 0.065 0.000 PI14 Burr Street Square Public Realm Enhancements CR 0.020 0.020 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 PI15 Midland Road Square Public Realm Enhancement CR 0.030 0.030 0.110 0.103 -0.008 -0.008 0.000 0.000 0.000 0.000 Roads Maintenance Sub Total 2.711 2.684 3.421 3.581 0.160 -0.008 0.103 0.000 0.065 0.000 Parking Enforcement PI62 Enforcement of Red Routes using CCTV CR 0.180 0.180 0.180 0.117 -0.063 -0.063 0.000 0.000 0.000 0.000 PI23 Deploy CCTV Cameras for enforcement around schools CR 0.000 0.004 0.004 0.000 -0.004 -0.004 0.000 0.000 0.000 0.000 Parking Enforcement Sub Total 0.180 0.184 0.184 0.117 -0.067 -0.067 0.000 0.000 0.000 0.000 Other PI3 Replacement Highway Lighting 18/19 CR 1.000 0.996 0.996 1.115 0.119 0.000 0.000 0.000 0.119 0.000 PI8 Chobham Walk Parking Scheme CR 0.000 0.000 0.000 0.001 0.001 0.000 0.000 0.000 0.000 0.001 PI9 East Luton Corridor (South) CR 0.027 0.027 0.027 0.000 -0.027 -0.027 0.000 0.000 0.000 0.000 PI10 Luton Dunstable Busway - Works CG/CR/CG 1.000 0.030 0.030 -0.026 -0.056 0.000 0.000 -0.056 0.000 0.000 PI11 Luton Town Centre Transport Scheme CG/CR 1.100 0.803 0.803 0.631 -0.172 -0.172 0.000 0.000 0.000 0.000 PI12 M1 Junction 10a - Construction CG/CR 0.525 0.533 0.533 0.023 -0.510 -0.510 0.000 0.000 0.000 0.000 PI13 Parkway Station Northern Entrance CR 0.058 0.058 0.058 0.000 -0.058 -0.058 0.000 0.000 0.000 0.000 PI16 Luton Station Gateway CG 0.000 0.129 0.129 0.000 -0.129 -0.129 0.000 0.000 0.000 0.000 PI51 LLA Highway Access (Junctions of ELC) CG 1.200 1.000 1.000 0.023 -0.978 -0.978 0.000 0.000 0.000 0.000 PI79 Street Lighting LED Lantern Conversion CR 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Other Sub Total 4.910 3.575 3.575 1.766 -1.809 -1.873 0.000 -0.056 0.119 0.001 Highways Sub Total 10.492 9.133 9.297 7.418 -1.878 -2.166 0.103 -0.056 0.239 0.001 Parks PI17 Sports Facilities at Wandon Park PB/EF 0.200 0.200 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 PI18 Stockwood Park Veteran Tree Measures CG/CR/CG 0.035 0.088 0.012 0.011 -0.001 -0.001 0.000 0.000 0.000 0.000 PI64 Town centre Tree management programme CR 0.050 0.050 0.002 0.002 0.000 0.000 0.000 0.000 0.000 0.000 PI70 Wardown Park & Peoples Park play area safety surface CR 0.070 0.070 0.060 0.060 0.000 0.000 0.000 0.000 0.000 0.000 PI101 Wardown Park Bandstand CG 0.000 0.000 0.150 0.016 -0.134 -0.134 0.000 0.000 0.000 0.000 Parks Sub Total 0.355 0.408 0.224 0.089 -0.135 -0.135 0.000 0.000 0.000 0.000
Property Page 117 of 132 Appendix I Capital Outturn 2018/19 2018/19 Budgets 2018/19 Outturn Monitoring Explanation / Action Budget Funded Unfunded Original After P11 Final Final Final Released Over- Over- Budget Slippage Forecast Spend Variance Slippage Advances Budgets spend spend Ref Scheme Description Funding Total Total Total Total Total Total Total Total Total Total £m £m £m £m £m £m £m £m £m £m PI24 Vale Crematorium & Chapel Upgrade/Refurbishment CR 0.000 0.232 0.232 0.413 0.182 0.000 0.000 0.000 0.000 0.182 PI25 Property Maintenance - Priority Programme CR 0.850 1.026 1.276 1.289 0.013 0.000 0.107 0.000 0.000 -0.094 PI26 Asbestos Management and Removal CR 0.170 0.248 0.130 0.159 0.029 0.000 0.029 0.000 0.000 0.000 PI28 Risk Management - Fire protection CR 0.000 0.030 0.030 0.030 0.000 0.000 0.000 0.000 0.000 0.000 PI29 Alterations to Town Hall to support TWTP CR 2.400 1.495 1.350 1.274 -0.077 -0.077 0.000 0.000 0.000 0.000 PI32 Depot - Major Refurbishment CR 0.400 0.329 0.329 0.297 -0.031 -0.031 0.000 0.000 0.000 0.000
PI34 Building Schools for the Future (BSF) Life Cycle costs 25 yrs CR 0.380 0.380 0.380 0.380 0.000 0.000 0.000 0.000 0.000 0.000 PI38 Community Centres - Maintenance and compliance CR 0.100 0.054 0.030 0.037 0.007 0.000 0.007 0.000 0.000 0.000 PI39 Parks Buildings - Maintenance & compliance CR 0.000 0.002 0.002 0.002 0.000 0.000 0.000 0.000 0.000 0.000 PI40 Active Luton new Head Quarters CR 0.299 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 PI41 Depot - Building Compliance & Dilapidations issues CR 0.000 0.056 0.056 0.055 -0.001 0.000 0.000 -0.001 0.000 0.000 Roof renewals to operational building following aerial survey PI43 reports CR 0.100 0.138 0.000 0.093 0.093 0.000 0.000 0.000 0.000 0.093 PI44 Investment Properties Project PB 0.000 13.036 13.036 10.006 -3.029 -3.029 0.000 0.000 0.000 0.000 PI45 Silver Street Car Park Culvert Repairs CR 0.863 0.859 0.022 0.027 0.005 0.000 0.005 0.000 0.000 0.000
PI46 New Multi Storey Car Park (MSCP) for Luton Town Centre CR 0.300 0.405 0.030 0.040 0.010 0.000 0.010 0.000 0.000 0.000 PI47 Lea Manor Recreation - Major Refurbishmt CR 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 PI52 Library Buildings - Refurbishment Programme CR 0.200 0.200 0.034 0.059 0.025 0.000 0.025 0.000 0.000 0.000 PI53 Town Hall Clock Tower Structural Repairs CR 0.150 0.150 0.150 0.000 -0.150 -0.150 0.000 0.000 0.000 0.000 PI54 Arndale House Fit Out & IT (3.5 floors) CR 1.300 1.240 1.240 1.154 -0.086 0.000 0.000 -0.086 0.000 0.000 TSLT (BWA/BSA) post construction outstanding work PI55 completion CR 0.250 0.250 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Property Sub Total 7.761 20.127 18.325 15.315 -3.009 -3.287 0.183 -0.087 0.000 0.182
Transport PI22 Transport Replacement Programme CR 1.154 1.910 1.200 0.342 -0.858 -0.858 0.000 0.000 0.000 0.000 Transport Sub Total 1.154 1.910 1.200 0.342 -0.858 -0.858 0.000 0.000 0.000 0.000
Waste PI19 Recycling Centre & Bins CR/CG 0.185 0.196 0.178 0.268 0.090 0.000 0.090 0.000 0.000 0.000
PI20 WCSS Implementation (Weekly Collection Support Scheme) CG 0.828 1.423 0.100 0.090 -0.010 -0.010 0.000 0.000 0.000 0.000 PI21 In Cab Technology CG 0.000 0.052 0.020 0.000 -0.020 -0.020 0.000 0.000 0.000 0.000 PI67 Replacement Litter Bins CR 0.000 0.000 0.018 0.000 -0.018 -0.018 0.000 0.000 0.000 0.000 PI71 Bins CR/CG 0.025 0.040 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Waste Sub Total 1.038 1.710 0.316 0.358 0.043 -0.047 0.090 0.000 0.000 0.000
Place & Infrastructure Total 21.451 33.993 30.015 24.190 -5.825 -6.493 0.383 -0.143 0.246 0.183
People Department Schools
Page 118 of 132 Appendix I Capital Outturn 2018/19 2018/19 Budgets 2018/19 Outturn Monitoring Explanation / Action Budget Funded Unfunded Original After P11 Final Final Final Released Over- Over- Budget Slippage Forecast Spend Variance Slippage Advances Budgets spend spend Ref Scheme Description Funding Total Total Total Total Total Total Total Total Total Total £m £m £m £m £m £m £m £m £m £m School Expansions Basic Need 2018/19 to 2022/23 (incl. P1 S106) CG 5.000 5.998 3.853 4.324 0.471 0.000 0.341 0.000 0.130 0.000 P4 Devolved Formula Capital Grant 2018/19/ to 2022/23 CG 0.518 0.909 0.920 1.103 0.183 -0.104 0.000 0.000 0.287 0.000 P6 School Conditional Funding (LA Capital Maintenance) CG 2.711 3.284 2.567 2.817 0.249 0.000 0.244 0.000 0.006 0.000 P8 BSF Phase 1 Barnfield South - Construction CR 0.000 0.028 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 P10 Development of Putteridge Playing Fields CR 0.000 0.014 0.009 0.009 0.000 0.000 0.000 0.000 0.000 0.000 P11 Demolition of Challney Girls School PB 0.000 0.003 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 P23 Resourced Provision at Woodlands CG 0.000 0.000 0.033 0.033 0.000 0.000 0.000 0.000 0.000 0.000 Schools Sub Total 8.229 10.236 7.383 8.286 0.903 -0.104 0.585 0.000 0.422 0.000
Children P12 2 Year Old Entitlement CG 0.000 0.015 0.010 0.008 -0.002 -0.002 0.000 0.000 0.000 0.000 P14 Manor Family Centre Refurbishment Phase 2 CR 0.015 0.029 0.013 0.011 -0.002 0.000 0.000 -0.002 0.000 0.000 P15 Liquid Logic Child Sexual Exploitation Module CR 0.000 0.073 0.073 0.000 -0.073 -0.073 0.000 0.000 0.000 0.000 P16 Child Protection Information Sharing (CPIS) CR 0.000 0.107 0.025 0.000 -0.025 -0.025 0.000 0.000 0.000 0.000 P17 Profile System Replacement CR 0.000 0.050 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 P18 Multi Agency Safeguarding Hub CR 0.000 0.002 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 P21 Transforming Care-Housing (4 Properties) PB 0.000 0.039 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Children Sub Total 0.015 0.314 0.121 0.019 -0.102 -0.101 0.000 -0.002 0.000 0.000
Adults P20 Modernisation of Day Services & Respite CR 0.000 0.350 0.019 0.019 0.000 0.000 0.000 0.000 0.000 0.000 Adults Sub Total 0.000 0.350 0.019 0.019 0.000 0.000 0.000 0.000 0.000 0.000
People Total 8.244 10.900 7.523 8.324 0.801 -0.204 0.585 -0.002 0.422 0.000
Chief Executive's Department Replacement/Status Quo CE1 Application Software CR 0.000 0.010 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 CE2 Desktop Refresh Programme CR 0.028 0.056 0.056 0.035 -0.021 -0.014 0.000 0.000 0.000 -0.007 CE3 Network Hardware Replacement CR 0.000 0.009 0.001 0.000 -0.001 -0.001 0.000 0.000 0.000 0.000 CE4 Mobile telephony estate refresh CR 0.070 0.070 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 CE5 Mobile and tablet refresh CR 0.030 0.062 0.062 0.083 0.022 0.000 0.022 0.000 0.000 0.000 CE6 Hot Swap Stock CR 0.000 0.025 0.025 0.002 -0.024 -0.024 0.000 0.000 0.000 0.000 CE7 Improved Workspaces CR 0.015 0.025 0.016 0.015 0.000 0.000 0.000 0.000 0.000 0.000 CE8 Laptop/Hybrid refresh CR 0.167 0.300 0.300 0.307 0.007 0.000 0.000 0.000 0.000 0.007 CE9 Website - refreshing and replacing core digital platform CR 0.135 0.170 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 CE10 ICON PCI update refresh CR 0.030 0.055 0.042 0.007 -0.035 0.000 0.006 -0.041 0.000 0.000 CE11 Data Centre Refresh CR 0.040 0.101 0.029 0.001 -0.028 -0.028 0.000 0.000 0.000 0.000 CE12 Corporate Wifi CR 0.016 0.021 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 CE13 Sharepoint replacement CR 0.000 0.030 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 CE15 Addition of a further internet Connection CR 0.000 0.010 0.000 0.000 0.000 0.000 0.010 -0.010 0.000 0.000 CE21 Intranet replacement CR 0.070 0.170 0.046 0.045 0.000 0.000 0.000 0.000 0.000 0.000 Replacement/Status Quo Total 0.600 1.114 0.576 0.496 -0.080 -0.067 0.038 -0.051 0.000 0.000 Page 119 of 132 Appendix I Capital Outturn 2018/19 2018/19 Budgets 2018/19 Outturn Monitoring Explanation / Action Budget Funded Unfunded Original After P11 Final Final Final Released Over- Over- Budget Slippage Forecast Spend Variance Slippage Advances Budgets spend spend Ref Scheme Description Funding Total Total Total Total Total Total Total Total Total Total £m £m £m £m £m £m £m £m £m £m
Transformation CE16 Digital Inclusion CR 0.059 0.043 0.010 0.007 -0.002 -0.002 0.000 0.000 0.000 0.000 CE18 Transition PS for Data Centre Refresh CR 0.355 1.134 0.828 0.828 0.000 0.000 0.000 0.000 0.000 0.000 CE19 W2 Improvement CR 0.030 0.030 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Implementing unified communications for new telephony CE23 system CR 0.000 0.064 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 CE24 Business Intelligence CR 0.100 0.256 0.051 0.043 -0.008 -0.008 0.000 0.000 0.000 0.000 CE32 Digital Strategy Implementation CR 0.000 0.000 0.185 0.176 -0.009 -0.009 0.000 0.000 0.000 0.000 Transformation Sub Total 0.544 1.527 1.074 1.055 -0.019 -0.019 0.000 0.000 0.000 0.000
Chief Executive's Total 0 1.145 2.641 1.650 1.551 -0.099 -0.086 0.038 -0.051 0.000 0.000
Customer & Commercial Department Housing General Fund Grants for the improvement and adaptation to private CC1 housing CG/CR 1.895 2.172 2.333 1.894 -0.439 0.000 0.000 -0.439 0.000 0.000 CC2 Modernisation of Mobile Home Park and Travellers Site RC/CR 0.222 0.294 0.353 0.186 -0.166 -0.166 0.000 0.000 0.000 0.000 CC3 Mobile Homes and Caravan Sites RC 0.000 0.005 0.005 0.000 -0.005 -0.005 0.000 0.000 0.000 0.000 CC4 Renovation of Highways Agency Properties (GF) CR 0.462 0.512 0.000 0.002 0.002 0.000 0.000 0.000 0.002 0.000 CC6 Empty Homes CR 0.000 0.400 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 CC7 Wigmore Hall Conversion (into Housing Scheme) PB 0.000 0.450 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 CC8 Wardown Park Museum Redevelopment CG/CR 0.000 0.000 0.000 -0.251 -0.251 0.000 0.000 -0.251 0.000 0.000 CC9 New Storage Building for BTS CR 0.000 0.200 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
CC11 Temporary Accommodation Purchasing Scheme (TAPS) CR 11.500 14.364 14.364 13.372 -0.992 -0.958 0.000 0.000 0.000 -0.034 CC12 Right To Buy receipts Grant to Housing Associations RTB 1.500 1.500 1.794 1.556 -0.237 -0.237 0.000 0.000 0.000 0.000 Freehold Purchase of 51 Flats for Nightly Lets CC13 Accommodation CR 0.000 0.000 9.113 9.147 0.034 0.000 0.000 0.000 0.000 0.034 Customer & Commercial Total 15.579 19.897 27.962 25.906 -2.056 -1.367 0.000 -0.690 0.002 0.000
Corporate Projects CORP1 LLAL Debentures - DART PB 187.000 208.000 79.300 79.300 0.000 0.000 0.000 0.000 0.000 0.000 CORP3 LLAL Debentures - DCO PB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 CORP4 LLAL Debentures - CPAR PB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 CORP5 LLAL Debentures - Bartlett Square PB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 CORP2 Foxhall Homes - Share Capital PB 24.300 30.174 0.800 0.800 0.000 0.000 0.000 0.000 0.000 0.000 CORP6 Foxhall Homes - Loans PB 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 CORP7 LEP Share Acquisition RCCO 0.000 0.000 0.050 0.041 -0.009 0.000 0.000 -0.009 0.000 0.000 Corporate Projects Total 211.300 238.174 80.150 80.141 -0.009 0.000 0.000 -0.009 0.000 0.000
General Fund Total 257.719 305.605 147.300 140.113 -7.187 -8.150 1.006 -0.896 0.670 0.183
Housing Revenue Account Page 120 of 132 Appendix I Capital Outturn 2018/19 2018/19 Budgets 2018/19 Outturn Monitoring Explanation / Action Budget Funded Unfunded Original After P11 Final Final Final Released Over- Over- Budget Slippage Forecast Spend Variance Slippage Advances Budgets spend spend Ref Scheme Description Funding Total Total Total Total Total Total Total Total Total Total £m £m £m £m £m £m £m £m £m £m HRA1 Purchase of Ex RTB properties HRA 0.500 0.500 0.360 0.000 -0.360 -0.360 0.000 0.000 0.000 0.000 HRA2 Marsh Farm Central Area Redevelopment HRA 7.557 7.214 9.099 8.948 -0.151 -0.151 0.000 0.000 0.000 0.000 HRA3 Major Works (BTS Capital) HRA 12.532 12.532 12.249 10.751 -1.498 -1.498 0.000 0.000 0.000 0.000 HRA4 Highways Agency Properties HRA 0.292 0.292 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 HRA5 Refurbishment of Cornish Units HRA 0.093 0.093 0.093 0.000 -0.093 -0.093 0.000 0.000 0.000 0.000 HRA6 Hightown Area Refurbishment HRA 0.000 0.000 0.250 0.209 -0.041 -0.041 0.000 0.000 0.000 0.000 HRA7 Acquisition of Homes (Highways Agency Bungalows) HRA 0.153 0.153 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 HRA8 Additional New Affordable Homes HRA 1.805 1.805 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 HRA9 HRA Garage and Infill HRA 0.000 0.000 2.670 2.354 -0.316 -0.316 0.000 0.000 0.000 0.000 HRA10 Buckle Close HRA 0.000 0.000 0.318 0.386 0.068 0.000 0.068 0.000 0.000 0.000 HRA11 Freemans Green Land Adj Sherd Lodge HRA 0.000 0.000 0.261 0.126 -0.135 -0.135 0.000 0.000 0.000 0.000 Housing Revenue Account Total 22.932 22.589 25.301 22.773 -2.527 -2.595 0.068 0.000 0.000 0.000
Council Total 280.651 328.194 172.600 162.886 -9.714 -10.745 1.073 -0.896 0.670 0.183
Page 121 of 132
Page 122 of 132 Appendix J Revised Capital Programme 2019/20 - 2023/24 Gross Gross Gross Gross Gross Gross Budget Budget Budget Budget Budget Budget Project Ref Scheme Description Funding 2019/20 2020/21 2021/22 2022/23 2023/24 Total £000 £000 £000 £000 £000 £000 Place & Infrastructure Department Energy PI42 Energy Performance Contract Phase 1 & Phase 2 CR 43.0 0.0 0.0 0.0 0.0 43.0 Energy Sub Total 43.0 0.0 0.0 0.0 0.0 43.0 Highways Integrated Transport PI1 LTP Package for Integrated Transport CG 1,464.9 1,457.0 1,457.0 1,457.0 1,457.0 7,292.9 PI57 Digitalisation of existing safety camera stock CR 440.0 300.0 0.0 0.0 0.0 740.0 Widen Carriageway New Bedford Rd - Telford Way to PI60 Bomwell Hill CR 0.0 0.0 0.0 0.0 0.0 0.0 PI61 Red Routes CR 70.2 0.0 0.0 0.0 0.0 70.2 PI63 Speed restraint measures CR 389.5 300.0 300.0 300.0 0.0 1,289.5 PI94 Dunstable Road, Bury Park CR 400.0 0.0 0.0 0.0 0.0 400.0 Integrated Transport Sub Total 2,764.6 2,057.0 1,757.0 1,757.0 1,457.0 9,792.6 Roads Maintenance PI2 LTP Highway Maintenance CG 1,320.8 1,330.0 1,101.0 1,101.0 1,101.0 5,953.8 PI4 Resurfacing CR 1,306.6 1,400.0 1,400.0 1,400.0 1,400.0 6,906.6 PI14 Burr Street Square Public Realm Enhancements CR 105.0 105.0 0.0 0.0 0.0 210.0 PI15 Midland Road Square Public Realm Enhancement CR 32.5 0.0 0.0 0.0 0.0 32.5 Roads Maintenance Sub Total 2,764.9 2,835.0 2,501.0 2,501.0 2,501.0 13,102.9 Parking Enforcement PI62 Enforcement of Red Routes using CCTV CR 62.9 0.0 0.0 0.0 0.0 62.9 PI23 Deploy CCTV Cameras for enforcement around schools CR 3.8 0.0 0.0 0.0 0.0 3.8 Parking Enforcement Sub Total 66.7 0.0 0.0 0.0 0.0 66.7 Other PI3 Replacement Highway Lighting 18/19 CR 1,000.0 1,000.0 356.0 326.0 328.0 3,010.0 PI8 Chobham Walk Parking Scheme CR 0.0 0.0 0.0 0.0 0.0 0.0 PI9 East Luton Corridor (South) CR 26.6 0.0 0.0 0.0 0.0 26.6 PI10 Luton Dunstable Busway - Works CG/CR/CG 2,000.0 1,500.0 1,271.3 0.0 0.0 4,771.3 PI11 Luton Town Centre Transport Scheme CG/CR 1,272.3 0.0 0.0 0.0 0.0 1,272.3 PI12 M1 Junction 10a - Construction CG/CR 510.1 0.0 0.0 0.0 0.0 510.1 PI13 Parkway Station Northern Entrance CR 58.1 0.0 0.0 0.0 0.0 58.1 PI16 Luton Station Gateway CG 128.8 0.0 0.0 0.0 0.0 128.8 PI51 LLA Highway Access (Junctions of ELC) CG 2,077.5 1,022.0 0.0 0.0 0.0 3,099.5 PI79 Street Lighting LED Lantern Conversion CR 4,500.0 0.0 0.0 0.0 0.0 4,500.0 Other Sub Total 11,573.4 3,522.0 1,627.3 326.0 328.0 17,376.7 Highways Sub Total 17,169.6 8,414.0 5,885.3 4,584.0 4,286.0 40,338.9
Parks PI18 Stockwood Park Veteran Tree Measures CG/CR/CG 56.5 0.0 0.0 0.0 0.0 56.5 PI64 Town centre Tree management programme CR 98.0 80.0 80.0 80.0 0.0 338.0 PI70 Wardown Park & Peoples Park play area safety surface CR 0.0 0.0 0.0 0.0 0.0 0.0 PI86 New Childrens Play Area Leagrave Park CR 75.0 0.0 0.0 0.0 0.0 75.0 PI88 New Vale Cemetery Boundary Fence CR 180.0 0.0 0.0 0.0 0.0 180.0 PI101 Wardown Park Bandstand CG 134.1 0.0 0.0 0.0 0.0 134.1 Parks Sub Total 543.6 80.0 80.0 80.0 0.0 783.6
Property PI24 Vale Crematorium & Chapel Upgrade/Refurbishment CR 0.0 0.0 0.0 0.0 0.0 0.0 PI25 Property Maintenance - Priority Programme CR 1,443.1 1,500.0 1,500.0 1,500.0 1,500.0 7,443.1 PI26 Asbestos Management and Removal CR 291.3 170.0 170.0 137.9 0.0 769.2 PI27 Health & Safety Measures CR 0.0 0.0 0.0 0.0 0.0 0.0 PI28 Risk Management - Fire protection CR 0.0 0.0 0.0 0.0 0.0 0.0 PI29 Alterations to Town Hall to support TWTP CR 376.5 2,831.3 1,831.0 125.0 0.0 5,163.8 PI32 Depot - Major Refurbishment CR 431.4 400.0 400.0 0.0 0.0 1,231.4
PI34 Building Schools for the Future (BSF) Life Cycle costs 25 yrs CR 380.0 380.0 380.0 380.0 380.0 1,900.0 PI36 Lewsey Learning Centre - Maintenance and Compliance CR 460.0 0.0 0.0 0.0 0.0 460.0 PI38 Community Centres - Maintenance and compliance CR 116.3 100.0 60.0 0.0 0.0 276.3 PI39 Parks Buildings - Maintenance & compliance CR 0.0 0.0 0.0 0.0 0.0 0.0 PI41 Depot - Building Compliance & Dilapidations issues CR 0.0 0.0 0.0 0.0 0.0 0.0 Roof renewals to operational building following aerial survey PI43 reports CR 0.0 0.0 0.0 0.0 0.0 0.0 PI44 Investment Properties Project PB 3,029.3 0.0 0.0 0.0 0.0 3,029.3 PI45 Silver Street Car Park Culvert Repairs CR 831.3 0.0 0.0 0.0 0.0 831.3
PI46 New Multi Storey Car Park (MSCP) for Luton Town Centre CR 5,787.7 420.0 0.0 0.0 0.0 6,207.7 PI47 Lea Manor Recreation - Major Refurbishmt CR 0.0 0.0 0.0 0.0 0.0 0.0 PI52 Library Buildings - Refurbishment Programme CR 291.5 350.0 277.0 23.0 0.0 941.5 PI53 Town Hall Clock Tower Structural Repairs CR 150.0 0.0 0.0 0.0 0.0 150.0 PI54 Arndale House Fit Out & IT (3.5 floors) CR 0.0 0.0 0.0 0.0 0.0 0.0 TSLT (BWA/BSA) post construction outstanding work PI55 completion CR 250.0 0.0 0.0 0.0 0.0 250.0 PI72 Clemitson House Refurbishment to Floors 1 & 2 CR 500.0 0.0 0.0 0.0 0.0 500.0 PI73 Depot Waste Transfer Station - Fire Safety Works CR 1,200.0 0.0 0.0 0.0 0.0 1,200.0 PI74 Energy Performance Contract - Phase 3 CR 500.0 0.0 0.0 0.0 0.0 500.0 Town Hall Extension - External Fabric Renewal & PI80 Replacement Windows CR 600.0 0.0 0.0 0.0 0.0 600.0 PI83 Stockwood Park Academy Water Compliance CR 50.0 0.0 0.0 0.0 0.0 50.0 Page 123 of 132 Appendix J Revised Capital Programme 2019/20 - 2023/24 Gross Gross Gross Gross Gross Gross Budget Budget Budget Budget Budget Budget Project Ref Scheme Description Funding 2019/20 2020/21 2021/22 2022/23 2023/24 Total £000 £000 £000 £000 £000 £000 PI84 Stockwood Pak & Chalk Hills Academy Fire Prevention CR 250.0 0.0 0.0 0.0 0.0 250.0 PI91 Apex House Refurbishment to Floor 3 CR 400.0 0.0 0.0 0.0 0.0 400.0 Property Sub Total 17,338.4 6,151.3 4,618.0 2,165.9 1,880.0 32,153.6
Transport PI22 Transport Replacement Programme CR 2,308.3 650.7 2,180.5 1,946.9 3,700.3 10,786.7 Transport Sub Total 2,308.3 650.7 2,180.5 1,946.9 3,700.3 10,786.7
Waste PI19 Recycling Centre & Bins CR/CG 77.7 167.5 167.5 167.5 185.0 765.2
PI20 WCSS Implementation (Weekly Collection Support Scheme) CG 239.7 210.0 0.0 0.0 0.0 449.7 PI21 In Cab Technology CG 40.0 0.0 0.0 0.0 0.0 40.0 PI67 Replacement Litter Bins CR 35.0 17.5 17.5 17.5 0.0 87.5 PI71 Bins CR/CG 0.0 0.0 0.0 0.0 0.0 0.0 Waste Sub Total 392.4 395.0 185.0 185.0 185.0 1,342.4
Place & Infrastructure Total 37,795.3 15,691.0 12,948.8 8,961.8 10,051.3 85,448.2
People Department Schools School Expansions Basic Need 2018/19 to 2022/23 (incl. P1 S106) CG 5,658.9 10,000.0 10,000.0 10,000.0 3,231.4 38,890.3 P4 Devolved Formula Capital Grant 2018/19/ to 2022/23 CG 604.0 500.0 500.0 500.0 494.0 2,598.0 P6 School Conditional Funding (LA Capital Maintenance) CG 2,841.9 2,565.0 2,565.0 2,565.0 2,565.0 13,101.9 P8 BSF Phase 1 Barnfield South - Construction CR 28.1 0.0 0.0 0.0 0.0 28.1 P10 Development of Putteridge Playing Fields CR 5.2 0.0 0.0 0.0 0.0 5.2 P23 Resourced Provision at Woodlands CG 0.0 304.7 0.0 0.0 0.0 304.7 P26 Special Units and Resourced Provision SEND CG 450.0 450.0 0.0 0.0 0.0 900.0 Schools Sub Total 9,588.0 13,819.7 13,065.0 13,065.0 6,290.4 55,828.1
Children P12 2 Year Old Entitlement CG 7.2 0.0 0.0 0.0 0.0 7.2 P14 Manor Family Centre Refurbishment Phase 2 CR 0.0 0.0 0.0 0.0 0.0 0.0 P15 Liquid Logic Child Sexual Exploitation Module CR 73.3 0.0 0.0 0.0 0.0 73.3 P16 Child Protection Information Sharing (CPIS) CR 25.0 0.0 0.0 0.0 0.0 25.0 P17 Profile System Replacement CR 49.7 0.0 0.0 0.0 0.0 49.7 P18 Multi Agency Safeguarding Hub CR 0.0 0.0 0.0 0.0 0.0 0.0 P22 Healthy Pupil Capital Grant CG 245.5 0.0 0.0 0.0 0.0 245.5 Children Sub Total 400.7 0.0 0.0 0.0 0.0 400.7
Adults P20 Modernisation of Day Services & Respite CR 0.0 100.0 0.0 0.0 0.0 100.0 Adults Sub Total 0.0 100.0 0.0 0.0 0.0 100.0
People Total 9,988.7 13,919.7 13,065.0 13,065.0 6,290.4 56,328.8
Chief Executive's Department Replacement/Status Quo CE1 Application Software CR 10.0 0.0 0.0 0.0 0.0 10.0 CE2 Desktop Refresh Programme CR 193.0 0.0 0.0 0.0 0.0 193.0 CE3 Network Hardware Replacement CR 9.3 0.0 0.0 0.0 0.0 9.3 CE4 Mobile telephony estate refresh CR 70.0 0.0 0.0 0.0 0.0 70.0 CE5 Mobile and tablet refresh CR 146.3 0.0 0.0 0.0 0.0 146.3 CE6 Hot Swap Stock CR 23.5 0.0 0.0 0.0 0.0 23.5 CE7 Improved Workspaces CR 9.6 0.0 0.0 0.0 0.0 9.6 CE8 Laptop/Hybrid refresh CR 0.0 0.0 0.0 0.0 0.0 0.0 CE9 Website - refreshing and replacing core digital platform CR 170.0 35.0 0.0 0.0 0.0 205.0 CE10 ICON PCI update refresh CR 6.6 0.0 0.0 0.0 0.0 6.6 CE11 Data Centre Refresh CR 371.1 26.8 0.0 0.0 0.0 397.9 CE12 Corporate Wifi CR 20.5 0.0 0.0 0.0 0.0 20.5 CE13 Sharepoint replacement CR 30.0 0.0 0.0 0.0 0.0 30.0 CE15 Addition of a further internet Connection CR 0.0 0.0 0.0 0.0 0.0 0.0 CE21 Intranet replacement CR 159.6 0.0 0.0 0.0 0.0 159.6 Replacement/Status Quo Total 1,219.5 61.8 0.0 0.0 0.0 1,281.3
Transformation CE16 Digital Inclusion CR 35.7 0.0 0.0 0.0 0.0 35.7 CE18 Transition PS for Data Centre Refresh CR 306.4 0.0 0.0 0.0 0.0 306.4 CE19 W2 Improvement CR 45.0 0.0 0.0 0.0 0.0 45.0 Implementing unified communications for new telephony CE23 system CR 63.4 0.0 0.0 0.0 0.0 63.4 CE24 Business Intelligence CR 212.8 0.0 0.0 0.0 0.0 212.8 CE25 New ICT Software - Technology CR 90.0 0.0 0.0 0.0 0.0 90.0 CE26 New ICT Software - BI CR 133.4 0.0 0.0 0.0 0.0 133.4 CE32 Digital Strategy Implementation CR 257.5 0.0 0.0 0.0 0.0 257.5 Transformation Sub Total 1,144.2 0.0 0.0 0.0 0.0 1,144.2
Chief Executive's Total 0 2,363.7 61.8 0.0 0.0 0.0 2,425.5 Page 124 of 132 Appendix J Revised Capital Programme 2019/20 - 2023/24 Gross Gross Gross Gross Gross Gross Budget Budget Budget Budget Budget Budget Project Ref Scheme Description Funding 2019/20 2020/21 2021/22 2022/23 2023/24 Total £000 £000 £000 £000 £000 £000
Customer & Commercial Department Housing General Fund Grants for the improvement and adaptation to private CC1 housing CG/CR 1,895.0 1,895.0 1,895.0 1,895.0 1,895.0 9,475.0 CC2 Modernisation of Mobile Home Park and Travellers Site RC/CR 388.7 0.0 0.0 0.0 0.0 388.7 CC3 Mobile Homes and Caravan Sites RC 5.4 0.0 0.0 0.0 0.0 5.4 CC4 Renovation of Highways Agency Properties (GF) CR 0.0 0.0 0.0 0.0 0.0 0.0 CC6 Empty Homes CR 400.0 0.0 0.0 0.0 0.0 400.0 CC8 Wardown Park Museum Redevelopment CG/CR 0.0 0.0 0.0 0.0 0.0 0.0 CC9 New Storage Building for BTS CR 275.0 0.0 0.0 0.0 0.0 275.0
CC11 Temporary Accommodation Purchasing Scheme (TAPS) CR 957.7 0.0 0.0 0.0 0.0 957.7 CC12 Right To Buy receipts Grant to Housing Associations RTB 425.3 23.3 0.0 0.0 0.0 448.6 Freehold Purchase of 51 Flats for Nightly Lets CC13 Accommodation CR 0.0 0.0 0.0 0.0 0.0 0.0 CC14 BTS Whole Job Costing RCCO 70.0 0.0 0.0 0.0 0.0 70.0 Customer & Commercial Total 4,417.1 1,918.3 1,895.0 1,895.0 1,895.0 12,020.4
Corporate Projects CORP1 LLAL Debentures - DART PB 92,000.0 34,000.0 9,700.0 0.0 0.0 135,700.0 CORP3 LLAL Debentures - DCO PB 33,500.0 14,000.0 1,000.0 0.0 0.0 48,500.0 CORP4 LLAL Debentures - CPAR PB 9,300.0 0.0 8,000.0 0.0 0.0 17,300.0 CORP5 LLAL Debentures - Bartlett Square PB 9,500.0 13,750.0 3,250.0 0.0 0.0 26,500.0 CORP2 Foxhall Homes - Share Capital PB 1,200.0 1,000.0 0.0 0.0 0.0 2,200.0 CORP6 Foxhall Homes - Loans PB 18,000.0 9,174.2 0.0 0.0 0.0 27,174.2 CORP7 LEP Share Acquisition RCCO 0.0 0.0 0.0 0.0 0.0 0.0 Corporate Projects Total 163,500.0 71,924.2 21,950.0 0.0 0.0 257,374.2
General Fund Total 218,064.8 103,515.0 49,858.8 23,921.8 18,236.7 413,597.1
Housing Revenue Account HRA1 Purchase of Ex RTB properties HRA 360.0 0.0 240.0 400.0 500.0 1,500.0 HRA2 Marsh Farm Central Area Redevelopment HRA 6,937.2 391.0 0.0 0.0 0.0 7,328.2 HRA3 Major Works (BTS Capital) HRA 20,581.8 15,544.3 14,544.3 4,259.0 4,259.0 59,188.4 HRA4 Highways Agency Properties HRA 141.5 0.0 0.0 0.0 0.0 141.5 HRA5 Refurbishment of Cornish Units HRA 93.2 0.0 0.0 0.0 0.0 93.2 HRA6 Hightown Area Refurbishment HRA 140.7 0.0 0.0 0.0 0.0 140.7 HRA9 HRA Garage and Infill HRA 2,718.2 903.0 1,115.0 12,049.0 13,723.0 30,508.2 HRA10 Buckle Close HRA 3,037.5 2,527.0 2,112.0 0.0 0.0 7,676.5 HRA11 Freemans Green Land Adj Sherd Lodge HRA 397.3 3,508.0 3,291.0 0.0 0.0 7,196.3 Housing Revenue Account Total 34,407.4 22,873.3 21,302.3 16,708.0 18,482.0 113,773.0
Council Total 252,472.2 126,388.3 71,161.1 40,629.8 36,718.7 527,370.1
Page 125 of 132
Page 126 of 132 Report For: Executive Item No: Date: 24 June 2019 Report Of: Sue Frost Service Director Planning and Economic 10 Growth Report Author: Sue Frost
Subject: Delegated Powers Development Consent Order (DCO) for London Luton Airport Lead Executive Cllr Paul Castleman Member(s): Wards Affected: None directly affected Consultations: Councillors ☐ Scrutiny ☐ Stakeholders ☐ Others ☐
Recommendations 1. Executive is recommended to:
i) Authorise the Service Director Planning and Economic Growth to deal with all matters relating to the Development Consent Order process in relation to London Luton Airport and, in consultation with the Portfolio Holder for Place & Infrastructure (Planning and Transport) to submit responses on behalf of the Council to the Examining Authority.
ii) Authorise the Council to enter into a Planning Performance Agreement in relation to the Development Consent Order for London Luton Airport in such final form as considered appropriate by the Service Director Planning and Economic Growth.
Background 2. London Luton Airport Limited (LLAL) is proposing to expand the airport by adding new terminal capacity and associated infrastructure and an increase in passengers to 32million per year. It is the type of development that due to its scale meets the thresholds to be a Nationally Significant Infrastructure Project (NSIP) for the purposes of the Planning Act 2008. As such LLAL will be applying directly to the Secretary of State (SoS) for Transport for a Development Consent Order (DCO) to authorise the proposed development. This means that the application will not go through the Local Planning Authority for determination rather the LPA will be an important statutory consultee in the process.
3. The DCO process is very prescriptive and requires responses to be submitted within prescribed timeframes. Various documents (works packages) will be produced and consulted on with specific responsibilities placed on the host Local Authorities (those immediately affected and adjacent to the application). There is a formal statutory consultation process which is then followed by an examination held by an independent Inspector appointed by the SoS. The process is similar to a Local Plan examination. The Inspector will consider all responses and will set deadlines through the process. Post decision further work is also required.
Page 127 of 132
The Current Position
4. LLAL held a non statutory consultation in 2018 and is currently working up its full application for statutory consultation in the autumn of 2019. A working group of the host authorities has been established by the applicant’s consultancy team together with a range of technical groups with specialists attending from each of the host local authorities. Regular meetings are taking place which the Service Director for Planning and Economic Growth attends. Work has been ongoing particularly in relation to the scoping opinion (which was published for consultation) and on other technical areas such as landscape, biodiversity, flooding etc where feedback has been given. The responses need to be made on time and in addition, need to be coordinated and made jointly (wherever possible) on behalf of all LPA’s, which is different from previous DCO projects dealt with. Given that the requirements are now starting to build up, LLAL has also requested that Central Bedfordshire Council, Hertfordshire County Council, Luton Borough Council and North Hertfordshire District Council (together, the Joint Councils) enter into a Planning Performance Agreement (PPA) in relation to the Application. In the draft PPA circulated by LLAL's legal advisers, it is acknowledged that the Joint Councils will undertake specific functions in relation to the Application and that LLAL has agreed to provide reasonable reimbursement to the Joint Councils for undertaking these. The draft PPA is currently being considered by a legal advisor on behalf of the Joint Councils.
5. An advice note issued by the Planning Inspectorate in relation to the Act advocates the use of PPAs in relation to NSIPs due, in particular, to the significant pre-application duties placed on developers, much of which involves local authorities, and secondly, due to the lack of any funding for local authorities in relation to NSIPs under the Act from developers or central Government1. This is for co-operative working in order to facilitate the efficient and effective engagement, planning, examination and determination of DCO applications and also subsequent implementation, monitoring and management and they allow for funding to be passed to local authorities on a cost-recovery basis for pre-application, examination and other work.
6. Authority is sought for the Service Director for Planning and Economic Growth to submit responses to the DCO on behalf of the Council. This is required as the turnaround times and deadlines are such that the responses could not be brought before Executive for approval within the timescales required. Authority is also required to enable the Council to enter the PPA for the reasons given. Given that work is already ongoing and resources are stretched it is necessary to have delegated authority so the Council can continue to respond as and when necessary and the PPA is entered into as soon as it is agreed so that resources can be brought in to support the process. PINS will of course still be making the final decision based on all the responses and evidence they hear at the examination.
Goals and Objectives 7. To ensure that the Council complies with the responsibilities placed on it as a host authority for the DCO and to ensure the process is robust and takes account of issues and concerns raised by the LPA. Approval is sought now as the timetable for the DCO requires the PPA
1 The role of local authorities in the development consent process, The Planning Inspectorate, February 2015.
Page 128 of 132 to be agreed asap in order for the work to be progressed by the joint Council’s. The other Local Authorities have delegations in place.
Proposal 8. To give delegated authority to the Service Director for Planning and Economic Growth to enter the PPA, deal with the DCO process and, in consultation with the Portfolio Holder for Planning and Transport, to agree and submit responses on behalf of the Council to the Examining Authority.
Key Risks 9. Missing deadlines or not responding in a coordinated and or joint (wherever possible) manner on behalf of all LPA’s means the Council’s duties may not be fulfilled or representations taken full account of. Not having a PPA will jeopardise the Council’s ability to support the DCO process.
Consultations 10. Not required
Alternative options considered and rejected (please specify) 11. Report to Executive on each response, not feasible given the amount of work and timescales involved.
Appendices Attached 12. None
Background Papers 13. There are no background papers to the report.
Page 129 of 132 IMPLICATIONS
For Executive Reports: All grey boxes must be completed All statements must be cleared by an appropriate officer
For CLMT Reports: Only the dark grey boxes must be completed Clearance is not required
Legal Clearance Agreed By Dated The DCO process follows a timetable which the Steven Sparshott, Solicitor 6/6/19 Council must achieve or risk its position not being properly accounted for. The PPA will help it meet those deadlines and resource the work required in order to do so.
Finance Clearance Agreed By Dated The costs of LBC’s response to the DCO will be met Darren Lambert, Finance 7th June by LLAL as part of the Planning Performance Business Partner 2019 Agreement.
Integrated Impact Assessment (IIA) – Key Points
Equalities / Cohesion / Inclusion (Social Justice) Clearance Agreed By Dated There are currently no social justice issues for this Sandra Hayes, Service 11th June report Manager 2019
Environment Clearance Agreed By Dated The participation in the DCO process will allow Keith Dove, Strategic 6th June LBC’s comments on environmental matters to be Policy Adviser 2019 part of the process Health Clearance Agreed By Dated The participation in the DCO process will allow LBC Stephen Gunther, Service 6th June to comment on health impacts of the DCO. Director Public Health 2019
Executive Leader YES
Portfolio Holder YES
Community Safety Clearance Agreed By Dated
Page 130 of 132 Staffing Clearance Agreed By Dated
Other Clearance Agreed By Dated
Chief Executive YES/NO
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