SOUTH LAKELAND DISTRICT COUNCIL South Lakeland House, Kendal, Cumbria LA9 4UQ www.southlakeland.gov.uk

You are requested to attend a meeting of the Council on Thursday, 12 August 2010, at 6.30 p.m. in the Council Chamber, South Lakeland House, Kendal Note – A briefing session on the Lake District Partnership Plan which will be held at 5.15 p.m. until 5.45 p.m. in the District Council Chamber For those who wish to attend, Prayers will be said in the District Council Chamber at 6.20 p.m. Membership

Councillors

Caroline Airey James Airey Kath Atkinson Rosie Ballantyne-Smith Alan Baverstock Roger Bingham Norman Bishop-Rowe Rob Boden Jonathan Brook Stephen Coleman Stan Collins Brian Cooper Jackie Cooper Joss Curwen Colin Davies Julie Dawson Philip Dixon Sheila Eccles Sylvia Emmott (Chairman) David Evans Clare Feeney-Johnson Clive Graham Brenda Gray Anne Hall Tom Harvey Frank Hodson Colin Hodgson Brendan Jameson Janette Jenkinson Pru Jupe Kevin Lancaster Sonia Lawson Ian McPherson Maureen Nicholson Vivienne Rees Jamie Samson Andy Shine Hilary Stephenson Jo Stephenson (Vice-Chairman) Ian Stewart Peter Thornton David Vatcher Graham Vincent Ted Walsh Bill Wearing Brian Wilkinson David Williams Mark Wilson Mary Wilson Brenda Woof Peter Woof

4 August 2010

Debbie Storr, Corporate Director (Monitoring Officer)

For all enquiries, please contact:- Committee Administrator: Chris Woods, Democratic Services Manager Telephone: 01539 733333 Ext.7440 e-mail: [email protected]

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2 AGENDA Apologies : Roll Call Page Nos. PART I 1. MINUTES 5 - 14 To authorise the Chairman to sign, as a correct record, the minutes of the meeting of the Council held on 29 June 2010 (copy attached). 2. PUBLIC PARTICIPATION Any member of the public who wishes to ask a question, make representations or present a deputation or petition at this meeting should apply to do so before the commencement of the meeting. Information on how to make the application can be obtained by viewing the Council’s Website www.southlakeland.gov.uk or by contacting the Democratic Services Manager on 01539 717440. (1) Questions To receive any questions which have been received from members of the public. (2) Deputations and Petitions To receive any deputations or petitions which have been received from members of the public. 3. DECLARATIONS OF INTEREST To receive declarations by Members of personal and prejudicial interests in respect of items on this Agenda. If a Member requires advice on any item involving a possible declaration of interest which could affect his/her ability to speak and/or vote, he/she is advised to contact the Monitoring Officer at least 24 hours in advance of the meeting. 4. LOCAL GOVERNMENT ACT 1972 – EXCLUDED ITEMS To consider whether the items, if any, in Part II of the Agenda should be considered in the presence of the press and public. 5. CHAIRMAN’S ANNOUNCEMENTS To receive announcements by the Chairman. 6. 2009 -10 OVERVIEW AND SCRUTINY ANNUAL REPORT 15 - 28 To receive the 2009-2010 Overview and Scrutiny Annual Report. 7. REFERRALS FROM CABINET (1) 2009/10 Final Accounts Issues – Revenue 29 - 42 To approve the schedule of carry forwards and the transfers to and from Reserves as set out in the report. (2) 2009/10 Final Accounts Issues – Capital 43 - 56 To approve the schedule of carry forwards and approve the updated Capital Programme for 2010/11 onwards as detailed in the report. (3) Budget Strategy Report 2011/12 – 2015/16 57 - 66 To approve the recommendations of Cabinet.

3 8. TREASURY MANAGEMENT ANNUAL REPORT AND ACTUAL 67 - 80 PRUDENTIAL INDICATORS 2009/10 To approve the actual 2009/10 Prudential Indicators within the report and accept the Treasury Management stewardship report for 2009/10. 9. CORPORATE FINANCIAL MONITORING APRIL - JUNE 2010 81 - 94 To receive a report from the Corporate Finance Manager and Strategic Finance Manager. 10. CHOICE BASED LETTINGS: ALLOCATION POLICY (PD/10/001/H&D) 95 - 176 To approve the new allocation policy for the Cumbria Choice Based Lettings system and the local lettings policy which would apply to South Lakeland and adopt it as part of the Council’s Policy Framework. 11. LOCAL ENTERPRISE PARTNERSHIP 177 - 186 To inform full Council of the letter dated 29 June 2010 from HM Government regarding an invitation to work with Government and to consider the formation of a local enterprise partnership. 12. MINUTES OF MEETINGS To receive Chairmen’s comments (if any notified) in respect of the minutes of Committee meetings held between 26 April and 9 July 2010. If Members wish to raise questions with regard to any minutes of the Regulatory or Overview and Scrutiny Committee meetings held since the Agenda was issued for the last Council meeting, then notice should be provided in line with Rule 10 of the Council Procedural Rules (page 85 of the Constitution). 13. EXECUTIVE REPORTS, DECISIONS AND CABINET QUESTION TIME 187 - 214 To receive the Executive Report from the Leader and to deal with any questions to the Leader and/or Portfolio Holders on any topic which is within the jurisdiction or influence of the Council, and is relevant to their Portfolio. Any Member who poses a question will be entitled to one supplementary question on the same topic. Members are encouraged to give Portfolio Holders 24 hours’ notice of questions. If no notice is received, then the Portfolio Holder can reserve the right to give a written answer. Where notice of questions has been given, these will be taken first. Where a Member wishes to ask more than one question, please submit questions in order of priority. If more than one Member sends in a question, these will be taken in alphabetical order of Members’ names. The question time will be limited to 30 minutes. 14. QUESTIONS To deal with any questions under Paragraph 10 of the Council’s Rules of Procedure, of which due notice has been given and/or the Chairman allows as a matter of urgent business. PART II Private Section (exempt reasons under Schedule 12A of the Local Government Act 1972, as amended by the Local Government (Access to Information) (Variation) Order 2006, specified by way of paragraph number) There are no items in this part of the Agenda.

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SOUTH LAKELAND DISTRICT COUNCIL

Minutes of the proceedings at a meeting of the Council held in the District Council Chamber at South Lakeland House, Kendal, on Tuesday, 29 June 2010, at 6.30 p.m.

Present

Councillors

Sylvia Emmott (Chairman) Jo Stephenson (Vice-Chairman)

James Airey Kath Atkinson Rosie Ballantyne-Smith Alan Baverstock Roger Bingham Norman Bishop-Rowe Rob Boden Jonathan Brook Joss Curwen Colin Davies Julie Dawson Philip Dixon David Evans Clare Feeney-Johnson Clive Graham Brenda Gray Anne Hall Tom Harvey Colin Hodgson Brendan Jameson Janette Jenkinson Kevin Lancaster Sonia Lawson Ian McPherson Maureen Nicholson Vivienne Rees Andy Shine Hilary Stephenson Peter Thornton David Vatcher Graham Vincent Ted Walsh David Williams Mark Wilson Mary Wilson Brenda Woof Peter Woof

Apologies for absence were received from Councillors Caroline Airey, Stephen Coleman, Brian Cooper, Jackie Cooper, Sheila Eccles, Frank Hodson, Pru Jupe, Jamie Samson, Ian Stewart, Bill Wearing and Brian Wilkinson.

Officers

Inge Booth Democratic Services Officer Lawrence Conway Acting Chief Executive Helen Smith Strategic Finance Manager Debbie Storr Corporate Director (Monitoring Officer) David Sykes Assistant Director (Community Investment and Development)

Also in attendance at the meeting were Keith Finch from Tribal Consultants and John Sykes, Housing Stock Options Project Manager.

C/026 MINUTES

RESOLVED – That the Chairman be authorised to sign, as correct records, the minutes of the meetings of the Council held on 18 and 25 May 2010.

C/027 DECLARATIONS OF INTEREST

RESOLVED – That it be noted that no declarations of interest were made.

C/028 LOCAL GOVERNMENT ACT 1972 – EXCLUDED ITEMS

RESOLVED – That it be noted that there were no excluded items on the Agenda.

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C/029 CHAIRMAN’S ANNOUNCEMENTS

The Chairman reported receipt of correspondence from the former Chief Executive in acknowledgement of the letter she had sent to him on behalf of all Members of the Council. In his letter, the former Chief Executive had said that he had taken great pride in moving the Council forward, and had expressed sorrow in being unable to complete his plans. He felt that the citizens of South Lakeland were blessed with a Council, which included Members of all political parties, all of whom were determined to achieve positive results for the community.

The Chairman also referred to correspondence from the Mayor of Copeland Borough thanking her for her letter and kind words on behalf of South Lakeland District Council. Knowing that Copeland was in the thoughts and prayers of so many people was greatly appreciated.

The Chairman informed Members that she had, over the last ten days, attended three functions involving young people from within the District:-

• Kendal School of Gymnastics, Gymnastics Extravaganza; • Fantasia 4 Dance Platform, Lakes School, Windermere; and • Concert of the Westmorland Youth Orchestra with the Amabile Choir.

These events had displayed the wealth of talent of the young people of South Lakeland, and the Chairman congratulated all involved.

C/030 CHIEF EXECUTIVE ARRANGEMENTS

Further to C/025 (2010/11), the Council now needed to consider arrangements for the future management of the Authority.

A Member Panel had been set up which had, together with a representative from the IDeA, considered options available for the future undertaking of the role, including:-

• an internal/external recruitment process for a Chief Executive, either permanent or on a fixed term basis; and • shared management arrangements with another Local Authority or other public sector organisations.

The Panel had considered the factors detailed above and the outcomes sought for the Authority and its long-term sustainability. The agreed outcomes had been:-

• retaining autonomy for the South Lakeland District; • continuing to pursue the Shared Service Agenda and to be a leading authority on this; and • the need for a strong, ambitious Chief Executive, who was outward looking and promoting/advocating for South Lakeland. The Panel had considered that the plan for South Lakeland should be firstly the appointment of a new Chief Executive for South Lakeland, and secondly an understanding that this person would then lead the way in the process of where the Council would go and the shared service opportunities available as it sought to make South Lakeland sustainable for the future. The Panel’s recommendation was that the Council went out to immediate recruitment for a Chief Executive and Head of Paid Service.

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In moving the recommendations contained within the report, Councillor Brendan Jameson referred to the excellent work which had been carried out by the former Chief Executive and to the resultant change in the attitude and commitment of all 51 Members who were striving together to make South Lakeland the best place to live, work and visit. Councillor Jameson pointed out that this work was not yet complete and that a new Chief Executive was now required, with the ambition, vision, drive and focus to take the Council forward and make it even more successful. The proposal was seconded by Councillor Andy Shine. During the subsequent lengthy debate, although the need for a new Chief Executive was acknowledged, strong concerns were expressed in relation to the cost of the process and the appointment of recruitment consultants, and it was suggested that this could be carried out in-house through the Council’s own Human Resources Group. In response to a query, the Corporate Director (Monitoring Officer) advised that she did not envisage that the full amount proposed to be earmarked would be used. She informed Members of the part she expected consultants could have in the process, but that it would be for the Panel Members to agree the brief as part of this process. She stressed the importance of ensuring that the right candidate was selected in order to move the Council forward. An amendment was put forward by Councillor David Williams that recommendation (5) be substituted with, “An appropriate advertisement for the appointment of Chief Executive be placed forthwith on the Council’s Website and appropriate national press.” This was seconded by Councillor Kevin Lancaster. A request from the requisite number of Councillors for a recorded vote on the amendment was made in accordance with Part 4, Rule 16.5 of the Council’s Constitution. The resulting vote was as follows:- For Against Abstain James Airey Kathleen Atkinson Colin Davies Roger Bingham Rosie Ballantyne-Smith Ian McPherson Norman Bishop-Rowe Alan Baverstock Jo Stephenson Joss Curwen Rob Boden Anne Hall Jonathan Brook Tom Harvey Julie Dawson Colin Hodgson Phillip Dixon Janette Jenkinson Sylvia Emmott Kevin Lancaster David Evans Ted Walsh Clare Feeney-Johnson David Williams Clive Graham Mark Wilson Brenda Gray Brendan Jameson Sonia Lawson Maureen Nicholson Vivienne Rees Andy Shine Hilary Stephenson Peter Thornton David Vatcher Graham Vincent Mary Wilson Brenda Woof Peter Woof

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The amendment was lost.

The substantive motion was then put to the vote, and it was subsequently

RESOLVED – That

(1) the Council proceeds to advertise for the position of Chief Executive and Head of Paid Service;

(2) the Member Panel established on 25 May 2010 continues to oversee the recruitment and appointment process and to review the Job Description, Person Specification and remuneration level of the post, as detailed in the report, and to make recommendations to the Human Resources Committee with regard to final terms and conditions;

(3) the Member Panel be the formal interviewing Panel for the post;

(4) the Human Resources Committee be authorised to approve the final terms and conditions (including salary) for the post, having regard to the National Salary Framework for Local Authority Chief Executives and guidance on remuneration committees; and

(5) £50,000 of the balance of the carry forward from the Restructure, being requested as part of the Outturn Reports, be earmarked to fund the cost of the recruitment and selection process, and that delegated authority be given to the Corporate Director (Monitoring Officer) (in consultation with the Member Panel) for the appointment of executive recruitment consultants for this purpose.

Note – Attention was drawn to an Addendum Report in respect of the following two items of business, which had been circulated to all Members following despatch of the Agenda. The Addendum Report referred to the 22 June 2010 Budget when it had been announced that the VAT rate would be revised from 17.5% to 20% from January 2010. This change would have an impact on Option 3 – Housing Transfer. The Addendum Report advised of a change to page 35 of the Agenda and provided replacement wording for Paragraph 4.10.(v).

C/031 FUTURE OPTIONS FOR THE COUNCIL’S HOUSING STOCK (KD10/018/H&D)

Mrs Margaret Pritchard, Chairman of the Tenants’ Committee, addressed the Council. Mrs Pritchard informed Members that the Committee was pleased with the progress to date on the Housing Stock Options Study and praised the Council for its foresight in this matter. The Tenants’ Committee welcomed its part in the Study and the vital opportunity to work with an Independent Adviser and a Communications Board. Mrs Pritchard advised the Council that the Tenants’ Committee did not have a preferred option at this stage and that further information and time was required before a decision was made. She highlighted the importance of talking to tenants to find out what they would like to happen with their homes in the future and giving them the chance to put forward their opinions through the Tenants Committee. This could be achieved through the proposed consultation with all tenants, ensuring that discussions were tailored so that everyone could understand the options available. In closing, Mrs Pritchard expressed thanks on behalf of the Tenants’ Committee to Councillor Brenda Gray, the Council’s former Portfolio Holder for Housing and Development, for her efforts and commitment over the past few years.

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Councillor Peter Thornton introduced a report to enable Members to review progress and the outcome of the modelling of the various options for the future of the Council’s housing stock. This work was being carried out in order to secure the future financial viability of the housing stock. The overall aim of the project was to ensure that the Council was in a position, after consulting tenants and other stakeholders by October 2010, to decide on the most appropriate arrangements for the future modernisation of the housing stock and management and delivery of the housing service. Councillor Thornton moved the recommendations contained within the report and was seconded by Councillor Roger Bingham. The Assistant Director (Community Investment and Development) advised Members that they were being recommended at this meeting to approve commencement of a consultation process which would inform the project. A further report detailing the results of the consultation would be brought before Council in October 2010, when further developments arising out of the new Government’s proposed reform of the Housing Revenue Account (HRA) would be reported. The Strategic Finance Manager explained to Members the HRA finance system. Keith Finch of Tribal Consultants gave a presentation on the findings of the Stock Options Study, a copy of which is available on the Democratic Services File. The study had progressed well and in accordance with the project plan. Key elements included the following:- • A warrantable stock condition survey had been undertaken to provide statistically accurate forecasts for housing investment for the coming 30 years. • A Project Board had been established to oversee the delivery of the project. This Board included representatives from the Council, South Lakes Housing Board, the Tenants’ Committee, and staff members from both South Lakes Housing and the Council. • Essential working groups had been established to move the study forward. Constituted from stakeholders with relevant knowledge and experience, these include:- o Tenant and Leaseholder Steering Group; o Communication Group; and o Finance Working Group. • Specialist communication and public relations (PR) advisors had been appointed. • The Tenants’ Committee had interviewed and appointed an Independent Tenant Advisor. On 24 March 2010, the previous Government had issued the long-awaited consultation on the proposed reforms to the HRA. These proposed reforms had been modelled to identify if they provided a real opportunity to councils to provide the level of investment required in their housing stock. The proposed debt allocation to the Council under these proposals (using the 7% discount rate) was £68 million, compared to the current HRA debt of £13 million. The proposed debt equated to approximately £21,300 per tenancy. This was significantly higher than the national average debt allocation per tenancy (around £13,800). There was a separate report later on the Agenda dealing with the proposed HRA reforms, however, the report currently being considered addressed the stock option study and, as part of that study, whether the HRA reforms might deliver a viable option for the future of the housing stock.

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The Housing Option Study involved developing a number of business plan models and reviewing which model provided for sustainable investment over the coming three years.

The Council had a duty to maintain homes at the “decent homes” standard. The investment requirements of the stock were a key element in all business plan models. The Council had appointed Savills to undertake a statistically-accurate stock condition survey and projected future stock investment requirements for the coming 30 years, details of which were provided. The expenditure required equated to an average expenditure per property of £59,350 and an average annual investment of £6.27m.

Using this stock condition data, rent income projections and reasonable assumptions on management costs, three options had been modelled:-

• Option 1 – Base Case (The existing HRA) Model; • Option 2 – Self-financing HRA Proposals; and • Option 3 – Housing Transfer.

A summary of the outcome from the modelling was provided within the substantive report and was covered in detail in Appendix 2 to the report “Stock Options Study, Interim Report”.

As part of the Housing Options Study, the Project Board had developed and agreed a series of objectives for the future delivery of the housing service, against which to measure the relative contributions of the options. Stock transfer scored the best against the ten objectives identified in this review, followed by stock retention under self-financing. The least attractive option was to continue under the current subsidy regime.

The Project Board had considered the outcomes of the modelling work and the options that had been reviewed by this report. At its meeting on 10 June, the Board had agreed that it recognised the severe inadequacies of the current HRA system to deliver the stock investment and management required and that the future of the stock needed to be either within an affordable self financing system or within a transfer to a Registered Provider. The Board had recognised the progress that the Stock Options Project had made to date and had agreed that Council should be recommended to proceed with a consultation with tenants, for the purposes identified in recommendation 4 of the report. In doing so, the Board recognised that there were uncertainties in how the options might be delivered, but had felt that the Council would be in a better position to act and influence once it had awareness of the views of the tenants at this stage. The Council had advised tenants that the Stock Options Study has commenced and that there was a need to consult on the options for the future management and improvement of the housing stock. It was clear that the current HRA did not provide a sustainable option, but “Self- Financing” and “Transfer” did present two possible long-term solutions. The proposal in the substantive report was that, during July and August, the Council consulted tenants on the options, developing a clear understanding of the tenants’ preferences for the future ownership and management of the housing stock, with a view to reporting back to Council in October. Within the consultation, the Council would have to be clear with tenants that no decisions on the future of the housing stock had been made.

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A lengthy discussion ensued during which detailed responses were made to queries raised by Members. Consideration was given to social issues and assisted housing; transfer of staff; financial variables; democratic accountability and the Council’s responsibility to the community; possible alternative proposals following the new Government’s review on spending; and the need to lobby Central Government for a better deal for South Lakeland.

The Assistant Director (Community Investment and Development) undertook to place in the Members’ Room information on transfers of housing stock which had taken place in other authorities around the country so that Members could build on that knowledge.

It was unanimously

RESOLVED – That

(1) the report on the Stock Options Study (Appendix 2 to the substantive report) be received;

(2) it be noted that, under the current Housing Revenue Account arrangement, the financing of the management and investment in the housing stock is unsustainable and that, by 2014, will not be providing adequate revenue and capital resources to manage or improve the stock;

(3) assuming no substantial change in the present housing subsidy system, the Council will need to consider the future ownership and management of the housing stock through either an HRA self-financing option or a stock transfer option;

(4) consultation proceeds with tenants for the purposes of:-

(a) informing tenants of the options that need to be considered by the Council for the future ownership and management of the housing stock;

(b) developing a clear understanding of the tenants’ preferences for the future ownership and management of the housing stock; and

(c) informing the Council's future decision on the option to be pursued;

(5) officers be authorised to continue to seek from Communities and Local Government, early clarity on any proposed changes to the HRA, including the Transfer Levy, in order to ascertain the viability of the options; and

(6) a report be brought to Council in October, reporting the outcome of the consultation and further developments in proposed reform of the HRA, enabling Council to consider and agree the option to be pursued.

C/032 PROPOSED REFORM TO THE HOUSING REVENUE ACCOUNT (HRA) On 25 March 2010, John Healey, the then Minister for Housing, had issued a consultation document entitled “Council housing: a real future” and a statement announcing the detail behind the move to dismantle the current HRA subsidy system and replace it with a devolved self-financing system. This new system was intended to provide a once and for all new settlement between central and local government.

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The key points made in his statement were:-

• Total national debt to be redistributed was £25.13 billion. This was an additional £3.65 billion over and above the existing housing debt. • The proposals included a funding capacity to allow the building of 10,000 new council homes per annum. • The Government had identified that there was an outstanding requirement of £3.2 billion for expenditure on decent homes works. Funding for these works would be part of the future spending review process. • The revised proposals allowed councils to keep all their rents that they collected and all receipts generated from the sale of land and houses. • While the consultation recognised that stock transfers might still be an option, there would be no further Government subsidy and changes to the valuation methodology and levy calculation were proposed.

Councillor Peter Thornton advised Members that the consultation document required local authorities to respond to six specific consultation questions by 6 July and moved the recommendations contained within the report. He was seconded by Councillor Andy Shine.

A summary from the Council’s Stock Option Consultants of the key reforms proposed was presented.

Members were reminded that the Housing Stock Option Study had specifically taken into account the issuing of the proposed HRA reforms and that the Council was very well placed to accurately assess them and the implications arising from the proposed reform.

The report set out key issues from the modelling of the proposed HRA reforms and the risks associated with the self-financing proposals. The Housing Stock Options Project Manager presented a draft response to the consultation which was attached at Appendix 1 to the report. In summary, the response stated that the Council was keen to consider self-financing, but considered the proposed level of debt settlement to be unworkable and its distribution between councils grossly inequitable.

Following submission of the Council’s response to the consultation, the next steps would be to engage with tenants on the outcome of the Housing Stock Options Study and to seek views as to tenants’ future preferences for the future ownership and management of the housing stock.

It was unanimously

RESOLVED – That

(1) the proposed reforms, as outlined in the report, be noted; and

(2) the Assistant Director (Community Investment and Development) be authorised to amend and submit the draft response in light of the Council’s consideration, in consultation with the Assistant Director (Resources), the Housing and Development Portfolio Holder and the Policy, Performance and Resources Portfolio Holder.

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C/033 CHOICE BASED LETTINGS: ALLOCATIONS POLICY

RESOLVED – That it be noted that this item has been deferred following guidance from the adviser to the “Cumbria Choice” partners to undertake some additional work to the procedural guidance that will now form part of the Policy.

C/034 MEMBER CHAMPION APPOINTMENTS

At C/014 (2010/11), the appointment of Member Champions for the Provision of Rural Housing, Rural Heritage, Emergency Planning and Local Area Partnerships had been deferred in order to allow groups to consider nominations for the appropriate Member Champion roles.

RESOLVED – That the following appointments of Member Champions be made, each with a term of two years to expire at the Annual Council meeting in 2012:-

Provision of Rural Housing David Vatcher; Rural Heritage Vivienne Rees; Emergency Planning Mary Wilson; and Local Area Partnerships Jonathan Brook.

C/035 QUESTIONS ON NOTICE

RESOLVED – That it be noted that no questions had been received under Rule 10.5 of the Council’s Rules of Procedure.

The meeting ended at 9.20 p.m.

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14 PART I Agenda Item No: 6

South Lakeland District Council COUNCIL Meeting Date: 12 August 2010 Report Author: Emma Ludlam, Scrutiny Officer Portfolio: Not applicable Report from: Corporate Director (Monitoring Officer) Wards affected: Not applicable Key Decision: Not applicable Forward Plan: Not applicable OVERVIEW AND SCRUTINY ANNUAL REPORT 1.0 PURPOSE OF REPORT 1.1 This report is presented to summarise the work of Overview and Scrutiny during 2009/10. 2.0 RECOMMENDATIONS It is recommended that the report be received. 3.0 BACKGROUND 3.1 As is set out in the Council’s Constitution, ‘Overview and scrutiny committees must report annually to full Council on their workings.’ 3.2 Included with this agenda is the annual report of Overview and Scrutiny for the period May 2009 – April 2010. 4.0 RESEARCH AND CONSULTATION 4.1 The report covers the work of the Overview and Scrutiny Committees and their associated task and finish groups over the last twelve months. The report was discussed and finalised at the Overview and Scrutiny Co-ordination Board meeting of 13 July 2010. 5.0 PROPOSAL 5.1 In accordance with the Constitution, Council is asked to receive the Annual Report for 2009/10. 6.0 ALTERNATIVE OPTIONS 6.1 Not applicable

15 7.0 NEXT STEPS 7.1 It is proposed that once received by Council, the report will be published on the Council’s website and circulated to key partners. 8.0 IMPLICATIONS 8.1 Financial and Resources There are no direct financial implications. 8.2 Human Resources Not applicable 8.3 Legal Not applicable 8.4 Social, Economic and Environmental Impact Has a sustainability impact assessment been carried out? No – not applicable to this report. 9.0 RISK ASSESSMENT Risk Consequence Controls required None associated with the N/A N/A production of this report 10.0 EQUALITY AND DIVERSITY Not applicable 11.0 LINKS TO THE CORPORATE PLAN AND PERFORMANCE INDICATORS There are no specific links to the Corporate Plan but the work of Overview and Scrutiny generally aims to be conducive with the objectives of the Plan and to feed into this. 12.0 CONCLUSION AND EXPECTED OUTCOMES 12.1 Council is requested to note and receive the report and provide comment where desired. APPENDICES ATTACHED TO THIS REPORT Appendix No. 1 Overview and Scrutiny Annual Report 2009/10 CONTACT OFFICERS Emma Ludlam, Scrutiny Officer, [email protected] BACKGROUND DOCUMENTS AVAILABLE None TRACKING Assistant Portfolio Solicitor to the CMT Scrutiny Director Holder Council Committee N/A

16 Executive Committee Council Section 151 Monitoring (Cabinet) Officer Officer N/A N/A N/A 2 August 2010 Human Resource Services Manager

17

18 South Lakeland District Council Annual Scrutiny Report 2010

June 2010

19 www.southlakeland.gov.ukpage 1 20 Annual Scrutiny Report 2010 South Lakeland District Council

Contents pg

1. Forewords: Councillors Vivienne Rees and Mary Wilson 2-3

2. The Provision of Visitor Information Task and Finish Group 4

3. The Devolution of Services Task 5 and Finish Group

4. The Corporate Administration Task and Finish Group 6

5. Scrutiny News 2009/10 6

21 page 1 South Lakeland District Council Annual Scrutiny Report 2010

1a.Foreword to be properly prepared to be successful. We have made some preliminary moves in this By Vivienne Rees (Chair of direction, in particular establishing that the Lakes Resources Overview and Scrutiny School would be willing to host a committee Committee and the Co-ordination meeting and to involve students. With our Board) refreshed resources this should be achievable next year.

We have continued to examine the effectiveness of our working practices and with that in mind we held three workshops in which members discussed possible changes. A group also visited South Ribble Borough Council to see alternative methods in action. As a result a number of changes, outlined in the report, have been agreed.

The role of scrutiny committees nationally South Lakeland District Council is justly proud of continues to increase in importance and is likely its record in the area of scrutiny and at the time to be even more vital in the difficult times ahead. of the last annual report we were anticipating an None of this would be possible without the even busier year in 2009. Whilst much of value dedicated and professional work of the two was accomplished some of our plans had to be scrutiny officers and the willingness of councillors put on hold due to reduced resources. A Scrutiny and co-optees to spend time and energy on the Officer was appointed in November 2008, and various task groups. It is essential that we remain has worked with enthusiasm and energy ready to challenge where necessary, but always throughout the year. A second officer in the spirit of the critical friend.1.` appointment was made in January 2010, however, due to other commitments, the post holder has not been able to be effective until May 2010. In November 2009 we did manage to secure two days a week of seconded help from Lancaster. The effect of this reduced resource will be apparent if a comparison is made between the amount of work done by Task and Finish Groups in 2009-10 and that in 2008-9.

The report, however, does show that, although fewer than hoped, the Task and Finish Groups accomplished valuable work. Another vital role of Scrutiny is to monitor progress on previous recommendations made in their reports. In March 2010 we received an update on what had happened as a result of the recommendations made in the report on the ICT service published in March 2009. It was pleasing to note how much had been implemented and in particular how well the recommendation to identify opportunities for shared service provision had been carried out in relation to work with Eden.

Another objective which had to be put on hold was that of taking the Committees out into the communities. This is a complex issue which has

22 page 2 Annual Scrutiny Report 2010 South Lakeland District Council

1b.Foreword • Examining the role of this council in the support of tourist information; By Councillor Mary Wilson (Chairman of Community Services • Challenging and influencing decisions made by Cabinet about it’s support for Overview and Scrutiny Committee Tourist Information Centres; and 2009/10) • Reviewing a new Choice based lettings scheme proposed by the Cumbria-wide partnership.

In addition we have worked collaboratively with other districts on countywide issues through the Cumbria-wide Joint Scrutiny Committee and in collaboration with Eden councillors on a joint examination of proposed boundary changes to the National Parks.

Scrutiny is always looking to improve the way it reviews, examines and challenges the work of The work of the Community Services Overview the council and time has also been spent on & Scrutiny Committee has continued to focus on reviewing the way we work and looking at best the scrutiny of the actions of this council as well practice in other councils. This will result in some as those county and national issues which will changes to practice next year, which it is impact on its work and the lives of residents of envisaged will improve the effectiveness of the South Lakeland. We are grateful to the officers in scrutiny function in South Lakeland. the scrutiny team who have facilitated our programme in a year which has seen big changes. I would like to thank them for their hard work and determination to see projects through.

We have held six committee meetings, challenged decisions with three call ins and organised two task and finish group reviews. Topics covered included: • Reviewing the South Lakeland Local Development Framework Core Strategy submission; • Examining possible changes to bulky household waste collections; • Reviewing the Council's Achieving Equality project; • Examining the consultation process involved in the Draft Shoreline Management Plan; • Receiving a report on the consultation process on proposed extensions to the Yorkshire Dales and Lake District National Park boundaries extensions; • Monitoring the work of Lakes Leisure and receiving their annual report; • Questioning decisions about increased car park fees and charges;

23 page 3 South Lakeland District Council Annual Scrutiny Report 2010

2. The Provision of Visitor Information Task and Finish Group Cllr Ian McPherson Cllr Roger Bingham Cllr Vivienne Rees Cllr Mary Wilson

This Group met against a background of concern as to the adequacy and quality of visitor information throughout the District. It focused significantly but not exclusively on the provision of Tourist Information Centres as this was a particularly “live” issue at the time (and indeed remains so). The report was produced under considerable time pressure as some of the relevant issues were already before Cabinet for decision and this led to the Group producing an Interim Report. Last, but not least, a Members’ Call-in was also involved! I have to say that my three colleagues on the Group rose to the challenge and we were more than ably supported by our Scrutiny Officer.

For me the main feature throughout the whole process was the extremely high quality and in- depth knowledge of the witnesses whom we called to give evidence. Without them the report would not have been possible and I thank them for their invaluable contribution.

The report made six recommendations, but by far and away the most important was that there is no substitute for high quality, objective, face-to-face visitor information provision, and that there should be less focus on the profitability of Tourist Information Centres and instead a recognition of the wider “hidden benefits” which TIC’s bring to the local visitor economy. This debate continues.

Once again many thanks to all who contributed to the production of this report. I think we all felt great satisfaction in being an effective part of the scrutiny process “in action” and hopefully making a real difference in terms of outcomes beneficial both to the tourism industry in particular and the local economy in general.

Chairman: Ian McPherson

24 page 4 Annual Scrutiny Report 2010 South Lakeland District Council

3. The Devolution of Services to Information gathering and sharing across a broad spectrum of public bodies is seen as another vital Local Communities Task ingredient at this stage in the process. The LAP Group Co-ordinators have a major role to play in this.

Cllr Anne Hall The Group would like this to be viewed as an Cllr Jane Carson interim report, revisited by this or a similar Task Cllr Kath Atkinson Group in eighteen months time. Cllr Janette Jenkinson Co-opted Member David Peters I would like to thank councillor members and co- optee David Peters who have brought much This Task Group was set up following a joint experience, and a critical enthusiasm to this review by the Overview and Scrutiny Committees work. Also, thanks to our Scrutiny Officers for of the various White Papers relating to the their support and guidance. empowerment of local communities. The original remit involved looking at which actual services might be devolved, determining the extent to which communities wished to exercise choice and control, how that could be achieved, and what funding arrangements needed to be made to enable this to happen.

As members of SLDC will be aware, the Chair: Councillor Devolution of Services programme has taken a Jane Carson longer period to come into effect than was anticipated. This has made it difficult for the Task Group to carry out the original remit. We have therefore concentrated on the delivery of the Devolution of Services through the Local Area Partnerships, and it is hoped that the Task Group’s recommendations will help to ensure a successful beginning to this process.

In the course of our meetings, we have taken evidence from various District officers, including the Chief Executive, from an officer from the County Council, and from the Chair of the Grange and Cartmel Community Board. We thank them for their time.

The recommendations emphasise the need for a culture change amongst employees of SLDC. Key to this is the direct involvement by senior officers in the LAPs and consideration of the LAP process in the development of policy initiatives and in the specifications for all future major contracts.

There is also a need for wider member understanding to help drive the development of LAPs and ensure that the parishes are made fully aware of the changes taking place and their need to engage in the process. The Group suggests the appointment of a Member Champion for LAPs.

25 page 5 South Lakeland District Council Annual Scrutiny Report 2010

4. Corporate Administration 5. Scrutiny News 2009/10 Task & Finish Group House of Lords Visit November 2009 Cllr Stephen Coleman Cllr Pru Jupe In early November 2009, a group of councillors Cllr Chris Hogg from across the county joined together in their Cllr Colin Davies visit to the House of Lords at Westminster in a Co-opted Member John Short trip organised by the South Lakeland office. Councillors Ian McPherson and James Airey Corporate Administration is essentially all of the attended from South Lakeland, along with efforts that go into preparing papers and scrutiny staff Emma Ludlam and Chris Kelly. The meetings to support the democratic process i.e. party was given a tour of the Palace of getting these papers approved. Westminster, which was found to be highly informative and thoroughly enjoyed by all. More In learning about this topic we have come to relevant though was the opportunity to sit in on realise that whilst being a high spend area, more meetings of the Lords’ Select Committees, the efficient Corporate Administration would free up parliamentary version of our own scrutiny time for Officers to work on other duties. Our committees, and observe the questioning investigations revealed that cost allocation to protocol and the nature of the evidence given by Corporate Administration needs better witnesses. At the time, evidence was being understanding and training to ensure our records provided to the committee in relation to the are a true reflection. It was encouraging to learn banking crisis. Following this, our group was that our spending is generally comparable with treated to a series of sessions with Committee or less than other Cumbrian authorities. Clerks and a Committee Chairman. The group was told that this was the first visit of its kind by Members and Committee Chairs can also play a local authority scrutiny group to the House of their part in the way that meetings run to ensure Lords, and both parties were interested to hear that Officers time is used wisely. This could be about each other’s methods. achieved by scheduling Officer involvement early on agendas or getting them in and out of There are preliminary plans afoot to organise a meetings for those specific topics they attend to similar visit this coming autumn, to the Scottish speak on. Parliament in Edinburgh.

Councillor Stephen Coleman South Ribble Borough Council Visit Chair of Corporate Admininstration Task February 2010 Group In February a group of South Lakeland scrutiny Members, along with the Leader of the Council and scrutiny staff, visited South Ribble Borough Council in Leyland to meet with the scrutiny committee at that authority and to sit in on a meeting of that committee. The trip was deemed beneficial as means of both networking, and of finding out how other authorities run their scrutiny functions. Some of the procedures used at South Ribble have been introduced at South Lakeland as a means to improve how scrutiny works here. In turn, the Members at South Ribble were impressed by the extent to which co-optees are involved in South Lakeland’s scrutiny work.

26 page 6 Annual Scrutiny Report 2010 South Lakeland District Council

Making Scrutiny at South Lakeland More Teasdale has recently joined as Democratic Effective Services & Scrutiny Assistant. The scrutiny section is now fully staffed and looking to tackle Following a series of workshop sessions with the challenges which lay ahead. scrutiny Members, a visit to South Ribble Borough Council, and a great deal of research into how scrutiny is carried out at comparator authorities, Members decided to implement a series of changes to the scrutiny function at South Lakeland District Council, to commence in the new 2010/11 municipal year.

The most obvious of these changes include a reduction in membership numbers for each of the scrutiny committees, to a total of twelve councillors per committee, plus co-optees. In addition, the rules on public participation have been amended to allow for greater public involvement in the process, and there is also now an opportunity for non-scrutiny and non- Executive councillors at South Lakeland to address witnesses at a scrutiny committee, once the committee Members themselves have gone through their own questions. It is hoped that the scrutiny function will benefit from these changes and that a greater sense of focus will result. Furthermore, there have been amendments made to the individual remits of each of the overview and scrutiny committees, resulting in slight changes in the names of these committees. Community Services is now simply ‘Communities’, and Resources has become ‘Resources and Partnerships’. It is hoped that an equalisation in the workloads of the committees is now possible. A review of all the changes will be carried out after six months.

Staff Changes

In November 2009, Ron Matthews joined scrutiny on a part-time and temporary basis to increase resources available to Members. Ron has brought with him a wealth of experience, having previously worked at both South Ribble Borough Council and Lancaster City Council in a variety of roles. In particular, Ron has delivered a range of training workshops to Members with the aim of improving the efficiency of the Council’s scrutiny processes.

Following the departure of the Assistant Scrutiny Officer at the end of 2009, Chris Kelly, formerly Democratic Services Assistant, has taken up the role of Assistant Scrutiny Officer, and Lee

27 page 7 28 PART I

Agenda Item No: 7(1)

South Lakeland District Council CABINET/ COUNCIL Meeting Date: Cabinet 11 August 2010 Council 12 August 2010 Report Author: Shelagh McGregor, Assistant Director (Resources) & S151 Officer Portfolio: Councillor Andy Shine Policy, Performance & Resources Portfolio Report from: As above (Author) Wards affected: All Key Decision: Not applicable Forward Plan: Not applicable

2009/10 FINAL ACCOUNTS ISSUES – REVENUE

1.0 BACKGROUND AND PURPOSE OF THIS REPORT 1.1 The 2009/10 Provisional Revenue Outturn positions for both the General Fund (GF) and the Housing Revenue Accounts (HRA) were reported to the Cabinet meeting of the 9 June 2010. This report brings forward the issues which the Council are required to consider arising from the final accounts process which has now been completed. 1.2 The 2009/10 Statement of Accounts (subject to Audit) was approved by the Accounts Committee, by the required statutory deadline, on the 30 June 2010. These Accounts are now being externally audited and the outcome of that will be incorporated to the 2009/10 Annual Governance Report from the Audit Commission to be considered by the Accounts Committee on the 23 September.

2.0 RECOMMENDATIONS It is recommended that Council:- (1) approve the schedule of carry forwards set out in Appendix 1 (GF) and paragraph 3.2.1 (HRA); (2) confirm and approve the transfers to and from Reserves as set out in Appendix 2 (GF) and paragraph 3.2.2 (HRA).

29 3.0 PROPOSAL General Fund 3.1 Carry Forwards 3.1.1 Appendix 1 sets out a schedule of carry forward requests for General Fund budgets totalling £538,020. These carry forwards arise from work that was not carried out in 2009/10 which it is planned to be carried out in 2010/11. After taking account of these carry forwards the actual net expenditure for 2009/10 will be in £231,300 below the level budgeted, whereas in 2009/10 an overspend of £160,000 was reported. The majority of the underspend relates to higher net benefit subsidy than budgeted.

3.2 Movement on Reserves 3.2.1 The detailed movements on the General Fund Reserves are set out in Appendix 2. The total increased level of Reserves of £1,478,900 is mainly due to: a) reduced requirements in year for Capital Expenditure which will be needed to fund the updated Capital Programme in 2010/11; b) the amount earmarked for restructure costs that were budgeted in 2009/10 will now occur in 2010/11; c) the amounts requested for carry-forward above; and d) a new reserve for Planning Delivery Grant to reflect the change in Government treatment of the grant from an earmarked grant to a general grant.

Housing Revenue Account 3.3 Carry Forwards 3.3.1 The following carry forwards which total £440,000 are requested for work that was budgeted for in 2009/10 but will now is committed to be delivered in 20010/11 : a) Stock Options £130k; b) Support Services £ 60k; c) Repairs and Maintenance £250k.

3.2.2 The projected HRA working balance approved by Council in February 2010 was £758,400 and the actual outturn is £1,340,700. When the requested carry- forwards are taken into account, the adjusted out-turn working balance would be £900,700, an increase of £142,300 over the revised budget.

6.0 ALTERNATIVE OPTIONS 6.1 Not applicable 7.0 NEXT STEPS

30 7.1 The budgets will be updated in the ledger and close monitoring will be carried out and reported to the future relevant committee meetings and Council. 8.0 IMPLICATIONS 8.1 Finance and Resources 8.1.1 Included in the report. 8.2 Human Resources 8.2.1 Not applicable. 8.3 Legal 8.3.1 Not applicable. 8.4 Social, Economic and Environmental Impact 8.4.1 Not applicable. 9.0 RISK ASSESSMENT Risk Consequence Controls required Recommended changes Some commitments and Understanding of the not approved. corporate priorities not reasons for the changes. delivered due to insufficient resources. 10.0 EQUALITY AND DIVERSITY 10.1 Not applicable. 11.0 LINKS TO THE CORPORATE PLAN AND PERFORMANCE INDICATORS 11.1 Each element of the Revenue Budget is considered in the light of how the initiatives meet the priorities of the Council prior to being referred to and Cabinet and Council as part of the Budget Process. 12.0 CONCLUSION AND EXPECTED OUTCOMES 12.1 The conclusion will be a 2010/11 Revenue Budget updated for the final accounts process to enable the priorities of the Council to be delivered.

APPENDICES ATTACHED TO THIS REPORT Appendix No. 1 Revenue Expenditure Carry Forward Requests 2009/10 2 General Fund Reserves and Balances 31/03/2010

CONTACT OFFICERS Shelagh McGregor x 7198, (01539) 797555

BACKGROUND DOCUMENTS AVAILABLE Revenue Outturn Report for 2009/10 Cabinet 09.06.2010 Corporate Financial Monitoring Report 01 April to 30 June 2010 Council 12.08.2010

31 TRACKING Assistant Portfolio Solicitor to the CMT Scrutiny Director Holder Council Committee 29.07.2010 29.07.2010 N/A 30.07.2010 N/A Executive Committee Council Section 151 Monitoring (Cabinet) Officer Officer 11.08.2010 N/A 12.08.2010 My report 30.07.2010 Human Resource Services Manager N/A

32 APPENDIX 1

PROVISIONAL REVENUE OUT-TURN FOR 2009/10 CARRY FORWARD REQUESTS

1. The purpose of this Appendix is to provide an analysis of the requests for carry forwards to 2010/11 including appropriate commentary

SERVICE AREA AND DESCRIPTION OF CARRY FORWARD REQUEST AMOUNT £ £

DIRECT SERVICES

COMMUNITY INVESTMENT AND DEVELOPMENT

Business to Business KEDF (c/f) - Business Start Ups 15,000 Business Start Ups 14,650 Shop Fronts 5,050 BIDS 8,000

Enabling Role Lakeland Housing Trust Acq - Budget transfer to revenue - (Second Homes - Cabinet 10.2.10 - Parish Housing Needs Survey) 39,600 Second Homes - Cabinet 10.2.10 - Parish Housing Needs Survey 2,160

Kendal Regeneration

Regeneration Projects Manager 1,880

Kendal Signage 8,930

TOTAL COMMUNITY INVESTMENT AND DEVELOPMENT 95,270

COMMUNITY SERVICES

Homelessness

Ring-fenced funding for Court Desk service at Kendal County Court. 10,000

Health Promotion

Mobile Working Project. Delay in project development due to staffing changes at supplier end. Majority of money to be used to purchase mobile devices. 12,500

Housing Standards Ring-fenced funding for Handy Person Scheme 22,000

2009-10 Final Accounts Issues - Revenue Appendix 1 Carryforwards1 02/08/1033 APPENDIX 1

SERVICE AREA AND DESCRIPTION OF CARRY FORWARD REQUEST AMOUNT £ £ Consultancy Support to expand Flare Software System for Housing 5,460

Refuse Recyclates

Unspent balance of funding for ongoing consultancy support with Bring Site contract. 3,500

TOTAL COMMUNITY SERVICES 53,460

CORPORATE VISION

Community Development Underspending on Community Devt budget due to delay in progessing LAPS work, required for 2010/11 58,260

Community Safety Crime & Disorder Reduction Partnership 3,160

Chairmans Allowance

Chairman's allowance 4,300

TOTAL CORPORATE VISION 65,720

RESOURCES

Members

Members Allowances 0

TOTAL RESOURCES 0

SOCIAL ENTERPRISE

Conveniences Talk Toilets Consultation 4,180

TOTAL SOCIAL ENTERPRISE 4,180

TOTAL REQUESTS FOR DIRECT SERVICES 218,630

SUPPORT SERVICES

2009-10 Final Accounts Issues - Revenue Appendix 1 Carryforwards2 02/08/1034 APPENDIX 1

SERVICE AREA AND DESCRIPTION OF CARRY FORWARD REQUEST AMOUNT £ £ Human Resources Training budgets underspent across all services 69,690

Finance Underspend on procurement due to restructure 7,600

Neighbourhood Services Underspend on climate change revenue costs 33,100 Microfilming & Scanning. Appointment of System Officer allows project to start - links to Flare project. 6,800

Transformation and Change Slower progress on Transformation due to restructuring 202,200

TOTAL REQUESTS FOR SUPPORT SERVICES 319,390

TOTAL GENERAL FUND CARRY FORWARD REQUESTS 538,020

2009-10 Final Accounts Issues - Revenue Appendix 1 Carryforwards3 02/08/1035

36 APPENDIX 2

PROVISIONAL REVENUE OUT-TURN FOR 2009/10 GENERAL FUND RESERVES AND BALANCE 31ST MARCH 2010

1. The purpose of this Appendix is to provide an analysis of the General Fund Reserves and Balance at 31st March 2010 compared to Revised Estimate and give reasons for variations

Balance Contributions Balance Contributions (to)/from 1.4.09 Actual 31.3.10 Budget Variance Comments £000 £000 £000 £000 £000 GENERAL RESERVES General Reserve: Club/Coach Development Project 5.0 5.0 0.0 To meet Early Retirement/Voluntary 1,476.0 2,031.2 (555.2) Reflects slippage in Revenue Budget mainly Redundancy Costs on pension contributions Used to meet Windfarm Public Inquiry 27.0 27.0 0.0 Costs Transformation Agenda (part) 61.2 61.2 0.0 Non-recurring growth - Flooding 30.3 60.0 (29.7) November 2009 Slippage from 2008/09 345.9 345.9 0.0 Slippage from 2009/10 (538.0) 0.0 (538.0) Contribution to Fund (80.0) (80.0) 0.0 Balance on Reserve (3,750.9) 1,327.4 (2,423.5) 2,450.3 (1,122.9)

37 2009-10 Final Accounts Issues - Revenue Appendix 2 Reserves 1 02/08/10 APPENDIX 2 Balance Contributions Balance Contributions (to)/from 1.4.09 Actual 31.3.10 Budget Variance Comments £000 £000 £000 £000 £000 LABGI Reserve: South Lakes Development Trust 10.0 10.0 0.0 funding Great North Swim 15.0 15.0 0.0 Fixed term Project Officer, Culture & 27.1 27.1 0.0 Economy Waste Collection & Street Cleansing 50.0 50.0 0.0 Tender costs Cultural Olympiad 50.0 50.0 0.0 Business Start-up 5.3 20.0 (14.7) Reduced Revenue Expenditure Eden & South Lakes Delivery Board 10.0 10.0 0.0 World Heritage Site Project 9.0 9.0 0.0 Still Waters Project 0.0 2.0 (2.0) No spend Common Land New Road 5.0 5.0 0.0 Castle Dairy 10.0 10.0 0.0 Kendal Signage 16.1 25.0 (8.9) Reduced Revenue Expenditure Kendal Public Realm 61.2 0.0 61.2 Approved but not in Capital Budget Book Contribution to Fund (37.9) (37.2) (0.7) Additional Grant entitlement Balance on Reserve (682.4) 230.8 (451.6) 195.9 34.9

Vehicle and Plant Replacement Fund

Replacement of Vehicles and Plant 0.0 0.0 0.0 Balance on Reserve (37.3) 0.0 (37.3) 0.0 0.0

38 2009-10 Final Accounts Issues - Revenue Appendix 2 Reserves 2 02/08/10 APPENDIX 2 Balance Contributions Balance Contributions (to)/from 1.4.09 Actual 31.3.10 Budget Variance Comments £000 £000 £000 £000 £000 Economic Development Fund: Contribution to meet revenue 6.5 0.0 6.5 Additional revenue expenditure above expenditure budget Kendal Economic Regeneration Plan 46.4 46.4 0.0 Project Officer Balance on Reserve (104.3) 52.9 (51.4) 46.4 6.5

General Fund Properties Major Repairs Reserve: South Lakeland House chiller system 5.0 16.0 (11.0) Balance to be carried forward to 2010/11 Castle Dairy essential repairs 0.0 0.0 0.0 Contribution to Fund (100.0) (100.0) 0.0 Balance on Reserve (388.7) (95.0) (483.7) (84.0) (11.0)

IT Replacement Reserve: Replacement of IT equipment & 18.1 60.0 (41.9) Reflects Capital Expenditure requirements software Contribution to Fund (40.0) (40.0) 0.0 Balance on Reserve (135.1) (21.9) (157.0) 20.0 (41.9)

Planning Delivery Grant Fund Contribution to Fund (127.0) 0.0 (127.0) Government changed treatment of Planning Delivery Grant in 2009/10 from earmarked to general grant but still treated as earmarked by SLDC Balance on Reserve 0.0 (127.0) (127.0) 0.0 (127.0)

TOTAL: GENERAL RESERVES (5,098.7) 1,367.2 (3,731.5) 2,628.6 (1,261.4)

39 2009-10 Final Accounts Issues - Revenue Appendix 2 Reserves 3 02/08/10 APPENDIX 2 Balance Contributions Balance Contributions (to)/from 1.4.09 Actual 31.3.10 Budget Variance Comments £000 £000 £000 £000 £000 CAPITAL RESERVES

Fund of Revenue Monies for Capital Purposes: Support to Capital Programme 1,127.6 702.6 425.0 Reflects Capital Expenditure requirements Contribution to Fund (646.7) (50.0) (596.7) Includes transfer from Second Homes Reserve Balance on Reserve (702.5) 480.9 (221.6) 652.6 (171.7)

Second Homes Income Reserve: Support to Capital Programme (6.2) 494.7 (500.9) Reflects Capital Expenditure requirements and contributions from revenue not shown in Revised estimate Contribution to Fund 500.0 0.0 500.0 Transferred to Revenue monies for Capital Purposes Balance on Reserve (581.0) 493.8 (87.2) 494.7 (0.9)

TOTAL: CAPITAL RESERVES (1,283.5) 974.7 (308.8) 1,147.3 (172.6)

40 2009-10 Final Accounts Issues - Revenue Appendix 2 Reserves 4 02/08/10 APPENDIX 2 Balance Contributions Balance Contributions (to)/from 1.4.09 Actual 31.3.10 Budget Variance Comments £000 £000 £000 £000 £000 EARMARKED RESERVES

Building Control Fee Income Reserve: Offset deficit on fee income 92.3 120.0 (27.7) Income levels higher than anticipated Balance on Reserve (187.5) 92.3 (95.2) 120.0 (27.7)

Kendal Employment Development Fund: To meet revenue grants 9.8 7.0 2.8 Increased level of grants Kendal Business Start Up 0.0 15.0 (15.0) Reduced Revenue Expenditure Shop Fronts 10.0 15.0 (5.0) Reduced Revenue Expenditure Cultural Trail 7.0 7.0 0.0 Balance on Reserve (129.1) 26.8 (102.3) 44.0 (17.2)

TOTAL: EARMARKED RESERVES (316.6) 119.1 (197.5) 164.0 (44.9)

TOTAL: GENERAL FUND RESERVES (6,698.8) 2,461.0 (4,237.8) 3,939.9 (1,478.9)

GENERAL FUND WORKING BALANCE (1,768.0) 428.1 (1,339.9) 659.4 (231.3)

41 2009-10 Final Accounts Issues - Revenue Appendix 2 Reserves 5 02/08/10

42 PART I

Agenda Item No: 7(2)

South Lakeland District Council CABINET COUNCIL Meeting Date: 11th August 2010 12th August 2010 Report Author: Shelagh McGregor, Assistant Director (Resources) & S151 Officer Portfolio: Councillor Andy Shine Policy, Performance & Resources Portfolio Report from: Shelagh McGregor Wards affected: All Key Decision: Not applicable Forward Plan: Not applicable

2009/10 FINAL ACCOUNTS ISSUES – CAPITAL

1.0 BACKGROUND AND PURPOSE OF THIS REPORT 1.1 The 2009/10 Provisional Capital Outturn position was reported to the Cabinet meeting of the 9 June 2010. This report brings forward the issues which the Council are required to consider arising from the final accounts process which has now been completed. 1.2 The 2009/10 Statement of Accounts (subject to Audit) was approved by the Accounts Committee, by the required statutory deadline, on the 30 June 2010. These Accounts are now being externally audited and the outcome of that will be incorporated to the 2009/10 Annual Governance Report from the Audit Commission to be considered by the Accounts Committee on the 23 September.

2.0 RECOMMENDATIONS It is recommended that Council:- (1) approve the schedule of carry forwards set out in paragraph 3.1.1 and Appendix 1; (2) approve the updated Capital Programme for 2010/11 onwards set out in Appendix 2 as adjusted for the carry forwards, the Vehicle and Plant Replacement Programme and the Capital Works to Car Parks detailed in paragraphs 3.1.1, 3.1.2 and 3.1.3; 43 3.0 PROPOSAL 3.1 2010/11 Capital Programme Update 2009/10 Carry Forwards 3.1.1 At its meeting on the 9 June the Cabinet approved the list of carry forwards of budgets for schemes which were not delivered in 2009/10 but which will be delivered in 2010/11. The Capital Programme for 2009/10 approved by Council in February 2010 totalled £7,318,200 after slippage; actual expenditure was £6,888,700 and requested carry forwards of £2,674,262 were agreed by the Cabinet to be referred to Council at its meeting of the 12 August 2010. Council are recommended to approve the carry forwards as part of the 2010/11 Capital Programme to be financed as set out in the report considered on the 9 June 2010. Appendix 1 sets out the schemes and budgets required.

2010/11 Vehicle and Plant Replacement Programme 3.1.2 The Capital Programme approved in February 2010 included the existing Vehicle and Plant Replacement Programme. Cabinet in March 2010 approved a new Vehicle and Plant Replacement Programme 2010/11 – 2015/16 with slightly different levels of annual spend as set out in the table below. The Council are required to approve such changes to the Capital Programme which have now been incorporated. 2010/11 2011/12 2012/13 2013/14 Total £000 £000 £000 £000 £000 V&P Capital Programme 2,692.5 1,497.5 290.0 1,245.0 5,725.0 approved February 2010 V&P Programme approved 2,597.5 1,684.5 293.0 931.0 5,506.0 March 2010 Amendment Required to -95.0 187.0 3.0 -314.0 -219.0 Programme

The Capital Programme assumes the Vehicle and Plant replacement programme will be funded from leasing.

2010/11 Car Park Capital Works 3.1.3 The Capital Prioritisation Group (CPG) met on the 30 July and recommend that Council approve the inclusion of the Capital Works to the Car Parks that will bring them within the British Standard BS8300:2009, ‘Design of buildings and their approaches to meet the needs of disabled people’. The CPG considered that the project will enable the priorities of the Corporate Plan to be met. The estimated cost of the works all to fall in 2010/11 total £170,000. This would initially be met from the General Fund Major Repairs Reserve which at the 31 March 2011 is estimated to total £432,000. Income of £60,000 per annum is estimated to be generated from charges which will apply from April 2011, which it is recommended form a contribution back to the General Fund Major Repairs Reserve until the investment has been recouped (over less than four years).

44 3.1.4 The revised Capital Programme for 2010/11 including the adjustments described above is as follows: Capital Programme 2010/11 £ Approved by Council in February 2010 12,203,400 2009/10 carry forwards 2,674,200 Vehicle and Plant etc (95,000) Capital Works to Car Parks 170,000 Total 2010/11 Capital Programme 14,952,600

3.1.5 The revised financing of the 2010/11 Capital Programme is shown in the table below: Capital Programme Financing 2010/11 £ Capital Receipts 212,500 Grants & Contributions 5,628,200 Borrowing 1,000,000 Reserves 411,600 Second Homes Discount 680,400 Leasing of Vehicles 2,597,500 Major Repairs Allowance 2,502,200 Slippage 1,920,300 2010/11 Capital Programme Financing 14,952,700

4.0 ALTERNATIVE OPTIONS 4.1 Not applicable 5.0 NEXT STEPS 5.1 The delivery of the Capital Programme will be closely monitored and reported to future Committees as appropriate. 6.0 IMPLICATIONS 6.1 Finance and Resources 6.1.1 Included in the report. 6.2 Human Resources 6.2.1 Not applicable 6.3 Legal 6.3.1 Not applicable 7.4 Social, Economic and Environmental Impact 45 7.4.1 Not applicable 8. RISK ASSESSMENT Risk Consequence Controls required Recommended changes Some commitments and Understanding of the not approved. corporate priorities not reasons for the changes. delivered due to insufficient resources. 9. EQUALITY AND DIVERSITY 9.1 Not Applicable 10. LINKS TO THE CORPORATE PLAN AND PERFORMANCE INDICATORS 10.1 Each element of the Capital Programme is considered in the light of how the initiatives meet the priorities of the Council and are ranked by the Capital Prioritisation Group before being considered by Cabinet and Council. 11.0 CONCLUSION AND EXPECTED OUTCOMES 11.1 The conclusion will be a Capital Programme updated for the final accounts process to enable the priorities of the Council to be delivered. APPENDICES ATTACHED TO THIS REPORT Appendix No. 1 Capital Expenditure and Carry Forward Requests 2009/10 2 Capital Programme 2010/11 – 2013/14 CONTACT OFFICERS Shelagh McGregor x7198 (01539) 797555 BACKGROUND DOCUMENTS AVAILABLE Provisional Capital Outturn Report for 2009/10 Cabinet 09.06.2010 Vehicles and Plant Report 24.03.2010 Cabinet Corporate Financial Monitoring Report 1 April to 30 June 2010. Council 12.08.2010 TRACKING Assistant Portfolio Solicitor to the CMT Scrutiny Director Holder Council Committee 29.07.2010 29.07.2010 N/A 30.07.2010 N/A Executive Committee Council Section 151 Monitoring (Cabinet) Officer Officer 11.08.2010 N/A 12.08.2010 My report 30.07.2010 Human Capital Resource Prioritisation Services Group Manager N/A 30.07.2010

46 APPENDIX 1

CAPITAL OUTTURN FOR 2009/10 EXPENDITURE AND CARRY FORWARD REQUESTS 2009/10 PURPOSE OF APPENDIX 1. The purpose of this Appendix is to provide an analysis of the Capital expenditure and carry forward requests for the year compared to the latest approved Capital Programme and give reasons for variations

Capital Actual - Under Carry Comment Programme Expenditure Over Forward (Feb 2010) 2009/10 Spend Request £ £ £ £ COMMUNITY INVESTMENT AND DEVELOPMENT Low Mill Tannery Ph 2 Contribution 10,000 0 -10,000 10,000

£650K actually spent under Private Sector Renewal Affordable Housing Grants 665,400 650,000 -15,400 15,000 Grants (CS) (projects run together)

Lakeland Housing Trust Acquisition 39,600 0 -39,600 Revenue expenditure transferred to Rev Budget

Provision not spent due to decision to carry forward to Site Assembly Fund 953,200 147,222 -805,978 805,978 offset reduced Government funding in future years

New Build Fund - Affordable Housing 640,800 640,100 -700

Buy Back Scheme : RTB Homes 720,000 321,344 -398,656 398,656 Properties not available for purchase at level assumed

Environmental Partnerships 77,500 56,174 -21,326 21,326 Grants committed but not spent

Retentions / work to be completed. HLF / English Greenside Limekiln 65,600 21,995 -43,605 43,605 heritage funding to come in 2010/11

Historic Building Grants 18,400 13,456 -4,944 4,944

Cap Expenditure 0910 APP1 1 28/05/1047 APPENDIX 1

Capital Actual - Under Carry Comment Programme Expenditure Over Forward (Feb 2010) 2009/10 Spend Request £ £ £ £ Disabled Access Grants 6,300 0 -6,300 6,300

Grange Regeneration Programme 40,000 21,696 -18,304 16,950

Canal Head, Kendal Area Action Plan 32,000 34,613 2,613 Spending ahead of schedule - budget in 2010/11

Kendal Public Realm 200,000 270,000 70,000 Spending ahead of schedule - budget in 2010/11

Kendal Signage 25,000 -25,000 Budget included in revenue and being met from LABGI

Ulverston Town Hall DDA Access (SLH) 10,000 0 -10,000 Delayed pending one stop shop proposals

Decent Homes Programme 796,900 851,276 54,376 )

Decency Supervision 256,000 237,807 -18,193 112,046 ) £112,046 underspend on Decency to carry forward

Decency Sustainability 690,400 542,172 -148,228 )

Aids & Adaptations 294,400 147,243 -147,157 140,000 Lower demand than expected

SLH IT Schemes 46,800 37,850 -8,950 8,950

Planned Maintenance 819,700 706,809 -112,891 112,891 Slippage against budget

Contributions to Other Organisations 47,500 31,183 -16,317 16,317

Ulverston HERS Scheme 0 30,208 30,208 Costs met by external grant income

County Square Ulverston Enhancements 0 11,754 11,754 Costs partly met by external grant. Remaining costs met

GF Decency 0 42,721 42,721 Scheme not previously included in programme although

SUB TOTAL 6,455,500 4,815,623 -1,639,877 1,712,963

Cap Expenditure 0910 APP1 2 28/05/1048 APPENDIX 1

Capital Actual - Under Carry Comment Programme Expenditure Over Forward (Feb 2010) 2009/10 Spend Request £ £ £ £ COMMUNITY SERVICES

Stockbeck Drainage 17,000 15,693 -1,307 1,307

Disabled Facilities Grants 353,800 346,397 -7,403

Private Sect Renewal Grants 523,300 523,364 64 Runs together with Affordable Housing Grants (CID)

Energy Efficiency 185,800 106,731 -79,069 79,069Purchase of property delayed into 2010/11

Disabled Adaptations 100,000 -100,000 100,000 Adaptations committed but payment not until 2010/11

Town View Fields Hostel Improvements 69,000 11,918 -57,082 57,082 Delays on contract

Delays to progress due to tendering of Grounds Nobles Rest Park Improvements 79,600 13,240 -66,360 66,360 Maintenance contract

Public consultation has resulted in spend not being Big Lottery Play Area Development 150,900 43,195 -107,705 107,705 incurred until 2010/11

Castle Estate, Kendal, Play area imp 11,900 15,815 3,915 Funded from Lottery

Indoor Tennis Centre Ulverston 45,900 0 -45,900 45,900Work schedule not yet agreed

Kendal Leisure Centre Devt 135,000 127,285 -7,715 Saving on budget due to reduced loan request

Grange Footbridges 147,300 15,480 -131,820 131,820Legal issues causing delays on this scheme

Part funded from County Council contribution. Balance Plastic/Cardboard Recycling Banks 0 14,168 14,168 from Capital receipts

Kerbside Recycling 0 116,396 116,396 Fully funded from County Council contribution

SUB TOTAL 1,819,500 1,349,682 -469,818 589,243

Cap Expenditure 0910 APP1 3 28/05/1049 APPENDIX 1

Capital Actual - Under Carry Comment Programme Expenditure Over Forward (Feb 2010) 2009/10 Spend Request £ £ £ £ CORPORATE VISION

One stop shop tender delays and phasing of original Transformation Agenda 384,000 173,425 -210,575 210,575 estimate incorrect

Scheme in progress and other schemes being Climate Change Programme 114,000 50,414 -63,586 63,586 investigated due to previous feasibility study proving a scheme not cost effective

SUB TOTAL 498,000 223,839 -274,161 274,161

CUSTOMER FOCUS

Revenues & Benefits System 14,500 19,225 4,725 Overspend on machine met from Cap Rec

Replace Revs & Bens System 140,000 97,594 -42,406 42,406 Expenditure re-phased to match implementation stages

IT Replacements 0 17,650 17,650 No budget in programme but funded from IT Reserve

SUB TOTAL 154,500 134,469 -20,031 42,406

Cap Expenditure 0910 APP1 4 28/05/1050 APPENDIX 1

Capital Actual - Under Carry Comment Programme Expenditure Over Forward (Feb 2010) 2009/10 Spend Request £ £ £ £ RESOURCES

Post implementation consultancy budget needed in Integra Re-implementation 85,000 56,571 -28,430 28,430 2010/11

Stricklandgate House, HLF Project 20,000 20,000 0

Impact of Pension Fund adjustment and reduced Admin Recharges 91,300 34,930 -56,370 charges

Fees charged to individual schemes amounts to £80K NPS Fees 80,000 39,678 -40,322 giving an overspend of approximately £40K

SUB TOTAL 276,300 151,179 -125,122 28,430

SOCIAL ENTERPRISE

Ferry Nab Tractor 18,700 18,730 30

Rayrigg Meadow Public Jetties 50,000 24,941 -25,059 25,059 Flooding Nov 09 delayed scheme

Tender significantly less than estimate resulting in Main Street Grange Car Park Refurbishment 251,900 150,550 -101,350 2,000 underspend and release of resources of £99K

Peppercorn Lane Car Park 0 -1,496 -1,496 Previous years provision not required

Disabled Access Council Buildings 13,000 21,199 8,199 Budget overspent funded from Revenue

SUB TOTAL 333,600 213,923 -119,677 27,059

TOTALS 9,537,400 6,888,716 -2,648,684 2,674,262

Cap Expenditure 0910 APP1 5 28/05/1051

52 SOUTH LAKELAND DISTRICT COUNCIL Appendix 2 Amended Capital Programme (August 2010) Programmed Expenditure

GL Code Project Title 2010/11 2011/12 2012/13 2013/14 Total £000's £000's £000's £000's £000's JD Decency Project - Improvement Works 0.0 JDW Decency Project - SLH Supervision (Incl NPS) 18.2 18.2 JDX Decency Project - Sustainability 93.9 93.9 JNA90 Council Houses - Aids & Adaptations 430.0 290.0 290.0 290.0 1,300.0 JNI30 South Lakes Housing, Choice Based Letting System 26.3 26.3 JNI33 South Lakes Housing, Asset Management 8.9 8.9 JNM50060 Council Houses - Other Major Repairs 1,912.1 1,799.2 1,799.2 1,799.2 7,309.7 JNM50070 Housing Play Areas 20.0 20.0 20.0 20.0 80.0 KDE03 Low Mill Business Park Phase II 10.0 10.0 KDE Employment Land In South Lakeland 100.0 100.0 KGS01 Affordable Housing Grants (AHRG) 480.4 365.4 365.4 365.4 1,576.6 KGT20 Site Assembly Fund For Affordable Housing 1,088.0 282.0 282.0 332.0 1,984.0 KGT25 Buy Back Scheme: RTB Homes 398.7 398.7 KMR21 Kendal Museum Improvements 302.0 300.0 602.0 KPE11 Environmental Partnerships 21.3 21.3 KPE16 Greenside Limekiln, Kendal, Renovation 43.6 43.6 KPG01 Historic Environment Support Programme 24.9 20.0 20.0 64.9 KPG03 Disabled Access Grants 6.3 6.3 KRE04 Grange Regeneration Programme 46.9 46.9 KRE99 Lightburn Park, Ulverston, Skateboard Facility 16.3 16.3 KRE55 New Road Common - Design 70.0 70.0 Community Investment & Development KRE56 Kendal "Quality Gateway To The Lakes" Public Realm Prog 400.0 135.0 535.0 KRE57 Waterhead (Ambleside) Scheme 2,900.0 100.0 3,000.0

Totals Community Investment & Development 8,317.8 3,411.6 2,776.6 2,806.6 17,312.6

53 Capital prog Aug 2010 with carryforwards -1 - 02/08/10 SOUTH LAKELAND DISTRICT COUNCIL Appendix 2 Amended Capital Programme (August 2010) Programmed Expenditure

GL Code Project Title 2010/11 2011/12 2012/13 2013/14 Total £000's £000's £000's £000's £000's KEG33 Stockbeck Drainage Land & Construction 1.3 1.3 KEP51 Public Conveniences (Upgrade And Hand Over) 250.0 750.0 350.0 1,350.0 KGD21 Disabled Facilities Grants 459.0 459.0 459.0 459.0 1,836.0 KGP11 Private Sector Renewal Grants 400.0 400.0 400.0 400.0 1,600.0 KGT22 Energy Efficiency 179.1 100.0 100.0 100.0 479.1 KGT23 Disabled Adaptations 200.0 100.0 100.0 100.0 500.0 KGX17 Town View Fields Hostel Improvements 57.1 57.1 KLR22 Rothay Park, Ambleside 82.0 82.0 KLR31 Nobles Rest Park, Kendal, Improvements 66.4 66.4 KLR50 Play South Lakeland (Big Lottery) 107.7 107.7 KLR51 Castle Estate, Kendal, Play Area Improvement 0.0 KLS21 Ulverston Tennis Centre Remedial Works 45.9 45.9 KLS23 Lakes Leisure Loan 0.0 KMR01 Grange Railway Bridges 222.8 222.8 Community Services KSC91 Vehicle & Plant Programme 2,597.5 1,684.5 293.0 931.0 5,506.0 KTY02 The Tram Footpath, Kendal Heights 12.0 12.0

Totals Community Services 4,680.8 3,493.5 1,702.0 1,990.0 11,866.3

KIT18 Revenues & Benefits System 0.0 KIT19 Replacement Revenues & Benefits System 252.4 252.4 KOS01 One Stop Shops 75.0 75.0 150.0 Focus

Customer Totals Customer Focus 327.4 75.0 0.0 0.0 402.4

KXF50 Transformation Agenda 245.9 245.9 KXW21 Carbon Reduction Programme 177.6 57.0 57.0 0.0 291.6

Vision Totals Corporate Vision 423.5 57.0 57.0 0.0 537.5 Corporate

54 Capital prog Aug 2010 with carryforwards -2 - 02/08/10 SOUTH LAKELAND DISTRICT COUNCIL Appendix 2 Amended Capital Programme (August 2010) Programmed Expenditure

GL Code Project Title 2010/11 2011/12 2012/13 2013/14 Total £000's £000's £000's £000's £000's JTR01 Admin & Technical Support Met By MRA 28.0 28.0 28.0 28.0 112.0 JTR01 HRA Admin Support 33.2 33.2 KIT25 Upgrade Financial Systems 28.4 28.4 KPG05 Stricklandgate House Refurbishment 0.0 KXR51 GF Administrative & Technical Support 34.5 34.5 34.5 34.5 138.0 Design Fees 0.0 Resources Totals Resources 124.1 62.5 62.5 62.5 311.6

KLL15 Ferry Nab Tractor Replacement 0.0 KLL16 Rayrigg Meadow Public Jetties 25.1 25.1 KLS23 Lakes Leisure Loan, Kendal Leisure Centre Development 0.0 KPY22 Main Street, Grange Car Park, Complete Refurbishment 2.0 2.0 KPY40 Buxton Place Car Park Improvements Design 40.0 40.0 KPY Westmorland Shoping Centre Car Park Refurbishment 400.0 400.0 200.0 1,000.0 KPY DDA Works to Car Parks 170.0 170.0 Disabled Toilet 1st Floor Kendal Town Hall 0.0 KXB26 South Lakeland House Heat/Chiller Unit 340.0 340.0 Social Social Enterprise Totals Social Enterprise 977.1 400.0 200.0 0.0 1,577.1

KXX01 Unallocated To Schemes 102.0 102.0 102.0 102.0 408.0

Totals Community Allocation 102.0 102.0 102.0 102.0 408.0 Allocation Community

PROGRAMME TOTALS 14,952.7 7,601.6 4,900.1 4,961.1 32,415.5

55 Capital prog Aug 2010 with carryforwards -3 - 02/08/10 SOUTH LAKELAND DISTRICT COUNCIL Appendix 2 Amended Capital Programme (August 2010) Programmed Expenditure

GL Code Project Title 2010/11 2011/12 2012/13 2013/14 Total £000's £000's £000's £000's £000's Programmed Funding EARMARKED RESOURCES: Disabled Facilities Grant 174.0 174.0 174.0 174.0 696.0 Big Lottery Grant 107.7 0.0 0.0 0.0 107.7 Heritage Lottery Grant 43.6 0.0 0.0 0.0 43.6 NWDA Grant 190.0 0.0 0.0 0.0 190.0 Other Grants & Contributions 3,140.0 180.0 0.0 0.0 3,320.0

Single Capital Pot 1,972.9 532.0 532.0 532.0 3,568.9 Major Repairs Allowance (MRA) 2,390.1 2,137.2 2,137.2 2,137.2 8,801.7 MRA Decent Homes 112.1 0.0 0.0 0.0 112.1

Second Homes Discount 680.4 665.4 665.4 665.4 2,676.6

Leasing of Vehicles 2,597.5 1,684.5 293.0 931.0 5,506.0

LABGI Reserve 20.0 105.0 0.0 0.0 125.0 GF Major Repairs Reserve 170.0 0.0 0.0 0.0 170.0

TOTAL EARMARKED RESOURCES 11,598.3 5,478.1 3,801.6 4,439.6 25,317.6

GENERAL RESOURCES: Capital Receipts 212.5 1,850.0 250.0 250.0 2,562.5 Fund of Revenue Monies for Capital Purposes 221.6 0.0 0.0 0.0 221.6 Borrowing - Unsupported 1,000.0 1,000.0 1,000.0 1,000.0 4,000.0 TOTAL GENERAL RESOURCES 1,434.1 2,850.0 1,250.0 1,250.0 6,784.1

Slippage 1,920.3 (726.5) (151.5) (728.5) 313.8

TOTAL RESOURCES 14,952.7 7,601.6 4,900.1 4,961.1 32,415.5

56 Capital prog Aug 2010 with carryforwards -4 - 02/08/10 PART I

Agenda Item No: 7(3)

South Lakeland District Council CABINET / COUNCIL Meeting Date: Cabinet 11 August 2010 Council 12 August 2010 Report Author: Shelagh McGregor, Assistant Director (Resources) & S151 Portfolio: Councillor Andy Shine Policy, Performance & Resources Portfolio Report from: Assistant Director (Resources) & Section 151 Officer & Helen Smith, Strategic Finance Manager Wards affected: All Key Decision: Not applicable Forward Plan: Not applicable

BUDGET STRATEGY REPORT 2011/12 – 2015/16

1.0 PURPOSE OF REPORT 1.1 This report summarises the Council’s financial position at the end of July 2010 and outlines the initial proposals for the preparation of budgets for 2011/12 onwards. The report includes a broad timetable for the budget process leading up to approval of the Budget and Medium Term Financial Plan in February 2011.

2.0 RECOMMENDATIONS It is recommended that Cabinet:-

(1) consider the Budget Strategy set out in this report (Para 5.2, 5.3 and 5.4); (2) adopt the Budget Timetable (Appendix 1) and publicise it as appropriate; (3) note the latest projections within the Medium Term Financial Plan; and (4) refer the report to Council for consideration. It is recommended that Council:- Consider and approve the recommendations set out above.

57 1

3.0 BACKGROUND 3.1 The Council’s Medium Term Financial Plan is the planning mechanism that ensures the Council has the financial resources to meet its major corporate priorities. The Plan’s assumptions should be used as the parameters for a Budget Strategy which will be used for the preparation of the 2011/12 – 2015/16 Revenue and Capital budgets. 3.2 The Medium Term Financial Plan projects future levels of both expenditure and potential resources over the next five years and was last approved by Council on the 30 March 2010. Although only approved annually the projections within the Plan are kept constantly under review as circumstances change. 3.3 The period since March 2010 has been particularly changeable as a result of the General Election and the changes made by the Coalition Government. The announcements of the new government, including the announcements in the Emergency Budget on the 20 June 2010, have been incorporated into the MTFP projections. The MTFP approved in March 2010 projected a deficit on the General Fund Revenue Account of £612,000 for 2011/12 increasing to £2,145,000 by 2014/15. These deficits will increase as a result of announcements to date. The table below provides the estimated financial impact of these on the bottom line of the Council’s Revenue Budget. Assumptions have been made in the absence of clear or detailed information in respect of certain issues. The impact will change, and constantly be updated as further information is provided by central Government. Members will be kept informed of the moving position as part of the Budget Consultation Process.

Opening Position and 2011/12 2012/13 2013/14 2014/15 Potential Change £000 £000 £000 £000 Deficit from MTFP approved March 2010 612 928 1,647 2,145 Predicted savings (including Employer NI contributions & pay freeze) -168 -237 -245 -249 Additional pressures (including Council tax freeze 2011/12 & assumed reduction in RSG) 659 1,070 1,457 1,820 Latest Projected Deficit (as at end July 2010) 1,103 1,761 2,859 3,716

4.0 RESEARCH AND CONSULTATION 4.1 The Council’s Medium Term Financial Plan models six key risks that relate directly to its General Fund Budget. These are updated as follows:

58 2 a. Cuts in Revenue Support Grant - The Government’s Emergency Budget on 20 June 2010 announced reductions in overall government spending of 25% by 2014/15. Until more detail is announced in the autumn spending review it is not known whether there will be a similar reduction in support to local government and the impact this may have on the Revenue Support Grant. The formula for the distribution of RSG is also being re-calculated for 2011/12 onwards and a consultation paper has been received which will be analysed a response drafted and reported on. The Council was already protected through the floor mechanism due to actual grant being higher than entitlement from the last change in distribution although this protection has fallen from around £500,000 pa to around £100,000pa. A 1% reduction in RSG is equivalent to around £69,000 per year. The table above assumes that RSG will reduce by a quarter of the 25% reduction in each of the years from 2011/12 to 2014/15; ie a reduction of 6.25%, 12.5%, 18.75% and a 25% of the 2010/11 base by the fourth year. b. Economic Downturn - The risk that the economy would see a further downturn with a further reduction in fees and charges combined with increases in costs of demand-led services. This risk cannot be dismissed. There is widespread debate on the impact of the Government’s Emergency budget on the whole economy and whether the reduction in spending and jobs will lead the economy into a double-dip recession. Officers will closely monitor the economic indicators and keep Members informed. c. Inflation Increase - The Medium Term Financial Plan projects inflation to remain at no more than 2% over the five-year life of the plan. Inflation is currently 5.0% (RPI) or 3.2% (CPI) and has been above the 2% target since December 2009 with opinions divided between economists on how quickly inflation will fall during 2010. d. Additional investment in services - The MTFP projects £150,000 to cover newly recognised aspirations, growth bids arising from the service planning process and for new responsibilities in addition to £150,000 for health & safety initiatives. There is a risk that there will a need to invest more than this each year in new initiatives or unavoidable growth. e. Concessionary Fares - The national concessionary fares scheme remains a major financial risk. The current scheme was introduced in April 2008 and has seen major fluctuations in take up. The responsibility for the concessionary fares scheme is expected to be transferred to Cumbria County Council from April 2011. The current scheme is funded through a combination of direct grant and Revenue Support Grant. The consultation on the formula for the distribution of RSG for 2011/12 onwards should clarify the amount of grant that will be lost which will be compared to the cost of the service transferred to CCC. f. Taxbase – (ie the number of properties Council Tax is collected from) The MTFP assumes the Council taxbase will increase by 0.5% per year - this is the equivalent of £40,000 per year of additional Council tax collectable. Increases in taxbase occur when new houses are completed and occupied. Any prolonged recession in the house-building industry will reduce the likelihood of this increase being sustainable.

59 3 In addition the Medium Term Financial Plan identifies a number of other risks that are not individually modelled. In particular: a. Because of the significance for the Council of Car Park income and reliance placed on this it is identified as a key corporate risk. The trend is for income from this source to reduce. In 2009/10 the actual income was £4.1m, some £317,000 lower than originally estimated and £16,000 lower than actually collected in 2008/09. b. The Budget for 2010/11 includes £352,500 of interest on investments. Interest rates have been very unpredictable for the last couple of years but it looks unlikely that UK interest rates will recover as quickly as projected with few predicting much of a rise in UK interest rates over a one to two year horizon. 4.2 On this same agenda is a report on the 2009/10 Outturn which showed that there had been a net underspend of £230,000 after contributions to and from reserves. Further analysis will be carried out to see whether there are any lasting trends that would materially affect the Medium Term Financial Plan’s projections. 4.3 The Council’s Corporate Financial monitoring process reviews the Capital Programme, Revenue budgets and other financial targets on a quarterly basis. The report for Q1 2010/11 to 30 June 2010 identifies the Council’s finances, including reserves, are largely in-line with projections of the MTFP. The main area of variance concerns the sale of the Commercial Waste service which was due to be completed by 31 March 2010 but was not achieved. Work is underway to enable an arrangement that will reduce the impact on this from 1 April next year. Management Team will monitor the position this year very closely and suggest how the overspend is to be met. 5.0 PROPOSAL 5.1 It is proposed that as well as closely monitoring the projected deficits and attempt to estimate the impact on the bottom line, that the Budget Process gets underway earlier this year compared to previous years and that options are developed to provide the savings which are required to deliver a balanced position, particularly for 2011/12 initially but also for future years. Members will be asked to consider the range of options put forward and which are to be consulted on and ultimately actioned when the detailed information is provided by central Government regarding the resources the Council will receive. These may include: • increasing income; • reducing costs via service efficiency measures; • cessation of services; • reduce costs in terms of lower levels of services; • alternative service delivery mechanisms.

5.2 Proposed Budget Strategy: General Fund Services a) The Budget assumes a decrease in Revenue Support Grant of 6.25% per annum cumulatively over 4 years (reaching 25% in year 4) from 2011/12 to 2014/15, until more detailed information is provided;

60 4 b) The Budget assumes a nil Council Tax increase for 2011/12 and 2.8% per annum for future years; c) Officers undertake discussions with partners who deliver services on behalf of the Council such as Norfolk Property Services, South Lakes Housing and Lakes Leisure with a view to exploring a contribution towards the savings needed via these organisations. d) The working balance contribution of £50,000 in 2011/12 to reach the target minimum of £1,250,000 is reviewed; e) Salaries budgets are increased by known incremental advances, 0% for inflationary pay awards except for staff on salaries below £21,000 where a flat rate increase of £250 be incorporated (subject to confirmation being received of this direction from central Government). A 2.5% reduction be allowed for vacancies and turnover; f) A Recruitment Freeze is operated with posts only being filled on a ‘needs must’ basis; g) Reviews of Services to deliver cashable efficiency gains and or disinvestment are undertaken. Options are to be developed to deliver savings required to produce a balanced budget for 2011/12 and future years progressively; h) Effective consultation with a significant number and variety of stakeholders and partners is carried out; i) The delivery of existing savings currently included in the budget (totalling £472k) are confirmed with a view to the development of increasing these areas where possible; j) No allowance is made for inflation in expenditure budgets unless contractually committed or unavoidable (e.g. energy and utility bills); k) Income budgets should be reviewed to ensure income is optimised using the principles within the Corporate Charging Policy. Options for charging for services currently not charged for will be provided for consideration by Members. Where appropriate income should be increased by at least 1% above inflation where market forces permit. l) The identification of savings to meet the overspends projected for 20010/11 are made; m) Growth bids are kept to a minimum and focus on invest to save or nil impact on the Revenue Budget options; n) The carry forward procedure is reviewed with a view to being made more stringent in future years including earlier deadlines for requests being made; o) A review is carried out of the current use of, and the investment and return on the Council’s assets in line with the Corporate Property Strategy; p) Reserves to be used in accordance with their agreed policies with the fundamental principle that they are not used to fund recurring expenditure; q) Continued close monitoring of the impact of the transfer of concessionary fares to Cumbria County Council from 1 April 2011; r) Close monitoring of income, investment income & budget reductions and the incorporation of any tangible alleviating actions; 61 5 s) Financial growth per the MTFP (c. £300,000), to be released only when a balanced budget can be achieved and allocated to (in order of priority): a. new statutory/health and safety responsibilities (tentatively £150,000) b. ‘must have needs led’ Corporate Plan outcomes c. other Corporate Plan priorities

5.3 Budget Strategy: Housing Revenue Account The following strategy is proposed for the HRA: a) A working balance of £600,000 at 31 March 2012 b) Average rent increases in line with the Government guideline/subsidy determination c) Expenditure and income assumptions as for the General Fund and to include i) subsidy per the draft 2011/12 determination ii) borrowing costs associated with the decency programme d) a review of fees and charges. 5.4 Budget Strategy: Capital a) Bids for Capital initiatives which do not recover the investment in a five year period are kept to a minimum. Detailed Project Initiation Documents are required prior to acceptance as part of the Capital Programme. These are to be completed to a high quality standard and with sufficient detail to make the delivery achievable – to include higher quality assessment of the profile of expenditure over the future years; b) Schemes which attract external funding should be considered in the light of the capacity of the organisation to deliver these alongside schemes which deliver the corporate priorities; c) Schemes not contracted to start by period 6 (30 September) in the current financial year are reviewed with a view to withdrawing them from the capital programme as part of the Budget Process subject to external funding considerations; d) The Capital Community Allocation budgets allocated to the Local Area Partnerships are carried forward where there are plans to spend the funds over a 2 year period. 5.4 Budget Process It is also proposed that a “light-touch” review of the current-year budget should be undertaken to produce a “Probable Outturn” instead of the current Revised Budget process and alongside the budget for the following year. It is proposed that regular reports with more detail are provided to inform Members on how the Budget Strategy is being implemented to achieve the reductions required are provided.

62 6 6.0 ALTERNATIVE OPTIONS 6.1 The proposals in this report are a practical expression of measures to ensure that 2011/12 – 2015/16 Budgets are prepared on a sound basis within an agreed corporate framework. Alternatives are possible, some of which will be worked up and brought to future committee meetings as part of the 2001/12 Budget. 7.0 NEXT STEPS 7.1 Following approval of these proposals, the Portfolio Holder, managers and finance staff will work together on the preparation of budgets based on the strategy above. Work will be undertaken on options for reducing the deficits currently projected. The timetable for the preparation of the budgets is shown in Appendix 1, including proposals for consultation. 8.0 IMPLICATIONS 8.1 Financial and Resources 8.1.1 The proposals aim to safeguard the Council’s financial position. 8.2 Human Resources 8.2.1 This report has no direct impact on the staffing of the Council at this stage. 8.3 Legal 8.3.1 This report has no direct legal implications at this stage. 8.4 Social, Economic and Environmental Impact 8.4.1 Sustainability is the principal behind the Btrategy set out here which will be further developed. 9.0 RISK ASSESSMENT Risk Consequence Controls required Failure to create a Includes: inability to deliver Identification of sound budget balanced and corporate priorities, guidelines in an agreed strategy sustainable budget by inappropriate spending, reduces the risk of an March 2011 reductions in services. unaffordable budget, unacceptable council tax or council house rent increases, and/or precipitate budget reductions. 10.0 EQUALITY AND DIVERSITY 10.1 An equality and diversity impact assessments of the options to be implemented will be carried out when the financial position becomes clearer ie more information is received from central Government. 11.0 LINKS TO THE CORPORATE PLAN AND PERFORMANCE INDICATORS 11.1 The proposals are based on forecasts that recognise the need for resources to be identified for new developments in the Corporate Plan. Setting a sound framework for budget preparation assists in the delivery of corporate outcomes. This strategy has been developed from the MTFP. 12.0 CONCLUSION AND EXPECTED OUTCOMES 12.1 This report will provide a framework for the preparation of budgets for 2011/12 onwards that will ensure the Council directs its financial resources to delivering the priorities within the Corporate Plan. 63 7

APPENDICES ATTACHED TO THIS REPORT Appendix No. 1 Outline Budget Timetable CONTACT OFFICERS Helen Smith, Strategic Finance Manager, phone: 01539 717217; e-mail: [email protected] BACKGROUND DOCUMENTS AVAILABLE Medium Term Financial Plan 30/03/2010 Council Corporate Financial Monitoring Report Quarter 1 2010/11 - 12/08/2010 Council TRACKING Assistant Portfolio Solicitor to the CMT Scrutiny Director Holder Council Committee 30.07.2010 30.07.2010 N/A 30.07.2010 N/A Executive Committee Council Section 151 Monitoring (Cabinet) Officer Officer 11.08.2010 N/A 12.08.2010 My report 30.07.2010 HRServices Manager N/A

64 8 BUDGET STRATEGY REPORT 2011/12 – 2015/16 APPENDIX 1 OUTLINE BUDGET TIMETABLE

Task Who Date Preparation of detailed estimates Budget holders and Finance September – November Consultation by various methods Various September - with stakeholders February Possibly some joint with Cumbria County Council Submission of Service Development Budget Holders and Assistant Directors in 1 November Proposals (Growth Bids) and consultation with Portfolio Holders and Savings Options appropriate Members Fees and Charges Options are Assistant Directors in consultation with produced Portfolio Holders

Cabinet 10 November, Special Joint O&S Before 10 Nov. Comments to Cabinet 8 December Council 21 December Budget Prospects Report Section 151 Officer To Cabinet 8 December To Council 21 December Formulation of: Section 151 Officer and Assistant - first draft service growth bids Directors

- savings proposals Cabinet - budget options & priorities 8 December Joint Overview & Scrutiny Committees - first draft detailed estimates 11 January Cabinet Consideration of O&S Comments 12 January Consultation on draft budget Joint Overview & Scrutiny Committees 3 February Formulation of firm budget proposals Cabinet 9 February (second meeting if required) (16 February) Approval of Budget and Council Tax Council 22 February

65 9

66 NOT FOR PUBLICATION PART I

Agenda Item No: 8

South Lakeland District Council COUNCIL Meeting Date: 12th August 2010 Report Author: June Lee, Financial Services Officer Helen Smith, Strategic Finance Manager Portfolio: Councillor Andy Shine Policy, Performance & Resources Portfolio Report from: Assistant Director (Resources) & Section 151 Wards affected: All Key Decision: Not applicable Forward Plan: Not applicable TREASURY MANAGEMENT ANNUAL REPORT AND ACTUAL PRUDENTIAL INDICATORS 2009/10

1.0 PURPOSE OF REPORT 1.1 This report is presented to provide a summary of the Council’s Treasury Management activities for 2009/10, including actual prudential indicators for the year.

2.0 RECOMMENDATIONS It is recommended that Council:- (1) approve the actual 2009/10 Prudential Indicators within the report; and (2) accept the Treasury Management stewardship report for 2009/10.

3.0 BACKGROUND

3.1 Appendix 1 provides the 2009/10 report on the Council’s Treasury Management activities, most of which are carried out by the Assistant Director (Resources) under delegated powers. It includes the set of Prudential Indicators which are required to be calculated as actuals for the year.

67 3.2 The report is an important element of stewardship which is consistent with the requirements of CIPFA’s relevant regulatory guidance: The Code of Practice on Treasury Management and the Prudential Code for Capital Finance.

4.0 RESEARCH AND CONSULTATION 4.1 Not applicable 5.0 PROPOSAL 5.1 Council is requested to receive the Annual Report on Treasury Management service and approve the Prudential Indicators for 2009/10. 6.0 ALTERNATIVE OPTIONS 6.1 Not applicable 7.0 NEXT STEPS 7.1 The Prudential Indicators will be reviewed as part of the external audit process of the Council. 8.0 IMPLICATIONS 8.1 Financial and Resources The financial implications of this report are detailed in Appendix 1 to this report. 8.2 Human Resources 8.2.1 Not applicable 8.3 Legal 8.3.1 The report is written in line with the relevant Code of Practice as mentioned above. 8.4 Social, Economic and Environmental Impact 8.4.1 Has a sustainability impact assessment been carried out? No. 8.4.2 This proposal is considered to have a neutral impact on sustainability. 9.0 RISK ASSESSMENT Risk Consequence Controls required Long term borrowing is Council incurs Treasury advice is taken taken at rates that are unnecessary interest on optimum timing of not advantageous costs borrowing; currently all borrowing is for capital expenditure for which Government subsidy is received on debt charges Investment of principal Loss of principal due to Stringent and cautious sums with insecure default by borrower lending criteria are built counterparties into the Council’s Investment Strategy Investment returns are Underperformance and Monitoring of volatile and may fall short underachievement of performance of fund

68 of expectations budgeted income levels manager’s and in house investments; planned withdrawal of funds from manager to stabilise returns HRA borrowing is not Financial pressure on the Risk minimised by affordable. HRA. borrowing costs being mainly met by government subsidy. Prudent borrowing in accordance with the Strategy and indicators.

General Fund borrowing Financial pressure on the Forecast borrowing costs does not attract grant General Fund. are factored into the and is not affordable. 2010/11 Budget and Medium Term Financial Plan. Prudent borrowing in accordance with the Strategy and indicators.

10.0 EQUALITY AND DIVERSITY 10.1 An equality and diversity impact assessment has not been carried out. 11.0 LINKS TO THE CORPORATE PLAN AND PERFORMANCE INDICATORS

11.1 The Treasury Management Strategy is consistent with the Community Strategy and Medium Term Financial Plan. 11.2 There are no Performance Indicators relating to this report. The Prudential Indicators relating to 2009/10 are contained within Appendix 1 to this report.

APPENDICES ATTACHED TO THIS REPORT Appendix No. 1 Annual Report on the Treasury Management Service and Actual Prudential Indicators 2009/10 CONTACT OFFICERS June Lee, Technical Accountant, 01539 717215 , [email protected] BACKGROUND DOCUMENTS AVAILABLE Treasury Management in the Public Services: Code of Practice and Cross-Sectoral Guidance Notes (CIPFA 2009) Treasury Management Strategy Statement, Prudential Inficators & Minimum Revenue Provision Statement

69 TRACKING Assistant Portfolio Solicitor to the CMT Scrutiny Director Holder Council Committee My report 30.07.2010 N/A 30.07.2010 N/A Executive Committee Council Section 151 Monitoring (Cabinet) Officer Officer N/A N/A 12.08.2010 My report 30.07.2010 Human Resource Services Manager N/A

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Item 8 APPENDIX 1 SOUTH LAKELAND DISTRICT COUNCIL Annual Report on the Treasury Management Service and Actual Prudential Indicators 2009/10 Purpose The annual treasury report is a requirement of the Council’s reporting procedures. It covers the treasury activity for 2009/10 and confirms the actual Prudential Indicators for 2009/10 The 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. During 2009/10 the minimum reporting requirements were that the Council receive an annual treasury strategy in advance of the year and an annual report following the year describing the advance of the year and an annual report following the year describing the activity compared to the strategy (this report). In the future the Council will also receive a mid year treasury report following regulatory changes.

Executive Summary During 2009/10 the Council complied with its legislative and regulatory requirements. The actual prudential indicators for the year, with comparators, are as follows:

Actual Prudential Indicators 2008/09 2009/10 Actual Capital Expenditure (£000) 11,842.0 6,888.7 Capital Financing Requirement Non-HRA 13,495.6 13,481.6 HRA 6,613.6 7,357.8 Total 20,109.2 20,839.4 Financing Costs as a proportion of Net Revenue Stream: General Fund -6.9% 4.36% Housing Revenue Account -0.3% -3.74%

The Assistant Director (Resources) also confirms that borrowing was only undertaken for a capital purpose and the statutory borrowing limit, the Authorised Limit, was not breached: 2008/09 2009/10 Borrowing £000 £000 External Debt (maximum position) 21,762.1 25,867.0 Authorised Borrowing Limit 46,886.2 47,361.9

At 31 March 2010 the Council’s core investments with its fund managers were valued at £13,159,410 compared to £14,460,200 at 31 March 2009 (the closing book value was £13,130,334). A withdrawal of £1,500,000 was made in the year to fund the capital programme and the planned use of reserves. At 31 March 2010, the Council’s external debt stood at £20,500,000, no increase in debt outstanding has been made from March 2009.

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The financial year 2009/10 continued the challenging environment of the previous year, although the second half of the year did see the UK economy recovering, albeit weakly. The main implications of the exceptional circumstances have been deteriorating investment returns and continuing counterparty risk

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1. Introduction 1.1. This report summarises: • the capital activity for the year; • how this activity was financed; • the impact on the Council’s indebtedness for capital purposes; • the Council’s overall treasury position; • the reporting of the required prudential indicators; • a summary of interest rate movements in the year; • debt activity; and • investment activity.

2. The Council’s Capital Expenditure and Financing 2009/10 2.1. 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, revenue contributions etc) or • If insufficient financing is available, or a decision is taken not to apply capital resources, the expenditure will give rise to a borrowing need. 2.2. Part of the Council’s treasury activities is to address this borrowing need, either through borrowing from external bodies, or utilising temporary cash resources within the Council. The wider treasury activities also include managing the Council’s cash flows, its previous borrowing activities and the investment of surplus funds. These activities are structured to manage risk foremost, and then optimise performance. Wider information on the regulatory requirements is shown in Section 11. 2.3. The actual capital expenditure forms one of the required prudential indicators. The table below also shows how this was financed.

2008/09 2009/10 2009/10 Actual Original Actual £000 Estimate £000 £000 Non-HRA capital expenditure 4,186.8 4,437.2 4,534.1 HRA capital expenditure 7,655.2 2,881.0 2,534.6 Total capital expenditure 11,842.0 7,318.2 6,888.7 Resourced by: Capital receipts 602.2 187.5 233.2 Capital grants 1,318.8 3,438.2 2,383.5 Capital reserves 2,485.6 1,137.2 1,637.8 Revenue 2,388.0 1,997.1 1,890.1 Unfinanced capital expenditure 5,047.4 558.2 744.1 (additional need to borrow)

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3. The Council’s Overall Borrowing Need 3.1. The Council’s underlying need to borrow is called the Capital Financing Requirement (CFR). This figure is a gauge for the Council’s debt position. It represents 2009/10 and prior years’ net capital expenditure, which has not yet been paid for by revenue or other resources. 3.2. The Non-HRA element of the CFR is reduced each year by a statutory revenue charge (called the Minimum Revenue Provision - MRP). The total CFR can also be reduced by: • the application of additional capital resources (such as unapplied capital receipts); or • charging more than the statutory revenue charge (MRP) each year through a Voluntary Revenue Provision (VRP). With effect from 1 April 2008 the Communities & Local Government introduced new MRP Guidance which requires an MRP Policy to be approved by Members. This new policy was approved on 27 March 2008 when the Council took the opportunity to adopt its principles from 1 April 2007 and it is updated annually 3.3. The Council’s CFR for the year is shown below, and represents a key prudential indicator.

31 March 2009 31 March 2010 31 March 2010 Capital Financing Actual Original Actual Requirement (CFR) £000 Indicator £000 £000 Opening balance 15,076.2 20,109.2 20,109.2 Add: unfinanced capital 5,047.4 558.2 744.1 expenditure MRP (14.4) (13.9) (13.9) Closing balance 20,109.2 20,653.5 20,839.4

4. Treasury Position at 31 March 2010 4.1 Whilst the Council’s gauge of its underlying need to borrow is the CFR, the Section 151 Officer and the treasury function can manage the Council’s actual borrowing position by either: • borrowing to the CFR; or • choosing to utilise some temporary internal cash flow funds instead of borrowing (under-borrowing); or • borrowing for future increases in the CFR (borrowing in advance of need). 4.2 The figures in this report are based on the amounts borrowed and invested and so may differ from those in the final accounts by items such as accrued interest. 4.3 During 2009/10 the Assistant Director (Resources) managed the debt position to closely match the anticipated CFR at the year-end. The treasury position at the 31 March 2010 compared with the previous year was:

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31 March 2009 31 March 2010 Treasury position Principal Average Principal Average £000 Rate £000 Rate Fixed Interest Rate Debt 20,500.0 4.32% 20,500.0 4.32% Variable Interest Rate Debt 1,500.0 0.60% 3,050.0 0.52% Total Debt 22,000.0 4.32% 23,550.0 4.32% Fixed Interest Investments* 14,460.1 5.79% 13,159.4 Variable Interest Investments 1.5 0.50% Cash at Bank 1,702.5 - 977.4 - Total Investments (Book Value) 16,164.1 5.76% 14,136.8 Net borrowing position 5,835.9 9,413.2 * These core investments with the Council’s fund managers are valued at £13,159,400 on the Balance Sheet at 31 March 2009: as noted above, the valuation includes accrued interest of £59,060.

5 Prudential Indicators and Compliance Issues 5.1 Some of the prudential indicators provide either an overview or specific limits on treasury activity. These are shown below: 5.2 Net Borrowing and the CFR - In order to ensure that borrowing levels are prudent over the medium term the Council’s external borrowing, net of investments, must only be for a capital purpose. Net borrowing should not therefore, except in the short term, have exceeded the CFR for 2008/09 plus the expected changes to the CFR over 2009/10 and 2010/11. The table below highlights the Council’s net borrowing position against the CFR. The Council has complied with this prudential indicator.

31 March 2009 31 March 2010 31 March 2010 Actual Original Actual £000 Indicator £000 £000 Net borrowing position 5,835.9 7,240.0 9,413.2 CFR 20,109.2 20,109.2 20,839.4

5.3 The net borrowing position is well below the CFR due to the Council’s investments exceeding its borrowing. 5.4 The Authorised Limit - The Authorised Limit is the “Affordable Borrowing Limit” required by s3 of the Local Government Act 2003. The Council does not have the power to borrow above this level. The table below demonstrates that during 2009/10 the Council has maintained gross borrowing within its Authorised Limit. 5.5 The Operational Boundary – 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.

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5.6 Actual financing costs as a proportion of net revenue stream - This indicator identifies the trend in the cost of capital (borrowing and other long term obligation costs net of investment income) against the net revenue stream.

2009/10 Gross Borrowing & Borrowing Costs £000 Original Indicator - Authorised Limit 44,592.8 Maximum gross borrowing position 23,550.0 Original Indicator - Operational Boundary 30,200.0 Average gross borrowing position 21,500.0 Financing costs as a proportion of net revenue stream: 2.45% General Fund -3.41% Housing Revenue Account

6 Economic Background for 2010/11 6.1 2009/10 continued in the same way as the previous year for the economy with no future prospect of improvement in the financial markets for the forthcoming year. 6.2 The Official Bank Rate stayed at 0.50% throughout the year. Interest Rates (%) Bank Money Rates PWLB Rates End Qtr Rate 3mth 6mth 1yr 5yr 20yr 50yr 2009 Mar 0.50 1.8 2.0 2.2 2.6 3.8 4.4 Jun 0.50 1.2 1.4 1.6 3.0 4.4 4.5 Sep 0.50 0.5 0.7 1.1 2.9 4.1 4.3 Dec 0.50 0.6 0.8 1.2 3.1 4.5 4.5 2010 Mar 0.50 0.6 0.9 1.3 3.1 4.7 4.7

6.3 The UK economy entered a profound recession in 2008 and the prediction is that in 2010 short tern interest rates are expected to remain on hold for a considerable time. The recovery in the economy has commenced bit it will remain insipid. The Office for Budget Responsibility has presented a realistically downbeat view of the economy’s recovery prospects over the short and medium term, projecting that growth will struggle to exceed its trend rate in the current parliament. The Government’s determination to cut the size of the public sector deficit considerably more quickly than its predecessor will be a major drag upon activity in the medium term. 6.4 The Bank of England remains confident that inflation will dip below target by early 2011 as the economy benefits from high levels of spare capacity. Poor inflation performance remains a key risk to the future course of interest rates. Nevertheless, the combination of a favourable official view on this variable and the perceived need to counter the fiscal squeeze via accommodative monetary policy suggests that MPC will be prepared to hold rates at very low levels for some while yet. 6.5 The outlook for long term interest rates is a lot less favourable in the year ahead. Nevertheless, in the near term, the gilt –edged market has been a major beneficiary of the flight of investment funds to safe haven securities. The market has been underpinned by the new government steps to deal with the

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parlous state of public sector finances and the projected reduction in the funding burden that will have to be shouldered by the market. These two factors will restrict any deterioration in the gilt market performance in the near term. 6.6 The absence of the Bank of England as the largest buyer of gilts will shift the balance between supply and demand in the gilt edged market. Other investors will almost certainly require some incentive to continue buying government paper. This incentive will take the form of higher yields. The longer end of the curve will suffer from the lack of support from the major savings institutions- pension funds and insurance companies- who will continue to favour other investment instruments as a source of value and performance. 7 The Strategy Agreed for 2009/10 7.1 The strategy approved for 2009/10 expected that the Council would largely fund non HRA capital expenditure from its own resources but would be required to borrow £1m. No further borrowing was anticipated to fund the decency programme but there may have been a need to borrow up to £1.2m to finance general HRA capital expenditure.

8 Actual debt management activity during 2009/10 8.1 Borrowing – No extra loans were drawn from the Public Works Loans Board (PWLB) to finance any capital expenditure during 2009/10. this is mainly due to slippage in the capital programme and has been reflected in the 2010/11 Treasury Management Strategy.. 8.2 Rescheduling – No loans were rescheduled during the year. 8.3 Repayment – No long-term loans were repaid in the year.

9 Investment Position 9.1 Investment Policy – The Council’s investment policy is governed by ODPM (now CLG) Guidance, which has been implemented in the annual investment strategy approved by Council on 25th March 2009. The investment activity during the year conformed to the approved strategy, and the Council had no liquidity difficulties. 9.2 Resources – The Council’s longer-term cash balances comprise primarily revenue and capital resources, although these will be influenced by cash flow considerations. The Council’s core cash resources comprised as follows, and meet the expectations of the budget:

31 March 2009 31 March 2010 Balance Sheet Resources £000 £000 Balances 2,522 2,657 Earmarked reserves 6,699 4,239 Capital reserves 32 532 Usable capital receipts - - Total 9,253 7,428

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9.3 Investments Held by Fund Managers – The Council uses an external fund manager to invest part of its core investments and cash balances. The performance of the manager against the benchmark return was: Investments Held (simple average Return Fund Manager Benchmark* of book value) £000 Investec Asset 14,467,013 1.28% 0.37% Management * The 7-day compounded LIBID rate. The fund’s target return is 10% above this benchmark ie 0.50% 9.4 This compares with a budget assumption of average investment balances of £13.3m at 1.00 % investment return. Although its returns fell slightly below the target, compared to other managers Investec fared reasonably well in trying conditions by confining holdings to the money market enabled a return above benchmark to be achieved .The gilt-edged market was given a wide berth. The volatility of prices did mean that good opportunities to boost return via a tactical trading, would have constituted a high risk strategy in the current economic climate. Given Investec’s previous poor track record in this field, it would appear to be a wise decision. 9.5 Investments Held by The Council - The Council does not have the expertise or resources to actively use a wide range of investment products and therefore performance tends to be more stable but lower over the longer term than for professionally managed funds (whose performance may fluctuate more). The Council maintained an average balance of £5.4m and received an average return of 0.65%. The comparable performance indicator is the average 7-day LIBID rate, which was 0.368%. This compares with a budget assumption of £5.6 investment balances at 0.50% interest rate. The Economic Background for 2009/10 (Section 6) set out the continuing difficulties in economic conditions during this period. As a result of the deterioration, interest rates remained at historic lows impacting adversely on investment returns. Concerns over the security of financial institutions continued, resulting in a defensive investment position.

10 Performance Indicators for 2009/10 10.1 The service recorded the following performance: Rate Paragraph Performance Indicator (%) Reference Long-term borrowing: Average rate available in year 4.42 8.1

Investments held by Fund Manager: Average rate of return 1.28% 9.3 Target return (10% above 7 day LIBID rate) 0.46%

Investments held by the Council: Average rate of interest 0.65% 9.5 7 day LIBID rate 0.42%

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11 Regulatory Framework, Risk and Performance

11.1 The Council’s treasury management activities are regulated by a variety of professional codes and statutes and guidance:

• The Local Government Act 2003 (the Act), which provides the powers to borrow and invest as well as providing controls and limits on this activity;

• The Act permits the Secretary of State to set limits either on the Council or nationally on all local authorities restricting the amount of borrowing which may be undertaken (although no restrictions were made in 2009/10);

• Statutory Instrument (SI) 3146/2003, as amended, develops the controls and powers within the Act;

• The SI requires the Council to undertake any borrowing activity with regard to the CIPFA Prudential Code for Capital Finance in Local Authorities;

• The SI also requires the Council to operate the overall treasury function with regard to the CIPFA Code of Practice for Treasury Management in the Public Services;

• Under the Act the ODPM (now DCLG) has issued Investment Guidance to structure and regulate the Council’s investment activities.

• Under section 238(2) of the Local Government and Public Involvement in Health Act 2007 the Secretary of State has taken powers to issue guidance on accounting practices. Guidance on Minimum Revenue Provision was issued under this section on 8th November 2007. 11.2 The Council has complied with all of the above relevant statutory and regulatory requirements, which limit the levels of risk associated with its treasury management activities. In particular its adoption and implementation of both the Prudential Code and the Code of Practice for Treasury Management means both that its capital expenditure is prudent, affordable and sustainable, and its treasury practices demonstrate a low risk approach. 11.3 The Council is aware of the risks of passive management of the treasury portfolio and, with the support of Butlers, the Council’s advisers, has proactively managed its treasury position. The Council has continued to utilise historically low borrowing costs and has complied with its internal and external procedural requirements. There is little risk of volatility of costs in the current debt portfolio as the interest rates are predominantly fixed, utilising long-term loans. 11.4 Shorter-term rates and likely future movements in these rates predominantly determine the Council’s investment return. These returns can therefore be volatile and, whilst the risk of loss of principal is minimised through the annual investment strategy, accurately forecasting future returns can be difficult.

July 2010 JML/A0710/A0731

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Item 9

Management Team 22nd July, 2010 Cabinet 11th August, 2010 Council 12th August, 2010

Corporate Financial Monitoring April - June 2010

Report of the Corporate Finance Manager & Strategic Finance Manager

81 1 CORPORATE FINANCIAL MONITORING April 2010 – June 2010

1. INTRODUCTION

This is the first quarterly corporate financial monitoring report for 2010/11 and sets out an indicative corporate picture of the Council’s financial performance during the period ending June 2010.

The report summarises budget variances in excess of £10,000 against the latest revised budget, with explanations provided by Budget Managers in conjunction with their Accountants. In addition, there are specific sections for salary monitoring, grants, capital expenditure and financing, investments and borrowing, reserves, Housing Revenue Account & revenue collection performance.

The Council’s restructure has required changes to the budgets, especially salary and recharge budgets with some costs moving out of the departmental budgets into service budgets & this has inevitably entailed additional work during this monitoring round. The structure of the Finance team has been reviewed to reflect the restructure, with accountants moving into their new responsibilities.

Final Account work has taken a high priority during the quarter with the Statement of Accounts being approved by Accounts Committee on 30th June 2010. Cabinet received reports on the Revenue & Capital Outturn earlier in June. Preparation work for the introduction of International Financial Reporting Standards (IFRS) continues with SLDC well advanced compared to most authorities. The staff team in the finance department continues to work towards improving the service we provide – recently the Integra financial information system was re-installed and went live on 1 April 2010 with many changes to the system resulting from user feed-back.

With the change in Government there have been a number of announcements of changes to grants and other funding. Where possible, the changes have been incorporated into this monitoring report, for example the cancellation of the free swimming programme and the freezing of the LABGI grant. The majority of the announcements of reductions in grant in the Emergency Budget were at a summary level and no detail will be known until the Comprehensive Spending Review in October.

2. GENERAL FUND REVENUE MONITORING

2.1 General Fund Summary Position

The current overall General Fund summary position shows that at the end of June there is a net underspend of £4,215k against the current profiled budget. Projections to the year-end have been included in this report at Appendix 1 and a £175k overspend is currently projected to the end of March 2011, mainly relating to the commercial waste service. An analysis of underspends against profiles by Assistant Director area is included in section 2.2. A full analysis of the variations, with commentary where available, is shown in Appendix 1.

2.2 Major Budget Variances

Appendix 1 details variances of +/- £10K in value (or 10%) and covers salary costs, premises, transport, supplies and services and general income. An overspend against variance is shown as a ‘+’ and an underspend as a ‘-‘ figure.

From 1 April 2010 the Council’s financial information system have been re-implemented. A number of changes took place at the same time, including reflecting the staffing restructure and summarising budgets by type of expenditure rather than at a more detailed level (for example the premises budget would previously have been split into rents, rates, electricity, gas, water etc but is now shown as one budget). Because of the quantity of changes to the budgets there has been a delay in agreeing the profiling of the budgets into each month with budget managers. This work is ongoing but has resulted in a number of significant variances in the revenue and capital budget monitoring statements which are due to incorrect profiles.

82 2 Full details of the summary variances (actuals against profiled budget) shown in the table are provided at Appendix 1. The Council’s contingency budget is £130,000 for 2010/11. No supplementary revenue estimates have been approved for 2010/11 so the full contingency is available to meet the net overspend of £175,300 if it cannot be mitigated by savings elsewhere. This would leave a net overspend of £45,300 to be met by a reduction in the General Fund working balance if savings cannot be found elsewhere.

Current Current Projected SUMMARY BY SERVICE Variance variance over/(under) £000 % £000 REPORTED VARIANCES : Community Investment & -151.0 -35% 0 Development Community Services -1,065.6 -83% 197.3 Corporate Vision -84.2 -39% -22.0 Customer Focus -2,973.6 -442% 0 Resources -187.3 -28% 0 Social Enterprise -116.6 -36% 0 Management Team 24.5 23% 0

TOTAL NET VARIANCE -4,215.7 -116% 175.3 Previous Qtr1 2009/10 +239 45%

2.3 General Fund Employee Monitoring

Employee costs are included in the variances reported at Appendix 1, however more detail has been included in this section of the report since salaries are a significant element of the Council’s costs. The salary budgets are net of the allowance of 2.5% for vacancy savings and allow for a pay award of 1% for 2010/11. This table also includes non-salary costs such as training, professional fees and contract staff. There is an overall underspending on employee costs of £318k as at the end of June 2010, which is around 2.3% against the £13.6 million budget and includes: • £30k for the pay award which has not been agreed • £24k for training costs where the budget profile requires adjustment and • £83k of pension contributions due to be paid to Cumbria County Council. Following the restructure there were a number of vacant posts, the majority of which have now been filled.

Actual Diff. Diff. Budget SERVICE Year to Year to Year to Full Year Date Date Date £000 £000 £000 % Community Investment & Development 1,993 470 -28 -5.6% Community Services 4,407 1,039 -63 -5.7% Corporate Vision 574 133 -10 -6.9% Customer Focus 2,071 503 -15 -2.8% Resources 2,007 331 -171 -34.1% Social Enterprise 2,160 495 -45 -8.3% Management Team 404 115 14 -13.8% Total 13,616 3,086 -318 -9.3% Qtr1 2009/10 position 13,506 3,223 -206

2.4 Grants Received and Paid

The Government has announced a number of grants will be abolished or frozen for 2010/11. For this Council this includes LABGI grant, Housing & Planning Delivery Grant and the Free Swimming Grant. Further announcements are expected in October as part of the Government’s spending review of the impact on future year’s budgets.

83 3 The full year budget for grants receivable is £2,027.8k (not including NNDR, Rent Rebate, Local Housing Allowance and Discretionary Housing Benefits Rent Allowance grants); grants actually received up to and including June 2010 totalled £1,093.7k (53% of the full year budget) and are summarised in the table below:

Source of Grant Budget Actuals to 2010/11 30.06.10 £000 £000 Other Government Grants – various N/a N/a Other Government Grants – RSG 876.9 504.2 Other Government Grants - Storms 0 0 Disabled Facilities Grants 174.0 344.0 Lottery Funding 0 0 Concessionary Fares 929.5 232.6 Area Based Grant 28.8 12.9 LABGI Grant 18.6 0 TOTAL 2,027.8 1,093.7

Revenue grants paid to other organisations totalled £68.8k by the end of June 2010 against a full year budget of £263k.

Grant description Budget Actuals to 2010/11 30.6.10 £000 £000 Grants to Charitable Organisations 14.2 14.2 Contributions to Organisations 106.0 49.6 Subscriptions to Organisations 36.3 5.0 Regular Funded Organisations 106.5 0 TOTAL 263.0 68.8

3 General Fund Capital Programme

3.1 Capital Expenditure & Financing

Capital Expenditure

Table 1 below shows the latest approved capital programme (approved February 2010) and expenditure (excluding commitments) to the end of June 2010. Table 2 shows budgets, expenditure and balance of the budget to spend split out across the Assistant Director areas.

To date overall spend on the capital programme is -£443.5k (-5%) leaving a total of £9,272k (105%) still to be spent from the approved capital programme. This “negative spend” occurs where works were carried out in 2009/10 but have not yet been paid for. Depending on the type of contract there may be several months between works being undertaken and payment being made. Council on 12th August will be asked to approve carry forward requests of £2,674k which will increase the underspend to date.

A meeting of the Capital Monitoring Working Group will be organized to investigate the project variances in more detail and to update the forecast spend for the year.

Table 1 £000 Current Programme 12,203 Add carry forward requests from 2,674 2009/10 Less Programmed slippage -3,375 TOTAL PROGRAMMED SPEND 11,502 Spend to Date -443 Balance to spend 11,945 84 4 Table 2 Budget for Carry-forward Spent Balance of 2010/11 request from To 30.6.10 full year 2009/10 budget £’000 £’000 £’000 £’000 Community Investment & 6,604.9 1,713.0 -327.6 8,645.5 Development Community Services 4,186.5 589.2 -120.0 4,895.7 Corporate Vision 149.3 274.2 -27.0 450.5 Customer Focus 285.0 42.4 26.6 300.8 Resources 95.7 28.4 0.0 124.1 Social Enterprise 780.0 27.0 4.5 802.5 Community Allocation 102.0 0.0 0.0 102.0 Sub-total 12,203.4 2,674.2 -443.5 15,321.1 Programmed slippage -3,374.9 0.0 0.0 -3,374.9 Totals 8,828.5 2,674.2 -443.5 11,946.2

Capital Receipts

The Capital Programme approved in February 2010 assumes that the Council will generate £212.5k of usable capital receipts from asset sales in the 2010/11 year. For the first three months of the year, capital receipts have totalled £95k. There has been one Right to Buy sales in the first quarters of the year with net receipts of £75k before payment of 75% to the Housing Capital Receipts pool which will reduce the usable receipts to £39k.

4 INVESTMENTS AND BORROWING

4.1 Core Investments

The Council’s fund managed by Investec Asset management had a market value of £13,159k at the 1st April 2010. The fund has risen in value to £13,172k at 30th June 2010, an increase in value of £13k. This represents a performance indicator of 0.1% compared with the 7 day LIBID rate of 0.12%. The fund’s objective is to produce a rate of return that exceeds the 7-day LIBID rate by 10%. Although the managers return is below the target, with the volatility of the financial sector the external fund manager has better analysis of counterparty risk and is more able to manage risk, particularly by spreading the investments, than could be managed in-house at present.

4.2 Temporary Investments

Temporary Investments in the period April to June 2010 realised interest of £3309, compared with £7,308k for the same period in 2009. The average interest achieved during April to September 2010 has been 0.xx%. The Council’s priority is always security of investment before yield. The Medium Term Financial forecast does not predict any rise in base rate until late 2010; at the time of writing this report, no rise has yet been announced. It currently looks unlikely that the Council will generate the budgeted £65,600 from temporary investments for 2010/11.

4.3 Borrowing

The Treasury Management Strategy for 2010/11 anticipates borrowing £1m to fund non-HRA capital expenditure – the Council currently only has HRA borrowing. The current total loan borrowed from PWLB to fund the Decency programme stands at £20.5m, incurring an average interest rate of 4.33%. These borrowing costs are met by Government subsidy.

4.4 Prudential Indicators

Monitoring of the indicators shows that they are all within their limits. Most importantly, the outstanding borrowing at 30th June of £21m is comfortably below the £32m operational and £49m authorised limits. The operational limit is the expected maximum debt position for the year while the authorised limit beyond which further external borrowing is prohibited. Both of these limits were set by Council in March 2010. 85 5

5 RESERVES

Closure of the 2009/10 accounts left the Council with total reserves of £5.6m, a reduction of £2.4m from the previous year, mainly due to increased support from reserves to the capital programme and the initial costs of the restructure. Total reserve balances are expected to reduce further to £4.0m by the end of the current financial year. • The General Reserve stands at £2.4m and will be used to mitigate the potential risk of increased expenditure in future years and to fund the remaining one-off implementation costs of the management re-structure. • The LABGI Reserve was set up at the end of 2007/08 and is being used to fund corporate initiatives, with a preference for economic regeneration, the latest revenue estimates allow for the receipt of only £18.6k LABGI funding for the 2010/11 year but the Government have announced a freeze on this grant so the planned contribution has been reduced accordingly. All but £65,400 of the LABGI reserve has been allocated to schemes. • The Planning Delivery Fund has been set up in 2009/10 for Housing and Planning Delivery Grant which is being ear-marked by the Council for housing and planning activities but was not spent in 2009/10. It is anticipated this reserve will be fully spent in 2011/12. • The use of the General Fund working balance reflects the predicted overspend from section 2.2 above.

Planned Predicted Balance 1 Predicted Use Reserve: Contribution Balance 31 April 2010 2010/11 2010/11 March 2011 £000 £000 £000 £000

General Reserve 2,423.4 184.0 -1,201.9 1,405.5 LABGI Reserve 451.6 0.0 -117.7 333.9 GF Major Repairs Reserve 483.6 100.0 -151.0 432.6 IT Replacement Reserve 156.9 50.0 -102.0 104.9 Economic Development Fund 51.4 0.0 -27.4 24.0 Vehicle & Plant Replacement 37.3 0.0 0.0 37.3 Fund Planning Delivery Fund 127.0 0.0 0.0 127.0 Total General Reserves 3,731.2 334.0 -1,600.0 2,465.2 Fund of Revenue Monies for 221.7 100.0 -271.8 49.9 Capital Purposes Second Homes Income 87.2 833.3 -900.5 20.0 Reserve Total Capital Reserves 308.9 933.3 -1,172.3 69.9 Kendal Employment 102.4 0.0 -62.4 40.0 Development Fund Building Control Income 95.2 0.0 -20.0 75.2 Reserve Total Earmarked Reserves 197.6 0.0 -82.4 115.2 General Fund Working 1,339.9 91.1 -45.3 1,385.7 Balance Total 5,577.6 1,358.4 -2,900.0 4,036.0

7 HOUSING REVENUE ACCOUNT (HRA) MONITORING

7.1 HRA Revenue Position

At the end of June 2010 the Housing Revenue Account is largely running in line with the budget predictions. There are three areas of slippage from 2009/10: • the stock option study £130k • support services costs £40k • repairs & maintenance costs £250k

86 6 This slippage is offset by the increased working balance brought forward from 2009/10. It is currently predicted that the year-end working balance will be £755,000 compared to the original estimate of £636,000, mainly due to underspendings in 2009/10.

One Council House has been sold to date in 2010/11.

Actual Diff. Budget Projected Year to Year to over/(under) Full Year Date Date by Year End £000 £000 £000 £000 Capital Charges 311 0 0 0 Housing Subsidy Payable 3,395 680 -169 0 Contingency 50 0 0 0 Income -11,316 -61 -51 0 Increased Bad Debt Provision 10 17 7 7 Repairs & Maintenance 4,407 1,204 101 250 Supervision & Management – General 3,031 656 -34 170 Supervision & Management – 130 197 -7 0 Sheltered Housing Supervision & Management – Special 102 50 -42 0 Deficit / (Surplus) for Year 122 2,726 -202 427

Balance B/fwd -758 -1,304 -546 -546 Deficit / (Surplus) for Year 122 372 250 427 Balance C/fwd -636 -932 -296 -119

7.2 Council House Rent Collection

Net rents collected to the end of June 2010 (week 12) were £2.7m, slightly above the budget for the year to date. Net rent arrears at 30th June 2010 were £334k or 10% of rents collectable to date. Write- offs to date are £17,713, higher than the budget of £10,000. This is reflected in the predicted outturn above.

7.3 Council Housing Capital Programme

This section analyses actual spend against the Council Housing elements of the Capital Programme for the period ended 30th June 2010. The spend figures do not include commitments as at the period end date. A total of 12% of the approved expenditure (50% of profiled expenditure) has been expended by the end of June 2010. Many of the schemes and programmes show negative spend to date – this is where invoices are due for works completed by 31 March 2010. With capital schemes, it is normal to retain a portion of the payments until the scheme is completed and formally signed off.

South Lakes Housing provides information on the progress of projects and monitoring is effected via the Capital Monitoring Working Group.

Latest Latest Spend to Approved Profiled Date programme Budget £000 (includes £000 c/fs) £000 SLH Projects (HRA General) 26 6 23 Aids & Adaptations 290 72 -25 Other Major repairs/Play areas 1,819 454 398 Decency Improvement Works 0 0 -104 Sustainability 0 0 -17

87 7 Admin & Technical Support 62 15 0 TOTALS 2,197 547 275

8 REVENUE COLLECTION PERFORMANCE

8.1 Council Tax, Business Rates & Collection Fund

This section analyses the Council Tax and Business Rate collection statistics for the current financial year compared to the previous year.

The Collection figures at 30th June 2010 for Council Tax are almost identical to those achieved at this point in the previous financial year & the Business Rates figure is marginally up.

Percentage Collected 2009/10 2010/11 at 30th June % %

Council Tax 30.88 30.89

Business Rates 32.52 33.00

8.2 Sundry Debts

This section sets out the latest position on the level of outstanding sundry debts.

With the re-implementation of the Integra finance system the opportunity has been taken to re-classify the departmental groupings within the system to reflect the new management structure.

A large number of invoices have been input during this period due to the introduction of car park permit payments by monthly direct debit and a large number of annual bills that are produced in April and are paid by monthly instalments.

No write-offs have been processed for the period April to June 2010 but approval has been granted to write-off £10,911.

As at 30th June 2010 Less than 30 1 to 6 months 6 to 12 1 to 2 years Over 2 years Total days months No: £ No: £ No: £ No: £ No: £ £ Social Enterprise 27 59.3k 657 252.5k 27 15.4k 51 16.6k 31 9.8k 353.6k Resources 18 69.0k 126 15.5k 22 5.8k 34 2.9k 32 12.8k 106k Customer Focus 3 113.6k 3 0.7k 8 2.5k 2 0.2 63 56.4 173.4k Corporate Vision - - - - 1 30k - - - - 30k Community Services 353 568.8k 75 22.4k 39 11.5k 9 3.7k 2 0.5k 606.9k Community Investment & 84 59k 33 145.2k 13 5.2k 3 2.6k 6 3.6k 215.6k Development South Lakes Housing 33 20.2 3 5.3k 3 3.1k 18 8.8k 10 8.7k 46.1k

TOTALS 518 889.9k 897 441.6k 113 73.5k 117 34.8k 144 91.8k 1,531.6k Qtr1 0910 Position 1354 872.1k 649 259.6k 86 23.5k 106 48.5k 144 81.7k 1,285.4k

This report has been compiled by the Strategic Finance Manager (in the absence of the Corporate Finance Manager) based on information received from a large number of officers throughout the Council. I would like to thank everyone for his or her contributions and assistance in the production of this report.

88 8 SOUTH LAKELAND DISTRICT COUNCIL - Revenue Budget Monitoring to end June 2010 (Quarter 1, 2010/11) Appendix 1

Variance to date Variance Over / Full Year Actual Budget (Budget to against (Under)spend Explanation of Variances Budget to Date to date date -v- Budget to date projected Actual) £ £ £ £ % £ Community Investment & Development CID) EUR AD Community Inv and Dev 0 219,775 216,873 -2,902 -1% GBC Building Control 209,070 -13,032 -37,311 -24,279 186% GCB Citizens Advice Bureaux 73,900 18,475 73,900 55,425 300% GCV Conservation Environment 79,550 15,307 11,219 -4,088 -27% GDC Development Control 363,270 -17,906 18,744 36,650 -205% GDS Dangerous Structures 91,740 14,762 0 -14,762 -100% GED Economic Development 451,680 48,475 44,188 -4,287 -9% GEN Enabling Role 230,370 -42,719 21,377 64,096 -150% GEV Events 115,880 2,751 7,363 4,612 168% GGV Grants To Voluntary Orgs 313,960 69,440 69,438 -2 0% GLC Local Land Charges -9,770 -25,401 -45,937 -20,536 81% GLP Local Plans 454,970 63,266 -37,393 -100,659 -159% GMI Market Towns Initiative 68,310 2,427 4,970 2,543 105% GMP Market Towns Projects 21,100 0 0 0 0% David David Sykes

COMMUNITIES GMU Museum 470,130 104,797 51,495 -53,302 -51% GPB Publications Promotions 82,570 5,900 6,148 248 4% GPJ Town Centre Projects 41,780 1,008 5,599 4,591 455% GRM Kendal regeneration Managr 40,620 10,155 -19 -10,174 -100% GRP Kendal Regeneration 240 -98,750 -32,078 66,672 -68% GSH Second Home Discounts 237,700 47,676 -90,000 -137,676 -289% GTM Town Centre Management 33,010 3,161 -4,380 -7,541 -239% GTN Transport Policy Planning 15,960 0 0 0 0% GTP Tourism Promotion 54,340 302 -5,385 -5,687 -1883% -35% in overall terms, by the year end the AD (CID) will Total CID 3,440,380 429,869 278,811 -151,058 0 be on target with his budgets although there may be virement within his services.

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Variance to date Variance Over / Full Year Actual Budget (Budget to against (Under)spend Explanation of Variances Budget to Date to date date -v- Budget to date projected Actual) £ £ £ £ % £ Community Services ECS Asst Dir Community Service 0 20,762 0 -20,762 -100% 0 EUN Community Services 10,960 329,632 279,905 -49,727 -15% Budget profile needs amending & staff vacancies GCL Community Leisure 60,620 5,683 -6,308 -11,991 -211% 0 Budget profile needs amending GCM Cemeteries 162,610 30,852 -2,009 -32,861 -107% Some exp gravedigging o/s. Customer receipts -4,300 higher budgeted GCP Coast Protection 19,200 3,777 2,465 -1,312 -35% GCZ Contaminated Land 38,720 8,520 9,487 967 11% GDY SLDC Depots 0 37,677 49,903 12,226 32% 0 Budget profile needs amending GFD Food Safety 295,550 9,163 7,871 -1,292 -14% GFW Flood Warning 29,230 2,597 1,520 -1,077 -41% GHG Gen Fund Contrib to HRA 259,810 64,750 0 -64,750 -100% To be moved to AD(CID) GHL Town View Fields Hostel 76,960 12,144 83,937 71,793 591% 0 Budget profiles need amending GHM Homelessness 255,800 49,713 6,065 -43,648 -88% Profile on income needs amending. Employee 19,600 expenditure above budget. Likely overspend GHN Housing Renewal Grants 1,454,630 -68,810 13,053 81,863 -119% Budget profiles need amending GHP Noise Air Water Pollution 296,610 43,906 25,005 -18,901 -43% GHS Health Safety 111,540 17,690 18,387 697 4% GHT Housing Standards 109,740 24,305 -1,688 -25,993 -107% GHV Housing Advice 25,000 3,898 1,604 -2,294 -59% GLD Land Drainage 83,825 -7,960 13,834 21,794 -274% Profiling needs amending GLE Leisure Centres 1,197,160 277,958 234,350 -43,608 -16% Premises profiling needs amending GLT Lighting 6,480 0 0 0 0% GMA Hackney Carriage Licences 0 -12,162 -11,048 1,114 -9% GMC Miscellaneous Licences 25,670 -725 -94 631 -87% Simon Simon Rowley GMD Licensing Act -65,900 -44,045 -18,219 25,827 -59% Income profile needs amending COMMUNITIES GME Gambling Licensing 6,530 -4,550 -1,530 3,020 -66% GOT Environmental Health Other 14,680 1,575 401 -1,174 -75% GPK Parks 555,738 111,496 63,847 -47,649 -43% Invoices disputed GPL Planned Maintenance 7,000 1,750 0 -1,750 -100% GRG Recreation Grounds 235,910 14,145 24,607 10,462 74% 0 Grant Income outstanding GSN Street Furniture 31,370 3,448 2,981 -467 -14% GTG Street Cleansing Client 1,451,590 346,985 20,144 -326,841 -94% Miscoding between contractor and service budgets GWC Waste Coll Disposal Client 1,251,210 272,418 25,073 -247,345 -91% Commercial Waste no budget included for 182,000 2010/11. Service unlikely to be sold until 2011/12.

GWF Dog Control 56,805 11,925 5,631 -6,294 -53%

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Variance to date Variance Over / Full Year Actual Budget (Budget to against (Under)spend Explanation of Variances Budget to Date to date date -v- Budget to date projected Actual) £ £ £ £ % £ GWK Kerbside Recycling Client 1,748,740 304,301 136,823 -167,478 -55% Miscoding between contractor and service budgets GWR Waste Recycling 232,960 20,658 -257 -20,915 -101% Profile need altering. Credits received in arrears. GWS Water Supply and Pollution 76,230 6,171 -707 -6,878 -111%

Total Community Services 10,122,978 1,899,647 985,034 -914,613 -48% 197,300

TOTAL COMMUNITIES 13,563,358 2,329,516 1,263,845 -1,065,671 -83% 197,300

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Variance to date Variance Over / Full Year Actual Budget (Budget to against (Under)spend Explanation of Variances Budget to Date to date date -v- Budget to date projected Actual) £ £ £ £ % £ Corporate Vision EXS Corporate Vision -50,000 168,368 138,573 -29,795 -18% -22,000 Profiles need altering & vacant AD post EXT Transformation and Change -22,800 9,000 1,350 -7,650 -85% GCD Partnerships and 213,220 15,504 11,106 -4,398 -28% Communities GEM Emergency Planning 104,100 6,783 781 -6,002 -88% GES Eden SLDC Shared Services 50,000 12,500 0 -12,500 -100% Profile needs amending Vacant GMY Safer Stronger 71,850 0 0 0 0% GOP Older People Programme 0 0 -20,897 -20,897 -2089651% Profiles need altering. Some budget to be c/fwd 0 from 09/10 GPR Consultation 165,110 3,000 0 -3,000 -100% Total Corporate Vision 531,480 215,155 130,914 -84,241 -39% -22,000

Customer Focus ECF Asst Dir Customer Focus 0 17,632 17,915 283 2% ERB Revenues and Benefits 0 450,825 351,113 -99,712 -22% ERI Information Services 0 245,670 330,005 84,335 34% Profiles need amending for annual payment in advance for maintenance contracts GBN Council Tax Benefits 49,780 -71,513 -1,445,578 -1,374,065 1921% Profile needs amending for expenditure

CUSTOMERS transferred at year-end GBT Housing Bens Local Scheme 15,890 3,577 0 -3,577 -100%

GCC Corporate Communications 197,991 32,443 21,546 -10,897 -34% GCY Concessionary Fares 774,790 185,425 118,310 -67,116 -36% GFN NNDR Cost of Collection -12,700 -75,237 1,626 76,863 -102%

Simon Simon McVey GFT Council Tax Cost Collect 423,550 -27,240 6,857 34,097 -125% GHX Rent Rebates 111,530 -26,453 -1,510,133 -1,483,680 5609% Profile needs amending for expenditure transferred at year-end GRA Rent Allowances 49,900 -76,213 -192,271 -116,058 152% GRB Discretionary Housing Bens 2,620 0 0 0 0% GRD Discretionary Rate Relief 62,150 14,125 0 -14,125 -100% Total Customer Focus 1,675,501 673,041 -2,300,610 -2,973,651 -442% 0

TOTAL CUSTOMERS 2,206,981 888,196 -2,169,696 -3,057,892 -344% -22,000

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Variance to date Variance Over / Full Year Actual Budget (Budget to against (Under)spend Explanation of Variances Budget to Date to date date -v- Budget to date projected Actual) £ £ £ £ % £ Monitoring Officer

Resources ECH Human Resources 25,000 129,357 121,421 -7,936 -6% ECL Legal 0 125,302 112,661 -12,641 -10% EFS Financial Services 30,000 144,799 150,995 6,196 4% ERA Internal Audit 0 19,785 0 -19,785 -100% Profile needs amending ERE Asst Dir Resources 0 21,503 20,902 -601 -3% GCA Corporate Administration 569,450 -24,117 1,833 25,950 -108% Profile needs amending GCX Corporate Management 44,630 0 0 0 0% GEL Elections 152,760 29,802 5,009 -24,793 -83% GER Electoral Registration 133,300 26,744 32,737 5,993 22% GFC Contingency Provision 130,000 32,500 0 -32,500 -100% GFI Corporate Finance 59,240 750 -926 -1,676 -223% GFS Unapportionable PensionAdj 288,860 72,215 2,096 -70,119 -97% GGT Subscriptions Grants 23,600 5,900 3,764 -2,136 -36%

Shelagh McGregor Shelagh GMM Members 615,830 91,364 73,262 -18,102 -20%

MONITORING OFFICER GSE District Special Expenses 44,240 10,715 19,921 9,206 86% -61,692 -1097% Timing - invoices expected in April not yet GTH Other Items 22,500 5,625 -56,067 0 received GTV Bank Charges 125,300 -4,345 10,341 14,686 -338% 0 Profile needs amending GTW Audit and Inspection 176,805 -10,550 -7,093 3,457 -33% GVR Chairmn Allow Civic Hosp 12,740 3,185 2,339 -846 -27% Total Resources 2,454,255 680,534 493,195 -187,339 -28% 0

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Variance to date Variance Over / Full Year Actual Budget (Budget to against (Under)spend Explanation of Variances Budget to Date to date date -v- Budget to date projected Actual) £ £ £ £ % £ Social Enterprise ECC Social Enterprise Admin 168,277 187,318 112,256 -75,062 -40% EPX Offices -16,900 92,308 21,742 -70,566 -76% Rates not correcly profiled ESE Asst Dir Social Enterprise -1,814 18,618 19,468 850 5% GCK Car Parks -2,160,592 -785,994 -376,356 409,638 -52% Miscoding of car park permits to Decriminalised Parking Enforcement & profiling issues GCN Conveniences 755,608 110,473 153,598 43,125 39% Income incorrectly profiled GCS Caravan Site -92,060 -23,928 16,604 40,532 -169% Rates not correcly profiled GGK Decriminalised Parking Enf 264,234 40,543 -116,966 -157,509 -388% Miscoding of car park permits should be Car Parks GLW Lake Windermere -403,652 -134,413 -323,130 -188,717 140% Profiling of income needs adjusting to reflect majority of income at start of year GMK Markets -13,977 -13,435 -30,979 -17,544 131%

Michael Keane GPH Public Halls 451,389 62,542 174,344 111,802 179% Rates not correcly profiled GSY Sundry Properties 249,066 -10,104 -37,002 -26,898 266% Accrual of £10,000 relating to Castle Dairy where

MONITORING OFFICER expenditure occurred in 2009/10 by invoice not yet received. GTC Tourist Info Centres 553,792 89,953 109,943 19,990 22% GTF Town Centre Facilities 104,360 17,537 9,602 -7,935 -45% GUL Industrial Units Landlord 30,420 -9,335 -19,178 -9,843 105% GUT Indust Units Tenants 5,900 1,475 326 -1,149 -78% Total Social Enterprise -105,949 -356,442 -285,729 70,713 20% 0

TOTAL MONITORING OFFICER 2,348,306 324,092 207,466 -116,626 -36% 0

Management Team

Management Team EXC Management Team 0 104,860 129,365 24,505 23% Total Management Team 0 104,860 129,365 24,505 23%

TOTAL MANAGEMENT TEAM 0 104,860 129,365 24,505 23% MANAGEMENT MANAGEMENT TEAM

TOTAL REVENUE 18,118,645 3,646,664 -569,019 -4,215,683 -116% 175,300

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6 30/07/10 PART I Agenda Item No: 10

South Lakeland District Council Council Meeting Date: 12 August 10 Report Author: Lucy Reynolds Portfolio: Peter Thornton, Housing and Development Report from: Corporate Director (Communities) Wards affected: All Key Decision: PD/10/001/H&D Forward Plan: 1 August to 30 November 2010 Choice Based Lettings: Allocation Policy 1.0 PURPOSE OF REPORT 1.1 This report seeks approval for the final version of the allocation policy for the new county-wide Choice Based Lettings (CBL) scheme which will replace SLDC’s current housing allocation policy. Council approved the CBL scheme in principle on 25 May 2010. The scheme will deliver more choice and a single allocation system for people seeking homes with housing organisations across Cumbria. 2.0 RECOMMENDATIONS It is recommended that Council (1) Approves the new allocation policy for the Cumbria Choice Based Lettings system and the local lettings policy which would apply to South Lakeland and adopts it as part of the Council’s Policy Framework. 3.0 BACKGROUND 3.1 On 25 May 2010 Council discussed Choice Based Lettings and gave approval in principle to the new allocation policy to become part of the Council policy framework. Members are referred to the report for the meeting on 25 May for a description of the way CBL works. The Cumbria Choice Based Partnership has now produced the final version of the allocation policy which includes amendments made based on the outcomes of consultation and advice from the Partnership’s consultant on legal aspects of the policy.

95 4.0 RESEARCH AND CONSULTATION 4.1 The policy for the scheme has been produced through joint working between all the members of the partnership and close involvement of other stakeholders. Stakeholders consulted included tenants, housing support organisations in the third sector, Probation, Social Services and Parish Councils. 4.2 During the consultation period the draft policy was considered and given in principle support by SLDC Overview and Scrutiny (Communities) Committee and in principle approval by Cabinet. In addition a number of open consultation events have been held at locations throughout the county both in developing the policy and in the course of the statutory consultation period between February and the end of April. 4.3 The Partnership has also considered advice from Communities and Local Government and from an advisor with wide ranging experience of allocation policies across the country. 5. PROPOSAL 5.1 The Partnership has sought to ensure that the policy meets Councils’ obligations under s167 of the Housing Act 1996 and related statutory guidance. This must include giving “reasonable preference” to certain vulnerable groups in the allocation scheme. 5.2 There have been a few minor changes to the policy previously considered by Cabinet and Council. However the main principles of providing applicants with choice and the use of a banding system used to prioritise applicants remains the same. The final banding system can be summarised as follows. • Households who are statutorily homeless or with very high needs to move because of urgent health or other welfare issues receive highest priority in Band A. • Bands B and C is for people who also have a housing need but where this is less urgent. These bands now include two levels of priority for people who are at some risk of losing their home but where intervention to assist in preventing homelessness can be offered to seek to ensure that the household does not become statutorily homeless. • Band D is for households who are in lower housing need. This could include for example people who are living in satisfactory private rented accommodation. The partnership has now taken the opportunity, endorsed by Fair and Flexible guidance, to give greater preference to households in this Band who are making a contribution to the community. This means that applicants who are employed, taking part in voluntary work or have a good tenancy record would receive preference over someone who could not demonstrate community contribution. • The revised allocation policy also now includes a Band E, the lowest priority band for those with reduced priority. This would include applicants who had a record of anti-social behaviour. Applicants who have financial resources which would allow them to purchase a property and those with no local connection to Cumbria would 5.4 The policy now includes greater detail about how the banding system complies with the legal requirement to give reasonable preference to certain groups and

96 on assessment process used to determine which band applicants will be placed in. Most of this detail is included in the new section 4 of the policy “Reasonable Preference Categories, Community Contribution and Reduced Preference” 5.6 The Cumbria Choice Policy deals with local connection in the following way: • In all cases someone with no local connection to Cumbria has lower priority than someone with a local connection to Cumbria. • In the case of properties which already have s106 restrictions in place (most housing association homes in South Lakeland), these will continue to apply under choice based lettings. The restrictions will be stated when the property is advertised. • For Sheltered Housing, where Cumbria Supporting People policies do not allow local connection to take preference over need. Properties would be allocated to person with a local connection to Cumbria who applies for a home with the highest priority in the banding system. • For general needs housing, priority is given to an applicant from the district over an applicant from the same Band. However if an applicant from another part of Cumbria has a higher need they would be the successful applicant. This does not apply where an applicant has higher priority because they are statutorily homeless as their priority only applies in the district which accepted their homeless application. 5.7 An allocation policy can also include local lettings policies which enable individual authorities to deal with particular issues in their area including allocations in rural villages. It is therefore proposed to have a local lettings policy for South Lakeland, which is appended to this report. The Local Lettings Policy proposed covers villages with a population of fewer than 3000 and settlements with the National Parks. In these settlements people with a local connection to the locality (here defined as the area covered by the appropriate Local Area Partnership) would receive priority over people from elsewhere in South Lakeland or Cumbria, whatever their level of housing need. 5.8 Any local lettings policy put in place must be regularly reviewed to ensure that it is still appropriate. The policy for south Lakeland would be monitored and reviewed after 12 months of operation. 6.0 ALTERNATIVE OPTIONS 6.1 To recommend amendments to the CBL Allocation Policy or the local lettings policy. This is not recommended. The scheme has been produced after detailed consideration and consultation. Approval is required in order to ensure that CBL goes live across Cumbria early in 2011. 7.0 NEXT STEPS 7.1 Detailed work on the IT system for CBL will commence shortly. This is currently expected to result in the scheme going live early in 2011. In the coming months members of the partnership will also work on publicising CBL, re-registering existing applicants, encouraging new registrations and putting systems in place to ensure that more vulnerable or potentially disadvantaged applicants are supported in the transition to CBL.

97

8.0 IMPLICATIONS 8.1 Financial and Resources 8.1.1 The details of the allocation policy will have minimal impact on the cost of introducing Choice Based Lettings as the budget for the CBL project has already been agreed. However if there was a difficulty in agreeing the allocation policy by all members of the partnership this could make a delay in going live with CBL more likely. This could in turn lead to financial implications to members of the partnership as the budget is based upon the project completing by the end of 2010 and going live in January 2011. In case of this eventuality SLDC has identified £900 from an existing budget in order contribute its share of the continuation of the project to the end of March 2011. 8.1.2 The CBL Partners have considered good practice for running a countywide Choice Based Lettings scheme once the scheme goes lives and the post of the current project manager ends. It is intended to follow a model which uses a three tier system – a Board which monitors and sets strategic direction, a Project Group which develops new initiatives with advice from the Board and an operational group which deals with day to day technical issues. This will not have the cost implications of employing a county co-ordinator and will offer a strong structure for steering and developing the scheme into the future. 8.1.3 It is expected that CBL will assist homeless applicants in South Lakeland to find homes more quickly and this should continue to reduce spending on temporary accommodation. 8.2 Human Resources 8.2.1 There should be no implications for staffing costs to the Council. Staff at South Lakes Housing and housing associations operating in South Lakeland will be responsible for the majority of work associated with letting properties. However CBL does involve some implications for the work of the Council’s Homelessness and Housing Advice staff. The final policy includes a role for the Council’s homelessness staff in assessing applicants at risk of homelessness and assisting homeless applicants with the CBL system. It is also important that housing options advice is available to homeseekers who are less likely to be housed under CBL. 8.3 Legal The CBL Allocation Policy has been produced with full consideration of Local Authority and Housing Association legal responsibilities in relation to the allocation of housing including The Housing Act 1996, Homelessness Act 2002, Equality Acts and Human Rights Act. Following advice from the partnership’s consultant the draft policy was amended to ensure the policy followed best practice.

8.4 Social, Economic and Environmental Impact 8.4.1 Has a sustainability impact assessment been carried out? No This policy is not considered to have any significant economic and environmental impacts. The policy is considered to have positive impacts in

98 terms of social sustainability by increasing involvement of home seekers in choosing their home and thus achieving greater contentment with the neighbourhood where they will live. The Equality and Diversity impact assessment work described below will aim to ensure choice based lettings is inclusive and that all who wish can participate in choosing a home through CBL.

9.0 RISK ASSESSMENT Risk Consequence Controls required SLDC or another partner Delays to the introduction SLDC approve the CBL to Cumbria Choice does of CBL in Cumbria. Extra Allocation Policy in May not approve the expense to the in order to meet the Allocation Policy partnership through the timetable to go live with delay. Failure to meet CBL in early 2011. the government target to introduce CBL by 2010. CBL is not implemented An outdated Allocations As above. as planned and system which does not applicants are not given provide for customer the opportunity to choice will continue. exercise choice in applying for social housing.

10.0 EQUALITY AND DIVERSITY 10.1 The Cumbria Partnership is completing a written Equality Impact Assessment of both the Allocation Policy and the implementation of Choice Based Lettings. Contact has been made with relevant Cumbrian groups representing the 6 equality categories. Feedback from this has helped shaped the allocation policy. In addition a Accessibility policy for the scheme is in development to ensure equal access to the scheme and to particularly take into account the needs of people who may need more assistance in using the scheme. This will include for example ensuring housing officers know how to identify individuals who may need additional assistance and put in place appropriate support such as individual contact. Once CBL begins, regular monitoring of allocations will also take place to ensure equal access is being achieved and to respond to feedback about measures which could be taken to improve access to all. In addition the issue of rurality has been considered in South Lakeland has been considered and the proposed Local lettings policy produced.

11.0 LINKS TO THE CORPORATE PLAN AND PERFORMANCE INDICATORS 11.1 Links to Corporate Plan CBL will assist in achieving the aims ”Housing needs in South Lakeland are addressed” and that “People in South Lakeland feel more in control of their own lives”

99 The introduction of CBL also contributes to target 7 of the Corporate Plan “Deliver Cumbria Housing Strategy”. 12.0 CONCLUSION AND EXPECTED OUTCOMES 12.1 Approval of the CBL Allocation Policy will establish the framework for a single housing allocation system across Cumbria. Under the planned timetable homes will be let using new CBL allocation policy from January 2011. The allocation policy gives clearer preference to people in high housing need than the previous points based system operated by the Council. The policy balances this with the aim of preventing homelessness and offering encouragement to applicants making a community contribution and with good tenancy records. It also follows the Council’s planning approach by seeking to ensure local households are given preference for scarce homes in rural areas. 12.2 Applicants will be able to participate in choosing a home and will be able to see what homes are available and the priority of those who are successful in bidding for the homes. This will increase their understanding of the availability of social housing and help them to make informed choice about their housing options. 12.3 Once the initial CBL scheme is established the Cumbria partnership intend to follow the example of other existing schemes to continue to develop the scheme to potentially include other housing options including low cost home ownership and private sector rentals.

APPENDICES ATTACHED TO THIS REPORT Appendix No. 1 Allocation policy (final) for the Cumbria Choice CBL scheme. 2 Local Lettings Policy for South Lakeland. 3 Report to Council on CBL, 14 May 10.

CONTACT OFFICERS Lucy Reynolds, Senior Housing Strategy Officer, Development Strategy. Ext. 7439

BACKGROUND DOCUMENTS AVAILABLE Document: Fair and Flexible: statutory guidance on social housing allocations for local authorities in England Communities and Local Government, Dec 2009 http://www.communities.gov.uk/publications/housing/allocationsstatutoryguidanc e Code of Guidance on Choice Based Lettings, CLG, Aug 2008 http://www.communities.gov.uk/publications/housing/lettingscodeguidance Code of Guidance on the Allocation of Accommodation, ODPM, Nov 2002 http://www.communities.gov.uk/publications/housing/allocationaccommodationco de

100 TRACKING Assistant Portfolio Holder Solicitor to the CMT Scrutiny Director Council Committee 10 May 10 & 23 13 April 10 13 May 10 13 May 10 4 March 10 July & 23 July & 23 July Executive Committee Council Section 151 Monitoring (Cabinet) Officer Officer 14 April 10 NA 25 May & 12 13 May & 23 July 13 May 10 & 23 August July Human Resource Services Manager 23 July 10

Choice Based Lettings Allocation Policy APPENDIX 1 PURPOSE OF APPENDIX The purpose of this Appendix is to provide Members with a full copy of the allocation policy which will be adopted by the Cumbria CBL partnership and will replace SLDC’s current Housing Allocation Scheme from the implementation date of CBL which is expected to be in January 2011.

APPENDIX 2 PURPOSE OF APPENDIX This sets out the Local Lettings Policy which South Lakeland District Council intends to apply to some homes which become available in the South Lakeland area.

APPENDIX 3 PURPOSE OF APPENDIX To provide members with a copy of the previous report to Council on CBL which describes how CBL works.

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102 ITEM 10 - APPENDIX

Allocations Policy – June 2010

CONTENTS

Summary of the Scheme: Page 4

Section 1 Introduction and Background: Page 5 - 11

1.1 Members of the Cumbria Choice Based Letting Partnership 1.2 Policy statement 1.3 Aims of the scheme 1.4 Statement on choice 1.5 The Partnership 1.6 Equality and diversity 1.7 Accessibility 1.8 Monitoring 1.9 Information sharing, confidentiality and data protection

Section 2 The Common Housing Register: Page 12 - 18

2.1 Who can apply 2.2 How to apply 2.3 References 2.4 Police checks/information 2.5 Notification of registration 2.6 Changes in circumstances 2.7 Reviewing the register 2.8 Cancelling applications 2.9 Giving false information 2.10 Deliberate worsening of circumstances

1 103

Section 3 Assessing Housing Need: Page 19 - 28

3.1 Priority for housing 3.2 Waiting time – The ‘Effective’ Date 3.3 Management discretion 3.4 Homeless households 3.5 Households with a disability 3.6 Serious offenders 3.7 Exempt allocations

Section 4 Reasonable Preference Categories, Community Contribution and Reduced Preference: Page 29 - 43

4.1 Part VII – People who are Homeless 4.2 Households owed a Homeless Duty 4.3 People in unsanitary, overcrowded or unsatisfactory housing 4.4 Households with a Medical, Welfare, (including Disability) housing need. 4.5 Households needing to move on Hardship grounds 4.6 Economic and community contribution 4.7 Cumulative preference 4.8 Reduced preference

Section 5 How the Scheme Operates: Page 44 - 49

5.1 Advertising properties 5.2 Extra care properties 5.3 Sheltered housing 5.4 Quota system 5.5 Re-advertised properties 5.6 The ‘Bidding’ process 5.7 Proxy bids 5.8 Shortlisting 5.9 Local connection 5.10 Section 106s 5.11 The offer 5.12 Refusing and non replies to offers 5.13 Local lettings

2 104 5.14 Feedback on lettings

Section 6 The Review Process: Page 50 - 51

6.1 The Review process

Section 7 Appendices: Page 52 - 59

7.1 Appendix 1 – Definition of terms 7.2 Appendix 2 - Contact details for all partner organisations 7.3 Appendix 3 - Eligibility policy 7.4 Appendix 4 – List of supported housing schemes 7.5 Appendix 5 - Household type and property size

3 105 Summary of the Scheme

Cumbria Choice is a sub regional scheme for letting most of the social rented property in Cumbria. It is a partnership between the 6 Local Districts and 8 social housing providers.

It is managed through a web based computer system.

To be part of the scheme customers need to apply to the Common Housing Register. There is only one application form and customers will be placed on the register if they meet the eligibility criteria.

Priority for housing is awarded through a ‘Banding’ system that places people in one of five Bands according to their housing needs.

The majority of properties are advertised and customers are able to exercise choice by registering an interest in the property.

Customers are only able to express an interest in properties that meet their requirements. For example adapted property and some ground floor accommodation will be for customers with medical needs and/or for older persons.

At the end of the advertising period a shortlist is compiled, taking into account: the Band of the customer, the ‘effective’ date of the application, and any local connection.

Usual practice is that customers at the top of the shortlist are offered the property.

In certain situations exceptions to the policy will apply and these are detailed in the policy. These exceptions, which include ‘management discretion’ or ‘local lettings policies’ allow the individual partners to respond appropriately to certain individual housing need and to effectively manage their housing stock. All exceptions to the general policy will be recorded and monitored.

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Section 1 Introduction and Background

1.1 Members of the Cumbria Choice Based Letting Partnership

The following are members of the Cumbria Choice based letting partnership, called ‘The Cumbria Partnership’:

Allerdale Borough Council Barrow Borough Council Carlisle City Council Copeland Borough Council Eden District Council South Lakeland District Council

The six Councils have adopted this common Allocation Policy so that customers within the districts covered by the six Councils are assessed on the same basis and have the same access to apply for any social housing vacancies across that whole district.

The scheme applies not only to properties in the Councils’ own housing stock (i.e. those owned by any of the Councils if applicable) but also to all those properties to which any of the Councils have rights of nomination (whether by way of a legally enforceable arrangement or not) of the tenant. Properties to which the Councils have rights of nomination of the tenant include properties owned by the following Social Housing Providers:

Accent Housing Derwent & Solway Housing Eden Housing Home Group including Copeland Homes Impact Housing Riverside Housing South Lakes Housing Two Castles Housing

The participating Social Housing Providers listed above are obliged to advertise vacant properties in accordance with this policy. In addition all of the Social Housing providers listed above have adopted the Council’s allocation policy so that there is a common allocation policy ensuring that applicants within the Sub Region who apply to the Council or a participating Social Housing Provider are assessed on the same basis and have access to apply for any vacancies either within their district and to a percentage across the Sub Region.

The scheme formally applies to all properties to which Allerdale Borough Council, Barrow Borough Council, Carlisle City Council, Copeland Borough Council, Eden District Council and South Lakeland District Council have rights

5 107 of nomination (whether by way of a legally enforceable arrangement or not) of the tenant. Properties to which the Council have rights of nomination of the tenant include properties owned by Accent Housing, Derwent & Solway Housing, Eden Housing, Home Group including Copeland Homes, Impact Housing, Riverside and Two Castles Housing. The participating Social Housing Providers are obliged to advertise vacant properties in accordance with this policy. Separately, participating partner Social Housing Providers to the Cumbria scheme have voluntarily agreed to allocate the majority of their properties that are not subject to a formal nominations agreement under the joint policy agreed by the six Local Authorities.

To improve the service to customers and to avoid duplication a customer can apply to any of the participating housing organisations listed above. Where this organisation is not a Local Authority that organisation will be assessing the applicant under the Allocation Policy of the relevant Local Authority for that area and on behalf of that Local Authority. This will remove the need for a customer to be redirected back to the Council to register under the Council’s allocation scheme directly.

Any significant changes to this policy will need to be approved by the full Council for each participating Local Authority. The relevant decision-making bodies of the Social Housing Providers, namely the Board, will also need to consider and endorse any changes that the Local Authorities wish to make to the policy. Any changes will also be subject to consultation with relevant statutory and voluntary sector organisations and tenant representatives.

Contact details for all partners are listed in Appendix 2.

In developing this policy the partnership has referred to the following guidance and housing legislation:

• The Housing Act 1996 and the Homelessness Act 2002 • Office of the Deputy Prime Minister: Allocation of Accommodation - Code of Guidance For Local Housing Authorities. November 2002 • Department for Communities and Local Government: Allocation of Accommodation: Choice Based Lettings - Code of Guidance for Local Authorities 2008 • Department for Communities and Local Government: Fair and Flexible statutory guidance on social housing allocations for local authorities in England December 2009 • Department of Health: Housing Learning and Improvement Network – The impact of Choice Based Lettings on the access of vulnerable adults to social housing 2009 • Department for Communities and Local Government Circular 04/2009: Housing allocations – members of the armed forces • Audit Commission: Housing Inspectorate Key Lines of Enquiry – Allocations and Lettings • Homelessness Code of Guidance for Local Authorities 2006.

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Equality legislation and guidance

The partnership will ensure that its policy complies with the current equality legislation and with the relevant statutory codes and guidance.

An Equality Impact Assessment will be carried out on the policy and will be regularly reviewed.

1.2 Policy Statement

Cumbria Choice is the main route into social housing for the majority of people seeking such housing in Cumbria. This policy will aim to treat those applying to the scheme fairly; will be inclusive of all groups and the procedure will be transparent.

Cumbria Choice will provide greater choice for applicants but the demand for housing will continue to be greater than the supply. However through good quality feedback to customers the scheme will enable people to be clear about their prospects of being offered accommodation.

For people unlikely to be offered accommodation through the scheme there will be advice about alternative housing options. There will be information on the website and in written material on options such as; mutual exchanges, the private rented sector, low cost home ownership and shared ownership properties.

The partnership intends the allocation policy to have a positive effect on local communities by increasing tenant satisfaction with their housing, and by contributing to the development of stable communities. The partnership aims to provide a high quality service to its customers and intends to work together to continue to develop the scheme to find joint solutions to housing problems, including those of homelessness.

The partnership acknowledges that some customers applying to the scheme will not be eligible to register for housing due to previous unacceptable behaviour, such as anti-social behaviour. The policy aims to be open and transparent as to the reasons for exclusions and gives advice on the possible actions a customer can take to subsequently gain acceptance onto the register.

1.3 Aims of the Scheme

In developing this policy the Partnership has agreed the following aims:

To reduce the use of temporary accommodation for homeless applicants and to assist with prevention by making customers aware of their potential housing

7 109 choices and the alternative options available to them eg. private sector, low cost home ownership.

To increase the availability of move-on accommodation to prevent ‘blockages’ in supported housing schemes.

To ensure a lettings service that embraces equality and diversity by being open and fully accessible to all individuals and to provide support to more vulnerable customers where required.

To improve the means by which local people in Cumbria gain access to social rented housing by providing a modern and easy to understand allocation system which allows choice and is fair, transparent and accountable.

To encourage residents to access employment and to recognise residents who make a contribution to a local community.

To make the best use of the housing stock within the scheme.

To increase mobility by making available 10% of all properties to customers across Cumbria.

To attract new customers to areas of low demand and reduce void times on ‘hard to let’ properties.

1.4 Statement on Choice

The key underlying principle of the scheme is to give choice to customers who are looking to obtain housing in the social rented sector.

To ensure customers have choice the partnership will advertise the majority of its properties on a weekly basis through this scheme; property adverts will appear on its website and in newsletters available in the offices of all partner organisations and other appropriate sites to assist the public to access the scheme.

The Partnership will endeavour to ensure that property adverts are easy to read and will include information about the local area to allow customers to make the best informed choice about housing that is suitable for their needs.

It is the Cumbria Choice policy that wherever possible customers wanting social housing should be able to choose the property for which they wish to be considered. However there will be some instances, in exceptional circumstances where the only way to resolve a person’s housing situation is through the use of management discretion e.g. homeless households to whom there is a statutory duty to house; households at risk of violence. (See section 3.5: Management Discretion)

8 110 1.5 The Partnership

Cumbria Choice is managed by the Sub Regional Project Board which is governed by a ‘partnership agreement’. Its members consist of one senior officer representative from each organisation within the partnership and two tenant representatives. Each organisation has one vote within the partnership. Tenant representation has one vote within the partnership.

The Project Board will meet at least six times a year to oversee the running of the scheme and to monitor its compliance with local and national policy and guidance. The partnership will continue to monitor, fund, develop and make policy decisions about the scheme as appropriate.

1.6 Equality and Diversity

Cumbria Choice is committed to ensuring that its policy and procedures in the letting of property is non-discriminatory. This includes promoting equality of access to the service.

The Partnership is committed to assisting all customers to access the service, taking account of vulnerability or other specific needs, and also the needs of different ethnic groups.

To identify the needs of our customers the application form will have specific questions relating to vulnerability, ethnic origin, sexual orientation, disabilities etc. This information will be used to monitor the impact of the policy on minority and specific needs groups and to make such amendments as may be required to ensure no group is disadvantaged by the policy.

1.7 Accessibility

The partnership recognises that a choice based letting scheme requires active participation by the customer which some may find difficult.

Local support groups and voluntary and statutory agencies have been involved in the development of this scheme to ensure that it is as accessible as possible to all groups within the community. The partnership will continue to work with these agencies to improve accessibility to the scheme.

Those needing support, advice or assistance will be identified through information given on the application form and also by staff, other professional and voluntary groups, and also the computer system which can be used to monitor whether some customers are not ‘bidding’ or are making inappropriate ‘bids’ (expressions of interest).

The Partnership has ensured that the system itself is accessible. Easy to read guides explaining how the scheme works will be sent to all customers when

9 111 they request an application form and once they are registered. All forms and guides will be available on request in other formats and languages.

The Partnership will continue to widely publicise the scheme and will ensure that newsletters advertising the properties are widely distributed.

The Partnership has ensured that its own staff are fully trained and able to offer advice and assistance to individual customers through; front line staff, floating support workers, hostel staff and sheltered housing wardens.

Through ongoing liaison with a range of statutory and voluntary agencies, the partnership aims to ensure that high quality support is available to customers.

The ICT system will be used to monitor customer bidding patterns and will be used to identify those who are having difficulty using the system. In addition the outcomes for customers identified as having specific needs or coming from minority groups will be monitored to ensure they are as successful in gaining housing as other customers.

In exceptional circumstances ‘automatic bidding’ (see Appendix 1 definition of terms) will be available – this is not a preferred option as it reduces customer choice.

An Accessibility Policy accompanies the Cumbria Choice Scheme.

1.8 Monitoring

The partnership will continue to monitor the policy to ensure that its aims are being met.

Monitoring will be used to ensure that:

• Those in the ‘reasonable preference’ categories are given priority for housing (see sections 3 and 4) • Lettings are broadly proportionate to the profile of local communities • Lettings within ‘the Bands’ accords with the stated aims of the policy (see section 3) • Customers in special needs groups are successfully accessing housing. • There is overall customer satisfaction with the scheme.

1.9 Information sharing, confidentiality and data protection

Information received by a partner organisation in relation to a customers registration form will be treated in confidence in accordance with the Data Protection Act 1998.

10 112 Confidential Information held about customers will not be disclosed to third parties apart from: • Where the individual has consented to the disclosure • Where a partner organisation is required by law to make such a disclosure. • Where disclosure is made in accordance with a recognised Information Sharing Protocol or for reasons of public protection.

Partner organisations will continue to develop Information Sharing Protocols within their own areas and where possible across Cumbria to enable consistency and good working practices between the partnership and other voluntary and statutory agencies.

Local Authorities have a duty under the freedom of Information Act with which they will comply. This duty does not apply to registered social housing providers.

11 113 Section 2 The Common Housing Register

The Partnership has agreed to operate one common housing register within the scheme. This is a single register for both new customers applying for property and existing tenants wanting a transfer. The single register enables customers applying to the scheme to access housing owned by each member of the Partnership by completing just one application form.

When shortlisting for properties there will usually be a priority given to customers with a local connection to the Local Authority area. However, there is a commitment to make 10% of vacancies available across the Sub Region without the requirement for a local connection to the Local Authority area in which the property is advertised. (see section 5.9 for definition of local connection)

2.1 Who can Apply

1. Anyone over 16 years – UNLESS: i. They are a person from abroad and have been classed by the Secretary of State for Communities and Local Government as ineligible for housing. ii. They or a member of their household is guilty of unacceptable behaviour serious enough to make them an unsuitable tenant.

2. Open Register: Cumbria Choice operates an open register and will accept all people regardless of their housing need or whether they are from outside Cumbria, subject to them meeting the eligibility criteria.

3. Joint Applicants: joint applications will be accepted and will be treated as one application. An applicant can only have one active application as a main applicant on the register. The housing need of the full household will be considered in assessing housing need. This Allocations Policy supports adult customers wishing to sign as joint tenants should they choose to do so.

In relation to social housing providers the individual housing provider will decide whether to allow a joint tenancy depending on the circumstances of the case.

4. Employees or their relatives: those working for, or elected to the Governing Body of a partner organisation, or, those related to such a person will be eligible to apply. Any offer of accommodation will be subject to the approval of the Governing Body of the organisation offering the property.

5. Owner Occupiers (and those with the financial means to purchase property):

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• These customers can register with the scheme and will be assessed and placed in the appropriate ‘Banding’ subject to an assessment of their financial means and ability to purchase suitable accommodation. If assessed as able to purchase suitable accommodation they will be given reduced preference.

6. 16/17 year olds: young people aged 16/17 years will be able to apply for accommodation by completing a registration form. However a Social Landlord will not normally grant a tenancy to anyone under the age of 18 years without evidence of an appropriate support package being in place. The following are examples of when a person under 18 years will be considered for accommodation: • They are accepted as requiring move-on accommodation following a successful period in a recognised supported housing scheme and have a move-on support package. • They are a homeless young person to whom a duty is owed under Part VII, Housing Act 1996 and a full housing and child in need assessment has been made by Children’s Services. • They are referred by Children’s Services following a housing and child in need assessment with a recommendation for housing having been made. This includes children leaving care.

7. Tenants of social housing organisations

• Secure and assured tenants may apply to the Register at any time and will have their priority assessed in the same way as other customers. • Tenants with probationary or starter tenancies will be given reduced preference until the completion of the 12 months probationary period and a secure or assured tenancy has been granted. However this may not be applied if there is an urgent need for re-housing. • Tenants transferring within the Scheme will need to have a clear rent account and a satisfactory property report. However this may not necessarily be required if there is an urgent need for re- housing.

8. Persons from Abroad

• Housing authorities are required by law to establish if a person is eligible for housing or whether they are excluded from an allocation under the Asylum and Immigration Act 2002. • Where a person’s eligibility for housing is unclear investigations will be undertaken to establish the person’s entitlement for housing.

9. Prisoners: prisoners can register in the 6 month period prior to their date of release. They are able to express an interest in a property in

13 115 the 2 week period prior to release but must be able to accept the tenancy on the date required by the housing provider.

Partner organisations will refer to the Cumbria Joint Protocol for Housing Offenders for guidance.

10. Ineligibility due to serious unacceptable behaviour

• Cumbria Choice expects customers registering for housing to be able to meet the standards of behaviour required of them by the tenancy agreements of partner organisations. Where customers current behaviour indicates that they would be unsuitable to be a tenant they will not be eligible to register with the scheme. • Part 6 of the Housing Act 1996 as amended by the Homelessness Act 2002 (Section 160A (7)) allows the Local Authority to treat a person as ineligible where they or a member of their household has been guilty of behaviour serious enough to make him/her unsuitable to be a tenant and at the time of the application the customer is still unsuitable to be a tenant. • Unacceptable behaviour includes but is not limited to: o Anti-social behaviour o Racial harassment and other hate related crimes o Criminal Behaviour o Violence o Violence or threats of violence to staff or the agents of partner organisations in the Cumbria Choice scheme o Serious rent arrears • The decision on whether a customer is deemed to be ineligible will be made on a case by case basis. • Where a customer is deemed to be ineligible to join the register they will be given the reasons for that decision and will have the right to request a review of that decision (Section 6).

The full policy on the Eligibility criteria is listed in Appendix 3.

2.2 How to Apply

To join the Cumbria Choice Register customers need to complete an application form. The form can be obtained from the offices of any partner organisation or completed on line via the website.

The application form will be available in other formats and languages on request.

Customers will be required to sign a declaration to:

14 116 • Confirm that the information given is correct and that they will notify Cumbria Choice of any change in their circumstances. • Give consent to allow enquiries to be made concerning their eligibility for housing and level of priority. • Give consent to allow information to be provided to another partner organisation in the scheme.

Assistance is available for any customer who has difficulty in completing the form from any of the partner organisations

2.3 References

Existing or previous tenants will be asked to provide a reference from their current or previous landlord. This information will be used to decide whether the customer is eligible to be accepted onto the Register and whether or not they should be given reduced preference.

Where a customer has not held a tenancy a character reference may be requested from a professional person who has known the customer for at least 2 years. This applies to both customers where there is a joint application.

Where a customer cannot provide a reference then the following options may be taken to establish whether a customer is eligible to be accepted onto the register and whether or not they should be given reduced preference:

• The customer will be asked to attend an interview with the Officer responsible for assessing the application. • The customer will be asked to provide a criminal records bureau check.

2.4 Police Checks

Where a customer indicates on their form that they have an unspent criminal conviction a criminal records bureau check or further information will be sought about the offence(s). This will be done to establish whether the person has been involved in a serious crime(s) that would pose a serious risk to the community if they were to be housed within that community.

Information gained will not automatically exclude an applicant from the register. It may also be used to make informed decisions about any offer of a property.

2.5 Notification of Registration

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When an application is accepted onto the register the customer will be informed in writing and provided with the following information:

• Their registration date • Their registration reference number • The Band they have been placed in. • A Priority Band date if that is different from their date of registration (see section 3.2; the ‘effective’ date) • Their username and password for the Website.

If an application is moved into a higher priority Band the ‘effective date’ is taken to be the date it was moved into the higher priority Band. Where an application is moved out of a priority Band the waiting time reverts to the original date of registration.

When customers receive their letter of registration they will also receive a guide to the Cumbria Choice Scheme. This will inform them about how the scheme works and will include such information as: how applications are Banded; where to look for advertised properties; how to register an interest in a property, ‘bid’; what checks are made before an offer is confirmed.

2.6 Changes in Circumstances

It is the responsibility of the customer to notify Cumbria Choice of any changes in their circumstances that could affect their application for housing. The application will be re-assessed and if appropriate placed in a different Band.

2.7 Reviewing the Register

Each customer on the Common Housing Register will have their application reviewed annually. A letter will be sent to all customers requesting confirmation of details. If a reply is not received within 28 days of the date sent the application will be cancelled.

Customers registered in Bands A and B will be reviewed more regularly to ensure they are bidding for suitable properties. Monitoring of number(s) of ‘bids’ made (or lack of) will be used to identify where assistance to customers may be needed

2.8 Cancelling Applications

An application will be cancelled from the housing register in the following circumstances:

i. At the customers request.

16 118 ii. If the customer becomes ineligible for housing on grounds of their behaviour. iii. When the customer has been housed. iv. When a social housing tenant completes a mutual exchange. v. On failure to reply to a review letter or requests for further information within a given time period. vi. Where it is discovered that the customer has given false or misleading information

In circumstances (ii) and (vi) the customer will be notified in writing and informed of the reason why their registration has been cancelled and of their right to request a review of that decision.

In circumstance (v) the customer will be notified in writing that their registration has been cancelled. The application will be re-instated if the applicant contacts Cumbria Choice within 28 days of being notified of the cancellation.

2.9 Giving False Information

Under section 171 of the 1996 Housing Act it is a criminal offence for anyone applying for housing from a housing authority to knowingly give false information or to withhold information which is relevant to their application. An offence is also committed if a person allows a third party to provide false information on their behalf.

Customers who are found to have withheld or given false information may be removed from the register for 12 months. This will be decided upon based on the seriousness of the false information given and an assessment of why the information was withheld.

The customer will be informed in writing of the decision and advised of their right to request a review.

Where a tenancy has been awarded action may be taken with regard to that tenancy.

2.10 Deliberate Worsening of Circumstances

Where there is evidence that a customer has deliberately made their housing situation worse in order to gain a higher priority on the register, they will be assessed based on the circumstances before their situation changed.

Examples of this are:

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• Customers who have allowed family members or others to move into their property, who previously had suitable accommodation, and this has resulted in the property being overcrowded. • Customers who have moved from previously suitable or more suitable accommodation which it was reasonable for them to continue to occupy, into a less suitable property. • Homeowners who have transferred their property to another family member within the last 5 years from the date they make their application to the Register.

Section 3 Assessing Housing Need

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3.1 Priority for Housing

Local Authorities are required by law to determine the relative priority that housing customers are awarded. The law, as it applies to Local Authorities, requires that reasonable preference for housing must be given to those in the categories set out in the Housing Act 1996 (as amended). In addition the Cumbria Choice scheme gives additional preference to those customers where the Council is satisfied that they have other exceptional or urgent housing needs.

Cumbria Choice operates a needs based Banding system which is set out below. The Bands are arranged to reflect housing need with the highest Band, Band A, indicating the greatest need for housing.

Band A: Urgent Need for Explanation of criteria to be used in the Housing due to Reasonable Assessment preference plus additional priority. Homeless Households owed a Households who have made a statutory homeless full homeless duty. application to the Local Authority under Part V11 of the Housing Act 1996 and have been Reasonable preference category determined by the Council as owed a duty under s 167(2) (b) section 190(2), 193(2), or 195(2) or who are occupying accommodation secured by the authority under section 192(3) of the Housing Act 1996 (as amended).

Note: Households who do not have a local connection will receive a reduced preference.

Exceptional need to move due • An immediate life threatening or to a Medical condition or progressive condition which is seriously reasons of Disability affected by the current housing and where re-housing would make it significantly Reasonable preference category easier to manage. s167(2) (d) • A member of the household cannot be discharged from hospital until a suitable adapted property is provided. • Due to limited mobility a person is unable to access essential parts of the property eg. bathroom/toilet and requires re-housing into accommodation suitable for their use. • A member of the household is elderly or disabled or has a progressive illness and is likely to require admission to hospital or residential/nursing care in the immediate

19 121 future and re-housing would enable the person to remain at home. • Armed forces personnel who need to move to suitable adapted accommodation because of a serious injury, medical condition or disability which he or she or a member of their household, has sustained as a result of service.

• People who have a severe mental health or learning disability which significantly affects their ability to lead a normal life and which puts them at risk of admission to hospital or residential care.

Exceptional need to move for • Customers who need to move due to Welfare Reasons. domestic abuse, extreme violence or extreme harassment. This would include racial, homophobic or transgender Reasonable preference category harassment. Agreed in exceptional s167(2) (d) circumstances where there is a high risk to the tenant or their family’s safety if they remain in the property/area. • Customers who need to move due to exceptional circumstances where there is a high risk to the tenant or their family’s safety if they remain in the property/area.

Statutory Overcrowded Households that are statutory overcrowded as defined by the Housing Act 2004. Reasonable preference category s167(2) (c) The assessment to be made by the Local Authority Environmental Health Department.

Unfit or insanitary properties. Households living in unsafe or unfit conditions as defined by the housing health and safety rating Reasonable preference category system and where there is a high risk of harm and s167(2) (c) intervention by the Local Authority on the grounds that the property is uninhabitable.

This includes property that has severe damp, major structural defects including, subsidence, flooding, collapse of roof or have living conditions which are a statutory nuisance.

Band B: High Need for Explanation of criteria to be used in the Housing due to Reasonable Assessment

20 122 Preference

Cumulative Preference People who are assessed as having more than one reasonable preference housing need from reasonable preference category (c), (d) & (e).

Combinations of reasonable Customers who have two or more of the following preference categories s167(2) needs as listed in Band C: (c), (d) & (e) • Harassment and hate crime • Households needing to move to a particular locality on hardship grounds • Households overcrowded • Households who lack basic facilities • Medical need Welfare Grounds • People who have been living in supported accommodation for at least 6 months and Reasonable preference category who have been assessed as ready for s167(2) (d) independent living. • Young people who are referred by Children’s services following a housing and child in need assessment with a recommendation for housing. This includes children leaving care. • All referrals by Children’s Services will be made following the Joint Protocol – currently the Interim Protocol 16-17 year old presentations in relation to accommodation (March 2010) in Cumbria

Homeless prevention status – A customer has children or is pregnant, or is a customers who have not been single person who in the Local Authority’s opinion housed within 3 months of being may be in priority need and the Local Authority awarded Band C priority considers they are at risk of being physically homeless. The customer must have opted to take a homeless prevention option and as a result have been granted Homeless Prevention Status.

This priority will be awarded by the Local Authority after the 3 month period that the customer has been in Band C.

Under occupation Social housing tenants of a partner organisation that are under occupying a house by 2 or more Reasonable preference category bedrooms. s167(2) (c) An assessment will be made on the basis of the current family composition and will also take into account the family composition at the start of the tenancy.

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Band C: Medium Need for Explanation of criteria to be used in the Housing due to Reasonable Assessment Preference

Non Priority Homeless These customers will be assessed by the Local Authority. They will include: Those who are entitled to • Rough sleepers reasonable preference as being • Those moving between friends and non-priority homeless, relatives intentional homeless or • Those who have accommodation but the homeless within Part 7 of the local authority do not consider it reasonable Act. to occupy • Those who have accommodation, but cannot secure access to it or there is no Reasonable preference category lawful place they can live in it e.g. caravan s167(2) (a) • Those who have made a homeless application and determined to be homeless but not in priority need or are intentionally homeless.

Homeless prevention option A customer has children or is pregnant, or is a being chosen single person who in the Local Authority’s opinion may be in priority need and the Local Authority Priority will be awarded for a 3 considers they are at risk of being physically month period homeless. The customer must have opted to take a homeless prevention option and as a result have been granted Homeless Prevention Status.

This priority will be awarded by the Local Authority for a period of 3 months.

Medical The customer’s housing is unsuitable for medical/disability reasons but they are not Reasonable preference category housebound and their life is not at risk due to their s167(2) (d) current housing. However the housing conditions are directly contributing to their ill health.

Examples are as follows: • Children with severe conditions such as autism, or cerebral palsy where their long term needs cannot be met without settled accommodation • A person whose disability means that re- housing would enable them to overcome physical barriers created by their current accommodation e.g. stairs and steps. • A person with a severe disability requiring substantial adaptations to a property which

22 124 is not provided for in their current accommodation. • A person with a terminal illness or long term medical debilitating condition whose current accommodation is not having a significant impact on their condition but where their quality of life would be significantly improved by moving to alternative settled accommodation which may or may not be closer to support.

The assessment will not be made on the basis of the customer’s health but on how their accommodation affects their health.

Hardship Customers who need to move to a particular locality where failure to meet that need would Reasonable preference category cause hardship to themselves or others. This s167(2) (e) would include people needing to move for: • Employment purposes • To be near relatives to give or receive support • To access medical treatment/social services facilities.

This priority will only be awarded in exceptional circumstances and includes: • Customers who require support from relatives or friends will only be considered where there is a severe mental health, medical or welfare issue and there are reasons why this support cannot be made available through reliance on public transport or the customer’s own transport.

• Customers requiring to take up or continue employment opportunity not available elsewhere will only be considered where they do not live within a reasonable commuting distance and will be required to provide confirmation of employment details from the employer.

Overcrowded Customers who need to move due to overcrowding by 1 bedroom or more. Reasonable preference category s167(2) (c) Applicants will be assessed according to the bedroom standard for overcrowding.

A household will be considered for this category

23 125 where they are 1 bedroom or more short of the required bedrooms. Unsatisfactory Housing • Customers without access to any of the following facilities: Reasonable preference category o A bathroom or kitchen s176 (2) (c) o An inside WC o Hot or cold water supplies o Electricity, gas or adequate heating • Customers who share facilities with other households who are not members of their household/family.

This will be subject to verification by the local authority or social housing provider.

Under Occupation Social housing tenants of a partner organisation that are under occupying a house by 1 bedroom. Reasonable preference category s167(2) (c) An assessment will be made on the basis of the current family composition and will also take into account the family composition at the start of the tenancy. Band D: Low Need for Explanation of criteria to be used in the Housing due to No Assessment Reasonable Preference Band D Plus Those in Band D Plus will be given priority over other customers in Band D. To qualify for this Customers not owed a Band applicants need to demonstrate: reasonable preference but who • Employment within the Borough have met the Partnership • Transfer customers of partner Community Contribution criteria organisations with a positive tenancy history. • A positive contribution to the local community – for example voluntary work.

Band D Customers assessed as not being owed a reasonable preference. Customers not owed a reasonable preference This would include those who are assessed as adequately housed.

Band E: Reduced Priority Explanation of criteria to be used in the Assessment

Customers owed a reasonable • Customers will be awarded the reasonable preference but given reduced preference that their assessed housing priority needs warrant but will be given reduced priority until action is taken by them to rectify their circumstances/behaviour.

24 126

• These customers will remain in this Band Customers not owed a until action is taken by them to rectify the reasonable preference and circumstances/behaviour that has led to the given a reduced priority reduced priority.

A customer will be given reduced priority for the following reasons: • Arrears or other housing related debt • Breach of a tenancy condition which is unresolved but would not warrant a full possession order • A property not meeting the required standard for a transfer customer • No local connection • those with financial resources • Refusing 2 reasonable offers within a 12 month period • Young people less than 18 years of age unless they meet the criteria for being offered accommodation. • Tenants with starter or probationary tenancies

See Section 4 for detail on how reasonable preference, additional preference and reduced priority will be assessed and applied under the scheme.

3.2 Waiting Time – The ‘Effective’ Date

Priority is given to customers depending on their housing need but significant importance is also given to the length of time the customer has waited for a property. Priority within each Band is determined by the length of time the application has been placed in that Band. This is either the date of registration or the date of entry into a priority Band.

Where a customer moves out of a priority Band and into Band D or E their effective date will return to their date of registration.

3.3 Management Discretion

In some circumstances a property will be let directly to a customer without being advertised. This is when: a sensitive letting is required due to the person’s previous history; where there is an urgent need for housing and it would cause serious hardship or risk to the customer if they were required to

25 127 ‘bid’ for a property; there is a need to make best use of the housing stock or for other housing management reasons.

This is not an exhaustive list but examples of these instances are:

• Tenants of partner organisations that need to move on a temporary basis due to a fire or flood. • People who are at imminent risk of violence and are to be housed through a witness protection programme. • Vulnerable people who are to be housed as part of a multi-agency protocol where a full support package is in place. • Where an existing social housing tenant is required to move to make best use of stock and suitable accommodation has not been secured through the Scheme e.g. to make available a fully adapted property, urgently required by a priority customer. • Where there is a need agreed between housing and social services to provide a specific property for vulnerable individuals. For example where a property is required for people with learning disabilities to live together with support. • Where a sensitive letting is required for a particular property because of previous issues of drug dealing, violence, public protection or anti- social behaviour.

When an allocation is made through management discretion this information will be included in the lettings results which are published.

3.4 Homeless Households

Homeless applications will continue to be dealt with by the appropriate Local Authority in accordance with the relevant legislation and codes of guidance -. this includes dealing with appeals and reviews. Information regarding homelessness will be provided to homeless applicants by the Local Authority (or Local Authority agent).

However a key aim of the Cumbria Choice scheme is to address the issues of homelessness within the County and through the partnership to provide an improved service to those either homeless or threatened with homeless.

This will be achieved through sharing good practice and developing initiatives across the partnership. Through the use and development of improved ICT systems homeless households will be able to identify the housing options available to them and to have an informed view of how they can best resolve their housing needs.

Homeless households and those threatened with homelessness will have greater control and choice over where they live and through assisting them with these decisions the scheme aims to increase their commitment to both the home and the community into which they move.

26 128 Households who are found homeless or at risk of homelessness, in priority need and are unintentionally homeless, and, to whom a Local Authority has a duty under Part VII of the 1996 Housing Act will be placed in Band A.

These households will be able to bid for properties during a 6 week period. During this time the bidding pattern of such customers will be monitored to ensure that they are bidding and to identify those who are in need of further advice and assistance to help them through the process.

After the 6 week period, partner organisations have the right to place a bid on behalf of the homeless household. Where the bid is successful it will constitute an offer of accommodation in accordance with section 193(7) and 202 of the 1996 Housing Act. The offer will be made in writing and subject to appeal.

The homelessness duty will be discharged if an offer is made as a result of a successful bid on a suitable property.

Customers who have been found intentionally homeless may be given reduced preference by virtue of the action which led to the intentional homeless decision and placed in Band E. Customers to whom a Local Authority has a duty under Part VII of the 1996 Housing Act will be given reduced preference and placed in Band E where they do not have a local connection to the Local Authority. Customers will remain in this Band until the issues relevant to their circumstances have been resolved.

3.5 Households with a Disability

The scheme enables customers who require adaptations to ‘bid’ for any property in the scheme. The customer will be considered for the property on the same basis as the other applicants who have placed ‘bids’.

Adapted properties or properties designed to disability standards are included within the scheme and will be offered firstly to those customers with a need for this property type. This will be made clear in the advert as well as information within the advert about the actual adaptations/accessible features.

3.6 Serious offenders and Public Protection

Cumbria Choice will work with the Police and Probation Service through the Housing Offenders Protocol to manage any risk posed to the public.

Officers will attend case conferences and work with agencies where cases are referred to the Multi-Agency Public Protection Panel. A range of housing options will need to be considered and the partnership will seek to assist in identifying appropriate housing that meets the needs of the customer and the community.

27 129 In some circumstances this may restrict the choice of property available to the customer but they will wherever possible be given the opportunity to exercise some choice.

3.7 Exempt allocations

Some transfer moves are exempt from the requirements of Part 6 of the Housing Act 1996 and will be dealt with separately.

The following are not allocations under this scheme:

• Succession to a tenancy on a tenant’s death pursuant to s89 Housing Act 1985, or • Assignment of a tenancy by way of mutual exchange, or • Assignment of a tenancy to a person qualified to succeed to the tenancy on the tenant’s death, or • Transfer of the tenancy by a court order under family law provisions or under the Civil Partnership Act 2004, or • The Conversion of an Introductory Tenancy (Council stock), or Starter Tenancy (Housing Association stock) into a Secure Tenancy. • Council initiated transfers, for example due to a tenant being displaced from their accommodation due to demolition or regeneration. • Re-housing due to being displaced from previous accommodation by the Council pursuant to the land Compensation Act 1973. • A person granted a family intervention tenancy. • Provision of non secure temporary accommodation in discharge of any homelessness duty or power.

28 130 Section 4 Reasonable Preference Categories, Community Contribution and Reduced Preference

The law requires Local Authorities to give reasonable preference for housing to certain categories of households. The statutory reasonable preferences categories are set out in section 167(2) (a) to (e) of the Housing Act 1996 (as amended) and are:

• People who are homeless, as defined by Section 175 Part VII of the 1996 Housing Act. • People who are owed a duty by any local authority under section 190(2), 193(2), or 195(2) of the Housing Act 1996 or under S65(2) or S68(2) of the Housing Act 1985 or people that are occupying a property secured by the local authority under Section 192(3) of the Housing Act 1996 (persons not in priority need who are not intentionally homeless) • People occupying unsanitary or overcrowded housing or otherwise living in unsatisfactory housing conditions • People who need to move on medical or welfare grounds, including grounds relating to disability • People who need to move to a particular locality in the district of the housing authority, where failure to meet that need would cause hardship to themselves or others.

In framing this policy and to ensure that those in greatest need are given preference for an allocation of accommodation, the partnership has taken into account the categories of people that must be given reasonable preference by Local Authorities.

Whilst Housing Authorities are required to give reasonable preference to the above groups they will not necessarily be given the same degree of preference. Housing Authorities are able to give additional preference in their allocation policy to households who have a particular urgent need for housing.

To ensure allocation policies meet local housing needs housing authorities are also able to give priority to other groups who are outside these reasonable preference categories as long as they do not dominate the scheme at the expense of those listed in the reasonable preference categories.

Reasonable Preference and Additional Preference – How it is Applied Under this Scheme.

4.1 Reasonable preference category s167(2) (a) – people who are homeless within the meaning of Part VII of the Housing Act 1996.

• Customers assessed as meeting the criteria for this reasonable preference category will be placed in Band C.

29 131 • Households at risk of homelessness and whom the Local Authority considers may be in priority need will be placed in Band C where they have opted to take a Homeless Prevention option. Those who are awarded this status may move to Band B after 3 months.

Customers in this category do not need to have made a homeless application to a Local Authority. They do not need to be in ‘priority need’ for accommodation as defined by Part VII of the 1996 Housing Act. This definition of homeless includes a person who does not have accommodation which is legally and physically available to them or has accommodation but it is not reasonable for them to continue to occupy.

Examples of where a customer may qualify under this category for Band C are:

• Rough Sleepers • Those moving between friends and relatives • Those who have no accommodation at all in which they can live, with other family members normally living with them or others the Council might reasonably expect to live with them. • Those who have accommodation but where there legal right to live in that accommodation has been terminated and they will be homeless immediately or within 28 days. • Those who have accommodation but where in the Council’s opinion it wouldn’t be reasonable for them to continue to occupy it. • Those who have accommodation but cannot secure access to it, or, in the case of a moveable structure, like a caravan, there is no lawful place they can lawfully live in it. • Those who have made a homelessness application and have been determined by the Council to be homeless but not in priority need, or have been found intentionally homeless.

Note: those found intentionally homeless may be given reduced preference by virtue of the action which led to the intentional homeless decision – Band E.

Homeless Prevention

The Local Authority will award additional preference to those at risk of homelessness where the customer has chosen to take a homeless prevention option, in the following circumstances:

• The customer is likely to be found to be in priority need if they became homeless and made a homeless application • And, the Council consider that they are at risk of being homeless (within 28 days) • And, they have opted to take a homeless prevention option offered by the Council and as a result have been granted Homeless Prevention Status.

30 132 These households will be placed in Band C for up to 3 months. The Council may then award Band B after the 3 month period. The customers ‘effective date’ will be the date that they moved into the respective Bands.

4.2 Reasonable preference category s167(2) (b) – people who are owed a duty by any Local Authority under section 190(2), 193(2), or 195(2) or who are occupying accommodation secured by a Local Authority under section 192(3) of the Housing Act 1996 (as amended).

Customers assessed as meeting the criteria for this category are given additional preference by the scheme and will be placed in Band A. Customers who will given this additional preference are:

• People who are in priority need and the Local Authority has accepted that it owes the household a full homeless duty under section 195(2) as being threatened with homelessness in the next 28 days, and the Local Authority is taking steps to try and prevent that homelessness from occurring. • People who have been accepted as being owed the full homeless duty under section 193(2) - those who are deemed homeless, in priority need and unintentionally homeless.

Note: those households who do not have a local connection to the Local Authority are likely to be given reduced preference.

4.3 Reasonable preference category s167(2) (c) – people occupying unsanitary or overcrowded housing or otherwise living in unsatisfactory housing conditions.

Customers being assessed as meeting the criteria for this category will be placed in Bands A, B or C. Customers will be placed in Band C where they have been given reasonable preference and Bands A and B where they have been awarded additional preference by the scheme. Additional preference is awarded based on the severity of the housing need.

Note: Customers may be given a Band B priority based on a combination of housing needs – see Cumulative Preference (section 7.0) below.

Additional Preference

Customers will be awarded additional preference and placed in Band A in the following circumstances: • Those who are statutory overcrowded as defined by the Housing Act 2004. These cases will be assessed by the Local Authority Environmental Health Department • Households living in unsafe or unfit conditions (property that poses a category 1 hazard) as defined by the housing health and safety rating system and where there is a high risk of harm and intervention by the

31 133 Local Authority on the grounds that the property is uninhabitable. This includes property that has severe damp, major structural defects including, subsidence, flooding, and collapse of roof or have living conditions which are a statutory nuisance. The Local Authority must be of the opinion that there is no prospect of the problem being remedied within a 6 month period. These cases will be assessed by the Local Authority Environmental Health Department.

Note: owner occupiers will only be considered if they are elderly, disabled or have a mental health problem and their property is uninhabitable and they do not have the financial means to repair. Cases will be accepted where an assessment has been made by the Local Authority Environmental Health Department and a statutory notice has been issued that the property poses a category 1 hazard under the health and safety fitness rating scheme.

Reasonable Preference

Customers will be awarded reasonable preference and placed in Band C in the following circumstances:

• Customers without access to any of the following facilities: o A bathroom or kitchen o An inside WC o Hot or cold water supplies o Electricity, gas or adequate heating • Customers who share facilities with other households who are not members of their household/family. • These housing conditions maybe subject to verification by the local authority or social housing provider.

• Customers who are living in overcrowded conditions. Reasonable preference will be given to households lacking one bedroom or more. • The standard to be used is the bedroom standard as set out in the Housing (Overcrowding) Bill. • For the purposes of the bedroom standard a separate bedroom shall be allocated to the following persons:

o A person living together with another as husband and wife (whether that other person is of the same sex or the opposite sex). o A person aged 21 years or more. o Two persons of the same sex aged 10 years to 20 years. o Two persons (whether of the same sex or not) aged less than 10 years. o Two persons of the same sex where one person is aged between 10 years and 20 years and the other is aged less than 10 years.

32 134 o Any person aged under 21years in any case where he or she cannot be paired with another occupier of the dwelling so as to fall within (c), (d), or (e) above.

Customers who have voluntarily allowed family member(s) or other(s) to move into their property will not be given reasonable preference.

Social housing within the Cumbria Choice region is subject to acute pressure and there is a particularly high demand for family size accommodation. Partner organisations need to make best use of their stock and for this reason access to children will only be included in the overcrowding calculation where there is evidence that: • The parent has permanent access arrangements, and • The child(ren) regularly spend 50% or more of their time living at the property.

Tenants of Landlords within the Cumbria Choice Scheme who under occupy a family home where a move will free up accommodation for an overcrowded household.

• Additional preference for customers who need to move on hardship grounds where failure to move will cause hardship to others. Social housing tenants of a partner organisation that are under occupying a house by 2 or more bedrooms will be awarded Band B priority.

• Reasonable preference for customers who need to move on hardship grounds where failure to move will cause hardship to others. Social housing tenants of a partner organisation that are under occupying a house by 1 bedroom will be awarded Band C priority.

The assessment will be made on the basis of the current family composition and will also take into account the family composition at the start of the tenancy.

4.4 Reasonable preference category s167 (d) – people who need to move on medical or welfare grounds including grounds relating to a disability.

Customers being assessed as meeting the criteria for this category will be placed in Bands A, B or C. Customers will be placed in Band C where they have been given reasonable preference and Bands A or B where they have been awarded additional preference by the scheme. Additional preference is awarded based on the severity of the housing need.

Note: Customers given only reasonable preference (Band C) may be given a Band B priority based on a combination of housing needs – see Cumulative Preference (section 7.0) below.

• Medical Grounds – Additional Preference

33 135

A customer who has an urgent need to move for medical reasons or due to a disability, which is being exacerbated by their current housing situation will be awarded additional preference and placed in Band A. This would include people whose safety is at risk due to their current housing or who are completely housebound because of the type of accommodation they live in.

The assessment will be made by an officer of the partner organisation with specific responsibility for the assessment of such cases and following a set of criteria based upon routine medical conditions and property conditions/facilities. The officer will make the assessment from information given by the customer who will be required to complete a medical questionnaire.

In most cases the assessment will not be of the customer’s health but how their accommodation affects their health. In exceptional circumstances that do not meet the set criteria the case will be passed to a senior officer within the partner organisation administering the application.

For more serious cases evidence maybe required from an Occupational Therapist, Doctor or Consultant. In some cases a decision may be taken to pass the information to a medical consultancy commissioned by the Partnership for the purposes of clarification. The decision on whether to award priority will be taken by the senior officer of the partner organisation.

The following are examples of cases that would qualify for Band A priority:

o An immediate life threatening or progressive condition which is seriously affected by the current housing and where re-housing would make it significantly easier to manage. o A member of the household cannot be discharged from hospital until a suitable adapted property is provided. o Due to limited mobility a person is unable to access essential parts of the property eg. bathroom/toilet and requires re- housing into accommodation suitable for their use. o A member of the household is elderly or disabled or has a progressive illness and is likely to require admission to hospital or residential/nursing care in the immediate future and re- housing would enable the person to remain at home. o Armed forces personnel who need to move to suitable adapted accommodation because of a serious injury, medical condition or disability which he or she or a member of their household, has sustained as a result of service. o People who have a severe mental health or learning disability which significantly affects their ability to lead a normal life and which puts them at risk of admission to hospital or residential care.

• Medical Grounds – Reasonable Preference

34 136 Customers whose housing is unsuitable for severe medical reasons or due to disability but who are not housebound or whose safety is not at risk due to their current housing will be awarded reasonable preference and placed in Band C.

Their housing conditions will need to contribute to causing serious ill health. Their circumstances will be assessed in the same way as for the additional preference category above. The assessment will be made by an officer of the partner organisation with specific responsibility for the assessment of such cases and following a set of criteria based upon routine medical conditions and property conditions/facilities. The officer will make the assessment from information given by the customer who will be required to complete a medical questionnaire.

In most cases the assessment will not be of the customer’s health but how their accommodation affects their health.

In some cases evidence maybe required from an Occupational Therapist, Doctor or Consultant and a decision may be taken to pass the information to a medical consultancy commissioned by the Partnership for the purposes of clarification. The decision on whether to award priority will be taken by the partner organisation.

The following are examples that would qualify for Band C priority:

• Children with severe conditions such as autism, or cerebral palsy where their long term needs cannot be met without settled accommodation • A person whose disability means that re-housing would enable them to overcome physical barriers created by their current accommodation e.g. stairs and steps. • A person with a severe disability requiring substantial adaptations to a property which is not provided for in their current accommodation. • A person with a terminal illness or long term medical debilitating condition whose current accommodation is not having a significant impact on their condition but where their quality of life would be significantly improved by moving to alternative settled accommodation which may or may not be closer to support.

Welfare Grounds – Additional Preference

• Domestic Abuse, extreme violence or extreme harassment.

Customers who need to move due to domestic abuse, extreme violence or extreme harassment will be awarded Band A priority. This would include disability, racial, homophobic or transgender harassment and will be awarded for exceptional circumstances where there is a high risk to the tenant or their family’s safety if they remain in the property/area.

35 137 This priority will be given in circumstances where the customer does not wish to make a homeless application but wants to remain in the property or with relatives or friends. They will be awarded this priority without going through the homelessness route.

New customers to the scheme will be assessed and given Band A priority by the Local Authorities housing options team. Tenants of partner organisations will be assessed and given Band A priority by their Landlord.

The assessment will be made by a senior officer within the partner organisations and will be based on evidence provided by the customer and other appropriate statutory and voluntary agencies. This would include, the Police, Social Services, referrals by MARAC, Domestic Violence and Lesbian and Gay support groups.

• Move on from supported housing projects

Customers who are moving on from a specified list (see appendix 4) of supported housing projects will be awarded Band B.

They must have a vulnerability and an urgent housing need that is best met through the provision of long term settled housing. To qualify for this additional preference the support provider will provide written evidence that the customer: o Has successfully completed a minimum of 6 months in the supported housing scheme. o is ready to move to independent settled accommodation. o has a support package that has been assessed and is in place.

Customers can register when they move into supported accommodation and are likely to be awarded Band D priority. When they are ready to move on they will be awarded Band B priority. The ‘effective date’ for all move on customers will be the date they moved into that providers supported housing scheme regardless of their date of application.

• Young Person in Need (including young people moving on from Care).

Young people referred by Social Services in accordance with the joint protocol will be awarded Band B. All referrals by Children’s Services will be made following the Joint Protocol – currently the Interim Protocol 16-17 year old presentations in relation to accommodation (March 2010) in Cumbria.

Referrals will be made where a young person is leaving care or housing and child in need assessment with a recommendation for housing has been made. The criteria for the award of additional preference is: o The young person is ready to move to independent settled housing and is genuinely prepared for a move to independent living. o They possess the life skills to manage a tenancy including managing a rent account.

36 138 o The young person is in need of medium or long term tenancy support. o The support package has been assessed and is in place. o Their needs are such that accommodation in the private rented sector, through its short term nature, would have a detrimental effect on their move to independent living.

4.5 Reasonable preference category s167(2) (e) – people who need to move to a particular locality within the local authority’s district, where failure to meet that need would cause hardship to themselves or others.

Customers being assessed as meeting the criteria for this category will be awarded reasonable preference and placed in Band C.

Note: Customers given only reasonable preference (Band C) may be given a Band B priority based on a combination of housing needs – see Cumulative Preference (section 7.0) below.

The people who meet this criteria are those who need to move for: • Employment purposes • To be near relatives to give or receive support • To access medical treatment/social services facilities.

Customers who are assessed as meeting this criteria for employment purposes will be placed in Band C. Priority will only be given in exceptional circumstances and customers will need to show:

• That they need to move to take up or continue an employment opportunity not available elsewhere. They will only be considered where they do not live within a reasonable commuting distance and will be required to provide confirmation of employment details from the employer.

Customers who are assessed as meeting this criteria for support purposes will be placed in Band C. Priority will only be given in exceptional circumstances and customers will need to show:

• That they require substantial and ongoing support from relatives or friends. This will only be considered where there is a severe mental health, medical or welfare issue and there are reasons why this support cannot be made available through reliance on public transport or the customer’s own transport.

Example of the type of information required in order to assess the priority include: o Confirmation of name and address of the person who is to provide the care and the person who is to receive care o Evidence of their care requirements (Doctor, Social Services) o Evidence of links to care groups

37 139 o Disability living allowance receipt

Customers who are assessed as meeting this criteria for access to medical treatment or social services facilities will be placed in Band C. Priority will only be given in exceptional circumstances and customers will need to show:

• That they have a need to access medical care and/or social services facilities and that cannot be met through reliance on public transport, the customer’s own transport, or through provision put in place by health or social services.

Example of the type of information required in order to assess the priority include: o Confirmation of name and address of the medical or social provision to which they need access. o Evidence of their care requirements (Doctor, Social Services) o Evidence that no other provision is available and no assistance can be provided to enable them to access the service.

4.6 Economic and Community Contribution

This scheme aims to support economic growth within the County and to value those who make a positive contribution to their community. For customers awarded no reasonable preference and placed in Band D a proportion of properties will be made available and those who meet the economic and community criteria will be placed at the top of the shortlist.

Customers being assessed as meeting the criteria for this category will be placed in Band D Plus. Customers will be awarded this additional priority in the following circumstances:

• Low income working household – the scheme wants to encourage those people who work but are on a low income to remain in the area and contribute to the economic activity of that area.

Low income households are those who are working but would find it difficult to access Home ownership or Low cost Home ownership.

Working households are those where at least one adult member is in employment. This is a permanent contract, working as a temporary member of staff or being self-employed. The person will only qualify if they have been employed for 9 out of the last 12 months. Verification will be sought at the point of application as well as at the point of offer.

Customers must provide payslips, P60, bank statements or a verifying letter on headed paper.

• Community Contribution – the scheme wants to encourage people who make their communities strong, stable and healthy places to live so that

38 140 they will remain in that community and continue to contribute to sustaining the local area.

Volunteers must have been volunteering for a continuous period of at least 6 months at the point of application and must have continued in voluntary work at the point of offer. Volunteering must be for a not-for-profit organisation or a charity and must be for a minimum of 10 hours per month.

Note: Tenant and resident organisations recognised by a Local Authority or Registered Social Landlord are included.

Evidence of volunteering work will be required from the Manager responsible for the volunteer. This person must not be related to the customer.

• Transfer tenants with a positive tenancy history - the scheme wants to encourage tenants to meet the terms of their tenancy agreement and to assist and retain within the social rented sector those tenants who do.

Tenants must have a positive tenancy history to qualify: o No on-going involvement in anti-social behaviour or criminal activities. o A clear rent account maintained for a period of 1 year or more. o A property maintained in accordance with the tenancy agreement o No breaches of the tenancy agreement in the last 3 years. o Not have an outstanding unspent conviction.

• Pre Tenancy Qualification Award – the scheme wants to encourage and help young people under 25 to be responsible tenants and where they are willing to learn how to be a good tenant to reward that effort.

In some Local Authority areas courses are available for young people to attend and gain a ‘young person pre-tenancy qualification’. Where a young person has gained this award and shown they know how to live as a responsible tenant they will quality for this category.

They must have attended a course recognised by the Local Authority or obtained an NVQ level qualification.

4.7 Cumulative Preference

This scheme takes account of customers who have more than one housing need and gives them additional priority for example people who have a medical need and are also living in overcrowded conditions.

Customers who have two or more of the housing needs as listed in Band C will be placed in Band B to reflect their additional housing needs:

39 141 • Harassment and hate crime • Households needing to move to a particular locality on hardship grounds • Households overcrowded • Households who lack basic facilities • Medical need

4.8 Reduced Preference

Local Authorities have a right to reduce a person’s priority for housing under their allocation policy. This action will be taken in order to enforce to existing and prospective tenants the importance of taking seriously their responsibilities as a tenant: • The responsibility of paying their rent and service charges. • The responsibility to keep the property in good repair and not to cause deliberate damage. • The responsibility to conduct their tenancy in accordance with their tenancy agreement and not to cause nuisance or annoyance to their neighbours.

Reduced preference will also take account of other criteria and will be given in the following circumstances: • There is a current or former debt owed to a social or private sector landlord. • There is a history of unacceptable behaviour. • Customers who have been found to be intentionally homeless. • Customers who do not have a local connection with the Local Authority area. • Customers who have the financial resources to purchase a property • Customers who have refused 2 offers of accommodation that they have ‘bid’ for or been offered under management discretion within the last 12 months. • Young people less than 18 years of age unless they meet the criteria for being offered accommodation. • Tenants with starter or probationary tenancies.

Reduced preference due to current or former housing related debt

• Housing debt from all tenures will be considered and includes current or former rent arrears and/or recharges for repairs from property damage. • Non housing debts will not be considered. This includes for example, housing benefit overpayments, mortgage arrears. These debts are

40 142 either not legally enforceable in tenancy law as a condition of the tenancy or under grounds for possession in the Housing Act 1985. • Where a customer has a debt each case will be considered individually and in certain circumstances the customer will not be given reduced preference. Examples include but are not limited to: o Customers who have been accepted by a local authority as unintentionally homeless and in priority need. o The customer has been a victim of Domestic Violence o The customer has an urgent need for housing o The debt arose due to the customer’s vulnerability. o The customer was unable to pay due to circumstances other than deliberate non payment.

Note: In circumstances where a debt is owed to a housing organisation and the customer is not to be given reduced preference in accordance with the examples listed above the organisation to whom the debt is owed may decide not to make an offer of accommodation.

Any debt will be assessed at the point at which the customer’s priority is being considered unless any new information becomes available at a later time and the following will be considered:

• The amount of the arrears/debt • Whether there are any exceptional circumstances as detailed above. If this is the case then the customer will not be subject to reduced preference. • Whether the customer has entered into any arrangement to clear the arrears/debt and if so, the amount already paid off and the length of time and regularity of any payments.

Where a decision is taken to give reduced preference the following will apply and the customer will be advised of the actions they need to take:

• Customers who owe £100 or over but less than £500 will be given reduced preference and placed in Band E. Before they can be reinstated to a higher Band they must sign an undertaking to repay the outstanding debt. They must agree and maintain a repayment plan over a 13 week period. • Customers who owe over £500 but less than £1000 will be given reduced preference and placed in Band E. Before they can be reinstated to a higher Band they must sign an undertaking to repay the outstanding debt. They must agree and maintain a repayment plan for the debt for a period of at least 6 months and have reduced the debt owed to less than £500. • Customers who owe a debt over £1000 will be deemed ineligible based on a case by case basis and subject to any exceptional circumstances. This is because customers with that level of arrears will be considered by the Local Authority to be guilty of unacceptable behaviour and to be unsuitable to be a tenant by reason of that behaviour.

41 143 Customers can apply at any time to have their application reinstated where they are able to show an improvement in their behaviour, in this instance full payment of the debt owed or maintenance of the agreement made.

Reduced preference due to unacceptable behaviour.

Customers will be given reduced preference where it can be satisfied that having considered all the available evidence they (or a member of their current or prospective household) has failed to adhere to the terms of any current of previous social housing or private sector tenancy agreement.

This would include but is not limited to following examples of unacceptable behaviour: • Failing to maintain the property within the terms of the agreement – for example damage to the property, accumulation of large amounts of rubbish in and around the property. • Committing acts causing or likely to cause nuisance or annoyance to neighbours or others in the locality where they live or where they previously lived. This would include noise nuisance, threatening or abusive behaviour. • Criminal behaviour that was relevant to the tenancy and/or locality, for example being in possession of illegal drugs, acts of public disorder. • Serious breaches of a social or private sector tenancy agreement – for example operating a business from the premises, having an unreasonable numbers of pets at the property. • Behaving in a threatening, abusive or obstructive manner towards staff of the partnership and or their contractors.

Reduced preference due to the refusal of two reasonable offers of accommodation.

Customers who have bid for and refused 2 offers of accommodation (including any reasonable offer made through management discretion) within 12 months of the date of their first offer will have their priority for housing reduced for a 12 month period. After this 12 month period of reduced preference the customer will be returned to their original Band with their original date as long as a change of circumstances has not occurred.

Note: this does not apply to homeless customers owed a local authority duty who will be made one reasonable offer.

Notification of reduced preference

Customers who have been given a reduced preference will be provided with written notification of the decision which will contain the following information:

42 144 • The reasons for the decision to give reduced preference. • The Band that their application would be awarded had they not been given reduced preference and placed in Band E. • Their right of appeal and the requirement to put their request in writing within 21 days of receiving the decision. • What they need to do before their application will be placed in the Band determined by their housing needs. • That a customer can ask at any time for their application to be removed from the reduced preference Band. The request for removal must be made in writing and must set out why the customer believes that the reduced preference they have been given is no longer justified.

Section 5 How the Scheme Operates

5.1 Advertising the Properties

Choice based lettings are about the customer having choice in where they live. Properties will be advertised and customers will be able to indicate the properties for which they want to be considered by ‘bidding’. Once the bidding

43 145 process closes a shortlist will be compiled and the property allocated taking account of the banding priority of the applications and their time waiting.

The partnership organisations have agreed to advertise the majority of their properties through Cumbria Choice. Properties will be advertised on a weekly basis on both the website and in newsletter form.

Properties will be advertised in an easy to read format. They will usually include a picture of the property or scheme in which it is located. Property adverts will include details of the property and will indicate suitable household size as well as giving information about the local area. They will (where appropriate) indicate the priority band of customers eligible to apply. The properties will clearly indicate which housing organisation is the Landlord.

Properties may be advertised during the 4 week notice period given by an outgoing tenant. If the notice is subsequently withdrawn by the tenant the property will therefore be unavailable to let.

All categories of properties will be advertised. General needs properties; properties that have been adapted for those with disabilities; properties that are specifically for the elderly and which may have a warden and/or an emergency call system. Adverts will clearly indicate any restrictions on bidding e.g. where properties have been adapted and/or are specifically for people with disabilities.

Bids from customers will only be accepted if they meet all of the eligibility criteria for the property.

5.2 Extra Care Properties

Properties which provide extra care facilities are provided under the Supporting People Programme. Customers requiring these properties will need to apply direct to the provider.

5.3 Sheltered Housing

Sheltered accommodation is included within the scheme. It is generally for people of 60 years and older and offers independent living with the added security and support of a warden service. In certain circumstances it may be advertised for people less than 60 years. Property advertisements will clearly state the age requirements of customers able to ‘bid’ for a property.

5.4 Quota system

To allow customers in lower priority Bands access to housing a quota system will be used. This allows a proportion of properties to be advertised as available only to those in a specific Band. The system will be monitored to ensure that it does not operate to the detriment of those with a higher need for housing.

44 146 Local Authorities will individually agree the quota systems in their own areas in conjunction with their partner social housing providers. They will be individually decided to meet local requirements.

Partners will have formal agreements with the relevant local authority, specifying the % lets for each band. These will be reviewed by the partnership on an annual basis.

The quota system operated in each Local Authority area will be available on the Cumbria Choice website and on request from the Offices of all partner organisations.

5.5 Re-advertised properties

Where a property is being advertised for a second time due to no suitable applicants having bid initially, it may be offered on the basis of the first to place a bid. This will be dependant on the property type and an assessment of the reason for lack of bids. The customer will still need to meet any eligibility criteria.

5.6 The ‘Bidding’ process

Properties are advertised on a weekly cycle. Customers may express an interest - ‘bid’ on any advertised property that meets their needs. They are able to place up to 3 bids each week.

Bids can be made in a number of ways: on the website using the username and password; by telephoning or visiting the office of a partner organisation; by mail; by automated telephone bidding; by proxy bidding (see below 5.7).

A person may bid for any suitable property advertised in the scheme; this means any area covered by the scheme and any landlord advertising in the scheme. Bidding is not restricted to areas where a person may have a local connection unless the advert specifies ‘local connection only’.

If a customer is bidding for more than one property they must indicate their order of preference. Customers are able to check their position on the list at the time of the bid, together with the total number of bids already placed. This allows customers to make decisions about their choice of property and the likelihood of being successful. Within the bidding period, customers may withdraw bids and make further bids.

Only the customer whose bid is successful will be contacted.

5.7 Proxy Bids

The relevant Local Authority will be able to place bids on behalf of homeless households who have not made bids or not made any successful bids during

45 147 the 6 week period. They will give due consideration as to whether it would be a ‘suitable offer’ should the bid be successful.

It is also appreciated that there will be a number of vulnerable customers who will require agencies to make bids on their behalf. Proxy bids will be taken from agencies and support groups where a formal arrangement has been agreed and the customer gives their consent for bids to be made on their behalf.

5.8 Shortlisting

At the end of the advertising period a shortlist of suitable applicants will be produced by the web based IT system.

Where priority is to be given to applicants with a local connection to the area this will be reflected in the shortlist. (See local connection 5.9)

The customer at the top of the shortlist will be made the offer unless there is reason not to do so. (See ‘The offer’ 5.11).

Where a customer is at the top of more than one short list they will be offered the property of their first preference. Where there are two households with the same Band and length of time on the register a decision to offer the property will be based on the household who would be most suitable for the property type.

Where the property advert has indicated specific requirements such as age or accessibility, only those customers meeting those requirements will be eligible for an offer.

5.9 Local Connection

In situations where priority is to be given to applicants with a local connection the process will be:

• Banding priority will apply • Within each Band those with a local connection to the Local Authority in which the property is located will be given a higher priority than those whose local connection is with other Cumbrian Authorities. • Customers with no local connection to any Local Authority partner organisation within the Cumbria Choice scheme will be given reduced preference.

Properties where no local connection is required will be identified through information given in the advert.

For some towns and villages where there is a high demand for housing additional priority will be given to customers who have a local connection to

46 148 the particular town or village. Advert details will state where a customer having a local connection to the specific town or village will be given priority. Those towns and villages operating a local connection policy will be identified within each Local Authority’s local lettings plans.

A local connection means that a customer:

• currently resides in the area in either temporary or permanent accommodation and has been resident in the Local Authority area or specified town/village for at least 6 out of the past 12 months or 3 out of the past 5 years. • Is at present employed in the district or specified town/village. The local authority should obtain confirmation from the employer that the person is in employment and that the employment is not of a casual nature. • Has close family connection with someone who lives in the Local Authority area or specified town/village. Family connection means: parents, adult children or brothers or sisters and foster carers or guardians who have been resident in the district for a period of at least 5 years. • There are special circumstances which are considered to give rise to a local connection with the Local Authority area or specified town/village. For example this would include ex-servicemen and serving members of the armed forces posted to the Local Authority area.

The partnership aims to improve mobility within the sub region and will advertise at least 10% of all partner organisation properties to all customers across the sub region regardless of local connection.

5.10 Section 106’s

Under the Planning Act some developments are subject to Section 106. This requires property to be let to customers with a local connection to stated Parishes. Where this applies only those applicants meeting the requirements of the Section 106 will be eligible for an offer of a property.

Advert details will state when the letting of a property is governed by a Section 106.

5.11 The Offer

Prior to an offer being made the landlord of the advertised property will carry out a further verification of the customer’s eligibility and priority. In certain situations the offer will not be made:

• If since joining the scheme an applicant has become ineligible.

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• On verification of the applicants’ details, the priority band was found to have been incorrectly awarded.

• The applicants’ circumstances have changed since the priority band was awarded and the applicant is no longer entitled to the same level of priority.

• The partner landlord has good housing management reason not to offer a property.

When an offer of the property is made the customer will be required to bring proof of their identity and all members of their household, to the viewing; passport, photo driving licence, birth certificate etc.

5.12 Refusing and Non Replies to Offers

Customers who have bid for and refused 2 offers of accommodation (including reasonable offers made under management discretion) will have their priority reduced for 12 months. (see section 4: 8.0 reduced preference).

Note: those household accepted as statutorily homeless and owed a duty to house will lose their priority status if they refuse a ‘suitable offer of accommodation’.

If a customer does not reply to an offer within 2 working days of receiving the offer it is deemed to have been refused and the property will be offered to the second customer on the shortlist.

Where the customer has given their consent for someone to either act on their behalf or receive the offer, we will ensure notification is provided to them.

5.13 Local Lettings

Partner organisations may draw up local lettings policies for an area or estate to meet the specific needs of that local community. Local lettings policies may be used to tackle particular management problems and/or to address imbalances in the community.

Schemes will be drawn up where either, local residents or partner organisations have identified its benefit to the local community. These arrangements will be agreed and reviewed by the Partnership.

Where such a scheme applies a property may not always be offered to the bidder with the highest priority. Local Lettings schemes will be publicised on the Cumbria Choice website and available in leaflet form to ensure openness and transparency in the lettings process.

48 150 5.14 Feedback on Lettings

A main aim of the Cumbria Choice scheme is to operate an open and transparent lettings system.

The result of lettings made through the scheme will be published on the Cumbria Choice web site and at the end of the property advert newssheet.

Section 6 The Review Process

Customers who want to query a decision made in relation to their application to register and any other subsequent decisions are first able to speak to the Officer making the decision to have that decision clarified or amended. This is

49 151 outside the review process and does not affect a customer’s right to ask for a formal review of the decision.

6.1 There is a right to a review of a decision in the following situations:

• The customer disagrees with the band in which they have been placed. • The customer considers that a decision has been reached based on incorrect information. • The customer has been treated as ineligible on the basis of their immigration status. • They have been treated as ineligible to join the register due to serious unacceptable behaviour. • Their application has been given reduced preference.

6.2 Customers will be notified in writing of decisions made in respect of the review and will be advised of their right to request a further review of that decision.

6.3 Where a customer is excluded or suspended from the Register they will be given full information on the reason for the decision. They will be advised of what action they need to take to rectify the situation and any appropriate advice or assistance available.

6.4 Customers must request a review of a decision within 21 days of being notified in writing, unless there are exceptional circumstances.

6.5 Customers must contact the partner organisation dealing with their application and will be advised to put their request in writing. However they are able to telephone or visit an office in person and request that their request for a review is taken in writing by an Officer. They must give reasons why they believe an incorrect decision has been made.

6.6 The review will be carried out by a senior officer in the organisation dealing with the application. That officer will not have been involved in making the original decision.

6.7 Cumbria Choice will aim to complete and inform the applicant in writing of the decision within 21 working days, after taking into account any additional information that has been provided by the customer. Alternatively, the customer will be advised of any time extension required to make the decision.

6.8 The customer will be advised of the reasons for the decision and their right to request a further review if they are dissatisfied with the decision.

6.9 Customers must request a further review within 21 days of being notified in writing of the review decision. Customers will only be entitled to a further review if they have new information relevant to their case, that they want the review panel to consider.

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6.10 Customers will be required to request a further review in writing and to submit additional information with their request. They will be advised that they are able to seek assistance from the partner organisation to make this request.

6.11 A review of the decision will be considered by a panel of at least 2 officers from within the partnership and one tenant representative. It will not include officers from the organisation that dealt with the review.

6.12 Cumbria Choice will aim to complete the second review and inform the applicant in writing, of the decision within 21 days of receiving all information from the customer. This period may be extended on notification to the customer.

6.13 A customer still has the right to continue with their complaint to the Ombudsman service.

Section 7 Appendices

7.1 Appendix 1 – Definition of Terms

Choice Based Lettings (CBL) - The system of letting property that gives customers choice in where they live through advertising property.

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Common Housing Register – One list for all of Cumbria of people applying for social housing (previously ‘housing waiting lists’).

Banding Scheme – the method by which customers are prioritised for social housing (previously ‘points schemes’).

Customers - those people applying to the scheme for housing.

Bidding - the term used to describe people who register an interest in a property (no money is involved in making the bid).

Adapted Property - property that is suitable for those with a physical disability i.e. where a stair lift has been fitted.

Effective Date - the date used to decide between customers in the same Band to establish who has waited longest.

The Partnership – the name for the District Councils and housing organisations that have funded, developed and continue to operate the scheme.

Letting Policy - the means by which it is decided how property will be offered to customers.

Local Lettings - short term policy made in local areas (to tackle specific, identified housing management issues) on how property will be offered that differs in some part from the overall scheme policy.

Social Housing Providers - the term for a variety of housing organisations that provide not for profit housing and included local authorities, housing associations.

Housing Options - a term used to describe a service that advises customers of all their choices and includes mutual exchanges, low cost home ownership and renting in the private sector.

Accessibility - used here the term refers to how ‘user friendly’ the service is to all people who may want to use it.

Void Times - the length of time a property stands empty before someone is able to move in.

Hard to Let - low demand property where it takes longer to find a tenant.

Management Discretion - available property that is not advertised but offered straight to an identified person.

52 154 Automatic Bidding - within the ICT system a means of expressing an interest in a property for someone, without them needing to make the bid themselves.

Starter/Probationary Tenancies - the tenancy given to new tenants by some organisations that has reduced security of tenure for 1 year.

7.2 Appendix 2 - Contact Details for all Partner Organisations

Accent Housing Association Ambassador House Dalton Road

53 155 Barrow-in-Furness LA14 1HZ Tel: 0845 6780599

Allerdale Borough Council Allerdale House New Bridge Road Workington CA14 3YJ Tel: 01900 702702

Barrow Housing Department Cavendish House 78 Duke Street Barrow-in-Furness LA14 1RR Tel: 01229 876523

Carlisle City Council Civic Centre Rickergate Carlisle CA3 8QG Tel: 01228 817200

Copeland Borough Council The Copeland Centre Catherine Street Whitehaven CA28 7SJ Tel: 0845 0548600

Derwent & Solway Housing Association Stoneleigh Park End Road Workington CA14 4DN Tel: 01900 607500

Eden District Council Mansion House Friar Gate Penrith CA11 7YG Tel: 01768 817817

Eden Housing Association Blain House Bridge Lane Penrith

54 156 CA11 8QU Tel: 01768 861400

Home Group The Copeland Centre Catherine Street Whitehaven CA28 7SJ Tel: 01946 517650

Impact Housing Association Nook Street Workington CA14 4EH Tel: 01900 842100

Riverside Housing Association English Gate Plaza Botchergate Carlisle CA1 1RP Tel: 0845 3458500

Two Castles Housing Association 3 Castle Street Carlisle CA3 8SY Tel: 01228 547463

South Lakeland District Council South Lakeland House Lowther Street Kendal LA9 4DQ Tel: 01539 733333

South Lakes Housing (ALMO) Little Aynam House Little Aynam Kendal LA9 7AH Tel: 0845 0570080

7.3 Appendix 3 - Eligibility

The Cumbria Choice Scheme acknowledges that it is the main access to social rented housing for people wanting to live in Cumbria. In this respect it aims to be as open and inclusive as it can be to those people wanting to apply

55 157 to the Register. It aims to make the scheme accessible to all, to encourage applications from people from all parts of the community, and to ensure that its policies and procedures do not discriminate.

Cumbria Choice scheme does operate a policy of not accepting onto the Register those Customers who are ineligible due to serious unacceptable behaviour. This action is taken for the following reasons:

• Partner organisations within Cumbria Choice have a responsibility towards their existing tenants to put in place policies that allow them to live in safe and stable communities. • Cumbria Choice wants to promote through its allocation policy the importance of good tenant behaviour amongst both existing and future tenants.

How decisions on eligibility will be administered: • Blanket exclusions are unlawful and will not be made: an individual assessment will be made based on the circumstances relevant to each case. • The partnership will ensure consistency in making decisions • Decisions will be authorised by a senior officer.

A customer’s eligibility for housing will be considered: • At the time he or she applies to join the CBL Register • At the point at which he or she is to be considered for an allocation of property

1.0 Ineligible due to Serious Unacceptable Behaviour

1.1 Part 6 of the Housing Act 1996 as amended by the Homelessness Act 2002 (section 160A (7)) allows the Local Authority to treat a person as ineligible where:

‘The applicant, or any member of his household, has been guilty of unacceptable behaviour serious enough to make him/her unsuitable to be a tenant’ ‘And at the time of the application, the customer is still unsuitable to be a tenant because of that behaviour’

1.2 When reaching a decision on whether an applicant is ineligible Cumbria Choice will follow the code of guidance for local authorities 2002 which sets out the 3 steps to consider when making an assessment:

• Is the behaviour unacceptable?: Behaviour will be regarded as unacceptable if it would have entitled the housing authority to a possession order if the applicant had been a secure tenant. This will be applied whether or not the applicant was actually a secure tenant. The behaviour must relate to the customer or a

56 158 member of their household. Behaviour that relates to a person who is no longer a member of the household cannot be taken into account. e.g. an ex-partner. • Is the unacceptable behaviour serious enough to make the applicant unsuitable as a tenant of the landlord?: Where there would be entitlement to a possession order the partnership will need to ensure that the behaviour was serious enough to make the person unsuitable to be a tenant of one of the housing organisations in the partnership. • Is the behaviour current or has it improved?: Unacceptable behaviour will be behaviour at the time the application is considered. Previous unacceptable behaviour may not justify a decision to consider the applicant as unsuitable, if that behaviour can be shown to have improved. • Where all three steps of the assessment have been satisfied the applicant will be treated as ineligible. • Each decision will be taken based on the individual circumstances of the case. Where a decision is taken to treat a person as ineligible to join the register the information will be collated by the officer and passed to a senior officer for authorisation.

1.3 Identifying Serious Unacceptable Behaviour: • Housing records will be used to identify issues such as: rents; repairs, estate management. • Reports to be obtained from previous or current landlords. • Reference to information held by other statutory and/or voluntary agencies. This includes information gained from police reports and where in operation through the information sharing protocol with the Police.

1.4 Customers who have unspent criminal convictions will be treated as ineligible for accommodation where they are guilty of serious offences that would threaten the safety of a local community. The Scheme will liaise with support agencies, the Police and Probation Service to consider the housing options for these customers, where appropriate. Spent convictions will not be taken into account.

1.5 Where a customer’s behaviour is deemed to be unacceptable due to a disability the relevant support agencies will be contacted. A decision will then need to be made as to the level of support someone may need to sustain the tenancy. If the level of support is deemed to be sufficient they will be accepted onto the housing register. 1.6 In situations where the customer has been accepted as priority homeless with a duty to re-house but is excluded from the register – these cases will be dealt with by negotiation between the parties outside the Cumbria Choice Scheme.

57 159 1.7 Consideration will be given to a customer making a new application if they are able to demonstrate with evidence, that the behaviour which led to the exclusion has changed and that there are no further incidents of serious unacceptable behaviour. The views of any support agency involved with the customer will be sought.

The onus is on the customer to make a new application. Customers can re-apply at any time.

1.8 In cases relating to serious offences or serious anti-social behaviour, periods in prison will not automatically be considered as evidence that unacceptable behaviour has ceased.

1.9 Customers that are ineligible to join the Register will be informed of the decision in writing and will be given the full reason for the decision.

1.10 Customers will be notified of what they need to do to be able to re-apply and where appropriate will be given advice on agencies to contact to assist them with this.

1.11 Customers will be notified of their right to request a review of the decision.

7.4 Appendix 4 - Approved supported housing schemes

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7.5 Appendix 5 - Household Type and Property Size

Household Bedsit 1 bed 2 bed 3 bed 4 bed 5+bed

Single person E 2 Adults (couple) E 2 Adults (non couple) E Single 1 child E Single 2 child Single 3 Child Single 3+ child Couple 1 child E Couple 2 child Couple 3 child Couple 3+ child Single over 55 E Couple over 55 E 2+ Adults (non couple) E

• E = households will be considered for this size of property in low demand areas. • Households with access to children will not be able to include them as part of the household when looking at eligibility for property size. • In the South Lakeland District Council area applicants without children cannot be considered for Council houses.

59 161

162 ITEM 10 - APPENDIX 2

Local Lettings Policy for South Lakeland District Council area

1. Introduction

This document sets out a Local Lettings Policy for use in the district of South Lakeland as referred to in para. 5.13 of the Cumbria Choice Allocation Policy.

The aim of the policy is to assist with achieving sustainability in rural communities and support people with a local connection to retain their links with their communities. In particular it sets out to help rural communities retain families who are often priced out of local housing markets. The settlements covered by the policy have lost most of the stock of family council housing through the right to buy and the few remaining family homes are rarely available for relet.

2. Properties covered by the policy

2.1 The local letting policy described here is for houses and bungalows in the settlements listed which do not have a s106 or covenant. These are all settlements where evidence from Housing Needs Surveys demonstrate that the small number of lets usually available annually are insufficient to meet existing housing need in the parishes concerned.

2.2 The policy also follows the principles of the Council’s planning approach which is set out in the Core Strategy ie. requirement that new affordable homes include a local occupancy restriction to the Local Area Partnership area. LDNP takes a similar approach in its Core Strategy.

2.3 The settlements included either have a population of less than 3000 which are “designated rural areas” or within a National Park. (Designated areas under 1980 Statutory Instrument 1345 Housing Right to Buy (Designated Regions) Order)

2.4 The settlements listed are those which still contain some Council properties or Housing Association homes without a s106 /Covenant.

2.5 Flats in the settlements listed are not covered by the local lettings policy.

2.6 Sheltered Housing is not included in this local lettings policy.

2.7 Most properties owned by Housing Associations in South Lakeland are already subject to a Covenant or Section 106 Agreement (Town and Country Planning Act 1990) which include local occupancy restrictions. The local occupancy restriction in the s106 or Covenant will continue to apply under Choice Based Lettings and will be detailed in the advert for the property.

3. Priority under local letting policy

In the case of a letting of a house or bungalow in these settlements the following priority will be applied:

Priority will be given to applicants with a local connection to the Local Area Partnership area where the property is located.

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See table 1 below which lists the LAP areas and the settlements containing Council properties which are located in each LAP.

Local Area Parishes included in LAP Settlements containing Partnership area Council homes covered by Local letting policy Lakes Lakes, Windermere, Ambleside, Bowness, Skelwith. Chapel Stile, Elterwater, Grasmere, Windermere High Furness Coniston, Torver, Bouth, Broughton Beck, Satterthwaite, Claife, Broughton in Furness, Hawkshead, Duddon, Coniston, Finisthwaite, Kirkby Ireleth, Colton, Hawkshead, Kirkby in Lowick, Blawith & Furness, Penny Bridge, Subberthwaite, Egton with Satterthwaite, Spark Bridge, Newlands, Mansriggs, Osmotherley. Ulverston & Low Aldingham, Pennington, Gleaston, Leece, Little Furness Urswick, Ulverston Urswick, Great Urswick, Swarthmoor,

Grange & Cartmel Haverthwaite, Lower Allithwaite, Backbarrow, Allithwaite, Lower Holker, Cark in Cartmel, Cartmel, Grange-over-Sands, Flookburgh, Haverthwaite, Broughton East, Upper Lindale, Allithwaite, Staveley-in- Cartmel. South Westmorland Burton-in-Kendal, Arnside, Beetham, Burton, Hincaster, Holme, Lupton, Crook, Crooklands, Hutton Roof, Arnside, Crosscrake, Crosthwaite, Beetham, Preston Patrick, Endmoor, Farleton, Preston Richard, Sedgwick, Hincaster, Holme, Levens, Stainton, Natland, Lupton, Mealbank, Meathop, Milnthorpe, Heversham, Milnthorpe, Natland, Crosthwaite & Lyth, Newbiggin, Oxenholme*, Witherslack, Meathop & Sedgwick, Stainton, Storth, Ulpha, Helsington, Levens, Witherslack Crook, Underbarrow & Bradleyfield . (*Oxenholme participates in the Kendal LAP but is considered a rural community for housing purposes) Sedbergh & Kirkby Kirkby Lonsdale, Mansergh, Barbon, Casterton, Dent, Lonsdale Casterton, Barbon, Kirkby Lonsdale,Sedbergh, Middleton, Dent, Garsdale, Sedbergh, Killington, Firbank.

164 Upper Kent Longsleddale, Fawcett Burneside, Grayrigg, Ings, Forest, Whitwell & Selside, New Hutton, Old Hutton, Whinfell, Docker, Staveley Lambrigg, Grayrigg, New Hutton, Old Hutton & Holmescales, Burneside, Skelsmergh & Scalthwaiterigg, Kentmere, Staveley-with-Ings.

4. How local priority works

4.1 Local connection is defined in the same way as South Lakeland District Council’s Core Strategy (see Appendix 1 below)

4.2 When a home from the settlements above is advertised priority would be given to the applicants from the local area partnership area over other applicants with no local connection to the LAP area whatever band the applicant has been placed in.

4.3 The person with a housing need with the highest priority from Bands A to D who also had a local connection to the Local Area Partnership area would normally be the successful applicant. This is subject to the house size and type being suitable for the needs of the applicant (as defined in Appendix 5 of the Cumbria Choice Allocation Policy)

4.4 Applicants from outside the Local Area Partnership would only be considered in the case when no one from the relevant LAP area who is eligible requests the property.

5. The South Lakeland Local Letting Policy will be reviewed at least annually

A group comprising representatives from South Lakeland District Council and South Lakes Housing will review the policy to ensure that it is meeting the aims described in s1. The group will consider evidence including a) evidence of housing need from the waiting list and housing needs surveys b) evidence from lettings of properties in the area covered by the local lettings policy, including demand and the priority band of the bidders. c) evidence of demand from the across the South Lakeland Area. d) Consultation with stakeholders such as Cumbria Rural Housing Trust and parish councils / affordable housing groups in the areas covered by the Local Lettings Policy.

Dated: 22 July 2010

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Appendix 1 – Definition of Local Connection

An applicant has a local connection to the locality of the LAP if any of the following circumstances apply

• The intended household has, immediately prior to such approval, been continuously resident in the locality for three years; or • The intended household has, immediately prior to such approval, been permanently employed or has a firm permanent job offer in the locality. Permanent employment will be taken to include contracts for a minimum of one year’s continuous employment, and the self-employed, on provision of evidence of a viable business; or • They are currently in the Armed Forces, in prison, in hospital or similar accommodation whose location is beyond their control, and immediately before moving to this type of accommodation they lived in the locality for at least three years; or • Former residents (who previously lived in the locality for a period of at least three years) who wish to return to the locality having completed a post-secondary (tertiary) education course within the past three years; or • They need to live in the locality either because they are ill and/or need support from a relative who lives in the, or because they need to give support to a relative who is ill and/or needs support who lives in the locality. Proof of illness and/or need of support will be required from a medical doctor or relevant statutory support agency; or • They previously lived in the locality for most of their lives and left the locality less than ten years ago (“Most of the applicant’s life” will be interpreted as over half of the applicant’s life up to the point that they left the locality, or a continuous period of twenty years up to the point they left the locality); or • They lived continuously in the locality for two years or more prior to being accepted as homeless under the Homelessness Act 2003 and placed in any form of temporary accommodation outside of the locality for up to a maximum of two years • They spent at least ten years of their school education in the locality but who left the locality over ten years ago.

166 ITEM 10 - APPENDIX 3

PART I Agenda Item No:

South Lakeland District Council Council Meeting Date: 25 May 10 Report Author: Lucy Reynolds Portfolio: Brenda Gray, Housing and Development Report from: Corporate Director (Communities) Wards affected: All Key Decision: PD/10/001/H&D Forward Plan: 18 May 10 Choice Based Lettings: Allocation Policy 1.0 PURPOSE OF REPORT 1.1 This report describes and seeks approval of the allocation policy for the new county-wide Choice Based Lettings (CBL) scheme which will replace SLDC’s current housing allocation policy. The scheme will deliver more choice and a single allocation system for people seeking homes with housing organisations across Cumbria. 2.0 RECOMMENDATIONS It is recommended that Council (1) Approves the new allocation policy for the Cumbria Choice Based Lettings system and adopts it as part of the Council’s Policy Framework. 3.0 BACKGROUND 3.1 Over the last few years local housing authorities and housing organisations in Cumbria have been working towards the introduction of a new way of allocating homes in Cumbria which provides applicants with more choice and removes the need to register on multiple waiting lists. 3.2 Government guidance sets out that all local authorities are expected to introduce CBL by the end of 2010 and the majority have either done so or will do so in the near future 3.3 The basis of CBL is that applicants who are registered for housing can see what properties are available to let and must actively chose a property which they would like to live in. The allocation policy sets out a system for prioritising applicants who apply for a property advertised using a 4 band priority system. The applicant from the higher band would normally be awarded the property.

167 3.4 The scheme will now include all housing authorities in Cumbria and all the larger housing associations resulting in a single registration system and single allocation policy for virtually all Housing Association and Council homes across Cumbria. SLDC is lead authority for the partnership. 4.0 RESEARCH AND CONSULTATION 4.1 The policy for the scheme has been produced through joint working between all the members of the partnership and close involvement of other stakeholders. Stakeholders consulted included tenants, housing support organisations in the third sector, Probation, Social Services and Parish Councils. 4.2 During the consultation period the draft policy was considered and given in principle support by SLDC Overview and Scrutiny (Communities) Committee and in principle approval by Cabinet. In addition a number of open consultation events have been held at locations throughout the county both in developing the policy and in the course of the statutory consultation period between February and the end of April. 4.3 As part of the statutory consultation, letters were sent to all people currently on housing waiting lists across Cumbria. Online and paper copies of a consultation questionnaire were available and the feedback from these has been used to arrive at the final policy. 4.4 Following the end of the consultation period the Project Board considered the results of the consultation. The principles of choice based lettings were well supported. A few small changes have been made to the Draft Allocation Policy as the result of comments from stakeholders. These are detailed in section 5 below. 5.0 PROPOSAL 5.1 The scheme presented meets the Council’s obligations under s167 of the Housing Act 1996 and related statutory guidance. This includes giving “reasonable preference” to certain vulnerable groups in the allocation scheme. 5.2 In common with all CBL schemes, the Cumbria scheme (Cumbria Choice) moves from an approach where a housing officer allocates properties from a waiting list to one where landlords advertise their vacant property. Following registration, applicants are placed in a band which matches their relative priority for rehousing. Applicants can then apply for the properties they are interested in. After the closing date, the property will be offered to the person who has the highest priority under the policy rules. 5.3 Cumbria Choice gives priority to households in higher housing need. This is achieved through a 4 tier banding system. Those with the most urgent housing need are placed in the highest band which gives them the greatest chance for any property which they bid for. If more than one household in a band applies for a property, the property will be given to the one who has been on the waiting list the longer. 5.4.1 The Cumbria Choice will give home-seekers more opportunity to move to homes across Cumbria. However the high demand for homes in some areas, including South Lakeland, means that the policy will also have the flexibility to give priority to applicants from the locality of the property where this is needed. In South Lakeland for a property in a rural area outside the service centres of Kendal and

168 Ulverston someone bidding with a connection to the local area partnership area where the home is located would have priority for the home. In addition most housing association homes in South Lakeland are subject to planning restrictions under Section 106 Town and Country Planning Act 1990 which will continue to ensure these homes would be let to someone with a local connection. 5.4.2 In all cases the policy gives priority to applicants with a local connection to Cumbria over people with no link to Cumbria unless there are no applicants from Cumbria. 5.4.3 As outlined in Section 4.0 above the results of the consultation were considered by the Partnership Board and this has resulted in a few amendments to the draft policy given in principle approval by Cabinet. A summary of these changes is shown below: Section 3.4 Priority Bands Band A • Victims of Domestic Violence and Severe Harassment and Hate Crime to remain in Band A. However they will only be placed in this band following an assessment by the relevant local authority homelessness team. Band B • Additional category added to Band B to assist with homelessness prevention. Where a household is at risk of becoming homeless and the household would be found in priority need if they were to make a homelessness application, the household will be placed in Band B. • Children Leaving Care moved to Band B from Band C but stating that all Children Leaving Care would only be housed with involvement from the Childrens’ Panel and a support plan in place Band C • Definition of Poor and Unsuitable Accommodation clarified. This group will include households living in homes in a poor state of repair and households sharing facilities with unrelated households. Section 4.9 • Clarification to be added that people who are entitled to a local connection to a District on the basis of their rights under homelessness legislation (Housing Act 1996 automatically establish a local connection to the District concerned. • Local connection policy which are specific to a particular partner will be added to the Policy as a Local Lettings Policy set out in the Appendix. Appendix 3 Eligibility Suspension from CBL due to Unacceptable Behaviour 4.5 Applicants who owe money to a landlord will be allowed to register but will not be able to apply for properties until they meet the following conditions: Current Tenants of Social Landlords must have a clear rent account before applying for an alternative property; Other applicants must reduce arrears to a minimum of £500 and have kept to a repayment plan for a minimum of 6 months

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6.0 ALTERNATIVE OPTIONS 6.1 To recommend amendments to the CBL Allocation Policy. This is not recommended. The scheme has been produced after detailed consideration and consultation. Approval is required in order to ensure that CBL goes live across Cumbria early in 2011. 7.0 NEXT STEPS 7.1 All partners are required to approve the allocation policy. The current timetable for the scheme includes a period of approximately 6 months for implementation from the time of approving the policy, including the transfer of all existing applicants to the new IT system for the CBL. From September onwards active publicity will be given to the change to the allocation process and training and assistance provided for applicants to ensure they understand how to use the new system. The current timetable provides for the new system going live in January 2011. 8.0 IMPLICATIONS 8.1 Financial and Resources 8.1.1 The details of the allocation policy will have minimal impact on the cost of introducing Choice Based Lettings. The budget for the CBL project has already been agreed. The total budget consists of £152,818 government grant and £166,100 contribution from partners. SLDC are contributing £17,205 and South Lakes Housing £15,169 to this total up to the completion of the set up stage of the project. However if there was a difficulty in agreeing the allocation policy by all members of the partnership this could lead to a delay in implementing CBL in Cumbria. This could in turn lead to financial implications to members of the partnership as the budget is based upon the project completing by the end of 2010 and going live in January 2011. In case of this eventuality SLDC has identified £900 from an existing budget in order contribute its share of the continuation of the project to the end of March 2011. 8.1.2 The CBL partners are currently considering the future co-ordination and monitoring of the CBL scheme once it goes live. One option would be to employ a part-time co-ordinator jointly funded by the partnership. Expenditure would likely to be in the region of £ 1790 pa for SLDC and £1380 for South Lakes Housing as their share of the partnership expenditure. If this option is preferred SLDC would need to consider contributing to this in setting the budget for 2011- 12. 8.1.3 It is expected that CBL will assist homeless applicants in South Lakeland to find homes more quickly and this should assist in reducing spending on temporary accommodation. 8.2 Human Resources 8.2.1 There are no implications for the Council.

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8.3 Legal The CBL Allocation Policy has been drafted with full consideration of Local Authority and Housing Association legal responsibilities in relation to the allocation of housing including The Housing Act 1996, Homelessness Act 2002, Equality Acts and Human Rights Act. Following the end of the consultation period, the Partnership is commissioning a final independent legal check of the Policy.

8.4 Social, Economic and Environmental Impact 8.4.1 Has a sustainability impact assessment been carried out? No This policy is not considered to have any significant economic and environmental impacts. The policy is considered to have positive impacts in terms of social sustainability by increasing involvement of home seekers in choosing their home and thus achieving greater contentment with the neighbourhood where they will live. The Equality and Diversity impact assessment work described below will aim to ensure choice based lettings is inclusive and that all who wish can participate in choosing a home through CBL.

9.0 RISK ASSESSMENT Risk Consequence Controls required SLDC or another partner Delays to the introduction SLDC approve the CBL to Cumbria Choice does of CBL in Cumbria. Extra Allocation Policy in May not approve the expense to the in order to meet the Allocation Policy partnership through the timetable to go live with delay. Failure to meet CBL in January 2011. the government target to introduce CBL by 2010. CBL is not implemented An outdated Allocations As above. as planned and system which does not applicants are not given provide for customer the opportunity to choice will continue. exercise choice in applying for social housing. 10.0 EQUALITY AND DIVERSITY 10.1 The Cumbria Partnership are carrying out an Impact Assessment of both the Allocation Policy and the implementation of Choice Based Lettings in partnership with the organisation AWAZ (Cumbria Group representing Black and Minority Ethnic people). Cumbria Housing organisations fund AWAZ to carry out Impact Assessments on their behalf by working with partners representing all 6 strands of diversity. Feedback from stakeholders has been incorporated into the Policy.

171 Stakeholders have highlighted issues about ensuring several groups have equal access to CBL. These include older people, people with certain disabilities, people living in more isolated rural areas. The partnership will be continuing work, in the 6 month period before the switch to the new CBL system, to ensure that operation of CBL is equally accessible to all. Once CBL begins, regular monitoring of allocations will also take place. 11.0 LINKS TO THE CORPORATE PLAN AND PERFORMANCE INDICATORS 11.1 Links to Corporate Plan CBL will assist in achieving the aims ”Housing needs in South Lakeland are addressed” and that “People in South Lakeland feel more in control of their own lives” The introduction of CBL also contributes to target 7 of the Corporate Plan “Deliver Cumbria Housing Strategy”. 12.0 CONCLUSION AND EXPECTED OUTCOMES 12.1 Approval of the CBL Allocation Policy will establish the framework for a single housing allocation system across Cumbria. Under the planned timetable homes will be let using new CBL allocation policy from January 2011. Applicants from Cumbria will benefit from having a single housing register (in contrast to 4 different waiting lists at present) and a 4 band system for prioritising applicants instead of the complex points based system currently used for allocating council housing. Applicants will be able to participate in choosing a home and will be able to see what homes are available and the priority of those who are successful in bidding for the homes. This will increase their understanding of the availability of social housing and help them to make informed choice about their housing options. Once the initial CBL scheme is established the Cumbria partnership intend to follow the example of other existing schemes to continue to develop the scheme to potentially include other housing options including low cost home ownership and private sector rentals. APPENDICES ATTACHED TO THIS REPORT Appendix No. 1 Allocation policy (final) for the Cumbria Choice CBL scheme. CONTACT OFFICERS Lucy Reynolds, Senior Housing Strategy Officer, Development Strategy. Ext. 7439 BACKGROUND DOCUMENTS AVAILABLE Document: Fair and Flexible: statutory guidance on social housing allocations for local authorities in England Communities and Local Government, Dec 2009 http://www.communities.gov.uk/publications/housing/allocationsstatutoryguidance Code of Guidance on Choice Based Lettings, CLG, Aug 2008 http://www.communities.gov.uk/publications/housing/lettingscodeguidance Code of Guidance on the Allocation of Accommodation, ODPM, Nov 2002 http://www.communities.gov.uk/publications/housing/allocationaccommodationcode

172 TRACKING Assistant Portfolio Solicitor to the CMT Scrutiny Director Holder Council Committee 10 May 10 13 April 10 13 May 10 13 May 10 4 March 10 Executive Committee Council Section 151 Monitoring (Cabinet) Officer Officer 14 April 10 NA 13 May 10 13 May 10 Human Resource Services Manager NA

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174 Choice Based Lettings Allocation Policy – APPENDIX 1 PURPOSE OF APPENDIX 1 The purpose of this Appendix is to provide members with a full copy of the allocation policy which will be adopted by the Cumbria CBL partnership and will replace SLDC’s current Housing Allocation Scheme from the implementation date of CBL which is expected to be in January 2011.

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176 PART I

Agenda Item No: 11

South Lakeland District Council COUNCIL Meeting Date: 12 August 2010 Report Author: Lawrence Conway Portfolio: Leader of the Council Report from: Acting Chief Executive Wards affected: All Key Decision: Not applicable Forward Plan: Not applicable Local Enterprise Partnerships

1.0 PURPOSE OF REPORT 1.1 This report informs Full Council of the letter dated 29 June 2010 from Her Majesty’s Government regarding an invitation to work with Government and to submit outline proposals from partnerships of local authorities and businesses to create Local Enterprise Partnerships. Members are requested to consider the principle of developing a Local Enterprise Partnership and the basis of any expression of interest. 2.0 RECOMMENDATIONS It is recommended that Full Council supports the principle of developing a Local Enterprise Partnership (LEP) based on the option(s) contained in this report and confirms the authority of the Leader and Acting Chief Executive to progress a without prejudice submission by the 6 September 2010 deadline.

3.0 BACKGROUND 3.1 The new coalition Government is making major changes to current national and regional infrastructures. The following report forms part of its signature policies, and a move to local elected accountability. On 29 June 2010, HM Government sent a letter regarding the replacement of Regional Development Agencies encouraging local businesses and councils to work together to develop proposals for Local Enterprise Partnerships. These will take on some of the roles of the Regional Development Agencies. Government is dismantling regional governance and delivery structures. For example the

177 1 Regional Planning Bodies (4NW) and Regional Spatial Strategies, the Regional Development Agencies (NWDA) and Government Offices in the Region (GONW) 3.2 At this stage, Government is seeking ideas for LEPs, but some parameters are set out in the letter. Some of the key points can be summarised as follows: • The Coalition Government is determined to re-balance the economy towards the private and voluntary sectors and regard LEPs as being central to that vision. It is looking to create new opportunities, not necessarily based on existing administrative boundaries. • Partnerships should create the right environment for business and growth in their areas, by tackling a range of issues, including planning, housing local transport, infrastructure priorities, employment and enterprise and the transition to the low carbon economy. In the letter to Local Authorities and Business leaders, the Secretaries of State for Communities and Local Government and Business Innovation and Skills have stated the Government’s intention that Local Enterprise Partnerships be formed. Such partnerships will comprise Local Authorities and business and voluntary sector leaders (with an emphasis on leadership by private sector). The LEPs are expected to provide a means to devolve central and regional responsibilities for economic growth to the local area. ‘Local’ is not defined. LEPs are expected to provide strategic leadership in their areas and to set out the key priorities. • LEPs will want to work closely with universities and further education colleges, in view of their importance to local economies and with other relevant stakeholders. In some areas tourism will also be an important economic driver. • It is vital that business and civic leaders work together meaning an equal representation on the Boards of LEPs, with a prominent business leader as the Chair. • Some local and regional boundaries currently do not reflect functional economic areas. Whilst they would expect that partnerships include upper tier authorities, from independent discussions there appears to be scope to look at alternatives. Continuing with existing structures is not an option. • LEPs will need to fund their own day to day running costs. A new fund is to be made available called the Regional Growth Fund. Government is considering how bidding arrangements for this fund will operate within the new system. To date £1 billion over two years has been tentatively allocated nationally, this is significantly lower than previous investment. LEPs and other organisations will be able to bid into the fund. A consultation paper has been prepared by the Department for Business Innovation and Skills (BIS) and the Council has been asked to comment on the proposals by 6 September. The fund will be spread over the years 2011-2012 and 2012 – 2013. At this stage, Government has provided little guidance and prescription. A white paper is expected shortly to enable legislation through the Localism

178 2 Bill, possibly by the autumn of 2010. Driven by the ‘Localism’ agenda, the emphasis is on localities designing what they need to deliver in their locality. It is expected that LEPs will be fully established by the time the Regional Development Agencies and other bodies have been dissolved in April 2012. 3.3 Due to the deadline set by Government, this meeting is the only scheduled opportunity for all Councillors to have an opportunity to express their views on a response to the Government’s request for proposals for the creation of a LEP by the 6 September deadline. At this stage, it is an Executive decision and Cabinet will be considering the matter at a special meeting to be held before the end of August. 3.4 Discussions are taking place with other authorities, business partners and the voluntary sector. A preliminary view is therefore being formed to enable a without prejudice response by 6 September 2010.

4.0 RESEARCH AND CONSULTATION Current Arrangements 4.1 In addition to the North West Regional Development Agency and 4NW, there are a number of other bodies involved in what can broadly be termed economic development. These bodies have expressed their desire to work in partnership to ensure the aims and objectives of the whole area are met. Some are to be abolished or restructured. Many new relationships are being formed, and old one’s strengthened, as new details emerge. It is clear that these new proposals set new arrangements for delivery for all stakeholders. 4.2 South Lakeland’s economy has historically been concentrated on Tourism, Farming and Agriculture, and our ambitions to diversify into other economies such as Green Energy could be better served under any new proposals put forward that would directly influence these areas. This could also be said for our urgent housing need to be addressed in new ways.

5.0 PROPOSAL 5.1 Though not prescribed, the purposes of a LEP could include an ability to: • Influence the development of local strategy and policy in areas fundamental to economic growth (housing, planning, transportation, infrastructure, higher and further education). • Influence national strategy and provision of services to promote growth (sector development, business support, national planning policy (PPS) education). • Address local barriers to growth (people, skills, infrastructure, sector development, enterprise and business development). • Influence and address local, national and international barriers to growth. • Prioritise public sector financial interventions to deliver local strategy and vision. • Promote the locality as a place to do business.

179 3 The Government is indicating the importance of promoting the growth of small to medium enterprises (SMEs) and balancing the economy towards the private sector, as part of its Big Society initiative.

Why is the consideration of a LEP important to South Lakeland? • To promote the interests and growth potential of the District’s economy. • To secure investment from the ‘Regional Growth Fund’ and future funding streams which enable growth. • To provide new opportunity to engage and empower the business community. • To provide the most significant opportunity to ‘do things differently’, to bring about real and meaningful change for businesses and their long term prospects. • To give an opportunity to implement coordinated partnership delivery (Local Authority, Business and other agencies) and to address key barriers to growth. • The formation of joint working across existing administrative boundaries could inform future options, providing opportunities to build relationships further afield. It is important that the Council is influential in the development and shaping of proposals. A LEP is the best option for the long term and future sustainability of all our communities in South Lakeland and it is vital that we ensure the voice of South Lakeland is heard through any LEP structure. What is happening elsewhere? There is no prescribed size to a LEP. Government are suggesting they cover ‘natural economic areas’. Though it is expected that upper tier authorities will be members of a partnership, it does not imply that boundaries have to follow existing County boundaries. At present we understand a single, or two-district approach, may be considered too small. Regional bodies have suggested a LEP based on the old NW Region structure is not supported or deliverable. Proposals are beginning to emerge for LEPs in the North West and nationally. What is happening In Cumbria? Cumbria is diverse and does not have a single defining economy. South Lakeland’s economy is closely tied with Barrow, Lancaster and to a lesser extent, Eden and Carlisle. Key transport links include the M6, A590, West Coast Mainline, Furness line and the Windermere line. There are opportunities in the energy coast for supply industries and for establishing the south of the County as a focus for renewable energy technology development. Other industry sectors remain key, such as Tourism, Farming and Agriculture.

180 4 A meeting of Leaders and Chief Executives is scheduled for the 12th August to discuss and agree preferences, the opportunities and risks. A verbal update will be provided to the meeting. The Leader and Acting Chief Executive have been in extensive informal discussions with the Leaders and Chief Executives of Lancaster, Barrow, Allerdale, Eden and Carlisle, plus business representatives from the Cumbria Chamber of Commerce, Federation of Small Businesses and Furness Enterprise. Discussions are due to take place with Voluntary organisations during the coming weeks. Informal discussions have also taken place between the Acting Chief Executive and Chief Executive of Cumbria County Council. Options for South Lakeland The options below have arisen from initial discussions between key stakeholders. They are still subject to further discussion and potential change: South Lakeland, Eden, Carlisle, It is thought that this option may have some limited support. The area would draw on the opportunities that could be created through having strong connectivity with the M6 and West Coast Mainline, and be complementary to the opportunities that exist within the Energy Coast. South Lakeland, Barrow, Copeland It is thought unlikely that there will be support for this option from other key stakeholders at this present time. Cumbria wide It is thought that other stakeholders will consider a countywide approach, though would seek it to be a balanced partnership between all partners. South Lakeland and North Lancashire South Lakeland has strong economic linkages with the north Lancashire area. There may be options and opportunities for a partnership with north Lancashire. The emerging options will be discussed on the 12th August. It has been indicated that Councils will be able to sit in two LEPs if all the partners agree and they make a clear case for it. 5.2 Members are requested to confirm or otherwise their support in putting forward an expression of interest to form a LEP, working with key partners and stakeholders to achieve this. 5.3 It is intended that Cabinet will formally consider the proposals at a special meeting (provisional date 25 August). 5.4 Future reports and the decision-making path will be confirmed once the formal guidance and legislation is in place.

181 5

6.0 ALTERNATIVE OPTIONS 6.1 The timescale for submissions of proposals do not, at this stage, give allowance for key stakeholders to investigate working with other partner organisations nationally with regards to issues such as the rural economy and housing. Members may wish, due to the short timescales involved, for the Council to write to the appropriate government Ministers stating the necessity and opportunity for a rural approach and highlighting how this authority could work to develop a proposal on how these long standing rural issues could be addressed through an LEP.

7.0 NEXT STEPS 7.1 If agreed, then work will continue and an expression of interest will be submitted to government following the Cabinet meeting on 25 August. 8.0 IMPLICATIONS 8.1 Financial and Resources 8.1.1 None at this stage. LEPs will need to fund their own running costs. It is envisaged that significantly less central government funding will be available in future years, and only then targeted on key priorities. 8.2 Human Resources 8.2.1 There will be staffing resources in putting together the proposal, but this will be met from within existing resources. 8.3 Legal 8.3.1 Any proposal will need to meet the requirements of the legislation and appropriate government guidance. In the absence of legislation and further guidance from Government it is not possible to comment at this stage on the steps required to set up a LEP or the legal implications. 8.4 Social, Economic and Environmental Impact 8.4.1 Has a sustainability impact assessment been carried out? No, not at this indicative stage.

9.0 RISK ASSESSMENT Risk Consequence Controls required That a LEP arrangement There will be less That any proposed LEP does not meet the needs potential to attract inward will deliver the needs of of the community, investment and funding the diverse communities Council, business, to achieve the of South Lakeland, voluntary sector and Community and working in partnership. other key partners Corporate aims and

objectives Buy-in of Partners to the LEP

182 6 10.0 EQUALITY AND DIVERSITY 10.1 An equality and diversity has yet to be carried out on this proposal. This will be required once options have been agreed. 11.0 LINKS TO THE CORPORATE PLAN AND PERFORMANCE INDICATORS 11.1 The proposals link to the objectives of the Council’s Corporate Plan and the Coalition government’s agenda for change. 12.0 CONCLUSION AND EXPECTED OUTCOMES 12.1 Members are requested to give consideration to the report. APPENDICES ATTACHED TO THIS REPORT Appendix No. 1 Letter from HM Government 29 June 2010 – Local Enterprise partnerships CONTACT OFFICERS [email protected] BACKGROUND DOCUMENTS AVAILABLE Coalition Paper

TRACKING Assistant Portfolio Solicitor to the CMT Scrutiny Director Holder Council Committee N Y Y N Executive Committee Council Section 151 Monitoring (Cabinet) Officer Officer 25.8.10 N 12.8.2010 Y Y Human Resource Services Manager N

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184 Department for Business, Innovation & Skills 1 Victoria Street London SW1H 0ET

T 020 7215 5000 W www.bis.gov.uk

Communities and Local Government Eland House Bressenden Place London SW1E 5DU

T 0303 444 0000 W www.communities.gov.uk

To: Local Authority Leaders and Business Leaders Cc: Local Authority Chief Executive Offices

29 June 2010

Dear colleague,

Local enterprise partnerships

We are writing to you to invite you to work with the Government to help strengthen local economies. The Coalition Government is committed to reforming our system of sub-national economic development by enabling councils and business to replace the existing Regional Development Agencies. The purpose of this letter is to invite local groups of councils and business leaders to come together to consider how you wish to form local enterprise partnerships.

We are working with the Regional Development Agencies (RDAs) to enable this transition. We are reviewing all the functions of the RDAs. We believe some of these are best led nationally, such as inward investment, sector leadership, responsibility for business support, innovation, and access to finance, such as venture capital funds. Some of their existing roles are being scrapped, such as Regional Strategies. The forthcoming White Paper on sub-national economic growth will set out our approach in more detail.

Separate arrangements will apply in London, where discussions are currently underway with the Mayor of London on how we can further decentralise powers, particularly in the context of the abolition of the Government Office for London.

We are determined that the transition from the existing RDAs be orderly, working to a clear timetable.

Meanwhile, we are keen to encourage local businesses and councils to work together to develop their proposals for local enterprise partnerships. We want to encourage a wide range of ideas, and to aid that, we would suggest some parameters.

Role We anticipate that local enterprise partnerships will wish to provide the strategic leadership in their areas to set out local economic priorities. A clear vision is vital if local economic renewal is to be achieved. The Coalition Government is determined to rebalance the

1851 economy towards the private sector. We regard local enterprise partnerships as being central to this vision.

Partnerships will therefore want to create the right environment for business and growth in their areas, by tackling issues such as planning and housing, local transport and infrastructure priorities, employment and enterprise and the transition to the low carbon economy. Supporting small business start-ups will therefore be important. They will want to work closely with universities and further education colleges, in view of their importance to local economies, and with other relevant stakeholders. In some areas, tourism will also be an important economic driver. Further details will be set out in the forthcoming White Paper.

Governance To be effective partnerships, it is vital that business and civic leaders work together. We believe this would normally mean an equal representation on the boards of these partnerships and that a prominent business leader should chair the board. We would, however, be willing to consider variants from this, such as where there is an elected mayor responsible for the area, if that is the clear wish of business and council leaders in the partnership area. The governance structures will need to be sufficiently robust and clear to ensure proper accountability for delivery by partnerships.

Size We have been concerned that some local and regional boundaries do not reflect functional economic areas. We wish to enable partnerships to better reflect the natural economic geography of the areas they serve and hence to cover real functional economic and travel to work areas.

To be sufficiently strategic, we would expect that partnerships would include groups of upper tier authorities. If it is clearly the wish of business and civic leaders to establish a local enterprise partnership for a functional economic area that matches existing regional boundaries, we will not object. We will welcome proposals that reflect the needs of every part of England, not least areas that are economically more vulnerable. Government is keen to work closely with and through capable local enterprise partnerships which meet these criteria.

Going forward As set out in the Budget, we will publish a White Paper later in the summer, which will set out the Government’s approach to sub-national growth. Legislation to abolish RDAs and enable local enterprise partnerships was announced in the Queen’s speech and is expected to be introduced to Parliament in the autumn.

We would therefore welcome outline proposals from partnerships of local authorities and businesses, reflecting the Coalition Government’s agenda, as soon as possible, and no later than 6 September.

Yours sincerely

The RT Hon Dr Vince Cable MP The RT Hon Eric Pickles MP Secretary of State for Business, Secretary of State for Innovation and Skills Communities and Local Government and President of the Board of Trade 1862 Item No.13

EXECUTIVE REPORT TO COUNCIL

Period April to July 2010

This report represents a report on the work programme of the Executive for the information of all Council Members. Any questions arising from this report may be addressed during Cabinet Question Time, or directly with the relevant Portfolio Holder.

Executive Decisions

The Executive Decisions made since the previous Council meeting on 30 March 2010 have been published and made available to Members, giving reasons for the decisions and alternative options considered where appropriate.

Reports from Leader and Portfolio Holders

Attached to this report is a summary of meetings attended by the Leader and Portfolio Holders during this period together with details of current issues.

Councillor Brendan Jameson Leader July 2010

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188 SOUTH LAKELAND DISTRICT COUNCIL

Council

Date of Meeting: 12 August 2010 Part I Report From: Councillor Brendan Jameson Agenda 13(1) Leader of the Council/Promoting South Item Lakeland Portfolio Holder No: Report Title: Executive Report

Client Issues The following matters have arisen with my Portfolio:- The past weeks have involved challenging times for many agencies, including local authorities. The new coalition Government’s demand for cuts and efficiency savings is requiring everyone to examine their budgets and look for reductions of between 25 and 40% over the next five years, depending on who one listens to. These savings are unlikely to be realised in house, and we have already developed joint working arrangements with Barrow and Eden Councils, resulting in savings of over £500,000. The partnership arrangement between SLDC, Kendal Town Council, and Kendal College is continuing to progress, with the completion of the stage one application for Heritage Lottery funding for Kendal Museum. Although SLDC has money set aside to make the museum DDA compliant, a successful Lottery bid will allow an enhanced visitor attraction, the installation of up to date humidity controls, improved storage facilities, and a regular rotation of the museum’s collection.

Meetings/Training attended

30 June: Kendal Mountain Festival Stakeholder’s Meeting 1 July: Lakes Alive Meeting Monthly meeting with Tim Farron Kendal Town Council 2 July: Informal Cabinet 5 July: Meeting re £90,00 for Kendal’s Parks 6 July: Stuart Langhorne, Leader, Lancaster City Council.

189 7 July: Jason Yates, Cumbria County Council 8 July: South Lakes Foyer presentation at the Castle Green Health and Well Being SLSP 12 July: CCC Health and Wellbeing Scrutiny committee/ Community involvement SLSP Pete Ridgway’s presentation Kendal neighbourhood forum 13 July: Member panel 14 July: Cabinet/ Management Team policy away day 15 July: Single community strategy stakeholder workshop Equality meeting with Hilary Stephenson and Simon Blyth 16 July: Affordable Housing SLSP or CCC Scrutiny management board 19 July: CCC Liberal democrat meeting Meeting re Co-ordination between CCC/District Council on Economic Regeneration 22 July: Licensing Sub-Committee Meeting with Lawrence, Stuart Langhorne and Mark Cullen 23 July: Everyone's 2012 - North West Annual 2012 Conference 26 July: Finance/ budget training 27 July: Staff briefings at Kendal Meeting with David Birchall, Small Business Federation Workplace cycle challenge awards presentation 28 July: K Village opening Meeting with Harry Knowles, Furness Enterprise Staff briefings at Ulverston 29 July:

Date: 05/08/2010 Version No: Amended by: 2 190 Kirkby Lonsdale town council – meeting with councillors

30 July: Local Committee for South Lakeland 2 August: Kendal Town Council 3 August: Interviews with consultants 4 and 5 August: Leadership academy 6 August: LONDON 2012 - Olympic park tour 9 August: Scrutiny briefing and informal cabinet 10 August: Meeting with the Chairman of SLDC, Communications Manager Laura Bell Louisa Balderson and Julie Armitage, Paddlers for Life. 11 August: Cabinet Cumbria 2012 conference task group 12 August: Joint Districts Meeting to discuss Local Enterprise Partnerships

Regional/National/Other Issues The Government announcement regarding the abolition of the Regional Funding Agencies has raised a great deal of concern within Cumbria. Although Cumbria has received some £300,000,000 over the last six years, hardly any has found its way into South Lakeland. Yet even that was improving slightly, with the NWDA providing £150,000 towards the Kirkland Regeneration Scheme, and the possibility of funding for the development of New Road Common. As yet, neither has there been a decision on whether Government will allow the agreement between NWDA and the Tour of Britain cycle race organisers to go ahead, which would have funded a start stage of next year’s race to begin in Kendal. Agencies such as Business Link will also disappear, and it will be a challenge to see who will take on some of the useful work that BL undertook. On the brighter side, the Comprehensive Area Assessments are scrapped, and it will be interesting to see if Government allows authorities to be assessed by Peer Members from other councils.

Looking Forward In the coming weeks, work will include:-

Date: 05/08/2010 Version No: Amended by: 3 191 Discussion with other Councils and the business community representatives has taken, and will continue to be a priority, due to the introduction of the Local Enterprise Partnerships. Central Government is not prescriptive on the formation of LEPs, but has stated that the status quo is not an option, nor is the opportunity for a District Council to continue in isolation. I am firmly of the belief, that local authorities and other agencies, such as the police and NHS, are only scratching the surface, regarding joint procurement, shared services and partnership working. We all need to accelerate this process, as the potential savings will run into billions of pounds throughout the country. We are continuing with the process of appointing a new Chief Executive to replace Pete Ridgway, who was given an excellent send off by staff and Members recently.

Date: 05/08/2010 Version No: Amended by: 4 192 SOUTH LAKELAND DISTRICT COUNCIL

Council

Date of Meeting: 12 August 2010 Part I Report From: Councillor Brenda Gray Agenda 13(2) Central Services Portfolio Holder Item No: Report Title: Executive Report

Meetings Informal and formal Cabinet Parish Council meetings Various meetings with Officers Full Council Planning South Lakes Housing progress report meeting Tenants Committee Supporting People Commissioning Body away day. Affordable Housing Task Group SLH Board Meeting Ethical Governance LDF steering group Corporate Strategy Performance Group (CSPG) Stock Options Member Development Site visit Change of portfolio Joint Consultative Panel Lake Admin Cabinet away days x2 Transformation Board North West Employers Innovation Fund event South Westmorland Neighbourhood Forum Access to Services working group Upper Kent Neighbourhood Forum Kendal Foyer presentation by Impact Housing Member Development Opening of the Lowry exhibition, Abbot Hall North West Employers AGM and presentations on Human Resources CSPG Capital Prioritisation Group Training International finance reporting Standards Training Finance x 2

193 Report - For information Member Services is the bundle of support available to elected Members. It is primarily resourced by 1 FTE Member Support Assistant and the Democratic Services Manager. However, under the Council’s restructure, additional support is available from the rest of the Democratic Services Team as required. The hub of Member support is centred on the roll-out of the annual Member Development Programme. This is a twelve month programme of activities designed to ensure that the identified development needs of Members are addressed. There are a number of “core” areas for development which form the basis of the Programme e.g. Planning and Licensing training, as well other topics which Members themselves identify as being a priority need through the Personal Development Planning process, and topical issues e.g. Local Area Partnerships (LAPs). As Member development needs are essentially dynamic and change in response to circumstances, the Programme itself is not set in stone and must be able to accommodate the evolving needs of our Members. A Cumbria-wide, plus Lancaster City, Portfolio Group has been set up to look at how we could pool resources and increase opportunities for Member training.

All Personal Development Plan interviews have either been held, or appointments arranged, for our new Members.

Emergency Planning - Below is an excellent example of how LAPS can be used. Perhaps others would like to do something similar.

The Central Lakes LAP has so far held one workshop looking at Community Emergency Planning best practice and a community emergency plan template, this was on 21/07/2010. The Keswick Community Emergency Plan and other good examples were talked about by Chris Briggs from CCC Resilience Unit and this helped the group to learn more about the process before making a start on the planning work. There will be a follow up workshop on 04/08/2010. At this second workshop the group will work on identifying risks, communities, resources etc and this will help to populate the community emergency plan template. Another workshop will be offered if this second one is not enough.

Staff Development - North West Skills Award

The Council signed up to this challenge at the end of June 2009 to be completed by December 2010. It is a great credit to Councillor Hilary Stephenson, the Human Resources Department staff and all those who took part in the training that this award has achieved six months ahead of the scheduled date.

Looking Forward Member Support Continue the roll out of laptops to Members to encourage less use of paper and postage. This will be financially very helpful to SLDC and reduce the volume of paper that has to be recycled…..eventually.

Hopefully! Finally! Achieve a universal broadband system to enable both Members and visitors to use non SLDC laptops within the whole building.

194 Member Development Work is on-going towards acquiring Level 2 of the North West Charter Award for Member Development.

Legal Services - North West Legal Consortium The Council is now part of the North West Legal Consortium.

The purpose of the collaboration has been to maximise efficiencies and increase the effectiveness of the external legal support that the participating authorities require to supplement their in-house provision. To this end, following a rigorous procurement exercise through its lead authority, Sefton Metropolitan Borough Council, the Consortium has entered into arrangements with external solicitors’ firms for the provision of legal advice and support and for novel arrangements with a large number of Barristers’ Chambers with fixed rates for the provision of advocacy and advice.

The Solicitor to the Council has been appointed to the Board of the Consortium and this will add further benefit through networking, and raising the profile of the Council within the consortium membership.

195

196 SOUTH LAKELAND DISTRICT COUNCIL

Council

Date of Meeting: 12 August 2010 Part I Report From: Councillor Hilary Stephenson Agenda 13(3) Communities and Well Being Portfolio Item No: Holder Report Title: Executive Report

Client Issues The following matters have arisen with my Portfolio:- What follows is an insight into some of the many exciting projects which are moving forward under the banner of ‘Communities and Well-being’. As you might expect it has been most interesting and I have met some of the many people who are working in partnership with us at SLDC to support our mission of making South Lakeland the best place to live, work and visit. Local Area Partnerships The recent cycle of meetings is now completed with each one now having held either three or four meetings, and each is now working through their priorities. They are considering potential uses for the £15k revenue each has access to, and the proportion of the community capital pot they can influence. LAP administrators have recently been interviewed, and offers of appointments made to the respective partnerships. I am delighted to report that they are beginning to work with increasing efficiency, with material benefit to the communities being realised. Community Engagement The consultation strategy, Toolkit and Annual Programme have been approved by Cabinet, with a programme of training for staff and councillors as well as partners scheduled for the Autumn. Community Safety Partnerships Formally known as the Crime and Disorder Reduction Partnerships (CDRPs), the central government offices now refer to them as Community Safety Partnerships, though as yet there is no requirement to formally change their name. Though the title, ‘CSP’ covers the wider remit of work undertaken by partners such as home safety visits by the ‘Fire and Rescue Service’, you will probably be aware that in Cumbria we already have a CSP, which is the Cumbria Strategic Partnership. South Lakeland Crime and Disorder Reduction Partnership (SLCDRP) Executive Group have agreed to retain the original name until the requirement to change it becomes compulsory. There is no news to date about how the future for these partnerships may look, though the status quo is not expected to be an option. In the meantime the task groups are carrying on with their planned activity. There is a cut of £53k from the Area Based Grant (ABG) for 2010/11 for Cumbria overall. SLCDRP is likely to lose an estimated £5k revenue in this financial year, taking the total budget down to £56k. As the CDRP Executive Group had not allocated the full revenue element of ABG, the reduction won’t affect any projects already underway or planned. Significant Successes The art project in the Romney Road subway is now complete. CDRP and CCC provided funding towards the cost of new lights in the subway, and Impact Housing have worked on a mosaic art

197 project. The result is that the walls are now alive with mosaic tile patterns and the whole area is now brighter, lighter and a pleasure to walk through. The Probation Trusts Community payback team accomplished the hard work, cleaning and painting the walls and ceiling and hanging the tiles. Kendal has kept the Safer Business Award following a successful re-assessment. The Chief Constable of Cumbria, Craig Mackey, presented the award. Local Democracy – Demo-X-Change Demo-X-Change is a partnership project between the District Council, The Brathay Hall Trust, Connexions and CCC. Its aim is to deliver training to councillors about how to engage with young people, to be delivered by young people. The pilot workshop happened in April and the complete training session is to be offered to councillors from all tiers of local government in September. In an ideal world the gap between pilot and the complete programme would have been narrower, however elections, exams and holidays have intervened in the process. The Citizens Award of AQA will accredit the work of the young people. Arts Council England funding cuts

In June, along with all DCMS funded bodies, Arts Council England (ACE) were asked to model reductions of 25 - 30% over four years to their funding programme but these figures are not set in stone. Cuts of up to 30% would mean significant change. They would no longer be able to fund many organisations in the way they have been able to date. The Arts Council is arguing to minimise the cuts - and will argue that any cut needs to be managed intelligently, and in a way that protects the achievements of the last 15 years.

At the time of writing all ACE's Regularly Funded Organisations (RFO's) have been asked to model prudently for a minimum of a 10% reduction in funding for 11/12. This figure is not final, but what ACE are suggesting is a reasonable figure for RFO's to address at this point.

As the picture remains uncertain ACE are going to run their next funding process in two stages: investment decisions for 2011/12 (year one) will be separated from years 12/13-14/15. Funding decisions for 2012/13 to 2014/15, post October settlement, will be firmly set within these priorities, the funding context, and aligned to the long-term goals.

Reductions in funding will have a significant impact on the RFO's in South Lakeland and investment in other projects and initiatives.

ACE have stated that it’s important that in this time of short-term cuts they keep their eye on the big picture, so that whatever cuts they have to make now, art can still thrive over the next 10 years. 2011/12 will be used as a year of transition that builds towards a new approach to the arts landscape, shaped by ACE's ambitions for the arts. The Arts Council is developing Achieving great art for everyone, a 10-year strategic framework for the arts, setting out clearly what they want to achieve over the next 10 years. Welcoming the World (WTW) This is an installation of flags commissioned by Kendal Arts International & originally created for Lakes Alive! 2009. SLDC has commissioned the artist Wendy Meadley to create an installation of 60 of the flags in Ford Park Ulverston as part of the re-opening of the Sir John Barrow Monument celebrations on 22nd August. WTW premiered in a dramatic hilltop setting on the castle in Kendal at Mintfest last year and 250 people from all over Cumbria created the designs. The flags were made at Lanternhouse during a residency last July. Ulverston International Music Festival SLDC supported the expansion of Anthony Hewitt's Ulverston International Music Festival at Coronation Hall. Now in its 6th year the festival is continuing to go from strength to strength and is a critical part of the music programme at Coro alongside Manchester Camerata and Lake District Date: 05/08/2010 Version No: Amended by: 2 198 Summer Music. SLDC worked with UIMF to develop a schools workshop programme, family concert and community workshop programme into the overall festival offer which was well received by those participating. Arts Strategy Action Plan The refresh of the Arts Strategy Action Plan for South Lakeland is being done in four stages. The first two stages - a mapping of the activity on actions that have been achieved over the last three years and prioritisation of objectives -has been completed. The next stage is to prioritise areas for development and identify new projects. The final stage will be to write and complete the refresh moving on to a new 3 year action plan. The refreshed document is due to be completed by the end of September 2010.

Major Events

Tour of Britain - The Arts & Events Manager is liaising closely with the NWDA's Head of Regional Events regarding the planned visit of the to Kendal for a stage start in Kendal in September 2011 which would be the last Tour of Britain cycle race before the Olympics in 2012.

SLDC has been working closely with the NWDA who had entered into a contractual agreement with the Tour of Britain to host the Tour of Britain cycle race in the North West and for it to come to Kendal for a stage start in Kendal in September 2011 which would be the last Tour of Britain cycle race before the Olympics in 2012.

Due to the recent cuts announced this is now in jeopardy and Members will be kept informed of developments.

Mintfest - Work with Kendal Arts International on this years Mintfest, Kendal's International Festival of Street Arts which will take place from 2nd - 5th Sept began last year and SLDC continues to support KAI for its Lakes Alive programme which is being recognised and commended nationally as part of the national Cultural Olympiad and legacy programme for London 2012. Mintfest is the flagship of the Lakes Alive programme and already recognised as one of the top 8 outdoor arts festivals in the country. This year Mintfest will include two days of town centre street arts and will feature a new international summer school, community carnival workshop weekend, and also host the UK showcase for outdoor street arts attracting around 150 national and international delegates from around the world.

Ulverston Celebrates - SLDC is working with Ulverston Town Council in organising and managing the programme of celebrations to mark the completion of their major £1.2 million restoration project on the Sir John Barrow Monument. The event 'Ulverston Celebrates' takes place on 22nd August starting with the re-opening of the Sir John Barrow Monument and culminating in 'Happening Hoad' a spectacular evening firework display on Hoad Hill featuring the monument which, because of the complexities of the site, has never been done before. Another first for Ulverston.

Lakes Leisure • Lakes Leisure has recently agreed a partnership with the Lakes Secondary School to deliver all of their afterschool and extra curricular activity. The Lakes School are a specialist sports college, hence are required to coordinate all PE and sport in local secondary and primary schools. Lakes Leisure will receive around £28,000 a year to deliver the extra curricular part of this program across South Lakeland. Lakes Leisure are in the process of recruiting two part activity leaders to help deliver the 800 hours we are now contracted to delivery. • Likewise in Ulverston, Lakes Leisure have agreed a partnership with Furness School Sport Partnership (which covers Barrow and Ulverston) to deliver 200 hours of tennis and multi skills in the Ulverston area. Lakes Leisure has been awarded £3,900 to deliver these hours Date: 05/08/2010 Version No: Amended by: 3 199 and will be using our existing coaches as well as the new activity leaders as mentioned above to delivery these hours. Meetings/Training attended The meetings and briefings I have attended during the previous eight weeks or so have made me very much more aware of the breadth of involvement for the community which our commitment to Arts, Events, Sport and Leisure, Community Engagement and safety aspects engenders and supports. The quality of commitment to the agenda of ‘Making South Lakeland the best place to live, work and visit’ is outstanding. May 19th LAP Central Lakes 21st Equality Award Judging Panel NWEO 26th Cabinet June 3rd Arts and Events briefing 4th Lake Administration Committee 8th Cabinet/SMT Away Day 9th Cabinet 10th CDRP Briefing 16th Lakes Leisure Briefing 17th South Lakes Junior Citizens Event, Windermere Fire Station 18th Queen Katherine School Red Shed Gardening and planting for Kendal in Bloom Age UK ‘Health and Happiness Taster Event, Castle St Centre 21st St Mary’s Infants ‘Pick Up The Pooh’ Clean Up 22nd LAP Central Lakes 23rd Peer Assessment for ‘Achieving’ level of the Equality Framework 29th Equality Champions Group, Barrow Full Council 30th Kendal Mountain Film Festival Stakeholders meeting July 1st Schoolympics, Penrith 2nd Skills Award Presentation to SLDC, Lowry Centre, Salford 5th Coronation Hall briefing 6th Older People’s Programme Board Community Engagement Briefing 7th Scrutiny briefing Cabinet Brewery Board Meeting 12th Safer Business Award Event Community Involvement Task Grup Arts and Events Briefing 13th ‘Developing a Management Plan’ Your Green Space, Ravenstonedale 14th SMT/Cabinet Away Day 15th Single Community Strategy Stakeholders’ Workshop Achieving Equality Briefing 16th Lowry exhibition, Abbott Hall 27th Fun Sports, Lakes Leisure, Ulverston Equality Champions meeting, Mintsfeet Depot, Kendal 28th Ghyll Scrambling, Tilberthwaite, Lakes Leisure CHAOS Activities 29th Visit to Lakes Leisure, Ulverston to observe tennis and swimming activities for young people, and be briefed about the outreach projects currently available.

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Regional/National/Other Issues Area Based Grant (ABG) beyond 2011 This is the last year of the current ABG and we are waiting for news on what funding, if any, will be available for CDRPs/CPSs. On 16th August South Lakeland and Barrow CDRP are hosting a half-day workshop about the statutory requirement to reduce re-offending. There will be presentations on a proposed Integrated Offender Manager model for Cumbria and the Vulnerable Locality Index (VLI). Through VLI we can assess a locality based on the levels and types of crime it is subject to. The focus will therefore shift to the levels of damage a given locality endures rather than on individual offenders. A working Group will make recommendations about the most appropriate approaches for South Lakeland to the executive group. • Lakes Leisure has recently agreed a partnership with the Lakes Secondary School to deliver all of their afterschool and extra curricular activity. The Lakes School are a specialist sports college, hence are required to coordinate all PE and sport in local secondary and primary schools. Lakes Leisure will receive around £28,000 a year to delivery the extra curricular part of this program across South Lakeland. Lakes Leisure are in the process of recruit two part activity leaders to help deliver the 800 hours we are now contracted to delivery. • Likewise in Ulverston, Lakes Leisure have agreed a partnership with Furness School Sport Partnership (which covers Barrow and Ulverston) to deliver 200 hours of tennis and multi skills in the Ulverston area. Lakes Leisure has been awarded £3,900 to delivery these hours and we’ll be using the existing coaches and the new activity leaders as mentioned above to delivery these hours. • Lakes Leisure has recently been consulted on the Lake District National Park Authority master plan and have expressed interest in working with the national park on the redevelopment of Brockhole. • Lakes Leisure has recently been meeting with the private sector to look at modernisation option at the three centres, with a view of developing a strategy of redevelopment. • Finally, Lakes Leisure’s senior management are planning to meet with senior officers from the PCT to look at better partnership working. The meeting is scheduled for the 24th August.

London 2012/Cultural Olympiad

1) On behalf of the Cumbria 2012 group SLDC has worked on a proposal submitted to the North West regional London 2012 committee called 'Lakes Alight' to celebrate the 'fastest highest longest' to bring the Olympic torch to Cumbria for 2 days stating five key reasons why .The olympic flame lit in Olympia will arrive in the UK on 18th May 2012 and will go on a 70 day journey around the nations and regions of the UK with the aim of 95% of the population being no more than one hour away from the Torch. By this Autumn Cumbria will hopefully know if the proposal has been successful. 2) Following on from an initial paper prepared for the Portfolio Holder earlier this year a detailed report is to be prepared for Cabinet outlining South Lakeland’s engagement with London 2012 and identifying potential areas for development for a local district wide 2012 Cultural Olympiad programme. The report will be submitted to Cabinet in October. Great North Swim SLDC is working as a key location partner on the Great North Swim on this years event which will double in size to 10,000 swimmers making it the biggest open water mass participation swim event in the UK and possibly Europe. Last years event was highly successful generating £1.5 million Date: 05/08/2010 Version No: Amended by: 5 201 benefit to the local economy and the Windermere swim will be filmed by Channel 4.This years event will be bigger and even better with a new additional inaugural ' Windermere 500' race for young people and those wanting to try their hand at open water swimming undertaking a half mile swim. Some of the elite swimmers will also visit local swimming clubs the night before the swim to give tips on training techniques and distance swimming to aspiring young local swimmers. Councillor Clare Feeney Johnson and I are preparing to join in the fun on September 5th! Looking Forward In the coming weeks, work will include:- We are working hard to get all the resources together to implement the much needed improvements to the box office system at the Coronation Hall. LAPs Consideration is being given to undertaking a review of the progress of LAPs, and this is to be programmed for later on this year, with actions for improvement included. Lakes Leisure

Lakes Leisure has recently been consulted on the Lake District National Park Authority master plan and have expressed interest in working with the national park on the redevelopment of Brockhole. They are also developing relationships in the private sector to look at modernisation option at the three centres, with a view of developing a strategy of redevelopment. Finally, for now, Lakes Leisure’s senior management are planning to meet with senior officers from the PCT to look at better partnership working. The meeting is scheduled for the 24th August.

Date: 05/08/2010 Version No: Amended by: 6 202 SOUTH LAKELAND DISTRICT COUNCIL

Council

Date of Meeting: 12 August 2010 Part I Report From: Councillor Graham Vincent Agenda 13(4) Economy and Enterprise Portfolio Item No: Holder Report Title: Executive Report

Client Issues The following matters have arisen with my Portfolio:- Kirkby Lonsdale Kirkby Lonsdale Town Council have ambitions to deliver services that are central to the well being of their town. They propose to do this through a community programme. South Lakeland Officers are working with the Town Council to help devise the best, and most sustainable, scheme to enable such ambitions to be realised. A Development Trust is likely to be the best way forward A clear line of communication has been established between Kirkby Lonsdale Town Council and South Lakeland. I’m pleased to inform Council that Councillor Alan Muirhead is the principle contact for communications and any public announcements. I view the progress made in recent weeks with great optimism, and feel that a purposeful new start has been made here. To help the process move forward,£7,000 has been committed from the Economic Development Budget as match funding to enable a sustainable delivery mechanism to be devised. Sedbergh A master plan to support the Sedbergh Townscape Initiative is to be produced. Twelve consultants have applied to deliver the master plan, and their submissions are currently being evaluated. Funding for the project has been difficult to raise despite the wide community buy-in to the project. Organisations that have committed funding are South Lakeland, Sedbergh Parish Council, the Local Area Partnership, Yorkshire Dales National Park Authority and Sedbergh School. Hawkshead South Lakeland is involved with Hawkshead Parish Council and South Lakes Development Trust, to bring about Public Realm Improvements to the centre of Hawkshead. The first stage is to carry out a Pedestrian Audit. Ulverston RDPE funding to give three year support for the employment of a Project officer has been secured. Sir John Barrow Monument. The opening date looms ever closer, and this project is now consuming a significant amount of officer time. South Lakeland is not the delivery body, and it was not intended to be a major contributor to delivery. However, in order that the project is completed and is on time, I have agreed that this significant support be applied to the project. North Lonsdale Road Development Site. We are still awaiting Environment Agency pre- planning advice on water table levels and flooding amelioration measures. When they are understood, we will be able to go to Developers for expressions of interest.

203 Ulverston Canal. The new Trust to oversee the canal maintenance, has started to look at the Ulverston Canal Master Plan with a view to refreshing the aims and ambitions, and looking at what has been achieved to date. Kendal Public Realm. The Taylor Young Design guide for public spaces, street furniture and suggested projects has now been forwarded to local Committee for approval on highway matters. There were no objections from the two County members on Kendal Futures Board. New Road Common The Taylor Young designs for the reinstatement of the common have been approved by Cabinet, and have been forwarded to Local Committee for highways approval. Kendal Signage. Work on bringing finger post signs into line with the new Kendal maps is about to start (this includes locations of posts, finger direction and content). Shop Front Programme. This very successful scheme has had 73 enquiries, and as such has run out of funds. A small amount of additional funding has been identified to continue this effective business support. Kirkland. Phase one (the major part of the project) has been completed. The next phase utilising 106 funding is being worked up to provide street furniture etc. This project has received significant recognition as a model of ‘Gateway regeneration’, and is being studied by North Lancashire and Blackburn for their own projects. Car Parking. A trial of ’payment by mobile phone‘ has started in the Westmorland Shopping Centre car park. This is part of the new strategy to modernise payment methods, making payment for parking more user friendly, and to reduce the dependency on cash. To date the trial is going satisfactorily although take up is cautious. Meetings/Training attended March 2010 15th Local Committee 16th Farfield Mill funding Kendal Futures Board Cumbria Chamber Commerce Planning open Forum 22nd Sedbergh Parish Council 23rd CREA Board meeting 24th Cabinet H.R.Committee 25th New Road – Management 30th Housing stock options MTFP review Council April 2010 8th Eden & South Lakeland forward 13th Time management training 14th Cabinet 16th Mountain Film Festival Quaker Tapestry Ulverston Business Alliance 21st Kendal F.B 22nd Cumbria Renewables Panel-Carlisle 27th K Village 106 monies. Kirkland Partnership 30th Cumbria Tourism-TIC’s H.R .Appeals Panel May 2010-07-22 10th Sedbergh Parish Council 11th 32 Market Place 12th Progress Meeting – Director Stramongate School –Kendal Date: 05/08/2010 Version No: Amended by: 2 204 13th Canal Head- Public Exhibition 17th Kirkby Lonsdale Development 18th Farfield Mill 21st H. R. Committee 24th Morcambe Bay Partnership Cumbria Chamber Commerce 25th Stramongate School 25th Council June 2010 2nd Business Link 3rd New Road – Management Kendal F.B 8th Cabinet / Management 9th Cabinet away day Furness Enterprise 10th Eden & SouthLakeland Forward 14th Kirkby Lonsdale- development 15th Furness Enterprise 18th Cumbria Chamber Commerce 22nd Braithwaite Fold Site 23rd L A P – Kendal 25th CREA Board 29th Council July 2010 1st Low Carbon Lake District 2nd Task & Finish- Car Parking 7th Cabinet 12th Business Against Crime 14th Man. Team/Cabinet 15th LTP – review Kendal F.B. Annual meeting 20th H.R. Appeals Kirkby Lonsdale Parish Council Kendal Tourism Group

Regional/National/Other Issues Regional Development Agencies The Coalition Government has announced that the NWDA will cease to exist on March 31st 2012. NWDA has announced that they will only be funding projects that have written funding committed, This will consume 90% of their known funds. This looks very gloomy for South Lakeland in terms of RDA funds. We will continue to seek funds from other sources. Empty Shops Survey The second quarter survey which now includes the positions in Bowness, Windermere and Ambleside has been completed. Kendal has 46 empty shops (11.33%) in June 2009 there were 52 empty shops. Ulverston has 17 empty shops (10.83%) June 2009 there were 18 empty shops Bowness has 9 empty shops (6.5%) Windermere has 5 empty shops (4.5%) Ambleside has 7 empty shops (4.49%) Business to Business ( B2B) Event A very successful B 2 B event was held in Ulverston. In excess of eighty businesses attended the network event which also featured two speakers, dealing with Marketing and business support. The event was so successful it was difficult for speakers, exhibitors, and organisers to get home! A third event is planned for next year in the Lakes area. I will of course ensure that Councillors are aware of the date and location when finalised. Date: 05/08/2010 Version No: Amended by: 3 205 Looking Forward In the coming weeks, work will include:- Tourist Information Centres There have been 17 responses to the request for expressions of interest to run Tourist Information Centres. The interested parties vary from individuals to larger groups interested in looking further at the opportunities presented by running one or in some cases all of the TIC’s currently offered for examination. Packs dealing with the performance of a centre for which the expression was made will be forwarded to the interested parties. Bowness Bay The Master Plan Framework document has been published by the L.D.N.P. Discussions continue with landowners around the Glebe, seeking the best opportunities to start the delivery of projects. This is a huge project to improve the public realm. It is widely recognised that to do nothing will have a serious negative economic impact on South Lakeland’s Tourist industry. South Lakeland is the biggest landowner in the bay, and as such will have a major part to play in a successful enhancement scheme. It is recognised that public support funding such as NWDA money will not be available. ‘K’ Village Development This £100 million development is expected to be completed in September although the shopping area will be opened at the end of July 2010. This development presents a major opportunity for Kendal businesses to increase customer potential.

Date: 05/08/2010 Version No: Amended by: 4 206 SOUTH LAKELAND DISTRICT COUNCIL

Council

Date of Meeting: 12 August 2010 Part I Report From: Councillor Clare Feeney-Johnson Agenda 13(5) Environment and Sustainability Item No: Portfolio Holder Report Title: Executive Report

Client Issues The following matters have arisen with my Portfolio:- As this is my first report to Council, I will bring you up to date with all the work I have undertaken since being appointed to Cabinet. The new European legislation regarding private water supplies, testing and sampling came to us in May. This will bring changes to the number of tests per year we need to carry out, the costing system (parameters set nationally) and what the water is actually tested for. In South Lakeland we have the highest number of private water supplies, in excess of 2000. This makes partnership working across the districts/Cumbria unattractive to others. Our aim is to keep the costs down to residents and commercial users but it must be remembered the reasoning for this is to ensure the water being drunk is safe. Health problems caused by contaminated private water supplies costs the NHS millions each year and can have devastating effects on the end users. May/June saw the annual transition of Gypsies and Travellers making their way to Appleby. This year the importance of all agencies working together to facilitate this process was imperative. Last year as we know saw communities living along the annual route brought almost to breaking point. After a series of public meetings, multi agency meetings and communication with Gypsy and traveller groups earlier on in the year plans were put into place to address the main issues. I visited residents, businesses, gypsy and travellers groups immediately after the fair and whilst not every issue was solved the general consensus was very positive. Rob Kitchen & John Barwise were instrumental in this year’s success and we as a council should thank them for their commitment and resolve to make that happen. Meetings/Training attended 21.5.10 Informal cabinet 24.5.10 Assistant Director meeting 26.5.10 Cabinet 28.5.10 meeting at canal head re enforcement team 01.6.10 Escape to the country interview! 07.6.10 Assistant Director Meeting, Informal Cabinet, 08.6.10 Cabinet away day 09.6.10 Cabinet 10.6.10 Visit some residents, gypsy traveller sites and local business on Appleby route.

207 O&S Organic waste report review 16.6.10 Garsdale residents Appleby fair review meeting 17.6.10 Talk Toilets draft report 21.6.10 Litter picking in Windermere and dog fouling awareness campaign in partnership with school, Police, Highways, ward member and SLDC 23.6.10 CSWP Public meeting in Sedbergh re recent Appleby fair 28.6.10 Public meeting in Ulverston re flooding 29.6.10 Stronger community forum 30.6.10 NWE Climate Change seminar 02.7.10 Informal Cabinet 05.7.10 Assistant Director meeting, presentation re Parks and open spaces from Kendal Town Council 07.7.10 Scrutiny update to Cabinet members, Cabinet, Meeting with Simon Blyth re carbon reduction 09.7.10 Visiting depots with Nick Pearson and seeing what the day to day activities are. 13.7.10 Day with Environmental health teams, air pollution, licensing issues, land contamination, associated planning issues, flooding, drainage, rodent etc. A really interesting insight into what the teams do on a daily basis – very worthwhile experience. Visit to Crosthwaite Parish Council chair and Clerk re recycling 14.7.10 Cabinet away day 16.7.10 Trees – policy discussion 22.7.10 attended a meeting with some Kendal town Cllrs to answer their questions re environmental issues. Regional/National/Other Issues, Looking Forward In the coming weeks, work will include:- Recycling percentages are falling across Cumbria, this is being investigated and I will update you when I have further information. Carbon reduction remains high on the national agenda and how we move forward locally and invest to benefit in future years is one of my main issues over the coming months. Talk Toilets consultation findings and moving forward with those findings. Paper and Plastic kerbside collections, logistics costing etc being reviewed. Again I will give information as and when I get it. Obviously looking at the budgets and how we can work to them, all avenues being explored from working better with partners to deliver, doing things differently. There is an ongoing development of the enforcement policy and dog control areas, the development of dog fouling/ litter awareness rising in schools, road shows, meetings, forums etc.

The bring sites have been out to tender for a new 3yr contract and negotiations are ongoing for the sale of the commercial waste service

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Council

Date of Meeting: 12 August 2010 Part I Report From: Councillor Peter Thornton Agenda 13(6) Housing and Development Portfolio Item No: Holder Report Title: Executive Report

Client Issues The following matters have arisen with my Portfolio:- South Lakes Housing • SLH Delivery Plan achieved for 2009/10. Benchmarking data shows a top quartile performance with good value for money being achieved. • A sheltered housing survey showed that 98% of tenants feel safe in their homes, 100% satisfied with the alarm response service and 98% felt that they could recommend South Lakes Housing to others • One key area of risk remains for 2010/11 and that relates to the unavailability of funding for asbestos register and associated issues which brings risks to landlord health and safety responsibilities. This will require SLDC financial support for next year. • Major risks managed - gas contract changed during the year to improve performance on discharging landlord safety regulations. 100% of tenancies now have a valid gas safety certificate. • Decent homes programme - South Lakes Housing and Bramall Construction formed their Decent Homes Partnership in 2005 and the improvements have now been delivered. The package of works achieved 100% tenant satisfaction levels in the latter stages of the programme and an impressive £1,022,000 was spent on community investment works as requested by tenants. 88% of the workforce was employed from the local area and the scheme resulted in 1,508 new kitchens, 949 new bathrooms, 839 new heating/boilers and 1,564 new doors being fitted to tenants' homes. • we made a successful bid to obtain £72,000 in additional funding from EON for cavity wall insulation and loft top ups to council properties.

Homelessness • The Governments target to reduce the number of homeless households in temporary accommodation by 50% has been achieved and sustained in the District, the target is a maximum of 31 and an actual figure of 12 was achieved by 30th June 2010. • The number of homeless cases prevented has increased substantially with a total of 97 cases prevented by the direct action of the Council and our partners in the last financial year. • Active prevention work has resulted in no homeless applicant being placed in Bed and Breakfast accommodation during the last three months making substantial savings for the Authority. • The £15,000 “spend to save” homeless prevention budget has resulted in a direct saving of £45,000 in 2009/2010 with a high proportion of the expenditure being returned to the Authority in subsequent years. • The 2009 “Supporting People” inspection of Town View Fields Hostel resulted in the highest rating in all six performance categories.

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Meetings/Training attended Various meetings with Cabinet and officers Meeting with government advisor to discuss subject of homelessness. Cumbria Housing Executive South Lakes Housing Board Induction into South Lakes Housing including meetings with Chief Executive and Chair Meeting with MP to discuss “unimplemented permissions” 2 Cabinet “away days” Tenants AGM CSPG Capital Prioritisation Group Covelant training Stock Options Project Board Supporting People Commissioning Body Lecture by Sir Martin Holdgate ref renewables Meeting with Cumbria Rural Housing Trust Lake District National Park Partnership

Regional/National/Other Issues • Major reform of dismantling the Housing Revenue Account underway with new coalition Government expected to make further announcements in October's Comprehensive Spending Review. Proposals includes increasing transparency of the ring fencing of the HRA which may mean challenges to SLDC. • Tenant Services Authority became the new regulator for social housing in April 2010 and, for one year at least, SLH and SLDC will have to comply with the new regulatory framework. This involves consulting tenants on 'local offers', improving tenant scrutiny in the management of SLH and publishing an 'annual report' by October 2010. • Proposals, as part of a Localism Bill, for a radical reform of the Planning system to give neighbourhoods a greater say (expected November 2011); • Proposals for a single National Planning Policy; • Proposals for (as yet unspecified) strong and transparent incentives for Local Authorities to build more homes (expected July 2010); • Proposals for a presumption in favour of sustainable development; • The abolition from next financial year of Housing and Planning Delivery Grant which supports plan making and development management; • The revocation of Regional Strategies and the District housing targets set out in them; • The proposed abolition of Regional Planning bodies.

Looking Forward In the coming weeks, work will include:- • Housing Options Study - newsletters have been sent to 3,200 tenants and leaseholders in July asking them to tell us their views about what they would like to see for the future of their homes. A programme of 20 road shows commenced at Tyson Square, Ulverston on 19th July and will finish in Ambleside on the 26th August. • Tenants Conference held on 22nd June where tenants were asked for their priorities on how service standards should be set for the next 12 months. 62 tenants attended with over half having not been to a consultation event before. South Lakes Housing are now going to use the feed back to set new service standards which will be monitored by Tenants Committee.

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Council

Date of Meeting: 12 August 2010 Part I Report From: Councillor Andy Shine Agenda 13(7) Policy, Performance and Resources Item No: Portfolio Holder Report Title: Executive Report

Client Issues The following matters have arisen with my Portfolio: - The accounts for the year ending 31 March 2010 were formally closed and submitted to the Audit Commission on schedule. I am delighted to report there were no material errors and the Audit Commission expressed their overall satisfaction with the outturn of the Accounts. Members will wish to join me in thanking and congratulating all staff involved in this technically demanding exercise. I attended an LGA meeting on 19 June and arranged a meeting with Andrew Stunell, Under- Secretary of State, Department of Communities and Local Government. I was able to express, face to face, the Council’s disappointment with the Housing Options as they are currently framed. I expressed our hope that the Coalition would be able to come up with an improved set of options. On 27 July, I attended a one day summit meeting for Leader’s of Local Authorities where Government gave a very clear message that LAs are empowered to deliver the services that their communities require. The role of government will be to enable this to happen and remove legislative barriers that may exist. The biggest challenge for LAs is to recognise the change in Government attitude and grasp the freedom of choice that comes with this change. Meetings/Training attended 14.05.10 Transformation Board 18.05.10 Staff Selection Panel 18.05.10 Annual Council Meeting 20.05.10 Lancaster Canal Restoration Partnership 24.05.10 LSP – Task Group Chairs meeting 25.05.10 Full Council Meeting 26.05.10 Cabinet 26.05.10 Joint Consultative Panel 01.06.10 Staff Selection Panel – AD Interviews 02.06.10 Staff Selection Panel – AD Interviews 04.06.10 Lake Admin. 09.06.10 Cabinet 10.06.10 Transformation Board 18.06.10 LGA Meeting – London

213 19.06.10 LGA Meeting - London 29.06.10 Council Meeting 30.06.10 Accounts Committee 07.07.10 Cabinet 12.07.10 Safer Business Award 23.07.10 Transformation Board 23.07.10 O&S Performance Task Group 27.07.10 LGA Meeting – London 28.07.10 Covalent training 28.07.10 Corporate Strategy Performance Group – Q1 Meeting 30.07.10 Capital Prioritisation Meeting Regional/National/Other Issue Comprehensive Spending Review takes place in October and will determine Local Government Finance levels. This authority will then receive its share according to the existing Formula Grant Distribution. Members may be encouraged to know that the Government have just launched its Local Government Finance Formula Grant Revision consultation paper. It is a massive 414 pages long. As a member of SPARSE, the Rural Services Network, we will benefit from the help they are providing on our behalf. Any benefits arising out of this consultation will be medium rather than short term. Looking Forward In the coming weeks, work will include: - There is no escaping the reduced financial support that will be forthcoming from Central Government. We need to review all the financial instruments at our disposal to maximise their contribution to the Council’s resources.

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