Meeting of the Council
Monday, 4th December, 2017 at 6.15pm (or upon the conclusion of the extraordinary meeting) in the Council Chamber at the Council House, Priory Road, Dudley
You are hereby summoned to attend a meeting of the Dudley Metropolitan Borough Council for the purpose of transacting the business set out in the numbered agenda items listed below.
Agenda - Public Session (Meeting open to the public and press)
1. Apologies for absence
2. To receive any declarations of interest under the Members’ Code of Conduct
3. To confirm and sign the minutes of the meetings of the Council held on 9th October, 2017 as a correct record
4. Mayor’s Announcements
5. To receive reports from meetings as follows:
Meeting of the Cabinet held on 26th October, 2017:
Councillor P Harley to move:
(a) Capital Programme Monitoring
(b) West Midlands Fire Service Governance
(c) Annual Review of the Constitution
Councillor S Clark to move:
(d) Medium Term Financial Strategy Councillor L Taylor to move:
(e) Review of Housing Finance
6. Membership of Committees 2017/18
7. West Midlands Combined Authority Borrowing Powers and Amendments to the Key Route Network 8. Notice of Motion
(a) To consider the following notice of motion received from Councillor P Brothwood on 28th August, 2017:
“Following the successful trial of the 2 hour free parking in Dudley borough we move to extend the current policy of 1 hour free parking to two. This is a result of continuing budget improvements over the last 6 months.”
9. To answer questions under Council Procedure Rule 11
Questions on Minutes, Action Notes and Delegated Decision Summaries – these are contained in the separate book circulated to Members of the Council.
10. To consider any business not on the agenda which by reason of special circumstances the Mayor is of the opinion should be considered at the meeting as a matter of urgency under the provisions of the Local Government Act 1972.
Chief Executive Dated: 23rd November, 2017
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Minutes of the proceedings of the Council at an Extraordinary Meeting held on Monday, 9th October, 2017 at 6.00pm at the Council House, Dudley
Present:
Councillor D Tyler (Mayor) Councillor A Taylor (Deputy Mayor) Councillors A Ahmed, K Ahmed, S Ali, S Anderton, A Aston, M Aston, J Baines, N Barlow, C Bayton, H Bills, R Body, P Bradley, P Brothwood, R Buttery, K Casey, S Clark, I Cooper, B Cotterill, J Cowell, S Craigie, T Crumpton, C Elcock, B Etheridge, M Evans, A Finch, K Finch, J Foster, A Goddard, M Hanif, P Harley, R Harris, S Henley, J Hill, A Hopwood, L Johnson, L Jones, K Jordan, I Kettle, E Lawrence, A Lees, K Lewis, P Lowe, P Miller, A Millward, M Mottram, S Mughal, G Partridge, C Perks, D Perks, S Phipps, N Richards, S Ridney, H Rogers, M Rogers, K Shakespeare, D Sparks, D Stanley, E Taylor, L Taylor, D Vickers, V Wale, S Waltho, T Westwood and Q Zada together with the Chief Executive and other Officers
Prayers
The Mayor’s Chaplain led the Council in prayer.
22 Apologies for Absence
Apologies for absence were received on behalf of Councillors M Attwood, N Gregory, Z Islam, J Martin, R Scott-Dow and S Tyler.
23 Declarations of Interest
No declarations of interests, in accordance with the Members’ Code of Conduct, were made in respect of the business to be transacted at this Extraordinary Meeting of the Council.
24 Electoral Arrangements
A report of the Chief Executive was submitted.
It was moved by Councillor P Harley, seconded by Councillor D Vickers and following a debate it was
CL/26 Resolved
That the results of the consultation on the proposed changes to local elections be noted and that the present process of elections by thirds be retained.
The meeting ended at 6.20pm
MAYOR
CL/27
Dudley Metropolitan Borough
Minutes of the proceedings of the Council at the meeting held on Monday, 9th October, 2017 at 6.20pm at the Council House, Dudley
Present:
Councillor D Tyler (Mayor) Councillor A Taylor (Deputy Mayor) Councillors A Ahmed, K Ahmed, S Ali, S Anderton, A Aston, M Aston, J Baines, N Barlow, C Bayton, H Bills, R Body, P Bradley, P Brothwood, R Buttery, K Casey, S Clark, I Cooper, B Cotterill, J Cowell, S Craigie, T Crumpton, C Elcock, B Etheridge, M Evans, A Finch, K Finch, J Foster, A Goddard, M Hanif, P Harley, R Harris, S Henley, J Hill, A Hopwood, L Johnson, L Jones, K Jordan, I Kettle, E Lawrence, A Lees, K Lewis, P Lowe, J Martin, P Miller, A Millward, M Mottram, S Mughal, G Partridge, C Perks, D Perks, S Phipps, N Richards, S Ridney, H Rogers, M Rogers, K Shakespeare, D Sparks, D Stanley, E Taylor, L Taylor, D Vickers, V Wale, S Waltho, T Westwood and Q Zada together with the Chief Executive and other Officers
25 Apologies for Absence
Apologies for absence were received on behalf of Councillors M Attwood, N Gregory, Z Islam, R Scott-Dow and S Tyler.
26 Declarations of Interest
Declarations of interests, in accordance with the Members' Code of Conduct, were made by the following Members:
Councillors M Aston, A Finch and K Finch - Any references to North Priory Community Centre - Non-Pecuniary interests as members of the Committee.
Councillor A Aston - Any references to matters affecting West Midlands Ambulance Service (WMAS) - Pecuniary interest as an employee of WMAS.
Councillors M Evans, D Sparks and D Vickers - Any matters relating to Castle Hill Development and all references to Dudley Zoo - Non-Pecuniary interests as members of Dudley and West Midlands Zoological Society Limited.
Councillors D Stanley and M Hanif - West Midlands Combined Authority - Transport Delivery Committee - Non-Pecuniary interests as Members of the Committee.
Councillor C Bayton - References to Council budgetary issues - Pecuniary and Non- Pecuniary interests due to employment by Unison representing the Community and Voluntary Sector.
CL/28
Councillor S Mughal – Minutes of the Children’s Services Scrutiny Committee – Non- Pecuniary interest as her sister worked for an agency used by Children’s Services.
Councillor T Crumpton – Minute No. 8 of the Corporate Scrutiny Committee (West Midlands Combined Authority) - Non-pecuniary interest in view of his employment with Her Majesty’s Revenue and Customs (HMRC).
Councillor S Phipps – Minute No. 8 of the Corporate Scrutiny Committee (West Midlands Combined Authority) - Non-Pecuniary interest as a Member of the West Midlands Combined Authority Overview and Scrutiny Committee.
Councillor K Casey – Minute No. 26 of the Development Control Committee (Plans and Applications to Develop – Application No. P17/0184 – Vacant land site of former Commercial Tip, Bourne Street, Coseley) - Non-Pecuniary interest as he had entered into discussions with residents who objected to this application, prior to its consideration at the Development Control Committee meeting.
Councillor H Rogers – Minutes of the Ernest Stevens Trusts Management Committee - Non-pecuniary interest as Chair of the Friends Group for Mary Stevens Park and Swinford Common. Also in relation to her involvement with the Project Implementation Team - Heritage Lottery Bid for Mary Stevens Park and attendance at stakeholder meetings.
Councillor T Crumpton – Minutes of the Ernest Stevens Trusts Management Committee - Non-pecuniary interest as a Member of Wollescote Park Group. Also in relation to any reference to Age Concern as direct discussions had been held with the Group.
Councillor J Cowell – Minutes of the Ernest Stevens Trusts Management Committee - Non-pecuniary interest as a former Trustee of Mary Stevens Hospice. Also in relation to any reference to Age Concern as discussions had been held with the Group in the past.
Councillor M Hanif – Minutes of the Ernest Stevens Trusts Management Committee - Non-pecuniary interest as he had attended meetings in view of being a member of Friends of Wollescote Park Group.
Councillor A Ahmed – Minute No. 18 of the Taxis Committee (Application for Review of Private Hire and Hackney Carriage Driver’s Licences – Mr ABA) - Non-Pecuniary interest as he was known to the driver.
27 Minutes
Resolved
That the minutes of the meeting of the Council held on 10th July, 2017 be approved as a correct record and signed.
CL/29
28 Mayor’s Announcements
(a) Halesowen in Bloom
The Mayor reported on the success of Halesowen in Bloom in the Heart of England Awards.
Following remarks by the Cabinet Member for Environmental Services (Councillor K Shakespeare) and Councillor H Bills, the Mayor presented the award to representatives of Halesowen in Bloom. The Council congratulated all those concerned on this outstanding achievement.
(b) Former Councillor June Collins
The Mayor referred in sympathetic terms to the recent death of former Councillor June Collins. The Council observed a period of silence as a token of respect to her memory. Following the period of silence, Members paid individual tributes.
(c) Festival of Remembrance
The Mayor reported on the arrangements for the Festival of Remembrance concert on 9th November, the commemoration of Armistice Day on 11th November and the Remembrance Sunday event on 12th November, 2017.
(d) An Evening with Kevin Keegan
The Mayor referred to the fundraising event that would take place on 19th October, 2017 at the Copthorne Hotel.
(e) “Matt Munro – The Singer’s Singer”
The Mayor referred to the show which would be held on 16th November, 2017 at Dudley Town Hall.
(f) Charity Football Match
The Mayor reported that a charity football match between Dudley Town and Wolves All Stars would take place on 19th November, 2017 at the Dell Stadium.
(g) Civic Carol Service
The Mayor reported that the Civic Carol Service would be held on 7th December, 2017 at St Mary’s Church, The Village, Kingswinford.
CL/30
(h) The Mayor’s Winter Walk
The Mayor referred to a charity walk which would take place on 28th January, 2018 from the Bonded Warehouse in Stourbridge.
29 Capital Programme Monitoring
A report of the Cabinet was submitted.
It was moved by Councillor P Harley, seconded by Councillor D Vickers and
Resolved
(1) That subject to the funding bid being successful, the Low Carbon Place Strategy expenditure be included in the Capital Programme, as set out in paragraph 6 of the report.
(2) That the urgent amendment to the Capital Programme as set out in paragraph 7 of the report (New Early Years accommodation at Netherbrook Primary School) be noted.
30 Revision of Byelaws Made Under Section 19 of the Public Libraries and Museums Act 1964
A report of the Cabinet was submitted.
It was moved by Councillor P Miller, seconded by Councillor D Vickers and
Resolved
That the revision of byelaws made under Section 19 of the Public Libraries and Museums Act 1964 be approved.
31 Treasury Management
A report of the Cabinet was submitted.
It was moved by Councillor P Brothwood, seconded by Councillor D Vickers and
Resolved
That the treasury activities as outlined in the report be noted and endorsed.
CL/31
32 Membership of the Cabinet and Committees 2017/18
A report of the Lead for Law and Governance was submitted.
It was moved by Councillor P Harley, seconded by Councillor D Vickers and
Resolved
(1) That the resignation of Councillor L Jones from the post of Cabinet Member for Housing be noted that that the Leader of the Council make an appointment to this vacancy in due course pursuant to the provisions of the Scheme of Delegation in the Council’s Constitution.
(2) That the appointment of Councillor P Bradley to fill the vacancy on the Children’s Services Scrutiny Committee be noted.
(3) That Councillor J Hill be elected as the Chair of the Corporate Scrutiny Committee for the remainder of the 2017/18 municipal year.
(4) That Councillor M Evans be elected as the Vice-Chair of the Corporate Scrutiny Committee for the remainder of the 2017/18 municipal year.
(5) That the resignation of Councillor S Tyler from the post of Vice-Chair of the Appeals Committee be noted and that the election of a Member to fill this vacancy be deferred until the next meeting of the Council.
(6) That Councillor S Henley be elected as the Vice-Chair of the Licensing and Safety Committee for the remainder of the 2017/18 municipal year.
33 Notices of Motion
(a) Gender Audit
Pursuant to Council Procedure Rule 12, Councillor C Bayton had given notice of a motion on 10th March, 2017.
The motion was moved by Councillor C Bayton and seconded by Councillor H Bills.
During the debate, a closure motion was moved by Councillor P Lowe pursuant to Council Procedure Rule 14.11 to the effect that ‘the question be now put’. The closure motion was seconded by Councillor D Sparks.
CL/32
A point of order was raised by Councillor P Brothwood pursuant to Council Procedure Rule 14.12 concerning a potential breach of the law on the use of copyrighted material in the wording of the original motion. Following the initial point of order, further points were raised by Councillor P Brothwood. The Mayor was of the opinion that Councillor P Brothwood was disregarding his ruling and deliberately obstructing the conduct of business.
The meeting was adjourned at 7.50pm and reconvened at 8.05pm.
The Mayor advised of the provisions of Council Procedure Rule 20.3, namely that if a Member persistently disregarded the ruling of the Mayor by behaving irregularly, improperly or offensively or by deliberately obstructing business, the Mayor may move that the Member be not heard further.
Pursuant to Council Procedure Rule 20.3, it was moved by the Mayor, seconded by the Deputy Mayor and following a vote
Resolved
That Councillor P Brothwood be not heard further for the duration of this Council meeting.
In accordance with Council Procedure Rule 14.11(b), the Mayor was of the opinion that the original motion had been sufficiently discussed. The procedural motion was put to the vote and it was
Resolved
That the question be now put. Pursuant to Council Procedure Rule 14.9, Councillor C Bayton was given her right to reply to the debate on the original motion.
The original motion was then put to the vote and it was
Resolved
That this Council urge the Government to carry out a gender audit of its tax and spending policies, following research published by the House of Commons in March 2017 showing 86% of the burden of austerity since 2010 has fallen on women.
This Council is committed to a Fair Deal for all Dudley residents and the research suggests that the burden of austerity is being felt disproportionately by women in Dudley Borough.
The figures estimate that nationally, the cuts will have cost women a total of £79bn since 2010, against £13bn for men. Furthermore, it shows that by 2020, men will have borne just 14% of the total burden of welfare cuts, compared with 86% for women.
CL/33
The House of Commons library research reveals that women are paying a “disproportionate” price.
The Commons research reveals the Government’s aim to help the ‘just about managing’ is incompatible with the Chancellor’s decision to ‘continue with the Government's plan’.
The 1.8 million working families receiving tax credits are the ‘just about managing’, but rising inflation and a freeze in tax credit rates means a sharper fall in their real-terms income.
The Chancellor’s decision to continue with the decisions of his predecessor to cut social security for these low income families, at the same time as cutting taxes, is effectively a transfer from the purses of poorer women into the wallets of richer men.
Although the Government publishes an analysis of the differential impact of its policies at different points on the income scale, it does not carry out a gender analysis.
This Council directs the Chief Executive to write urgently to the Prime Minister to request the Government to publish an analysis of the true impact of their budgets and spending announcements on women and to ask government for an explanation of how they intend to reverse the disproportionate impact on women, particularly as many of the cuts announced in earlier years by George Osborne, including a four-year freeze on many in-work benefits, and cuts to universal credit, have yet to bite.
Pursuant to Council Procedure Rule 12.5, the 30 minutes allowed to deal with all notices of motion on the agenda had expired. The remaining motion (policies relating to trees) would therefore stand referred to the next ordinary meeting of the Council. The notice of motion would be included in the summons for that meeting in accordance with Council Procedure Rule 12.2.
34 Questions under Council Procedure Rule 11
During questions asked under Council Procedure Rule 11, there were no decisions that the Leader, Cabinet Members or Chairs agreed to have reconsidered.
The meeting ended at 8.55pm
MAYOR
CL/34
Meeting of the Council – 4th December, 2017
Report of the Cabinet
Capital Programme Monitoring
Purpose
1. To report progress with the implementation of the Capital Programme.
2. To note urgent amendments to the Capital Programme.
Recommendations
3. The Council is recommended:
• That current progress with the most significant capital schemes, as set out in Appendix A, be noted.
• That the Urgent Amendment(s) to the Capital Programme, as set out in paragraphs 6 and 7, be noted.
Background
4. The table below summarises the current 3 year Capital Programme updated where appropriate to reflect latest scheme spending profiles.
2017/18 2018/19 2019/20 £’000 £’000 £’000 Public Sector Housing 44,445 36,497 36,361 Private Sector Housing 6,781 6,850 2,550 Environment 3,093 12,523 5,256 Transport 15,604 5,573 3,073 Regeneration & Cultural 7,900 636 636 Schools 24,588 10,122 244 Social Care, Health & Well Being 1,567 0 0 Chief Executive’s 2,339 1,140 340 Total spend 106,317 73,341 48,460
Revenue 11,559 6,626 3,767 Major Repairs Reserve (Housing) 23,030 23,107 23,451 Capital receipts 21,600 14,251 18,979 Grants and contributions 29,245 11,975 1,155 Capital Financing Requirement 20,883 17,382 1,108 Total funding 106,317 73,341 48,460
1 Note that the capital programme for future years is in particular subject to government grant allocations, some of which have not yet been announced.
5. Monitoring of progress with the 2017/18 Programme indicates that forecast spend is in line with budget. An update on progress with the Council’s most significant capital schemes is shown in Appendix A. Proposed changes to the Public Sector Housing capital programme are considered in a separate report on this agenda.
Urgent Amendment(s) to the Capital Programme
6. Very Light Rail (VLR)
As originally reported to Cabinet in June 2015 and updated in June 2016 this project proposes that a world class research, development and educational centre focussed on the creation of innovative VLR vehicles is built on land at Castle Hill. Working in partnership with Warwick Manufacturing Group (Warwick University), other higher education bodies, transport suppliers and other neighbouring local authorities, the centre will lead on the development of the vehicles, associated infrastructure and training for the next generation of public transport solutions.
Substantial design and advanced works have already been carried out, supported by funding from the Black Country Local Enterprise Partnership (BCLEP), which has led to grant funding bids being produced for Phase 1 of the project, comprising the National Innovation Centre (NIC) building, specialist fit out and associated external works as well as full test track works. The current estimated cost of these works is £23,594,000 with funding being sourced from the BCLEP Black Country Growth Programme (£18,494,000), European Regional Development Fund (£5,000,000) and £100,000 from Dudley MBC. The Dudley MBC contribution relates to the purchase of land in the ownership of Network Rail.
It was agreed by Cabinet in June 2017 that subject to the success of the funding bids detailed above Phase 1 of the scheme be included in the Capital Programme.
It was subsequently anticipated that to avoid delaying the project timetable and putting the project at risk expenditure of £257,000 to cover professional design fees against the BCLEP funding of £18,494,000 would need to be incurred prior to final sign off by the Joint Executive in November 2017. The risk was deemed to be low.
In order to facilitate progress with the scheme, a decision (ref. PLA/39/2017) was made by the Leader of the Council in consultation with the Chief Officer, Finance and Legal Services on 6th October 2017 to approve expenditure of £257,000 on the VLR design fees in advance of the BCLEP funding application being agreed.
7. VLR / Metro Retaining Wall
The juxtaposition of the VLR and Metro requires the design and construction of a 250m contiguous reinforced concrete piled “shared retaining wall” to support the delivery of the Metro which would be routed across the western edge of the proposed Very Light Rail site, adjacent to Tipton Road and through to Station Drive. This needs to be progressed now in order to support delivery of the VLR project described in the previous paragraph and facilitate the Metro in due course; it is not practicable to wait for final approval of the Metro before proceeding.
2 When reported to Cabinet in June 2017, professional design fees for the shared retaining wall were estimated at £195,000 to be included in the Strategic Outline Business Case submitted for West Midlands Combined Authority (WMCA) funding; the estimated cost of the construction of the wall was £3,800,000 for which funding would subsequently be sought from the WMCA via a Full Business Case.
Cabinet agreed that:
• subject to the success of the Strategic Outline Business Case, the professional design fees related to the retaining wall be included in the Capital Programme; • subject to the success of the Full Business Case the full construction cost of the scheme be included in the Capital Programme.
The estimated cost of this design work is now £294,000. The increase in costs results from the Metro realignment under the Tipton Road increasing the scope of the Metro design interface works, including VLR redesign elements. The professional design work on the retaining wall needed to happen as soon as possible to minimise project slippage; £100,000 was expected to be spent prior to the WMCA Board date in late October. This spend would therefore be incurred at risk by DMBC. The risk level was deemed to be low.
Following a review with the Midland Metro Alliance the estimated construction costs and professional fee input into the scheme has increased to £4,330,000.
In order to facilitate progress with the scheme, a decision (ref. PLA/38/2017) was made by the Leader of the Council in consultation with the Chief Officer, Finance and Legal Services on 6th October 2017 to:
• approve up to £294,000 expenditure on the VLR / Metro Retaining Wall in advance of a WMCA funding application being agreed; • increase the capital budget from £3,800,000 to £4,330,000, subject to approval of the Full Business Case by the WMCA.
It is anticipated that the full business case will be approved in January/February 2018.
Finance
8. This report is financial in nature and information about the individual proposals is contained within the body of the report.
Law
9. The Council’s budgeting process is governed by the Local Government Act 1972, the Local Government Planning and Land Act 1980, the Local Government Finance Act 1988, the Local Government and Housing Act 1989, and the Local Government Act 2003.
3 Equality Impact
10. The proposals in this report comply with the Council's policy on Equality and Diversity.
11. With regard to Children and Young People:
• The Capital Programme for Schools will be spent wholly on improving services for children and young people. Other elements of the Capital Programme will also have a significant impact on this group. • Consultation is undertaken with children and young people, if appropriate, when developing individual capital projects within the Programme. • There has been no direct involvement of children and young people in developing the proposals in this report.
Human Resources / Transformation
12. The proposals in this report do not have any direct Human Resources / Transformation implications.
...... Leader of the Council
4 Appendix A
Progress with Major Capital Schemes
Public Sector Housing
New Council Housing 10 new homes at Lea Bank Road Saltwells completed September 2017
Works are onsite for : • 20 new homes at Ketley Hill Road with completion due December 2017. • 4 bungalows at Moat Drive, Halesowen, with completion due by March 2017
Work commenced in November 2015 for the development of 157 homes at the former Dudley Guest site, with the Council taking 39 of the homes. The Council’s 39 dwellings will be completed in phases. 28 homes are currently completed with the remainder due by March 2018. Overall scheme completion in 2019. Works are progressing well.
Works commenced on site March 2017, completing in phases by 2019/20 for 130 new homes in a mixed tenure development of at Middlepark Road, Russells Hall of which 42 will be new Council homes.
Work is due to commence on 2 sites in October, with demotion of 2 existing buildings followed by construction works commencing: • 16 apartments at Beech Road, Kingswinford • 12 apartments at Wolverhampton St Dudley
Feasibility work is ongoing for other infill sites across the borough and discussions are ongoing with Planning and Highways.
Private Sector Housing
Starter Homes Planning approval received for 79 new homes for development by the Council by 2019, of which 62 are new starter homes. The first scheme will commence on site later in 2017/18.
Environment
Lister Road Redevelopment The outline designs for the redevelopment of Lister Road Depot have been completed and a full planning application has been submitted for consultation and approval. An outcome of the application is expected before the end of the calendar year. Works are planned to commence on site by Spring 2018.
Household Waste Recycling Centre Consideration of a range of possible sites across the borough is in progress. A preferred site is expected to be determined by the end of the calendar year. Further consultation will then be undertaken, with any necessary planning applications being submitted by April 2018.
Dell 3G Pitch Mining/drainage works are now complete and the main scheme was anticipated to commence on site on 9th October and should be completed before the end of the calendar year. The scheme is still forecast to be delivered within budget.
5 Homer Hill Park Plans for the new changing facility are almost complete. A programme has been produced which outlines that we will go out to tender in mid September, with contractors on site in November. Project is due for completion in spring 2018.
Transport
A4101 High Street, Pensnett Highway Improvement Work commenced on site in early May 2017 and is expected to take approximately 12 months to complete. Spend is forecast to be within budget.
A459 Dudley Road / Coombs Road, Halesowen – Junction Improvement Work commenced on site in January 2017 and phase 1 which involved civil engineering works to the main junction is complete. Phase 2 which involves alterations to statutory undertakers’ apparatus prior to completion of the remaining civil engineering works commenced in June with completion expected September/October 2017. Spend is forecast to be within budget.
Street Lighting (Invest to Save) Procurement of lanterns for the major roads lighting replacement programme is now complete and orders placed. We are still working towards a start on site scheduled for October 2017, the programme taking approximately 30 months to complete.
Regeneration and Cultural
Dudley Townscape Heritage Initiative 2 Following the appointment of the project manager the Townscape Heritage (TH) scheme formally commenced in early February. The first year’s Action Plan has been agreed with the Heritage Lottery Fund and the TH project is being progressed and monitored in line with the plan. Discussions are now being held with owners of target buildings to develop the individual building projects, and the complementary activities which form an integral part of the programme are also being progressed.
One Public Estate The final draft of the Estate Strategy has been completed and following submission to Corporate Board, it will be submitted to Cabinet at the earliest opportunity. Issues meriting specific reference include the completion of the acquisition of the former Health Centre in Bayer Street, Coseley which will enable Children’s Services to develop their Early Help strategy for the north of the borough through a Family Centre supporting children and young people aged 0-18, (up to 25 years for those who have a learning difficulty/disability).
Minor alteration work has been completed at 3-5 St James’s Road and staff have relocated from Westox House to 3-5 St James’s bringing together staff from the People Directorate working in an agile environment. A similar project is at planning stage for Ednam Road that will see officers from Place Directorate being brought together to work in an agile environment.
Work has commenced at 8 Parsons Street with officers from West Midlands Police currently based at Dudley Police Station due to take occupation in October.
In relation to assets considered surplus to operational requirements, work continues to dispose of them by the most beneficial method including on the open market and via Community Asset Transfer. Where necessary to increase value or to make a sale more viable, some site remediation is being considered prior to future disposal.
6
Low Carbon Place Strategy The Council has bid for £2.5m of European Regional Development Funding for the installation of a number of energy efficiency improvements, including ‘A’ rated gas boilers in some council homes, LED lighting in communal areas of council housing and various measures to improve the efficiency of targeted corporate buildings. Match funding of £2.5m can be met from existing HRA budgets.
The Department for Communities and Local Government (DCLG) has sought additional clarification regarding the project and discussions are on-going. A final decision is now expected early in the New Year.
Schools
Schools Basic Need Projects The second phase of projects funded from Basic Need capital grant is progressing well. Numbers for both primary and secondary school places are being closely monitored and processes are in place to recommend the next wave of capital projects for 2018 onwards to address projected growth mainly at Secondary School level across the school estate.
Priority Schools Building Programme Phase 2 The capital budget for the rebuild of Key Stage 1 at Huntingtree Primary School project remains to be confirmed following the successful submission of a capital bid. The Local Authority is awaiting feedback from the Education Skills Funding Agency (ESFA) on actual budget allocation and timescale following a number of meetings with representatives and further work to develop the brief for the project.
Two Year Old Early Learning – “Time For Twos” Projects are progressing well, with the majority having now being completed to conclude the Time for Twos grant expenditure. Major projects have included Woodside, Wordsley and Netherton Park Pre-schools. Current forecast to spend to budget.
Hillcrest 3G Pitch The Football Foundation has confirmed funding of £757,000 towards the latest estimated project cost of £917,000. The balance of £160,000 will be met by the school. Work programme is yet to be confirmed as planning approvals are awaited. A revised planning application for the project is due to be submitted imminently.
Transformation
Social Care ICT The project is on track for delivery by March 2019. The tender was published and went live on 9th August and deadline for receipt of responses was 22nd September. Bids have now been received. Software demonstrations and interviews are scheduled from mid October - end of October 2017. Cabinet to consider preferred provider option in December 2017. Award of contract anticipated January 2018. Design and build from January 2018 onwards.
7
Meeting of the Council – 4th December, 2017
Report of the Cabinet
West Midlands Fire Service Governance
Purpose
1. The purpose of this report is to consult constituent authorities on the Governance Review (Annex A) and Scheme (Annex B) for the proposed governance model of the West Midlands Fire Service (under the Mayoral West Midlands Combined Authority) prior to going out for formal public consultation.
Recommendations
2. The Council is recommended to:
• Approve the prepared Governance Review and Scheme. • Agree to move forward to public consultation for the Scheme and proposed Governance Model. • Delegate authority to the Chief Executive to make any necessary minor amendments to the Governance Review and Scheme prior to public consultation. • Support and lead on the public consultation in the Dudley Metropolitan Borough area on behalf of the West Midlands Combined Authority (WMCA). • Note the timeline of this governance route to the Mayoral Combined Authority. • Agree the principle that the proposed arrangements for West Midlands Fire Service should include the WMCA Fire Service budget being ring fenced for Fire Service functions.
Background
3. In response to the Policing and Crime Bill (2016) consultation, the West Midlands Fire and Rescue Authority (WMFRA) set out a direction seeking the future sustainability of services under a Mayoral WMCA model of governance.
In recognising the need for an independent review of the possible future governance options, WMFRA commissioned an appraisal panel in April 2016 following Government calls for reform of the fire sector. The Group sought to understand the potential for the delivery of further collaborative services, and appraise possible governance structures that met specified criteria as outlined in the Governance Review. The Group’s outcomes and conclusions are detailed in the attached Governance Review (Annex A).
8 4. The outcomes of the Group were then built upon through a public consultation undertaken during December 2016 to January 2017, seeking public and partner opinion regarding the future strategy to deliver risk-based services across the West Midlands. A Reformed Fire Authority and Mayoral Combined Authority were identified as the ‘desirable’ options for the future governance of West Midlands Fire Service (WMFS).
5. Accepting the findings of both the Group and the public consultation, considering these against the Strategy of WMFS, the priorities of the WMCA and the expectations of Government, the route to future Mayoral WMCA governance was agreed by WMFRA on 20th February 2017.
6. The WMCA supported the WMFRA's broad proposal for the transfer of its functions to the Mayoral Combined Authority on 3rd March 2017.
7. Alongside this, work is underway to reform the WMFRA as an interim measure until functions are transferred to and assumed by the Mayoral Combined Authority.
8. On 8th September 2017 the WMCA Board noted the timeline for the Mayoral governance route and approved the development of a Governance Review and Scheme for Mayoral Combined Authority governance of WMFS pursuant to Sections 111 and 112 (1d) of the Local Democracy, Economic Development and Construction Act 2009. The Scheme is detailed in Annex B.
9. The benefits of the Mayoral WMCA Governance Model provide huge opportunities for the joint transformation of public services to West Midlands communities. These have been detailed in the Governance Review.
10. A Governance Review is a review of existing arrangements and functions, this includes the proposed new model under the Mayoral Combined Authority.
11. The Scheme details the roles, accountabilities, and powers required by each individual /body in the proposed Governance Model.
12. Following constituent authority consultation on the Governance Review and Scheme, the Scheme must enter a formal public consultation in compliance with Section 113 (3) of the Local Democracy, Economic Development and Construction Act 2009.
13. The Government will use these documents and the results of the consultation to approve the Model and create an Order to amend existing legislation in order to confer the necessary powers on the Mayoral WMCA to carry out the functions currently exercised by the WMFRA.
9 14. The Timeline (indicative) is as follows:
Finance
15. The cost of this governance route has and will continue to be met from within existing approved budgets which have largely been delivered through WMFS. Support has also been provided from the WMCA and local authority Legal Services. The Council is recommended to agree the principle that the proposed arrangements for West Midlands Fire Service should include the WMCA Fire Service budget being ring fenced for Fire Service functions.
16. Future reports will detail any additional costs that will need to be met.
17. The financial implications for local authorities would be those arising from any resources allocated to supporting the public consultation.
Law 18. The legal implications and process for devolving powers to the WMCA are set out above in this report.
19. The proposals in this report will meet the Government’s expectations that all Fire and Rescue Services consider one of the alternative routes leading to reform.
20. WMFRA have been consulting with the legal heads of service from all seven constituent local authorities for advice and guidance.
10 21. All relevant legislation pertaining to this governance route has been detailed in the Governance Review and Scheme.
Equality Impact
22. There are no direct implications at this stage, however, participants from all the equality strands will be invited to comment during the consultation process. Once consultation has been completed an equality impact assessment will be undertaken.
23. It is a requirement of the Secretary of State’s consultation process that the consultation responses ‘reflect the identities and interests of local communities’ in the West Midlands (Local Democracy, Economic Development and Construction Act 2009 Section 111 3a).
Human Resources/Transformation
24. The revised arrangements present significant opportunities for the joint transformation of public services to West Midlands communities.
..……………………….. Leader of the Council
11 Review of Governance and Functions of the WMCA Annex A
This review is a subsequent review to the WMCA governance review and scheme. The review deals with:
• The transfer of functions and governance arrangements in relation to the exercise of fire and rescue functions in the West Midlands, and • Overview of the governance arrangements
1. EXISTING ARRANGEMENTS:
Existing Fire and Rescue Arrangements:
1.1 West Midlands Fire and Rescue Service (the Service) provides prevention, protection and response services to the 7 metropolitan councils in the West Midlands. These core services are prescribed under legislation, assurance for which is provided through the West Midlands Fire and Rescue Authority (the Authority). The Authority is accountable to the public for the services provided to local communities. The most pertinent service delivery legislative provisions are as follows:
• The Fire and Rescue Services Act 2004 • The Fire and Rescue Services (Emergencies) (England) Order 2007 • The Regulatory Reform (Fire Safety Order) 2005 • The Civil Contingencies Act 2004
Further detail of these legislative provisions is provided in Appendix 1.
The Fire and Rescue Service is a unique public body that plans for risk not demand. Appendix 2 delivers the understanding behind this and how it meets that risk through its prevention, protection and response services. This review will demonstrate the reliance and value these services add beyond local level delivery, with consideration given to regional, national and specialist international capabilities and interventions.
12 1.2 In addition to providing services to the West Midlands, given that the Service shares approximately 53 km of border with Hereford & Worcester FRS, 90km with Staffordshire FRS and 113km with Warwickshire FRS, it provides services to the region in the form of over-the-border mobilisations into neighbouring FRS’s and vice versa where required. This is catered for under s13 of the Fire and Rescue Services Act 2004 and is termed Section 13 Mutual Assistance Agreements.
1.3 Further, the Service provides significant support to the national resilience arrangements. This is supplemented by supporting the United Kingdom in its International Search and Rescue (ISAR) capability, having supported numerous interventions to some of the world’s largest and most devastating disasters, including earthquakes in Haiti, Japan and Nepal.
1.4 The Authority as it stands was legally established as a joint authority by the Local Government Act 1985. This Act stipulated the requirement to appoint 27 members to the Authority and the number of Members appointed from each of the 7 West Midlands Metropolitan councils.
1.5 Currently, members are drawn made up according to the following political ratio:
• 17 Labour • 8 Conservative • 1 Liberal Democrat • 1 UKIP
1.6 The Authority undertakes the following strategic and statutory duties
• It is accountable to the community for the services provided through the Integrated Risk Management Plan (IRMP) and the service's rolling 3-year corporate strategy, 'The Plan'. • It approves the budget for the delivery of these services and the setting of the precept for council tax. • It employs all WMFS staff and owns all properties, rights and liabilities. • It has ultimate accountability for decision making, however, the Authority delegates many decisions to its sub-committees such as Scrutiny and Audit and day to day operational control to the Chief Fire Officer (CFO) on matters “concerned with maintaining operational effectiveness and the deployment of resources both physical and employees".
13 1.7 The CFO is the designated Head of Paid Service as required by the Local Government and Housing Act 1989 and is responsible for the management and development of all staff, land and resources to enable and ensure the delivery of services, including the exercise of all the powers of the Authority as an enforcement authority under relevant legislation. Accordingly, the CFO is accountable to the Authority. The operational independence of the CFO is secured by virtue of the skills, knowledge and experience required to deliver on the legislative prescriptions with clear lines of demarcation between Authority and the CFO detailed in the Authority’s Constitution, agreed to by the Authority.
1.8 Whilst there is plenty of legislation that all public bodies are required to be compliant with, those detailed below are deemed to be most pertinent to informing the governance arrangements and the responsibilities placed upon the Authority:
• Local Government Act 1985 • Local Government and Housing Act 1989 • The Local Government Act 1972
Further detail with respect to the legislative responsibilities and a more detailed breakdown of current roles and responsibilities of the Authority is provided in Appendices 3 and 4.
1.9 The Authority has a number of sub-committees. These can be broadly divided into those that convene regularly and those that are convened upon requirement:
• Appeals Committee (convenes upon requirement) The Appeals Committee operates as a quasi-judicial body in determining appeals relating to pensions and superannuation matters. This Committee convenes upon requirement and hears and decides upon: -
. Appeals under the Firefighters Pensions Scheme, New Firefighters Pensions Scheme and the Firefighters Compensation Scheme. . Appeals under the Local Government Superannuation Regulations.
• Appointments Committee (convenes upon requirement) The Appointments Committee convenes upon requirement to make appointments of the Chief Fire Officer, Deputy Chief Fire Officer and Assistant Chief Fire Officer.
• Audit Committee The Audit Committee is a key component of the Authority’s corporate governance and includes an independent
14 Member to provide independent assurance. It provides an independent and high-level focus on the audit, assurance and reporting arrangements that underpin good governance and financial standards. Its purpose is to provide independent assurance to the Members of the adequacy of the risk management framework and the internal control environment. It provides independent review of the governance, risk management and control frameworks and oversees the financial reporting and annual governance processers. It oversees internal audit and external audit, helping to ensure efficient and effective assurance arrangements are in place.
• Executive Committee The Executive Committee deals with all matters of an urgent nature which in the opinion of the Clerk/Monitoring Officer, cannot reasonably be delayed until the next ordinary meeting of the Authority or appropriate committee. It considers recommendations from the Scrutiny Committee in respect of completed reviews and to respond to the Scrutiny Committee on what action it proposes to take. It also approves transactions that exceed delegated authority.
• Policy Planning Forum - proportionality not applied The Policy Planning Forum comprises all elected members and independent members of the Authority. The Forum is not a decision making body, but provides a forum for discussion of important issues affecting the Service prior to formal submission and discussion with members via the Committee framework as appropriate. It is a successful feature of the Authority’s governance arrangements used as a particularly effective way of engaging Members and officers on key issues faced by the Authority. The Forum also acts as a vehicle to provide training to members.
• Scrutiny Committee The Scrutiny Committee supports the Authority in achieving its strategic objectives and ensuring that its policy and budgetary framework is followed and developed to reflect the changing needs and demands in meeting its statutory obligations.
The main purpose of the scrutiny function is to:-
i) Inform policy development ii) Hold officers and the Service to account ii) Hold the Authority to account iv) Conduct reviews into specific issues.
In carrying out its role the Committee may look at both operational and strategic issues.
15 • Joint Consultative Panel - proportionality not applied The Panel comprises elected members of the Authority and recognised elected officials of the Trade Unions/Representative Bodies. The Panel establishes regular methods of consultation between the Authority, management and its employees as part of the employee relationship framework to consider and make recommendations to the Authority or the Chief Fire Officer as appropriate on:
• any problems which may arise • any relevant matter referred to it by the Service or by the relevant employee organisation • the application of the terms and conditions of service for employees • matters referred to it by the Joint Consultative Committee, including failure to consult and failure to agree as defined in the constitution of the Joint Consultative Committee.
The Panel also discharges such other functions that are specifically assigned to it.
• Standards Committee (convenes upon requirement) The Standards Committee convenes upon requirement and investigates allegations of breach of the member Code of Conduct and will make decisions on allegations made.
1.10 In addition to providing the accountability detailed above the Authority also represents the Service through strategic relationships and engagements in order to support the delivery of The Plan:
• s41 principles of local accountability – The lead s41 members represent the Authority at each of the 7 constituent councils providing the opportunity for two-way engagement. • The Local Government Association (LGA) – the Chair is a member of the Fire Services Management Committee (FSMC) and the Fire Commission. The Chair is also supported by the Vice Chair at the latter. The Chair is also a member of the National Joint Council Employers panel and supports the engagement between the employers and the workforce at a national level through dialogue with the Employees panel, which consists of representative bodies. • The Authority is an observer of the WMCA and through representation by the Chair the Authority is able to contribute to the regions key strategic priorities. • Regional Chief Fire Officers and Chairs Fire Service Engagement – the Chair represents the Authority in discussions with regional Fire and Rescue Authorities and Warwickshire County Council to support the Service around key initiatives such as collaboration. This discussion incorporates Staffordshire FRA, Hereford and Worcester FRA, Shropshire FRA and Warwickshire County Council.
16 • The Staffordshire & West Midlands Joint Fire Control Governance Board – The Chair represents the Authority at the board as a Co-Chair. The Board oversees governance arrangements of the joint fire control. • Local engagement with representative bodies and staff – The Chair undertakes regular engagement with the local Fire Brigade Union (FBU) and Unison representatives as part of promoting industrial relations. The Chair also represents the Authority as part of its engagement with staff by undertaking communication visits to every Community Fire Station and WMFS Headquarters. This engagement is informal and is not part of established processes. • Local Councils – the Chair represents the Authority through focused engagement with Council Leaders as part of supporting the Service in efforts to build and develop collaborative and strategic relationships. • Emergency Services – the Chair represents the Authority through engagement with the West Midlands Police and Crime Commissioner (PCC) and delegates at the Office of the West Midlands PCC, to support the Service in efforts to build and develop collaborative relationships. • The Association of Metropolitan Fire and Rescue Authorities (AMFRA) – The Chair represents the Authority at AMFRA, which consists of the metropolitan fire and rescue authorities that provide services to the main conurbations in England. AMFRA discusses and progresses issues affecting the metropolitan fire authorities and engage at all political levels and work cross-party to support improved outcomes. Engaging through this group has supported a greater recognition and understanding of the challenges affecting the metropolitan Authorities, which in turn has impacted upon expectations for future efficiencies. The Chair of the Authority chairs AMFRA.
Existing WMCA Arrangements:
1.11 The WMCA governance arrangements consists of the WMCA Board and a number of other Boards / Committees:
• WMCA Board
o Overall responsibility for developing and delivering the Strategic Economic o Plan (SEP) o Overall responsibility for developing the strategy and delivering Public o Service Reform (PSR) o Deliver the current devolution deal o To negotiate and deliver further devolution deals o Approval of future devolution deal development, to determine strategy on investment decisions o Allocating resources through the Combined Authority budget & income streams such as devolution deals o Determination of Transport strategy and spending priorities
17 o To operate a Cabinet model with Constituent Member Leaders ‘sponsoring’ a portfolio o To consider and determine applications for Constituent, Non-Constituent and observer status o To work with partners to develop the Midlands Engine o To work with Government to develop and influence national policy o To set up the fees for membership
• Audit, Risk & Assurance Committee
The Audit, Risk and Assurance Committee is a key component of the West Midlands Combined Authority’s corporate governance. It provides an independent and high-level focus on the audit, assurance and reporting arrangements that underpin good governance and financial standards. The purpose of the Audit, Risk and Assurance Committee is to provide independent assurance to the Authority of the adequacy of the risk management framework and the internal control environment. It provides independent review of the governance, risk management and control frameworks and oversees the financial reporting and annual governance processes. It oversees internal audit and external audit, helping to ensure efficient and effective assurance arrangements are in place.
• Overview & Scrutiny Committee
To ensure that decisions made by the Combined Authority, help make the West Midlands region a better place to live, work, study and do business. To undertake call-in arrangements for the Combined Authority. To make recommendations for appointment to the Combined Authority Board.
• Transport Delivery Committee
The Transport Delivery Committee will be a sub-committee of the Combined Authority Board. The Transport Delivery Committee will be part of the Transport for West Midlands (TFWM) activities. To provide oversight of operational delivery of transport across the West Midlands. As requested by the Combined Authority Board or Leader with Transport responsibilities, advise on transport policy matters. Be responsible for the discharge of specified transport functions delegated by the Combined Authority Board.
18 The Board membership consists of each of the 7 constituent councils, which cover the West Midlands conurbation – Birmingham, Coventry, Walsall, Dudley, Wolverhampton, Solihull and Sandwell.
Ten non-constituent members also form part of the Board and have limited voting rights – Cannock Chase District, North Warwickshire Borough, Warwickshire County, Nuneaton and Bedworth Borough, Redditch Borough, Rugby Borough, Shropshire, Stratford on Avon District, Tamworth Borough and Telford and Wrekin Councils.
The PCC and the Authority also sit on the Board as Observers. Whilst they do not possess voting rights, they are able to contribute to the strategic discussion and add value.
1.12 The WMCA has a number of priorities which are vested in the Mayor and WMCA portfolio lead members:
• HS2 growth and Health and wellbeing – devolution deals and communications & engagement, mental health, mental health commission and health devolution • Economic growth – delivery of Strategic Economic Plan (SEP), access to finance for business, Collective Investment Fund (CIF), WMCA growth company, international trade and exports, digital strategy and the arts and cultural activity • Housing and land – land commission, Land Remediation Fund (LRF) housing delivery, one public estate • Skills and productivity – skills and productivity commission (including employability), learning for the future and Further Education (FE) area reviews • Cohesion & Integration and Public service reform – public service reform agenda, troubled families, criminal justice, welfare reform, shared services and social inclusion. • Transport – delivery of Strategic Transport Plan, Midlands Connect, West Midlands Rail, HS2 delivery transport and Transport Delivery Committee • Finance and investment – delivery of the WMCA investment agenda • Environment
2 THE NEED TO REVIEW THE CURRENT FIRE ARRANGEMENTS
2.1 Public Services locally across the West Midlands are changing significantly and will continue to do so with the inception and progression of the WMCA. Central governments expectations around increased efficiencies and reform place an additional expectation on this continued change and transformation.
19
2.2 The fire and rescue services in England are not exempt from these expectations and will have made efficiencies in the region of £450m by 2019/20 since the introduction of comprehensive spending review (CSR) in 2010/11. Reductions have been experienced both in front line and support service staff. In many areas across England reductions have been seen in the number of fire stations and appliances available to attend emergency calls. As budgets and physical firefighting resources continue to be cut, it is becoming increasingly difficult to meet local needs and address risk in the communities.
2.3 In the West Midlands the Service has sought to implement a programme of transformation to ensure the risk based needs of local communities, targeting the vulnerable, continues to be met in order to deliver stringent service delivery performance standards. A review of the discharge of the Authority’s responsibilities provides an opportunity to review the external influences on the Service’s ability to sustain its service delivery arrangements. These influences range from changes in Government policy, expectations around reform and financial pressures to the wider benefit that can be leveraged from the services that WMFS are legislatively prescribed to deliver across the public sector in the West Midlands. They include the contribution the Service can make to the achievement of the Mayoral WMCA's strategic ambitions and priorities by supporting growth and reducing the total cost of delivering public services through a coordinated, integrated and collaborative delivery of services.
Background:
The Comprehensive Spending Review and the Service’s Approach to Service Transformation
2.4 The Authority has fully supported service wide transformation and has embraced plans to meet the circa 50% (£38m) reduction in central government grant (core) over the course of the CSR, covering the period 2011/12 to 2019/20.
2.5 As cited earlier ongoing transformation over the past 6 years has impacted on both service support and service delivery functions. The Service has met the required reductions in funding through exploring and implementing more challenging and innovative approaches to the delivery of internal and external community facing services. Whilst the Service has had to make decisions that have increased risk in some areas of response, prevention and protection, these have been assessed through an evidence based approach, using integrated risk management analysis to minimise the impact on services to the community and importantly, to ensure service delivery standards and expectations continue to be met.
2.6 Service transformation in this way has reinforced the Services’ priorities and outcomes as set out in The Plan. The Service Delivery Model (SDM) sits at the heart of The Plan and is underpinned by planning and analysis that determines the level of resources needed to be able to respond to high risk (life and property) incidents, within a risk based 5-minute attendance
20 standard. This attendance standard evidentially enables the Service to act assertively, safely and effectively thus reducing the risk to firefighting and increasing the survivability of the victim, as well as reducing the impact of the fire on the local community and economy.
2.7 The SDM is pivotal to supporting an integrated approach to the delivery of the Service’s prevention, protection and response services to the communities of the West Midlands. Amidst the challenges that the CSR presents to the Service, the SDM cannot be compromised particularly given the positive impact the SDM has at a time when the region has prioritised economic growth.
The Government’s Fire Reform Programme
2.8 In addition to the significant financial challenges for the fire and rescue services there has also been significant policy challenges through reviews such as those conducted by Sir Ken Knight, (Facing the Future 2013), and Adrian Thomas (Independent review of conditions of service for fire and rescue staff in England February 2015). These reviews continue to set the backdrop for the reform of the fire and rescue sector and is reflected in the Home Office’s policy development. However, they have been less challenging because the Service has and remains an agile public service committed to efficient and effective service delivery.
2.9 On the 11th September 2015 the Government released a consultation entitled ‘Enabling Closer Working between the Emergency Services’ which progressed the fire reform programme. This was soon followed by a move of government department for the fire and rescue service on the 5th January 2016, from the Department for Communities and Local Government to the Home Office. The fire reform programme has also encapsulated the reform of the professional voice of the England and Wales fire and rescue services, the Chief Fire Officers' Association (CFOA), with the Home Office contributing to its priorities. CFOA has undergone structural change mirroring the National Police Chiefs Council (NPCC), in addition to a name change resulting in the National Fire Chiefs Council (NFCC).
2.10 On the 24th May 2016 the then Home Secretary, the Rt Hon. Theresa May, issued a statement which outlined a clear desire from central Government to affect change and generate impetus for further reform wider than the delivery of services - reform of Fire and Rescue Authorities. The Government and the Home Office remain committed to implementing governance structures which provide increased scrutiny, transparency and accountability of decision making, building on the reform of Police Authorities.
21 2.11 The outcomes to the above consultation introduced the Policing and Crime Bill, which received Royal Assent in January 2017 (Policing and Crime Act 2017, PACA 2017). It introduced a new duty of collaboration on each of the emergency services. This Act also introduced new powers for elected Mayors to take on the governance of Fire and Rescue Services. It also delivered the same powers to the PCCs, where local agreement can be achieved.
Changing Governance and Future Opportunities
2.12 Government policy developments has also incorporated local councils with legislation enabling the inception of the West Midlands Combined Authority (WMCA) in June 2016 and a Mayor elected in May 2017. This change has provided a further opportunity to review the contribution that public services in the West Midlands can collectively make to the achievement of regional strategic priorities in a more efficient, effective and economical way.
2.13 The WMCA priorities are detailed in paragraph 1.12.
2.14 In view of the changing landscape and government expectations driven through policy and legislative reform, the Authority recognised that staying the same was not an option. The Authority identified four possible routes for the potential future governance structures for the Service:
• A Reformed Fire Authority (RFA), • A Police and Crime Commissioner (PCC), • A Mayor as part of the WMCA and • A Combination of regional Fire and Rescue Services.
These possible governance structures were subsequently subject to an appraisal by an independently chaired Future Governance Working Group (the Group) in 2017. The work of the Group is discussed in paragraph 2.21. A more detailed description of each of these governance models is provided in Appendix 5.
2.15 These governance structures are enabled through a number of pieces of legislation. Governance through a PCC or a Mayor as part of a Combined Authority represents the newest structures and the policy of the current Government, enabled through the PACA 2017.
2.16 With the introduction of the WMCA came the first devolution agreement for the West Midlands in 2015, providing the region with additional £36.5 million a year of funding allocation over 30 years in addition to devolved responsibilities.
22 2.17 Amongst these priorities the 2015 devolution agreement for the WMCA encouraged the exploration of further opportunities for devolution on the basis of an appropriate relationship between the functions of a Mayor, the PCC’s and the fire and rescue services. This intent is further outlined with respect to exploring such relationships in the mayoral manifesto.
2.18 These local and national changes have set the environment, pace and expectation of change to ensure the best outcomes for local communities.
WMFRA commitment to future governance
2.19 In view of Home Office expectations around the reform of the fire and rescue service developing apace, the Authority has embraced the developments and considered how it works with, responds to, and influences the changes to ensure the maintenance of risk-based services to local communities, delivered in a value for money way. The Authority acknowledged that a failure to address this could cause the Service to lose relevance, credibility and impact public confidence (an emerging corporate risk) from the uncertainty around the future governance of the Service, with the potential to impact on the priorities in The Plan.
The Evidence Base
2.20 The Authority committed itself to exploring an evidence based approach to understand how each of the future governance options, in light of the changing external influences highlighted in this review, may support the delivery of services to local communities, enable collaboration, whilst incorporating increased scrutiny, transparency and accountability of decisions; in a value for money way.
Future Governance Working Group
2.21 The Authority commissioned a Future Governance Working Group (the Group) to provide an options appraisal for the Authority to be able to make an evidence based decision on the best option for governance of the Service in the future and the best approach to achieving this. The group was independently chaired by professional services firm Price Waterhouse Coopers and consisted of a number of key stakeholders from across both the public and private sector:
23 • WMCA • Office of the West Midlands Police and Crime Commissioner • NHS England • Home Office • West Midlands Ambulance Service – Board of Governors • West Midlands Fire and Rescue Authority • Greater Birmingham Chamber of Commerce • Coventry and Rugby Clinical Commissioning Group
The approach to assessment:
2.22 Initially and importantly the Group considered how collaboration currently existed as well as the potential for the provision of future collaborative services across blue light emergency services, local councils, WMCA and the NHS. A critical part to this was the impact the governance model would have on the community and the ability to deliver improved public service to the local community, with increased scrutiny, transparency and accountability of decisions in a value for money way.
2.23 Each of the governance models were assessed against the achievability of this through a set of high level community outcomes, recognising both strengths and opportunities for each of the governance options as well as the possible barriers and risks to progression. The analysis undertaken by the group suggested that:
‘a two-stage process (two changes in governance, i.e. from Authority to PCC, then to Mayor) increases costs, risk and reduces benefits and as such should be avoided.’
‘The Mayor will happen and this will create opportunity in improving public services. WMFRA need to ensure they remain engaged in this to ensure the best opportunity for the delivery of outcomes for the future’.
It also added that:
• The benefits of the WMCA model included the ability to work directly with all 7 of the metropolitan councils, the potential for working with the Police, and the non-constituents in enhancing public safety and management the demand services. It referenced the Telecare Service provided by the Service to 3 of the 7 constituent councils as good examples of this. It also discussed the potential for a regional emergency planning function and the WMCA as an appropriate footprint to integrate wider services in order to spread cost and outcomes as widely as possible.
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• It referenced health as a central issue for the WMCA through its Mental Health Commission: “As public sector reform is pursued, effective working across the local authority/health boundary will be required, as is hoped for in the STP process. The Mayor will also have convening powers which will at least require health to be at the table. There is certainly further collaboration opportunity for the Service with Health, with several good examples from elsewhere.”
The Group conclusions can be found in Appendix 6.
2.24 The Group’s conclusions provided an evidence base to inform the Authority’s considerations and an avenue to provoke discussion about the merits of each of the options.
The Integrated Risk Management Plan (IRMP) Public Consultation:
2.25 The Service also undertook a public consultation during December 2016 to January 2017 to engage with the community and partners as part of its Integrated Risk Management Plan (the Consultation) on the future strategy to deliver risk based services across the West Midlands. As part of efforts to enable the community to develop its understanding about the changing landscape affecting the Service and to provide transparency, the consultation extended to future funding and governance. From a governance perspective the consultation outcomes identified a Reformed Fire Authority and a Mayoral Combined Authority as ‘desirable’ models for future governance for best supporting the delivery of its prevention, protection and response services to the communities of the West Midlands.
2.26 The influences of external change and a developing evidence base have provided the Authority with the justification to move forward and pursue the engagement of the WMCA and Mayor in determining the next steps in a proposed change in governance for West Midlands Fire Service.
3 HOW THE REGION CAN BENEFIT FROM A CHANGE IN GOVERNANCE MODEL AND INTEGRATING WMFS AS PART OF THE WMCA:
3.1 A transfer of governance functions to the WMCA will need to satisfy the following statutory requirements:
Section 105B(1) of the Cities and Local Government Devolution Act 2016 requires that:
25 ‘appropriate consent is given and the Secretary of State considers that the making of the order is likely to improve the exercise of statutory functions in the area or areas to which the order relates’.
Section 113(3) of The Local Democracy, Economic Development and Construction Act 2009 requires that:
'The Secretary of State must have regard to the need - (a) To reflect the identities and interests of local communities and (b) To secure effective and convenient local government'
3.2 This review will demonstrate how governance delivered through the Mayoral Combined Authority will improve the exercise of the statutory functions in the WMCA area to which this review and associated scheme relates, whilst reflecting the identities and interests of local communities and securing effective and convenient local government.
3.3 This will be achieved by delivering a stronger focus on collaboration across the region providing a joined up strategic approach, which is key to the Service’s strategic direction and delivery of its SDM. The opportunities the WMCA presents to widen and strengthen the delivery of collaborative prevention and protection based services was recognised as part of the options appraisal undertaken by the Group (cited in section 2). This is based on the strong track record the Service currently has in collaborating with local councils and other agencies to deliver joined-up services which focus on reducing vulnerability and creating stronger communities. This can be seen in the leadership the Service is currently providing to the WMCA work streams through the CFO leading on Public Service Reform. This change will meet the statutory requirements in 3.1. At the same time these changes will deliver public safety, value for money, increased scrutiny, transparency and accountability to communities, through the singularly elected individual the Government desires, in addition to providing the best opportunity for improving collaboration. The proposed arrangements are set out in section 5.
A workforce to support joined up services and reduce vulnerability
3.4 The Service’s strategy is ‘Making the West Midlands Safer, Stronger and Heathier’. The integrated SDM and five-minute attendance standard relies on an essential mix of resources and skills, provided through a whole-time multi skilled workforce delivering prevention, protection and response services.
26 3.5 The Service tackles the ‘causes of the causes’ and the over-arching risk in the West Midlands in this way. An example of its prevention activities is the holistic ‘Safe and Well’ visits. The Service gains access to more than 27,000 targeted-homes each year across the West Midlands as a direct result of the Service’s unique public standing in the community. These visits do not just focus on the potential causes of fire and safety issues, but go deeper to identify and address the wider health and or lifestyle issues which may, further down the line, lead to an emergency incident or acute intervention from the wider public services.
3.6 Under a WMCA governance arrangement promoting greater collaboration, greater benefit will be leveraged through interventions such as the holistic Safe and Well visits enabling the further reduction of vulnerability and providing added value within existing funding streams on a wide range of issues as recognised by Professor Sir Michael Marmot (Institute of Health Inequality) and Shirley Cramer (Chief Executive of Royal Society of Public Health).
3.7 The more joined-up delivery of services in this way, along with other initiatives such as better data and business advice (see Appendix 2) will not only address vulnerability within the community, strengthen the business community and enhance public safety in its widest context, but it will also deliver the economic savings referred to by the Group, as referenced in paragraph 2.23. The Service’s 21st century professional, flexible, integrated SDM has the potential to deliver significantly improved value based outcomes to the communities through a more joined up public workforce.
3.8 Having considered the potential to deliver significantly improved value based outcomes through the WMCA this review acknowledges the duty the PACA 2017 places on emergency services to consider collaboration where it would be in the interests of efficiency or effectiveness. The Service has long standing collaborative relationships with West Midlands Police (WMP) and the West Midlands Ambulance Service (WMAS). Some examples are listed in Appendix 7.
Continued improvement and transformation
3.9 It is clear that as funding for public services continues to reduce, there will be a need to further reform services to improve collaborative working. This reform has to deliver improved value to local communities and should also provide greater value to the public spend.
3.10 The Service’s commitment to transformation and reform whilst maintaining its commitment to the delivery of its integrated SDM is detailed above and as such the Service is one of the leanest Fire and Rescue Services in the country. This scale of reform has been achieved through working with the Authority, staff, representative bodies, partners and communities, implementing innovative concepts to new ways of working, which have enabled efficiencies to be achieved whilst maintaining and improving
27 services delivered to local communities.
3.11 This service transformation continues as the Service seeks to understand how future services can be delivered in a more efficient and effective way, whilst ensuring public safety is clearly met through the right ratio of resources to risk.
3.12 Being part of the WMCA will create further opportunities to progress transformation and create greater efficiencies enabled through a single structure. This is supported by the Group’s appraisal of the WMCA as the model which provides the best opportunity to realise these benefits as detailed in paragraph 2.23.
Effective decision making
3.13 A model which enables accountability and leadership to be aligned effectively will enable transparent and effective decision making and reduce bureaucracy. The WMCA will provide a stable and statutory body for the Service and the Mayor will provide an accountable figure for the Service and decisions made to local communities.
3.14 The Mayor as an accountable figure will satisfy the Home Office’s desire for ‘single accountability’ across public services, which together with the benefits from increased integration, greater collaboration across public services, increased public safety and value for money provide a sound rationale for the benefits of transferring the governance of the Service from the Authority to the proposed model. As discussed throughout this section this change could enable increased value to the communities through the delivery of joined-up services across the West Midlands.
3.15 The current governance arrangements for the Service through the Authority provides a model where accountability is spread across all 27 of its members. Representation is provided for across all seven constituent councils with a particular focus on ‘lead members’ for each local authority and political representation is proportional to the West Midlands area. Moving to a model of single accountability through the Mayor will provide an increased political focus on this role. The detail around the proposed model set out in section 5, below, aims to ensure that whilst accountability cannot be spread, the Mayor would be supported by a ‘Mayoral Fire Advisory Committee’ (the Committee) in the delivery of this role. The Committee will not be a decision making committee, this responsibility will remain with the Mayor and Chief Fire Officer, as appropriate. The Committee will advise the Mayor, represent the Mayor and review decisions made by the Mayor. Further details around the role of the committee is set out in section 5 and Appendix 8.
28 3.16 The Mayor will provide a more visible figure of accountability for the Service, which will support the expansion of collaborative opportunities in line with Government expectations set out in the ‘duty to collaborate’, whilst enabling, through the model proposed below, focused engagement with constituent councils in the delivery of local services.
3.17 Clear and transformational leadership across the West Midlands, will also ensure the continuation of the progressive process of devolution of funding and powers as set out in the WMCA first devolution agreement, to achieve the right outcomes for the communities of the West Midlands.
4 THE DIRECTION FOR THE FUTURE GOVERNANCE OF THE SERVICE
4.1 The options appraisal undertaken by the Group together with the outcome of the consultation, the current and future strategic directions of the Service, the WMCA and the overall direction set by the Government (both policy and legislation), supports the Authority as it seeks alignment to a governance model through the Mayor as part of the WMCA. The Authority believes this model would provide the best approach to the future delivery of services to the communities of the West Midlands as set out in paragraph 3. This is particularly so given the Authority maintains its belief that the Service is the largest and most complex Fire and Rescue Service outside of London, complexities recognised by Adrian Thomas as part of his review.
4.2 The route to a WMCA governance model has provided the opportunity to explore the relationship between the functions of a Mayor, the PCC and the Authority through local determination. This journey has triggered significant engagement with the Mayor, the WMCA, the PCC, the constituent council Chief Executives and the Leaders of the constituent councils. Support for the strategy to reform the Authority through joining the WMCA as proposed within this Review was unanimously provided at WMCA Board on the 3rd March 2017. This was preceded by approval of the overall direction and timeline for future governance of the Service by the Authority on the 20th February 2017. Subsequently the WMCA Board has approved the preparation of the Governance Review and Scheme on the 8th September 2017. These reports are referred to in the background papers, below.
4.3 It is proposed that the Service transfer into the WMCA at this stage to enable it to achieve the benefits identified by the Group and those listed above, whilst delivering on the duty to collaborate with the emergency services prescribed by the PACA 2017. This move will progress the intent in the first devolution agreement as set out in paragraph 2.17 whilst the Mayor and the WMCA explore the basis of an appropriate relationship between the functions of a Mayor and the PCC as further outlined in the mayoral manifesto.
29 4.4 A critical element to a change in governance to the WMCA will be the interim governance arrangements in continuing to provide the highest levels of public safety, supporting increased collaboration, without the associated costs an unnecessary change governance option would incur; as well as the risk of impact on engagement with staff, community and trust. In recognition of this the Authority believes that a Reformed Fire Authority (RFA) option can provide a more robust interim approach to governance, this was a key consideration of the Group. In its conclusions the Group determined that, ‘the Authority should consider how its own governance should change, to enhance opportunities for further reform and collaboration’. As such, it is anticipated that the RFA will be implemented in June 2018 to support the progressive change to a WMCA governance model.
4.5 An important local dynamic within the reform of the Authority is the enabling power the PCC has to seek representation on the Authority by virtue of the PACA 2017. The PCC has followed up on the Authority’s invitation to request a place on the Authority. This will be a key part of the RFA, subject to approval at full Authority. This evidences further progress around the intent to explore relationships within the West Midlands.
5.0 PROPOSED GOVERNANCE MODEL:
5.1 A Mayoral combined authority governance model for Fire and Rescue Services is very new. Changes implemented in Greater Manchester and those legislated for in London provide examples of how Mayoral models for governance for Fire and Rescue Services are developing. Further detail is set out in Appendix 9a – Mayoral Governance Models for Fire and Rescue Services and Appendix 9b – Comparison of London and Manchester models.
A WMCA Governance Model
5.2 As part of this model it is proposed the WMCA take on the Authority’s functions and as such will be to the employer of the Service’s staff and own all properties, rights and liabilities in this proposed governance model. The WMCA as a ‘corporate body’ will have the right structures in place to support the requirements of employer status, as well as any liabilities that result from this. These functions are set out by the following legislation and detailed further in Appendices 1 and 4.
Local Government Act 1985 Local Government and Housing Act 1989 The Local Government Act 1972 The Fire and Rescue Services Act 2004 The Fire and Rescue Services Order 2007 Civil Contingencies Act 2004
30 Regulatory Reform (Fire Safety) Order 2005 The National Framework for Fire and Rescue Services in England 2012
5.3 This model proposes that the Mayor (only) as a singularly accountable figure, will have the power to exercise these functions, delegating decision making and operational functions as appropriate. The essential roles, responsibilities and accountabilities of Mayoral governance, should incorporate functions transferred to the WMCA but exercised only by the Mayor as follows:
• Fire and rescue functions as required of the Fire and Rescue Service Act 2004 and other enabling legislation (detailed above and in Appendix 1). • Decisions and functions relating to all properties, rights and liabilities in relation to the exercising of fire and rescue functions • Accountability for the Integrated Risk Management Plan • Accountability for the Corporate Strategy • Approval of Budget and setting of precept • Appointment and dismissal of the CFO
5.4 The Mayoral Fire Advisory Committee (the Committee)
1. Enable leadership for the Service and Mayoral priorities across each of the 7 local constituent authorities of the WMCA.
It is proposed that through the Committee arrangements the philosophy of collective representation across all seven constituent authorities remain and that the Committee reflects the membership and balance derived from the approved arrangements for the West Midlands Reformed Fire Authority. This will enable proportionality across each of the constituent councils, as well as enabling continuity and equitable spread in roles and responsibilities.
It is proposed that lead members will represent the priorities and strategy of the Mayor and WMFS in their respective councils and will report on performance in relation to fire functions.
Committee members will also support their local community fire stations in engaging with the community and through providing a link into respective constituent councils.
31 2. Composition
It is proposed the committee appointed should consist of 15 elected members from the WMCA constituent councils, the Police and Crime Commissioner (in accordance with the PACA 2017) and three further co-opted members from health, Ambulance and the WMCA to promote greater challenge, transparency and further collaboration.
Existing political balance will be applied to the Committee.
The Chair of the committee will be appointed by the Mayor.
It is recognised within this proposed model that the Mayor will gain greater accountabilities and this will need to be balanced effectively with both existing and future roles and responsibilities. It is proposed that the Committee members will support the Mayor in providing advice around fire related issues to ensure the right level of detail and understanding is provided to inform the Mayors role as the Authority.
The Committee will support the Mayor in providing advice around exercising fire functions to ensure the right level of detail and understanding is provided to inform the Mayors role as the Authority.
3. Keep under review decisions made by the Mayor
It is proposed that the role of reviewing decisions made by the Mayor is delegated to the Committee. Such reviews will be aligned to the National Framework for the Fire and Rescue Service and through prepared reports, will inform the WMCA about decisions made in relation to the exercising of fire and rescue functions. This will enable a continuation of knowledge and expertise in relation to fire at the outset of transferring the role of fire into the WMCA.
The Committee will review decisions made by the Mayor.
The proposed role of the Committee would be to report back to the WMCA on decisions made.
The Committee will not be a decision-making committee this responsibility will remain with the Mayor and Chief Fire Officer, as appropriate.
4. Act as the ‘voice’ of the fire service within the 7 Constituent councils, regionally with other Fire and Rescue Services, nationally through the National Joint Council and Local Government Association.
32 The Committee will support the Mayor by continuing with the strategic engagements cited in paragraph 1 thereby adding value to and influencing local, regional and national engagements through its sector expertise.
5. Engage with and influence government policy on behalf of the Mayor in matters such as the impact of CSR on the ability to provide continuity of services to the West Midlands communities.
Working regionally and nationally with the Fire Sector to engage with and influence issues such as flooding, funding, etc. The Committee will continue to be a key resource in enabling a wider awareness of the challenges faced locally both from a fire-fighting and community perspective. It will continue to represent the Service through bodies such as AMFRA listed in paragraph 1.
6. Enable the development of collaboration, partnerships and services to the community through engagement with local councils, emergency services and beyond, thereby fulfilling the requirements of the duty to collaborate.
The Committee will provide the support required to fulfil the legislative obligations prescribed by the PACA 2017.
5.5 This proposed model seeks to create an efficient and effective decision making structure, which will support the Mayor in focusing on strategy and setting direction for the Service.
5.6 This proposed model compares favourably with the model recently implemented in Greater Manchester. The model for London which is yet to be implemented is different in that the London Commissioner role also acts as the governing body. It is understood that the scrutiny role of the Greater London Assembly can in the case of fire be delegated to its fire committee.
5.7 An overview of the proposed governance framework incorporating roles and responsibilities of the Mayor, committee and CFO/Officers is set out in Appendix 8.
5.8 CFO/Officer roles
This model will enable the Mayor to delegate functions to the CFO enabling the CFO to be directly accountable for:
• the management of the Service • the delivery of WMFS Strategy (incl. matters relating to exercising functions of the Fire and Rescue Services Act 2004, etc.) • the delivery of a staffing structure and model which supports current and future Strategy • the deployment of resources to meet risk
33 • the transformation of services to meet WMFS and Mayoral/WMCA priorities.
5.9 The above areas of accountability would enable the CFO as head of paid service of West Midlands Fire Service to effectively manage staff, employee relations, workforce development, resources and assets to support the delivery of day to day functions, as well as the development of future delivery of services aligned to the strategy agreed with the Mayor. Such a proposal appears well placed when considered alongside Chief Officers for other emergency services.
5.10 In accordance with section 2(3) of The Police Reform and Social Responsibility Act 2011 a Chief Constable has direct control of the police force and civilian staff of a police force. This is therefore equivalent to the head of paid service conferred by s4 of the Local Government and Housing Act 1989. Furthermore, a Chief Constable is also a corporation sole by virtue of s2 of Schedule 2 of The Police Reform and Social Responsibility Act 2011.
6. The legislative route to enabling Mayoral governance
6.1 The main pieces of legislation enabling the change to be enacted in governance can be listed as follows:
• The Local Democracy, Economic Development and Construction Act 2009 and • The Cities and Local Government Devolution Act 2016 • The Policing and Crime Act 2017 (PACA 2017)
6.2 The preferred route to achieve Mayoral governance of WMFS is through the Cities and Devolution Act 2016. This legislation enables the WMCA to take on additional functions, either local authority and/or other public authority functions. This route will enable, through a devolution deal, the powers and functions of WMFRA to be devolved to the WMCA and exercised only by the Mayor.
6.3 The justification and evidence base to support this route has been provided throughout this review and is listed in the scheme. The scheme will be consulted upon and approved locally prior to being submitted to government. The process is detailed below.
6.4 Process and timeline:
The following timeline demonstrates the next steps and stages required to effect the change in governance as outlined in this review. The timeline is indicative but it is envisaged that the governance could be implemented within a 15-18-month period.
34 It should be noted that if the transfer of the Authority functions to the WMCA were to be achieved within this period, the RFA as an interim governance change may not be necessary move.
October - November 2017: Constituent Authority approval of content of governance review and scheme.
8th December 2017: WMCA approval of content of Governance Review and Scheme.
January – February 2018: Consultation of proposals set out in the scheme on behalf of the Secretary of State (a minimum of 6 weeks)
March 18: Analyse consultation responses locally
April 18: Governance Review, Scheme and analysis of consultation reviewed by Secretary of State (4-12 weeks)
May - June18: Government development of Order detailing changes required in legislation to abolish WMFRA and amend legislation to enable future WMCA governance
July - September 18: Constituent Authority/ CA approval of detail of Order
September - October July 18: Order amended where needed locally enters Parliamentary Process
November 18: Secretary of State approves Order
November/ December 18: Authority functions can transfer to the WMCA
7. Schedule of background papers
WMFRA report: ‘Route Map to Mayoral Governance’ (20 February 2017) WMFRA Report - Future Governance Working Group (20 February 2017) Future Governance Working Group Report February 2017 West Midlands Combined Authority (WMCA) report (3 March 2017) WMFRA report – ‘Route map to Mayoral West Midlands, Combined Authority Governance - a Reformed Fire Authority (RFA) and decision (10 April 2017) West Midlands Combined Authority (WMCA) report (8 September 2017)
35 8. Appendices Appendix 1 – The Most Pertinent Legislatively Prescribed Service Delivery Provisions:
The most pertinent legislatively prescribed service delivery provisions are as follows:
• The Fire and Rescue Services Act 2004 As a requirement of the Fire and Rescue Services Act 2004, the Government published the Fire and Rescue National Framework setting out the priorities and objectives for Fire and Rescue Authorities in England. FRA’s must have regard to it in carrying out their duties. The Framework places responsibility on Fire and Rescue Services to prepare an Integrated Risk Management Plan (IRMP). The plan must include targets and objectives for reducing risks, balancing prevention and intervention, and determining response standards and resource allocation. In West Midlands this is called The Community Safety Strategy. The CFO will manage and advise the Mayoral on the IRMP, subject to the Mayor’s approval.
• The Fire and Rescue Services (Emergencies) (England) Order 2007 Section 58 of the FRS Act 2004 specifies other emergencies for which fire and rescue authorities must make provision. These are set out in the above Order 2007 and specifies functions in connection with emergencies involving chemical, biological, or radio-active contaminants, structural collapse or a train, tram or aircraft (“transport emergencies”), but does not apply in relation to transport emergencies, unless the incident is likely to require a Fire and Rescue Authority to use resources beyond the scope of its normal day to day operations.
In addition, where a Fire and Rescue Authority has specialist resources, including specialist trained personnel, to enable it to deal with emergencies of a kind described in this Order, and such an emergency occurs or is likely to occur in the area of another Authority; this Order requires the Authority with the specialist resources, if asked to do so, to use those resources in that other Authority’s area so far as is reasonable for the purpose of dealing with the emergency. The CFO will manage the configuration of the resources as part of day to day business, however, the Mayor will retain oversight and be able to provide time critical resilience to emergencies on a regional and national scale.
• The Regulatory Reform (Fire Safety Order) 2005 This places emphasis on business continuity and containing and preventing the spread of small fires. It provides a minimum fire safety standard in all non-domestic premises. It designates a person (e.g. employer, manager or owner) as a responsible person who is then required to carry out certain fire safety duties, which include ensuring that general fire precautions are satisfactory and that fire risk assessments are conducted.
36 Fire Authorities are the primary enforcing agencies for all fire legislation in non-domestic use. The Authority has delegated the power to prosecute to the Chief Fire Officer. However, the Mayor will retain oversight.
• The Civil Contingencies Act 2004 The Civil Contingencies Act 2004 delivers a framework for civil protection. It establishes a statutory framework of roles and responsibilities for local responders; of which the Authority is one, and on emergency powers, establishing a framework for the use of special legislative measures that might be necessary to deal with the effects of the most serious emergencies. The Act also divides local responders into two categories. The Fire Authority is a Category 1 responder. This means that it is at the core of emergency response. Upon transfer of governance the CFO will continue to manage operational handling and the Mayor will retain oversight.
37 Appendix 2 – A Risk Based Service and Risk Based Service Delivery
The Service is a unique public body in that it is funded to provide adequate cover against risk, informed by demand, as opposed to restricted to demand. Risk is analysed by employing sophisticated processes to manage performance in responding to emergency incidents, based upon the principle of proportionality, dependent on the risk involved. Local geography is analysed, based on factors such as deprivation and the history of dwelling fire incidents within locations to determine the weighting of the risk. In this way, a picture is painted of the future likelihood of high risk incidents occurring in particular areas allowing a reliable Risk Map for assessing foreseeable future risk to be developed. The Area Risk Maps (ARM’s) are then used as the basis for planning prevention, protection and emergency response strategies. This data is key not only relevant to WMFS but also to partners in authorities such as constituent councils, health and social care.
It serves a population of more than 2.8 million people with some of the most diverse and multi-cultural communities in the country, in a relatively small geographical space. The population demographics, socio-economic and health and well-being challenges means that the Service has amongst the highest levels of social risk in England, which makes its communities particularly vulnerable to fire, road traffic and other emergency incidents. The West Midlands has a disproportionate percentage of the total number of incidents with more fires per head of population in the West Midlands compared to the rest of the country including London. There are also proportionately more serious life threatening incidents in the West Midlands as is shown by analysing the Primary Fires. There is a similar pattern when total incidents - not just fires but all manner of emergencies.1 Serving a relatively small geographical space means that WMFS’ fire stations serve more people compared to the rest of the country, serving the highest levels of population outside of London, typically double the population of other non-Metropolitan FRS’s.2 Serving larger number of high risk people means WMFS stations are amongst the busiest in the country, attending more than double the number of incidents per Fire Station.3
Prevention, Protection and Response Services:
Prevention – creating a healthier community through changing behaviours to improve outcomes
As well as responding to risks when they do happen WMFS is about preventing those incidents and protecting communities in the first instance – That is where its key successes and improvements have been. Nationally, the FRS has undergone a major cultural
1 CIPFA Fire Statistics 2 CIPFA Fire Statistics 3 CIPFA Fire Statistics
38 change to embrace prevention and develop a sophisticated understanding of community risk. This has brought about a dramatic reduction in fires (58%), deaths (38%) and injuries (35%) through services’ engagement with communities.4 The Service plays a very practical and essential role in managing and responding to the risks that face society and they are also uniquely placed to reduce some of the risk in the community through their unrivalled standing and high levels of public trust, satisfaction and confidence by situating firefighters at the very heart of the West Midlands community. This allows the community to have comprehensive contact with firefighters who are then able to cross the front doors of residents in the high 80% of the time without any prior contact. This means WMFS firefighters are able to go further when conducting their comprehensive Safe and Well Checks in providing critical interventions, promoting health messages and making referrals to appropriate services to help keep people safe and reduce incidents of harm – fire-fighting upstream.
Protection Services – creating a stronger business community
Serving the heartlands of businesses and the UK economy the Service plays a major role in contributing to the national protection activity. The West Midlands has large numbers of industrial and relatively high risk premises within its community. Often this is a legacy of former industrial heritage and how the cities have developed. One example of the relative risk is that the West Midlands has a higher percentage of unsatisfactory business audits undertaken, meaning they comprise the greatest business risk, which therefore requires further resources to enforce compliance.
Accordingly, protection services are geared towards supporting the local economy. This means prioritising the business sector, focusing on giving a wide range of advice and, when necessary, enforcing the law through qualified inspectors. Officers also work with building control and approved inspectors to inspect plans for new buildings and ensure compliance with the following:
• Clear access routes for fire appliances in areas of new build • Adequate water supplies and firefighting facilities • Suitable escape routes and fire resisting construction • Safety systems such as fire alarms and escape lighting
Safety audits are carried out using a risk based system of ranking sites in order of priority, to ensure visits take place where they will achieve the greatest impact on safety.
The business help-first approach helps to foster positive perceptions in the diverse business community of the West Midlands where there are more small to medium businesses with 18,337 new businesses registered in Birmingham in 20145, the highest in
4 Fire Statistics Data Tables, Home Office 5 Start-up Britain 2014
39 any UK city outside London. 80% of small to medium businesses in the West Midlands do not recover from a fire. An important part of the work the Service does is to work with such businesses to increase their resilience and help to keep businesses in businesses. These activities strategically align to the WMCA, which has prioritised economic development as part of its plans to use its extensive economic market area covered by the three Local Enterprise Partnerships (LEPs) to jointly create an economy which is the strongest outside London and contributes fully to the Government’s vision of a wider “Midlands Engine for Growth”.
Response Services – creating safer communities:
Although the Service has been very successful in reducing fires, there remains an underlying level of risk which means that the Service needs to be resourced to enable it to continue to respond effectively to all the risk in their communities. There is a key public expectation that the Service will respond swiftly to help effectively whatever the emergency. Emergency response will always remain a core priority because, despite efforts to prevent fires and reduce their impact, they and other emergencies continue to occur, putting life, property and the local economy at risk. Emergency calls range from rubbish fires, road traffic incidents, special service calls or a life threatening house fire.
Incidents which threaten life or property require swift attendance times. A swift attendance time reduces the risk to the victim and the responding firefighter, and the financial impact of fire on the local and national economy. WMFS believe that achieving the fastest response time possible is evidentially important to survivability.
Alongside coping with local risks the Service is an integral part of the National Resilience plans for dealing with serious incidents and major catastrophes including natural disasters, terrorism, whereby it provides specialist support in the event of Marauding Terrorist Fire Arms incidents, and specialist capabilities to the UN approved UK International Search and Rescue Teams.
40 Appendix 3 – Current governance framework for WMFRA CURRENT WMFRA MODEL ROLES & RESPONSIBILITIES HOW IS THIS ENABLED? WHAT DOES THIS MEAN?
• Governance (supervisory body) for WMFS WMFRA is responsible for employing staff, Officers prepare and present the IRM and Corporate • Accountable for ‘fire and rescue’ functions – FRS owns all assets and is liable for all Strategy for Authority approval West Midlands Fire Act 2004: civil/criminal action. and Rescue Authority • Approve the Integrated Risk Management Plan Officers prepare and present all financial, property (WMRA) 27 and asset plans for Authority approval (N.Framework), Corporate Strategy, budget * councillors WMFRA is accountable to the • Raise council tax precept proportionality communities for services provided as set Officers manage all activity to ensure services are • Owns all properties, rights and liabilities, representing 7 out in the Fire and Rescue Services Act delivered as set out in enabling legislation including employment contracts and other enabling legislation constituent councils. • Appointment of Principal & Statutory officers Officers line manage all employees & Model based on • Lead members (section 41) enable Local employee/management relationships through WMFRA collects council tax contributions Section 41 – lead Authority representation employee relations framework from constituent councils member principles • Regional and national (LGA/NJC) rep
• Lobbies government - AMFRA
Committees Audit – governance, risk management and financial Committees provide delegated roles on Executive arrangements have reduced and now control behalf of the WMFRA. Both Audit and hear urgent matters & scrutiny outcomes. Councillors undertake Scrutiny are ‘statutory’ roles. delegated Scrutiny – inform policy development and scrutinise performance Scrutiny is an important element of ‘good responsibilities Scrutiny supported by officers to enable an governance’ in ensuring robust Executive Committee – urgent matters, approve effective approach to reviews. frameworks are in place procurement over £250k
Head of Paid Service Decision making to enable operational • line management of staff Chief Fire effectiveness through the right: • development of staff Officer/Officers Control of all matters relating to administration of • Day to day varying deployment of WMFRA functions under fire and rescue services act • Allocation of resources Delegated resources to meet risk & other legislation - firefighting, fire safety, road • People responsibilities • Effective varying of staffing structure and traffic collisions, emergencies, civil contingencies, • workforce development SDM to match resources to risk MTFA, National Resilience. To enable delivery of the SDM & WMFRA Accountable to • Advises WMFRA on exercise of fire and strategy WMFRA rescue functions
41
Appendix 4 – Legislative Responsibilities Currently Placed on WMFRA
The responsibilities as set out in the following pieces of legislation will need to be transferred on abolition of the Authority.
• Local Government Act 1985 The Authority as it stands was legally created under the LGA 1985, which created joint fire authorities and stipulated the number of Members appointed from constituent councils to the Fire Authority (27). Section 34 also sets out the annual appointment of the Chair, Vice Chair and Clerk. The responsibilities as set out in this Act including their transfer will depend on the governance model adopted for the future provision of community services.
• Local Government and Housing Act 1989 This Act requires the designation of one of WMFS’s officers as Head of Paid Service (the Chief Fire Officer) and outlines the specific responsibilities of this role. It also stipulates the requirement to appoint a Monitoring Officer. It is proposed the CFO will continue to be the head of paid service and will be accountable to the Mayor in the operation of their duties, subject to the detail set in the Scheme and the WMCA’s Constitution. The requirement to appoint a Monitoring Officer will depend on the governance model adopted.
• The Local Government Act 1972 This Act requires the appointment of a Chief Finance Officer (section 151 Officer) in addition to the appointment of such officers as the Authority thinks necessary for the proper discharge of its functions. Under this Act the Authority may also acquire, appropriate or dispose of land/and or premises. Further, the Authority is permitted to make standing orders in respect to the making of contracts by them or on their behalf (subject to relevant procurement legislation). The responsibilities set out in this Act will depend on the governance model adopted.
42
Appendix 5 – The Governance Models
A Fire and Rescue Authority
Currently all Fire and Rescue Services (excluding Scotland, London and those abolished upon incorporation in combined authorities) whether Metropolitan, Combined or County Council, are governed through an Authority and Committees. These provide democratic accountability and governance of Fire Services to the communities they serve.
A Fire Authority is a statutory body. The Local Government Act 1985 and Local Government and Housing Act 1989, provides the basis for these arrangements. More specifically, for West Midlands Fire Service as a Metropolitan Service schedule 10 of the 85’ Act sets out the number of Members that should sit on the Authority, apportioning this amongst each of the 7 West Midlands Local Authorities.
The purpose of a Fire Authority is to provide policy and political direction to the Service and to carry out strategic and legislative duties such as the approval of the Authority budget.
A Police and Crime Commissioner (PCC):
The introduction of the Policing and Crime Act 2017 (PACA 2017) as an outcome of the ‘Enabling Closer Working’ consultation, introduced two key proposals:
It placed a duty on each of the emergency services to consider collaboration. PACA 2017 also enabled the governance of the Fire and Rescue Services to be provided for through a single elected accountable person, a Mayor or where this is locally determined, a PCC. PCC’s now have the ability to submit a business case to the Secretary of State, to take over the governance of Fire and Rescue Services in their areas.
Any business case must be able to demonstrate the benefits of this change against the delivery of improved efficiency, effectiveness, economy and public safety.
The PACA 2017 provides two options for the future governance and management of both organisations (Police and Fire).
The first is where the PCC provides the governance for both the Police and Fire, with Chief Officers from both organisations reporting in through their separate management structures. This would lead to the disbanding of the Authority and the transference of the employer status for fire and rescue staff to the PCC.
43 The second also enables the PCC to provide governance for both Services but appoints a ‘single employer’, a Chief Officer, to oversee both organisations (Police and Fire). In this option the Chief Officer becomes the employer of fire and rescue staff.
The PACA 2017 also makes provision for differing arrangements in London where the London Fire and Emergency Planning Authority (LFEPA) will be abolished and the London Fire Service will be brought under the direction of the Mayor of London, who will set its budgets and strategic direction. The London Fire Commissioner will become a ‘corporation sole’, with the functions of the abolished LFEPA being transferred to the Commissioner. The Commissioner will have the functions of the Fire and Rescue Authority for Greater London. A Fire and Emergency committee will be formed with the purpose of scrutinising the Commissioner, Fire Service and Mayor.
West Midlands Combined Authority and the Mayor:
As part of public sector reform, handing down power and money from central government to local authorities through devolution deals, means that decisions and spend can be made locally for the benefit of the region. This can be achieved through the joining of services to deliver better outcomes for the community. Devolution is a critical agenda for central government and through the Cities and Devolution Act 2016, has been delivered through a Mayor as the single accountable leader of a Combined Authority.
Mayoral elections for WMCA took place on the 4th May 2017 and following amendments to the PACA 2017 at Bill stage, provisions are in place for the Mayor to have the direct power to “exercise the functions of Fire and Rescue Services”. This has provided a route for the governance of the Service to become functions of the Mayor as part of the WMCA and be provided for through this structure.
Combination of Fire and Rescue Services:
The west midlands county footprint incorporates five fire and rescue services. Research undertaken during 2015 highlighted the possibility of the combination of Fire and Rescue Services with the potential to increased public safety and improved performance whilst delivering wider efficiencies. The commitment to joint working within the WMCA footprint is evident by the increase in the number of non-constituent members which brings into focus the wider fire and rescue services.
The Fire and Rescue Services Act 2004 and enables the PACA 2017 enables these changes to be made.
44 Appendix 6 – The Future Governance Working Groups Conclusions
1. The analysis suggests that a two-stage process, whilst there is no “stand out” option, increases costs, risk and reduces benefits and as such should be avoided. There is considerable potential change in the next year or so:
- PCC business cases - The development of the Combined Authority model in Manchester and London - The programme of the Mayor and the WMCA - Additional devolution deals
The WMFRA needs to ensure it continues to engage with stakeholders to ensure it can fully consider its position and the options available to it.
2. The Working Group found that there was enthusiasm and commitment from other organisations for collaboration. The Service has made great progress over recent years, and the working group felt that the Authority would benefit from considering its constitution and structure and how it might change enable further collaboration.
3. The Mayoral and WMCA model is just emerging and the first Mayor is yet to be appointed, so there is as yet lack of clarity about its programme. However, change with a new Mayor will happen and this will create opportunity in improving public services. The WMFRA need to ensure that they remain engaged in this to ensure the best opportunity for delivery of outcomes for future.
4. If a mayoral option is not available in the medium term for police or fire, then the options would need re appraised to ensure the benefits of collaboration across the emergency services and wider public services are realised.
5. The Bill does not enable governance changes with the Ambulance Service which may prevent full collaboration to be realised as well as the benefits from this.
6. Ambulance sits outside of governance analysis however the opportunities for collaboration are significant
7 A Fire/Fire combination would realise significant benefits at lower risk than other options. This would require local consensus and a formal business case, approved by the Home Office. The associated Council tax consequences, and any boundary issues would need to be considered.
45 8 The PCC model is relatively new but is having an impact on Police effectiveness. Although there would be some risk associated with the Fire/Police combination, there could be significant cost benefits.
46 Appendix 7 – Collaborative Relationships
Multi-Agency Specialist Assessment Team (MASAT):
Combining the resources, expertise and specialist knowledge of the Service, West Midlands Ambulance Service (WMAS) and West Midlands Police (WMP) for the initial assessment of hazardous substance at potential/suspected Chemical Biological, Radiological and Nuclear (CBRNe) incidents achieves a flexible and a scalable approach, which delivers an effective and efficient response.
The relationships formed through this work has enabled greater communication particularly with WMP. Through these relationships, shared work locations have now been established, which further the ongoing support for daily activities and the ability to share information.
The Multi Agency Specialist Assessment Team (MASAT) seeks to develop a single, joint and co-ordinated emergency services response to a suspected/potential CBRN(e) event, implementing consistent working practices and maximising interoperability across equipment, resources and knowledge.
The MASAT is a combination of CBRN(e)/HAZMAT specialist resources from WMFS, WMAS and Police Officers from the four regional forces. By working as a single operational entity the MASAT will provide an initial assessment of suspected/potential CBRN incidents and rapidly detect, identify and monitor the presence of any hazardous substance, to secure an informed and proportionate multi-agency response. The team may also be deployed to other incidents which encounter hazardous materials, for example, chemical suicides and drugs or explosive laboratories where chemicals are found.
The principal contributions of each service are:-
Ambulance Service The WMAS Hazardous Area Response Team (HART) provide an initial health assessment of any incident and alert the wider health community on their potential scale and impact. The team support Fire and Police Service responders, ensuring a safe system of work and providing immediate medical care to MASAT staff.
Fire Service
47 The Fire Service provide a Detection Identification and Monitoring (DIM) capability to rapidly identify and analyse suspected CBRN(e) substances. The team also ensure that items recovered are handled and retained with due care for forensic integrity. The team also ensure that safe systems of work exist for Breathing Apparatus equipment and rescue functions.
Police Service The Police Service will have primary responsibility to command the response to an actual or potential CBRN(e) event by managing any civil disorder, to ensure a permissive environment exists in which the other emergency services can operate. It will also conduct intelligence/scene assessments to inform operational risk assessments and any subsequent response.
Benefits: A more dynamic, effective and efficient delivery of services when an incident occurs as all emergency services respond together using the same approach and together.
Collaborative Pensions Board:
WMFS and WMP chair each other’s respective Pensions Board meetings. This arrangement was established in order to provide an independent Chair at each Pension Board meeting without incurring additional costs.
Benefits:
• This has been a quick win for both services and has removed the potential costs associated with recruiting an independent Chair into this role. • Sharing of practice and development of working relationships between the WMP and WMFS.
Emergency Planning / LRF
For a number of years WMFS and WMP have shared the co-ordination and delivery of the Local Resilience Forum (LRF) in support of the Local Authorities and other Category 1 and 2 responders under the Civil Contingencies Act.
WMFS and WMP provide the Chair and Vice Chair of both the Strategic LRF and the General Working Group (GWG) that supports the LRF. The administrative resources for the LRF are employed by WMP but directly support the Chair from WMFS.
48 Local Police Units & Operations Commanders:
This collaboration is underway with WMFS Operations Commanders regularly attending WMP Local Police unit meeting and vice versa.
There are regular meetings between the Principal officers in WMFS and WMP to ensure that all opportunities are discussed such as:
• The possibility of sharing data and information about properties and estates • Looking at closer alignment of LPU/Command plans to take account of each other’s local priorities • The chance of Police sharing data about RTCs to help WMFS measure the impact of prevention activity
49 Appendix 8 – Proposed Future Governance Framework for Mayoral model
ROLES & RESPONSIBILITIES WHAT WILL THIS MEAN?
• Governance (supervisory body) for WMFS, guided by LGA and LGiH Acts • The WMCA owns all properties rights and liabilities Mayor • Exercises all ‘fire and rescue’ functions – FRS Act 2004 and enabling: of the former WMFRA and all functions • Accountable for the: • The WMCA employ all staff including the CFO Single elected • Integrated Risk Management Plan (N.Framework)* • The Mayor only can exercise all fire and rescue accountable figure • the Corporate Strategy – The Plan* functions and can delegate these to a committee and/or officers other than* functions • Budgets (Capital and revenue)* • The Mayor is accountable figure to the communities • Raises precept for services provided, as set out in the Fire and • Responsible for Senior & Statutory Officer appointments Rescue Services Act and other enabling legislation WMCA • The Mayor provides strategic policy direction • The Mayor oversees the efficiency and effectiveness • Owns all functions, properties, rights and liabilities, including employment (governing body) of WMFS contracts of WMFS staff
• Leadership for WMFS priorities across seven local constituent authorities The MFAC has clear delegations around scrutiny of • Enabling development of local authority and health care partnerships Mayoral decisions, providing reports to the WMCA Fire Advisory • Review functions - i.e. reviewing decisions made against the local risk plan Supports the Mayor both locally and nationally as the Committee (Specialist and the corporate strategy (statutory functions) political ‘voice’ for WMFS • Enabling regional fire and local government relationships review and advice to Mayor) • Lobbying functions with other FRSs through AMFRA • A voice and representation within LGA and NJC working with alongside NFCC • Ceremonial support for Mayor for WMFS
Head of Paid Service for WMFS Accountability for the delivery of Strategy and Chief Fire Accountable to the Mayor for the delivery of services within a balanced budget: Integrated Risk Plan, enabled through robust decision Officer/Officers making at the right level. Delivering operational • the delivery of WMFS Strategy (incl. matters relating to exercising functions effectiveness through the right: Accountable to the of the fire and rescue services ac, etc) • Mayor the delivery of a staffing structure & models supporting current and fuure • Allocation of resources Strategy • Recruitment and management of staff • the deployment of resources to meet risk • workforce reform & development • the transformation of services to meet WMFS and Mayoral/WMCA priorities.
50 Appendix 9a – Mayoral Governance Models for Fire and Rescue Services
London arrangements: The Mayor of London already provides a role for oversight of the current London Fire and Emergency Planning Authority (LFEPA). The new London Mayoral model which is created by the Policing and Crime Act 2017, places responsibility for the governance of the London Fire Brigade with the London Fire Commissioner (LFC), transferring the functions of the LFEPA to the LFC. This role will also be the Chief Fire Officer for the Fire Brigade.
The detail around this model is still emerging and a ‘scheme of supervision’ is currently being created to ensure the Mayor is able to hold the LFC to account for the exercise of functions.
A ‘fire, resilience and emergency planning committee’ was constituted on the 3rd May 2017 and is intended to provide a scrutiny function to the LFC on behalf of the Mayor.
Manchester arrangements: The Manchester Mayoral model created through the Cities and Devolution Act 2016, transfers the governance of the Fire and Rescue Service and the functions of the previous Fire Authority, to the Greater Manchester Combined Authority (GMCA). However, these functions are only exercisable by the Mayor. The transfer of these functions took place on the 8th May 2017.
The Mayor is able to delegate to both the CFO and a ‘fire committee’.
A ‘fire committee’ is provided for within the order that created the fire function within GMCA, The Greater Manchester Combined Authority (Fire and Rescue Functions) Order 2017. The role of the fire committee is not set out in this order and but is in the early stages of being developed.
What are the differences?
The London model places accountability for governance, delivery of fire and rescue functions and services, the ownership of assets and employment of staff on the LFC role. This role will also be the CFO for the Fire Service.
The scrutiny role enabled through the ‘fire, resilience and emergency planning committee’ is essential for this model.
The Manchester model enables the responsibility for the delivery of services, the ownership of assets and employment of staff to be spread. Whilst the GMCA employs staff and owns assets, the Mayor is accountable for the exercising of ‘fire and rescue’ functions. The Mayor can delegate some functions to a deputy, committee and the CFO.
51 The advantages of the LFC model will be that there is clarity in roles and responsibilities around decision making concerning the management of fire service resources and in particular the development of the workforce. The accountability of the LFC will enable a progressive and agile approach to the transformation of workforce and services delivered to local communities.
The LFC holds a great deal of accountability and liability within a ‘Corporation Sole’ model which will present risks. It is assumed that whilst this model is now legislated for, there is still some detail being worked out as progress to implement has so far been deferred.
The Manchester model retains accountability for decision making with the Mayor. These decisions can be delegated to a committee or to the CFO. There will need to be clear delegations between the roles of the GMCA, Mayor, Committee and CFO, to ensure that the fire service is able to maintain operational effectiveness and transform services through effective decision making. The committee model offers additional political support to the Mayor, informed advice and guidance and maintains a clear connection through lead members with each of the constituent councils in the region.
There remains within each model, essential scrutiny functions.
52 Appendix 9b – Comparison of London and Manchester models
This comparison seeks to clarify the differences between the governance models of Manchester Fire and Rescue Service and London Fire Brigade. The Manchester model is now in place but in its infancy, the London model is not as yet and there are elements to both which are still emerging and developing.
London Fire Brigade to London Fire Commissioner Manchester Fire and Rescue Service to Greater Manchester Combined Authority
• The Policing and Crime Act 2017 (PACA 2017) • The Greater Manchester Combined Authority (Fire and Rescue Functions) Order 2017 (S.I.2017/469) • The Greater Manchester Combined Authority Order 2011 (S.I.2011/908) The London Fire and Emergency Planning Authority The Greater Manchester Fire and Rescue Authority (LFEPA) is the Fire Authority for London Fire Brigade. (GMFRA) have been abolished. What are the Fire Authority functions and This is to be abolished by the above Act and its The functions of the GMFRA are transferred to how has/will functions are to be transferred to the London Fire Greater Manchester Combined Authority (GMCA) this change? Commissioner (LFC). These are the ‘fire and rescue’ under the above 2017 order. This took place on the 8th functions and passes responsibility for providing fire May 2017. GMCA will employ staff and own assets. services to the Mayor from October 2017 (though date
tbc by Parliament). The PACA 2017 requires the London Assembly to arrange for those functions The ‘fire and rescue’ functions of the GMCA may only granted to it by Schedule 2 of that Act to be discharged be exercisable by the Mayor. These relate to the on its behalf by a particular committee, proposed to be ability to vary staff and resources to enable the known as the Fire, Resilience and Emergency Planning delivery of services. Committee. Source: https://www.london.gov.uk/moderngov/documents/g62 05/Public%20reports%20pack%20Wednesday%2003- May-
53 2017%2010.00%20London%20Assembly%20Plenary. pdf?T=10) (p.28) This change is due to take place in April 2018
Body The LFC will be a ‘corporation sole’ and all proprieties, The GMCA is a ‘body corporate’ and all proprieties, corporate rights and liabilities of the LFEPA will transfer across to rights and liabilities of the previously GMFRA, transfer this role. across to the combined authority.
What are the The Mayor: The Mayor: Mayors • appoints the LFC • Is responsible for exercising all fire functions responsibiliti • can dismiss the LFC under the Fire and Rescue Service Act 2004 es and what • sets the terms of employment for the LFC • appoints and can dismiss the manager of the can be • will hold the LFC to account for the exercise of FRS (the CFO) delegated? the Commissioner’s functions. • sets his / her terms of employment. • approves the local risk plan and the LFC’s • Will hold the CFO to account corporate strategy. • approves the local risk plan, the corporate • Can guide and/or direct the LFC in his/her strategy and civil contingency arrangements. functions • Delegates roles and responsibilities to the CFO
The Mayor is not responsible for the functions of the the Mayor as the governing body is responsible for FRS Act 2004. This is the responsibility of the LFC and functions under the FRS Act 2004? If so this needs as such all decisions relating to the delivery of services adding here as it provides an important distinction to and employment of staff rest with the LFC London.
What The Mayor may delegate responsibilities to a Deputy Members and officers of the GMCA may assist the responsibiliti Mayor for Fire. Mayor in the exercising of fire and rescue functions. es can the
54 Mayor delegate? The Greater London Assembly must also receive the The Mayor may delegate the exercising of fire and local risk plan and corporate strategy. rescue functions to a ‘Fire Committee’, except for those set out above.
The Assembly must arrange for its responsibility to be discharged by a “Fire and Emergency Committee” (the Committee).
What does The Fire, Resilience and Emergency Planning The actual role of the fire committee of the GMCA fire the Committee, will provide scrutiny of: function is not set out in legislation as it has been for committee the London model. However, the arrangements 1. the LFC’s documents (including any revisions) do? highlighted in the above section cannot be delegated. i.e. the local risk plan and the corporate strategy and make recommendations to the Mayor. This could create the assumption that the committee would provide a scrutiny or advisory function to support the Mayor in decision making. 2. Review the exercise of functions of the LFC, investigate and prepare reports about any actions or decisions of the London Fire Further information is being sought via Manchester Commissioner, Deputy Mayor for Fire, an officer Fire and GMCA. of the London Fire Commissioner, functions of the London Fire Commissioner and any other matters considered of importance relating to fire and rescue services in Greater London;
The committee also has the power to submit proposals to the LFC.
Wider powers of the Assembly include the power to call the proposed LFC or Deputy Mayoral candidate to a 'confirmation hearing' following which the committee
55 call the proposed LFC or Deputy Mayoral candidate to a 'confirmation hearing' following which the committee can veto the appointments if unsatisfied.
The power to require the Deputy Mayor for Fire, The London Fire Commissioner and any officer of the London Fire Commissioner to attend the Committee to answer questions.
A ‘scheme of supervision’ for the Mayor of London is currently being drafted to enable oversight of the LFC and decision making processes.
Committee There are no statutory rules regarding the size of this The GMCA Fire Committee will comprise of no more appointments committee or the number of meetings it must hold. The than 15 members. London Assembly proposed that the Fire Committee
should comprise 7 Assembly Members and meet 6 times in a full municipal year. It will consist of 1 elected member from each of the 10 constituent councils. The members term of office is fixed by the Assembly.
Membership may be wider than Members of the Assembly (with powers to vote on matters) - Each constituent council will nominate a member. procedures for these members yet to be drawn up.
The Mayor may then appoint 5 or fewer further members onto the Fire Committee, from the elected members of one or more of each of the constituent councils.
56 Committee Current composition of the Greater London Authority is: The Fire Committee must reflect as far as reasonably composition Labour Group – 48%, GLA Conservatives Group - practicable, the balance of the political parties among 32%, Green Party Group – 8%, UK Independence the constituent councils when appointed to the Party – 8%, Liberal Democrat Group – 4%. committee. The London Assembly, at its annual meeting on 13 May 2016, unanimously agreed to dis apply the strict application of proportionality rules from the establishment of its committees and subcommittees. The Fire Committee may appoint a sub-committee(s) to discharge any of its functions, other than any of the special scrutiny functions. The number of members of any sub-committee and their terms of office are to be fixed by the Fire Committee. Persons who are not members of the Assembly may be members of a sub- committee.
Who will The Assembly may determine the Chair (and Deputy The Mayor will appoint a member of the Fire Chair the Chair (if any)), or otherwise determine that the Fire, Committee to Chair. Committee Resilience and Emergency Planning Committee is to
appoint the Chair (and Deputy Chair (if any)).
What is the As highlighted above the LFC who will be the CFO will As highlighted above the Mayor can delegate to the role of the take on all functions of LFEPA, including ‘fire and CFO. Whilst this model is now in place the Chief Fire rescue’ functions. The LFC will: delegations to the ‘committee’ and CFO are yet to be Officer of the understood. • Employ all staff Fire Service? • Own all assets This provides the LFC with the role and power to At the very least it is likely that the CFO will be decide how staff, equipment and assets will be used to delegated the control of all operations as required deliver services aligned to the local risk plan. under the Fire and Rescue Service Act 2004.
57 Annex B West Midlands Combined Authority SCHEME
This scheme is prepared and published following/pursuant to the decision of the West Midlands Combined Authority (WMCA) on 8 September 2017.
The proposals in this scheme will be subject to a further public consultation.
The scheme provides as follows:
1.1 It is proposed that the functions exercisable by the West Midlands Fire and Rescue Authority (WMFRA) across the area that the WMCA covers, should become functions of the WMCA pursuant to sections 105 A of the Local Democracy, Economic Development and Construction Act 2009.
These functions are those as set out in the following acts and where relevant identified sections:
• Local Government Act 1985 (including Part IV, schedule 10) • Local Government in Housing Act 1989 • Fire and Rescue Service Act 2004 • Fire and Rescue Order 2007 • National Framework for Fire and Rescue Services in England 2012. • Regulatory (Fire) Reform Order 2005 • Civil Contingencies Act 2014
The requirements for change are set in 1.13 to this scheme.
1.2 It is proposed that the properties, rights and liabilities of the WMFRA would become functions of the WMCA.
1.3 It is proposed that the functions relating to fire and rescue referred to in 1.1 should become WMCA functions.
1.4 It is proposed that the fire and rescue functions once they become functions of the WMCA are exercisable only by the Mayor (section 107D (1) Cities and Local Government Devolution Act 2009).
1.5 For the purposes of the exercise of the fire and rescue functions, the Mayor may do anything that the WMCA may do under section 113A of the LDEDC Act 2009 (general power of EPB or combined authority) (1).
58
1.6 It is proposed that the WMCA has the same borrowing powers in respect to its functions, relating to fire and rescue as are currently exercised by the WMFRA.
1.5 It is proposed that the WMCA retain the same core grant and precept funding arrangements in respect to its functions relating to fire and rescue, as currently exercised by the WMFRA.
1.6 Any decisions/acts made before abolition of the WMFRA should have effect as if agreed by, or, in relation to the Mayoral WMCA. For example, the setting of the precept for, under section 40 Local Government Finance Act 1988 to the constituent councils in respect of the financial year beginning before transfer in governance, should have effect as if issued by the Mayoral WMCA.
1.7 It is proposed that Members of the WMCA may assist the Mayor in the exercise of the fire and rescue functions in line with delegations, provided that the functions may not include:
• Functions relating to the budget and setting of the precept • Functions relating to statutory plans such as the Integrated Risk Management Plan (IRMP) and strategies • Functions relating to all properties, rights and liabilities • The appointment of the Chief Fire Officer and Principal officers
Mayoral Fire Advisory Committee
1.8 It is proposed that the Order should contain provision for the Mayor to arrange for a committee of the WMCA (the Mayoral Fire Advisory Committee), consisting of members appointed by the constituent councils, to advise and support the Mayor in relation to West Midlands Fire Service (WMFS).
1.9 It is proposed the committee appointed should consist of 15 Elected members from across the constituent councils, proportionally balanced, the Police and Crime Commissioner (in accordance with the Policing and Crime Act 2017) and two further co- opted members from Health and Ambulance to promote greater challenge, transparency and further collaboration.
1.10 The following additional provisions are proposed to apply to the Mayoral Fire Advisory Committee (the Committee): (section 107D(6))
59
Governance: • Appointment of elected members from each of the constituent councils will be made so that the members of the committee taken as a whole, reflect as far as reasonably practicable, the overall balance of political parties prevailing amongst the constituent councils. • The majority of members of the committee must be members of the constituent councils, all of those members have one vote. • Where a member is not from a constituent council they don’t have a vote automatically, but can be given one by resolution of the WMCA. • Two-thirds of members must be present for a meeting to be quorate. • The Chair of the Committee will be appointed by the Mayor.
Functions: • The Committee will not be a decision-making committee this responsibility will remain with the Mayor and Chief Fire Officer, as appropriate. • The Committee will advise the Mayor, support the Mayor and review decisions made by the Mayor. • Where decisions are reviewed, the Committee will submit a report to the WMCA Overview and Scrutiny Committee. • The Committee will support the Mayor in providing advice around exercising fire functions, to ensure the right level of detail and understanding is provided to inform the Mayors role as the Authority. • The Committee will represent the priorities and strategy of the Mayor and WMFS in their respective local authorities and will report on performance in relation to fire functions. • The Committee will represent the priorities and strategy of the Mayor ans WMFS within the 7 constituent councils, regionally with other Fire and Rescue Services, nationally through the National Joint Council and Local Government Association. • The Committee will seek to influence the Government on behalf of the Mayor in matters related to the delivery of fire and rescue services locally, regionally and nationally. • The Committee will enable the development of partnerships and services to the community through constituent council engagement.
A member’s allowance scheme for the committee will be payable by the WMCA.
1.11 The Chief Fire Officer (CFO) as head of paid service will be accountable to the Mayor in the operation of their duties.
60 1.12 It is proposed that the CFO maintains full accountability for the operational functions of the Fire Service. This will include:
• The management of the Fire and Rescue Service • The appointment and development of staff • The delivery of WMFS Strategy (including matters relating to exercising functions of the Fire and Rescue Services Act 2004, etc.) • The delivery of staffing structures and models which support current and future Strategy • The deployment of resources to meet risk • The transformation of services and reform of the workforce to meet WMFS and Mayoral/WMCA priorities. 1.13 Modification requirements of enactments in their application to the WMCA as a Fire and Rescue Authority.
Primary Legislation
Local Government Act 1972 1. In section 138(5) of the Local Government Act 1972 (powers of principal councils with respect to emergencies or disasters) (a), the reference to “metropolitan county fire and rescue authority” is to apply as if it included “the WMCA as a fire and rescue authority”.
Greater Manchester Act 1981 2. (1) The Local Government and Housing Act 1989(c) is modified as follows. (2) In section 67 (application of provisions about companies in which local authorities have interests), subsection (3)(k) applies as if the reference to “joint authority established by Part IV of that Act” included a reference to “the WMCA as a fire and rescue authority”. (3) In section 155 (emergency financial assistance to local authorities) subsection (4)(g) applies as if the reference to a “joint authority established by Part IV of the Local Government Act 1985” included a reference to “the WMCA as a fire and rescue authority”.
Crime and Disorder Act 1998 3.— (1) The Crime and Disorder Act 1998(d) is modified as follows. (2) In the definition of “fire and rescue authority” in section 5(5) (authorities responsible for strategies), the reference in paragraph (b) to a “metropolitan county fire and rescue authority” is to apply as if it included a reference to “the WMCA as a fire and rescue authority”. (3) In the definition of “relevant authority” in section 115(2), the reference in paragraph (j) to a “metropolitan county fire and rescue authority” is to apply as if it included a reference to “the WMCA as a fire and rescue authority”.
Local Government Act 2003
61 4. Section 23(1) of the Local Government Act 2003 (meaning of “local authority” for purposes of Part 1)(a) the reference in paragraph (k) to “a joint authority established by Part IV of that Act” is to apply as if it included a reference to “the WMCA as a fire and rescue authority.”
Fire and Rescue Services Act 2004 5.— (1) The FRS Act 2004(b) is modified as follows. (2) Section 4A (power to provide for police and crime commissioner to be fire and rescue authority) has effect as if at the end of subsection (3)(b) there were inserted— “, and (c) outside the Area.”; (3) Section 4B(1)(changes to existing fire and rescue authorities) has effect as if the reference to fire and rescue authorities in England outside Greater London did not include the WMCA.
6. In section 1 of the FRS 2004 Act(1), after subsection (4) insert— “(5) This section is also subject to an order under Part 6 of the Local Democracy, Economic Development and Construction Act 2009 which transfers the functions of a fire and rescue authority to a combined authority established under section 103 of that Act.”.
Secondary legislation
7. In paragraph (a) of the definition of “local authority” in regulation 2(1) of the Pipelines Safety Regulations 1996 (interpretation)(c) the reference to a “metropolitan county fire and rescue authority” is to apply as if it included a reference to “the WMCA as a fire and rescue authority”.
8. In article 1(2) of the Local Government (Best Value Authorities) (Power to Trade) (England) Order 2009 (application of order to best value authorities) (d) the reference in paragraph (c) to a “metropolitan county fire and rescue authority” is to apply as if it included a reference to “the WMCA as a fire and rescue authority”.
9. In regulation 3 of the Community Right to Challenge (Fire and Rescue Authorities and Rejection of Expressions of Interest) (England) Regulations 2012 (relevant authorities) (e) the reference in paragraph (a) to a “metropolitan county fire and rescue authority established under section 26 of the Local Government Act 1985” is to apply as if it included a reference to “the WMCA as a fire and rescue authority”.
10.— (1) The Local Government Pension Scheme Regulations 2013(f) are modified as follows. (2) After regulation 64(8), insert— “(8A) Paragraph (8B) applies where the exiting employer is the WMFRA and the liabilities of the fund in respect of benefits due to the WMFRA’s current and former employees (or those of any predecessor authority) have been or are to be transferred to the WMCA by virtue of this Order. (8B) Where this paragraph applies, no exit payment is due under paragraph (1) and
62 paragraph (2) does not apply.”.
11. In regulation 2(1) of the Explosives Regulations 2014 (interpretation)(g) in the definition of “local authority”, the reference in paragraph (c) to “a metropolitan county fire and rescue authority” is to apply as if it included a reference to “the WMCA as a fire and rescue authority”.
12. In regulation 2(1) of the Control of Major Accident Hazards Regulations 2015(a) in paragraph (b) of the definition of “local authority”, sub-paragraph (ii) is to apply as if there were substituted for that sub-paragraph— “(ii) the Area, the WMCA as a fire and rescue authority;”.
63
Meeting of the Council – 4th December, 2017
Report of the Cabinet
Annual Review of the Constitution
Purpose of Report
1. To consider the annual review of the Constitution.
Recommendations
2. That the Council approve:
• The re-titled post of Cabinet Member for Regeneration and Enterprise.
• The revised Officer Employment Procedure Rules as set out in Appendix 1.
• The revised Access to Information Procedure Rules, as set out in Appendix 2, including the updated definition of a ‘Key Decision’.
• The consistent application of the requirement contained in Article 4.02, so that only the full Council will approve the making, amending, revoking, re-enacting or adopting of byelaws.
• The amendment of Article 6.05 to clarify that Members of Scrutiny Committees may participate in the scrutiny of specific decisions or items of business provided that they have not been directly affected by the decision(s) being scrutinised and they are not otherwise prevented from participating by virtue of having an interest in the matter under the Members’ Code of Conduct.
• The amendment of Article 11.01 to reflect the general power of competence set out in Section 1 of the Localism Act 2011.
• The introduction of a new Article 11.06 relating to the powers to establish companies under the Local Government Act 2003 and the Localism Act 2011.
• The specific amendments to Part 3 of the Constitution (Scheme of Delegation) as set out in paragraphs 23 to 30 below.
64 Background
3. The Council introduced its written Constitution in May 2002. Section 37 of the Local Government Act 2000 requires the Council to keep the Constitution up to date. This is reflected in Article 15, which requires the Monitoring Officer to monitor and review the operation of the Constitution in order to ensure that the aims and principles are given full effect.
4. Full Council is responsible for approving changes to the Constitution after consultation with the Cabinet. An exception to this is that the Leader, in consultation with the main opposition Group Leader, may approve amendments to the Scheme of Delegation. From time to time, amendments are also made under the Monitoring Officer’s delegated powers to update legal provisions, to reflect organisational changes and to update other governance issues.
5. The Constitution is an important vehicle by which the Council promotes its democratic governance arrangements. All previously approved amendments to the Constitution have been fully implemented. The Council is asked to consider the recommendations of the Cabinet as set out in this report.
Cabinet Member for Regeneration and Enterprise
6. Following the organisational restructure in 2015, it has been the practice for the titles of Cabinet Members to correspond directly to the title of the appropriate Chief Officer. When the Chief Officer for Regeneration and Enterprise was appointed, the Cabinet Member’s title was not updated and still remains as the Cabinet Member for Planning and Economic Development. It is now proposed that the designation of the Cabinet Member’s post be amended accordingly.
Council Procedure Rule 11 – Questions by Members at Full Council
7. Following consultation with Group Leaders, a proposal was made to revise the arrangements for Members asking questions under Council Procedure Rule 11 at full Council. A proposal was submitted to the Overview and Scrutiny Management Board on 6th September, 2017. The report can be viewed on the Council’s website.
8. In summary, the proposal was to remove the need for a separately printed ‘White Book’ and provide for Members to ask questions on any matters for which the Council has powers and duties or which affect the Borough. A requirement would be introduced for advance notice of questions to be given at least 5 working days before the Council meeting (unless urgency applied). The main reason for this was to ensure that full and proper responses could be provided at the Council meeting. Members would still be able to comment at the Council meeting on any specific subjects raised in the questions.
9. Once the initial question was answered, the Member who asked the original question could then raise a ‘supplementary question’ provided that this related to the original question or the reply.
65 10. The Overview and Scrutiny Management Board expressed a range of concerns with regard to the proposal and recommended that the existing ‘White Book’ arrangements be retained for full Council meetings. The ‘White Book’ is already made available electronically for Members who do not require a paper copy. The proposal for Members to ask supplementary questions was supported in principle, however, it was recommended that this could be incorporated into the existing Council Procedure Rule 11.
11. The views of the Overview and Scrutiny Management Board have been reported to the Group Leaders. Further research has also been undertaken on the approaches taken by other local authorities in the West Midlands. A report on revised proposals will be submitted to the Overview and Scrutiny Management Board in due course.
Officer Employment Procedure Rules
12. Officer Employment Procedure Rules deal with the recruitment, appointment, designation and discipline of various senior officers. The Procedure Rules are required to reflect the statutory requirements of the Local Authorities (Standing Orders) (England) Regulations 2001, the Local Authorities (Standing Orders) (England) (Amendment) Regulations, 2015 and the Localism Act 2011.
13. The Officer Employment Procedure Rules set out in Appendix 1 have been updated to fully reflect the Regulations. This includes the statutory protection afforded to the Head of Paid Service, the Monitoring Officer and the Section 151 Officer in respect of disciplinary action. No disciplinary action may be taken against these Officers except in accordance with a recommendation made in a report of a Panel containing at least two independent persons. Where dismissal is recommended, that decision may only be taken by full Council.
Following a query raised at the Cabinet meeting on 26th October, 2017, it has now been clarified that no changes are being proposed to the existing wording of paragraph 1.2 (seeking support for appointment). This approach recognises circumstances where a Member may give a reference in a specific capacity, such as a former employer.
Access to Information Procedure Rules
14. Access to Information Procedure Rules mirror the statutory requirements set out in the Local Government Act 1972 (as amended) and the Local Government Act 2000 together with associated Regulations and Statutory Guidance. In particular, the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012 set out detailed requirements in relation to public access to meetings, associated information and documents.
66 15. The Access to Information Procedure Rules, as set out in Appendix 2, have been updated to comply with all the necessary statutory requirements. Whilst it is no longer legally required, the Forward Planning process is desirable to comply with the requirement to give 28 clear days notice of the taking of Key Decisions and any executive decisions that are to be taken in private session. The Forward Plan of Key Decisions is a useful business planning tool and assists the Overview and Scrutiny Management Board to identify forthcoming items to be considered by the Cabinet. The Forward Plan of Key Decisions is available on the Council’s website covering a rolling period of four months.
16. The Regulations define a ‘Key Decision’ as an executive decision, which is likely:
(a) To result in the authority incurring expenditure which is, or the making of savings which are, significant having regard to the local authority’s budget for the service or function to which the decision relates.
(b) To be significant in terms of its effects on communities living or working in an area comprising two or more wards in the area of the local authority.
17. In relation to paragraph (a) above, Dudley MBC has adopted a figure of £250,000 as a ‘significant’ level of expenditure or savings. It is recommended that this threshold be retained.
18. Paragraph (b) refers to ‘two or more wards’ whereas Dudley MBC has previously adopted the definition of ‘one or more ward’. The up to date statutory definition is reflected in paragraph 13 of the amended Procedure Rules. Article 13 of the Constitution also needs to be amended to be consistent with the definition contained in the Regulations.
Article 4.02 - Byelaws
19. Article 4.02 of the Constitution provides that only the full Council will exercise a number of specified functions. One of the listed functions is the making, amending, revoking, re-enacting or adopting of byelaws. Functions relating to byelaws are also listed under the executive functions of several Cabinet Members. For the sake of consistency, it is recommended that the Council affirm the requirement that all such matters relating to byelaws will require full Council approval.
Article 6.05 – Overview and Scrutiny - Conflict of Interests
20. Article 6.05 currently makes only a limited reference to the involvement of Members in scrutinising decisions and proposals in relation to Community Forums of which they are a member. It is recommended that the scope of this Article should be widened to clarify the situation for the participation of Members of Scrutiny Committees in all areas of scrutiny activity as follows:
6.05 Members of Scrutiny Committees may participate in the scrutiny of specific decisions or items of business provided that they have not been directly affected by the decision(s) being scrutinised and they are not otherwise prevented from participating by virtue of having an interest in the matter under the Members’ Code of Conduct.
67 Article 11.01 – Joint Arrangements
21. Article 11.01 currently refers to ‘arrangements to promote well-being’. This provision needs to be updated to reflect the general power of competence set out in Section 1 of the Localism Act 2011 as follows:
11.01 General Power of Competence
Pursuant to its general power of competence, the Council or the Cabinet may:
(a) enter into arrangements or agreements with any person or body;
(b) co-operate with, or facilitate or co-ordinate the activities of, any person or body; and
(c) exercise on behalf of that person or body any functions of that person or body.
Article 11.06 - Powers to Establish Companies
22. Under the provisions of the Local Government Act 2003 and the Localism Act 2011, Councils have powers to set up companies to trade with a view to making profit in areas relating to any of their existing functions. These powers need to be formally included in the Constitution under a new Article 11.06. Individual reports would be submitted to the Cabinet on any specific proposals for consideration by the Council.
Scheme of Delegation
Appointment of Independent Person(s) – Member Complaints and Standards Matters
23. Under the Localism Act 2011 the Council is required to appoint an Independent Person (or Persons) to assist the Monitoring Officer in dealing with complaints and related standards matters. The appointment of any Independent Person(s) is a decision required by the full Council. On 18th May, 2017, the Council appointed the Bishop of Dudley (Rt Revd Graham Usher) as an Independent Person for a period of four years ending with the annual meeting of the Council in May, 2021.
24. Oversight of standards issues, including the Members’ Code of Conduct, is a function of the Audit and Standards Committee. In practice, the necessary administrative process to invite applications and make a recommendation to the Council on the appointment of Independent Person(s) is undertaken by the Monitoring Officer. It is proposed that the function to make a recommendation to the Council on the appointment of Independent Person(s), as required under the Localism Act 2011 and any relevant Regulations, be included in the Constitution as an ongoing delegation to the Monitoring Officer.
68 Community Council Strategy and Associated Functions
25. On 5th December, 2016, the Council approved the adoption of a specific Cabinet Portfolio relating to the Community Council Strategy and associated functions. This role was allocated to the Deputy Leader in 2016/17. At the Annual Council meeting on 18th May, 2017, the report of the Leader did not include the appointment of a separate Cabinet Portfolio for Community Council. In practice, this role was being undertaken by the previous Cabinet Member for Housing. Following the recent change in the Cabinet membership it is now proposed that responsibility for strategic direction in developing the Community Council Strategy and any associated functions be re-allocated to the Deputy Leader.
Signing of Decision Sheets in the Absence of a Cabinet Member
26. On occasions, questions have arisen concerning the signing of urgent decision sheets in the absence (or inability to act) of a Cabinet Member. The usual convention in these circumstances is for the Decision Sheet to be referred to the Leader (or the Deputy Leader if the Leader is also absent).
27. It is recommended that the portfolio of the Leader of the Council be amended to formalise this arrangement.
Fees and Charges
28. To ensure corporate consistency, clarification is required concerning the decision making route for fees and charges. In particular the distinction between amendments to existing fees and charges and the introduction of any new fees or charges. It is proposed that the Council adopt a consistent approach to dealing with fees and charges, namely:
(i) That any amendments to existing fees and charges are dealt with by the appropriate Strategic Director/Chief Officer, in consultation with the relevant Cabinet Member.
(ii) That any new fees or charges be dealt with by way of a decision sheet signed by the relevant Cabinet Member(s), in consultation with the appropriate Strategic Director/Chief Officer.
29. This process will apply to executive functions only and will not apply to fees and charges that require specific Committee approval under the Constitution (eg: Licensing fees).
Lead Local Flood Authority – Executive Functions 30. The portfolio for the Cabinet Member for Environmental Services needs to be updated to reflect statutory powers and functions under the Flood Risk Regulations 2009 and the Flood and Water Management Act 2010 as Lead Local Flood Authority (LLFA) in relation to local flood risk management. These powers will be included in the ongoing delegation to the Strategic Director Place.
69 Ongoing Review of the Constitution
31. In accordance with Minute No. 12 of the Annual Council meeting held on 18th May, 2017, the Monitoring Officer has delegated powers to update the Constitution to reflect any ongoing Council restructuring activity, changes in legislative requirements, statutory provisions or associated regulations or guidance.
32. Maintaining and updating the Constitution is an ongoing duty of the Monitoring Officer. Work will continue during this municipal year and beyond to identify any required updates, consolidate various provisions, remove duplication or any content that is no longer relevant. A report on the Constitution is submitted to the Annual Council Meeting in May each year, where any amendments made to the document are confirmed.
Finance
33. There are no financial implications arising from this report. Any costs arising from compliance with the Constitution are met from existing budgets.
Law
34. Section 37 of the Local Government Act 2000 requires the Council to keep its Constitution up to date.
Equality Impact
35. This report complies with the Council’s policies on equality and diversity and there are no particular implications for children and young people.
Human Resources/Transformation
36. The ongoing review of the Constitution is undertaken by the Monitoring Officer, supported by the Democratic Services Team, within existing resources. Further work on the document will focus on simplifying and shortening aspects of the Constitution to ensure that the document is fit for purpose in the future.
……………………….... Leader of the Council
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Appendix 1 Officer Employment Procedure Rules
1. Recruitment and appointment
1.1 Declarations
(a) The Council will draw up a statement requiring any candidate for appointment as an officer to state in writing whether they are the parent, grandparent, partner, child, stepchild, adopted child, grandchild, brother, sister, uncle, aunt, nephew or niece of an existing Councillor or officer of the Council; or the partner of such persons.
(b) No candidate so related to a Councillor or an officer will be appointed without the authority of the Monitoring Officer or an officer nominated by him/her.
1.2 Seeking support for appointment
(a) The Council will disqualify any applicant who directly or indirectly seeks the support of any Councillor for any appointment with the Council. The content of this paragraph will be included in any recruitment information.
(b) No Councillor will seek to support any person for any appointment with the Council.
2. Recruitment of Chief Executive, Strategic Directors, Chief Officers and Designated Statutory Officers
2.1 Where the Council proposes to appoint the Chief Executive, a Strategic Director, a Chief Officer or any posts which are proposed to be designated as the Monitoring Officer or the Section 151 Officer, and it is not proposed that the appointment will be made exclusively from amongst their existing officers, the Council will:
(a) draw up a statement specifying:
(i) the duties of the officer concerned; and
(ii) any qualifications or qualities to be sought in the person to be appointed;
(b) make arrangements for the post to be advertised in such a way as is likely to bring it to the attention of persons who are qualified to apply for it; and
(c) make arrangements for a copy of the statement mentioned above to be sent to any person on request.
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3. Appointment of Chief Executive (Head of Paid Service)
3.1 The full Council will appoint the Chief Executive (Head of Paid Service) following a recommendation by the Appointments Committee. The Appointments Committee must include at least one Cabinet Member.
3.2 The Council may only make or approve the appointment of the Chief Executive where no well-founded objection has been made by any Member of the Cabinet in accordance with the Local Authorities (Standing Orders) (England) Regulations 2001.
4. Appointment of Strategic Directors, Chief Officers and Designated Statutory Officers (Monitoring Officer and Section 151 Officer)
4.1 The Appointments Committee will appoint Strategic Directors and Chief Officers, including any posts that are to be given the statutory designation of Monitoring Officer or Section 151 Officer. The designation of statutory officers is subject to the approval of full Council. The Appointments Committee must include at least one Cabinet Member.
4.2 An offer of employment as a Strategic Director, Chief Officer or Designated Statutory Officer shall only be made where no well-founded objection from any Member of the Cabinet has been received in accordance with the Local Authorities (Standing Orders) (England) Regulations 2001.
4.3 Any new appointments or severance packages of £100,000 or above (excluding pension) will be the subject of a recommendation from the Appointments Committee to full Council.
5. Other Appointments
(a) Officers below Chief Officer - Appointments of officers below Chief Officer are the responsibility of the Chief Executive, Strategic Directors, Chief Officers or their nominee(s), and may not be made by Councillors.
(b) Assistants to political groups - Appointment of an assistant to a political group shall be made in accordance with the wishes of that political group provided that such is in compliance with any relevant statutory requirements.
(c) Appointment of Director of Public Health - Where the Council proposes to appoint a Director of Public Health, the Council will follow any necessary statutory requirements that apply to that post and comply with any specific guidance issued by the Secretary of State.
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6. Disciplinary action – statutory protected officers
6.1 Suspension - The Head of Paid Service, the Monitoring Officer and the Section 151 Officer may be suspended by the Appointments Committee whilst an investigation takes place into alleged misconduct. That suspension will be on full pay and last no longer than two months. The suspension periods may only be extended beyond two months following a decision by the Appointments Committee.
6.2 Independent Panel - No disciplinary action may be taken in respect of any of the officers referred to in rule 6.1 above except in accordance with a recommendation in a report made by a Panel established under the provisions of the Local Authorities (Standing Orders) (England) (Amendment) Regulations, 2015 containing at least two independent persons appointed under Section 28(7) of the Localism Act 2011.
6.3 Decision making – Any proposed disciplinary action of the said officers that is a lesser sanction than dismissal shall be determined by the Appointments Committee. Where a recommendation is made that dismissal of those officers is the appropriate action, that final decision shall only be undertaken by full Council.
7. Involvement of Councillors
Councillors will not be involved in the dismissal of any officer below Chief Officer level except where such involvement is necessary for any investigation or inquiry into alleged misconduct. The Council’s disciplinary, capability and related procedures, as adopted from time to time may, however, allow a right of appeal to members in respect of dismissals.
8. Dismissal of the Director of Public Health – requirement for consultation with the Secretary of State for Health
The officer undertaking the statutory role of Director of Public Health may be suspended by the Appointments Committee whilst an investigation takes place into alleged misconduct. However, the Director of Public Health may not be dismissed, except following consultation with the Secretary of State.
73 Appendix 2
Access to Information Procedure Rules
1. Scope
These rules apply to all meetings of the Council, the Overview and Scrutiny Management Board, Scrutiny Committees, the Audit and Standards Committee, regulatory committees and meetings of the Cabinet (together called meetings).
2. Additional R ights to Information
These rules do not affect any more specific rights to information contained elsewhere in this Constitution or the law.
3. Rights to Attend Meetings
Members of the public may attend all meetings subject only to the exceptions in these rules.
4. Notice of Meeting
The Council will give at least five clear working days notice of any meetings by publishing the agenda and any reports to be considered at the meeting concerned. The agenda and public reports will be published on the Council’s website.
5. Access to Agenda and Public Reports Before the Meeting
The Council will make the agenda and public reports available for inspection at the Council House during normal office hours and on the website at least five clear working days before the meeting. If an item is added to the agenda later, the revised agenda will be made available from the time the item was added to the agenda.
6. Supply of Copies
The Council will supply copies of:
(a) the agenda and reports which are open to public inspection;
(b) any further statements or particulars necessary to indicate the nature of the items in the agenda; and
(c) if the Monitoring Officer thinks fit, copies of any other documents supplied to Councillors in connection with an item.
to any person on payment of a charge for postage and any other costs.
74 7. Access to Documents After the Meeting
The Council will make the following available for a minimum of six years after a meeting:
(a) the agenda for the meeting;
(b) all reports relating to items when the meeting was open to the public;
(c) the minutes of the meeting excluding any part of the minutes which might disclose exempt or confidential information.
8. Background Papers
8.1 List of Background Papers
The Monitoring Officer will ensure that every report sets out a list of those documents (called background papers) relating to the subject matter of the report which in his/her opinion:
(a) disclose any facts or matters on which the report or an important part of the report is based; and
(b) which have been relied on to a material extent in preparing the report
but does not include published works or those which disclose exempt or confidential information and in respect of Cabinet reports, the advice of a political advisor.
8.2 Public Inspection of Background Papers
The Council will make background documents available for public inspection for a minimum of four years after the date of the meeting.
9. Exclusion of Access by the Public to Meetings
9.1 Confidential Information - Requirement to Exclude the Public
The public must be excluded from meetings whenever it is likely in view of the nature of the business to be transacted or the nature of the proceedings that confidential information would be disclosed.
75 9.2 Exempt Information - Discretion to Exclude the Public
The public may be excluded from meetings whenever it is likely in view of the nature of the business to be transacted, or the nature of the proceedings, that exempt information would be disclosed.
Where the meeting will determine any person's civil rights or obligations, or adversely affect their possessions, Article 6 of the Human Rights Act 1998 establishes a presumption that the meeting will be held in public unless a private hearing is necessary for one of the reasons specified in Article 6.
9.3 Meaning of Confidential Information
Confidential information means information given to the Council by a Government Department on terms which forbid its public disclosure or information which cannot be publicly disclosed by Court Order.
9.4 Meaning of Exempt Information
Exempt information means information falling within the following categories (subject to any conditions):
(NB: Paragraph numbers of the categories mirror those contained in Schedule 12A to the Local Government Act 1972) Note – Information is only exempt information if and so long as, in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information.
Category Qualifications/Definitions
1. Information relating to any individual.
2. Information which is likely to reveal the identity of an individual.
3. Information relating to the financial or Information is not exempt information if it is business affairs of any particular person required to be registered under – (including the authority holding that information). (a) the Companies Act 1985; (b) the Friendly Societies Act 1974; (c) the Friendly Societies Act 1992; (d) the Industrial and Provident Societies Acts 1965 to 1978; (e) the Building Societies Act 1986; or (f) the Charities Act 1993.
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‘financial or business affairs’ includes contemplated, as well as past or current activities.
‘registered’ in relation to information required to be registered under the Building Societies Act 1986 means recorded in the public file of any building society (within the meaning of that Act)
4. Information relating to any ‘employee’ means a person employed consultations or negotiations, or under a contract of service contemplated consultations or negotiations, in connection with any labour ‘labour relations matter’ means – relations matter arising between the authority or a Minister of the Crown and (a) any of the matters specified in employees of, or office holders under, the paragraphs (a) to (g) of section authority. 218(1) of the Trade Union and Labour Relations (Consolidation) Act 1992 (matters which may be the subject of a trade dispute, within the meaning of that Act); or
(b) any dispute about a matter falling within paragraph (a) above;
and for the purposes of this definition the enactments mentioned in paragraph (a) above, with the necessary modifications, shall apply in relation to office-holders under the authority as they apply in relation to employees of the authority;
‘office-holder’, in relation to the authority, means the holder of any paid office appointments to which are or may be made or confirmed by the authority or by any joint board on which the authority is represented or by any person who holds any such office or is an employee of the authority.
5. Information in respect of which a claim to legal professional privilege could be maintained in legal proceedings.
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6. Information which reveals that the authority proposes -
(a) to give under any enactment a notice under or by virtue of which requirements are imposed on a person; or
(b) to make an order or direction under any enactment.
7. Information relating to any action taken or to be taken in connection with the prevention, investigation or prosecution of crime.
Information falling within any of the above categories is not exempt if it relates to proposed development for which the local planning authority can grant itself planning permission under Regulation 3 of the Town and Country Planning General Regulations 1992.
10. Exclusion of Access by the Public to Reports
10.1 If the Monitoring Officer thinks fit, the Council may exclude access by the public to reports which in his or her opinion relate to items during which the meeting is likely not to be open to the public. Such reports will be marked "Not for Publication" together with the category of information likely to be disclosed.
10.2 The Council will give 28 clear days notice of the intention to take an executive decision in private session. If the 28 clear days notice cannot be complied with (eg: in cases of urgency), then an executive decision may only be taken in private session with the approval of the Chair of the appropriate Scrutiny Committee (or the Mayor/Deputy Mayor in his/her absence). Notice will be given as to why the matter is urgent and cannot reasonably be delayed.
11. Definition of a Key Decision
A Key Decision means an executive decision which is likely -
• to result in the Council incurring expenditure, or the making of savings, of £250,000 or more (revenue or capital); or
• to be significant in terms of its effects on communities living or working in two or more wards in the Borough.
12. The Forward Plan
12.1 Period of Forward Plan
The Forward Plan will be prepared to comply with the ongoing requirement to give at least 28 clear days notice of the making of Key Decisions.
78 12.2 Contents of Forward Plan
The Forward Plan will contain matters which will be the subject of a Key Decision to be taken by the Cabinet, individual Cabinet Members, Officers, or under joint arrangements in the course of the discharge of an executive function. It will also include any executive decisions that are to be considered in private session.
The Forward Plan will describe the following particulars in so far as the information is available or might reasonably be obtained:
(a) the matter in respect of which a decision is to be made;
(b) where the decision taker is an individual, his/her name and title, if any, and where the decision taker is a body, its name and details of membership;
(c) the date on which, or the period within which, the decision will be taken;
(d) the identity of the principal groups whom the decision taker proposes to consult before taking the decision;
(e) the means by which any such consultation is proposed to be undertaken;
(f) the steps any person might take who wishes to make representations to the Cabinet or decision taker about the matter in respect of which the decision is to be made, and the date by which those steps must be taken; and
(g) a list of the documents submitted to the decision taker for consideration in relation to the matter.
13. General Exception – Key Decisions Not Included in the Forward Plan
If a matter which is likely to be a Key Decision has not been included in the Forward Plan, then subject to Rule 14 (special urgency), the decision may still be taken if:
(a) the decision must be taken by such a date that it is impracticable to defer the decision;
(b) the Monitoring Officer has informed the Chair of the relevant Scrutiny Committee, or if there is no such person, each member of that Committee in writing, by notice, of the matter on which the decision is to be made;
(c) the Monitoring Officer has given notice to the public at the offices of the Council and on the Council’s Website; and
(d) at least 5 clear working days have elapsed following the day on which the Monitoring Officer gave notice as referred to above.
14. Special Urgency – Key Decisions Not Included in the Forward Plan
14.1 Where it is impracticable to comply with Rule 13, a Key Decision can only be taken if the decision maker obtains the agreement of the Chair of the relevant Scrutiny Committee that the taking of the Key Decision cannot be reasonably deferred. If there is no Chair of a relevant Scrutiny Committee or if the Chair of
79 the relevant Scrutiny Committee is unable to act, then the agreement of the Mayor or in his/her absence the Deputy Mayor will suffice.
14.2 As soon as reasonably practicable after the decision taker has obtained agreement that the decision is urgent and cannot reasonably be deferred, the decision taker must give notice at the offices of the Council and on the Council’s website setting out the reasons why the Key Decision is urgent and cannot reasonably be deferred.
15. Report to Full Council – Non-Compliance with these Rules
15.1 When the Overview and Scrutiny Management Board can require a report
If the Overview and Scrutiny Management Board thinks that any decision has been taken which was not in accordance with these Procedure Rules the Board may require the Cabinet to submit a report to the Council within such reasonable time as the Board specifies. The Monitoring Officer may also require a report to be submitted to the Council on behalf of the Board in appropriate circumstances.
15.2 Cabinet's Report to Council
The Cabinet will prepare a report for submission to the next available meeting of the Council. The report to the Council will set out particulars of the decision, the individual or body making the decision and the reasons for compliance or non- compliance with these Procedure Rules.
15.3 Reports to the Council on Special Urgency Decisions
Details of all executive decisions taken under the special urgency provisions will be reported to the Council. This report will include the particulars and a summary of the matters in respect of which those decisions were taken.
16. Decisions by Individual Members of the Cabinet and Key Decisions Taken by Officers
16.1 Decision Sheets
Where a decision is to be made by an individual Cabinet Member, or a Key Decision is to be made by an Officer, a draft decision sheet outlining the proposals will be published at least five clear working days before the date on which the decision is to be taken. The draft Decision Sheet will be published on the Internet subject to the restrictions on the publication of any confidential or exempt information.
As soon as reasonably practicable after an executive decision has been taken by an individual member of the Cabinet or a Key Decision has been taken by an officer, the final Decision Sheet will be published on the Internet. This will include a statement of the reasons for the decision and any alternative options considered and rejected. The decision shall then be subject to the Call-In process as set out in the Scrutiny Committee Procedure Rules.
80 17. Scrutiny Committee’s Access to Documents
17.1 Rights to Copies
A Scrutiny Committee will be entitled to copies of any document which is in the possession or control of the Cabinet and which contains material relating to:
(a) any business transacted at a public or private meeting of the Cabinet, or
(b) any decision taken by an individual member of the Cabinet.
17.2 Limit on Rights
A Scrutiny Committee will not be entitled to:
(a) any document that is in draft form;
(b) any part of a document that contains exempt or confidential information, unless that information is relevant to an action or decision they are reviewing or scrutinising or intend to scrutinise; or
(c) the advice of a political adviser.
Where a decision is made that a member of a Scrutiny Committee is not entitled access to a document, or part of it, a written statement will be given to the member setting out the reasons for such a decision.
The rights for Scrutiny Committees conferred by this Rule are in addition to any other rights that any member of the Council may have to access information or to inspect documents.
18. Additional Rights of Access For Members
18.1 Material relating to previous business
All members will be entitled to inspect any document which is in the possession or under the control of the Cabinet and contains material relating to any business previously transacted unless either (a) or (b) below applies:-
(a) it contains confidential or exempt information falling within the categories of exempt information; or
(b) it contains the advice of a political adviser.
18.2 Material Relating to Decisions
All members of the Council will be entitled to inspect any document (except those available only in draft form) in the possession or under the control of the Cabinet which relates to any Key Decision unless paragraph (a) or (b) above applies.
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Meeting of the Council – 4th December, 2017
Report of the Cabinet
Medium Term Financial Strategy
Purpose
1. To consider the recommendations of the Cabinet concerning the latest General Fund revenue position for 2017/18 and provisional Medium Term Financial Strategy (MTFS) to 2020/21.
Recommendations
2. That the following recommendations of the Cabinet be approved and adopted:-
(a) That in respect of the Council Tax Reduction (CTR) scheme, after considering the outcomes of the consultation, member scrutiny, the equality impact assessment and the Council’s financial position:
• the minimum payment of Council tax be increased from 22% to 23%; • a new vulnerable category of “care leaver” be created and where a CTR claim is made by a care leaver and their CTR award is calculated to be 100%, they would receive 100% and not have to pay Council Tax.
(b) That the proposal to document the CTR scheme in such a manner that any personal allowances, premiums, disregards and non-dependent deductions are automatically linked to equivalent annually up-rated values published by central government in either Housing Benefit Legislation or the prescribed Council Tax Reduction Scheme for pensioners (including any other miscellaneous amendments to the aforementioned legislation that are relevant to our local scheme) be approved, thus allowing any approved scheme locally to be automatically carried forward to future years, without the need for annual public consultation and re-approval, until such time that further scheme changes are considered.
(c) That the Chief Officer Finance and Legal Services, in consultation with the Cabinet Member for Finance and Legal Services, be authorised to:
• pay over to the Combined Authority (CA) funding received from Department for Communities and Local Government (DCLG) in respect of growth in the central share of business rates for 2016/17, as set out in paragraph 10 of the report; • agree final details and make payment to the CA of Dudley’s contribution from business rates for 2017/18, subject to all authorities agreeing to contribute on the same basis, as set out in paragraph 11 of the report.
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(d) That the delegation be endorsed for the approval of voluntary and compulsory redundancies to the Cabinet Member for Corporate Transformation and Performance and the Chief Officer for Corporate Transformation and Performance up to the maximum provided for in the budget forecasts for direct redundancy costs and the capitalised cost of pension strain in respect of redundancies required to achieve the proposed savings set out in this report.
(e) That progress with the review of procurement, as set out in paragraph 21 of the report, be noted.
Background
3. On 26th October, 2017 the Cabinet considered a report on the Medium Term Financial Strategy and various related issues. The full report to the Cabinet Meeting is available on the Council’s Internet site via the Committee Management Information System. The Cabinet made decisions in relation to the following pursuant to its delegated powers:
• Noted the actions of the External Auditors.
• Noted forecast variances to the budget in 2017/18.
• Noted the various issues and risks which will need to be taken into account in finalising budget proposals for 2018/19, and the Medium Term Financial Strategy.
• Noted the process to identify services to be funded from the Public Health Grant (PHG).
• Approved the preliminary financial strategy as a basis for scrutiny and consultation.
4. The savings proposals set out in the Cabinet report of 26th October, 2017 are the subject of public consultation (including Scrutiny Committees) for consideration by the Cabinet in February, 2018 prior to final decisions by Full Council. This report deals only with the issues where the Cabinet has made specific recommendations to the Council for consideration at this time.
5. The Council approved the General Fund budget for 2017/18 and the MTFS to 2020/21 on 6th March 2017.
Council Tax Reduction (CTR) Scheme
6. Proposals to amend the CTR scheme were initially considered by Cabinet on 19th July and subsequently by the Corporate Scrutiny Committee on 26th September 2017. After considering the outcomes of consultation, member scrutiny, the equality impact assessment and the Council’s financial position, it is proposed that:
• the minimum payment of Council Tax be increased from 22% to 23%; • a new vulnerable category of “care leaver” be created and where a CTR claim is made by a care leaver and their CTR award is calculated to be 100%, they would receive 100% and not have to pay Council Tax.
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A summary of options and consultation responses is set out at Appendix A. Forecast figures for Council Tax income take account of the proposals.
7. It is also proposed to document the CTR scheme in such a manner that any personal allowances, premiums, disregards and non-dependent deductions are automatically linked to equivalent annually up-rated values published by central government in either Housing Benefit Legislation or the prescribed Council Tax Reduction Scheme for pensioners (including any other miscellaneous amendments to the aforementioned legislation that are relevant to our local scheme). The Council may wish to consider further scheme changes next year or in subsequent years. By documenting the scheme in the proposed way, it will not need further public consultation or re-approval until such time that further scheme changes are considered.
8. The Government has consulted on technical issues relating to the 2018/19 settlement. These include proposed Council Tax referendum principles for 2018/19 the same as those set in 2017/18 – i.e. a core limit of less than 2% plus an Adult Social Care precept increase of up to 3% (provided that precept increases do not exceed 6% between 2017/18 and 2019/20). It should be noted that these are the proposed general principles and are subject to the monitoring of individual authorities and their use of the Adult Social Care (ASC) precept in the current year. As part of this monitoring regime, Dudley has been requested to provide additional information to the Department for Communities and Local Government (DCLG) to support our use of the precept. We have provided further detail on 2017/18 efficiency savings, cost and performance comparisons with other councils and details about our use of reserves to protect Adult Social Care, demonstrating the need to raise the precept in order to reduce that reliance on reserves. We are still awaiting the final outcome of this monitoring.
Combined Authority
9. The West Midlands Combined Authority (CA) receives three elements of funding via the constituent authorities as follows:
• The Transport Levy (formerly set by the Integrated Transport Authority) to fund its transport functions, allocated by statute on a population basis. • Real terms growth in the central share of business rates from 2016/17 onwards to fund its regeneration activities, under the terms of the Devolution Deal. • A further contribution to fund its non-transport functions. A contribution was made in 2016/17 to cover two years (2016/17 and 2017/18) and was by agreement on an equal shares basis between the authorities. As has previously been reported to Cabinet and Council the default position, in the absence of an agreement, is that these contributions would be shared on a population basis.
10. The growth in the Business Rates central share for 2016/17 (received by the Government under the retention arrangements then in operation) will, subject to agreement with DCLG, be paid to individual authorities. It is proposed that the Chief Officer Finance and Legal Services be authorised in consultation with the Cabinet Member for Finance and Legal Services to pay such funding received over to the CA.
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11. For 2017/18 onwards, the 100% retention pilot gives effect to the Devolution Deal by allowing authorities to retain all business rate growth, including that in the former central share. When setting the budget for 2017/18, the £2.4m windfall gain for Dudley arising from the pilot (of real growth in the central share since 2013/14) was earmarked pending clarification of how it would be shared between the individual councils and the Combined Authority, in particular the calculation of real growth from 2016/17 onwards. This measurement has proved to be particularly difficult as a result of the impact of the 2017 revaluation and uncertainty about the impact of appeals. It is proposed that, as an interim solution for 2017/18, the seven constituent authorities make a total contribution from business rate income of £3m (as estimated in the Devolution Deal), shared on the basis of Rateable Values. This would mean a Dudley contribution of around £0.3m. It is proposed that the Chief Officer Finance and Legal Services be authorised in consultation with the Cabinet Member for Finance and Legal Services to agree final details and make payment to the CA, subject to all authorities agreeing to contribute on the same basis.
12. On the basis of this proposal we are able to release £2.1m in the current year. Consistent assumptions have been made concerning the future years of the MTFS. Work will continue to determine the basis for sharing business rates growth with the CA for 2018/19 onwards. We are also awaiting further details from the CA in terms of its proposals for the Transport Levy (current forecast based on previous strategy) and funding requirement for its non-transport budget. Further details will be reported to Cabinet in February.
Human Resource Implications
13. Redundancy costs required to achieve the proposed savings, including those relating to pension strain, are dependent on the proportion of savings to be met from staffing reductions and the age and length of service of the individuals being made redundant, and therefore cannot be precisely calculated at this stage. In addition to provision of £1.5m in the current year a further £0.5m has been provided for in 2018/19. These are estimates based on previous trends and the proportion of savings likely to come from staff reductions.
14. In line with the Cabinet decision, it is proposed that the delegation for approval of voluntary and compulsory redundancies to the Cabinet Member for Corporate Transformation and Performance and the Chief Officer for Corporate Transformation and Performance be agreed up to the maximum provided for in the budget forecasts for direct redundancy costs and the capitalised cost of pension strain in respect of redundancies.
Base Budget Forecasts
15. The Base Budget reflects the impact on spending of forecast inflation and other anticipated changes, before directorate spending pressures or savings proposals are taken into account. Details are as follows.
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2018/19 2019/20 2020/21 £m £m £m 2017/18 base 215.9 215.9 215.9 Pay (note 1) 1.6 3.8 6.0 Transport Levy -0.2 -0.2 -0.2 Income uplift (note 2) -1.0 -2.1 -3.5 MRP Policy (note 3) 11.4 13.0 13.0 Pensions (note 4) 0.7 1.1 3.4 Combined Authority 0.3 0.3 0.3 Treasury (note 5) -1.3 -1.6 -3.2 Fallout of one-off 2017/18 pressures and savings etc. -1.2 -1.2 -1.2 Other adjustments (note 6) 0.6 0.3 0.3 Base Budget Forecast 226.8 229.3 230.8
Notes:
(1) Recent pay awards for local government have been settled at low levels in line with the public sector pay cap, with larger increases on the lower pay points to comply with the National Living Wage. Our current estimates allow for a 1.4% average increase in 2018/19, 1.7% in 2019/20 and 1.8% in 2020/21 consistent with a continuation of those recent trends. However, it should be noted that there is emerging pressure on the public sector cap as well as increasing pressure for a more fundamental review of pay scales in light of the National Living Wage and its impact on differentials between pay points. There is therefore a risk that a higher allowance for pay inflation will be required and if necessary this will be reflected in the final budget report in February. (2) Assumes an increase of 2% per year on fees and charges. (3) The Council will recommence making Minimum Revenue Provision (MRP) for repayment of debt from 2018/19 as required following the review of MRP Policy in 2015/16. (4) Reflects the uplift in pension contributions agreed up to 2019/20 following the last triennial valuation in 2016. The funding level and contribution requirements from 2020/21 will be reviewed again in 2019; we have currently forecast 2020/21 contributions on the basis of no underlying changes arising from that review. (5) Impact of Capital Programme and treasury management and investment income changes. (6) Enterprise Zone funding requirements and other minor adjustments.
16. Note that there is no provision for general price increases on non-pay budgets. With the exception of specific directorate pressures all non-pay budgets will be cash limited and any inflationary pressures will need to be managed within directorate budgets and through efficient procurement.
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Medium Term Financial Strategy
17. The MTFS reflecting the revised spending proposals set out above, and forecasts of likely resource availability can be summarised as follows.
2018/19 2019/20 2020/21 £m £m £m Base Budget Forecast 226.8 229.3 230.8 Pressures 7.5 10.0 12.0 Savings -4.0 -5.6 -5.6 Public Health Grant funding -0.5 -0.5 -0.5 Leisure Centres 0.6 1.2 Redundancy costs 0.5 - - Adult Social Care spend funded from SiBCF 4.5 2.2 - Total Service Spend 234.8 236.0 237.9
Retained Business Rates 86.3 89.3 91.5 Top-Up Grant / Tariff 3.1 -5.6 -6.0 Business Rate Grant (inc. in respect of EZ) 8.6 9.1 9.7 New Homes Bonus (inc. adjustment grant) 3.3 3.2 3.2 Improved Better Care Fund (iBCF) 7.2 12.4 12.4 Supplementary iBCF (SiBCF) 4.5 2.2 - Collection Fund Surplus – Council Tax 0.7 - - Collection Fund Surplus – Business Rates 1.0 - - Council Tax 113.9 119.4 122.9 Total Resources 228.6 230.0 233.7
Deficit funded from Balances 6.2 6.0 4.2 Balances brought forward 22.7 16.5 10.5 Balances carried forward 16.5 10.5 6.3
18. The table above assumes that Council Tax increases by just under 3% in 2018/19 (including the Social Care Precept), just under 4% in 2019/20 and just under 2% in 2020/21. Based on current referendum limits, this would not require a referendum in accordance with Chapter 4ZA of Part 1 of the Local Government Finance Act 1992. However it should be noted that these referendum limits are subject to Government monitoring of our use of the Adult Social Care Precept in the current year. We are awaiting final feedback on the outcome of this monitoring.
19. Based on the forecasts, pressures and savings proposals set out above, we are forecasting deficits in all future years. While these deficits can be met from reserves over the next few years, this is unsustainable in the longer term. There is therefore a need to identify further savings and/or additional income in order to ensure that prudent balances are maintained.
20. Work is ongoing on a number of strands of transformation to address these financial challenges:
• Customer Connect – led by the implementation of a new digital customer services platform to deliver additional savings through better management of customer contact, self-service and automation of end to end processes.
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• One Public Estate – an exercise to identify additional savings and/or generate additional income to the Council by reducing the size of the operational estate, sharing buildings with partners and releasing sites for regeneration.
• Commercial – a review of the Council’s procurement capacity and structures, review of the financial sustainability of our existing traded services and development of a corporate commercial strategy to guide the development of future initiatives.
• Community resilience – implementation of a new social care IT system, new models of care for whole life disability and children looked after and consideration of alternative service delivery vehicles in order to improve productivity and efficiency.
We are also looking to the Combined Authority to support our transformation, in particular where it can help us to work at scale, obtain freedoms and flexibilities from government and share services. This will be in addition to its role of improving transport links and driving economic growth, thus increasing Council Tax and Business Rates income.
21. Council on 6th March 2017 passed a resolution calling on the Chief Executive to procure a private company to be targeted to deliver savings of 5% from procurement over the next three years and to be paid by results. A procurement exercise was subsequently undertaken and the bids that were received raised significant concerns about the level of consultancy cost that could be incurred and how in practice the payment by results mechanism would be controlled. In light of these concerns, a further exercise has been undertaken to engage a Strategic Procurement Advisor (initially for six months) to review the Council’s procurement capacity and make recommendations for an appropriate procurement structure to drive forward further savings in line with the Medium Term Financial Strategy.
Finance
22. This report is financial in nature and relevant information is contained within the body of the report.
Law
23. The Council’s budget setting process is governed by the Local Government Finance Acts 1988,1992, and 2012 and the Local Government Act 2003.
24. The Local Government Act 2003 requires the Chief Financial Officer to report on the robustness of estimates made for the purpose of final budget calculations, and the adequacy of the proposed financial reserves and this will be included in the final budget report.
25. The Localism Act 2011 introduced a new chapter into the Local Government Finance Act 1992 making provision for council tax referendums to be held if an authority increases its council tax by an amount exceeding principles determined by the Secretary of State and agreed by the House of Commons.
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26. The Local Government (Early Termination of Employment) (Discretionary Compensation) (England and Wales) Regulations 2006 are designed to enable a local authority to compensate employees whose employment terminates on grounds of redundancy or in the interests of the efficient exercise of the authority’s functions. Any local arrangements in place must also be compliant with the Employment Rights Act 1996 and the Equality Act 2010.
Equality Impact
27. Section 149 of the Equality Act 2010 - the general public sector equality duty - requires public authorities, including the Council, to have due regard to the need to: • eliminate discrimination, harassment and victimisation and other conduct that is prohibited by the Act; • advance equality of opportunity between people who share a protected characteristic and those who don't; • foster good relations between people who share a protected characteristic and those who don't.
28. Having due regard to the need to advance equality of opportunity between persons who share a relevant protected characteristic and persons who do not share it involves having due regard, in particular, to the need to: • remove or minimise disadvantages suffered by persons who share a relevant protected characteristic that are connected to that characteristic • take steps to meet the needs of persons who share a relevant protected characteristic that are different from the needs of persons who do not share it • encourage persons who share a relevant protected characteristic to participate in public life or in any other activity in which participation by such persons is disproportionately low.
29. The legislation states that "the steps involved in meeting the needs of disabled persons that are different from the needs of persons who are not disabled include, in particular, steps to take account of disabled persons' disabilities." In practice, this means that reasonable adjustments should be made for disabled people so that they can access a service or fulfil employment duties, or perhaps a choice of an additional service for disabled people is offered as an alternative to a mainstream service.
30. Having due regard to the need to foster good relations between persons who share a relevant protected characteristic and persons who do not share it involves having due regard, in particular, to the need to: • tackle prejudice, and • promote understanding.
31. Compliance with the duties in this section may involve treating some persons more favourably than others; but that is not to be taken as permitting conduct that would otherwise be prohibited by or under this Act.
The duty covers the protected characteristics of age, disability, gender reassignment, pregnancy and maternity, race, religion or belief, sex and sexual orientation.
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32. An initial assessment of the budget proposals has been made. Where proposals are likely to have a significant equality impact, they will undergo an equality impact assessment informed by consultation with the protected groups who may be adversely affected, during the autumn. The results of this process and any steps which emerge that might help to mitigate any potential impact of the budget proposals on the protected groups will be reported to Members so that they can pay due regard to the Public Sector Equality Duty in making decisions on the budget. In making decisions on budget proposals, Members will need to weigh the Public Sector Equality Duty against the forecast financial position, risks and uncertainties set out in this report.
33. With regard to Children and Young People, a substantial element of the proposed budget for the People Directorate will be spent on maintaining and improving services for children and young people. The expenditure of other Directorates’ budgets will also have a significant impact on this group.
Human Resources / Transformation
34. Human Resources implications are set out in paragraphs 13 and 14 of the report.
35. Transformation issues are set out in paragraph 20 of the report.
...... Leader of the Council
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Appendix A
Localised Council Tax Reduction Scheme 2018/19 – Consultation results
The proposals initially considered by Cabinet on 19th July were:
Proposal 1 Increase the cut in CTR from 22% to 23% - £108,000 additional income (of which real net gain to Council £76,000 allowing for collection losses and share to Fire and Police).
Proposal 2 Introduce a new “vulnerable category” for care leavers aged between 18 to 24. The effect of this would be that where a care leaver lives alone or is jointly liable for council tax they would not attract the cut in CTR. Based on information held by Children’s Services and comparisons with similar local authorities, the cost in terms of reduced income is likely to be less than £20,000 per year.
Consultation concluded on 15th October with the following questionnaire results:
Strongly Strongly As at 15/10/17 Agree Disagree agree disagree Proposal 1 65 62 44 56 Proposal 2 77 49 45 54
In percentage terms 56% of respondents agree/strongly agree with both proposals.
Additionally, the following responses were received from preceptors.
Police:
This email acknowledges receipt of the consultation document and have no comments.
Fire:
As indicated in previous responses, the options provided in the document you forwarded affect some of the most vulnerable members of the community. Unfortunately, these people are often those at most risk from fire related incidents and so for the modest amounts of additional funding the Fire Authority would receive I don’t support increasing the cut from 22% to 23% as proposed in Section 22 of the report but do support the introduction of a “vulnerable category” for Care Leavers.
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Meeting of the Council – 4th December 2017
Report of the Cabinet
Review of Housing Finance
Purpose
1. To consider the recommendations of the Cabinet arising from the report on the review of Housing Finance. This report was considered by the Cabinet on 26th October, 2017 and is available on the Council’s Internet site via the Committee Management Information System.
2. Although the Cabinet were not asked to make final decisions on 26th October, 2017, Cabinet considered the proposals relating to the following and noted these would be considered by the Place Scrutiny Committee before returning to Cabinet on 8th February, 2018 and where relevant Council on 19th February, 2018:-
• rents for council homes with effect from 2nd April, 2018. • charges for sundry services with effect from April, 2018. • a draft Housing Revenue Account (HRA) budget for 2018/19 in the light of the latest government announcements on housing finance and our latest spending and resource assumptions. • a revised Public Sector Housing capital programme for 2018/19 to 2020/21 • the HRA’s 30 Year Business Plan.
Recommendations
3. That the Council:
• Approve the revised Housing Revenue Account (HRA) budget for 2017/18. • Approve the revised Public Sector Housing Capital Programme for 2017/18. • Note the proposals, in the report for consideration by the Place Scrutiny Committee prior to approval by Cabinet, and where relevant, to Council in February, 2018.
Background
4. The HRA is a ring-fenced revenue account and deals with landlord functions associated with public sector housing. The costs of improvement and programmed maintenance of the Council’s housing stock are treated as capital expenditure and are accounted for separately.
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HRA Revised Budget
5. The current budget for 2017/18 approved by Cabinet on 8th February 2017, shows a surplus on the HRA of £0.633m at 31st March 2018. There are now a number of variations to the original budget.
6. The original 2017/18 budget and the proposed revised 2017/18 budget are shown in Appendix 1. The proposed revised budget shows a surplus on the HRA of £1.037m at 31st March 2018.
7. Overall, forecast income has increased by £496,000 compared to the original budget. Rental income is expected to be higher than originally budgeted as rent loss from Right to Buy sales is lower than estimated. Income from non-dwelling rents (e.g. shops and garages) is expected to be better than originally predicted, and an additional £206,000 is now forecast in miscellaneous income which contributes to expenditure, for example income from Telecare charges and aerial rental.
8. The revised budget for Management is lower than originally budgeted, mainly owing to the transfer of corporate and democratic core charges from Management to Other Expenditure, for clearer reporting.
9. The costs have been shown separately for homeloss and disturbance payments for tenants and leaseholders in Arley, Compton, Wells and Manor Courts as these blocks are vacated prior to demolition, and of disturbance payments to tenants at Margaret Vine and Holloway Courts during the decant period. For accounting purposes, these costs are categorised as revenue (housing management) costs.
10. The increased expected resources resulting from higher income, lower housing management costs and a higher balance brought forward from 2016/17 (as reported in June) have largely been directed to Revenue Contributions to Capital Expenditure, to support future improvement and major repair works.
11. Other Expenditure comprises council tax paid on empty properties, buildings insurance for council homes, and, as noted in paragraph 9 above, the HRA contribution to the corporate and democratic core costs of the local authority.
Rent Decrease
12. The self-financing system introduced in April 2012 for Housing assumed that rent increases would be in line with government guidance at the time relating to social housing rents. However, the Chancellor announced in his July 2015 budget that social landlords’ rents would be reduced by 1% annually for the next 4 years (2016/17 through to 2019/20) and would then revert to the rent increase formula of September CPI plus 1%. It is therefore proposed that the next rent year will start on 2nd April 2018 and that rents will be reduced by 1% compared to 2017/18 levels. The HRA budget for 2018/19 and the 30 year long-term financial forecast for the HRA take into account these rent reductions.
13. The average weekly rent will be £76.95 from April 2018, compared to a current average weekly rent of £77.73.
Service Charges
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14. In addition to the rents discussed above, we currently apply service charges in certain properties in respect of items such as furniture and garden maintenance. It is proposed that these service charges be increased by 2.7% in line with inflation (average CPI from April 2017 to August 2017).
15. We also currently apply management charges for temporary accommodation for homeless people. These properties were funded by the General Fund until April 2017, when they transferred into the HRA. It is proposed that these charges be removed with effect from April 2018, in order to be consistent with the treatment of management charges across the HRA, and also in preparation for changes expected in relation to supported housing costs from April 2019.
16. We also apply service charges to 344 properties in our eleven sheltered housing schemes in respect of heating and lighting. These charges vary according to the scheme and the size of the properties and may be offset against the winter fuel payment received by tenants, plus any cold weather payments. Housing Benefit will also cover these charges where applicable. For six of the schemes (Church View, Joe Jones Court, The Gables, Jack Newell Court, Nene Close, Woodhouse Court), the current level of charge is expected to cover heating and lighting costs, so no increase is proposed. For Holloway Court and Margaret Vine Court, where refurbishment work has been taking place, including the installation of a new and more efficient heating system, charges will be set at £10.72 per week, which is the current lowest charge applying for these schemes. For the other three schemes (Beulah Court, Grange Court, Netherton Lodge), it is proposed to increase charges by 10% in order to reflect cost increases and the move towards cost recovery. The average increase across all the schemes is 1% and the average weekly charge will be £14.92 over 52 weeks.
17. The Council offers laundry tokens for sale for the use of tenants at five high rise blocks (two in Brierley Hill and three in Dudley). It is proposed that charges be increased to £2.50 per token.
18. It is proposed that pitch licences at Oak Lane be reduced by 1%, in line with the proposal for general rents, and that weekly charging for water be increased by 2.7% in line with inflation to £6.49 per week.
19. The Council currently charges an administration fee of £2 per week to its leaseholders, to cover the costs of managing the properties. It is proposed that there is no increase in the overall level of the fee.
20. It is proposed that the charge of £50 (plus VAT) per leasehold information pack, introduced from 1 January 2015 to cover the costs of compiling information relating to the sale of council flats, be maintained at the current level.
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21. The Council currently charges private residents who are in receipt of Telecare services (provision of an alarm service, and also standalone equipment such as pill dispensing service and GPS tracking watches) £13.70 per month, and also charges Housing Association tenants varying amounts for this service. It is proposed to increase these charges by 2.9% to £14.10 per month from 1 April 2018. Income generated will be used to increase investment in and development of the service.
Garage rents, garage plots and access agreements
22. It was agreed by Cabinet in February 2008 that inflationary increases for garages, garage plots and access agreements be made every three years, with the next increase to take effect from 2020/21.
Proposed HRA budget 2018/19
23. The proposed HRA budget for 2018/19 is also shown in Appendix 1. This budget is based on recent trends and our latest assessment of government policy on housing finance.
24. The key elements of the self-financing system that now operates in relation to local authority housing are:
• Abolition of the HRA Subsidy system and retention of all rental income. • A one-off allocation of housing debt based on an affordability calculation. • A cap on new borrowing above a set maximum level. • Transfer of investment, borrowing and inflation risks to housing authorities. • Continued compliance with central government rent policy.
25. The proposed HRA budget for 2018/19 takes account of the proposed rent reduction of 1% on the 2nd April 2018 (paragraphs 2, 13 and 14).
26. Recent pay awards for local government have been settled at low levels in line with the public sector pay cap, with larger increases on the lower pay points to comply with the National Living Wage. Our current estimates allow for a 1.4% average increase in 2018/19, consistent with a continuation of those recent trends. However, it should be noted that there is emerging pressure on the public sector cap as well as increasing pressure for a more fundamental review of pay scales in light of the National Living Wage and its impact on differentials between pay points. There is therefore a risk that a higher allowance for pay inflation will be required and if necessary this will be reflected in the final budget report in February. We have also accounted for employer pension contributions from 2017/18 to 2019/20 reflecting the final outcome of the triennial valuation in 2016. There remains no provision for general price increases on non-pay budgets, and to ensure that the challenge is met, we have reviewed authorisation levels and use of purchase cards and continue to promote an “every penny counts” approach with and for all budget managers. We will continue to contribute to the Apprenticeship Levy at a rate of 0.5% of payroll. The impact on the HRA is around £0.1m per year and this has been built into our forecasts.
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27. The proposed HRA budget for 2017/18 includes a budget for housing management of £17.5m. This covers the day to day management of properties including income collection, tenancy enforcement, support for vulnerable tenants and lettings and void management.
28. Since 2014/15, the HRA has topped up the Discretionary Housing Payments (DHP) allocation received from central government. This allows for discretionary additional benefit payments to meet housing needs, mainly where a tenant has had housing benefit reduced as a result of underoccupancy penalties or the benefit cap. Around 75% of awards relate to council housing tenants, although awards are also made to tenants of housing associations or tenants in the private rented sector. The proposed budget for 2018/19 includes a contribution of £550,000, which will be added to the grant from central government.
29. The proposed HRA budget for 2018/19 includes a budget for repairs and maintenance of £22.7m. This reflects:
• Undertaking responsive repairs and routine void works; • Undertaking all required cyclical statutory responsibilities such as annual servicing of gas appliances, electrical inspections and maintenance on specialist electrical systems, warden call equipment and alarms, lift servicing, repairs and inspections, and periodic testing of water hygiene; • Cyclical maintenance such as painting of communal areas, social decorations for vulnerable residents.
30. The proposed HRA budget for 2018/19 includes a budget for interest payments of £17.6m. This covers the payments that are due on the debt taken on as part of the self-financing settlement and additional borrowing under the Local Growth Fund.
Public Sector Housing Capital Programme
31. In February 2017, a 5 year housing public sector capital programme was agreed. A revised capital programme reflecting latest forecasts is shown at Appendix 2.
32. The capital programme follows the principles approved in February 2017 and reflects the priorities of the Council Plan and the views of members and residents as expressed via the Housing Board, DFTRA and wider consultation events. The impact of the rent reduction for 2016/17 to 2019/20 has been addressed predominantly through reviewing and reducing the amount of unplanned ad-hoc expenditure in empty homes, with a more strategic, planned approach increasing resources to deliver planned programmes for key building elements in a more efficient way when they are affordable. Strategic, planned investment therefore continues to target the following key priorities:
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• Strategic investment and de-investment programmes in accordance with the ongoing strategic stock sustainability and appraisal work. • Planned programmes of expenditure to keep homes in good order by addressing investment in key building components such as roofs, electrics, kitchens and bathrooms; • Improving fuel poverty, energy efficiency and combating climate change; • Providing investment at affordable levels for communal facilities in flatted developments, improving community safety and delivering environmental improvements; • Delivering social care programmes which increase the ability for residents to live independently in their own homes; • Providing new affordable social housing within the borough; • Ensuring that as many of the Council’s homes as possible are available for occupation.
33. The proposed capital programme represents a continuation of the existing programme to maintain current standards and improvements. An updated programme will be presented to Cabinet in February which will take into account the outcomes of the next phase of our strategic investment and de-investment programme and of the scrutiny process.
HRA Business Plan
34. The financial strategy for landlord housing is the subject of a continuing consultation process that includes tenants and residents.
The key elements of this financial strategy, which presents an overall 30 Year Business Plan and covers a rolling five year period in more detail, include:
• maintain the Decent Homes Standard; • improve the energy efficiency of the housing stock and address fuel poverty; • invest in housing stock and minimise the number of void properties; • review the suitability of the housing stock and explore the feasibility of new build to increase stock and / or replace properties that are in poor condition or that do not meet modern requirements; • support the aims of the Council Plan - promoting strong, caring communities through the provision of decent housing in a safe and clean environment; • identify ongoing savings and efficiency gains, through the use of partnerships where appropriate; • continue to undertake prudent management of reserves and other balances; • set rents having regard to government rent policy for social housing and our investment needs.
The HRA Business Plan is shown at Appendix 3. Clearly, the government’s decision to impose a 1% reduction in social landlords’ rents for the next four years represented a significant change to our original forecasts for 2016/17 onwards, which were based on the government’s rent policy (CPI plus 1% rent increases).
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Finance
35. Section 76 of the Local Government and Housing Act places a duty on the Council to ensure that no action will be taken that may cause a deficit to arise on the HRA at 31 March 2018. A duty is also placed on the Council to review the financial prospects of the HRA from time to time. Reviews and regular monitoring carried out confirm that the HRA will be in surplus at 31 March 2018 and therefore complies with the requirements of the Act.
Law
36. HRA finances are governed by Section 74-78B and 85-88 in Part IV of the Local Government and Housing Act 1989. Sections 167-175 in Part VII of the Localism Act 2011 abolish the HRA Subsidy system (Sections 79-84 in Part IV of the Local Government and Housing Act 1989) and introduce self-financing. The Welfare Reform and Work Act 2016, Sections 23 to 33, introduced the requirement in each relevant year for providers of social housing to secure that the rent payable by a tenant of their social housing is at least 1% less than the amount payable in the preceding 12 months. Schedule 2 provides for the application of formula rent where there is a new tenancy.
Equality Impact
37. The proposals take into account the Council’s Policy on Equality and Diversity.
38. This is a financial report concerned with forecasting of income and application of resources. Some areas of proposed expenditure are intended to promote independence and improve quality of life for protected groups.
Human Resources / Transformation
39. The proposals in this report do not have any direct Human Resources / Transformation implications.
...... Leader of the Council
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Appendix 1
HRA Revised Budget 2017/18 and Draft Budget 2018/19
Original Proposed Variance Proposed Budget Revised 2017/18 Draft 2017/18 Budget £000s Original £000s 2017/18 Budget £000s 2018/19 £000s Income Dwelling rents -86,556 -86,745 -189 -85,205 Non-dwelling rents -707 -814 -107 -830 Charges for services and facilities -241 -241 0 -241 Contributions towards expenditure -810 -1,016 -206 -1,026 Interest on balances -28 -22 6 -22 Total income -88,342 -88,838 -496 -87,324
Expenditure Management 17,000 16,464 -536 17,516 Management –homeloss and disturbance 0 1,275 1,275 0 Responsive and cyclical repairs 22,488 22,490 2 22,751 Transfer to Major Repairs Reserve 23,030 23,040 10 23,107 Acquisition / Disposal of Land / Properties 303 303 0 0 Interest payable 17,589 17,620 31 17,561 Revenue contribution to capital expenditure 6,000 7,000 1,000 4,720 Discretionary Housing Payments 550 550 0 550 Other expenditure 1,391 1,696 305 1,713 Total expenditure 88,351 90,438 2,087 87,918
Surplus / Deficit in year 9 1,600 1,591 594
Surplus brought forward -642 -2,637 -1,995 -1,037
Surplus carried forward -633 -1,037 -404 -443
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Appendix 2
Proposed capital programme 2017/18 to 2020/21
2018/19 2017/18 £’000 2019/20 £’000 2020/21 £’000 £’000 Adaptations 2,646 2,408 2,434 2,401 Central heating 3,910 2,801 2,808 2,626 Community Safety and 564 1,529 1,378 1,563 Environmental Improvements Electrical Installations 602 1,031 634 784 External Improvement Programme 8,997 7,492 9,574 9,639 Insulation and Energy Efficiency 467 326 162 63 Minor Works 8,385 5,102 2,661 1,967 Internal Improvement Programme 3,468 2,495 4,489 4,784 New Council Housing 8,992 8,687 5,180 4,390 Accommodation and Property 36 0 0 0 Void Property Improvements 6,378 7,616 7,199 7,458
Grand Total 44,445 39,487 36,519 35,675
Resources
2017/18 2019/20 2018/19 £’000 2020/21 £’000 £’000 £’000 Borrowing 0 0 0 0 Major repairs reserve 23,040 23,107 23,451 23,920 Revenue contribution to capital 7,000 4,720 2,500 2,800 Usable capital receipts 13,006 8,521 10,161 8,955
Less usable capital receipts 0 0 0 0 transferred to support private sector housing capital Other (grants) 1,399 3,139 407 0
Grand Total 44,445 39,487 36,519 35,675
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Appendix 3
HRA Business Plan - Thirty Year Business Planning Strategy for Landlord Housing
Purpose
1. The Medium Term Financial Strategy for Landlord Housing (MTFS(LH)) has set out how the Council plans to balance spending pressures and available resources over the medium term, taking into account risks and uncertainties. It relates specifically to the Housing Revenue Account (HRA) and the capital programme for improvement of the Council’s own housing stock.
2. The MTFS(LH) should be read in conjunction with the Council’s overall Medium Term Financial Strategy (MTFS). The underlying principles set out in the overall document apply equally to the MTFS(LH).
3. In the context of the introduction of Self-Financing for public sector housing, the abolition of the HRA subsidy system, the increased autonomy and flexibility that housing authorities will have to manage their stock and, in Dudley’s case, the increased debt taken on, a Thirty Year Business Plan has been developed. This takes into account issues including investment need, treasury management strategy, financial projections and tenants’ engagement.
Background
4. The financial strategy for landlord housing takes into account the delivery of the Decent Homes Standard and the new opportunities and challenges arising from the introduction of the self-financing system. This is the subject of an ongoing consultation process that includes tenants and residents. The key elements of this new financial strategy, which will cover a rolling five year period, are:
• maintain the Decent Homes Standard; • Improve the energy efficiency of the housing stock and address fuel poverty; • invest in housing stock and minimise the number of void properties; • review the suitability of the housing stock and explore the feasibility of new build to increase stock and de-invest in and / or replace properties that are in poor condition, low demand or that do not meet modern requirements; • support the aims of the Council Plan - promoting strong, caring communities through the provision of decent housing in a safe and clean environment; • identify ongoing savings and efficiency gains, through the use of partnerships where appropriate; • continue to undertake prudent management of reserves and other balances; • set rents having regard to government rent policy for social housing and our investment needs.
The proposed budget and the MTFS(LH)
5. Ongoing resources are required to maintain the Decent Homes standard, and deal with properties where the age of the fittings mean that a replacement is required, and non-decent properties as they become void. The rolling five-year capital programme includes resources to maintain the Decent Homes Standard.
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6. A stock validation survey was commissioned and undertaken during late 2013 to externally validate and support existing stock investment information for the housing stock. The detailed output of this is now embedded within the 30 year investment cost plan, which is continually updated to reflect investment undertaken and newly arising investment need. A strategic stock investment appraisal was commissioned in 2015 through i.s.4 housing & regeneration (IS4) to enhance and accelerate previous in-house work on sustainability modelling and 30 year planning. The IS4 stock appraisal assessed the net present value of property management, maintenance and investment need against rental income, and property ‘prospects and performance’ (essentially current and future demand) and the report provides an overview of the relative performance of the Council’s housing stock at a point in time, providing a strategic steer on the some key triggers for action. Further investigative work is now ongoing at a detailed area and property level to determine specific mitigations and/or interventions required. The report and the supporting analysis will assist in the production of a detailed asset management strategy for Dudley’s housing stock and to inform future investment and de-investment strategies for the short, medium and longer term.
Part of IS4’s strategic asset management process was to “traffic light” the stock using red, amber and green benchmarks. The assessment of Dudley’s housing stock found :
• In the overall assessment the majority (16,234 units or 72%) of Dudley’s stock is assessed as green, meaning that it is core stock for investment purposes and which, other things being equal, Dudley will continue to invest in over the longer term. There are 3,270 units (15%) which are assessed as amber and 2,967 units (13%) which are assessed as red and these units require some further detailed consideration.
• In the financial assessment, there are 5% more units assessed as green (77% or 17,323 units), 2,749 units (or 12%) which have been assessed as amber and 2,399 units (which is 11%) which are assessed as red.
• In the performance and prospects assessment fewer units are assessed as green (9,571 units or 43%) and considerably more are assessed as amber (9,252 units or 41%) and the remaining 3,648 units (16%) are assessed as red.
However, in addition to the ‘bricks and mortar’ investment needs we also need to consider additional wider community council and housing priorities. This includes addressing priorities such as new build housing, de-investment and conversions, facilitating independent living for vulnerable people with disabilities by adapting properties, and estate based community improvements to provide sustainable communities for the future.
7. The forecast has been based on recent financial trends and our current assessment of the Government’s housing finance policy and, like any forecast, should be regarded with caution (risks to the forecast are considered later). In view of our commitment to stock retention and maintenance of the Decent Homes Standard, it is proposed that we continue when necessary to give consideration to the following:
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• ongoing review of spending and resource forecasts; • further efficiency and other savings, including those achievable from use of partnerships; • review of the existing housing stock provision to consider de-investment options and re-configuration of high investment need and low demand homes; • addition to and replacement of the housing stock via new build programmes; • the level of housing debt; • service charges1.
8. Whilst in some areas the volume of smaller responsive repairs has generally decreased due to recent investment, particularly around central heating, there is an emerging trend of increasing investment need to deliver major improvements to homes and to maintain decent homes, which was only ever a minimum tolerable standard, to a housing stock that is, on average, 63 years old. Delivering planned programmes of improvements in cyclical, strategic programmes (such as the current planned boiler and double glazing programmes) is the optimal solution to delivering value for money through efficient procurement and planned works delivery
9. A proposed rolling capital programme has been developed as a continuation of the existing programme to maintain current standards and improvements following the achievement of the Decent Homes standard.
10. Resources have been identified for a new build programme which will meet our current Right to Buy Replacement targets and also fund the schemes for which we have Local Growth Fund approval. Resources have been allocated to future years assuming that government rules will continue as they are currently.
Risks to the financial forecast
11. The main risks to the financial forecast are considered below:
Risk Impact Inflation higher than While increased inflation has an impact on costs, forecast in the case of the HRA, it also affects resources, through the rent increase (or decrease) applied.
If cost inflation is lower than general inflation as used to determine rent levels, this will have a positive budgetary impact.
However, if cost inflation is higher than general inflation as used to determine rent levels, this will have a negative budgetary impact.
1 Government subsidy calculations assume charges over and above the rent for special services to flats and for supported housing – the HRA is financially disadvantaged as a result of not applying these charges. 103
With the government’s new policy of rent decreases for social landlords for 4 years from 2016/17, this risk of increased inflation becomes even more significant.
Income levels not achieved Rent loss from void properties We have seen over recent years an increase in void properties owing mainly to greater tenant mobility and this has resulted in an increased rent loss of up to 3% of total rent available.
We have seen an increase in the number of hard- to-let properties, for instance two-bedroom flats, particularly in high rise blocks, and some three- bedroom houses.
We have allowed in our forecasts for a rent loss of 2.5% of total rent available in 2017/18, reducing to 2.2% in 2018/19. This reflects our new approach to works on void properties and the expected reduction in re-let time.
The cost for each 1% void loss is around £1m per annum.
Rent loss from non-payment of arrears As part of the Government’s proposed welfare reforms, many tenants will in future start to receive Universal Credit direct and will therefore be responsible for paying their own rent. Currently, tenants in receipt of housing benefit have their rent paid as a transfer from Benefits. This is likely to lead to an increase in arrears and potentially in bad debts.
The long-term impact of Universal Credit on rent collection rates is difficult to assess at this stage, but initial estimates from the pilot projects suggest that the collection rate may fall from the current 98% to 80% - 90%. The management cost of collecting rents is also expected to rise as more payments are made direct by tenants rather than via transfer from the Benefits system.
Dudley was in the first tranche of the national roll- out of Universal Credit to new, single claimants nationally, which started in March 2015. Numbers were fairly low, although managing this caseload has proved very intensive in terms of staff time and we are seeing higher arrears for this group (average 80% of Universal Credit claimants are
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in arrears, compared to around 26% of all tenants).
All new claimants and many existing claimants who have changes in circumstances will move to Universal Credit in Dudley from July 2017. We are working actively to mitigate the risk of loss of income, including tenant profiling, pre-tenancy training, support for tenants experiencing financial difficulties, increased automation and other efficiencies in the income recovery process, and partnership working across the council and with DWP, CAB and other agencies.
Since July, we have seen numbers on Universal Credit increase significantly, from an average of 4 new tenants a week moving to Universal Credit previously to over 30 a week since the full roll-out in July.
In addition to Universal Credit, tenants may also be affected by underoccupancy charges (since April 2013) and the reduced Benefit Cap (since November 2016).
Change in rent policy The government has superseded the national formula for a maximum rent increase for social landlords of September CPI plus 1%. Social landlords are now required to reduce their rents by 1% annually from April 2016 for four years.
This will have a significant impact on future budgets and has required us to revise our HRA Business Plan to reflect this lost income.
Compared to our forecasts for 2015/16 original budgets, this ongoing, cumulative rent reduction represents a loss of income of almost £28m by 2019/20.
Changes to other It is expected that mandatory fixed term Government housing tenancies will be introduced, which will increase policies administration costs and is also likely to result in higher tenancy turnover. This may also have an adverse impact on property condition, if tenants do not maintain their homes as well as they did when they had a lifetime tenancy.
The Government has also proposed a levy on higher value social housing. At this point, we do
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not have any indication of the likely value of this levy but, if introduced, this will have an impact on the HRA budget.
Interest rates higher than Our debt on housing properties is around £470m forecast following the introduction of self-financing. Hence, interest rate risk is much more significant than it was under the subsidy system.
Risk will be mitigated by borrowing at fixed rates and spreading repayment dates to minimise refinancing risk.
Reduction in property Any reduction in property values will reduce the values in the borough value of usable capital receipts.
Reduction in land sales and We have seen as a result of the general capital receipts economic situation a diminution in the value received for sale of housing land. We also recognise that with a new council house building programme we are likely to be disposing of fewer housing sites.
Reinvigoration of Right to The Government has increased the cap on Right Buy to Buy (RTB) discount from £26,000 to £78,600 per property, and in future years this will continue to increase by inflation annually. The maximum discount for houses has also been increased during 2014/15 from 60% to 70%, and in May 2015 the requirement to have been a council tenant for 5 years before exercising right to buy has been reduced to 3 years. The changes have resulted in increased sales from the last quarter of 2012/13 onwards, although sales have been fairly consistent at around 180 – 200 per year from 2013/14 onwards.
However, because the value of the maximum discount has increased and there has been a reduction in the average value of the properties sold, increased sales will not necessarily result in a proportionally greater value of capital receipt income.
New regulations have replaced the capital receipts pooling arrangements and require councils to build replacement homes for all extra homes sold under Right to Buy.
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Suitability of stock Some of our stock is old and not particularly suited to modern styles of living. In addition, changes to the benefit system mean that some of our properties are less attractive than they were previously (e.g. two-bed high rise flats or three- bed maisonettes). We are already experiencing difficulty in letting such properties, which leads to a loss in rental income and also potentially an increase in security costs and an increase in anti- social behaviour.
Work is ongoing to assess the sustainability of the housing stock addressing the net present value of housing investment needs and rental income against demand, resulting in an assessment of the housing stock at an individual unit level, and potentially leading to proposals for stock remodelling, disposal and or demolition.
Availability of borrowing The HRA is currently at the government’s borrowing cap, so all capital expenditure on housing stock must be funded from annual revenue (mainly dwelling rent income) or capital receipts from house or land sales. Our strategy is to invest our annual rental income into maintaining and improving our stock, and building new homes as resources permit. In the short to medium term we are not planning to repay any debt, as our priority is improving and extending our stock. However, this restricts the size of any redevelopment / new build scheme as we are not able under current rules to borrow on the strength of future rental income.
We were successful in our bid under the Local Growth Fund to increase our borrowing cap by £1.5m in 2015/16 and a further £4.7m in 2016/17, which has contributed to our new build programme.
Unforeseen costs or costs Any unbudgeted costs would have to be met from greater than estimated economies or reductions in planned spending in the year in which they arise or from any balances available in that year. Calculations indicate that any costs to the HRA arising from Single Status can be met within proposed budgets. We anticipate that any Equal Pay settlement costs would be capitalised through a government dispensation.
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Partnerships
12. Housing Services is continuing to deliver on its partnership working and currently has a number of such arrangements, for example:
• A strategic partner for delivery of new council housing under a framework arrangement to 2020; • Strategic partnerships that are being delivered in accordance with the principles of Sir John Egan’s report ‘Rethinking Construction’. Through innovative payment mechanisms, incentivising good performance and modern methods of collaborative working, partnerships are delivering improved services at a measurably lower cost and have allowed valuable and limited resources to be re-invested in the housing stock.
13. Funding partnerships have also been forged with the Homes and Communities Agency (HCA) to support new council housing and historically with energy service providers to increase resources for reducing carbon emissions under the Government’s ECO (Energy Company Obligations).
14. Procurement consortia are also used (e.g. the LHC Framework, Procurement for Housing) and other partnership arrangements will also continue to be used where appropriate, forming partnerships with established bodies to deliver procurement efficiencies.
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Meeting of the Council – 4th December, 2017
Report of the Lead for Law and Governance
Membership of Committees 2017/18
Purpose of Report
1. To consider the appointment of Members to fill vacant positions as detailed below.
Recommendations
2. That the Council note the report of the Leader concerning the appointment of replacement Conservative Group Members to serve on the Children’s Services Scrutiny Committee and the Health and Adult Social Care Scrutiny Committee for the remainder of the 2017/18 municipal year.
3. That the Council elect Members to serve in the following positions for the remainder of the 2017/18 municipal year:
- Chair of Health and Adult Social Care Scrutiny Committee - Vice-Chair of Appeals Committee
Background
Membership of Committees
4. On 26th October, 2017, the Leader appointed Councillor L Taylor to the position of Cabinet Member for Housing. Councillor L Taylor was previously the Chair of the Health and Adult Social Care Scrutiny Committee and a Member of the Children’s Services Scrutiny Committee. Her appointment to the Cabinet created a resultant vacancy on both Scrutiny Committees.
5. The Leader will report at the meeting on the appointment of Conservative Group Members to the vacancies on the two Scrutiny Committees. In addition, the Council is invited to elect a Member to serve as the Chair of the Health and Adult Social Care Scrutiny Committee for the remainder of this municipal year.
6. At the meeting of the Council held on 9th October, 2017, the filling of the vacant position of Vice-Chair of the Appeals Committee was deferred. Councillor S Tyler had previously indicated his resignation from this position. The Council is also invited to fill the vacancy for the remainder of this municipal year.
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Finance
7. The financial implications arising from this report, including the payment of Members’ Allowances, will be met from existing resources.
Law
8. The relevant statutory provisions regarding the Constitution are contained in Part II of the Local Government Act, 2000 together with Regulations, Orders and Statutory Guidance issued by the Secretary of State.
9. Under the powers delegated from the Annual Council meeting (Minute No. 11(13)), the Monitoring Officer is authorised to make any changes to the appointments to Committees that arise during the municipal year in accordance with the instructions of the political groups. This is in line with the proportionality requirements of the Local Government and Housing Act 1989.
10. The power to appoint Committees is set out in Sections 101 and 102 of the Local Government Act 1972.
Equality Impact
11. The requirements to consider the Council's policies with regard to equality, along with duties under the Equality Act 2010, are fully reflected in the Council’s governance structures and decision-making processes.
Human Resources/Transformation
12. There are no direct implications arising from this report.
……………………………………. Mohammed Farooq Lead for Law and Governance
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Meeting of the Council – 4th December, 2017
Report of the Chief Executive
West Midlands Combined Authority (WMCA) Borrowing Powers and Amendments to Key Route Network
Purpose
1. To ensure that WMCA is able to enter into the necessary agreements with Government to amend existing statute, enabling WMCA to borrow for all of the functions attributable to it and also endorse the proposed changes to the Key Route Network. Subject to the approval of the West Midlands Constituent Councils, WMCA Board will consider a report at its meeting on 12th January, 2018.
Recommendations
2. That authority be delegated to the WMCA Section 151 officer together with the WMCA Monitoring Officer to approve the amendment to statutory regulations which amend the WMCA borrowing powers as set out in this report, subject to:
a. The additional borrowing powers sought being fully aligned to the WMCA’s statutory functions as detailed within the West Midlands Combined Authority (Functions and Amendment) Order 2017.
b. Equivalent authority / approval allowing the two WMCA officers detailed above to enter into the delegation being received by the other Constituent Local Authorities.
3. That the WMCA Section 151 Officer be authorised to agree the WMCA borrowing cap suggested by HM Treasury as outlined within this report.
4. That the WMCA Section 151 Officer, together with the WMCA Monitoring Officer, be given delegated authority to approve the amendment to the Key Route Network as detailed within this report.
Background
5. West Midlands Combined Authority (WMCA) was established in June 2016 following a Parliamentary Order which effectively dissolved the West Midlands Passenger Transport Executive (WMPTE) and the West Midlands Integrated Transport Authority (WMITA), both of which were replaced by the newly established West Midlands Combined Authority.
111 6. Upon establishing the WMCA, specific powers were granted to this new organisation, which include but are not limited to Housing, Economic Regeneration, Public Sector Reform and Air Quality.
7. The two statutory bodies which preceded the Combined Authority (WMPTE and WMITA) existed to promote and deliver public transport. As such, those entities held the necessary powers to undertake borrowing for transport related purposes (i.e. to fund the Metro expansion).
8. When WMCA was established (and subsequently acquired the broader range of powers / functions), the borrowing powers were not extended to align with the newly acquired functions.
9. In short, whilst currently WMCA has powers across a broad range of areas, it only has the legal ability to borrow in relation to transport related expenditure.
10. Specifically, this issue manifests itself in a number of ways predominantly relating to the investment programme. These being:
• WMCA are currently relying on Birmingham City Council to undertake the commercial borrowing for the Collective Investment Fund.
• WMCA will need to rely on Wolverhampton County Council undertaking the borrowing for the Land Remediation Fund in advance of WMCA’s powers being amended.
• WMCA will be unable to borrow directly to grant fund the Coventry City Centre Regeneration scheme which WMCA Board have approved of c.£99m.
Amendments to WMCA Borrowing Powers
11. The Cities and Devolution Act 2016 amends previous legislation so that in addition to borrowing for transport functions, a Combined Authority may borrow in relation to “any other functions of the authority that are specified for the purpose of [section 23(5)] in regulations made by the Secretary of State”. Such functions include Mayoral and non-Mayoral functions. Such regulations may only provide borrowing powers for a particular function of the Mayoral WMCA if all the Constituent Councils consent.
12. In light of the above, WMCA have been in dialogue with HM Treasury (HMT) and DCLG with a view to commencing the process to obtain the necessary powers and consents WMCA needs to undertake all of its functions; the process for which is broadly as follows:
HMT, DCLG and WMCA agree an annual overall external debt ceiling for WMCA
13. The purpose of the debt cap is to ensure HMT are safeguarded from any fiscal shocks relating to the management of the UK financial deficit.
14. WMCA have responded to HMT’s request to design an annual cap for WMCA External Debt. The cap calculated by WMCA as presented to HMT was sufficient to:
• Cover the necessary borrowing to fund the investment programme based on
112 recent Local Authority estimates.
• Cover any requirement WMCA may have to manage its ‘legacy’ debt position including any refinancing of debt which may be required over the period.
• Allow for £10m p.a. headroom to cover any acceleration of Investment Programme advancement.
15. The value of the borrowing cap proposal submitted to HMT is included as Appendix 1. HMT subsequently accepted the calculations provided by WMCA and provided written confirmation of the provisional deal together with some broad terms.
16. This written agreement aligns the cap to the 5 year gateway review which underpins the £36.5m gainshare grant and contains provisions regarding monitoring and review in the event of unforeseen, material events. 17. HMT now intend to recommend to the Chief Secretary that she approve the debt agreement and will send a letter to the Section 151 Officer for West Midlands Combined Authority. The WMCA Section 151 Officer will be required to give consent to the debt agreement coming into effect and this report requests approval to this action being undertaken by the WMCA Section 151 Officer.
18. It should be noted that regardless of the borrowing ceiling / cap agreed with HMT, all borrowing ultimately undertaken by WMCA within this limit will be done with due regard to affordability, the WMCA Treasury Management Strategy and the CIPFA Code. WMCA, HMT and DCLG agree the Borrowing Powers which would be applicable to WMCA 19. WMCA, HMT, DCLG and other representatives from the region have been in dialogue regarding the borrowing powers which should be applicable to WMCA. Agreement has been reached whereby WMCA will be able to borrow for all of its functions.
20. In essence, following approval of the regulation as proposed, the borrowing powers attributable to WMCA will exactly mirror the legal functions of the organisation as outlined within the West Midlands Combined Authority (Functions and Amendment) Order 2017. This is considered to be a sensible and logical approach and is consistent with borrowing powers given to other Local Authorities.
21. It is important to note that despite the broadening of WMCA borrowing powers, the revised powers will remain within the overall remit of WMCA based on its currently approved functions.
WMCA obtain consent to the delegation from the seven Constituent Local Authorities allowing WMCA to enter into the agreement with Government
22. Constituent Authorities approved the Mayoral Governance Review in May 2016 and this review made the following observations in relation to WMCA’s ability to borrow:
• The Mayoral WMCA is prevented from borrowing for the purposes of its
113 economic development and regeneration functions and as a result one of the Constituent Councils would in effect need to borrow on Mayoral WMCA’s behalf.
• The Greater Manchester Combined Authority has found this approach to be unsatisfactory, administratively burdensome and inconvenient. For the West Midlands to also proceed in this way would be extremely unsatisfactory.
• The 2016 Act remedies this by amending previous legislation so that in addition to borrowing for transport functions, a Combined Authority may borrow in relation to “any other functions of the authority that are specified for the purpose of [section 23(5)] in regulations made by the Secretary of State”. Such functions include Mayoral and non-Mayoral functions.
• Such regulations may only provide borrowing powers for a particular function of the Mayoral WMCA if all the Constituent Councils consent. It is proposed that the regulations should provide for the Mayoral WMCA to have borrowing powers in respect of all of its functions.
23. The requirement for the approach to obtain a delegation is to ensure that the regulations can be laid before Parliament in early 2018 thereby avoiding a protracted process requiring the regulations to be approved individually by WMCA and the seven Constituent Authorities.
24. As detailed in the recommendations to this report, the delegation is expected to be strictly limited to the extension of WMCA Borrowing powers only within the boundaries of the existing functions of WMCA. Should the wording of the actual regulation differ from this principle, the necessary approvals will be requested through the WMCA Board and the seven Constituent Local Authorities.
Key Route Network (KRN) Amendments
25. For the purposes of efficiency in terms of the Parliamentary process, the amendment to the regulations as detailed above is also intended to cover some necessary amendments to the WMCA Key Route Network.
26. Following the adoption of the WMCA 2017 Order, discussions continued with Local Authorities about whether additional roads should be added into Key Route Network. During the initial development phase of this work in 2015 there was some uncertainty about powers and responsibility which has subsequently been clarified, hence the suggested amendments to the KRN.
27. In addition, WMCA and the relevant Constituent Authorities have jointly developed a network map outlining the agreed Key Route Network. The Key Route Network schedule attached as Appendix 2 highlights the additions required (being sought through the regulation) which will align the schedule with the map.
28. To clarify, the suggested additions to the KRN have been jointly developed and agreed between WMCA and the relevant Constituent Highway Authority.
114 29. It is recommended that the delegation being sought should only be executed if the KRN adjustments in the final regulation are consistent with those included within Appendix 2.
Finance
30. The financial implications relating to the amendments to WMCA Borrowing Powers are set out in the background details of the report. The West Midlands Combined Authority (Functions and Amendment) Order 2017 requires the constituent councils to meet any reasonably incurred costs of the Combined Authority, to the extent these costs are not to be met by other resources.
Law 31. The approval of the proposals in this report will ensure that WMCA is able to enter into the necessary agreements with Government to amend the existing statutory requirements, enabling WMCA to borrow for all of the functions attributable to it and also endorse the proposed changes to the Key Route Network. Specific legal implications are dealt with in the background details of this report.
Equality Impact
32. There are no direct implications relating to this Council’s commitment to equality and diversity.
Human Resources/Transformation
33. This report has no direct implications for the Council’s human resources. The wider activities of WMCA present significant opportunities for the transformation of public services.
..……………………….. Sarah Norman Chief Executive
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APPENDIX 1 : WMCA Borrowing Cap Provisionally Agreed With HMT Planned external debt
External debt at 31 March Body Function(s) Project Description 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Existing WMCA External Debt (Including Deductions for Planned Loan Maturities with PWLB, Legacy WM WMCA Transport £172,078,145 £166,218,464 £160,289,728 £136,283,774 £130,199,122 £124,025,763 County Council Maturities and reductions in principal on annuity loans)
WMCA Planned Prudential Borrowing from Table Below See Below £0 £0 £78,975,784 £350,296,825 £532,666,835 £743,309,568
Total planned external debt £172,078,145 £166,218,464 £239,265,512 £486,580,599 £662,865,957 £867,335,331
Planned prudential borrowing
Prudential borrowing between 1 April and 31 March Project Function(s) Project Description Financing Description 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Transport / Economic UK Central Interchange Package involves delivery of improvements and interchange capability at the HS2 Devo Deal Investment Programme : UKC Interchange £2,172,240 £18,207,390 £16,113,290 £12,303,330 Regeneration / Highways Interchange station hub. UK Central Infrastructure Package involves delivery local network improvements, public realm and town Transport / Economic centre enhancements, green infrastructure and digital connectivity. These measures will support Devo Deal Investment Programme : UKC Infrastructure £3,544,890 £10,686,250 £25,866,540 £56,719,160 Regeneration / Highways connectivity and access to the HS2 Interchange Station and support economic growth in the UK Central growth zones and corridors. Devo Deal Investment Programme : Metro Birmingham Eastside Extension Transport Extension of the Metro route to the HS2 site to include track and vehicles. £20,226,779
Devo Deal Investment Programme : Bilston Road Transport Metro track works in Wolverhampton £15,699,000
Devo Deal Investment Programme : Coventry UKC City Centre First Transport / Highways Coventry Station Masterplan development plus Ring Road junction improvements. £10,673,000 £32,396,000 £6,469,000
Economic Development & Devo Deal Investment Programme : Coventry UKC South A46 Link road, Binley & Walsgrave junction improvements, Coventry South park & ride station development. £250,000 £4,762,000 £14,619,000 £16,115,000 Regeneration / Highways
Devo Deal Investment Programme : Coventry UKC VLR Transport Development of a very light rapid transit public transport facility to support HS2 connectivity. £0 £2,524,000 £1,524,000 £1,044,000
Devo Deal Investment Programme : HS2CP Centenary Square Transport £5,088,000 £14,798,000 £12,435,000 The extension of the Metro Network from New Street Station to Centenary Square and onwards to Edgbaston, including the costs of stat diversions, track and additional vehicles. WMCA will borrow from PWLB or an alternative Devo Deal Investment Programme : HS2CP Metro Edgbaston Extension Transport suitable lender, with the repayments secured £11,794,460 against income from WMCA Gainshare Grant (as Devo Deal Investment Programme : HS2CP Rail Schemes Transport Rail infrastructure improvement schemes including contributions to new stations. contained within Devo Deal 1), Business Rates £768,000 £2,279,000 £11,080,000 £16,820,000 Growth and Supplementary Business Rates. This Delivery of a Metro Extension in Wolverhampton with additional works to encompass Wolverhampton Rail Devo Deal Investment Programme : HS2CP Wolverhampton Metro Transport borrowing strategy is consistent with the £5,277,792 £2,578,000 £4,544,208 Station and Car Park. arrangements discussed with Government when The delivery of a Bus Rapid Transit network to include highway measured and vehicle procurement (with Devo Deal Investment Programme : HSCP Sprint Programme Transport agreeing Devo Deal 1. £965,025 £9,977,931 £18,107,234 £36,437,400 private sector investment assisting with the vehicle acquisition costs).
Devo Deal Investment Programme : HS2 - Brierley Hill Metro Extension Transport The extension of the Metro Network to Wednesbury and Brierley Hill £1,980,000 £13,680,000 £12,598,000
Transport and Economic Costs of programme management in relation to the delivery of the HS2 elements of the Investment Devo Deal Investment Programme : Programme Governance £505,556 £382,691 £386,517 £390,383 Regeneration Programme. Coventry City Centre South regeneration. A retail led development scheme to include a new department Economic Development & Devo Deal Investment Programme : Coventry City Centre Regeneration store, retail units, food and beverage units, a cinema, bowling alley, residential space, a hotel, car park and £7,585,281 £85,241,000 £8,252,000 £26,696,000 Regeneration high quality public realm. Economic Development & Devo Deal Investment Programme : Coventry UK Central A45 to A444 Keresley Link and M6 Junction 3 improvements. £140,000 £1,230,000 £1,375,000 £1,116,000 Regeneration/ Highways
Pump priming strategic development opportunities to unlock sites, remediate the industrial legacy and bring Economic Development & Devo Deal Investment Programme : Land Remediation Fund forward £5,000,000 £25,000,000 £25,000,000 £25,000,000 Regeneration/ Housing investable propositions
Development and application of intelligent/smart systems technology and approaches to increase business competitiveness/productivity and to contribute to the reform of public services. Focus will be applications in Devo Deal Investment Programme : Business Innovation Economic Development £1,075,000 £3,300,000 £11,375,000 the Mobility, Health and Energy sectors, reflecting local and regional strengths and priorities as identified in the recent Midlands Engine Science and Innovation Audit.
Other planned PWLB Debt Repayments N/A N/A N/A (£20,226,779) (£26,637,000)
This is an evergreen fund, paid for by charging a £15,000,000 £15,000,000 £15,000,000 £15,000,000 Economic Development & Commercial Property Fund accelerates the development of commercial property projects within the West commercial return on monies loaned to business and Collective Investment Fund Regeneration / Housing Midlands area. It is a revolving Fund that aims to underpin the region’s long term growth and stability. the repayment of the principal over a relatively short period of time. (£15,000,000) (£15,000,000)
WMCA Transport Allowance for re-financing loan maturities N/A £5,000,000 £23,000,000 £5,000,000 £5,000,000
WMCA Borrowing Headroom (Agreed verbally with HMT) N/A N/A N/A £10,000,000 £10,000,000 £10,000,000 £10,000,000 Total planned prudential borrowing £0 £0 £78,975,784 £271,321,041 £182,370,010 £210,642,733
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APPENDIX 2 : Key Route Network (Including Amendments as Highlighted)
Proposed Changes to Schedule 1 of the West Midlands Combined Authority (Functions and Amendment) Order 2017
Schedule 1 - Section 5
Current states
5. A45 from the Stivichall Interchange roundabout with the A444/A46 in Coventry to the Solihull Borough boundary just east of Maxstoke Lane; and from the A452 Chester Road/Kenilworth Road roundabout to the Bordesley Circus roundabout with the A4540 Watery Lane Middleway/Bordesley Middleway/B4128 Coventry Road, including its junctions with—
Amendment required (highlighted in yellow)
A45 from the Stivichall Interchange roundabout with the A444/A46 in Coventry to the A446/A452 Junction with Stonebridge Island; and from a point immediately east of its junction with the M42 motorway Junction 6 excluding the circulatory carriageway to the Bordesley Circus roundabout with the A4540 Watery Lane Middleway/Bordesley Middleway/B4128 Coventry Road, including its junctions with:
Schedule 1 - Section 14
Currently states A453 from its junction with the A34 Walsall Road (see paragraph 1(i)) to its junction with the A5127 Birmingham Road, including its junctions with— (a)B4138 Kingstanding Road; (b)Warren Road/The Ridgeway roundabout; (c)Brackenbury Road/Dovedale Road roundabout; (d)A452 Chester Road (see paragraph 13(l)); (e)Jockey Road/Maxstoke Road roundabout; (f)B4142 Boldmere Road/Stonehouse Road; and (g)A5127 Birmingham Road.
Amendment required (highlighted in yellow) – Change termination point
A453 from its junction with the A34 Walsall Road (see paragraph 1(i).) to its junction with the B4138 Kingstanding Road.
Delete (a)B4138 Kingstanding Road;
(b)Warren Road/The Ridgeway roundabout;
(c)Brackenbury Road/Dovedale Road roundabout;
(d)A452 Chester Road (see paragraph 13(l));
(e)Jockey Road/Maxstoke Road roundabout;
(f)B4142 Boldmere Road/Stonehouse Road; and
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(g)A5127 Birmingham Road.
Schedule 1 - Section 17
Currently states A457 from its junction with the A4123 Birmingham New Road to the Spring Hill roundabout with the A4540 Icknield Street/Ladywood Middleway/B4135 Summer Hill Road, including its junctions with:
(a) A4037 Hurst Lane/Dudley Road; (b) B4517 Owen Street/High Street roundabout; (c) A461 Dudley Port; (d) A4033 Dudley Road West; (e) Roway Lane/Brades Road roundabout; (f) A4034 Olbury Ringway/Freeth Street roundabout; (g) Rounds Green Road/Sainsbury’s roundabout; (h) A4034 Churchbridge/Halesowen Street roundabout; (i) Rood End roundabout; (j) A4031 Spon Lane South/Mallin Street roundabout; (k) A4252 Telford Way/Fenton Street roundabout; (l) A4030 High Street; (m) B4136 Soho Street; (n) B4135 Cranford Street/B4136 Windmill Lane roundabout; (o) A4092 Cape Hill/Barrett Street roundabout; (p) B4129 Rotton Park Road; (q) A4040 City Road; (r) A4040 Winson Green Road/B4126 Icknield Port Road; (s) B4135 Heath Street; and (t) Western entry to the Spring Hill roundabout with the A4540 Icknield Street/Ladywood Middleway/B4135 Summer Hill Road.
Amendment required (highlighted in yellow) Change origin, plus add ‘a’ to ‘o’ in listing below
A457 from its junction with the A459 Dudley Street/High Holborn to the Spring Hill roundabout with the A4540 Icknield Street/Ladywood Middleway/B4135 Summer Hill Road, including its junctions with - a. Turl Street; b. Setton Drive; c. High Arcal Drive; d. Tipton Road; e. Marlborough Road; f. Brooke Street; g. Parkes Lane; h. A457 Sedgley Road/Parkes Hall Road/Park Road; i. Claycroft Terrace; j. Woodsetton Close; k. Bramford Drive; l. A457 Sedgley Road/George Street/Vicarage Road West; m. Fox Street; n. Dawlish Road; o. A457 Sedgley Road/A4123 Birmingham New Road; p. A4037 Hurst Lane/Dudley Road;
118 q. B4517 Owen Street/High Street roundabout; r. A461 Dudley Port; s. A4033 Dudley Road West; t. Roway Lane/Brades Road roundabout; u. A4034 Oldbury Ringway/Freeth Street roundabout; v. Rounds Green Road/Sainsbury’s roundabout; w. A4034 Churchbridge/Halesowen Street roundabout; x. Rood End roundabout; y. A4031 Spon Lane South/Mallin Street roundabout; z. A4252 Telford Way/Fenton Street roundabout; aa. A4030 High Street; bb. B4136 Soho Street; cc. B4135 Cranford Street/B4136 Windmill Lane roundabout; dd. A4092 Cape Hill/Barrett Street roundabout; ee. B4129 Rotton Park Road; ff. A4040 City Road; gg. A4040 Winson Green Road/B4126 Icknield Port Road; hh. B4135 Heath Street; and ii. Western entry to the Spring Hill roundabout with the A4540 Icknield Street/Ladywood Middleway/B4135 Summer Hill Road.
Schedule 1 - Section 21
Current states
A461 from the northwestern Walsall Borough boundary just south of Barracks Lane/Cartersfield Lane to the Cinder Bank Island roundabout with the A459 Cinder Bank/B4177 Blower’s Green Road/Peartree Lane (see paragraph 19(j)), including its junctions with—
(a) A452 Chester Road (see paragraph 13(r)); (b) B4152 Brownhills Road/Salters Road; (c) B4154 Pelsall Lane/Daw End Lane/Station Road/Springfields; (d) A454 Mellish Road/Buchanan Avenue roundabout (see paragraph 15(i)); (e) A4148 Littleton Street/Broadway/Lower Rushall Street (begins again on southwest side of A4148 Walsall ring road); (f) M6 junction 9 roundabout; (g) A462 Trouse Lane/Upper High Street roundabout; (h) A4196 Holyhead Road roundabout; (i) Steel roundabout with the A41 Black Country New Road/Hallens Drive ((see paragraph 4(n). (begins again at the Navigation roundabout with the A41 Black Country New Road/George Henry Road (see paragraph 4(p)))); (j) B4517 New Road/Market Place roundabout; (k) B4166 Tame Road; (l) B4163 Lower Church Lane; (m) A457 Sedgley Road East (see paragraph 17(c)); (n) A4123 Birmingham New Road; (o) Castle Gate Island roundabout with the A459 Castle Hill/A4037 Tipton Road/Castlegate Way (see paragraph 19(j)); (p) Flood Street Island roundabout with Flood Street/Blackacre Road; and (q) Cinder Bank Island roundabout with the A459 Cinder Bank/B4177 Blower’s Green Road/Peartree Lane (see paragraph 19(j)).
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Amendment required (change to description)
A461 from the northwestern Walsall Borough boundary just south of Barracks Lane/Cartersfield Lane to the junction of the A461 Stourbridge Road/A4036 Highgate Road, including its junctions with—
Add lines below to the listing
(r) A461 Duncan Edwards Way; (s) Scotts Green roundabout with A4101 Stourbridge Road/A4101 Kingswinford Road/ Scotts Green Close; and (t) A461 Stourbridge Road.
Add New Section - Insert (A4030)
A4030 from its junction with the A456 Hagley Road West to its junction with the A457 Tollhouse Way, including its junctions with – a. Poplar Road; b. Anderson Road; c. Sherwood Road; d. St. Mary’s Road; e. Rutland Road; f. Sandon Road/B4182 Three Shires Oak Road; g. Ethel Street; h. Merrival Road; i. Belmont Road; j. Rawlings Road; k. Dunsford Road; l. Reginald Road; m. Richmond Road; n. Beakes Road; o. Linden Road; p. Talbot Road; q. Bearwood Road; r. Marlborough Road; s. Dawson Street; t. Vince Street; u. Pearman Road; v. Wellington Road; w. Capethorn Road; x. Church Road; y. Grange Road; z. Millpool Way; aa. Pens Close; bb. Norma Rose Close; cc. Watery Lane; dd. Firs Lane; ee. Victoria Avenue; ff. Brailsford Drive;
120 gg. Coopers Lane/Crocketts Lane; hh. Piddock Road; ii. Regent Street; and jj. Roslyn Close.
New Section - Insert (A4092)
A4092 from its junction with the B4125 to its junction with the A457 Grove Lane/Cape Hill/Barrett Street roundabout, including its junctions with – a. B4136 Windmill Lane; b. Salisbury Road; c. Rosebery Road; d. Durban Road; e. Montague Road; f. Crown Street; and g. Ragland Road.
Schedule 1 - Section 36
Currently states
A4101 from its junction with the A449 Kidderminster Road (see paragraph 12(p)) to the Scotts Green Island roundabout with the A461 Duncan Edwards Way/Stourbridge Road/Scotts Green Close, including its junctions with—
(a) B4178 Swindon Road/Cot Lane; (b) A491 Moss Grove/Market Street (see paragraph 24(b)); (c) B4179 Commonside; (d) Pensnett Road roundabout; and (e) Scotts Green Island roundabout with the A461 Duncan Edwards Way/Stourbridge Road/Scotts Green Close
Amendment required (highlighted in yellow) – change origin and amend line ‘a’
A4101 from the Dudley boundary (see paragraph 12(p).) to the Scotts Green Island roundabout with the A461 Duncan Edwards Way/Stourbridge Road/Scotts Green Close, including its junctions with:
a. A449 Kidderminster Road; b. B4178 Swindon Road/Cot Lane; c. A491 Moss Grove/Market Street (see paragraph 24(b).); d. B4179 Commonside; e. Pensnett Road roundabout; and f. Scotts Green Island roundabout with the A461 Duncan Edwards Way/Stourbridge Road/Scotts Green Close.
New Section - Insert (A4167)
A4167 from its junction with the A34 Stratford Road, to its junction with the A4540 Haden Circus, including its junction with - a. Stoney Lane; b. Queen Street;
121 c. Mole Street; d. Ladypool Road; e. Kyrwicks Lane; f. Woodfield Road; and g. Moseley Road
New Section - Insert (B4125)
B4125 from its junction with the A4030 to its junction with the A4092 Waterloo Road/Cape Hill, including its junctions with - a. Edgbaston Road; b. Corbett Street; and c. Claremont Road.
New Section – Insert (B4138)
B4138 from its junction with the A453 College Road to its junction with the A454 Walsall Road, including its junctions with – a Elmbridge Road; b Crossway Lane c Tysoe Road d Greenholm Road e Goodway Road/Melverley Grove junction; f Blenheim Way; g Westward Close; h Hawthorn Road/Dyas Road junction; i Hotspur Road; j Cranbourne Road; k Heather Croft; l Old Oscott Hill; m Harringay Road; n Dunedin Road; o B4149 Kings Road/Kettlehouse Road/Rough Road roundabout; p Cooksey Lane/Norbury Road junction; q Beacon Road; r Endhill Road; s George Frederick Road; t Bakers Lane junction; u Sutton Oak Road junction; v Sutton Oak Road/A452 Chester Road North junction w A452/A4101 roundabout; x Oakmount Road; y Ryknild Drive; z Millcroft Road; aa Thornhill Park; bb Manor Road; cc Foley Road East; dd Horsley Road; ee Burnett Road; ff B4151 Streetly Lane/hardwick Road/Roman Road roundabout; gg St. Margaret’s
122 hh Highbury Road; ii Wayside Drive; jj Endwood Drive; kk Woodstock Drive; ll Park Drive;
New Section - Insert B4145
B4145 from its junction with the A41 Warwick Road roundabout to its junction with the A45 Poets Corner roundabout, including its junctions with – a. Fraser Road; b. Barrows Road; c. Gough Road; d. Ansell Road; e. Hangleton Drive; f. Benton Road; g. Walford Road; h. Sydenham Road; i. Armoury Road; and j. Anderton Road
New Section - Insert B4146
B4146 from its junction with the A4040 Stockfield Road to its junction with the A41 Warwick Road, including its junctions with - a. Mansfield Road b. Wynford Road c. Augusta Road d. Francis Road e. Langworth Avenue f. Florence Road g. Beeches Avenue h. Cottesbrook Road i. Douglas Road/Elmdon Road j. Malvern Road k. Alexander Road l. The Avenue m. Sherbourne Drive n. Oxford Road/Station Road/Sherbourne Road
New Section - Insert B4148
B4148 Kingsbury Road from its junction with the A452 Chester Road roundabout to its junction with the A5127, including its junctions with – a. Padstow Road; b. Eaton Wood/Egerton Road; c. Pype Hayes Road/Sorrel Grove;
123 d. Paget Road/Burcote Road; e. Holly Lane roundabout; f. Bracken Road; g. Tolworth Hall Road; h. Birches Green Road; i. Whitminster Avenue; j. Firtree Road; k. Spring Lane; l. Ardenleigh Way; m. Eagle Gardens; n. Bromford Lane; o. Arton Croft; p. Ullrik Green; q. Wood End Lane; r. Kingsbury Road; s. Lyndhurst Road; t. Kingsmere Close; u. Marshfield Gardens; and v. Wheelwright Road.
New Section - Insert B4179
B4179 from its junction with the A4101 to its junction with A461 Ventura Way/Level Street, including its junctions with – a. Bradley Street; b. Victoria Street; c. Broad Street/Tiled House Lane d. Birbeck Place; e. Queen Street; f. Blewitt Street; g. Bromley Lane; h. Bryce Road; i. Wallows Road; j. Kerry Close; k. Pensnett Road; l. Hickman Road; m. Pensnett Road; n. B4180 High Street; o. B4180 John Street; p. Bent Street/Adelaide Street; q. Victoria Street; r. A461 Dudley Road/High Street; and s. A461 Ventura Way.
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