Please ask for: Laura Scholes Telephone: 01482 613410 Fax: 01482 614804 Email: [email protected] Text phone: 01482 300349 Date: Friday, 13 November 2020
Dear Sir/Madam,
Cabinet
The next meeting of the Cabinet will be held at 09:30 on Monday, 23 November 2020 in Council Chamber .
The Agenda for the meeting is attached and reports are enclosed where relevant.
Please Note: It is likely that the public, (including the Press) will be excluded from the meeting during discussions of exempt items since they involve the possible disclosure of exempt information as describe in Schedule 12A of the Local Government Act 1972.
Yours faithfully,
Senior Democratic Services Officer for the Town Clerk
Town Clerk Services, Hull City Council, The Guildhall, Alfred Gelder Street, Hull, HU1 2AA www.hullcc.gov.uk Tel: 01482 300300
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Cabinet
To: Membership: Councillors Black, Brady, Clark, Craker, Hale, Harrison, Lunn, Pantelakis, Thompson M, Webster
For Information: Leader of the Liberal Democrat Group Leader of the Conservative and Unionist Group Councillor Chaytor, Chair of Overview and Scrutiny Management Committee
Officers: Matt Jukes, Chief Executive Niki Clemo, Director of Children’s, Young people and Family Services Julia Weldon, Director of Public Health and Adult Services Mark Jones, Director of Regeneration Ian Anderson, Director of Legal Services and Partnerships David Bell, Director of Finance and Transformation Laura Scholes, Senior Democratic Services officer (x4 + x6 Public Sets)
Public Sets: Guildhall Reception (Public Set) Reference Library (Public Set)
Please note that due to the current public health situation in relation to the COVID-19 outbreak and in accordance with the Coronavirus Act (2020) s. 78 and the subsequent Local Authorities and Police and Crime Panels (Coronavirus) (Flexibility of Local Authority and Police and Crime Panel Meetings) (England and Wales) Regulations (2020) this meeting will be available to view online here: http://www.hullcc.nucast.live/
Elected Members, Officers and members of the public, where they wish to make representations, who will be attending this meeting remotely will be provided with joining instructions separately.
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Cabinet 09:30 on Monday, 23 November 2020
Council Chamber
A G E N D A PROCEDURAL ITEMS
1 Apologies To receive apologies for those Members who are unable to attend the meeting.
2 Declarations of Interest To remind Members of the need to record the existence and nature of any Personal and Discloseable Pecuniary interest in items on the agenda, in accordance with the Member Code of Conduct.
(Members Code of Conduct - Part D1 of the Constitution)
3 Minutes of the Meeting held on 26th October 2020 7 - 24 To approve the minutes as a true and correct record.
4 Public Questions There will be a period of up to 15 minutes during which members of the Cabinet will answer questions put by members of the public on matters of policy or decisions normally made by the Cabinet. Any person or organisation wishing to put a question should contact Laura Scholes, Senior Democratic Services Officer at the Guildhall for guidance on the procedure. As the agenda for the meeting is to be considered under the Council's formal committee procedure, rather than as a public forum, the public will not be able to participate in the Cabinet's discussions on the items on the agenda that follow below.
NON-EXEMPT ITEMS
Key Decisions
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5 Public Consultation on the Draft & Updated Old Town 25 - 102 Conservation Area Character Appraisal and the Draft Old Town Conservation Area Management Plan This report sets out for public consultation a draft and updated character appraisal for the Old Town conservation area, along with a draft management plan.
6 Hull Ice Arena 103 - 112 This report sets out details of a package of essential repairs that are needed to Hull Ice Arena in order that it can re-open in 2021/22. The report considers the strategic importance of the ice arena as a leisure attraction in the City and explains why the repairs are necessary, the costs and the timetable for carrying out the work.
7 Corporate Parenting Strategy 113 - 138 This report set out the proposed draft Corporate Parenting Strategy in order to provide a renewed focus upon Corporate Parenting across the Council.
8 Merger of the Coroners Service 139 - 170 This report seeks approval to pursue the merger of the current Coroners Service area of Hull and the East Riding, with the areas North Lincolnshire and North East Lincolnshire. The report also seeks approval to pursue the proposal of a new 'Humberside' Coroners Service with the Ministry of Justice, aligning to the Chief Coroners Guidance relating to Mergers of Coroner Areas.
Non-Key Decisions
9 2020/21 Capital Monitoring - Second Formal Report 171 - 200 This report provides an updated overview of progress against budget and planned activity for the 2020/21 capital programme.
10 Treasury Management Strategy Statement and Annual 201 - 238 Investment Strategy – Mid Year Review Report 2020/21 This report provides an update on Treasury Management activity and performance in the first half of the financial ear 2020/21, as required by the Council's Treasury Management Policy Statement .
EXEMPT ITEMS
Key Decisions
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11 No Exempt Items THERE ARE NO EXEMPT ITEMS ON THIS AGENDA
Non-Key Decisions
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Page 6 of 238 Cabinet
26th October 2020
PRESENT:-
Councillors S. Brady (Chair), D. R. Hale (Deputy Chair), J. Black, P. Clark (until minute 178), D. Craker, A. Harrison (except minute 179), G. Lunn, R. Pantelakis, M. Thompson and P. Webster.
IN ATTENDANCE:- D. Bell (Director of Finance and Transformation), M. Jones (Director of Regeneration), I. Anderson (Director of Legal Services and Partnerships) and L. Scholes (Senior Democratic Services Officer).
M. Budd (Climate Change Manager) – minute 174 N. Daynes (Head of Adults Commissioning and Procurement) – minute 175-178
APOLOGIES:- None.
Minute No. Description/Decision Action By/Deadline PROCEDURAL ITEMS 170 DECLARATIONS OF INTEREST
No declarations of interest were made in respect of the items that follow below.
171 MINUTES OF THE MEETING HELD ON MONDAY, 28th SEPTEMBER 2020
Agreed – that the minutes of the meeting held on Monday, 28 th September, 2020, be taken as read and correctly recorded and be signed by the Chair.
172 PUBLIC QUESTIONS
No public questions were received.
NON-EXEMPT ITEMS Key Decisions 173 MEDIUM TERM FINANCIAL PLAN – UPDATE REPORT
The Director of Finance and Transformation submitted a report which set out the latest expectations informing the
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Medium Term Financial Plan (MTFP) and sought approval to launch consultation on budget proposals relating to 2021/22.
The officer reported that an additional £8.7million had been allocated to the Council from the Government and a further allocation may be allocated to cover loss of income, following this it was expected that the Council would be close to a balanced budget for this financial year.
The comments of the Finance and Value for Money Overview and Scrutiny Commission when this matter was considered, were submitted for consideration, and were detailed at minute 181.
Members discussed the comments from the Finance and Value for Money Overview and Scrutiny Commission and discussed the role of the Commission in scrutinising the administration’s proposals. Members were keen to have a series of informal budget discussions for Cabinet members. The current financial situation was changing rapidly and Members wanted more clarity on how much of it related to COVID and how much was existing problems in Adults Social Care and Children’s Services. There needed to be some discussion around the savings proposals and the difference between the officer proposals included in the report and those that were politically sought.
Members also discussed confusion over the current situation; the £1.6million recently allocated by the Arts Council and the expectation that there would be a reduced income level for the following financial year. There needed to be a significant discussion about the pressures by department, what funding had been received; the different scenarios for the following year and what savings might need to be identified.
Members also commented on the existing structural deficit and the need to address this as well as the in-year pressures. The officer explained that the report highlighted a pressure of £11million for the current year, between it being written and the meeting, £8.7million had been allocated from the Government and £1.6 from the Arts Council to HCAL and there was also another Department of Culture, Media and Sport scheme being discussed which would recover some of the losses of income in culture, this meant that the Council expected to achieve a balanced budget in the current year without having to use much of the Council’s reserves. The
Page 8 of 238 existing structural deficit would not disappear without taking some savings action and the ongoing COVID impact needed to be considered. The current changeable situation was unlikely to change for a number of months.
Members also discussed the need for savings to be discussed thoroughly with the administration using a process that enabled a full discussion of the issues and exploration of all potential savings. Members also wished to see more in depth detail of the COVID costings and whether there would be an option to capitalise additional costs. The officer confirmed that the Government was prepared to negotiate with authorities for bespoke solutions, this was likely to be a capitalisation. Once the spending review was complete and the settlement for the next financial year was known the Government would only then revisit the need for capitalisation. As members had discussed there would be a requirement to make some savings and the discussions to identify these needed to start with a planned decision no earlier than January 2021.
Members also commented that they appreciated the work of the Director and the finance team in dealing with the issues over the pandemic.
Agreed –
(a) That Cabinet notes the updated MTFP projections (a-d) Director of at section 6 and the significant financial Finance and uncertainty faced by the Council . Transformation
(b) That Cabinet approves the launch of consultation on the proposals set out in Appendix A.
(c) That Cabinet notes the forecast reserves position and the significant financial risks faced by the Council.
(d) That Cabinet notes that reports regarding the detail of the 2021/22 Capital Programme, General Fund Revenue Budget, and Housing Revenue Account, are presented to Cabinet in December, or before if circumstances require.
Reasons for recommendation
• The Council needs to ensure that it has an up to date and realistic plan for how it is going to
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manage its finances in the medium term. That plan includes within it the resources that are available to provide or commission services, and also indicates the ongoing or new actions that are needed to ensure that financial viability is maintained.
174 2030 CARBON NEUTRAL HULL CAPITAL PROGRAMME DELEGATED AUTHORITY
The Director of Regeneration submitted a report which sought approval for the work necessary to procure services and works to support delivery of the 2030 Carbon Neutral Strategy across six capital programme projects included within the Capital Programme 2020/21 to 2022/23.
The comments of the Infrastructure and Energy Overview and Scrutiny Commission when this matter was considered, were submitted for consideration, and were detailed at minute 181.
Members discussed this being a huge investment on the journey to carbon neutrality, it included changing the way people travel, how electricity was generated and the potential to manufacture energy.
Agreed –
(a) That Cabinet authorise the procurement of staged (a) Director of contracts for the design and subsequent Legal Services implementation of the three projects included in and Partnerships the capital programme to facilitate energy generation through solar and wind power applying the most appropriate contractual route determined in consultation with the Director of Legal Services and Partnerships and the Portfolio Holder for Neighbourhoods Communities and the Environment and the Deputy Leader within the available budget or such budget as may be expanded by external funding and confirmed through quarterly reports to Cabinet as part of the capital programme.
(b) That a report be brought back to Cabinet prior to (b) Director of commitment to implementation of the projects for Regeneration final authorisation to proceed.
(c) That Cabinet approve the commissioning of a (c) Director of contract for the design and implementation of a Legal Services scheme to facilitate the electrification of the Hull and Partnerships
Page 10 of 238 Interchange Bus Electrification, applying the most appropriate contractual route determined in consultation with the Director of Legal Services and Partnerships, but that the authorisation of progression of the scheme to implementation be subject to the agreement of contractual terms with bus operators that are assessed by the Director of Legal Services and Partnerships as legally acceptable, and subsequently approved by a decision record of the Deputy Leader.
(d) That Cabinet authorise the commitment of (d-f) Director of identified capital funds through the Council’s Regeneration existing contractual arrangements to facilitate the expansion of the city electric vehicle charging infrastructure on a targeted basis to support the transition of the Council fleet to electric vehicle use.
(e) That Cabinet authorise entry into an agreement with Transpennine Express to facilitate the provision of electric vehicle charge points at Hull Railway Station, subject to a cost sharing agreement to recover costs incurred linked to the Council match funding.
(f) That the responsibility for the strategic oversite of the Programme is delegated to the Director of Regeneration.
(g) That the Director of Regeneration, in consultation (g) Director of with the Director of Finance and Portfolio Holder Regeneration/ for Economic Investment, Regeneration and Director of Planning and Portfolio Holder Neighbourhoods, Finance Communities and Environment is authorised to submit bids for additional funding to support any of the schemes.
(h) That authority to invite tenders and award professional services and contracts for delivery of (h) Assistant these schemes is delegated to the Assistant Director Major Director Major Projects & Infrastructure in Projects & consultation with the Director of Legal Services Infrastructure/ and Partnerships, Portfolio Holder for Economic Director of Legal Investment, Regeneration and Planning, Land Services and and Property and Portfolio Holder Partnerships Neighbourhoods, Communities and Environment subject to such tenders providing Value for Money.
(i) That the procurement of all professional services
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and construction/civil engineering contracts required to deliver the schemes in Appendix 1 shall be on the basis of 60% price/ 40% quality, which shall include an element of social value and shall be procured through an existing public sector framework contract, if suitable, or through an open tender or such other procurement route as shall be selected by the Director of Legal Services and Partnerships.
Reasons for recommendation
• On the 27 th July 2020 Cabinet approved the 2030 Carbon Neutral Hull Strategy which set out the challenges and actions required for the Council to meet its commitment under the Climate Emergency Declaration of Council on the 21 st March 2019.
• The recommendations enable the Council to begin to reduce its carbon emissions through renewable energy generation and energy storage within its own property and asset portfolio and transport infrastructure for the decarbonisation of transport within the Councils fleet, commuter traffic and public transport.
• The authorisations enable the Council to move swiftly from assessment to delivery while retaining clear oversight of the projects’ budgetary and reputational implications.
175 AUTHORISATION TO SEEK COMPETITIVE TENDERS FOR THE PROVISION OF THE DELIVERY OF ENERGY PERFORMANCE CERTIFICATES (EPCS), LOFT AND CAVITY WALL INSULATION AND HEATING SYSTEMS IN DOMESTIC DWELLINGS
The Director of Legal Services and Partnerships submitted a report which sought approval to undertake the procurement of services to be administered by the Warm Homes Team.
The comments of the Finance and Value for Money Overview and Scrutiny Commission when this matter was considered, were submitted for consideration, and were detailed at minute 181.
Members discussed this being a significant contributor
Page 12 of 238 towards the climate change reduction targets and preventing fuel poverty. Members also commented on the use of extensions to the contracts once the initial period had expired. The officer explained that the delegation to approve the extension was dependent on the contract performance, available funding and the context at the time, this was also used as encouragement for the contractor to deliver to the Council’s satisfaction.
Agreed –
(a) That the Director of Legal Services & Partnerships is authorised to invite tenders for (a- d) Director of three separate term service contracts: Legal Services • Energy Performance Certificates; and Partnerships • Loft and Cavity Wall Insulation; • Heating Systems Installations.
(b) That all three contracts be for a period of 3 years, with an option to extend each contract for a period(s) of up to a maximum of 12 months, each exercisable independently of the others.
(c) That the evaluation criteria for the award of each contract be 50% Quality (with 10% of this being for Social Value only), 50% Price.
(d) That all three contracts are tendered using the open procedure as NEC3 Term Service Contracts on such terms as the Director of Legal Services & Partnerships considers appropriate in consultation with the Assistant Director Neighbourhoods & Housing.
(e) That authority be delegated to the Assistant Director Neighbourhoods and Housing, in (e) Assistant consultation with the Town Clerk and the Portfolio Director Holder, to award the contracts to the most Neighbourhoods economically advantageous tenders and agree at and Housing / their discretion to contract extensions set out at Director of Legal 2.2 above, subject to satisfactory performance by Services and the suppliers. Partnerships
Reasons for recommendation
• The services to be procured are essential for the delivery requirements of Hull’s Affordable Warmth Strategy and Action Plan approved by Cabinet November 2018 and to align with the vision “To reduce fuel poverty and to help residents of Hull
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to live in a warm, healthy and energy efficient home.”
• These contracts have not been procured by the Authority to date as this was done previously by the National Warm Zone Team. This enables the opportunity to fully engage the market via an Open Tender procedure.
176 DIGITISATION OF THE COUNCIL’S CCTV INFRASTRUCTURE
The Director of Legal Services and Partnerships submitted a report which sought authorisation of the commissioning of the digitisation of the Council’s CCTV Control Room infrastructure and the transition to energy efficient hardware stored in a third-party data centre.
The comments of the Peoples and Communities Overview and Scrutiny Commission when this matter was considered, were submitted for consideration, and were detailed at minute 181.
Members discussed the level of savings this would achieve on energy consumption and the ownership of the recording devices, ducting and other equipment. The officer confirmed that there was a net saving of £40,000, he also confirmed that the recording devices belonged to the Council, whereas the ducting did not. There was a small network in the City Centre and up Beverley Road which belonged to the Council however the majority of cameras were located outside of it.
Members also discussed whether there were any plans to look at the siting of CCTV cameras due to the nature of the changes in the City since the network was created. The officer confirmed that this would be part of the second phase, initially the infrastructure needed to be established to enable anything to join from any location, currently there was a restriction over cameras only being able to be connected from where the fibres were located. The intention was to enable access to digital cameras via mobile, 5G or wireless cameras which would increase the ability to join them to the network and look at the optimum set up for the Council’s infrastructure.
Agreed –
(a) To authorise the procurement of the Council’s (a) Director of requirements for digitisation of the Council’s Legal Services
Page 14 of 238 CCTV Control Room and subsequent and Partnerships maintenance through the ESPO Security and Surveillance equipment and services framework contract.
(b) That authority to award contracts be delegated to (b) Director of the Director of Legal Services and Partnerships in Legal Services consultation with the Assistant Director (Street and Partnerships/ Scene) and the Portfolio Holder for Operational Assistant Director Services subject to such contracts being within (Street Scene) the available capital and revenue budgets.
(c) That the procurement of all contracts shall include (c) Director of social value and be procured through an existing Legal Services public sector framework contract. and Partnerships
Reasons for recommendation
• To ensure that the Council’s CCTV infrastructure is able to be integrated and updated through structures that meet the Information Commissioner’s Surveillance Camera Code of Practice requirements.
• To support third party attestation that the Council meets the Information Commissioner’s required standards.
• To contribute toward the Council’s aim to achieve carbon neutrality by 2030.
• To improve the arrangements through which the Council provides managed third party access to CCTV by using a hybrid cloud infrastructure.
177 PROCUREMENT OF A SUPPLY OF FOOD INGREDIENTS CONTRACT
The Assistant Director of Property and Assets submitted a report which sought authorisation to procure a single managed service contract for the supply of all food ingredients commencing from 1 st January 2021 for an initial period of 2 years with the option to extend for up to a further two, 1 year periods.
The comments of the Finance and Value for Money Overview and Scrutiny Commission when this matter was considered, were submitted for consideration, and were detailed at minute 181.
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Members discussed the need to vary the wording of the reports to reflect the changing situation following Brexit in particular that the EU legislation will be adopted by UK legislation.
Agreed –
(a) That Cabinet approve the tendering of a single managed service provider for the supply of all (a -e) Assistant food ingredients as outlined in option 1 (at 7.1) to Director of commence 1st January 2021 for a period of 2 Property and years with the option to extend for up to a further Assets/ Director two 1 year periods. of Legal Services and Partnerships (b) That tenders are sought through a further competition exercise undertaken under the terms of the YPO’s DPS 985, UK Food Deal .
(c) That in line with DPS guidelines, the contract evaluation criteria to be: a. 50% Price b. 40% Quality c. 10% Social Value
(d) That the Assistant Director for Property & Assets, the Director of Legal Services and Partnerships in consultation with the Portfolio Holder for Economic Investment, Regeneration and Planning, Land and Property, be authorised to enter into a contract with the most economically advantageous bidder.
(e) That delegated authority be given to the Assistant Director for Property & Assets, the Director of Legal Services and Partnerships in consultation with Portfolio Holder for Economic Investment, Regeneration and Planning, Land and Property, be authorised to exercise any option to extension, subject to satisfactory performance and ongoing need.
Reasons for recommendation
• Not to procure a new contract would leave the Council with no contract from 1 st January 2021 and be in breach of EU procurement legislation and the Councils CPR’s.
• Best value can only be tested using a tender process in line with EU public procurement
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• Procuring a managed service addresses Environmental Value by ensuring that the food miles are limited as the supply manager is able to organise the collection of food from the sub- contract chain in a cost efficient and environmentally responsible manner.
• The EU requirement to tender contracts in lots unless clear reasons are provided for not so doing has been addressed by the organisation of the tender to facilitate the engagement of the Council in the assessment of sub-contract packages which are let in keeping with the principles within the over-arching agreement.
• Early market engagement will ensure that the contract is let in a manner that supports the overall requirement to deliver Social Value.
178 TENDER FOR THE REPLACEMENT OF THE EDUCATION MANAGEMENT SYSTEM
The Director of Legal Services and Partnerships submitted a report which sought authorisation for a 2 year extension to the Support and Maintenance contract for the Council’s Education Management System (EMS) with Capita Business Solutions through the use of a Voluntary Ex Anti Transparency Notice (VEAT).
The comments of the Finance and Value for Money Overview and Scrutiny Commission when this matter was considered, were submitted for consideration, and were detailed at minute 181.
Agreed –
(a) The Cabinet approves, through the use of a VEAT (a) Director of notice, a 2 year extension to the Council’s existing Legal Services support and maintenance contract for the Capita and Partnerships ONE Education Management System with Capita Business Services, which is due to expire on 31/03/2021.
(b) The approval for the Assistant Director ICT & (b-d) Assistant Digital, in consultation with the Director of Legal Director ICT & Services & Partnerships to procure a 7 year Digital/ Director of contract with the option of a break clause after 5 Legal Services years within the existing annual budget of and Partnerships £160,000/annum through the RM 3821 Data and
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Applications Solutions framework contract.
(c) That the contract evaluation criteria are 60% quality, 40% price and that the Assistant Director for Digital & ICT, in consultation with the Director of Legal Services and Partnerships and the Portfolio Holder for Corporate Services, be authorised to enter into a contract with the most economically advantageous bidder.
(d) That the Assistant Director for Digital & ICT, in consultation with the Director of Legal Services and Partnerships and the Portfolio Holder for Corporate Services, be authorised to cease the contract after a period, subject to satisfactory contract performance and being satisfied that the contract continues to deliver best value, following completion of the initial 7 year term.
Reasons for recommendation
• The current Support and Maintenance agreement with Capita Business Services is due to expire on the 31/03/2021, after which the EMS will no longer be supported and the Council does not have the internal resource or expertise to cover the required level of support, potentially leading to the Council failing on its statutory obligations.
• Since the renewal of this agreement 5 years ago, new suppliers have entered the market meaning that Capita are no longer the only provider and thus allowing the contract to go through the appropriate procurement route in line with the 2015 Public Contract Regulations
• The current contract with Capita Business Services has not been subjected to a compliant tender process in over 10 years and thus may not currently represent best value or utilise the most recent technologies for HCC.
• The current EMS solution may no longer meet some of the department’s functional requirements from a technical, UI and integration perspective due to the Council bolting on services to meet its requirements and limited capacity to integrate easily with other services and systems.
• The contract length of 10 years is recommended
Page 18 of 238 to ensure that the successful supplier will be able to train, implement and support the EMS and ensure that its users and the Council gain best value. This is required due to the specialised requirements of the system and the scale of the specifications which would not be cost effective to re tender in 5 years.
• It is therefore essential that procurement is undertaken via a compliant process in accordance with the Public Contract Regulations 2015, so that an EMS can continue to support the ongoing operation of key Council services.
Non-Key Decisions 179 CONSULTATION ON PLANNING FOR THE FUTURE WHITE PAPER
The Director of Regeneration submitted a report which sets out the Council's proposed response to the current Government consultation on the 'Planning for the Future' White Paper which seeks views on proposed reforms of the planning system in England. The intention is to replace the current planning system with a new one.
The comments of the Planning Committee when this matter was considered, were submitted for consideration, and were detailed at minute 181.
Members discussed the Government’s proposals and raised concerns that the removal of this local power would impact on the turnout at local elections they were punishing Council’s such as Hull which operated an effective planning system for the actions of those Councils which have not determined those difficult applications with a ‘Not In My Back Yard’ approach, these proposals removed all public input into the process.
Members queried whether this would impact on those future applications such as the East Carr development, the officer confirmed that this was included in the current Local Plan so it was unlikely to be affected, however without an effective local determination framework for that area which is what the current consultation related to, if these proposals were in place the authority’s ability to defend against any applications it did not agree to would be weakened.
Members also discussed what the point of devolution was if there were no major powers such as planning
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within the devolved powers.
At the invitation of the Leader, Councillor Chaytor, a member of the Planning Committee was invited to speak. He highlighted that Planning Committee had discussed that rather than a full reform of the system, the Government should look to those authorities such as Hull which were executing the system properly. The Planning Committee had recently agreed that a review of the Local Plan would be a standard item on the agenda to enable the Committee to support and develop the City.
Moved by Councillor Brady and seconded by Councillor Hale –
(a) That Cabinet consider the implications of the proposed changes to the planning system as set (a-b) Director of out in this report and the draft responses at Regeneration Appendix 1 of this report, together with the response from Planning Committee, and that a copy of the responses set out at Appendix 1, and any further comments made by Cabinet, be sent to MHCLG.
(b) That the covering letter of the response be signed by all political groups.
Motion carried.
Reasons for recommendation
• The recommendations provide a balanced response to the matters raised in the consultation with a particular emphasis on how they would impact on plan making, decision taking and delivery in Hull.
180 REVENUE BUDGET MONITORING 2020 -21 – SECOND FORMAL REPORT
The Director of Finance and Transformation submitted a report which set out the General Fund revenue Budget monitoring position and also those for the Dedicated Schools Grant (DSG) and the Housing Revenue Account (HRA). The report also set out the very significant estimated financial impact of the COVID crisis, the implications of which are discussed in the MTFP report.
The comments of the Finance and Value for Money Overview and Scrutiny Commission when this matter
Page 20 of 238 was considered, were submitted for consideration, and were detailed at minute 181.
Members discussed the figures around the residential care placements and the need for them to match the evidence. The officer explained that while the report suggested that there were presently 92 less permanent residential placements against predicted levels, over the course of the full year this did not necessarily translate into a cost saving against budget assumptions..
Agreed –
(a) That members note the overspend relating to the (a-c) Director of Social Care budgets, the savings to be delivered Finance and in year of £1.75M and the impact of the COVID 19 Transformation response in terms of projected additional costs and loss of income (see Appendix C for details) which currently suggests a year end deficit of £11M.
(b) That members note the forecast in year deficit of £0.392m for the DSG, and actions/funding required to bring the cumulative position into balance in the medium term.
(c) That members note the forecast of an in-year deficit of £0.144m for the HRA.
Reasons for recommendation
• The Council needs to ensure that it is managing its resources effectively while ensuring that the public receive the benefits from the functions that it provides itself or commissions from other service providers.
181 COMMENTS OF COMMITTEES AND COMMISSIONS
The Senior Democratic Services Officer submitted comments in relation to minutes 173-180 and 183 from the Council’s committees and scrutiny commissions that had considered the reports following the circulation of the agenda for this meeting.
Agreed – That the comments be noted.
182 EXCLUSION OF THE PRESS AND PUBLIC
Agreed – that, in accordance with the provisions of
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Section 100(A)(4) of the Local Government Act, 1972, the public (including the Press) be excluded from the meeting for the following items of business, minute 183, on the grounds that it involves the likely disclosure of exempt information as defined in paragraph 3 of Part 1 of Schedule 12A of the Act information relating to the financial and business affairs of any particular person (including the authority holding that information an individual and the public interest in maintaining the exemption outweighs the public interest in disclosing the information if not kept confidential the content of the report could adversely impact on future negotiations regarding the disposal of corporate assets and directly affect relationships with business tenants.
EXEMPT ITEMS Key Decisions 183 PROGRESS REPORT ON PROPERTY DISPOSALS
The Assistant Director of Property and Assets submitted a report which set out the disposal of property assets, including those which have been declared surplus to operational requirements and those which have been selected for disposal in support of the implementation of policy to reshape the commercial portfolio. The report summarised the progress to date and planned activity going forwards. The report also referenced a number of new assets which have been identified for disposal and sought authority to agree terms of disposal.
The comments of the Overview and Scrutiny Management Committee when this matter was considered, were submitted for consideration, and were detailed at minute 181.
Members discussed the consultation with area committees.
Moved by Councillor Brady and seconded by Councillor Hale –
(a) That the progress made be noted; (a-c) Assistant (b) That the Assistant Director, Property & Assets be Director of authorised to approve terms for the disposal of Property and those assets highlighted in Appendices 3 and 4, Assets and (c) That the schedule of disposals be sent to the relevant Area Teams in order to brief Ward Members
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Motion carried.
Reasons for recommendation
• The programme of disposals of surplus and commercial property assets is an important part of the Council’s financial strategy and directly impacts on local economic development. The Cabinet wishes to monitor progress through the presentation of annual reports, and to consider the financial strategy for the investment of associated capital receipts.
Start: 9.30 a.m. Finish 10.35 a.m.
The above Executive Decisions will come into force and may be implemented on expiry of five working days after the publication of the decisions i.e. 5th November, 2020, unless called in by the Overview and Scrutiny Management Committee.
Published – 28 th October, 2020.
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Report to the Ward St Andrews & Riverside Area Committee – 11 th November 2020 Docklands Planning Committee – 17 th November 2020 Cabinet – 23 rd November 2020
Public Consultation on the Draft & Updated Old Town Conservation Area Character Appraisal and the Draft Old Town Conservation Area Management Plan
Report of the Director of Regeneration
1. Purpose of the Report and Summary
1.1 The purpose of this report is to consider for public consultation a draft and updated character appraisal for the Old Town conservation area, along with a draft management plan. The draft appraisal and management plan are attached to this report as Appendix 1 & 2.
1.2 The current Old Town appraisals comprise three separate documents. These were produced and adopted piecemeal in 1999, 2004 and 2005 and are now out of date. The revision of the documents presents an ideal opportunity to combine all three into one concise document, supported by a separate management plan.
1.3 The Constitution of Hull City Council, under Council & Executive Scheme of Delegation, does not contain an express delegation to Area Committees or the Planning Committee to consult on or adopt conservation area character appraisals and management plans.
2. Recommendations
2.1 That the Planning Committee & Riverside Area Committee support and Cabinet agree:
(a) The draft and updated Old Town Conservation Area Character Appraisal & draft Management Plan are approved for a 6-week public consultation; and (b) Following public consultation and any resulting amendments, the adoption of the Old Town Conservation Area Character Appraisal & Management Plan shall be brought back to Cabinet for approval.
This is not a key decision.
Author: Philip Hampel Status: Final Date: 13/11/2020 Page 1 of 7 Page 25 of 238
3. Reasons for Recommendations
3.1 The National Planning Policy Framework (NPPF) states that “Local planning authorities should make information about the significance of the historic environment gathered as part of plan-making or development management publicly accessible.”
3.2 The Planning (Listed Buildings & Conservation Areas) Act 1990 places on local planning authorities the duty from time to time to formulate and publish proposals for the preservation and enhancement of conservation areas and consult the public in the area in question, taking account of views expressed.
3.3 The recommendations support the ambitions of the City Plan in relation to making Hull a world-class visitor destination by seeking to demonstrate the area’s special interest (promoting greater understanding and articulation of its character), which forms a part of Hull’s unique heritage.
3.4 The objective of consultation on the draft character appraisal and management plan is to seek public feedback on the soundness of the documents and for it to support policies in the Hull Local Plan 2016 to 2032, particularly in relation to Design, Shop fronts, Local distinctiveness, Heritage considerations and City Centre Mixed Use Sites.
3.5 The Constitution of Hull City Council, under Council & Executive Scheme of Delegation, does not contain an express delegation to Area Committees or the Planning Committee to consult on or adopt conservation area character appraisals and management plans.
3.6 Cabinet agreed on 27 th July 2015 (Minute No.29) “that all future conservation area character appraisals and conservation area management plans be adopted by Cabinet.”
4. Impact on other Executive Committees (including Area Committees)
4.1 A conservation area character appraisal is essentially a planning related historic audit and description (objective analysis) of the area. The character appraisal and management plan are designed to help protect, preserve and enhance the quality of the built environment for the benefit of all, as opportunities arise and resources allow.
4.2 The Old Town conservation area falls within one ward (St Andrews and Docklands) and one area (Riverside). No other wards or areas are affected by the documents.
5. Background
5.1 The Old Town conservation area was designated by Hull City Council in 1973 and extended in 1981, 1986 and 1994. The conservation area covers 54 hectares (134 acres).
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5.2 The current Old Town appraisals comprise three separate documents covering the central & eastern part, western & northern part and southern part. These were produced and adopted piecemeal in 1999, 2004 and 2005 and are now out of date; the Old Town has seen significant change since the late C20/early C21. This change, combined with new funding initiatives (Humber LEP, Historic England’s High Street Heritage Action Zone Fund and Future High Street Fund), makes the time ripe for updating and amalgamating the character appraisals into one document (as it should be) and producing a separate management plan.
5.3 The management plan follows the same format as the ones adopted for the Beverley Road conservation area and The Avenues & Pearson Park conservation area, both of which successfully supported National Lottery Heritage Fund applications.
6. Issues for Consideration
6.1 The Planning (Listed Buildings and Conservation Areas) Act 1990 defines a conservation area as “an area of special architectural or historic interest the character or appearance of which it is desirable to preserve or enhance.” The 1990 Act also places on local planning authorities the duty from time to time to formulate and publish proposals for the preservation and enhancement of conservation areas and consult the public in the area in question, taking account of views expressed.
6.2 For the designation of conservation areas to be effective, it is important that rational and consistent judgements are made in determining their special qualities and local distinctiveness, as well as their value to the local community. Such judgements should be based on a thorough understanding of the area in its wider context, reached through a detailed appraisal of its character.
6.3 A conservation area character appraisal is essentially a historic audit and description (objective analysis) of an area. It can be used as a tool to demonstrate the area’s special interest (promoting greater understanding and articulation of its character), explanation to owners, businesses, inhabitants and other interested parties of the reasons for designation, and as an educational and informative document. When adopted, they support the development management and plan-making processes and are material to the determination of planning appeals and Secretary of State decisions.
6.4 The NPPF states that “Local planning authorities should make information about the significance of the historic environment gathered as part of plan- making or development management publicly accessible.”
6.5 The Constitution of Hull City Council, under Council & Executive Scheme of Delegation, does not contain an express delegation to Area Committees or the Planning Committee to consult on/adopt conservation area character appraisals and management plans.
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7. Options
7.1 Agree the draft Old Town conservation area character appraisal and management plan for public consultation.
7.2 Do not agree the draft Old Town conservation area character appraisal and management plan for public consultation.
7.3 The preferred option is 7.1
8. Risk Assessment
8.1 By agreeing 7.1, the Council are at this stage only agreeing to a public consultation on two draft documents. However, this is an important step in ensuring that the Old Town conservation area will have an up to date character appraisal and separate management plan, which is important for the reasons outlined in section 6 of the report.
8.2 By not agreeing to 7.1, the existing out of date and separate character appraisal (adopted in 1999, 2004 and 2005) for the Old Town conservation area will remain in force with their outdated management proposals. Such inaction could have an adverse impact on the future management of the area and on the success of future funding bids.
9. Consultation
9.1 The report seeks approval to go out for public consultation after consideration by the Riverside Area Committee, Planning Committee and Cabinet. The aforementioned meetings are also open to the public.
9.2 The documents were prepared in consultation with Development Delivery, Major Projects, Development Management, Planning Enforcement, Humber Archaeology Partnership and Streetscene (Highways & Open Spaces).
10. Comments of the Monitoring Officer (Town Clerk)
10.1 Public consultation is the next stage in the statutory process for adopting the updated character appraisal for the Old Town conservation area and draft management plan. The Council at this stage are being asked to agree to the draft documents proceeding to that public consultation.
The authority for adoption lies with cabinet.
The recommendations at paragraph 2 of this report are supported. (KG)
11. Comments of the Section 151 Officer (Director of Finance and Transformation)
11.1 The Director of Finance & Transformation notes the draft and updated Author: Philip Hampel Status: Final Date: 13/11/2020 Page 4 of 7 Page 28 of 238 character appraisal for the Old Town conservation area, and the proposed public consultation. GS
12. Comments of Assistant Director of HR & OD and compliance with the Equality Duty
12.1 There are no staffing or equality issues arising for the Council
13. Comments of Overview and Scrutiny
13.1 This report has not been subject to pre-decision scrutiny. (Ref: Sc5790) [MK]
14. Comments of the Portfolio Holder for Economic Investment, Regeneration and Planning, Land and Property
14.1 “The Old Town is rightly recognised as an outstanding area of special architectural or historic interest and the revision of the existing out of date appraisals, and provision of a management plan, is both welcome and timely. The Old Town has undergone significant change in the last 15-20 years and that process of positive change is ongoing. The production of a new character appraisal and management plan will assist in managing and protecting the special architectural and historic interest of the Old Town, in addition to supporting new funding initiatives for the revitalization of Whitefriargate and Silver Street.”
Mark Jones, Director Economic Development & Regeneration
Contact Officer: Phil Hampel, Principal Conservation Officer . Telephone No.: 612343.
Officer Interests: None
Background Documents: -
The Old Town (Central & Eastern part) Conservation Area Character Appraisal, 1999, Hull City Council; The Old Town (Western & Northern part) Conservation Area Character Appraisal, 2004, Hull City Council; The Old Town (Southern part) Conservation Area Character Appraisal, 2005, Hull City Council; The Hull City Council Constitution; National Planning Policy Framework, 2019, Dept for Communities & Local Government; The City Plan, 2013, Hull City Council; Hull Local Plan 2016 to 2032, adopted November 2017, Hull City Council; The Planning (Listed Buildings & Conservation Areas) Act 1990; and Conservation Area Appraisal, Designation & Management, 2019, Historic England Advice Note (2 nd Ed.).
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Implications Matrix
I have informed and sought advice from HR, Legal, Yes Finance, Overview and Scrutiny and the Climate Change Advisor and any other key stakeholders i.e. Portfolio Holder, relevant Ward Members etc prior to submitting this report for official comments I have considered whether this report requests a Yes decision that is outside the Budget and Policy Framework approved by Council Value for money considerations have been accounted N/A for within the report
The report is approved by the relevant City Manager Yes
I have included any procurement/commercial N/A issues/implications within the report
I have considered the potential media interest in this Will liaise as required report and liaised with the Media Team to ensure that they are briefed to respond to media interest. I have included any equalities and diversity N/A implications within the report and where necessary I have completed an Equalities Impact Assessment and the outcomes are included within the report Any Health and Safety implications are included within N/A the report Any human rights implications are included within the N/A report
Author: Philip Hampel Status: Final Date: 13/11/2020 Page 6 of 7 Page 30 of 238 I have included any community safety implications and N/A paid regard to Section 17 of the Crime and Disorder Act within the report I have liaised with the Climate Change Advisor and N/A any environmental and climate change issues/sustainability implications are included within the report I have considered the impact on air quality, carried out N/A an appropriate assessment and included any resulting actions or opportunities necessary to improve air quality in the report I have included information about how this report It supports the delivery of the local plan contributes to the City Plan/Area priorities within the which is the delivery framework for the report physical city plan projects
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Draft Old Town Conservation Area Management Plan
July 2020
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Introduction In line with guidance contained in the Historic England Advice Note 1‘Conservation Area Appraisal, Designation and Management’, 2019 this management plan sets out the way in which the Old Town conservation area will be managed. The management plan brings together local and national policies, guidance and strategies which are designed to protect, sustain, enhance and better reveal the significance of the Old Town conservation area. In addition to the above, Hull City Council will exercise its general duties under Sections 16, 66 and 72 of the Planning (Listed Buildings & Conservation Areas) Act 1990 (“The 1990 Act”):
S16 - In considering whether to grant listed building consent for any works the local planning authority or the Secretary of State shall have special regard to the desirability of preserving the building or its setting or any features of special architectural or historic interest which it possesses.
S66 ‐In considering whether to grant planning permission for development which affects a listed building or its setting, the local planning authority or, as the case may be, the Secretary of State shall have special regard to the desirability of preserving the building or its setting or any features of special architectural or historic interest which it possesses.
S72 ‐ In the exercise, with respect to any buildings or other land in a conservation area, …special attention shall be paid to the desirability of preserving or enhancing the character or appearance of that area.
The components of the management plan include:
1. Planning Restrictions, Development Management & Planning Policies
2. Enhancement & Improvement Schemes
3. Streetscene (Highways and Open Spaces) Management
4. Planning Enforcement Strategy
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1. Planning Restrictions, Development Management & Planning Policies
1.1 Because of the special nature of conservation areas, there are tighter planning controls and obligations in respect of demolition work; new development; trees; alterations, additions and extensions; and advertisements and signs.
Demolition Work
1.2 In general, the demolition of unlisted buildings and walls within a conservation area requires Planning Permission (Listed Buildings require both Planning Permission and Listed Building Consent). The main exceptions to this requirement are:
the partial demolition of an unlisted building;
small unlisted buildings of less than 115 cubic metres/4061 cubic feet content or any part of such a building, other than a pre-1925 tombstone/monument/memorial to a deceased person; unlisted walls, fences and railings less than 1m/3'3'' high where next to a public open space or highway (including a footpath or bridleway) or less than 2m/6'6'' high elsewhere; and unlisted agricultural or forestry buildings erected since 1914.
New Development 1.3 The designation of an area as a conservation area does not mean that new development may not take place within it. New development should, however, aim to preserve or enhance the character and/or appearance of a conservation area by sympathetic conversion and adaptation of existing buildings or by good design of new buildings.
Trees 1.4 Trees not covered by a Tree Preservation Order (TPO) are still afforded special protection in a conservation area. It is an offence to cut down, lop, uproot or wilfully
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destroy any tree in a conservation area without first giving 6 weeks’ notice of intent in writing to the Development Management Team at Hull City Council. The City Council will then consider the nature of the works, the health and age of the tree, and the contribution the tree makes to the character and appearance of the conservation area before deciding whether the tree should be protected by imposing a TPO on it. Certain works to trees are, however, exempt from this requirement. These include: work to dead, dying or dangerous trees (but notice is still required first);
work done by, or for, certain statutory undertakers and local highway authorities;
pruning fruit trees in accordance with good horticultural practice;
work authorised by planning permission; and
work to small trees with a trunk diameter less than 7.5cm/3'' (circumference 24cm/9.5'') when measured 1.5m/4’11” above ground level.
Alterations, Additions & Extensions (unlisted houses) 1.5 Where a house is occupied by one household (ie it is not shared by more than six people or split into flats) it is possible to make some alterations, additions and extensions without planning permission, subject to limitations (please see http://www.planningportal.gov.uk/permission/house). In addition to normal householder planning requirements, the following will always require Planning Permission in conservation areas: the cladding of any part of the exterior of a house;
side extensions;
rear extensions of more than 1 storey;
the enlargement of a house consisting of an addition or alteration to its roof, eg dormers;
buildings, enclosures, containers and pools at the side of a house;
chimneys, flues or soil and vent pipes installed on the principal elevation or a side elevation where they front a highway;
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satellite dishes installed on a chimney, wall or roof slope which faces onto, and is visible from, a highway; or on a building which exceeds 15m in height (please see http://www.hull.gov.uk/planning/planning- applications/satellite-dishes).
Alterations, Additions & Extensions (other unlisted buildings eg flats/buildings split into flats, shops and business premises) 1.6 The following operations or uses of land shall not be taken for the purposes of the below Act to involve development of the land – (a) the carrying out for the maintenance, improvement or other alteration of any building of works which – (i) affect only the interior of the building, or (ii) do not materially affect the external appearance of the building…” (The Town & Country Planning Act 1990, Part III s.55(2)). If any proposed works materially affect the external appearance of the building, and they are not classed as permitted development (please see http://www.planningportal.gov.uk/permission/responsibilities/planningpermission/permitt ed), then planning permission may be required. Such works may include replacing roofing materials with another material, and replacing doors, windows and shop fronts with ones of a different style, design and material.
Alterations, Additions & Extensions (statutory listed buildings) 1.7 “The 1990 Act” requires that no person shall execute or cause to be executed any works for the demolition of a listed building or for its alteration or extension in any manner which would affect its character as a building of special architectural or historic interest, unless the works are authorised (ie they have Listed Building Consent).
It is a criminal offence to carry out any work which affects the special character of a listed building without Listed Building Consent. Owners carrying out unauthorised works could face a heavy fine or even imprisonment. Owners may also be required to reinstate the building to its former state. In managing the Old Town conservation area, the City Council will pursue prosecutions for unauthorised works to listed buildings, if it is considered to be in the public interest to do so (The Planning (Listed Buildings &
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Conservation Areas) Act 1990 - AUTHORISATION OF WORKS AFFECTING LISTED BUILDINGS - Control of works in respect of listed buildings - Restriction on works affecting listed buildings L7.01 7).
Advertisements & Signs 1.8 In conservation areas, in addition to normal advertisement requirements (please see https://www.gov.uk/guidance/advertisements) all illuminated advertisements (except for those indicating medical supplies or services) require consent.
National Planning Policies 1.9 In managing the Old Town conservation area, the Government’s ‘National Planning Policy Framework’ (NPPF) will be applied, particularly the policies on ‘Achieving well- designed places’ and ‘Conserving and enhancing the historic environment’. At the heart of the NPPF is also a presumption in favour of sustainable development, which should be seen as a golden thread running through both plan-making and decision- taking. Keeping heritage assets in use is one of the most sustainable forms of development as it avoids the consumption of large amounts of building materials and energy and the generation of waste from the construction of replacement buildings. In managing the Old Town conservation area, there will a presumption in favour of sustainable development. https://www.gov.uk/government/publications/national-planning-policy-framework--2
Local Planning Policies
1.10 In managing the Old Town conservation area, the ‘Hull Local Plan 2016 to 2032’ will be applied, particularly the policies relating to ‘Design’, ‘Shop fronts’, Local distinctiveness’, ‘Heritage considerations’ and ‘City Centre Mixed Use Sites’.
http://www.hull.gov.uk/council-and-democracy/policies-and-plans/local-plan
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Article 4 Directions
1.11 In managing the Old Town conservation area, the City Council will monitor the impact of permitted development rights (work which does not normally require planning permission) on the character and appearance of the conservation area. Where there is firm evidence to suggest that permitted development is damaging the character or appearance of the conservation area, or is likely to take place, then the Council will consider (through authenticity surveys and public consultation) if certain permitted development rights should be withdrawn in the public interest and brought within full planning control through the use of Article 4 Directions.
Planning Guidance
1.12 In managing the Old Town conservation area, relevant Hull Supplementary Planning Documents and Action Plans will be adhered to (please see http://www.hull.gov.uk/planning/planning-applications/supplementary-planning- documents and http://www.hull.gov.uk/environment/environment/hull-biodiversity-action- plan).
Building for Life 12
1.13 In managing the Old Town conservation area, the City Council will support ‘Building for life 12’ (2018 Edition), the industry standard, endorsed by Government, for well-designed neighbourhoods, which recommends assessing the potential of any older buildings or structures for conversion, because retained buildings can become instant focal points within a development.
http://www.builtforlifehomes.org/downloads/BfL12_2018.pdf
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UK Marine Policy Statement
1.14 In managing the Old Town conservation area, the City Council will support the ‘UK Marine Policy Statement’ (2011), particularly in relation to the ‘Historic environment’ and the desirability of sustaining and enhancing the significance of heritage assets. The close relationship with the Humber estuary means that development on-shore can sometimes have a direct impact on the off-shore environment.
https://www.gov.uk/government/publications/uk-marine-policy-statement
2. Enhancement & Improvement Schemes
2.1In order to enhance the appearance of the Old Town conservation area, the City Council will undertake to support:
Guildhall Greenwich Time Ball
Restoration work to the Time Ball is being funded by a National Lottery Heritage Fund grant awarded to the Council in 2018. The project involves renovation works to the tower as well as the delivery of new interpretation materials and heritage learning opportunities. The project marks another step towards achieving the Council’s ambition to establish Hull as a world-class visitor destination by enhancing its unique heritage and culture.
Hull: Yorkshire’s Maritime City
The Council has also received grant assistance from the National Lottery Heritage Fund (2019) to deliver investments in Hull’s maritime heritage. The ‘Hull: Yorkshire’s Maritime City’ project will deliver refurbishments to the Maritime Museum, Dock Office Chambers, the North End Ship Yard, the Arctic Corsair sidewinder trawler and the Spurn Lightship. Within the Maritime Museum itself, a further 390m² of additional museum space will be created along with additional educational and visitor facilities.
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Access will also be provided to the rooftop of the building, allowing visitors to observe the Maritime Museums original architecture and to take in the superb views across the city centre. Investments in the former Dock Office Chambers, which are currently being used as office space, will result in the building housing bespoke storage systems which are environmentally controlled. Visitors, volunteers and researchers will be able to fully access the building and the top floor will be redesigned and reopened to the public.
Hull Minster
A £3.9m grant is funding regeneration works to the Minster which include the creation of a glass, bronze and stone extension. This extension will include new facilities such as exhibition space, a café and a visitor and heritage centre. There are also proposals to build an education and learning facility.
Whitefriargate
The Council secured a £1m grant from the Humber LEP in summer 2019 which is funding a grant scheme to bring unused commercial units back into use and improve shop frontages on Whitefriargate. This project is being supplemented by an additional funding bid to secure up to £1.75m from Historic England’s High Street Heritage Action Zone fund which, if secured, will convert unused floorspace at upper levels into new residential units. The Council is also seeking a further £20m from the government’s Future High Street Fund that will allow for the repurposing of the largest blocks of vacant buildings on the street. This will deliver works to diversify the failing large scale traditional retail offer and bring new leisure and cultural offers to the street which are critical to sustaining Whitefriargate over the long term.
Fruit Market
The ongoing Fruit Market regeneration programme will deliver key strategic objectives within the Hull City Plan, with the £83m investment creating and sustaining jobs in Hull and boosting the city’s economy. Developments in the area are expected to extend
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visitor journeys into the Old Town, as well as boosting visitor spend by encouraging stop offs from those journeying to and from the city’s ferry port.
A63 Castle Street
Improvement works are currently being carried out by Highways England. At the present time pedestrians must use traffic lights to cross this road which disrupts the flow of traffic. Additionally, many people choose not to cross the road for reasons such as safety concerns, which previously contributed towards caused the southern end of the Old Town Conservation Area to go into decline. To address these issues, a footbridge has been constructed over the A63 Castle Street. This will create a safe pathway between the historic core and Fruit Market and Maritime zones by providing a five metre wide pedestrian and cycle path across the road. Sloping ramps leading to the bridge will be included on the north and south sides of the A63 Castle Street to facilitate access and, after its completion, traffic on the road will be able to flow continually. The project will improve access and safety, relieve congestion and boost tourism.
River Hull and River Humber
The River Hull and Humber Frontage Flood Defences are currently being improved at a cost of £42 million. This work will reduce the risk of flood damage from the Humber to 113,000 properties.
Raingardens
As part of the Council’s ongoing public realm improvements, opportunities to install sustainable drainage, such as raingardens, will be explored. A small scheme at the corner of Quay Street and Alfred Gelder Street will be delivered in order to promote good practice in adapting to climate change, improve air quality and help mitigate flood risk.
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Repair and maintenance
2.2 In addition to the aforementioned, the Council encourages good repair and maintenance of properties. Good advice on building repair and maintenance can be found in ‘A Stitch in Time’ prepared by The Institute of Historic Building Conservation (IHBC), in association with The Society for the Protection of Ancient Buildings (SPAB).
https://www.ihbc.org.uk/stitch/Stitch%20in%20Time.pdf
3. Streetscene (Highways and Open Spaces) Management
3.1 Highway management in the conservation area is undertaken by the City Council, its partners and contractors. The primary duties and responsibilities to maintain the highway and transport network are set out in the Highways Act, Road Traffic Regulation Acts, The Traffic Management Act, and in national Codes of Practice. The City Council uses a structured asset management approach to inform, manage, maintain, improve or replace its highways and transport facilities in compliance with the legal and regulatory requirements, including roads, paths, cycle routes, parking facilities, street lighting, street furniture, trees and maps. Long term plans and programmes are set out in the Hull City Plan (http://cityplanhull.co.uk/) and the Local Transport Plan as modified by specific operational and delivery plans, performance and spending reviews, and annual business plans.
3.2 Maintenance of the public realm within the conservation area, including respect for the unique qualities of existing historic paving materials, will be managed in accordance with the Hull City Centre Public Realm Strategy (please see https://tinyurl.com/y8o3oq56
3.3 Streetscene Services also undertake the grounds maintenance and cleansing of all Council owned amenity green spaces and by agreement in some other cases, such as the old Trinity Burial Ground. The latter will be subject to extensive remodelling as part
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of the A63 Castle Street Improvement Scheme and the Council will work with Highways England and the Diocese of York to improve the open space for both this and future generations.
https://highwaysengland.co.uk/projects/a63-castle-street-improvement/
4. Planning Enforcement Strategy
4.1 Effective enforcement is essential to ensure that inappropriate development does not detract from the character and appearance of the Old Town conservation area. Breaches of planning regulation are dealt with by Planning Enforcement Officers from Hull City Council. All matters are investigated in accordance with the Planning Enforcement Customer Contract (available to view on the Council’s website (please see link below) or in hard copy from Hull City Council Planning Development Management section) which sets out the manner and timescales in which issues will be investigated.
http://www.hullcc.gov.uk/pls/portal/docs/PAGE/HOME/PLANNING/ABOUT%20PLANNI NG/ENFORCEMENT%20CUSTOMER%20CONTRACT.PDF
4.2 In addition to enforcement notices which can be used to tackle inappropriate unauthorised development and works to Listed Buildings, there are a number of other actions available which can be used to tackle identified eyesore sites. These include discontinuance notices which the council as planning authority may serve in order to remove an advertisement that is injuring the amenity of the area or is a danger to the public. Section 215 (s215) of the Town and Country Planning Act 1990 also provides a Local Planning Authority with the power, in certain circumstances, to take steps requiring land to be cleaned up when its condition adversely affects the amenity of the area. LPAs also have powers under s219 to undertake the clean-up works themselves and to recover the costs from the landowner.
4.3 In managing the Old Town conservation area, the City Council will use the above powers where it is in the public interest to do so, and the reporting of breaches in
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planning regulation by members of the public (with supporting evidence) is encouraged and welcomed by the Council.
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Draft Hull Old Town Conservation Area Character Appraisal
July 2020
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Contents
1. Summary ...... 2
2. Introduction and background ...... 3
3. General history and development ...... 5
4. Topography ...... 14
5. Archaeology ...... 14
5.5 Public archaeology ...... 15
6. Streets, public spaces and art ...... 17
6.1 Streetscape ...... 17
6.2 Street furniture and signs ...... 19
6.3 Public spaces ...... 20
6.4 Public art ...... 29
7. Greenery ...... 31
8. Buildings ...... 33
8.1 Building stock ...... 33
8.2 Traditional building materials ...... 38
8.3 Traditional roofing materials ...... 39
8.4 Traditional fenestration ...... 40
9. Character zones ...... 42
9.2 Civic zone ...... 42
9.3 Historical zone ...... 43
9.4 Fruit Market zone ...... 44
9.5 Maritime zone ...... 46
10. Negative features ...... 48
11. Landmarks and key views ...... 49
12. References ...... 51
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1. Summary 1.1 The purpose of this character appraisal is to define and record what makes the Old Town (Figure 1) worthy of its designation as an 'area of special architectural or historic interest’. This is important for providing a sound basis, defensible at appeal, for local plan policies, development management decisions and effective planning enforcement, as well as for the formulation of proposals for the conservation and enhancement of the area. The clear definition of the special interest, and therefore significance, of the conservation area will also help to reduce uncertainty for those considering investment or development within the Old Town and its setting.
Figure 1: Map of the Old Town Conservation Area
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2. Introduction and background 2.1 Conservation Areas are areas of special architectural or historic interest. Along with Hull’s many listed buildings, they represent the best of the City’s built heritage, providing Hull with its local distinctiveness and strong sense of place. To preserve this built heritage, it is essential that planning decisions are well-informed, taking the distinctive characteristics and special interest of the conservation area in question into account. To help do this, Local Planning Authorities produce character appraisals which help define this special interest.
2.2 Hull’s long and significant historical importance is best experienced in the Old Town; the core of the modern city. This conservation area covers approximately 54 hectares (133 acres) and contains 190 statutory listed buildings (Historic England, 2019c) which represents about 35% of Hull’s total number of listed buildings. Many of its unlisted buildings (non-designated heritage assets) also have historic and townscape value.
2.3 Hull is a medieval town (Figure 2) which was previously defined by the River Hull on the east and defensive walls on the north, west and south sides (Markham, n.d.) The walls were demolished in the late 18th and early 19th centuries. Evidence of developments from many historical eras, including large concentrations of Georgian, Victorian and Edwardian buildings, can be found within the Old Town. Each generation that has lived in the Old Town has left its own touchstones to the past, which paint a picture of previous lives, events and land uses and connects us with that past. The unique combination and visual interaction of historic buildings and the spaces between them is what gives the Old Town its distinctive townscape and sense of place. This document seeks to aid the positive conservation (management) of this distinctive character.
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Figure 2: Hull in the 16th century (Hull Local Studies Library, 2007)
2.4 This does not necessarily require new development to replicate the old. Whilst pastiche development will occasionally have a role, high quality design that responds to local distinctiveness will normally be preferable. New development that demonstrates a considered and sympathetic use of scale, massing, rhythm, vernacular materials and architectural references to historic built forms and patterns of development are more likely to be successful in preserving and enhancing the character of the conservation area.
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3. General history and development 3.1 The city now known as Kingston upon Hull was once a small 12th century settlement named Wyke upon Hull, owned by the Abbey of Meaux. It is believed that, due to artificial channelling, the River Hull changed its course around the mid-13th century from the Auld Hull in the west to Sayer Creek in the east, which is now the River Hull. Archaeological evidence appears to show Wyke changing its location around this time to the area which is now Hull’s Old Town.
3.2 The Old Town has many ties to the Middle Ages which are largely responsible for its historical significance. The medieval town was surrounded by defensive walls on three sides, and the River Hull on the fourth, and this restricted the growth of the town, resulting in many of its streets being extremely narrow (Figure 3). The medieval street pattern can still be seen within the Old Town today. Other surviving connections to the Middle Ages include two medieval churches, Hull Minster and St Mary’s (Neave & Neave, 2017; Figures 4 and 5). In 1296, King Edward I purchased Wyke as he needed a port in the north of England to supply his armies in preparation for a forthcoming campaign against Scotland. He named the settlement ‘King’s Town’, leading to its current name of Kingston upon Hull (Hull History Centre, n.d.). By the end of the Middle Ages, Hull was one of Yorkshire’s three largest towns. It had established itself as one of the most important ports on the English East Coast, with only London exceeding it in terms of wealth and trade.
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Figure 3: The medieval town walls and street plan contained therein (Evans, 2017)
Figure 4: Hull Minster Figure 5: St. Mary’s church
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3.3 The line of the town walls, before the settlement expanded beyond them, can still be traced within the existing street pattern of the Old Town. During King Edward II’s reign, Hull developed some of the strongest defences in Yorkshire (Evans, 2018). These were further strengthened under the reign of King Henry VIII when three blockhouses (small forts), linked by a curtain wall and outer moat, were built on the east bank of the River Hull in the mid-16th century (Figure 6). The walls surrounding the settlement defended Hull for four centuries and allowed the town to play a crucial role in the English Civil War (Markham, n.d.). Just prior to the start of the English Civil War in 1642 a second circuit of outer defences were added, comprising five half-moon batteries, linked by a rampart and outer ditch. The River Hull was regularly used for trade purposes throughout history, with Hull’s medieval prosperity being largely achieved through the exportation of wool (Allison, 1969b). Trade with various countries influenced the Old Town’s development, thus by the 17th century Hull had the appearance of a Dutch town (Hull City Council, 2014). This was evidenced by Hull’s brick town walls, gateways and many Artisan Mannerist buildings (Neave & Neave, 2010), some of which can still be seen today (Figures 7 and 8).
Figure 6: A view of Hull from the west just before the English Civil War (Wenceslas Hollar)
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Figures 7 and 8: Examples of Artisan Mannerist buildings in the Old Town. Left: Wilberforce House, right: Ye Old White Harte
3.4 Hull underwent intensive urban growth during the late 18th and early 19th centuries (Allison, 1969). The town experienced high housing densities, congested industrial concentrations, limited urban space and crowded slums. At the same time, an increasing emphasis on trade caused the River Hull to become extremely congested, leading to the town’s walls being removed to allow the construction of new river docks. The following docks were established; Queen's dock (1778), Humber dock (1809), Prince’s dock (1829) and the Railway dock (1846). After all these constructions were completed, the Old Town gained the appearance of an island surrounded by water (Figure 9). Furthermore, spoil from the construction of the Humber dock was used to create Wellington Street and Nelson Street which changed the topography of this part of the conservation area.
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Figure 9: Map of Hull in 1842, during which time the Old Town had the appearance of an island surrounded by water (Hull Local Studies Library, 2007)
3.5 During the first half of the 20th century, many of the crowded slums located in the courts and alleys of the Old Town were deemed unfit for human habitation and demolished. Additional notable changes during this period include the creation of Queen Victoria Square (Figures 10 and 11), the laying out of Alfred Gelder Street and the construction of numerous majestic buildings such as The Guildhall (1904-16; see Figures 12 and 13), The City Hall (1903-9; see Figure 14), The Market Hall (1902-4; see Figure 15) and the old General Post Office (1904-9), many of which are now listed buildings (Historic England, 2019c).
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Figure 10: Queen Victoria Square
Figure 11: Queen Victoria Square
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Figure 12: Guildhall
Figure 13: Guildhall
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Figure 14: City Hall
Figure 15: The Market Hall
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3.6 During World War II (1939-45), Hull was the most heavily bombed provincial city in Britain. The Old Town suffered significant damage, although this was largely restricted to the southeast quarter. The central area experienced light damage in comparison (Haywood & Haywood, n.d.), with the only regrettable historic building loss being a small 17th-century Artisan Mannerist house on Dagger Lane. After the war, neglect and shifts in economic focus led to the number of people living and working in the Old Town to fall dramatically, causing many buildings to become abandoned.
3.7 The appearance of the Old Town underwent considerable change in the late 20th century. The A63 Castle Street, now the main road into Hull from the west, was built in the 1970s. This divided the northern and southern parts of the Old Town, preventing people from easily commuting from one side to the other. Business profits began to decline as a result, particularly in the south, causing many additional buildings to become derelict. The southern part has therefore received more investment for developments in recent years compared to the rest of the conservation area. Regeneration works began in the early 1980s (Hull City Council, 2014) and investments targeted around the marina introduced new housing, offices, a hotel, a pub/restaurant, a boat yard and boat shed. A 19th century warehouse (Warehouse 13) was also refurbished and converted to flats. The southern part of the Old Town now has a significantly more modern appearance than the Northern and Central areas, yet each area remains crucial to the distinctive character of the conservation area. Today, vacant buildings in the Old Town are few in number and the amount of people living, working and visiting the Old Town has risen considerably.
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4. Topography 4.1 The Old Town conservation area occupies a flat, low-lying site on the west bank of the River Hull and the north bank of the Humber Estuary (Hull City Council, 2014). The land on which it sits is approximately 4.5m above sea level (Ordnance Datum Newlyn) and consists of post-Roman alluvial warp or, in the case of its eastern and extreme southern limits, medieval and post-medieval reclaimed soils. Due to the lack of local relief, overall views of the conservation area are difficult to attain except from tall buildings such as the Prince’s Quay Shopping Centre, Essex House and The Deep. (For more information, see Horrox, 1978).
5. Archaeology 5.1 The Old Town has a rich archaeological heritage which dates mainly from the medieval and early post-medieval period, during which time Hull was a major port and religious centre. The nature of the soils in which the archaeology is buried greatly assists the preservation of organic materials, such as wood and leather, and consequently the quality of archaeological deposits within this conservation area is exceptionally good and nationally significant.
5.2 The Humber Historic Environment Record (HHER) is a collection of information relating to all known archaeological sites within Hull and the East Riding of Yorkshire (Historic England, 2019b). The HHER has records of archaeological sites and finds dating from the prehistoric period until the post-medieval period. Generally, artefacts and sites dating up to and including 1700 AD are recorded. The HHER has records of listed buildings and unlisted buildings of historic interest, as well as buildings marked on the 1st edition OS maps and 20th century fortifications. It comprises over 17,000 records and has an extensive collection of aerial photographs.
5.3 Augmenting the HHER will be the Hull Urban Archaeology Database (HUAD), a project funded by Historic England. The project will accurately record and map the historic environment, including the depths of modern disturbance and the depths of archaeological deposits. The extent of bomb damage experienced during World War II will also be mapped. Data will be presented as a 3D model to assist in identifying Page 61 of 238 www.hull.gov.uk/planning 15
areas of archaeological potential and survival. This information will be presented on a web-based platform which will be used to better inform future planning decisions. The project commenced in March 2019 and is expected to be completed in 2021.
5.4 For further information about archaeology in the Old Town, see the following: A historical map of Hull (Neave & Neave, 2017) The Fortifications of Hull between 1321 and 1864 (Evans, 2017; Historic England, 2019) Historic Environment Records (Heritage Gateway, 2017)
5.5 Public archaeology 5.5.1 Despite its historical significance, the Old Town has limited archaeological remains on display to the public. This means that the preservation of remains which are displayed is essential for maintaining the area’s historic character. At the west end of Whitefriargate, a display originally opened in 1990 and, re-presented in 2017, provides views of the northern half of the 14th-17th century Beverley Gate, as well as a short length of the late 14th or early 15th century town wall (Figures 16 and 17). The Beverley Gate (Figure 18) is where Sir John Hotham famously refused entry to King Charles I in 1642, which contributed to the triggering of the English Civil War. Additionally, it was here that Sir Robert Constable, the rebel governor of Hull during the Pilgrimage of Grace, was hung in chains in 1537. The site therefore has significant historical importance. The full town wall is believed to have consisted of approximately 4.7 million bricks. This would have made it the most extensive brick structure in medieval England; an iconic historical construction.
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Figures 16 and 17: The Beverley Gate display
Figure 18: The Beverley Gate in 1770 (Evans, 2017) Page 63 of 238 www.hull.gov.uk/planning 17
6. Streets, public spaces and art 6.1 Streetscape 6.1.1 Streets within the Old Town are of a variety of lengths and widths. The Historical zone and parts of the Civic zone contain many short and narrow medieval streets, whereas the Fruit Market zone and the lower end of the Maritime zone have more modern, larger streets such as the A63 Castle Street (Figure 19). The Old Town contains streets developed in numerous time periods, notably the Medieval and Georgian periods, such as Manor Street and Parliament Street, respectively (Figures 20 and 21). Most streets include roads and paths. A few streets are entirely pedestrianised, for example Parliament Street, whereas others include footpaths but are largely dominated by car usage, for instance the A63 Castle Street.
Figure 19: The A63 Castle Street; a busy, modern road which separates the Civic and Historic zones from the Fruit Market and Maritime zones
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Figure 20: Example of a short and narrow medieval street
Figure 21: An example of a Georgian Street: Parliament Street.
6.1.2 Numerous paving materials are found throughout the Old Town, some of which are illustrated in Figure 22. York Stone paving and granite kerbs are commonly used, particularly in the Historical zone. Other notable materials present in the conservation
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area include Victorian granite setts and gully stones, red block paving, concrete, granite paving, sandstone paving, porphyry paving, basalt paving, Kellen Lavaro concrete block Grijs, re-laid cobbles and coloured Macadam. Rarer used materials primarily located in the Historical zone include modern Chinese and Portuguese granite setts.
Figure 22: A photograph capturing some of the paving materials used in the Old Town (York Stone Paving; granite sets, gully stones and kerb stones; and modern brick block paving).
6.2 Street furniture and signs 6.2.1 Street and dock furniture adds charm, character, richness and variety to the conservation area and thus it is essential that high-quality and/ or historic examples should be retained. Historic street furniture is now rare in the Old Town making surviving examples extremely important. Some key historic street furniture includes the Victorian standpipe on North Church Side, the former drinking fountain and cattle trough on High Street and the two manhole covers (bearing the legend of ‘HHPCo’) on Charlotte Street. The reinstatement of displaced historic street and dock furniture is desirable to further enhance the character of the Old Town.
6.2.2 Modern street and dock furniture also contribute to the Old Town’s sense of place. Furniture ranges in date, design and quality, with some good examples including the stylish and distinctive Urbis ‘sexton’ lighting columns along Humber Dock Side and the decorative dockside railings. Although modern street and dock furniture does play an
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important role in placemaking, it is crucial that new developments take into account the wider context, setting and materials as well as durability and maintenance. Their numbers should be kept to a minimum to avoid visual clutter.
6.2.3 Historic street signs also add to the Old Town’s sense of place, providing charm and character through a range of designs, lettering and materials such as cast iron, stone and encaustic tile. Such signs should be retained and missing signs should be reinstated whenever opportunities arise involving the original designs, materials and lettering.
6.3 Public spaces 6.3.1 Queen Victoria Square (see Figures 10 and 11): A spacious, pedestrianised hub. Created at the start of the 20th century to display the confidence and aspirations of the City. It contains a monument to Queen Victoria (1903) by H.C. Fehr (Neave & Neave, 2012) and a suite of underground public toilets, both of which are listed. This is an aesthetically pleasing space which is popular amongst residents and tourists alike. Attractions such as the fountains designed by Mel Chantrey (The Fountain Workshop, n.d.) especially appeal to children and provide a focal point for people to gather around the square to sit, eat and chat.
6.3.2 Beverley Gate and 'Monument Bridge' (see Figures 16 and 17): Here, the northern half of the 14th-17th century Beverly Gate, as well as part of the late 14th or early 15th century town wall, can be viewed (see section 5.1. Public Archaeology). New landscaping and seating areas have made this a popular display where its historic significance can be enjoyed by both residents and tourists.
6.3.3 Prince’s Dock Side: Created at the beginning of the 1990s, this space features the line of the medieval town wall, a postern and three of the four interval towers that originally stood between the Beverley Gate and the Myton Gate. Outdoor seating, eating and drinking establishments create a continental-style atmosphere. The waterside location with views of the old dock also emphasises the distinct maritime character.
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6.3.4 Trinity Square (see Figure 23): A wide-open, urban space created at the end of the 19th century. Colloquially known for many years as ‘The Market Place’ after its use as such, this square has retained its vitality through its peripheral use for outside seating near café bars and public houses, giving it a continental-style atmosphere. An extremely positive feature, recently added to this space, are the mirror pools (Figures 24 and 25). Designed by Mel Chantrey (The Fountain Workshop, n.d.), this collection of eight 4 x 4m water features reflect the grand architecture of Hull Minster, creating the effect of mirrored paving. In addition, optional gentle stirring of the water creates unique shapes (Hull Minster, 2017). This feature provides the area with a memorable and relaxing ambiance which can be enjoyed by all.
Figure 23: Trinity Square
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Figures 24 and 25: The mirror pools at Trinity Square
6.3.5 High Street, Lanes and Staiths: High Street’s built form creates a strong sense of enclosure and intimate character (Figures 26 and 27). The irregular and curving alignments of High Street reveal significant views of many highly detailed and characterful buildings. Some examples of the Dutch style gable ends can be seen, for instance at 34 Scale Lane. Staiths (landing stages) can be noted along High Street (Figure 28), some of which provide framed views of the River Hull. Residential use has increased since the 1980s, with numerous former warehouses having been converted into flats. Several pubs and cafes add character to the area and the Museums’ Quarter off High Street is a popular tourist attraction.
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Figures 26 and 27: High Street
Figure 28: Chapel Lane Staith located off High Street
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6.3.6 The Wharves and River: The Wharf has an industrial character. Numerous warehouses there were renovated in the 1980s-90s, with one particularly successful renovation being the Pacific Court Student flats. The river provides an aesthetically pleasing outlook from the flats, with views of distinctive landmarks such as the Drypool Bridge also being provided.
6.3.7 Lowgate/Market Place: A high level of containment and the width of the street gives this space a feeling of importance and city scale. The area contains several listed buildings, for example Hull Minster, and several modern buildings. Buildings are used for a variety of purposes including offices (which are mainly used by financial and legal sectors), retail, entertainment, pubs and restaurants. The recently remodelled King William House (opposite Hull Minster and now converted to residential use) successfully shows how a 1970s office block can be re-imagined and positively enhanced.
6.3.8 Lowgate/Alfred Gelder Street Junction: This area has a strong sense of place; it possesses a variety of significant buildings and has both wide streets and frontage dimensions. Listed buildings cluster around the Charles Henry Wilson Statue and numerous buildings have distinctive focal elements e.g. the clock tower and symmetrical frontage of The Guildhall, St. Mary’s church tower and the dome of the Crown Court. Buildings are predominately civic and public with some offices and residential developments.
6.3.9 Liberty Lane: A new road created in the 1980s to link High Street with Market Place. Traditional lighting has been installed and the pavements were re-laid using bricks. However, there is little active frontage along the street. It is mainly flanked by surface car parking and service access to Scale Lane and King William House.
6.3.10 George Yard: A modern access road constructed to serve the Crown Court. The area has been redeveloped to a higher standard, respecting the setting of Wilberforce House.
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6.3.11 Eastern part of Alfred Gelder Street, Crown Court to Drypool Bridge: A wide and modern street, compared to the rest of the Old Town, which acts as one of the main vehicular routes leading from the east into the city centre. It contains two key listed buildings; Alfred Schofield House and the late 19th century White Hart Public House. The flats and offices along the street relate well to their historic context and setting and they reflect the character of the warehouses, particularly in terms of massing. The area is now largely consolidated in development terms, apart from the site lying adjacent to Drypool Bridge. This should be developed as a perimeter block to continue the strong built edge between High Street and the River. This would also close the vista along the street looking east towards the Bridge.
6.3.12 Unnamed crescent south of Rotenhering Staith and north of the Hull Tidal Surge Barrier: A curving crescent between the Myton Bridge and the elegant Tidal Surge Barrier; a flat arched structure built in 1980 which stands at over 118ft (Figure 29).At night, illumination of the glazed staircase to each tower makes this a prominent landmark.
Figure 29: The Hull Tidal Barrier.
6.3.13 New South End’: A modern viewing area featuring several public art works.
6.3.14 Nelson Street (Figures 30 and 31): A broad and once tree-lined promenade built at the beginning of the 19th century. This provides river views, a quiet place for contemplation Page 72 of 238 www.hull.gov.uk/planning 26
and a good range of buildings such as the acute angled Minerva Hotel with its unique, rounded corner. The area’s character is also enhanced by the following factors: distinctive Ibstock I-block paving, the 1930s public conveniences, the former Humber ferry ticket office and the horse wash – a slipway to the side of the pier where horse- drawn carts once loaded and offloaded goods from market boats.
Figures 30 and 31: Nelson Street
6.3.15 Victoria Pier (Figures 32 and 33): Established in 1801, this L-Shaped timber pier provides broad views of the Humber estuary, passing ships, Albert dock, the eastern docks and the Humber Bridge.
Figures 32 and 33: Victoria Pier
6.3.16 Minerva Pier (Figure 34): A late 20thcentury L-shaped cofferdam pier originally known as East pier. On the pier is the Royal Naval Association Memorial which was specifically designed for the site (Figures 35, 36 and 37).
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Figure 34: Minerva pier
Figures 35, 36 and 37: The Royal Naval Association Memorial located on Minerva Pier
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6.3.17 Minerva Terrace: A charming terrace landscaped in the mid-1980s and named after the Roman goddess of wisdom. It displays traditional paving materials and a modern central dais housing a large 18th century gun on a naval carriage (Figure 38).
Figure 38: 18thcentury gun on a naval carriage located along Minerva Terrace
6.3.18 Island Wharf: A stylish and contemporary plaza completed in 2005 with a central iconic office building.
6.3.19 Stage at the Dock (Figures 39 and 40): Hull’s former Central Dry Dock built in 1843, also known as the South End Dry Dock, was adapted to accommodate a stage with expansive views of the Humber and the Deep. This stunning, multi-purpose venue provides an atmospheric setting for audiences wishing to view a range of entertainments. The surrounding public realm provides numerous places for people to rest and take in the landscape of the city (Stage @TheDock, 2016).
Figures 39 and 40: The former Dry Dock, adapted to accommodate a stage Page 75 of 238 www.hull.gov.uk/planning 29
6.3.20 Hull Maritime Quarter: A stunning pedestrianised space which provides distinctive views of docks and boats, with a range of historic vessels and modern yachts being present giving it a unique maritime ambiance (Figure 41). Its character is further reinforced by the variety of contemporary buildings. Red block paving is used to illustrate the location of the former Old Town walls. Additional new paving has been recently introduced including granite paving, however, old paving materials and features, for example reused granite sets and the infilled old railway lines were also maintained. Preservation of these materials and features is essential for maintaining the unique character of this zone.
Figure 41: Hull Marina
6.4 Public art 6.4.1 The Old Town conservation area has a variety of public art which contributes to its distinctiveness and character. Numerous pieces of public art from the 19th and 20th centuries can be seen including statues made of bronze and stone, ornate metal gates and free-standing works. Other notable pieces include the Royal Naval Association Memorial (Figures 35, 36 and 37), several ‘blue plaques’ on sites and buildings of interest and the famous Fish Trail (1992) which complements the area’s maritime setting (Figures 42 and 43). This trail displays sculptures or engravings of fish for each letter of the alphabet carved out of materials of geological interest, as well as glass, brick, steel and other metals. Following this trail takes viewers on a tour of the Old Town (Horne, 2007; Figure 44).
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Figures 42 and 43: Examples of artwork produced as part of the Old Town’s Fish Trail
Figure 44: Map of the famous fish trail; following this takes people on approximately a one- hour tour of the Old Town (Tourist Tracks, n.d.)
6.4.2 Introducing new public art should be considered as this can play an important role in placemaking and enriching the public realm. However, it is essential that new public art does not create undue clutter. It must also complement its context, setting and the wider townscape, and consideration must be given to durability, maintenance, lighting and visual impact from all directions. Page 77 of 238 www.hull.gov.uk/planning 31
7. Greenery 7.1 The amount of greenery (trees, shrubs, grassed areas and gardens etc) present within different parts of the conservation area varies greatly. In the older areas with a close knit and dense urban grain there is little greenery, but where it does occur it adds a welcome and softening contrast within the built environment. Permanent landscaping is augmented in the summer months by additional seasonal planters, hanging baskets and window boxes which introduce splashes of colour (Figure 45).
Figure 45: Flower planters located within the Civic zone of the Old Town
7.2 North of Castle Street, most greenery can be found north of Alfred Gelder Street and east of Lowgate/Market Place. In the remaining area two notable pockets of greenery are the trees in Trinity Square and the private communal garden on the south side of Prince Street, but other good pockets do also exist within the late C20 housing courtyards nearby. In the other areas first mentioned, particularly good landscaping can be found around Hull College, the Crown Court and the Magistrates Court/King William House. Attractive other green spaces include the gardens at Wilberforce House, Nelson Mandela Gardens (Figures 46 and 47), Scale Lane Staith, Pease Court and St. Mary’s churchyard.
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Figures 46 and 47: Nelson Mandela Gardens
7.3 In the southern part of the conservation area (south of Castle Street) there is a larger amount of greenery. Noteworthy pockets include the Trinity Burial Ground and Nelson Street (Figure 48), although the latter has suffered from denudation in recent years. Other important pockets or avenues of trees can be found at Island Wharf, the Tidal Surge Barrier, the old dock sides (marina promenades), in and around Marina Court (and the car park to the east of it), Railway Street, Minerva Terrace and around the Holiday Inn.
Figure 48: Greenery located at Nelson Street
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8. Buildings 8.1 Building stock 8.1.1 The Old Town has around 190 listed buildings. These buildings were constructed throughout different time periods and it is rare for two adjoining buildings to have the same architectural style (for more information see Historic England, 2019c and Hull City Council, 2019). This gives the conservation area a rich mix of contrasting scales, styles and types. There is a broad range of building types present including residential, commercial, churches and warehouses. The vast majority of these buildings contribute positively to the Old Town’s character, appearance and significance by virtue of their age, scale, height, massing, layout, position, rhythm, style, architectural detailing, materials, former uses, historical associations and time-depth values - with many buildings contributing to the visibility of the past within the present streetscape.
8.1.2 The conservation area contains a few medieval buildings including two medieval churches, Hull Minster and St Mary’s (Figures 4 and 5). The latter has been altered multiple times, with most of its present-day fittings being from the Victorian period or later (Neave & Neave, 2017). Very few medieval stone buildings were constructed in the Old Town. This is because there was no readily available source, and the cost of importing stone from a considerable distance away made medieval stone buildings extremely expensive to build (Hull City Council, n.d.e). Before 1500 the majority of houses were timber framed, with No. 5 Scale Lane being Hull’s only surviving example (Figure 49). In the 1570s the Corporation ordered the use of bricks rather than timber as a fire precaution and dictated that all thatched buildings should be roofed with tiles. The Old Grammar School (Figure 50) is an example of a building constructed at this time (Neave & Neave, 2010).
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Figure 49: No. 5 Scale Lane, the Old House – Shoot the Bull
Figure 50: The Old Grammar School
8.1.3 By the 17th century, Hull had the appearance of a Dutch town (Neave & Neave, 2010). Dutch influences can be seen in the black ledger stones with which Hull Minster is partly paved (Hull Minster, 2016) and the distinctive brick façade with stone detailing and a projecting porch at Wilberforce House (Neave & Neave, 2017). Another key example of Dutch-inspired architecture is the listed Empress Public House, with its flowery, ornate finish and its tall, narrow shape due to its previous use as a dockside warehouse.
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8.1.4 The Old Town contains numerous Georgian buildings which are designed to look classically elegant and refined. Trinity House is one of the conservation area’s most significant Georgian buildings (Neave & Neave, 2012; Figures 51 and 52). Some other notable Georgian buildings include Maister House, 160 High Street and Pease Warehouse. Parliament Street (Figure 21) is the most complete street of Georgian houses in Hull (Neave & Neave, 2017).
Figures 51 and 52: Trinity House
8.1.5 In the Victorian period, the arrival of the railway caused Hull’s population and volume of trade to rapidly grow. This led to a prompt expansion in housing construction and the establishment of the New Dock Offices, now known as the Hull Maritime Museum (Neave & Neave, 2017; Figures 53 and 54). Numerous other majestic buildings were built within the Victorian and Edwardian periods such as the Guildhall (Neave & Neave, 2010), the former General Post Office and various banks, chambers and offices along Lowgate, some of which are of an ornate design.
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Figures 53 and 54: The former Dock Offices, now Hull Maritime Museum
8.1.6 As previously noted, Hull was the most bombed provincial city during World War II. Redevelopment of the city began in the late 1940s which brought numerous new styles of architecture to what is now a conservation area. Immediate post-war architecture included warehouses along the south side of Humber Street (still extant) and the southern end of High Street (no longer extant). Another later example of the Old Town’s post-war architecture, built in the 1960s, is Essex House. Since its construction, this has been renovated from a ten-storey office block into an apartment block containing forty-five high-spec apartments from which stunning views of the city are afforded (Iguana Developments, 2018).
8.1.7 Since regeneration works began in the 1980s, more modern and contemporary architecture can be seen within the Old Town. Some significant examples include the Crown Court, Lowgate (Neave & Neave, 2010; Figure 55), the Centre for Digital Innovation (C4DI) (Figure 56) and buildings around Island Wharf such as the RSM office building. The C4DI was recognised as one of the region’s best commercial buildings, with its design and use of bold, contemporary materials creating a dramatic visual statement (Wykeland, 2019). The RSM office building is largely composed of float toughened glass and low emission glass (PressGlass, 2018), giving it a striking aesthetic which contributes to the character of the conservation area. Despite many modern buildings having a memorable and unique aesthetic which adds character and Page 83 of 238 www.hull.gov.uk/planning 37
vibrancy to the Old Town, some less successful examples now look out of place eg Oriel House, High street. It is therefore critically important that future developments are designed to best demonstrate Hull’s architectural and cultural renaissance (Neave & Neave, 2010), providing dynamic new styles which simultaneously reference the Old Town’s rich heritage
Figure 55: Hull Crown Court
Figure 56: The C4DI Building
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8.2 Traditional building materials 8.2.1 The most prominent building material in the Old Town is red brick. Stone is also used, although this is generally reserved for high status buildings and dressings of lower status buildings. Medieval use of stone was rare due to high construction costs (Hull City Council, n.d.e) and evidence exists for only a couple of known examples.
8.2.2 Before 1500, the majority of houses in the Old Town were built primarily from timber. This material was also used for riverfront structures, such as Victoria Pier. Brick became a more popular construction material choice over time, with the east end of Hull Minster being a significant example of its early usage. Hull’s surviving medieval churches also incorporate large quantities of brick (Hull City Council, n.d.e). From the 15th century onwards, bricks were used for the construction and repair of many domestic buildings. By the 17th century, a distinctive style known as Artisan Mannerism had been developed. This had many similarities to architectural styles originating from The Netherlands and can be categorised by many distinctive features such as curved globes, massive pilasters and triangular and segmental pediments (Neave & Neave, 2017).
8.2.3 Many brick buildings from medieval times are presumed to have been coated with a lime wash. From the 18th century, stucco was fashionable as a protective and decorative treatment and several examples of it can be seen within the Old Town, such as at Trinity House. Examples of other decorative treatments, popular during the 19th and 20th centuries, can also be seen; for instance, polychrome brickwork (which has two or more colours), lead, faience, terracotta, half-timbering, pargetting (decorative plasterwork) and polished stone. The complete use of stone for building in the Old Town was rare until the 20th century. From then, several high status buildings were built using stone, namely the Guildhall and the old General Post Office, with the favourite types of building stone employed at this time being Sandstone, Portland, Bramley Fell and Ancaster.
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8.3 Traditional roofing materials 8.3.1 The predominant traditional roof coverings in the Old Town are clay pantiles and Welsh slates. Rarer traditional coverings can also be seen, including copper, lead, ‘Rosemary’ tiles and Westmoreland slates. Figure 57 illustrates some of the roofing materials used in the Old Town.
Figure 57: Photograph of some of traditional roofing materials used in the Old Town
8.3.2 Many of the earlier houses would have been roofed with thatch, although houses owned by wealthier families and most public buildings would have had fired-clay roofing tiles instead (Hull City Council, n.d.e). The use of clay tiles to roof buildings is attested to from the late 13th century onwards, although archaeological evidence suggests that the use of thatch or shingles (wooden tiles) predominated throughout the medieval period. The main type of tiles in use were flat rectangular peg tiles, which were secured to the roof either by a projecting nib, or by one or more nails and laid in a treble-lap pattern. The use of stone slates also began around this period, yet the number of archaeological sites with these slates is quite small. This implies that they were not used to completely cover a roof; rather, they were instead likely to have been used along eaves, in combination with thatch or tiles, or around smoke outlets in thatched roofs.
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8.3.3 Clay roofing tiles were made in their thousands in Beverley and other places until at least 1700, after which they were gradually replaced by pantiles, which copied the shape of contemporary Dutch and Flemish tiles (Hull City Council, n.d.e). Pantiles are ‘S’ shaped clay tiles that can be laid in a single-lap pattern. By the end of the 18th century, imported Welsh slates had become popular in the Old Town. An example of this roofing can be seen at Blaydes House, High Street, where the main range is roofed with slates and the rear wing with pantiles.
8.4 Traditional fenestration 8.4.1 The Old Town has a rich tradition of different window styles, designs and materials from various periods of history. The predominant type of traditional window is the timber framed sash, invented around 1670. Early sash windows had numerous panes and thick glazing bars. As mass-produced glass became available from 1838, glazing bars became thinner and the4-over-4 pane design became popular, followed by the 2- over-2 configuration (Figure58) and finally, the 1-over-1 design. The majority of the sash windows within the conservation area are rectangular but other forms are also found including round-headed, Venetian and Diocletian. Other types of traditional windows present within the area include timber and metal framed casements and stone tracery, some of which contain stained glass and leaded lights. Although the conservation area does retain many of its traditional window styles, many have also been substituted by unsympathetic replacements (Figure 59). This has greatly impacted on the character, appearance and architectural harmony of several buildings and the Old Town as a whole. It is therefore extremely important that the remaining traditional window types are conserved as they have great character value.
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Figure 58: 2-over-2 timber sash windows
Figure 59: Unsympathetic replacement windows
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9. Character zones 9.1 Hull Old Town is comprised of four overlapping character zones (as shown in Figure 60) which merge one into the other.
Figure 60: Hull Old Town Character Zones
9.2 Civic zone 9.2.1 The Civic zone is approximately bordered by Alfred Gelder Street, High Street and Guildhall Road. The zone includes a significant set of public buildings, such as Hull City Hall (Figure 14), The Guildhall (Figures 12 and 13), Ferens Art Gallery (Figure 61) and the Hull Maritime Museum (Figures 53 and 54). The character of this zone is largely influenced by its relationship with members of the public and tourists. Many of its buildings are open to the public with additional public spaces in between, such as Queen Victoria Square (with its fountains making it a popular and vibrant place among both residents and visitors (Figures 10 and 11)). The zone is dominated by grand, ornate buildings, many of which display lavish architectural detailing that greatly contributes to the distinctive character of this zone. Numerous buildings have domes, for example Hull City Hall, whereas others contribute a restrained classical style to the Page 89 of 238 www.hull.gov.uk/planning 43
area, as demonstrated by the Ferens Art Gallery. In complete contrast to the latter is The Punch Hotel with its “extravaganza of Gothic and Jacobean Revival detail with tracery and shaped and steeped gables.” Views of greenery at Queen’s Gardens also contribute to a relaxing and communal atmosphere.
Figure 61: Ferens Art Gallery
9.3 Historical zone 9.3.1 The Historical zone is bordered by Alfred Gelder Street, High Street (where the River Hull used to run), the A63 Castle Street and Princess Dock Street. The Historical zone is critically important to Hull’s history and development. Many streets are medieval and some Georgian Streets are also evident, for example Parliament Street (Figure 21). Streets have a mixture of straight and curved axes. Straight streets were built this way on the instruction of Edward I after he purchased the town. Curved streets, however, have resulted from following the path of water courses or are remnants of an earlier medieval plan; for example, Land of Green Ginger follows an old water course.
9.3.2 This zone has numerous grand, high status buildings, many of which are listed (Historic England, 2019c). Buildings from various time periods can be seen, including a Tudor Grammar School (Figure 50) and many 18th-19th century buildings. Hull Minster (Figure 4) is a particularly significant building which adds to the character of the area, despite having received some bomb damage during World War I which primarily affected its windows. Due to the old age of many of the buildings within this zone, chimney stacks are prominent throughout the area which makes them a key Page 90 of 238 www.hull.gov.uk/planning 44
characteristic feature of the roofscape. The zone has a dense urban grain and buildings are located extremely close together as the area was previously confined within town walls. As a result, there is limited greenery within this zone.
9.3.3 In recent years, Trinity Square has been re-modelled into a stunning public space (‘Trinity Square’ under ‘6.3. Public Spaces’). Hull Minster has been restored and fully re-opened to the public after two years of internal and external renovations. Some key renovations include; the churchyard becoming part of the refurbished Trinity Square, the Nave being re-modelled and renovated, new displays of heritage exhibitions, the opening of an internal, high-quality café, a new heating system beneath a stunning limestone floor and state-of-the-art lighting (Hull Minster, 2018). The renovation works have created a beautiful space for worship, banquets, cultural events, performances and tourism (Hull City Council, n.d.c).
9.4 Fruit Market zone 9.4.1 The northern perimeter of this zone fronts onto the A63 Castle Street (Hull City Council, n.d.). Its other street parameters include Humber Dock Street and Humber Street. This zone was named after the former fruit market located around Humber Street, with the area having a history of flourishing fruit trade beginning in the 19th century (British Council, 2019). The Fruit Market zone suffered from significant bomb damage during World War II. In addition, the development of the A63 Castle Street deterred many pedestrians from accessing the area from the Historical zone, causing economic decline. As a result, a large scale regeneration project was launched in 2014 to rejuvenate the Fruit Market zone. Numerous projects along Humber Street have already been completed. The area is now a hub for independent retailers with a variety of cafes, shops and other recreational buildings being located here (British Council, 2019; Figure 62). The zone is vibrant and known for its art galleries, music and performance venues (Hull City Council, n.d.). A total of 101 houses are currently under construction on the north and south sides of Blanket Row at the time of writing, with the Fruit Market zone predicted to have the appearance of an urban village once construction works are completed (Figure 63).
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Figure 62: Humber Street
Figure 63: Developments of new housing in the Fruit Market Zone
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9.5 Maritime zone 9.5.1 This is the largest zone in the conservation area. Within it, Hull’s maritime past is wonderfully captured by a variety of buildings, docks and public spaces. The zone falls approximately within the borders of the River Hull, the North Bridge/A165, Wincolmlee, Charlotte Street, Dock Office Row, High Street, Humber Street, Humber Dock Street, Princess Dock Street, Castle Street/A63, Commercial Road, Kingston Street, Hull Marina/Boat Yard, Railway Street and the Humber estuary.
9.5.2 Throughout the zone, many maritime buildings and structures can be seen. In the northern section, important buildings including the Maritime Study Centre (formally a ship builder’s house), the former Dock Offices at Dock Office Row, New Northbridge House and the ‘North End Shipyard’. High Street runs between the northern and southern parts of the zone. This street was developed along the course of the River Hull, resulting in its distinctive, winding appearance. Its grand buildings are largely Victorian, many of which are now used as residential accommodation. Setts and Artisan Mannerist buildings can also be observed, for instance Wilberforce House (Figure 7) and Crowle House. Multiple staiths can be seen within the area; this further emphasises the historical importance of water within this zone, with the word ‘staith’ meaning a landing stage for cargo boats (Discovering Britain, 2017). High Street also runs by the Museums Quarter, a valuable tourist attraction containing four different museums (Visit Hull and East Yorkshire, n.d.; see Figures 64 and 65).
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Figure 64 and 65: Hull’s Museums Quarter
9.5.3 Evidence of past and present maritime activities becomes increasingly prominent as you look further south. Some notable maritime public spaces, infrastructure and buildings include the Docklands, Victoria and Minerva piers, sea defences, such as the Hull Tidal Surge Barrier (Figure 29), and a limited number of surviving traditional houses with warehouses built behind them. Large-scale buildings are part of this zone’s character. Some surviving, historic, dockland buildings can be seen, for example Warehouse 13, interspersed with more modern buildings designed to follow this tradition, such as the Holiday Inn Hotel and Freedom Quay. By the docklands there is a distinctive sound on breezy days of the clinking of rigging, adding to this zone’s sense of place and its connection with the water.
9.5.4 Old railway lines can also be seen nearby. These are of significant importance to the industrial character of the area and should be conserved. Future developments should therefore compliment the area’s maritime history whilst conserving its unique features and characteristics, particularly the old railway lines and the large-scale buildings.
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10. Negative features 10.1 The vast majority of the Old Town’s features, including its buildings, furnishings and streetscapes, positively contribute to its overall character, creating a high-quality and distinctive sense of place that enhances one’s experience of the area. However, some aspects of the Old Town detract from its historic character and should be improved wherever possible. Underdeveloped and vacant sites create a sense of abandonment. In the future, new developments designed to complement the Old Town’s character should be constructed within these sites to improve the character and appearance of the conservation area. Whitefriargate, in particular, is in need of enhancement, especially in terms of addressing the number of vacant properties and improving the poor quality of many of its shop fronts (Figure 66).
Figure 66: Whitefriargate - Future developments should address the vacant properties and improve the quality of shop frontages
10.2 Successful developments, improvements and renovations in areas which currently have a negative impact will help conserve the conservation area by further enhancing its character.
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11. Landmarks and key views 11.1 The lack of local relief within the Old Town is broken by several landmarks that punctuate the skyline. These not only contribute interest and variety to views within and without the Old Town but also add to a distinct sense of place. The most significant skyline landmarks include: The towers of Hull Minster (Figures 4, 23 & 57), the Market Hall (Figures 15, 23 & 57), St Mary’s church (Figure 5) and the Guildhall (Figure 13); The turrets of the Yorkshire Bank and 79 Lowgate; The domes of the Hull Maritime Museum (Figures 53 & 54), City Hall (Figure 14) and Crown Court (Figure 55); Tidal Surge Barrier (Figure 29); The ‘Scotch’ type derrick at the North End Shipyard; Warehouse 13; The cupola of the Old Dock Offices; The rooftop sculptures of the Guildhall (Figure 12); and The mansard roof to outer bays of New Northbridge House.
11.2 Key views and vistas are plentiful and include those of the above landmarks and from: The Old Harbour, The Old Town Docks (Hull Marina) (Figure 41) and River Hull Bridges; Queen Victoria Square (Figures 10, 11, 14, 53 & 54), Trinity Square (Figures 15, 23, 24, 25, 50, 51 & 52 and ‘Monument Bridge’ (Figure 16). Various old streets and thoroughfares, such as Prince Street (Figure 67), High Street (Figures 26 & 27), Whitefriargate (Figure 69), Lowgate/Market Place, Alfred Gelder Street (Figure 12), Parliament Street (Figure 21) and the medieval ‘Beverley Street’ (King Street/Trinity House Lane and Land of Green Ginger) (Figures 51 & 52). Nelson Street, Victoria Pier (Figures 68 and 69) and Minerva Pier (Figures 70 and 71).
11.3 Views and vistas of the above landmarks and other key features from various streets also aid pedestrian navigation, especially for tourists and visitors, in what is Hull’s principal tourism area. For this and the reasons mentioned earlier, it is important that such views and landmarks are preserved and accentuated in order to generate greater cultural awareness and civic pride. Page 96 of 238 www.hull.gov.uk/planning 50
Figure 67: Princes Street
Figure 68 and 69: Views from Victoria Pier
Figure 70 and 71: Views from Minerva Pier
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12. References
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Evans, D. H. (2017) The Fortifications of Hull between 1321 and 1864. Archaeological Journal, 175(1), 87-156.
Evans, D. H. (2018) Excavations at the Beverley Gate, and other parts of the town defences of Kingston-upon-Hull. Hull: Humber Archaeology Partnership. Available online: https://archaeologydataservice.ac.uk/archiveDS/archiveDownload?t=arch- 3337- 1/dissemination/pdf/fullarchivereport.pdf [accessed 05/02/19].
Horrox, R. (1978) The Changing Plan of Hull, 1290-1650: a Guide to Documentary Sources for the Early Topography of Hull. Hull: Kingston Upon Hull City Council. Haywood, R., Haywood, V. (n.d.) The Hull Blitz: A bombing map. Available online: http://www.rhaywood.karoo.net/bombmap.htm [accessed 05/02/19].
Heritage Gateway (2017) Historic Environment Records: Humber HER. Available online: https://www.heritagegateway.org.uk/gateway/chr/herdetail.aspx?crit=&ctid=92&id=472 9 [accessed 05/02/19].
Highways England (n.d.) A63 Castle Street Improvement. Available online: https://highwaysengland.co.uk/projects/a63-castle-street-improvement/ [accessed 21/02/18].
Historic England (2019) Beverley Gate and adjacent archaeological remains forming part of Hull's medieval and post-medieval defences. Available online: https://historicengland.org.uk/listing/the-list/list-entry/1430250 [accessed 05/02/19].
Historic England (2019b) Historic Environment Records (HERs). Available online: https://historicengland.org.uk/advice/technical-advice/information-management/hers/ [accessed 05/02/19].
Historic England (2019c) Search the List – Map Search. Available online: https://historicengland.org.uk/listing/the-list/map-search [accessed 05/02/19].
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Horne, M. (2007) The Geology of the Hull Fish Trail. Available online: http://www.hullgeolsoc.co.uk/fishtrail.htm [accessed 05/02/19].
Hull City Council (n.d.) Fruit Market | City Plan Hull. Available online: http://cityplanhull.co.uk/index.php/fruit-market/ [accessed 21/02/19].
Hull City Council (n.d.b) Guildhall Greenwich Time Ball. Available online: http://cityplanhull.co.uk/index.php/guildhalltimeball/ [accessed 27/02/19].
Hull City Council (n.d.c) Hull Minster. Available online: http://cityplanhull.co.uk/index.php/holy-trinity-church-revitalisation/ [accessed 27/02/19].
Hull City Council (n.d.d) Hull: Yorkshire’s Maritime City. Available online: http://cityplanhull.co.uk/index.php/hull-yorkshires-maritime-city/ [accessed 05/04/19].
Hull City Council (n.d.e) Supplementary Planning Document 2: Heritage & Archaeology. Hull: Hull City Council. Available online: http://www.hull.gov.uk/sites/hull/files/media/Editor%20- %20Planning/SPD%202%20Heritage%20and%20archaeology_0.pdf [accessed 30/04/19].
Hull City Council (2014) Kingston Upon Hull: Heritage Evidence Base. Hull: Hull City Council. Available online: file:///C:/Users/designu/Downloads/Heritage%20- %20Full%20Document.pdf [accessed 05/02/19].
Hull City Council (2019) Local Buildings List. Available online: http://www.hull.gov.uk/planning/building-standards-and-regulations/local-buildings-list [accessed 11/02/19].
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Hull Local Studies Library (2007) Hull Through the Ages [CD]. Hull: Hull Local Studies Library/Manuscript.
Hull Minster (2016) Heritage Preserved as Trinity Square is Transformed. Available online: https://hullminster.org/news/2016/1/22/heritage-preserved-as-trinity-square-is- transformed [accessed 29/04/19].
Hull Minster (2017) Water features complete spectacular transformation of Trinity Square. Available online: https://hullminster.org/news/2017/6/27/water-features- complete- spectacular-transformation-of-trinity-square [accessed 05/04/19].
Hull Minster (2018) Doors open on exciting new chapter for Hull Minster. Available online: https://hullminster.org/news/2018/3/19/doors-open-on-exciting-new-chapter-for- hull- minster [accessed 05/04/19].
Iguana Developments (2018) HU1 at Essex House. Available online: https://iguanadevelopments.com/property-item/essex-house/ [accessed 28/02/19].
Markham, J. (n.d.) The Treasures of Hull Old Town: A Guide to the City’s Architectural Heritage [booklet]. Hull City Council. Neave, D., Neave, S. (2010) Pevsner Architectural Guides: Hull. Hull: Yale University Press.
Neave, D., Neave, S. (2012) The Building of a Port City: A history and celebration of Hull. Hull: Hull City Council.
Neave, D., Neave, S. (2017) Hull: Yorkshire’s Maritime City. Hull: Historic England and Hull City Council.
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Page 101 of 238 www.hull.gov.uk/planning 55
Stage @TheDock (2016) Stage @TheDock – A Pioneering Cultural and Community Venue. Available online: http://www.stageatthedock.co.uk/ [accessed 26/02/19].
The Fountain Workshop (n.d.) Hull City Centre. Available online: https://www.fountains.co.uk/project/hull-city-centre [accessed 05/04/19].
Tourist Tracks (n.d.) Hull Seven Seas Fish Trail Tour Map. Tourist Tracks. Available online: http://mediafiles.thedms.co.uk/publication/YS-EY/cms/pdf/Hull%20Map.pdf [accessed 15/04/19].
Visit Hull and East Yorkshire (n.d.) Museums Quarter. Available online: https://www.visithullandeastyorkshire.com/Hull-Museums- Quarter/details/?dms=3&venue=2173050 [accessed 25/02/19].
Wykeland (2019) C4DI Recognised as one of Yorkshire’s best commercial buildings. Available online: http://wykeland.co.uk/news/c4di-recognised-one-yorkshires-best- commercial- buildings/ [accessed 28/02/19].
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Report to the Cabinet
Wards : Citywide 23 November 2020
Hull Ice Arena
Report of the Mark Jones – Corporate Director Regeneration
This item is not exempt Therefore exempt reasons are not applicable
Click here to enter details relating to the Forward Plan 0057/20
1. Purpose of the Report and Summary
1.1 The purpose of the report is to set out details of a package of essential repairs that are needed to Hull Ice Arena in order that it can re-open in 2021/22. The report considers the strategic importance of the ice arena as a leisure attraction in the city and explains why the repairs are necessary, the costs and the timetable for carrying out the work.
2. Recommendations
2.1 The Cabinet approves investment of up to £1.10m on works to Hull Ice Arena and delegates authority to the Director of Regeneration in consultation with the Director of Legal Services and Partnerships and Managing Director of Hull Culture and Leisure and the Portfolio Holder for Land and Property to develop a full package of works, including selection of the most suitable procedure, evaluation criteria and social value element, and subsequently procure a contract or contracts and accept the most economically advantageous tenders to deliver the works .
3. Reasons for Recommendations
3.1 Hull ice arena is a strategic facility for the city and is a key element of its leisure product that attracts visitors and recreational users from across the city and sub region. The arena supports the delivery of the objectives of the City’s Toward an Active Hull Strategy particularly in relation to sports activities that may be attractive to young people. The proposed investment seeks to address essential maintenance and health and safety concerns to
Page 1 of 10 Page 103 of 238 ensure operation over a period of 5 years and Covid-19 building compliance. The alternative options have been discounted on the basis that they risk losing what is a well-used and valued facility in the city and the consequential impact on the local economy through visitor spend and health/well-being outcomes.
4. Impact on other Executive Committees (including Area Committees)
4.1 The Ice Arena is a leisure facility that attracts users and clubs/groups across the city and sub-region. The proposed works to address essential maintenance work will have a positive benefit citywide on those who visit and enjoy the facility for sport and recreational purposes.
5. Background
5.1 Hull Ice Arena has had long standing maintenance problems and the plant and equipment within the building is operating beyond its lifespan. Since the announcement of the Council’s intention to develop a new ice arena as a key part of the regeneration of Albion Square, a strategy of minimal investment to keep the facility running has been adopted.
5.2 Despite the lifting of Government restrictions on leisure facilities operating lifted in the summer, Hull’s ice arena remains closed for essential maintenance. The Ice Arena is the region’s only Olympic sized ice rink and hosts a semi-professional ice hockey club Hull Pirates.
5.3 The Ice Arena is managed and operated by Hull Culture and Leisure Ltd which is wholly owned by Hull City Council.
6. Issues for Consideration
6.1 Strategic Context:
Hull Ice Arena is strategically important part of Hull’s leisure and recreation offer as a regional ice sports facility offering public ice skating, ice hockey, learn to skate lessons, figure skating and synchro skating. The facility attracts over 147,000 visitors per annum drawn from the Hull travel to work catchment area with 40% of users from the City of Hull. As a significant draw, the attraction generates income through visitor spend in the local economy of c.£3.50m per annum.
6.2 There are 10 regular well established community or semi-professional clubs who use the Ice Arena for training, matches and competitions which equates to approximately 750 club members. The largest club is Kingston Junior Ice Hockey Club with approximately 400 local people involved in the club. Young people who regularly attend public
Page 2 of 10 Page 104 of 238 skate sessions or skating lessons often take out memberships and there were 350 active memberships prior to lockdown. It is noted that many of these activities have been limited during the Covid 19 lock down period and, like many sports, the ice hockey season has been postponed for the year but the majority of other ice facilities have re- opened at the end of the summer.
6.3 In terms of sports and recreation physical activity levels and participation, rates in Hull are below the national average with a consequential impact on both the health and well-being of the City’s residents. This is particularly evident in young women who find it difficult to identify sports and recreational activities that are attractive to them. Towards an Active Hull strategy 2018 - 2028 highlights the health inequalities arising from high levels of inactive residents and advocates the creation of places and spaces in Hull that encourage and support both formal and informal activity.
6.4 The nearest facilities where clubs can practice and play on a similar sized ice pad are in Leeds, Sheffield and Nottingham. Skating lessons are also available at these locations to those who are prepared and can afford to travel. Public skating is also available at Grimsby and Doncaster but these rinks are much smaller than Hull Ice Arena. There are, in total, 26 ice rinks across England.
6.5 Building Repairs:
The ice arena mechanical and engineering systems are of an age whereby they are beyond their economic lifespan and, over recent years, there have been numerous breakdown and failures which severely impact service delivery, visitor experience and draw heavily on maintenance resources to continue operation. The current strategy of minimal investment means that components are maintained up until they fail or can no longer be repaired. This is a logical approach in the short term but leads to risk in the medium/long term of component failure.
6.6 As Government restrictions were lifted on the opening of leisure and recreational facilities over the summer a review was carried out on each individual building to ascertain adaptations works required to ensure building Covid-19 compliance which included the preparation of risk assessments and the re-commissioning of plant and equipment. The review of the ice arena highlighted areas of concern and plant failure. In summary, refrigerant system that maintain the ice pad has suffered from leakages and the maintenance team including specialist ice pad engineers are unable to maintain the ice pad to a consistent standard to allow for skating activities. In addition, the air handling units that control the internal environment/temperature within the building have failed and this has led to a build-up of moisture. In response, the ice pad has been temporarily decommissioned.
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6.7 So far as Covid-19 building compliance, the principle building related issue is the provision of increased levels of external air circulation within the building through the ventilation system in accordance with industry guidance (CIBSE). In other leisure facilities this has meant adaptation to the ventilation systems and replacement/repair of fans units to all parts of the building including changing rooms, public areas and back offices to mitigate against the air borne spread of the virus. These adaptations have been carried out alongside risk assessments concerning the use/activities allowed within the facilities and social distancing regulations. All assessments and works have been carried out under the guidance of specialist engineers from the Council retained advisors NPS Humber, health and safety and public health officers.
6.8 The review of the ice arena also highlighted that there were other component parts of the facility that require attention to address health and safety risks and that could sensibly be included as part of a wider package of works to ensure that the facility remains operational over the next 5 years. These include; the fire and intruder alarm system, emergency lighting system, works to the general power and mains switchgear, sound system and lift to the first floor. In addition the general internal fabric of the building is in a poor condition in terms of flooring/carpets and decoration and is in need of a refresh.
6.9 The proposal is to carry out a package of works to address these areas of concern at a cost based on a budget estimate of £1.10m including fees. The indicative programme shows that, if the design and preparation of tender documents commences in late November 2020, that works are likely to be undertaken between March and July 2021. The Council will be supported by NPS Humber who will provide professional advice under the terms of their service agreement.
6.10 It has been previously noted that the ice arena is toward the end of its economic lifespan and there does remain a significant number of areas and elements of the building that are in a poor state of repair and degradation. Whilst the proposal seeks to address immediate areas of concern, previous reports and condition surveys indicate that, in the medium term, a new modern replacement facility is considered the preferred viable option for the future. In addition, independent reports prepared by specialist consultants concluded that there is significant scope to increase the income from ice sports in the city by the provision of a modern purpose built attraction to complement the broader leisure visitor product.
6.11 Procurement:
The procurement of the works will be carried out in accordance with the national UK procurement guidance and Council Contract
Page 4 of 10 Page 106 of 238 Procedure Rules. Given the nature of the works, it is likely that specialist contractors will be required for some elements such as the replacement refrigeration system for the ice pad and the replacement air handling units. Further work is required to consider the content of the work packages and how they may be procured and delivered. Suitable evaluation criteria for the price and quality elements will need to be formulated.
6.12 HCAL Staffing Implications:
HCAL currently employ 17 employees at Hull ice arena (11.36 FTE’s) plus 4 catering staff. During the nine month closure period, HCAL staff will be allocated temporary alternative roles in the company and/or the Council. Plans have been drafted to avoid redundancies, and staff will be consulted in the coming days on the intended arrangements.
6.13 Clubs and User Groups
The Council propose to work very closely with Hull Culture and Leisure Trust to ensure that the works are delivered in a timely and efficient manner. In partnership the two organisations will ensure that both clubs, user groups and public users are provided with information and updates on the progress of the maintenance work over the next nine months and be asked for views on the design of some elements of the work. HCAL are proposing to set up a dedicated page on their website were regular updates will be published and have committed to sharing information and updates with representatives of clubs/groups via email/social media and, with the Council jointly, take part in regular briefings/meetings at key stages of the project.
Page 5 of 10 Page 107 of 238 6.14 Financial Implications:
Revenue
The table below shows that the ice arena currently breaks even however it is noted that building running costs are higher than would be expected on a new facility as, whilst in operation, engineers have been attending the site on a regular basis to monitor the performance of the plant and equipment.
Income £ k per annum Sales 800 Sub total 800 Expenditure HCAL Staffing 338 HCAL Running Costs 75 HCAL Cleaning Costs 50 HCC Building Running Costs 470 Sub total 809 Balance 9 deficit
7. Options and Risk Assessment
7.1 Option 1 – Do Nothing
The do nothing option is discounted on the basis that it will not deliver the desired outcomes and risks the loss of a well-used and valued sport and leisure facility in the city which contributes to the out comes in the Toward An active Hull strategy. The option effectively leads to the decommissioning of the facility and the end of ice based sports facility in Hull with the consequential loss of a semi-professional ice hockey team Hull Pirates and the various user groups including ice hockey teams and ice skaters. The closure of the ice arena undermines the city’s ambitions in terms of city centre regeneration and its image of a visitor destination. In addition, it will present a great deal of negative reputational damage to the City and City Council.
Page 6 of 10 Page 108 of 238 7.2 Option 2 – The Proposal
The proposal, as described in the report above, recommends carrying out the essential repairs and addresses health and safety compliance issues in a cost efficient and timely manner, using the period where activities are limited due to Covid-19 restrictions to carry out the work ready for re-opening to a new ice hockey season in 2021/22. The proposal also mitigates against the risk that ice sports activity is lost including the existence of the Hull Pirates ice hockey team (and junior teams) ready for the development of a new ice arena in the medium term.
8. Consultation
8.1 The intention is to invite stakeholders, user groups and the Area Committee/Ward Members to comment on the proposals contained within the report so that they can be considered as part of the decision making process at the Cabinet meeting.
9. Comments of the Monitoring Officer (Director of Legal Services and Partnerships)
9.1 Under S. 19 Local Government (Miscellaneous Provisions) Act 1976, the Council may provide public leisure and recreational facilities, although this is not a statutory duty. However, the Council has duties to maintain its assets and to ensure a safe operating environment for its staff and those using its buildings under the Health and Safety at Work Etc Act and could risk being subject to claims under the Occupiers Liability Act should a state of disrepair lead to accidents.
9.2 The estimated cost of the works package falls below the threshold where the Public Contracts Regulations 2015 (PCR) would apply, therefore Contract Procedure Rules will be followed. Current UK government guidance on procurement advocates the use of open tendering below the PCR threshold, although it will also be possible to utilise existing public sector framework contracts. Consideration will need to be given to the evaluation criteria and the overall packaging of the works, including the social value element, in order to ensure their attractiveness to the market as there is currently some hesitancy amongst contractors to submit bids in the continuing pandemic, with its impact on supply chains and availability of materials.
10. Comments of the Section 151 Officer (Director of Finance and Transformation)
Page 7 of 10 Page 109 of 238 10.1 The s151 Officer supports the proposed investment for the reasons set out in the report regarding the need to maintain a key asset, with health benefits, in the City. The scheme can be funded, in the first instance, from the allocation within the approved Capital Programme relating to the maintenance of Corporate Buildings pending approval of an updated programme as part of 2021/22 Budget setting.
11. Comments of Assistant Director of HR & OD and compliance with the Equality Duty
11.1 The staffing implications are covered in the report. An equality impact assessment would be required if the service was to cease. The health and safety implications of not completing the work are high risk.
12. Comments of Overview and Scrutiny
12.1 The Forward Plan entry relating to this decision has yet to be considered by Overview and Scrutiny Management Committee (OSMC). The Committee will decide if the decision should be subject to scrutiny, and if so, which Overview and Scrutiny Commission should carry out the work. As a consequence, the report author will need to ensure the scrutiny comments are updated after OSMC and before the final report is submitted to Cabinet. (Sc5907 – AS)
13. Comments of the Portfolio Holder for Property
13.1 I support the spending on the Ice Arena and would wish to see urgent action to ensure that we procure in the shortest legal timescale allowable, and that the work is then let very swiftly.
We also believe that we would involve and engage representative of the Ice Arena users in a working group, which includes Councillor Craker, Councillor Hale and officers who are responsible for the other major project schemes, such as Beverley Road and Albert Avenue Baths and East Park, and contact be made with users groups
Corporate Director Regeneration
Contact Officer: Nick Howbridge Telephone No.: 612818
Officer Interests: None
Background Documents: - A list of background documents must be included. These documents are then available (if not exempt) for public inspection.
Page 8 of 10 Page 110 of 238 Implications Matrix
This section must be completed and you must ensure that you have fully considered all potential implications
This matrix provides a simple check list for the things you need to have considered within your report
If there are no implications please state
I have informed and sought advice from HR, Yes Legal, Finance, Overview and Scrutiny and the Climate Change Advisor and any other key stakeholders i.e. Portfolio Holder, relevant Ward Members etc prior to submitting this report for official comments I have considered whether this report Yes requests a decision that is outside the Budget and Policy Framework approved by Council Value for money considerations have been Yes accounted for within the report
The report is approved by the relevant Yes Assistant Director I have included any procurement/commercial Yes issues/implications within the report
I have considered the potential media interest Yes in this report and liaised with the Media Team to ensure that they are briefed to respond to media interest. I have included any equalities and diversity Yes implications within the report and where necessary I have completed an Equalities Impact Assessment and the outcomes are included within the report Any Health and Safety implications are Yes included within the report Any human rights implications are included Yes within the report I have included any community safety Yes implications and paid regard to Section 17 of the Crime and Disorder Act within the report I have liaised with the Climate Change Yes Advisor and any environmental and climate change issues/sustainability implications are included within the report
Page 9 of 10 Page 111 of 238 I have included information about how this Yes report contributes to the City Plan/ Area priorities within the report I have considered the impact on air quality, Yes carried out an appropriate assessment and included any resulting actions or opportunities necessary to improve air quality in the report.
Page 10 of 10 Page 112 of 238
Report to the Cabinet
Wards : All 23 November 2020
Corporate Parenting Strategy
Report of the Director of Children and Family Services
This item is not exempt
This is a non-key decision.
1. Purpose of the Report and Summary
1.1 To propose agreement to the draft Corporate Parenting Strategy in order to provide a renewed focus upon Corporate Parenting across the Council.
2. Recommendations
2.1 That the Corporate Parenting Strategy appended to this report be approved.
3. Reasons for Recommendations
3.1 The Corporate Parenting Strategy articulates the Council’s proposed approach toward achieving the vision that “Every child and young person in our care to achieve the best possible outcomes with the opportunities to enjoy life, be safe from harm and to have the support they need to help them be successful adults”
3.2 The Strategy will be supported by an Action Plan identifying the actions proposed to deliver that vision so as to ensure that looked after children:
(a) will be involved in decision making in relation to their care plans (b) will be provided with safe, comfortable and loving homes (c) will receive a good education (d) have their health needs met (e) be provided with access to positive cultural, leisure and sport activities, and
Page 1 of 8 Page 113 of 238 (f) move into adulthood
3.3 Approval of the strategy by Cabinet will ensure that Council resource is aligned to achieving the vision.
3.4 The Corporate Parenting Board has advised that the Cabinet adopt the Strategy.
4. Impact on other Executive Committees (including Area Committees)
4.1 The Corporate Parenting Board is an advisory body who can make recommendations to the Council’s executive committees, specifically around ways in which the Council can improve the life chances and meet the needs of Children Looked After and Care Leavers.
5. Background
5.1 The Corporate Parenting Board was first referenced in the Children Act 2004. Subsequent guidance issued for Local Authorities in 2018 ‘Applying corporate parenting principles to looked-after children and care leavers’ states that:
Strong corporate parenting means strong leadership, challenge and accountability at every level. The quality of support can be measured in how the child or young person experiences the support they receive and the extent to which they feel listened to and taken seriously. To that end, many top tier local authorities have established Corporate Parenting Boards or Panels to look strategically at the way in which their looked-after children and care leavers experience services. Feedback from looked-after children and care leavers is an important way in which local authorities can consider how effectively the corporate parenting principles are being applied when exercising functions in relation to these young people.
5.2 The guidance further states that in order to thrive, children and young people have certain key needs that good parents generally meet. The corporate parenting principles set out seven principles that local authorities must have regard to when exercising their functions in relation to looked after children and young people, as follows:
• to act in the best interests, and promote the physical and mental health and well-being, of those children and young people • to encourage those children and young people to express their views, wishes and feelings • to take into account the views, wishes and feelings of those children and young people • to help those children and young people gain access to, and
Page 2 of 8 Page 114 of 238 make the best use of, services provided by the local authority and its relevant partners • to promote high aspirations, and seek to secure the best outcomes, for those children and young people • for those children and young people to be safe, and for stability in their home lives, relationships and education or work; and • to prepare those children and young people for adulthood and independent living.
5.3 The detail of what local authorities must do to effectively care for looked-after children and care leavers is addressed through existing legislation, regulations and accompanying statutory guidance. The corporate parenting principles are intended to inform how a local authority carries out those existing responsibilities, whether that is about assessing a looked after child’s needs or listening to and taking account of the wishes and feelings of care leavers. The principles are intended to encourage local authorities to be ambitious and aspirational for their looked-after children and care leavers.
5.4 The Corporate Parenting Board has considered the draft Corporate Parenting Strategy and advised that Cabinet commit to adopt the Corporate Parenting Strategy contained therein
6. Issues for Consideration
6.1 The recent findings from the Ofsted Monitoring visit published in a letter to the Council stated that:
‘Corporate parenting is not strong enough, nor sufficiently focused on what it means to be a child in care in Hull. Issues raised by inspectors on this visit were not known about, and there has been insufficient challenge by senior leaders to drive improvements and ensure that services for children are properly funded and supported’.
6.2 Informed by the findings the Corporate Parenting Board reviewed its terms of reference and recommended to Council for revision. The proposals were considered at Council on 17 th September 2020 and approved.
6.3 While the duty to have regard to the principles applies only to local authorities, other agencies play an important role in supporting them to carry out their responsibilities to be a good parent. In its revised form the Board comprises non-voting membership from key officers across the Council and public sector partners, as well as representatives of young people and foster carers to complement the voting membership, reserved to Councillors.
Page 3 of 8 Page 115 of 238 6.4 The Board also recommended that Cabinet approve implementation of the Corporate Parenting Strategy which sets out the actions considered necessary to ensure that looked after children:
(a) will be involved in decision making in relation to their care plans (b) will be provided with safe, comfortable and loving homes (c) will receive a good education (d) have their health needs met (e) be provided with access to positive cultural, leisure and sport activities, and (f) move into adulthood
6.5 Cabinet are invited to consider and approve the Strategy.
7. Options and Risk Assessment
7.1 Option 1 – Approve the Corporate Parenting Strategy .
The proposed Corporate Parenting Strategy sets out a clear articulation of the vision for looked after children in the city, together with an Action Plan through which it is intended that that vision be achieved. The Strategy provides a clear framework to which the organisation as a whole can be held accountable to address the concerns raised by Ofsted in relation to the adequacy of focus upon what it means to be a child in care in Hull.
This option is recommended.
7.2 Option 2 – Do not approve the Corporate Parenting Strategy
This would provide no clear strategy framework for Corporate Parenting to address the issues raised by Ofsted.
This option is NOT recommended.
8. Consultation
8.1 Consultation has taken place with the Corporate Parenting Board and Early Support and Lifelong Learning Overview and Scrutiny Commission on 14 th September 2020.
9. Comments of the Monitoring Officer (Director of Legal Services and
Page 4 of 8 Page 116 of 238 Partnerships)
9.1 The Strategy is aligned with the statutory guidance “Applying corporate parenting principles to looked-after children and care leavers” issued to local authorities in 2018. Accordingly the proposals are supported.
10. Comments of the Section 151 Officer (Director of Finance and Transformation)
10.1 The recommendations are supported as an integral part of the Councils improvement journey following the Ofsted monitoring visit (SK).
11. Comments of Assistant Director of HR & OD and compliance with the Equality Duty
11.1 The duty of an officer as corporate parent is written in to job descriptions and covered as part of corporate induction. The board has always been supported by the corporate equalities team to ensure that equality impacts are considered as part of decision making.
12. Comments of Overview and Scrutiny
12.1 This report will be submitted to a meeting of the Overview and Scrutiny Management Committee prior to its submission to Cabinet and Full Council (Ref: Sc5719).
13. Comments of the Portfolio Holder
13.1 I am assured that this strategy assists in supporting our roles and responsibilities to our children looked after and care leavers.
Director of Children and Family Services
Contact Officer Niki Clemo Telephone No.: 61
Officer Interests: None
Background Documents: - A list of background documents must be included. These documents are then available (if not exempt) for public inspection.
Page 5 of 8 Page 117 of 238 Applying corporate parenting principles to looked-after children and care leavers Statutory guidance for local authorities, February 2018
Working Together to Safeguard Children - A guide to inter-agency working to safeguard and promote the welfare of children, July 2018
Page 6 of 8 Page 118 of 238 Implications Matrix
This section must be completed and you must ensure that you have fully considered all potential implications
This matrix provides a simple check list for the things you need to have considered within your report
If there are no implications please state
I have informed and sought advice from HR, Yes Legal, Finance, Overview and Scrutiny and the Climate Change Advisor and any other key stakeholders i.e. Portfolio Holder, relevant Ward Members etc prior to submitting this report for official comments I have considered whether this report Yes requests a decision that is outside the Budget and Policy Framework approved by Council Value for money considerations have been No accounted for within the report
The report is approved by the relevant Click here to enter Assistant Director I have included any procurement/commercial Yes issues/implications within the report
I have considered the potential media interest Yes in this report and liaised with the Media Team to ensure that they are briefed to respond to media interest. I have included any equalities and diversity Yes implications within the report and where necessary I have completed an Equalities Impact Assessment and the outcomes are included within the report Any Health and Safety implications are Yes included within the report Any human rights implications are included Yes within the report I have included any community safety Yes implications and paid regard to Section 17 of the Crime and Disorder Act within the report I have liaised with the Climate Change No Advisor and any environmental and climate change issues/sustainability implications are included within the report
Page 7 of 8 Page 119 of 238 I have included information about how this Yes report contributes to the City Plan/ Area priorities within the report I have considered the impact on air quality, Yes carried out an appropriate assessment and included any resulting actions or opportunities necessary to improve air quality in the report.
Page 8 of 8 Page 120 of 238
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Page 121 of 238 Contents
Page
Foreword and Introduction 3
Section 1 – What we will do 5 1. Vision 5 2. Objectives and promise to children in care 5 3. Principles 7 Section 2 – Making it happen 8 4. Leadership and governance 8 10 5. Roles and responsibilities 13 Section 3 – Our vision and aspirations 14 Section 4 – Appendices 14 Appendix 1. Care Leavers’ Promise 17
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Foreword and Introduction
Looking after the children and young people in our care is one of the most important things councils do. ‘Corporate Parenting’, is the term used to refer to the collective responsibility of the council to provide the best possible care and protection for children and young people who are ‘looked after’ or leaving care.
“Once a child is in care all members and officers of the council, as their corporate parents, need to be concerned about that child What’s important to children and young people in our care? as if it were their own. This concern should encompass their education, their health and welfare, what they do in their leisure time and … help with finding a home holidays, how they celebrate their culture and how they receive praise and encouragement for … listening to what we want their achievements” … seeing more of my family [‘If this were my child, Department for Education and Skills (DFES) 2003]
Hull City Council is the corporate parent and grandparent to over 800 children and young people and we have high aspirations for every one of them. As responsible parents we care about our children’s safety, health, their education and their leisure interests, their friendships and their futures.
Corporate parenting requires a high level of commitment from across the council and the support of all council employees and elected members as well as partner agencies. In Hull we have strengthened the corporate parenting role to provide a demonstrable commitment to improving outcomes for the children and young people in our care.
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Page 123 of 238 The Corporate Parenting Strategy describes how we will develop our current arrangements and is built around a vision and set of principles, which form the basis for all the work we do. The strategy covers six key objectives.
The Corporate Parenting Strategy is supported by Hull City Council’s Children in Care Sufficiency Plan, which describes how we secure accommodation within the local area to meet the needs of looked after children and care leavers.
The strategy is also supported by the Early Help & Intervention Framework which seeks to support families to stay together, where it is safe to do so, by ensuring that children in need and their families are provided with the help they need at the earliest opportunity. In circumstances where ‘care’ cannot be avoided we will apply the principle to achieve a speedy rehabilitation with the birth family in a way that safeguards the child and promotes the child’s well-being.
Pauline Turner Councillor Peter Clark Matt Jukes Director of Children, Young Chair of the Corporate Parenting Chief Executive People and Family Services Board and Portfolio Holder for Learning Skills and Safeguarding Children
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Page 124 of 238 What we will do
1. Vision
We want every child and young person in our care to achieve the best possible outcomes with the opportunities to enjoy life, be safe from harm and to have the support they need to help them be successful adults.
We want all children and young people in our care to grow up in a loving and safe home; having a healthy and fun childhood. We want them to do their best at school, succeed in whatever they put their mind to and to be able to access excellent help and support when they need it. We want them to have their ideas and views heard and taken seriously in helping to decide and plan what they need. We want them to be active citizens and enjoy living in a city which welcomes and treats all people fairly and equally and does not tolerate any form of discrimination.
2. Objectives and Promise to Children in Care
The children and young people in our care tell us that they don’t want to be treated differently from other children and young people. They want to develop trusting relationships with the people who have responsibility for their care and to know where to go if they have problems.
In 2014, the Young Voices Influencing Care group agreed a pledge with the council. This was reviewed and amended in 2019 into a ‘promise’. The promise informs the corporate parenting objectives:
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Page 125 of 238 1. Ensure that children, young people and their OUR PROMISE carers are central to and actively participate in The Promise to children and young people in care was decision making around their care plans and for developed by members of Young Voices Influencing Care in 2019 and consulted on widely with children and any changes to the support they receive. young people in care. It sets out Hull City Council’s Corporate Parenting Board’s commitment to children 2. Work with looked after children and care and young people in our care. leavers to make sure they feel safe and comfortable in their home environment. We promise to work with you to make sure
you feel safe and comfortable in your home 3. Make sure that all looked after children and environment. care leavers receive a good education from We promise to provide suitable contact arrangements with family members who are early years to further education. important to you. We promise to work alongside your family and 4. Address the health needs of looked after support you to return home if it is in your best children and care leavers with easy access to interest. mainstream services and specialist services We promise to encourage you to get involved where necessary. in clubs and activities so that you can make
new friends and develop your interests. 5. Provide opportunities for children and young We promise to keep you safe from harm where you live, at school and in the city. people to have positive experiences and We promise to support you with any health access to cultural, sports and leisure and emotional needs. opportunities. We promise to help you do your best at school and give you support when you need it. 6. Help young people successfully move into We promise to support you in taking up adulthood at a time that is right for them. employment, education or training
opportunities after you leave school.
We promise to support you to become independent successful adults with access to appropriate accommodation when you need it.
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1. 3. Principles
The following principles underpin our approach to corporate parenting. We will:
Ensure that, if a child has to enter care, the first consideration will be given to a family placement. In circumstances where care cannot be avoided the aim will be to achieve a speedy rehabilitation with the birth family in a way that safeguards the child and promotes the child’s well-being. Ensure that when being looked after, sibling groups are placed together wherever possible, unless their individual needs determine this to be inappropriate. Help children develop effective relationships with their carers and to maintain contact with brothers, sisters and birth parents/families in line with their care plan. We will also work with carers to help increase their emotional resilience and practical skills in caring for vulnerable children, particularly those with complex needs. Be ambitious for all our children and young people encouraging and supporting their personal development in order to ensure that they maximise their potential. Ensure that children and young people have an allocated qualified social worker and that there is a clear understanding of their life events, assessment of needs and care or pathway plan with clear plans in place to work with the child, young person and their parent/carer to regularly review and update them. Work with internal and external partners to provide integrated, high quality, equitable services. Take into account the views of children, young people, parents and carers in planning and running services which affect them. We will do this in a variety of ways including introducing a ‘Dear Corporate Parent’ letter for looked after children reviews in order to offer children a direct feedback route to the corporate parenting board.
In addition to these principles the council is developing its promise to Care Leavers.
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Making it happen The children and young people in our care are some of the most vulnerable in society. The national picture shows that outcomes for children and young people who are in or have left care, tend to be worse than for their peers. By the age of 19, care leavers are roughly twice as likely, not to be in education, training or employment than the rest of the population with only 6% of them in higher education, compared to roughly 30% of young people nationally. Sadly, 20% of young homeless people and 24% of the adult prison population were previously in care.
As corporate parents and grandparents we want to make sure that these children and young people realise their full potential and that we set high ambitions for them; listen to them, help them raise their aspirations and encourage others to open up more opportunities for them.
4. Leadership and governance
1. The Role of Elected Members The leadership and commitment of elected members is of critical importance in achieving good outcomes for children and young people in our care. While everyone working with children in care contributes in a shared way to corporate parenting, councillors set the vision and hold officers to account for the delivery of high quality services.
We will develop the roles and responsibilities of elected members, as well as senior officers, to ensure that appropriate priority is given by the council to the support and resources that are made available to these vulnerable children and young people.
Elected members and senior officers will ensure that, when considering new policies or strategies or decisions around the commissioning/delivery of services, they consider the impact it may have on children and young people in care or care leavers. In addition, scrutiny commissions will play a role in reviewing the performance of services directly and indirectly influencing the lives of the children and young people in our care.
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Page 128 of 238 We will encourage members, in their corporate parenting role, to pledge to visit children’s homes and the services provided in their local areas to ask whether we are making a difference, to visit social care offices at least once every quarter, to attend regular development sessions with young people, to participate in young person-led voice and influence training every three years, and to attend shadowing opportunities as part of the corporate parenting and safeguarding programme. We will also encourage elected members who are school governors to access specific advice and support in relation to that role.
To demonstrate our commitment to children and young people in or leaving care, all elected members, staff, and foster carers will be required to sign the Promise to Children in Care and the Care Leavers’ Promise.
2. Governance
The Corporate Parenting Board was established in 2011 to assist the council in carrying out all their statutory duties. The board is a multi-agency forum made up from a cross party representation of elected members, senior officers from the council, representatives from looked after children, carers and partners.
In 2019, a review of the Corporate Parenting Board resulted in a renewed focus and a review of membership to allow for greater understanding of the experiences of children and young people in our care, care leavers and carers.
The board will oversee the implementation of the Corporate Parenting Strategy. Board members will regularly monitor performance to identify where success is being achieved and where further improvements are required. A performance framework will support the strategy and provide the platform for identifying further developments.
The Corporate Parenting Action Plan will be reviewed annually with the board agreeing its priorities for the following year in consultation with looked after children and care leavers.
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Page 129 of 238 We will know we are good Corporate Parents when …
Children, young people and their families tell us we’ve made a difference More children and young people are in stable long term placements in their local area More children and young people achieve their potential Children and young people experience improved health outcomes Children and young people feel safe in their homes and communities More young people leaving care are in appropriate accommodation, employment, education or training
5. Roles and responsibilities Councillors All councillors are in the unique position to promote opportunities for our children looked after and young people leaving care through their political power and influence, their connections to the community, schools, health services, local businesses, employers and voluntary organisations. Good corporate parenting and grandparenting requires ownership and leadership at the most senior level. As corporate parents and grandparents, it is the responsibility of all elected members that there is a joined up, effective and holistic approach to meeting the needs of looked after children and young people leaving care through policy and planning. When policy is being set or plans are agreed it is important to consider opportunities for improving outcomes for children looked after and young people leaving care.
All Council Services All council officers have a shared corporate parenting responsibility and can make an important collective contribution to corporate parenting and grandparenting in how it can deliver better opportunities for children looked after and young people leaving care up to the age of 25 years. Our 10 Top Tips for all council officers written by our children and young people about what it means to be good corporate parents and grandparents are listed below.
Virtual School The Virtual School plays a key strategic role to make sure that the corporate parenting responsibilities of Hull City Council, with regard to the education of children who are looked after
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Page 130 of 238 are met. The service promotes achievement, raises attainment and ensures equality of opportunity to enhance the life chances of all our children who are looked after.
Schools, Colleges and other Education Providers Our partners have a range of responsibilities including ensuring that every looked after child has a Personal Education Plan (PEP) and is supported to achieve their potential. Supporting looked after children and young people leaving care in school, college and university. School governors have statutory responsibilities which include monitoring the progress made by looked after children. Schools must engage with the Virtual School and respect of their cooperating parenting role.
Health Service Providers Health providers have important responsibilities for improving the health, both physical and psychological, of all looked after children. Health assessments must be undertaken and specialist nurses for looked after children must ensure that Personal Health Plans (Health Passports) are developed with the child or young person and that they are fully implemented.
Police and Youth Offending Service Reducing offending is the joint responsibility of the Police, Children’s Services and the Youth Offending Team and to maximise the role of corporate parenting and achieve the best life chances for this vulnerable group of young people. The Hull children looked after and reducing criminalisation protocol and procedures ensures effective inter-agency planning and the active involvement of all relevant agencies/services. Where concerns were raised in relation to behaviours which could result in entry in to the criminal justice system the following procedures would be followed: Restorative Principles; Learning and Development; Practice Individual Service Responsibilities.
Housing Providers All housing providers have an essential role to play in providing young people leaving care who are ready to live more independently with good quality accommodation. The council and other
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Page 131 of 238 landlords work together to ensure that young people are supported to find appropriate properties which meets the needs of young people and is affordable to them.
Community Organisations There is a wide range of community organisations who provide important services and support for looked after children and young people leaving care, including advice and guidance, mentoring, supported housing and drug and alcohol services. These services are vital for preventing young people leaving care needing the intervention of statutory services.
Corporate Parent and Grandparent Top Tips
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Page 132 of 238 Our vision and aspirations Our vision is for: “Every child and young person in our care to achieve the best possible outcomes with the opportunities to enjoy life, be safe from harm and to have the support they need to help them be successful adults.”
We want all children and young people in our care to: grow up in a loving and safe home have a healthy and fun childhood do their best at school succeed in whatever they put their mind to be able to access excellent help and support when they need it have their ideas and views heard and taken seriously in helping to decide and plan what they need be active citizens and enjoy living in a city which welcomes and treats all people fairly and equally and does not tolerate any form of discrimination
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Page 133 of 238 Appendix 1 – Care Leavers’ Promises 2019
The Care Leavers’ Promises have been co-produced with young people who access support via ‘Room 42’ and consulted on with young people.
Young People visited a number of local authorities to understand how young people from other areas have developed a document that captures what Corporate Parenting is and what this means to young people.
The Promises have been developed with our Care Leavers Champion, Regenerations Champion and a representative group of young people. It has also been presented in draft to young people from all over the country via the Young People’s Benchmarking Forum. Young people gave this their resounding approval and similar documents have been adopted elsewhere. The promises have been written from the perspective of a parent to their child and in the spirit of Good Corporate Parenting taking into account that as a responsible authority we should be striving to provide services and support that ‘would be good enough for our own children’.
They reflect the commitment to our young people as their champions to continually strive to achieve great things and endeavour to make positive progress into their adult lives.
They make a strong statement in terms of Hull’s ongoing commitment to have high aspirations for the young people we bring into our care.
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Report to Cabinet 23 rd November 2020
Wards: All
Merger of the Coroners Service
Report of the Director of Legal Services and Partnerships .
This is a key decision. The matter is in the Forward Plan Forward Plan Number 069/19
1. Purpose of the Report and Summary
1.1 To seek approval to pursue the merger of the current Coroners Service area of Hull and the East Riding, with the areas North Lincolnshire and North East Lincolnshire.
1.2 To seek approval to pursue the proposal of a new ‘Humberside’ Coroners Service with the Ministry of Justice, aligning to the Chief Coroners Guidance relating to Mergers of Coroner Areas.
2. Recommendations
2.1 That Cabinet provide the making of an application to the Chief Coroner for the merger of the two current coroner areas cover the area Humber, namely East Riding and Hull area, and North Lincolnshire area (which covers North and North East Lincolnshire), to create a new integrated Humberside coroner area informed by such consultation responses as may be received from the four Local Authorities.
3. Reasons for Recommendations
3.1 Merger of the two coroner’s services is consistent with national guidelines for the operation of a Coroner’s service, that it should manage between 3000 and 5000 deaths annually.
3.2 Merger will provide a larger pool of coroner’s officers will provide improved performance of inquests and greater resilience for all four named local authorities.
3.3 Merger aligns to the Humberside Police force area, Humberside Fire Service and the Humber Local Resilience Forum providing opportunities to enhance working practices and continue the
Page 1 of 32 Page 139 of 238 necessary relationships between key stakeholders, with a focus on the Humber Estuary.
3.4 The Covid 19 pandemic has highlighted the importance of consistent processes with emergency services in the Humberside area, to deliver effective emergency planning for excess deaths, or a response to a mass fatalities situation.
3.5 The proposed arrangements are consistent with the health structures, as currently families who live on the south bank of the Humber have to travel to Hull, if the deceased dies at the Hull Royal Infirmary in any event.
3.6 A larger pool of pathologists and mortuary facilities to ensure post-mortems are dealt with locally and in a timely manner across the Humber region.
3.7 Merger creates the potential for cashable savings as four local authorities share the cost of a Senior Coroner and Area Coroner, and further financial savings through adoption of improved technology and systems and resources as processes and procedures are harmonised.
4. Impact on other Executive Committees (including Area Committees)
4.1 The Coroners Service is used by all Hull residents and therefore no further impact on other Executive Committees
5. Background
5.1 Hull is the lead authority providing a coronial service for the East Riding and Hull area. 2932 deaths were reported to the Hull and East Riding Coroner in the calendar year of 2019, and the service conducted 276 inquests. Due to the number of deaths reported and the complexity of cases, the service is delivered by a full time Senior Coroner, and an Area Coroner.
5.2 The Senior Coroner, Area Coroner and Assistant Coroners are positions which are appointed by the local authority, however they work to the Chief Coroner as part of the Ministry of Justice. The local authority has a duty to provide coroners officers, administrative support and suitable accommodation for the Senior Coroner to undertake his/her duties to the local community.
5.3 In 2017 the Chief Coroner revised guidance to assist local authorities and police authorities as to the nature, scope and organisation of a model coroner area. The guidance included consideration to the size of the model coronial area, staff support, accommodation, and customer service. The ultimate aim being to reduce the number of coronial areas nationally, to create greater resilience and efficiencies
Page 2 of 32 Page 140 of 238 for local authorities, police and mortuary services.
The Senior Coroner for the North Lincolnshire area, covering North 5.4 East Lincolnshire and North Lincolnshire, retired in December 2018. A temporary part time coroner is currently in place. This allows scope to review the coronial arrangements of the Humberside Area to determine the potential efficiencies to neighbouring local authorities and benefits to Humberside residents .
N Lincolnshire and NE Lincolnshire are considering two options, a 5.5 merger with East Riding and Hull coronial area, and also the option of a merger with the Lincolnshire coronial area.
Applications to merge two or more coroner areas are considered by 5.6 the Lord Chancellor, through the Ministry of Justice (MoJ) in the form of a business case. The Lord Chancellor formally consults with all relevant stakeholders following receipt of an application.
6. Issues for Consideration
6.1 The business case proposes the creation of a new Humberside coroner area, led by the current Senior Coroner for the East Riding and Hull Area. Appendix 1 shows a map of the new proposed area, merging the East Riding and Hull area with the North Lincolnshire area reflecting the footprint for police, fire and rescue, local resilence and hospital services for the area. Under such arrangements the Senior Coroner would manage the number of death referrals making best use of the current Area Coroner and assistant coroner resources.
6.2 Appendix 2 is the completed template business case for submission to the Chief Coroner, including responses to set questions identifying the potential benefits that are expected to arise from a merger, and articulating the proposed service delivery arrangements for the proposed Humberside Area.
6.3 The proposal includes the TUPE transfer of the team of four coroner’s officers currently employed by North East Lincolnshire Council into the employment of Hull City Council. However, the proposal is that the staff remain in situ, to continue to deliver the service within the south bank of the Humber. This is to be finalised following further discussions with North Lincolnshire Council.
Page 3 of 32 Page 141 of 238 6.4 National guidance suggests the optimal size for a Coroner’s Services is between 3,000 – 5,000 reported deaths. In the previous calendar year of 2019, 2936 deaths were reported to the Hull and East Riding District, and 1741 to North and North East Lincolnshire. Continuation of North and North East Lincolnshire in isolation is not likely to be considered viable. Following the submission of the Hull proposals to North and North East Lincolnshire in January 2020, those authorities have therefore indicated their intention to bring forward an alternate proposal for merger with Lincolnshire.
6.5 The proposed merger is believed to provide a number of benefits for all four local authorities. Harmonisation of processes across the Humberside region with pooled resources, enables a single co-hesive approach with the local resilience forum, and the associated police, fire and rescue and health services and avoids the need for those organisations to operate within two alternate sets of processes (for Humberside and Lincolnshire). It also has the potential improve the bereavement process for families, particularly the timelessness of death registrations. A greater capacity of mortuary facilities, and access to a wider pool of pathologists provides flexibility terms of resilience of the service to ensure post mortems are delivered in a timely manner. In practice there is no current post mortem service in Lincolnshire. A greater pool of assistant coroners will provide a timely delivery of inquests held.
6.5 Cohesive operation across the Humber through the local resilience forum has been invaluable in response to the Coronavirus panedemic working closely with Humberside emergency services. A comprehensive and robust response on a Humber footprint to provide for potential excess deaths across the region through the establishment of temporary mortuary facilities.
6.6 Good working relationships across the Humber are necessary when a suspicious death occurs in the River Humber to avoid conflict in relation to responsibilities. This will also be necessary in the event of the management of mass facility across the Humber footprint.
6.7 The computer system used by the officers at Hulls Coroners Service, allows staff to work flexibly, at different locations to deliver the service locally, and to be managed remotely. This also allows further developments of digital communications with medical practitioners and the police in the near future, creating further efficiencies for the Humberside area through transfer of the Coroner’s service to a Cloud delivery model. This will facilitate regional working from a pooled staff resource across the region aiding operation as a single coronial area facilitating effective emergency planning. The North Lincolnshire Authorities presently operate the legacy local software system that the Hull replaced some years ago. The intention would be to transition the service onto the single platfom. The experience the Council gained from undertaking that transition some years ago
Page 4 of 32 Page 142 of 238 will assist ensure such transition can be undertaken smoothly.
6.8 In response to the pandemic the Coroner’s Service invested in the installation of the infrastructure and software to enable Coroner’s Hearings to be managed on-line through video conferencing, minimising attendance at the hearing (eg to the jury) and allowing for witnesses to be joined in remotely with the hearings recorded to allow for family members who are not able to attend to review the hearing. This limits the need for travel to the court and may address concerns in relation to hearings being conducted in Hull.
6.9 The Hull and East Riding Coroner chairs the Mass Fatalities Panel within the Local Resilience forum and wishes to ensure an integrated operational model for response to emergency planning in conjunction with Humberside Police.
6.10 Appended at Appendix 3 is the performance of each coroner area for the period 2015 to 2019.
7. Options and Risk Assessment
Page 5 of 32 Page 143 of 238 7.1 The business cases has highlighted the following risks;
Risk Mitigation Insufficient capacity to Senior Coroner for Hull and East Riding, deliver the merged service. has in previous years managed the role over a greater area. Professor Marks managed the area of Bradford in addition to Hull and East Riding in 2013 for 18 months. The use of the Area Coroner and experienced Assistants are already in place to support the wider area. Potential changes to the IT system and working electronically will enable coroner’s office staff to meet the demands of the new area. Failure of operations, New robust practices and processes, and systems or processes how the new service will be managed, will be agreed as part of an SLA. Negative response by staff To ensure they are formally consulted and affected by the merger. included in any proposals, and their views are taken into account. Insufficient initial investment The only investment will be in the IT required to operate the system. An initial quote has been sought merged service. as £8000 to transfer N/NE Lincolnshire’s data to a new system, which includes staff training etc. Full cost implications will need to be considered and agreed by all 4 local authorities. The quality of service drops To ensure that processes and policies are designed and implemented to ensure there is a seamless service to all customers, and impact is minimal. Loss of staff Potential that some staff seek alternative employment if they are not fully engaged. Important to consult at the earliest stage following approval of the merger, and ensure staff understand the benefits of the proposal. Customers, stakeholders To ensure there is a clear communications confused as merger takes plan, as part of the implementation phase, place and processes with key stakeholders and information is change clear to customers The merger decision is To ensure all Members are informed of the influenced by wider local benefits realised of one coronial area political decisions, rather around the Humber estuary, and business than the best interests of case details in support of the merger. bereaved families and the importance of effective partnership working between the LAs and emergency services.
Page 6 of 32 Page 144 of 238 7.2 The ultimate decision is not a decision for the Council but for the Chief Coroner having considered the available options. The “do nothing” option is not consistent with national guidance for the North Lincolnshire Coroner’s Service. That service does not have the critical mass to operate independently. The Chief Coroner in his judgement will need to consider the respective merits of alternate options for North Lincolnshire. To that end the Council shared its business case with North Lincolnshire in January 2020. It is understood that an alternate business case is being prepared to present to the Chief Coroner. The Chief Coroner will need to consider the two alternates when coming to his decision.
7.3 While the Hull and East Riding Coroner’s Service can continue to act independently, to merge the North Lincolnshire service into the Hull and East Riding Service is perceived to offer significant benefits, on the basis of the service continuing to operate from its existing base in the city of Hull with access to the Guildhall courts and the hospital and mortuary provision in and adjacent to the city.
8. Consultation
8.1 The Council prepared the business case in 2019. The business case was shared in January 2020 with interested parties prior to submission to the Chief Coroner for decision.
8.2 The Hull University Teaching Hospital, who deliver the Hull Mortuary Service have advised that they are supportive of the merger, as it adds further resilience to the pathology resource for post mortems. The Hull mortuary has the capacity and resource to undertake more post mortems for N Lincolnshire and NE Lincolnshire. There is no provision for undertaking post mortems in Lincolnshire. Post mortems in Lincolnshire have historically been referred to Leicester.
8.3 The Chief Constable of Humberside Police has confirmed in writing that he is believes the proposed merger would be a positive step to continue to provide a consistent service to bereaved families in the area.
8.4 The Humber Local Resilience Forum, under the chairmanship of chaired by the Chief Fire Officer, Humberside Fire and Rescue Services, have welcome the merger, as it provides a consist approach to emergency planning for the Humber area,
Page 7 of 32 Page 145 of 238 8.5 The business case was presented to the three Humber Local Authorities in January 2020. East Riding of Yorkshire Council have confirmed their support for the proposals. North Lincolnshire and North East Lincolnshire advised that they wished to consider the development of an alternate business case based upon a Lincolnshire footprint. As yet such an alternate business case has not been developed and shared with Hull City Council. The Councils have however, shared the business case attached with the staff impacted by the proposal and have confirmed that staff have been consulted. They have advised that until they have prepared an alternate business case for a Lincolnshire solution it is not their intent to present a report to their respective Cabinets. They wish to ensure that their Cabinets are appraised of all the options, arguing that absent consideration of an alternate Lincolnshire option the preparation of a formal consultation response to inform the decision of the Chief Coroner would be unsafe.
8.6 In practice the decision is a decision for the Chief Coroner. He will formally consult with all relevant stakeholders, and the comments of North East Lincolnshire and North Lincolnshire will be provided to him at that time. A list of stakeholders identified are listed at Annex B of the business case.
9. Comments of the Monitoring Officer (Director of Legal Services and Partnerships)
9.1 The Council’s formal support for the business case is required to enable the Chief Coroner to consider the proposal. The proposal is fully supported by the Director of Legal Services and Partnerships.
10. Comments of the Section 151 Officer (Director of Finance and Transformation)
10.1 As the report sets out, the proposed agglomeration of Coroner’s services across the former Humberside area would appear to offer both operational advantages and some modest economies of scale, as well as being consistent with national moves to rationalize the number of coronial areas operating across the country. This being the case, endorsement by the Council of the proposed application to the Chief Coroner in support of such a merger would appear to be reasonable. The potential transfer of a small number of staff to the Council under TUPE arrangements in the event that the merger takes place is noted. (BF)
11. Comments of Assistant Director of HR & OD and compliance with the Equality Duty
Page 8 of 32 Page 146 of 238 11.1 There would be a transfer of staff to the Council, this has implications in terms of future liability for any staffing reductions in terms of costs, also a potential for a small increase in business travel if staff are managed across a wider region. There are benefits for some with protected characteristics in terms of having a more flexible service.
12. Comments of Overview and Scrutiny
12.1 This report will be considered by the People and Communities Overview and Scrutiny Commission at its meeting of Thursday 12 th November 2020. Any comments or recommendations will be tabled alongside the report at Cabinet. Ref: Sc5884 [MK].
13. Comments of the Portfolio Holder of People, Communities, and Environment
13.1 The Portfolio Holder supports the proposal to make the application to facilitate the efficient management of resources within the framework of the national guidance to complement the organisation of impacted police, fire and rescue and health resources on a Humber footprint.
Ian Anderson Director of Legal Services and Partnerships
Contact Officer: Lisa Buttery Telephone No.: 01482 62212
Officer Interests: None
Background Documents: -
Appendix 1 – Map of the proposed Humberside Coroner Area Appendix 2 – Draft Business Case. Appendix 3 – Performance statistics
Page 9 of 32 Page 147 of 238 Implications Matrix
This section must be completed and you must ensure that you have fully considered all potential implications
This matrix provides a simple check list for the things you need to have considered within your report
If there are no implications please state
I have informed and sought advice from HR, Yes Legal, Finance, Overview and Scrutiny and the Climate Change Advisor and any other key stakeholders i.e. Portfolio Holder, relevant Ward Members etc prior to submitting this report for official comments I have considered whether this report Yes requests a decision that is outside the Budget and Policy Framework approved by Council Value for money considerations have been Yes accounted for within the report
The report is approved by the relevant N/A Assistant Director I have included any procurement/commercial Yes issues/implications within the report
I have considered the potential media interest Yes in this report and liaised with the Media Team to ensure that they are briefed to respond to media interest. I have included any equalities and diversity No implications within the report and where necessary I have completed an Equalities Impact Assessment and the outcomes are included within the report Any Health and Safety implications are N/A included within the report Any human rights implications are included N/A within the report I have included any community safety N/A implications and paid regard to Section 17 of the Crime and Disorder Act within the report I have liaised with the Climate Change N/A Advisor and any environmental and climate change issues/sustainability implications are included within the report
Page 10 of 32 Page 148 of 238 I have included information about how this N/A report contributes to the City Plan/ Area priorities within the report I have considered the impact on air quality, N/A carried out an appropriate assessment and included any resulting actions or opportunities necessary to improve air quality in the report.
Page 11 of 32 Page 149 of 238
Page 12 of 32 Page 150 of 238 Appendix 2
Business Case for merging the East Riding and Hull Coroner Area and North Lincolnshire and Grimsby Coroner Area
Page 13 of 32 Page 151 of 238
Contents
1. Information on areas proposed to merge 2. Senior Coroner Appointment 3. Impact of proposed Merger on Service Delivery 4. Impact of merger on those working in the Service 5. Resource implications 6. Risks and Mitigation
Appendices
Appendix 1 – Map of the proposed Humberside Coroner Area Appendix 2 – Performance statistics Appendix 3 – Staff Structure charts (to be completed)
Page 14 of 32 Page 152 of 238 ALTERATION OF CORONER AREAS UNDER SCHEDULE 2 OF THE CORONERS AND JUSTICE ACT 2009 1 MINISTRY OF JUSTICE BUSINESS CASE TEMPLATE FOR MERGERS
NAMES OF CORONER AREAS THAT ARE PROPOSING TO MERGE
• East Riding and Hull Area, North Lincolnshire and Grimsby Area
PROPOSED NAME OF NEW AREA
• Humberside Area
1. INFORMATION ON AREAS THAT PROPOSE TO MERGE
• Please provide key details in the table as follows:
Coroner area East Riding and North Lincolnshire Proposed: Humberside Hull and Grimsby Geographical East Riding of North Lincolnshire Hull area covered Yorkshire and the and North East East Riding City of Hull Lincolnshire North and North East Lincolnshire Local authority/ Hull City Council North Lincolnshire To be discussed (TBD) authorities that 44% 49% fund(s) coroner North East area and % East Riding Council Lincolnshire 51% 56% Relevant Hull City Council North East Hull City Council authority Lincolnshire Council (formerly lead authority)
Police Force(s) Part of the Part of the The whole of the Humberside Region Humberside Region Humberside Region
Transport links Hull Docks A180 All combined Northern Rail Transpennine Services Services Hull Trains direct Grimsby Docks link to London South Humber Bank A63 to M62 Industries Immingham Docks Humberside Airport Major hospitals Hull Royal Infirmary Diana Princess of All combined Hull Children’s Wales, Grimsby Hospital Scunthorpe General Castle Hill Hospital, Hospital Cottingham St Hughes Hospital, Goole & District Grimsby Hospital Prisons in area HM Hull Prison none All combined
1 http://www.legislation.gov.uk/ukpga/2009/25/schedule/2
Page 15 of 32 Page 153 of 238 Coroner area East Riding and North Lincolnshire Proposed: Humberside Hull and Grimsby HM Wolds Prison HM Full Sutton Prison Other state none Humberside Police All combined detention Custody Suite (36 facilities cells)
Courtrooms/ 2 dedicated Courts Grimsby Town Hall All combined inquest venues at the Guildhall Hull Cleethorpes Town Hall North Lincolnshire Digital Court facility Civic Centre in place for remove participants. Office/staff Structure chart Structure Chart ( Combined to one accommodation (Appendix 3) Appendix 3) Humberside Area Team – location and Located at the Located at Structure. capacity Guildhall Hull Cleethorpes Town Location of staff to be Hall discussed. Smart working introduced to allow flexibility to location/ homeworking. Employer of coroner’s Hull City Council North East Hull City Council officers’ Lincolnshire Council
Name of senior Professor Paul Temporary part time Professor Paul Marks coroner Marks coroner Mr Kendall
Number of area One none One coroners
Number of Eight Two including one Ten assistant assistant Coroner coroners currently acting up as Senior Coroner Number of Eleven Four Fifteen coroner’s 7 Full time 1 Full time 8 Full time officers 4 Part time 3 Part time 7 Part time
Number of Three Assistant none Three administrative Coroners Officers support staff
Number of 2936 1741 Circa 4677 deaths reported in the previous calendar year (2019)
Inquests held in 276 114 390
Page 16 of 32 Page 154 of 238 Coroner area East Riding and North Lincolnshire Proposed: Humberside Hull and Grimsby the previous calendar year (2019)
Post mortem 32% 24% TBC rate as % of reported deaths in the previous calendar year (2019)
Please note attached map of the proposed area as Appendix 1.
2. SENIOR CORONER APPOINTMENT
• Why are you seeking a merger now (ie which area’s senior coroner is stepping down, when and why)?
The Chief Coroners Guidance No 14 - ‘Merger of Coroner Areas’ makes reference to three main areas of consideration, these are;
1. Number of reported deaths and complexity of cases 2. Removal of jurisdictions with one part time Senior Coroner 3. The process to appoint a new Senior Coroner
1. Number of reported deaths –
The guidance states that the number of Coroner areas should be reduced in order to create sensibly sized Coroner areas, taking into account the numbers of reported deaths, geographical size and types of Coroner work in the areas. In many cases 3,000 – 5,000 reported deaths would be an appropriate number.
In the previous calendar year of 2019, 2936 deaths were reported to the Hull and East Riding District, and 1741 to NE Lincolnshire and N Lincolnshire combined. A proposed new coronial area of the Humber would therefore report approximately 4,732 simply adding the two reported figures together. Appendix 2 provides coroner area statistics for the period 2015 to 2109. The report shows that they are fairly static, and therefore a combined area together being closer to that deemed appropriate by the Chief Coroner.
2. Removal of part time Senior Coroners –
Guidance No 14 states ‘there should be a move away from jurisdictions in which one Senior Coroner operates on a part time basis. It also states that the relevant authority should consider the needs of the newly merged area, the public interest and that terms can be agreed with the Coroner.
The Senior Coroner for NE Lincolnshire left the service in December 2018. There is currently a part time Acting Senior Coroner who was an Assistant Deputy for NE Lincolnshire in post for a temporary period. This resignation therefore allows a scope to review the coronial arrangements of the Humberside Area to determine the potential efficiencies to neighbouring local authorities and benefits to Humberside
Page 17 of 32 Page 155 of 238 residents. The merger will also enable cost effective development of the service and a resilient coroner service delivery model to replace the current situation in which the area employs one part time coroner.
3. Process to appoint a Senior Coroner
The Chief Coroner guidance states that the appointment of a Senior Coroner for a new area can be done in one of two ways;
‘Option 1 – The Relevant Authority may appoint one of the Senior Coroners from the old areas. Option 2 – The Relevant Authority can appoint a Senior Coroner following an open competition .. Relevant authorities are advised that Option 1 should usually be the preferred option’
The current Senior Coroner, Professor Paul Marks for Hull and the East Riding is very experienced Senior Coroner. Professor Marks managed two coronial areas in 2013. Whilst being the Senior Coroner for Hull and the East Riding he also managed the Bradford Area under a temporary agreement until a suitable replacement was found.
Paul Marks is an Honorary Consultant Neurosurgeon, a one of few Senior Coroners with a professional medical background. This has served the Hull and East Riding Area by efficiency savings in the need for expert medical witnesses to attend inquests, and a reduction in the number of post mortems required. This also has significant benefits in support for Assistant Coroners and coroners officers with mentoring and training in relation to medical knowledge.
As there is no other Senior Coroners employed in the proposed new area, it is proposed that option 1 is therefore adopted in this case and Professor Marks is appointed as the new Senior Coroner for the new Humberside area.
4. IMPACT OF PROPOSED MERGER ON SERVICE DELIVERY
• What will be the impact of the proposed merger on service delivery?
The current service delivery model in terms of how N and NE Lincolnshire residents access the coroners service, need not change, it is anticipated that current arrangements will be maintained to ensure there is no impact on service access, and that it continues to be delivered within the local community. However the recent installation of live video conferencing facilities to the Court room in Hull will add further benefits and choice to residents on the south bank of the Humber, regarding the location of the inquests.
However the creation of a larger team, and potential harmonisation of processes and better use of technology can only deliver efficiencies and improved performance for N and NE Lincolnshire residents. The proposed merger will also give the current N Lincolnshire and Grimsby coronial area better resilience to deliver the service, being such a small team, and additional resources to deal with fluctuations in service demand. It will also enable improved business continuity planning for the service as a whole.
Information of the deceased show that 113 deaths reported to the East Riding and Hull Coroner in 2018, resided at an address in N/NE Lincolnshire. In practical terms this means that a merger of the north and south bank of the Humber creates more choice for families to decide were best the inquest is held, or local face to face contact with a coroner’s officer.
Page 18 of 32 Page 156 of 238 It is clear that the recent pandemic situation has tested contingency plans and resilience of the continuation of critical services. The Humber Local Resilience Forum has experienced the four local authorities within the Humber region come together very effectively to agree an excess death plan and contingencies to maintain critical services, including the coroner’s service. Professor Marks has been at the heart of the discussions and decisions regarding temporary mortuary facilities etc, with lead officers from our authorities and emergency services. The relationship with key stakeholders has been crucial and particularly beneficial that Humberside police and Humberside fire services align to the Humber region. Having to communicate to two different regions at a time of an emergency would have been problematic.
Will additional coronial or administrative support be provided in the new area? (eg. will additional coroners need to be recruited or will workloads be increased/redistributed etc? How will additional caseloads be managed?)
Coronial Support - In terms of coronial support the merger benefits the North Lincolnshire and Grimsby area, having access to a full time Senior Coroner, full time Area Coroner and a larger pool of assistants, to manage the workload, respond to fluctuations in demand, and improve the timelessness of inquests held. The full time fixed cost of a senior coroner and an area coroner removes the unforeseen impact on budgets in the event of additional day rate inquests costs, which local authorities with part time coroner’s experience.
There is no dedicated administrative support within the current staff structure of the N Lincolnshire and NE Lincolnshire area. The East Riding and Hull Area have 3 administrative staff that are vital in the delivery of an efficient coroner’s office.
The Chief Coroners Guidance ‘A Model Coroner Area’ suggests that coroners and coroners officers should be supported by administrative support staff at a ratio of 3:1. The administrative staff should not usually be carrying out the work of coroners officers, purely administrative support for coroners and coroners officers. Therefore the current administrative resource within the East Riding and Hull Area can provide adequate support for the proposed new Humberside area.
What will be the impact of the merger on associated services – such as post-mortem examinations, and mortuary provision?
The merger to one coronial area would have a positive impact on all four local authorities in terms of resilience of service and longer term cost reduction in post mortem fees, as well as improved performance for families.
Hull City Mortuary is owned by Hull City Council and the Hull Teaching Hospital Trust are commissioned to provide a post mortem service for the East Riding and Hull Area. The hospital Trust provides an excellent post mortem service with a turnaround for delivering a coronial post mortem between 3 and 5 days of the request made by the coroner’s office. The North Lincolnshire and Grimsby Area has recently approached the Hull Mortuary with a request to make greater use of their post mortem services on a regular basis, and already use the service for complex post mortem cases.
East Riding and Hull coroner area would benefit from the use of another hospital such as the Diana Princess of Wales to conduct independent post mortems and vice versa, reducing the cost of independent post mortem fees for both areas.
The larger pool of pathologists in the new area would also improve current resilience and ensure the timeliness of post mortems is maintained, when it is known that nationally there is shortage.
Page 19 of 32 Page 157 of 238
Timeliness of post mortems has a significant impact on the whole bereavement journey for families, and affects performance of the local registration service, who endeavour to conduct the registration within 7 days of the date of death, where a post mortem has been conducted. Appendix 2 shows the performance of death registrations following a post mortem. It is suggested that greater use of the Hull Mortuary by NE Lincolnshire and N Lincolnshire would improve the death registration process for their local registration services, as well as their current post mortem/body storage costs, transporting the deceased out of the area.
Hull Mortuary is also considering a Digital Autopsy facility on site, to carry out none evasive post mortems where possible, to seek greater reduction in costs of post mortems. This approach is increasing nationally within coroner services, responding to customer requests for choice and providing longer term mitigation to the risk of fewer pathologists available to conduct regular evasive post mortems. Coronial pathology is a reducing profession, and digitisation of post mortems is proving to provide an efficient alternative.
In order to produce a credible ‘spend to save’ business case using prudential borrowing of capital, this would require neighbouring authorities to collaborate, sharing efficiencies and bringing those benefits also to north and south bank of the Humber.
How will the relevant local authority administer the new coroner area? How will administrative governance be achieved between the relevant local authority and other funding local authorities?
It is proposed that Hull City Council will continue to be the Lead Authority for the new Humberside Area. It is preferred that the merger incorporates a TUPE transfer of staff to Hull City Council from NE Lincolnshire, to create a newly formed Humberside Team to deliver the service, and realise the financial and efficiency benefits of a single team. It is envisaged however that staff will remain in situ within NE Lincolnshire initially and continue to provide a local service to N/NE Lincolnshire residents. The new area will be governed in the form of an agreed Service Level Agreement.
East Riding and Hull Coroner Service use the Civica Coroners computer system. Since transferring from the IRIS system there has been a fundamental difference in the way the service is delivered, making better use of digital services, paperless processes and an online portal for key stakeholders to securely communicate with the service, is to be live shortly.
The new web based system provides staff and coroners the flexibility to work remotely, at home and at any location with a Wi-Fi connection. Coroners officers work to a workflow system to receive referrals digitally from other parties, and coroners authorise post mortems, sign authorities digitally and view case files digitally in court.
The merger will create an opportunity for North Lincolnshire and Grimsby to transfer to the Civica system, creating more flexibility for the staff, greater resilience for the whole Humber area as staff can work to any case at any location. Civica have confirmed that a transfer to the system under a merger, compared to a separate procurement of the system will save a fifth of the purchase cost to NE Lincolnshire and N Lincolnshire authorities. This transfer will also ensure consistency of practice resulting in improved performance across the Humberside area. Annual maintenance of the system would remain the same as in effect the new area will maintain one system.
It is understood that North Lincolnshire and Grimsby are currently using IRIS to deliver the coroner service. There will be the need at some point to move to a system that can work with digital applications and workflow, particularly as central government drive the digital agenda
Page 20 of 32 Page 158 of 238 of the medical examiner and death registration process. It is also understood that the IRIS system have no plans to carry out this development of their system.
Improved Performance
A merger to one area, harmonising processes and making better use of a digital workflow system will bring the following to N Lincolnshire and NE Lincolnshire;
• An improvement in the quality and consistency of the referral – all referrals now received in writing. Information is received in a logical order using a template to receive the information. Hull has experienced a reduction in the number of referrals since digital referrals was introduced, and no longer accept referrals over the telephone, which may have been cases recorded unnecessarily. • The data received is safe and secure, and soon each referral will pre populate and create a case within the system to prevent re keying of information by staff. Reducing error rates and supporting our duty under GDPR. • The system introduces a paperless service, saving on accommodation and storage facilities, there are no paper files. • Hull reducing the team by 1FTE (saving of £22,000) following benefits realised by the introduction of the new coroners computer system. • System available remotely for out of hours cover. • Progression of agreed processes for the Medical Examiner Service, as regionally the service also aligns to the Humberside geographical area.
5. IMPACT OF MERGER ON THOSE WORKING IN / WITH THE SERVICE
What will be the impact of the merger on: Coroners Coroners’ officers Other staff in the coroner’s offices Pathologists
Coroners – The Senor Coroner will continue to personally conduct the more complex, highly sensitive inquests, and believes it is reasonable to be able to take on the additional workload of cases within the extended area of N/NE Lincolnshire. In recent years Professor Marks very efficiently managed the East Riding and Hull Area, and also the Braford Coroner Area. The Area Coroner will also play a part in this role. It is envisaged that all Assistant Coroners will transfer to the new Humberside Area. Professor Marks utilises the assistant coroner resource making best use of their background and experience in their other or previous profession, mindful of the Chief Coroners commitment to ensure the service nationally has adequate succession planning in place for Senior Coroners.
Coroner’s officers – It is proposed that staff currently within NE Lincolnshire will transfer to the employment of Hull City Council, however arrangements are made for them to remain in their current location, in order to continue to provide the service locally. Hull has a Coroners Service Manager already in place, to train and support coroners officers. The Service Manager currently manages Coroners and Registration Services for Hull, and is also a qualified trainer which provides additional benefits to staff. All Coroners officers will need to work to the same processes and computer system, which provides many benefits to our Humberside emergency services.
Page 21 of 32 Page 159 of 238 A new Humberside Team of 15 coroner’s officers will provide greater resilience for the receiving of day to day referrals and will provide opportunities for improved business continuity planning should the operation at any of the individual sites be disrupted for any reason. It will reduce the risk for the NE/N Lincolnshire team currently of 2.5 FTE to meet a fluctuation of demand. The scenario of a member of staff on leave and then a further member of staff absent due to sickness reduces the team currently to 50% capacity. The Civica system will allow any member of staff to access any case referral, allowing other staff to pick up the work in the absence of others. The Covid 19 situation has also realised the benefits of remote working and the ability to access all systems to deliver the service at home.
The current administrative support within the East Riding and Hull staff structure is resourced adequately to support the new Humberside area.
Pathologist resource will be maintained at the Hull City Mortuary and Princess Diana hospital, and continue to provide post mortem examinations at their current locations, and providing a wider more flexible resource for the area. There is an opportunity to provide independent post mortem support for each other.
6. RESOURCE IMPLICATIONS OF MERGER
Service Budgets (2018/19 costs to be updated prior to submission to the Chief Coroner) The total annual cost of the East Riding and Hull Coroner Service is £975,000 per annum. The total cost of NE and N Lincolnshire Coroner Service is £540,000. The breakdown of costs listed below shows the current costs and percentage splits for each area;
East Riding and Hull Coroner Cost £ 000 Percentage contribution Area Hull 420 43% East Riding 555 57% Total 975 100%
NE Lincolnshire and N Cost £000 Percentage contribution Lincolnshire Coroner Area N Lincolnshire 268 49% NE Lincolnshire 272 51% Total 540 100%
The percentage contributions above are agreed on the basis of the population split of each local authority. The merger would need to consider the current costs above totalling £1,515k and the savings of £67k per annum incurred, due to a reduction of a part time coroner within the new Humberside area. The table below therefore shows the proposed costs for the new area, taking into account the reduction in coroner fees, and population split;
Costs Percentage Reduction in Cost Population % split in £000 contribution costs, part time reduction population coroner (£67k) £000 East Riding 975 64% 927 -48 599,000 64% and Hull area N/NE 540 36% 521 -19 331,000 36% Lincolnshire Total 1515 100% 1448 -67 930,000
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The table above demonstrates that the percentage of population split equates to the percentage contribution, and the savings incurred for each area following the reduction of a part time coroner. There are also a number of other efficiency savings to be achieved from this merger, which is listed in the following section below.
Further Expected savings
It is clear that a merger will longer term, achieve efficiency savings from a number of areas, which all four local authorities will benefit. The following points are listed as potential areas to consider in more detail ,
• Reduction in referrals, leading to a reduction in required staff resource. East Riding and Hull area made a saving of £22,000 following the reduction of 1 FTE Coroners Officer. • Saving on expert medical witnesses attending inquest. • Removal of the coroner day rate for N Lincolnshire and NE Lincolnshire • Sharing of post mortem facilities, N Lincolnshire and NE Lincolnshire cost per post mortem is excessive compared to East Riding and Hull area • Body storage costs, as post mortems will remain within the Humberside area. • Procurement of transportation of the deceased. • Reduction in IT costs for N Lincolnshire and NE Lincolnshire, merging to one system, savings can be made to annual maintenance charges. • Reduction in management resource for N/NE Lincolnshire. The day to day management of the service will be covered by the Hull Coroner’s Office Manager/ Coroner’s Office Team Leader.
LEGAL IMPLICATIONS
• Are you aware of any legal issues that need to be resolved before a merger can go ahead (in addition to the Lord Chancellor making an order under Schedule 2 of the 2009 Act)? If so please give details.
The TUPE transfer of staff to Hull City Council will need to take place, prior to the merger going ahead.
VIEWS OF THOSE AFFECTED BY MERGER
• Do all affected local authorities support the merger? Please provide details .
East Riding fully support the proposed merger as this business case sets out it will lead to the provision of better services, greater resilience and realisation of savings/efficiencies, to the benefit of all stakeholders and customers.
Comments needed here from N/NE Lincolnshire:
• Have the local authority councillors / cabinets approved the merger? Please provide details.
Comments needed here from Cabinet meetings when presented.
Page 23 of 32 Page 161 of 238
• What is the view of affected coroners and their staff?
To be confirmed
• How will bereaved people be affected by the merger – eg travelling to inquests, being able to contact coroners’ offices?
The location to which inquests are held is unchanged, and the new Humberside area will continue to ensure the customer remains at the focus of any developments, service changes. In addition, customers could under the new Humberside area, request the inquest to be held at any one of the offices across the area, providing greater choice and flexibility.
• Have you sought the views of other affected stakeholders - such as police authority and constabulary, hospitals, prisons, GPs, faith groups and funeral directors? Please provide details .
Professor Marks, Senior Coroner for Hull and East Riding has spoken to the Chief Constable Lee Freeman of Humberside Police who has confirmed in writing that he is believes the proposed merger would be a positive step to continue to provide a consistent service to bereaved families in the area. The Chief Constable has highlighted the following points in support of the proposal;
• To provide a more consist and efficient service to the communities of Humberside. • The proposed coronial jurisdiction would directly align with Humberside Policing area, providing opportunities to enhance working practices and relationships between the coroner’s service and the police. • A larger coronial jurisdiction would create opportunities to share and learn good practice. • In the medium to long term, the proposal would provide options to deliver some economies of scale.
What are the views of other stakeholders?
Hull City Council and the East Riding of Yorkshire Council support the merger, due to the realised benefits listed above, including potential cost savings, increased resilience a merger brings to the service, and improvements to bereaved families. However the completed business case will need to be approved by Hull City Council Cabinet, as the lead authority.
The HUTH Trust who deliver the Hull Mortuary Service are supportive of the merger, as it adds further resilience to the pathology resource for PMs. The Hull mortuary has the capacity and resource to undertake post mortems for N Lincolnshire and NE Lincolnshire.
The national medical examiner service – comments to follow
• What impact will the merger have in terms of disability, gender and racial equality?
An Equalities Assessment is to be completed.
Page 24 of 32 Page 162 of 238 7. RISKS AND MITIGATING ACTIONS
• Please provide details of any risks identified and mitigating action (to be) taken.
A Risk Register will need to be created, however initial risks identified below;
Risk Mitigation Insufficient capacity to deliver Senior Coroner for Hull and East Riding, has in previous years the merged service. managed the role over a greater area. Professor Marks managed the area of Bradford in addition to Hull and East Riding in 2013 for 18 months. The use of the Area Coroner and experienced Assistants are already in place to support the wider area. Potential changes to the IT system and working electronically will enable coroner’s office staff to meet the demands of the new area. Failure of operations, systems New robust practices and processes, and how the new service or processes will be managed, will be agreed as part of an SLA. Negative response by staff To ensure they are formally consulted and included in any affected by the merger. proposals, and their views are taken into account. Insufficient initial investment The only investment will be in the IT system. An initial quote required to operate the merged has been sought as £8000 to transfer N/NE Lincolnshire’s data service. to a new system, which includes staff training etc. Full cost implications will need to be considered and agreed by all 4 local authorities. The quality of service drops To ensure that processes and policies are designed and implemented to ensure there is a seamless service to all customers, and impact is minimal. Loss of staff Potential that some staff seek alternative employment if they are not fully engaged. Important to consult at the earliest stage following approval of the merger, and ensure staff understand the benefits of the proposal. Customers, stakeholders To ensure there is a clear communications plan, as part of the confused as merger takes place implementation phase, with key stakeholders and information and processes change is clear to customers The merger decision is To ensure all Members are informed of the benefits realised of influenced by wider local one coronial area around the Humber estuary, and business political decisions, rather than case details in support of the merger. the best interests of bereaved families and the importance of effective partnership working between the LAs and emergency services.
ALTERNATIVE OPTION(S)
• Please describe other options considered, in addition to the proposed merger, and the advantages and disadvantages for each option.
Other Options have been considered and include;
Page 25 of 32 Page 163 of 238 OPTION 1 – Maintain the status quo,
Advantages This would maintain the current service provision and be delivered within existing budgets.
Disadvantages The does not deliver the Chief Coroners clear guidance and longer term aspiration to decrease the number of coronial areas, introduce standardised processes. This option continues to cause the police operational difficulties, dealing with two coronial areas that have different processes. This continues to remove the flexibility for families within the Humber region. The resilience of a small resource in the south bank continues to be a risk to the service delivery. Potential savings are not realised maintaining unnecessary cost to the public purse.
OPTION 2 – N Lincolnshire and Grimsby Area merge with another area
Advantages To be confirmed?
Disadvantages This area does not align to the operational areas of the Police, and other emergency services, who are a fundamental stakeholders to the delivery of a robust coroner’s service. This option will continue to cause local police forces operational difficulties, dealing with two coronial areas, who use different systems and processes.
The delivery of a mass fatality, excess death situation or any death situation within the Humber Estuary will be inconsistent, and no clear defined process to determine which coronial area takes the case.
This will continue to remove the flexibility for families within the Humber region
CONTACT WITH THE CHIEF CORONER’S OFFICE / MINISTRY OF JUSTICE / CONSULTEES
• Have you had previous discussions with the Chief Coroner on the proposed merger? (This is a requirement before MoJ can formally consult on the merger.) Please provide details of the discussion.
No direct discussions yet until the Business Case is fully completed. This approach however supports the policy of the Coroners and Justice Act 2009, whereby the Chief Coroner and the MoJ are seeking fewer coroner areas with more whole time Coroners covering larger geographical areas.
• Have you had previous contact with MoJ on the proposed merger? Please provide details.
An email discussion has taken place with David Giles Policy Manager at the MoJ. (3 rd September 2018) Davids view is that N/NE Lincolnshire Councils should consider the potential benefits of a merger with the Hull and East Riding area
Page 26 of 32 Page 164 of 238 A further communications from Mr Giles (1 st October 2020) requesting the submission of this business case alongside other potential options for the North Lincolnshire and Grimsby region, to the Lord Chancellor.
• Are you happy for this business case in its entirety to be sent to all consultees? If not please provide details.
• Please list consultees for the consultation on the proposed merger – the organisation’s name and the most appropriate email address - at Annex B. MoJ will remove email addresses from Annex B before sending the business case to consultees. • Further information on the merger process is available in the form of Chief Coroner guidance at: http://www.judiciary.gov.uk/wp- content/uploads/2014/05/guidance-14-mergers-of-coroner-areas.pdf .
Page 27 of 32 Page 165 of 238 Annex A Resource implications of the merger
Table A: Details of current Senior Coroners and Area Coroner/s (if applicable) in each existing coroner area
Position (eg First name Surname Current Long Inquest Proposed Senior salary Payments (if salary in Coroner, (including applicable) amalgamate Area National or other d area (if Coroner) Insurance and additional applicable ) pension payments (including contributions) National Insurance and pension contributions) Senior Coroner Professor Paul Marks 2020/21: 2020/21 2% per NJC £152,704 none negotiations adopted 2019/20: 2019/20: £149,708 none
Area Coroner Rosemary Baxter 2020/21: 2020/21: 2% per NJC £109,430 none negotiations adopted 2019/20: 2019/20: £106,760 none
Acting Senior Mark Kendall 2018/19 2018/19 2% per NJC Coroner £79,071 none negotiations (temporary wef adopted 01/01/19) 2017/18 2017/18 £77,236 none
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Category Hull and East Riding North Humberside Area Lincolnshire Area and Grimsby Area Fees for Assistant £375 per day £250 per day TBC Coroner(s)
Salary costs of TBC Coroner’s officer(s) £291,262 per annum £90,230 (including National Insurance and pension contributions)
Salary costs of TBC administrative staff £72,864 per annum £24,871 (including National Insurance and pension contributions)
Staff accommodation Cleethorpes All combined Town Hall Costs to be Coroner’s Office The The Knoll quantified Guildhall Hull Cleethorpes
Inquest accommodation All combined 2 dedicated courts in the Cleethorpes Guildhall Hull Town Hall Scunthorpe Civic Centre Grimsby Town Hall IT costs TBC £16,574 per annum £4,200
Post £360,000 p.a. £282,600 TBC mortem/Pathologist Includes all costs relating to costs etc PM,s, toxicology, histology, body removals/storage. All costs relating to inquests, jury, expert witnesses, etc. Other costs? £82,500 To quantify costs Service for postage support and printing Accommodati telephones travel on charge and mileage etc.
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Annex B
List of consultees
[Please include:
- All effected Senior Coroners, Area Coroners and Assistant Coroners in the areas in question; - relevant local authority contacts from all neighbouring coroner areas (MoJ can assist with this if necessary); - all MP’s with constituencies within the effected coroner areas; - pathologist contacts; - representatives of local funeral directors within the effected coroner areas; - representatives from hospitals and/or prisons within the area; - the Chief Coroner (MoJ will have the relevant contact details) - local police contacts(MoJ can assist with this if necessary and will include a national ACPO contact as standard))
Organisation Email address (please note these will be removed when business case is sent to consultees) Professor Paul Marks Senior Coroner Hull and East Riding Area. Rosemary Baxter, Area Coroner Hull and East Riding Area. Sally Ann Robinson Assistant Coroner, Hull and East Riding Area James Hargan Assistant Coroner, Hull and East Riding Area Ian Sprakes Assistant Coroner, Hull and East Riding Area Lorraine Harris Assistant Coroner, Hull and East Riding Area Michael Mellun Assistant Coroner, Hull and East Riding Area Oliver Longstaff Assistant Coroner, Hull and East Riding Area Alexander Forrest Assistant Coroner, Hull and East Riding Area David Rosenburg Assistant Coroner, Hull and East Riding Area Andy Brown, Hull City Council Gillian Barley East Riding of Yorkshire Council
Page 30 of 32 Page 168 of 238 Diana Johnson Hull MP Emma Hardy Hull MP Carl Turner Hull MP Graham Stewart ERY MP Dr I. Richmond Pathologist Hull Mortuary Hull Prison contact Andrea Kaye Hull Mortuary Manager HEY Trust David Cogen Funeral Director Representative of NAFD Mark Horton Funeral Director Representative of SAIF Humberside Police contact James Mason, Emergency Planning Officer, East Riding Council
Mark Kendall Assistant Coroner Jane Eatock Assistant Coroner Martin Vickers MP Cleethorpes Melanie Onn MP Grimsby Nicholas Dakin MP Scunthorpe Grimsby Pathology Grimsby mortuary manager Medical Director Diana Princess of Wales Hospital Medical Director Scunthorpe General Hospital Medical Director St Hughes Hospital South Bank Humberside Police
Page 31 of 32 Page 169 of 238 Appendix 3 – Performance Statistics
Coroner Statistics 2015 2016 2017 2018 2019 Number % Number % Number % Number % Number % No of Deaths reported East Riding and Hull 3278 3127 3012 2886 2932 Lincolnshire and Grimsby 1672 1809 1759 1833 1741 No of Post Mortem investigations/percentage compared to deaths reported East Riding and Hull 1027 31% 946 30% 933 31% 910 32% 933 32% Lincolnshire and Grimsby 389 23% 383 21% 367 21% 404 22% 422 24% No. of inquests opened East Riding and Hull 345 11% 376 12% 262 9% 266 9% 276 9% Lincolnshire and Grimsby 200 12% 205 11% 165 9% 141 8% 114 6% Average time taken for inquests (weeks) East Riding and Hull 19 20 28 36 44 Lincolnshire and Grimsby 23 22 31 38 41 (source MHCLG)
Registration Statistics Timelessness of death registration following a 2016/17 2017/18 2018/19 2019/20 post mortem (completed within 7 days of the death) Hull 78% 71% 64% 57% East Riding 77% 77% 65% 60% NE Lincolnshire 68% 67% 50% 31% N Lincolnshire 70% 63% 45% 31% (source GRO)
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Report to the: Finance and Value for Money Overview and Scrutiny Commission – 20 November 2020 Cabinet 23 November 2020 Wards: All
2020/21 Capital Monitoring – Second Formal Report
Report of the Director of Finance and Transformation (s151 Officer)
This item is not exempt Therefore exempt reasons are not applicable
This is a Non-Key Decision
1. Purpose of the Report and Summary
1.1. To provide Members with an updated overview of progress against budget and planned activity for the 2020/21 capital programme.
2. Executive Summary
2.1. The report provides detail of both expenditure against budget and progress against delivery outputs/milestones. The following appendices are included which incorporate the following:
• Appendix A – Capital Programme 2020/21 to 2022/23 reconciliation of programme changes; • Appendix B – Forecast outturn for 2020/21 and a summary of outputs/milestones information (separated by Portfolio Holder responsibilities); • Appendix C – Revised capital programme 2020/21 to 2022/23 incorporating known changes since the last report to Cabinet on 27 th July 2020.
2.2. Actual spend as at the 30 Sep 2020 is £30.1 million against a revised budget of £149 million. Project managers have provided revised forecasts which suggest a forecast outturn of £142.4 million, as shown at Appendix B.
2.3. In light of the current situation Programme Managers have based their forecasts on a current assessment of the impact of COVID-19 on the programme and subsequent possible delays to the delivery of the capital schemes. However, it very difficult to predict the outturn at the moment and whilst contractors may be keen to accelerate spend and catch up and hence Programme Managers predicting significant delivery there are currently supply chain problems and
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uncertainty over COVID working practices and possible risk of increased infection rate, therefore the s151 Officer continues to believe a more prudent view is nearer £114 million hence a 20% adjustment to the forecast outturn.
2.4. Appendix A provides an analysis of resource amendments to the programme arising from additional grant income and the development of previously approved schemes.
2.5. An analysis of capital spending patterns, and forecast outturn positions (budgets) is provided graphically below:
2.6. A third monitoring report will be presented to Members in February 2021.
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3. Recommendations
It is recommended that:
3.1. Members note the monitoring information provided at Section 8 and Appendix B.
3.2. Members approve the amendments to the programme detailed at Appendix A, summarised below as:
£m £m Current Approved Programme for 20 20/21 to 20 22/23 422.907 (Cabinet 27/07/20)
Additional Resources: - External Grant Funding Confirmations 1.599 - Spend to Save Schemes 4.446 6.045
Proposed Revised Programme 428. 952
3.3. Members note the forecast outturn as detailed at Appendix B and approve the revised capital programme for 2020/21 to 2022/23, incorporating the proposed amendments, as detailed at Appendix C.
4. Reasons for Recommendations
4.1. The recommendations are to approve the changes to the capital programme following the announcement and/or confirmation of additional external grant allocations to support specific programmes.
4.2. Enables Members to consider the progress and delivery of the approved Capital Programme within the approved funding envelope.
5. Impact on other Executive Committees (including Area Committees)
5.1. The provision of reliable financial information supports the Council’s decision making processes and therefore impacts on all Council priorities.
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6. Background
6.1. The capital programme for 2020/21 to 2022/23 was approved by Council on 27 February 2020, based on the latest funding assumptions and the financial implications are appropriately reflected within the revenue budget projections contained within the reports relating to Medium Term Financial Plan (MTFP) and Housing Revenue Account (HRA).
6.2. As part the 2020/21 capital programme monitoring cycle, a revised programme was approved by Cabinet on 27 th July 2020 (first formal report monitoring update), and approved reprofiling adjustments in relation to project commitments in light of 2019/20 outturn.
6.3. Appendix A provides an analysis of the programme movements.
6.4. This report provides members with a second reported position for 2020/21.
7. Issues for Consideration
7.1. This is the second monitoring report of 2020/21 and provides Members with an updated overview of progress against budget and planned activity for the 2020/21 capital programme. The following sections provide the overview in more detail.
8. Programme Exception Reporting
8.1. This report is focussed around programme exceptions, following on from the returns submitted by individual Programme Managers, and are detailed in the table below.
8.2. Whilst the intention is to understand and address the reasons why spend against profile variances arise, it is apparent based on the explanations provided by Programme Managers in this monitoring round, that some exceptions are in this case unforeseen, unavoidable or outside the control and influence of the Programme Manager.
8.3. The tables below summarises the variations in programme profiles and deliverables:
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Significant Programme variations arising from delays in programme spend and/or milestone/project delivery
Forecast Budget Outturn Variance Programme £’000 £’000 £’000 Reasons for Programme Variations Programme Variations Albert Avenue Baths 2,115 1,115 (1,000) To refurbish the existing facility to bring the existing Lido back into use as well addressing backlog maintenance. Demolition works on hold during the Covid shutdown. Re-engagement with the contractor to commence with a start date to be agreed. Boulevard UFE Phase 1,192 500 (692) This project is to demolish the former ITEC Building and Construct New Build Small 4 Factory Units. Two tenders have been received. Poor response to tendering maybe due to the current pandemic and contractors supply chain difficulties. The Tenders are being evaluated by NPS & HCC. HRA – Council House 2,610 2,024 (586) This budget provides for a responsive service to deliver requests for major and Adaptations minor adaptations to assist tenants in council properties.
There is still a waiting list for housing surveys following Adult Social Care clearing their waiting list of assessments. This has been compounded by COVID19 as surveys and adaptation works ceased to all but essential cases where the occupant/s have not been shielding or self-isolating in accordance with Government guidance.
The Housing Service has put resources in place to be able to address the waiting list and is working closely with Occupational Therapy colleagues and its Principal Contractors to deliver the service in accordance with Government guidance. At this stage it is forecast that there will be an underspend due to the impact of COVID19.
HRA – Planned Capital 14,440 13,737 (703) The Council has an on-going duty to maintain the Council housing stock to the Works government’s decent homes standard. A planned programme of works is developed each year underpinned by the business plan to assess long term affordability of the HRA. This identifies the main elements of work (i.e. kitchens, heating, rewire, roofing, window and door replacement) required to specific addresses to ensure the decent homes standard is maintained.
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In Overall, £2m (22%) of the current budget for total direct works this year relates to reactive works. It should be noted that these indicative provisions are based on past information and trends which may not necessarily be consistent with the actual occurrences in any particular year which may lead to a variance against budget.
There are many variances that have arisen across most of the programme at this stage of the year as a result of the current COVID-19 pandemic. Programmed works not been able to commence until Q2. The scheme of works for the replacement of lightning conductors at high and low rise blocks are now ready for tender with the main programme of works expected to start in 2021-22. As previously reported at Q1 most of the £1.7m budget was slipped into 2021-22.
The period 2 forecasts indicate over 1,800 major elements of work will still be delivered through the planned works budget during the year. Hull Neighbourhood 844 340 (504) The General Fund contribution to the Ings Renewal Programme is to support the Renewal - Ings acquisition and demolition of privately owned dwellings within the area to assemble land for Compendium Livings new build programme in the area. The scheme has been on-going for a number of years and is scheduled to substantially complete in 2020-21.
The forecast represents the acquisition costs of 1 property along with the demolition 5 properties in the year. There are also some infrastructure works to be completed. When set against the remaining works to be completed, it is likely that there will be a small pressure on the overall future year budget provisions. As previously reported, this has arisen predominantly from higher than anticipated home loss packages payable to residents and increased property valuations compared to the original budget assumptions. Options are being considered to address any future funding shortfall.
Due to the programme nearing completion, the exact timing of the remaining acquisitions and subsequent inclusion within demolition programmes becomes more problematical, which may require flexibility within the annual profiled budgets to reflect actual progress made. Disabled Facilities 2,900 2,200 (700) This budget provides for Disabled Facilities Grants (DFGs) which are a means Grants tested mandatory grant to provide adaptations to enable disabled private residents to live independently at home.
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DFG funding is through the Department for Health Better Care Fund DFG Grant. There is now a waiting list for housing surveys as a result of COVID19 as surveys and adaptation works ceased to all but essential cases where the occupant/s have not been shielding or self-isolating in accordance with Government guidance.
The Housing Service is putting resources into place to be able to address the waiting list and is working closely with Occupational Therapy (OT) colleagues and contractors to deliver the service in accordance with Government guidance. Housing surveys recommenced in July 2020.
Subject to the number of OT referrals within the financial year the forecast outturn is now expected to be in the region of £2.2m, and the carry forward on uncommitted funding is requested to be re-profiled for use in 2021-22.
Should further discussion with Adult Social Care colleagues and Health identify additional projects/work streams eligible for DFG funding within year, or the OT referrals significantly fluctuate from the expected numbers, the forecast will be adjusted accordingly. Service Transformation 3,000 2,000 (1,000) The 2020/21 Budget has been set to include provision to meet additional transformational costs following the Ofsted monitoring visit report on Children’s Safeguarding Services. The budget of £3m is to meet the potential costs over the next 2 years of funding the transformational activity within Children’s Services, and latest forecasts suggest £1m of these costs will fall into 2021/22. Beverley Road THI 1,543 593 (950) The five-year TH Scheme includes; a grants programme for identified properties; public realm works, including boundary treatments at specifically targeted properties; and, a programme of educational & outreach activities.
Programme has been revised due to delays from third parties progressing grant applications due to impact of Covid-19. The project has also been extended to October 2022. Investment in Museums 6,271 4,500 (1,771) The project encompasses the redevelopment of 5 historic assets across Hull: the transformation of the Grade 2* listed Maritime Museum with a new architectural and exhibition scheme; the creation of a collections store at the Dock Office Chambers; the conservation of two historic vessels – the Arctic Corsair and the Spurn Lightship, and the creation of a visitor orientation centre at the derelict North End Shipyard, the proposed new permanent berth of the Arctic Corsair.
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The detailed activity plan working with the communities, schools, colleges with other institutions and partners are being reviewed in the light of foreseen restrictions and working to digitise exhibitions and activities with the bringing forward of programmes that we can due to C-19. This is in a consistent manner with our Arts Council NPO work where HCAL have had positive feedback from the funder.
The whole programme continues to be assessed to account for the delays involved in the C-19 pandemic and HCC are closely liaising with the NLHF.
Queens Gardens 3,164 1,469 (1,695) The refurbishment of Queens Gardens is a scheme related to the Hull: Yorkshire Maritime City project. The delivery of its masterplan will improve accessibility and visitor flows, deliver structural repairs through rebuilding the retaining walls, introduce bespoke pieces of public art, improve biodiversity and regenerate a much loved open space. The project will make the gardens fit for purpose, futureproofing the space and its ability to host large-scale events.
The project is working towards the completion of RIBA Stage 4 designs. Drawings for review and sign off by the Project Team are now being received from the design team.
The process of moving the street lighting columns from the northern side of Guildhall Road to the south has commenced. This will de-clutter the footpath, and assist in achieving improved pedestrian flows along the south side of the gardens.
Drawings for the Rose Bowl fountain restoration have been completed. A visualisation has been commissioned, using historic and current day photographs, which will show how the fountain will look following its restoration.
Proposed to reprofile £1,695k to 21/22m as C-19 has impacted significantly on completion of RIBA 4 package of works.
Total 38,079 28,478 (9,601)
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Significant accelerations in Programme delivery and profile resulting in a forecast increased in year spend.
Forecast Budget Outturn Variance Programme £’000 £’000 £’000 Reasons for Programme Variations HRA – New Build 9,616 10,365 749 The next phase of delivery is now gearing up to delivery against the Housing Growth Plan approved in January 2018. This sets out an ambitious programme to deliver new housing including new Council homes over the next five years.
In line with the July 2020 Cabinet Report - Housing Growth & Accelerating Delivery, proposals have been approved to seek to provide an economic stimulus to the construction industry in the city to safeguard jobs and apprenticeships as a result of Covid-19 and accelerate delivery of modern, well-designed and sustainable new Council homes.
However, there are warnings around supply chains and potential delays for the delivery of materials. We are currently to assessing the impact on the HRA programme and this will be further understood by Q3.
HRA – Solid Wall 10,932 11,858 926 Commencement of work on the phase 3 programmes was delayed due to Insulation Government lockdown for the Covid 19 Coronavirus and Health and Safety. The allocated budget for the programme does not include the increased cost of £339k claimed by the Contractor as a relief event under the Contract but is included within this years spend, there is a risk of further increased cost for out of sequence working due to customers isolating and the Contractor having to return to complete the works.
The Caspon programme start in June 2020 and completes November 2021, subject to customers allowing access, wintery conditions and no further restrictions due to Covid 19 Coronavirus and Health and Safety. The contractors are looking to accelerate the programme and the Q2 forecast reflects this.
Schools Maintenance 10,800 11,850 1,050 The department is continuing to deliver against a very difficult and uncertain and Improvements backdrop to ensure that school place provision remains a top priority for the council and the children in the city.
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The Schools Capital Programme 2020/21 includes schemes to address basic need for primary, secondary and also Special Educational Needs and Disabilities (SEND) places.
Internal remodelling works to expand Kelvin Hall Academy will complete on 18th September despite the impact of Covid19. This includes a new Autistic Spectrum Condition Resource Base for 15 pupils. In addition, the St Mary’s College new build is still on programme to be completed 28th October. Following the Government’s announcement for all school children to return to school from September, an additional 8 temporary classrooms have been created on site to accommodate pupils until the new build is complete .The main car park has also been extended to coincide with the full school returning in September.
Works to design and build a new primary school at the Broadacre site continues. Planning approval in October and Financial close by end of November 2020. The forecast start on site date is January 2021 with completion February 2022. Demolition of the old site and external works to complete September 2022.
In addition, a remodelling scheme at Ings Primary to create an Autistic Spectrum Condition (ASC) resource base for January 2021 to be reimbursed from the Special Provision Fund (SEN). A further scheme has been completed at Wansbeck Primary creating an additional 10 place Autistic Spectrum Condition Resource Base for September 2020 which will be funded through the Basic Need funding.
Engagement sessions are continuing with Kingswood Academy Trust, MP&I team, Esteem and the design team to create additional pupil places for September 2021 by means of an extension. Enabling works were completed September 2020 in preparation for the first week of the new term.
City Centre Public 800 1,725 925 Paving works for Public Realm Phase 3 are progressing well on site despite the Realm constraints of the necessary social distancing measures, the interchange paving is largely complete together with the footway west side of Ferensway. The footways to the east side of Prospect Street and north side of Brook Street are substantially complete. Additional funding to be sought from Highways and Museums programmes as related works.
Total 32,148 35,798 3,650
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9. Capital Programme Reprofiling
9.1. Actual capital expenditure to 30 September 2020 for the full capital programme amounts to £30.1 million against a revised budget of £148.9 million for 2020/21. Whilst historic trends suggest spend levels do increase significantly in the later months of the year, Programme Managers have reviewed the forecast outturn positions (Appendix B), and they remain confident of delivering the approved programme for 2020/21, although several programmes require budgets to be re- phased into future years. In light of the current situation Programme Managers have based their forecasts on a current assessment of the impact of COVID-19 on the programme and subsequent possible delays to the delivery of the capital schemes.
9.2. A summary of the proposed reprofiling changes is shown in the following table:
Budget Budget Budget 2020/21 2021/22 2022/23 Total £m £m £m £m Current Position 142.918 165.946 114.043 422.907
Additional Resources 6.045 - - 6.045
Proposed Reprofiling (7.621) (0.400) 8.021 -
Revised Position 141.342 165.546 122.064 428.952 Programme Managers 142.403 Forecast Outturn s151 Adjusted Outturn 113.922 re COVID-19 Impact
9.3. In addition to the programme exceptions highlighted in section 8 above, further minor programme reprofiling is required. The table below provides a summary analysis of the above reprofiling changes at Programme level.
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Analysis of proposed Capital Programme Reprofiling adjustments
Programme Current Revised Current Revised Current Revised Budget Budget Budget Budget Budget Budget 2020/21 2020/21 Change 2021/22 2021/22 Change 2022/23 2022/23 Change £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 Culture, Leisure and Tourism Albert Avenue Baths 2,115 1,115 (1,000) 1,800 2,800 1,000 - - - Sub Total 2, 115 1,115 (1,000) 1,800 2,800 1,000 - - -
Economic Investment, Regeneration & Planning Boulevard UFE Phase 4 1,192 500 (692) 75 767 692 - - - Multi Storey Car Parks 317 100 (217) 60 277 217 - - - Wilson Centre Air Conditioning 250 50 (200) - 200 200 - - - Sub Total 1,7 59 650 (1,109) 135 1,244 1,109 - - -
Housing HRA – Council House Adaptations 2,610 2,024 (586) 2,583 3,169 586 2,680 2,680 - HRA – Fire Protection Works 825 775 (50) 10,060 10,110 50 4,444 4,444 - HRA – New Build 9,616 10,365 749 23,915 23,166 (749) 25,840 25,840 - HRA – Planned Capital Works 14,440 13,957 (483) 21,364 21,847 483 16,862 16,862 - HRA – Solid Wall Insulation 10,932 11,858 926 16,429 15,503 (926) 10,157 10,157 - Housing Renewal Programme – Ings 844 340 (504) - 504 504 - - - Housing Renewal Programme – NaSA 222 168 (54) - 54 54 - - - Housing Renewal Programme – Preston Rd 542 386 (156) 1,002 1,158 156 - - - Disabled Facilities Grant 2,900 2,200 (700) 2,954 3,654 700 2,200 2,200 - Sub Total 42,93 1 42,073 (858) 78,307 79,165 858 62,183 62,183 -
Learning, Skills and Safeguarding Children Childrens Homes Reprovision/New Build 1,592 1,304 (288) 400 688 288 - - - Schools Maintenance & Improvement 10,800 11,850 1,050 4,000 2,950 (1,050) 4,000 4,000 - CYPS Service Transformation 3,000 2,000 (1,000) - 1,000 1,000 - - - Sub Total 15,392 15,154 (238) 4,400 4,638 238 4,000 4,000 -
Visitor Destination Programme (Major Projects)
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Beverley Road THI 1,543 593 (950) 597 1,097 500 - 450 450 Investment in Museums 6,271 4,500 (1,771) 12,598 6,798 (5,800) 9,100 16,671 7,571 Queens Gardens 3,164 1,469 (1,695) 1,000 2,695 1,695 - - - Sub Total 10,978 6,562 (4,416) 14,195 10,590 (3,605) 9,100 17,121 8,021
Total 73,175 65,554 (7,621) 98,837 98,437 (400) 75,283 83,304 8,021
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10. Options and Risk Assessment
10.1. This report is to provide Members with an overview of the current progress of delivery of the approved Capital Programme, and to approve variations to the Programme based on additional and revised funding streams.
11. Risk Assessment
11.1. Given spending of £30.1 million has been achieved to 30 September 2020, a significant acceleration in the rate of spending over the remaining months of the year is required if the revised forecast outturn of c£114 million is to be delivered.
12. Consultation
12.1. Consultation will be undertaken for specific programmes or individual schemes where appropriate.
13. Comments of the Town Clerk (Monitoring Officer)
13.1. The report raises no immediate legal issues. Although the potential for positive benefits from the ability to accelerate housing growth is to be welcomed, the impact of the pandemic on capital schemes will continue to be felt as materials continue in short supply and distancing measures reduce capacity and productivity.[CA]
14. Comments of the S151 Officer
14.1. The Director of Finance and Transformation (S151 Officer) is the author of the report.
15. Comments of the HR City Manager and Compliance with the Equality Duty
15.1. There are no staffing issues arising from the update, each project will need an equality impact assessment.
16. Comments of Overview and Scrutiny
16.1. This report is due to be considered by the Finance and Value for Money Overview and Scrutiny Commission on the 20 th of November 2020. Any comments or recommendations agreed by the Commission will be submitted to Cabinet for consideration alongside the report. (Sc5905 – AS)
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17. Comments of the Portfolio Holder for Strategic Finance
18. The level of capital spend remains below projections largely because of C19. Although the activity has stepped up since the lock down period there are still difficulties sourcing some materials and the expected second spike in the pandemic is likely to further impact on schemes for the remainder of the financial year.
David Bell Director of Finance and Transformation (s151 Officer)
Contact Officers: Mike Armstrong Telephone No. : 613282
Officer Interests: None
Background Documents: • 2020/21 Capital Monitoring – First Formal Report • 2020/21 Capital Strategy Report • 2019/20 Capital Outturn Report
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Implications Matrix
I have informed and sought advice from HR, Yes Legal, Finance, Overview and Scrutiny and the Climate Change Advisor and any other key stakeholders i.e. Portfolio Holder, relevant Ward Members etc prior to submitting this report for official comments I have considered whether this report requests a Yes decision that is outside the Budget and Policy Framework approved by Council Value for money considerations have been Yes accounted for within the report
The report is approved by the relevant City Yes Manager I have included any procurement/commercial n/a issues/implications within the report
I have considered the potential media interest in Yes this report and liaised with the Media Team to ensure that they are briefed to respond to media interest. I have included any equalities and diversity Yes – see comments from the HR City implications within the report and where Manager. Other equality and diversity necessary I have completed an Equalities implications are considered within Impact Assessment and the outcomes are individual programmes where included within the report appropriate. Any Health and Safety implications are included n/a within the report Any human rights implications are included There are no human rights implications within the report in this report. I have included any community safety n/a implications and paid regard to Section 17 of the Crime and Disorder Act within the report I have liaised with the Climate Change Advisor n/a and any environmental and climate change issues/sustainability implications are included within the report I have included information about how this n/a report contributes to the City Plan/ Area priorities within the report
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Appendix A
Capital Programme 2020/21 to 2022/23 reconciliation of budget changes
£m £m Original Programme ( Feb 20 20 Council) 399.207
Adjustments re 2019-20 Outturn Position: - Accelerated funding (4.341) - Contractual commitments reprofiling 25.129 - Non-contractual reprofiling 8.980 29.696
Additional Resources: - Additional External Grant Funding (2021/22+) 2.443 - Additional External Grant Funding (2020/21) 1.161 - Unsuccessful External Grant Bids (12.220) - Spend to Save Schemes 1.695 - External Schemes 3.827 - HRA Realignment (2.902) (5.996 )
Revised Programme (July 20 20 Cabinet) 42 2.907
Additional Resources: - Additional External Grant Funding (2020/21) 1.599 - Spend to Save Schemes 4.446 6.04 5
Revised Prog ramme (September 2020 Cabinet) 428. 95 2
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Appendix A Details of Resourcing Changes as at First Reported Period 2020/21
Amendments to Resources £m £m
Current 20 20/21 Capital Programme Budget 14 2.918
External Grant Fu nding /Realignment : - Investment in Schools (BSF) 0.010 - Schools Maintenance and Improvement 0.047 - Highways (Pothole and Challenge Fund) 1.540 - Investment in Museums 0.002 1. 599
Spend to Save Schemes
- Building Optimisation 0.350
- Strategic Property Purchases 3.717
- Strategic Property Purchases 0.220
- Coroners Digital Readiness Project 0.050
- Bus Lane Cameras 0.109 4. 44 6
Total Increase in Capital Programme 6.025
Revised 20 20/21 Capital Programme Budget 148. 96 3
• External Grant Funding/Realignments – reflects confirmations of 2020/21 allocations, latest profile of grant funded schemes and new grant funded programmes. • Buildings Optimisation – to develop and fit out Zeal’s Garth and the Bespoke Centre into Corporate Offices and Managed Workspace Centres, respectively. • Strategic Property Purchases - the purchase of the former Myton Retail Park in Hull City Centre and associated land and property in line with the Cabinet decision of the 25 June 2018 (Forward Plan ref 0022/18). • Strategic Property Purchases – following the purchase of Bradbury House, fit out works are required to accommodate the relocation of office staff. • Coroners Digital Readiness Project - to equip the Coroner’s Court room and jury room to enable court hearings to take place using digital technology, and incorporating the facility to broadcast the hearing into the Jury Room so that the Coroner and advocates can safely distance in the court room, and also to join witnesses into the hearing from external remote environments using digital means. • Bus Lane Cameras - in order to enforce the new bus lanes, new bus lane cameras are required with the investment paid from additional income generated. Highways England may part fund the investment.
18 Page 188 of 238 Capital Programme Monitoring 2020/21 - Second Reported Period APPENDIX B Forecast Outturn and Actual Outputs/Milestones against Planned to 30.09.20
Other Revised Actual Budget Changes Budget Spend Remaining Forecast Forecast Full Year Second Monitoring Period 2020/21 2020/21 2020/21 2020/21 Spend Outturn Variance Outputs Planned Actual Programme £'000 £'000 £'000 £'000 £'000 £'000 £'000 2020/21 Activity Outputs Comments Portfolio: Adult Services and Public Health Alcohol Treatment 41 41 5 36 36 (5) Refurbishment of 74 Goodhart Road. Refurbishment works have been delayed due to Refurbishment of 74 Goodhart Road. COVID-19 outbreak and are expected to be completed in 20/21. This includes external works and air con installation. Sub Total 41 0 41 5 36 36 (5)
Portfolio: Corporate Services ACFS System Refresh 211 211 53 158 211 0 Ongoing support and Maintenance costs The remaining budget is to cover ongoing The remaining budget is to cover ongoing support The remaining budget is to cover ongoing support costs which were built into Project support costs which were built into the costs which were built into the implementation the implementation programme. implementation programme. programme.
Agile Working/Work 332 332 245 87 332 0 • Warehouse 9 building refurbishment • ICT deployment schedule (including work • Successful bid and participation in joint research • £1.6 million committed for 5th year spend on ICT Workstream device Smart project (inc. design, procurement and for N&H) to be extended, following project (with HU and local government partners) replacement budget installation of furniture) suspension of rollout because of the Covid- investigating the impact of Covid-19 on how we 19 response, to summer of 2019-20 financial work • Programme Board to determine priorities / timeline for property spend • Kenworthy House building refurbishment year which will likely impact the planned activity / outputs / forecast outturn for the project (inc. design, procurement and 2020/21 financial year installation of furniture) • Building refurbishment projects to resume for Warehouse 9 / Warehouse 8 / 79 Lowgate • The allocation of the remaining Property Workstream budget will be • WorkSmart project team staff / Bradbury Building determined according to need / requirements of the property plan, which is a (Transformation, Property and ICT) long-term strategy, meaning budget will likely need to be carried forward to the next financial year to fund future projects within the Programme. The • Space Utilisation Reporting solution (inc. impact of Covid-19 and how the organisation will manage a return to office procurement, installation and launch) workspaces is likely to redefine the Programme strategy
• Feasibility studies
Customer Enablement 574 574 363 211 550 (24) The majority of the processes are now Recruitment of a number of the ICT posts The vast majority of anniversary costs to The need to provide priority services for Covid-19 responses have now built as per board agreement of revised and to deliver on the remaining processes contractors have been allocated. ceased and processes have closed. Planned processes that failed to go live scope June last year. The remaining costs that failed to go live as planned to due have been launched with the exception of one which should follow on within are contractually committed to our pandemic work. One remaining Programme process to be made the next few weeks and will mark the end of the Programme scope as suppliers, for anniversary costs and for live within September which was delayed due to agreed in June 2019. The remaining spend on the budget will represent consultancy/development work with the Consultancy development work to support system issues. contracted anniversary costs into 23/24 and staff costs into 21/22. Reduction remainder in staff costs. Some posts are ICT and CRM migration to allow CRM to be in expected spend is due to delays recruiting to ICT roles which will now fall occupied extensions others were to have decommissioned in the Autumn. The majority of ICT posts have been filled, with one into 21/22. Options to consider the reported variance is being considered by been recruited to in March, however these currently within the recruitment process. the customer programme. are now scheduled for July and will provide ICT support for the transition of Consultancy has enabled a number of processes the technology solution into business as that supports CRM migration to be built and these usual. are scheduled to go live within September. Digital Programme 110 110 26 84 110 0 Furtherance of the council's digital Seek to ascertain current and future digital Due to Covid work has progress but not as much This work is being carried out by a fixed term post spread over two years strategy and associated programme of requirements across the Council’s wide array as initially thought. Post holder has moved to a (20/21 & 21/22), hence the reported outturn. The post holder has been works which spans corporate, service of services. Specifically, the Digital Strategy new post so currently nobody available to deliver. involved in the Council's / ICT's response to the Covid situation, which has area, and partnership-focused aims to set out the Council’s vision and plans Recruitment campaign to start in next reporting helped inform the future direction and digital strategy. improvement and innovation initiatives. to enable improved lives for the citizens of period to allow resource to continue this work. Hull through effective use of ICT and Digital Services
ICT Infrastructure and 1,956 1,956 1,756 200 1,956 0 Delivery of key projects to required scope, Continued delivery of PAPA approved PAPA projects continuing, main highlights. Refresh budget and timeline. Various projects projects inline with agreed finances and Website Support and Development not transferred included within this programme, with timescales to ICT Revenue and continues. Appointment PAPA project funded on a case by case system replacement progressing well, with old basis throughout the year. unsupported system now decommissioned. Online registration of deaths brought forward in response to the Covid19 emergency. Smart cities project currently at the installation and implementation phase of the cloud based platform. The platform us now live with 3 of the agreed 12 integrations ICT - Migration to 2,557 2,557 449 2,108 2,557 0 To seek approval during 1st quarter 20/21 Obtain approval for programme via CST and Programmedelivered. received approval from CST and During Q1 it is expected for payment for Unified support and the mobilisation Cloud for the programme via CST and Cabinet. Cabinet. Once approved, start necessary Cabinet during July. Job descriptions, structure part of the programme, costs £451k Once authorisation has been provided the process to resource the programme etc. send to trade unions for consultation and job programme will look to recruit resources accordingly. Start review of Schedule of descriptions written and returned through JE to support delivery of the programme, this works to ensure they align to outputs process. Recruitment process started. Schedule will commence during Q2. initial delivery of expected and wider requirements. of work review of Microsoft 365 complete, other Cloud migration project, starting with SOW's to be reviewed during Q3. mobilisation. Sub Total 5,740 0 5,740 2,892 2,848 5,716 (24)
Portfolio: Culture, Leisure and Tourism Albert Avenue Baths 2,115 2,115 29 2,086 1,115 (1,000) Progress the design, procurement and Progress design to RIBA stage 4 Design progressed to RIBA stage 3. The stage 4 Reprofile £1,000k from 20/21 to 21/22. delivery of the scheme design is ongoing.
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Page 1 Capital Programme Monitoring 2020/21 - Second Reported Period APPENDIX B Forecast Outturn and Actual Outputs/Milestones against Planned to 30.09.20
Other Revised Actual Budget Changes Budget Spend Remaining Forecast Forecast Full Year Second Monitoring Period 2020/21 2020/21 2020/21 2020/21 Spend Outturn Variance Outputs Planned Actual Programme £'000 £'000 £'000 £'000 £'000 £'000 £'000 2020/21 Activity Outputs Comments Beverley Road Baths 2,514 2,514 111 2,403 2,514 0 Progress the design, procurement and Continue on site with early works agreement Roofing works are underway and main scheme delivery of the scheme to replacement roof covering. Continue development is ongoing developing main scheme.
Ice Arena Gas 143 143 5 138 143 0 Continue with service operation and Continue to maintain the site and call upon Capital maintenance plan of work for the 2020 The rationale for investment follows HCC strategy to keep the service Refrigeration replace Air handling units capital investment when required repairs can period completed, options related to CV19 functional and in operation at minimal cost and incorporating CV19 mitigation not be sustained by revenue allocations. mitigation to be drawn up and circulated without replacing the main refrigerant plant until a new ice facility is provided CV19 mitigation to be drawn up and and the existing facility can be closed. circulated Library Equipment 400 400 118 282 400 0 Spend on library resources has been profiled Spend is lower than we anticipated due to a key We continue to monitor the budget expenditure on a monthly basis and are Resources for the year. The busiest buying period is confident of achieving the allocated budget by the end of the financial year. supplier going into administration, this should be between October and December due to the nature of publishing. There is also a backlog resolved in the 3rd and 4th quarters. In addition of orders as one of the key suppliers went in several database renewals are behind schedule to administration during lockdown. We are in the process of retendering the contract. due to suppliers furloughing staff. Parks 733 733 234 499 733 0 391 340 Parks Playground Project Improvements starting Stage 3
Parks - East Park 1,300 1,300 404 896 1,300 0 Complete the delivery of the Pickering Progress with the procurement of contractors Splashboat works ongoing. Splashpad contractor £350k pressure to be realised in 21/22 as a result of additional works needed Splashpool, Pickering Park Aviary and the refurbishment of East for delivery of the Splashpad and Pickering procured and planning approval granted. to the Splashpad to repair the structural slab and automate the Splashboat. Park Aviary Park Splash Boat and Splash Pad Park Aviary and obtain planning approval for Negotiation with Pickering Park Aviary contractor is both schemes. Progress with works to the underway and planning approval has been granted. Splashboat.
Sub Total 7,205 0 7,205 901 6,304 6,205 (1,000)
Portfolio: Economic Investment, Regeneration & Planning, Land & Property Boulevard UFE Phase 1,192 1,192 0 1,192 500 (692) Project to be tendered, Contractor to be Tender documents to be produced together Tender documents received by Property together Tender documents being checked by legal, to tender this month. 4 appointed and construction work to begin. with Pre-tender estimate within budget. with Pre-tender estimate within budget.
Buildings Optimisation 1,565 350 1,915 96 1,819 1,837 (78) George Street contract to be placed and George Street - Start on site expected. George street - Start on site previously delayed Programme completed. Forecast £136K 20/21, 79 Lowgate - Design completion and Start due to supply chain inactivity, however start on site Contractors retention release £7K 21/22. on site expected. now due 05/10/20. Pre-start meeting with JP Lowgate contract to be placed and work to Developers Ltd. held 17/09/20. be carried out. Forecast £1,837K 20/21, 79 Lowgate - Design work substantially complete. £350K 21/22. Contractors retention The contract is now in place with Hobson & Porter release £50K 22/23. Ltd. Commencement on site 21/09/20. Current completion forecast 14/05/20. Carbon Neutral 2030 1,120 1,120 0 1,120 1,120 0 Wind Turbine viability complete. Corporate Commence identification of phase 2 EV Some sites identified and desk top assessments Elements of the Programme have been delayed by Covid-19 and staff EV points installed. Phase 1 PV charge point sites. Initial roof top and canopy complete. Roof top and canopy sites identified. resource reallocation. assessments completed and installation locations for assessment identified. Tender documents being written and procurement commenced. EV points at Interchange Production of tender documentation for wind routes identified. installed. turbine and solar farm starts
City Hall Shops 122 122 0 122 122 0 Subdivide the 3 larger vacant units into separate smaller units to achieve lettings City Plan Regeneration 9 (9) 0 0 0 0 0 Projectsand increase linked revenue to the City income. Plan. Remaining Projects linked to the City Plan. Remaining funds to be used for remodelling Projects funds to be used for remodelling facilities. facilities.
Corporate Buildings 2,749 2,749 2,307 442 3,200 451 Capital investments driven with a focus on Continue to monitor projects. Undertake Pressures on revenue maintenance leading to During the second quarter projects are in the process of being commissioned Maintenance (inc. health and safety and statutory statutory inspections and progress planned further capitalisations of health and safety as planned. The projected over programming is to ensure that the corporate Health & Safety) compliance at a corporate building level. capital schemes, react and undertake maintenance items which can not be sustained by estate is compliant in both health and safety and statutory compliance and In addition a programme of planned emerging CV19 related works to ensure HCC revenue. Planned capital projects re-aligned to that the service areas continue to function. In addition to the focus is improvements led by condition data assets are Covid safe. prioritise health and safety. Statutory inspections ensuring recently completed major schemes have an appropriate amount of pertaining to corporate properties and the in progress and CV19 works underway warranty coverage and maintenance inspections. Covid19 related works and maintenance ensuring no loss of service. the effects of Covid19 are taking significant resourcing in managing and planning works to mitigate. Corporate Property 415 415 9 406 415 0 City wide energy saving investment Energy saving Framework issued to Energy saving Framework issued to Procurement Its is anticipated that the budget will be committed and utilised in full during Energy Savings programme Procurement department for tender to local and awaiting Procurement comments this financial period however as the economy returns and resource and Projects contractors supply chains begin to return to full operating capacity social distancing and additional health and safety considerations impact on programme length. In addition there is some delay during Q2 receiving comments and tendering the framework through procurement, it is anticipated that the activity will be complete in Q3. Fruit Market Multi 3,827 3,827 1,274 2,553 3,827 0 Reflects HCC commitment to support the External scheme and payment is as per milestone Storey Car Fruit Market redevelopment in terms of schedule of works completed. Park/Humber Street financial support for the new Multi Storey Property car park and Humber Street Properties
Guildhall Roof 1,003 1,003 428 575 1,003 0 Delivery of phase 1 of the proposed on site and in progress on site and in progress Due to C19 and a pause during lockdown the scheme has suffered a month guildhall roof works and phase 2 delay on site however the project is now back on site and in progress, due to complete early November 2020
Guildhall Security 224 224 0 224 224 0 Delivery additional security gates to on site and in progress on site and in progress The installation of the gates will be complete during this financial period, they Gates Guildhall as part of the roof maintenance are currently in manufacture now due to complete October 2020 scheme
Hepworths Arcade 250 250 0 250 250 0 Delivery of proposed backlog maintenance on site and in progress on site and in progress Due to C19 and a pause during lockdown the scheme has suffered a month works delay on site however the project is now back on site and in progress, completion due Nov 2020
Key Buildings Energy 1,034 1,034 23 1,011 1,034 0 City wide energy saving investment Energy saving Framework issued to Energy saving Framework issued to Procurement Its is anticipated that the budget will be committed and utilised in full during Efficiency Programme programme with a focus on 5 key Procurement department for tender to local and awaiting Procurement comments. Detailed this financial period however as the economy returns and resource and buildings, all detailed schemes delivered contractors. Detailed design elements design elements commissioned and now in supply chains begin to return to full operating capacity social distancing and commissioned progress additional health and safety considerations impact on programme length. Page 190 of 238
Page 2 Capital Programme Monitoring 2020/21 - Second Reported Period APPENDIX B Forecast Outturn and Actual Outputs/Milestones against Planned to 30.09.20
Other Revised Actual Budget Changes Budget Spend Remaining Forecast Forecast Full Year Second Monitoring Period 2020/21 2020/21 2020/21 2020/21 Spend Outturn Variance Outputs Planned Actual Programme £'000 £'000 £'000 £'000 £'000 £'000 £'000 2020/21 Activity Outputs Comments Multi Storey Car Parks 317 317 16 301 100 (217) Delivery the intermediate service area Scope of works for Osbourne welfare Works package issued to Procurement awaiting Awaiting comments from procurement / legals to proceed with tender. (Feasibility & needs and health and safety inspections tendered and returned awaiting construction tender issue Works planned to Q3/Q4 Refurbishment) lead in
Pryme Street MSCP 250 250 0 250 250 0 External cladding scheme of works Works commissioned and in design stage Works commissioned and in design stage The existing external cladding to Pryme Street MSCP has had temporary repairs to ensure it is compliant in terms of health and safety but requires a permanent solution moving forward to secure the site to ensure it remains compliant and safe to use for ongoing lifespan
Regeneration - Green 50 50 0 50 50 0 Contractually committed for CCTV Works Contractually committed for CCTV Works to Alexandra Dock. NPS to confirm Port Hull to Alexandra Dock. NPS to confirm when when this scheme is due to commence on site. this scheme is due to commence on site. Stockholm Road 150 150 0 150 150 0 The Stockholm Rd Security Programme Costed Feasibility Study. Feasibility Study delayed due to Coronavirus Security includes repairs and improvements to pandemic.. depot security and facilities, encompassing perimeter fencing, groundworks, lighting and CCTV cameras that are considered essential to improve safety and efficiency of those services operating from Stockholm Road Strategic Property 865 3,937 4,802 562 4,240 4,802 0 To purchase Bradbury House, Porter To purchase the former Myton Retail Park in Hull Purchases Street, HU1 2RH. The purchase is to be at City Centre and associated land and property open market value and to fund the initial fit- out works to meet corporate office requirements. Wilson Centre Air 250 250 0 250 50 (200) Deliver a number of sustainable energy Monitor the site and overheating during CV19 CV19 mitigation implemented where possible. Due to Covid19 and emerging guidance set out by CIBSE and HSE the use Conditioning saving elements of work with a focus on period Window film proposal complete and relocation of of air conditioning and air circulation is prohibited due to the spread of cv19 sustainable approaches to energy use for Air handling units to external façade in planning through air handling systems and air conditioning units. The CV19 changes heat reduction stage to the air handling have been undertaken and additional overheating mitigation complete however it is unlikely that the air conditioning will be completed for the foreseeable future during the pandemic.
Sub Total 15,392 4,278 19,670 4,715 14,955 18,934 (736)
Portfolio: Housing HRA: Council House 2,372 238 2,610 453 2,157 2,024 (586) Provision for an estimated 2,100 major 282 255 As reported previously, there continues to be a waiting list for surveys Adaptations and minor adaptations to provide following Adult Social Care clearing their backlog of assessments. This has assistance to tenants in council properties. been compounded by COVID-19. The Housing Service have put resources into place to be able to address the waiting list, and at this stage of the year it is envisaged that the budget is likely to be delivered in the current financial Empty Properties 1,355 162 1,517 217 1,300 1,517 0 On-going scheme for the acquisition and 10 4 No specific issues, acquisition and refurbishment programme for year. 12 refurbishment of empty property to bring previously acquired properties will complete their refurbishment during 2020- back into use as council housing. 21. Additional properties will be added to the refurbishment programme in 2020-21. High Rise Fire 739 86 825 113 712 775 (50) Medium term budget established following 0 0 Installation of fire doors continues to be on hold due to fire test failures as Protection Works the Grenfell fire tragedy to enhance fire previously reported. No specific requirements for use of the general safety measures throughout Hull CC stock measures provision carried forward from 2019-20 at this time. Expenditure of high rise blocks of flats - specific works forecast reflects the latest best estimate of spend on available information, to to include over 1,200 fire safety doors, be further reviewed as the year progresses. with general provision to allow for any costs arising from the outcome of review, recommendation or guidance. Housing Regeneration 258 31 289 65 224 258 (31) Budget provides for outstanding works on 36 52 Main spend being HRA contribution to renewal programmes to be paid by Schemes Preston Road and garage demolitions. journal as year end adjustment. The budget provides for the demolition of c.100 garages as well as the 5 fire damaged properties on Stroud Crescent East. New Build 8,591 1,025 9,616 3,152 6,464 10,365 749 Budget provides for the delivery of new 0 0 The current COVID-19 pandemic is expected to have a significant impact on build homes across the city. This is now delivering new homes with completion dates to be revised. Currently into the second year of a planned five year assessing the impact on the programme and this will be further understood programme to build 500 new properties for by Q3. Small sites programme sees the council in contract with four rent. contractors for phase 1 to deliver 39 new homes. Any completions won't be expected until the early part of 2021-22 due to COVID-19. A further 15 homes off Hawthorn Avenue are in contract and two homes completed and handed over during August. It's still anticipated that the remaining homes will complete by March 2021. Preston Road sites sees the council looking to contract 25 new homes. A start on site is expected this financial year, however it is not expected that these will complete in 2020-21. Grange Road site activity now re-established following closedown due to COVID-19. A further 9 new council homes has been added to this site following cabinet approval. The first two homes were completed and handed over in August. Dane Park site has a preferred contractor chosen. A planning application is currently being prepared and will be submitted in September/October. It is anticipated that works will commence mid/late Q4.
Planned Capital Works 13,175 1,265 14,440 2,877 11,563 13,737 (703) Provision for over 2,300 elements of work 50 234 The budget has been reviewed at Q2 across all the programme schemes in including planned and responsive kitchen, light of works now starting following the COVID-19 restrictions in place bathroom, heating system replacement, during the early part of the year. The scheme of works for replacement rewires, roofing and replacement doors. lighting conductors across high rise and low rise stock are now ready for Additional low cost outputs, e.g. periodic tender with the main programme of works expected to start in 2021-22. As electrical inspection, smoke alarm previously reported at Q1 the budget has been slipped into 2021-22. £2m of inspection & replacement, along with the current planned capital works budget relates to reactive elemental works specialist and communal works are also arising mainly when properties become void, and as a result, there is a risk of costed to this budget. additional variances to what has already been declared should actual requirements differ from the assumptions used when forecasting at Q2.
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Page 3 Capital Programme Monitoring 2020/21 - Second Reported Period APPENDIX B Forecast Outturn and Actual Outputs/Milestones against Planned to 30.09.20
Other Revised Actual Budget Changes Budget Spend Remaining Forecast Forecast Full Year Second Monitoring Period 2020/21 2020/21 2020/21 2020/21 Spend Outturn Variance Outputs Planned Actual Programme £'000 £'000 £'000 £'000 £'000 £'000 £'000 2020/21 Activity Outputs Comments RTB Grant 651 78 729 89 640 729 0 Use of surplus Right to Buy receipts that Not available The budget and funding assumptions may need to be adjusted to reflect any would otherwise have had to be returned further successful bids as the year progresses. to CLG to provide other social housing providers build properties in the city. Solid Wall Insulation 9,772 1,160 10,932 1,710 9,222 11,858 926 The base budget and slippage provides for Not available Delays on the Bransholme Caspon contract due to COVID-19 restrictions and the continuation of the cladding as a result of this works started in June 2020, expected completion date of programme with a third phase of works to November 2021. Similar issues are delaying the Orchard Park 5M 422 Caspon type properties at Bransholme programme, with works expecting to start in September 2020 to complete (£12.0m). In addition, provision of £1.45m March 2021. has been included for works to 49 '5M' type properties at Orchard Park, which were formally removed from the programme in 2017-18, pending further investigation to determine the suitability of insulating this type of property. The remainder of the budget is for Warmzone team costs. Hull Neighbourhood Renewal Programme: Housing and 185 22 207 84 123 207 0 Carry forward of successful bid funding to 0 0 Delays due to COVID-19 with vulnerable clients but the programme is Technology for People promote independent living for people with expected to complete to budget in year. with Learning learning difficulties through the use of Disabilities assistive technology. The funding will provide for 51 people to have more choice and independence. Ings Programme 754 90 844 1 843 340 (504) Continuation of residual programme of Engagement with those owners and residents affected in the remaining phases of acquisition and Overall programme near to completion, one final property acquisition acquisition and demolition works at the continued preparation for demolition. required and five demolitions scheduled for 2020-21. Ings renewal area to deliver cleared land for development. Newington & St 198 24 222 62 160 168 (54) Continuation of residual programme of Programme has reached it's natural conclusion, no specific measurable outputs in year. All properties for this scheme have been acquired and demolished. There Andrews Programme acquisition and demolition works at the are some residual costs where properties have been acquired and the title to NaSA renewal area to deliver cleared land compensation remains unknown. The demolition of Charleston Club site for development. previously marketed without success has been cleared and is to be marketed. Preston Road 484 58 542 13 529 386 (156) Continuation of residual programme of Engagement with those owners and residents affected in the remaining phases of acquisition and Overall programme on target to available budget, final property acquisition acquisition and demolition works at the continued preparation for demolition. and demolition scheduled to complete 2020-21 requiring some re-profile of Preston Road renewal area to deliver the remaining provision. cleared land for development. Priority 1,587 192 1,779 108 1,671 1,779 0 Budget provides for a three year 0 0 Resident consultation events undertaken in March, October 2019 and March Neighbourhoods programme of frontage and 2020. Procurement via rotational method was launched in early 2019 with Programme - neighbourhood improvements to 352 an estimated start on site expected during March 2020. Works were Frontages privately owned housing at Ruskin/Perry suspended due to COVID-19 until June 2020 subject to review. Review has St, Conway Close, Sculcoates Lane and taken place with the first works to begin on Conway Close September 2020. Folkstone Street as approved by Cabinet on 23rd July 2018, and part supported through draw down of ECO/Redressing the Balance funding prom previous energy efficiency programmes. Disabled Facilities 2,591 309 2,900 346 2,554 2,200 (700) To provide means tested grants for 58 0 There is a waiting list for surveys as a result of the COVID-19 pandemic. The Grant adaptations to enable disabled private Housing Service are putting resources into place to be able to address the residents to live independently at home. waiting list. Subject to the number of OT referrals it is envisaged that a more realistic budget of £2.2m is likely to be delivered in the current financial year. Potential for Adult Social Care to identify further projects/work streams eligible for DFG funding in the year. Should these materialise, or the OT referrals significantly vary to the expected numbers, then the forecast will be adjusted accordingly through future monitoring rounds.
Private Sector Housing 715 85 800 365 435 800 0 Block provision to tackle category one 4 0 No specific issues to report at period 2. hazards and non decency through loan assistance to vulnerable private homeowners, improve energy efficiency, enforcement actions for empty properties/works in default, assist in the delivery of statutory housing/nuisance duties and poor conditions within the private sector and contribution to regeneration activity in renewal areas. COVID-19 Contingency 4,825 -4,825 0 0 0 0 0 To manage current uncertainty around N/A N/A There is a need to use this budget to re-instate budget levels to the Budget COVID-19 impact across the Housing forecasted outturn positions on schemes across the Housing Portfolio. Portfolio Sub Total 48,252 0 48,252 9,655 38,597 47,143 -1,109
Portfolio: Learning, Skills & Safeguarding Children
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Page 4 Capital Programme Monitoring 2020/21 - Second Reported Period APPENDIX B Forecast Outturn and Actual Outputs/Milestones against Planned to 30.09.20
Other Revised Actual Budget Changes Budget Spend Remaining Forecast Forecast Full Year Second Monitoring Period 2020/21 2020/21 2020/21 2020/21 Spend Outturn Variance Outputs Planned Actual Programme £'000 £'000 £'000 £'000 £'000 £'000 £'000 2020/21 Activity Outputs Comments Children's Homes 1,592 1,592 147 1,445 1,304 (288) Budget provision to build two new Works at the Ings Children's home progressing and due to complete in November 20, negotiations The new build for the six bedroom children's home at Ings commenced in Reprovision/New Build children's homes within the city. with Keepmoat for the West Hull home ongoing with the hope of entering contract within the next January and progressed well until works had to be suspended on the 27th 6 weeks. Tender negotiations for the design of Limetree Children's home ongoing with March 2020 due to the Covid – 19 pandemic. Works resumed on the 11th expectation to enter a PCSA in the next few weeks. May 2020 and good progress has been made, the home is expected to be completed by November 2020. Progress has been made on the West Hull Children’s home following discussions with Keepmoat Homes. The architects have now prepared the final issue construction drawings and the cost plan is now being prepared. Once the cost plan is submitted and benchmarked we will be able to enter contract for works to progress, the developer has undertaken works to DPC level at risk. As soon as we enter contract with the developer there will be a lump sum payment application to meet the cost of the works that have already been undertaken. The completion for this project has now been revised to end of March 2021 due to the Covid-19 pandemic. Cabinet approved (Cabinet 27th April 2020) the construction of another Children’s home to replace the existing Limetree Court children’s home. Negotiations are ongoing to agree design costs with Compendium and once this is completed we will enter a Pre-Constructions Services Agreement for Children's Homes 500 500 4 496 500 0 Delivery of a number of schemes to tender 100% of the proposed backlog 30% of the schemes out to tender Onthe targetdesign for works. delivery during this financial year however C19 social Backlog Maintenance address the backlog maintenance to a schemes distancing has impacted on the homes ability to accommodate construction number of existing children's homes and works on site for the immediate future. In addition resource in procurement improve the service provision quality of have delayed issuing the tenders. It is anticipated that all schemes to be accommodation tendered during Q3 and complete in Q4.
Devolved Formula 214 214 5 209 214 0 Devolved Formula Capital grant can be used by the school for any capital purpose relating to schools buildings and assets, including ICT equipment. Any unspent grant funding arising from 2019/20 has been carried Capital forward into 2020/21, in line with the terms and conditions of the grant. The grant is fully devolved out to individual schools, and is therefore controlled and monitored at an individual school level.
Education for 2 Year 28 28 8 20 28 0 £28k full carry forward will be used to enhanced provision for children with West side Marfleet have purchased resources and Agreed that there will be enhanced provision for early years children in the Olds support additional identified nursery identified additional needs in the West and equipment for their setting; children now accessing east, west and north areas of the city. All Settings have now been identified provision across the city East areas of the city have been agreed in the specialist support. and resources and equipment purchased so that all are operational from Westside Marfleet nursery provision in the September 2020. East and Haven Day nursery in the West. Hull Training Adult 49 49 0 49 70 21 Hull Training Adult Education is a we estimate our original budget £70k. Education successful training provider and part of the However I am unsure of the capital works to budget savings proposals is for an the building, security main entrance which for increase in income over the next 3 years. obvious reasons has been on hold. Additional capital investment is required to, facilitate the provision of additional training courses through investment in buildings and equipment.
Investment in Schools 497 10 507 92 415 497 (10) Complete all works and close down BSF Continue to close out defects and final Defect resolution and final account settlement (BSF) financially accounts ongoing Schools Maintenance 10,753 47 10,800 4,059 6,741 11,850 1,050 Handover of St Mary's College & Kelvin Further development of D&B contract for new Continuation of work, towards the handover at Forecasted overspend will be offset by the S106 monies (total £3.6m over and Improvement Hall and expansion of Newington Primary school at Broadacre Primary School Kelvin Hall and St Mary's. the next two years) for Broadacre Primary School. A report was considered Programme School at CST on 9th June 2020 which advised there is sufficient money to deliver the committed programme however, insufficient money in this funding stream for additional pupil places that are required under our statutory duties.
Special Provision Fund 348 348 8 340 348 0 Handover of Wansbeck SEMH/ASD Continuation of work towards the completion (SEN) resource base, Ings Primary ASD resource of remodelling scheme at Ings base and the Kelvin Hall ASD resource base. Service Transformation 3,000 3,000 633 2,367 2,000 (1,000) In line with MTFP included within the In line with MTFP included within the Council Council approved Budget Report. approved Budget Report.
Sub Total 16,981 57 17,038 4,956 12,082 16,811 (227)
Portfolio: Neighbourhood, Communities & Environment Cemeteries - Priory 1,618 1,618 20 1,598 1,618 0 Completed tender and commence works Completed planning application for visitor Planning application for the visitor centre The specification is complex as includes replanting, redesign of visitor centre, Woods to re landscape the site. centre, completed design works completed and awaiting results from ER, due end reshaping of pavements, children's areas, burial and internment of ashes of September 2020. Landscaping design works areas, pet cemetery etc. All to be considered individually. completed, and finalising costs for tender process. City Mortuary Body 179 179 6 173 200 21 To complete the project by April 2021 project paused in this quarter project paused in this quarter projected capital required slightly more than budget, due to new, up to date Storage prices received by potential bidders Coroners Court Digital 0 50 50 0 50 50 0 To equip the Coroner’s Court room and New Scheme Readiness Project jury room to enable court hearings to take place using digital technology, and incorporating the facility to broadcast the hearing into the Jury Room so that the Coroner and advocates can safely distance in the court room, and also to join witnesses into the hearing from external remote environments using digital means.
Cremators 92 92 30 62 92 0 Project completed, balance is remaining No further action for this project Replacement service maintenance costs Programme Page 193 of 238
Page 5 Capital Programme Monitoring 2020/21 - Second Reported Period APPENDIX B Forecast Outturn and Actual Outputs/Milestones against Planned to 30.09.20
Other Revised Actual Budget Changes Budget Spend Remaining Forecast Forecast Full Year Second Monitoring Period 2020/21 2020/21 2020/21 2020/21 Spend Outturn Variance Outputs Planned Actual Programme £'000 £'000 £'000 £'000 £'000 £'000 £'000 2020/21 Activity Outputs Comments Green Space/Area 750 750 143 607 750 0 Ringfenced funding to support area and Projects agreed at Area Committees on an ongoing Based Projects (S106) community based schemes as agreed basis. through the Area Committee network
Local Community 750 -96 654 129 525 654 0 Provides capital for each ward to support Projects agreed at Area Committees on an ongoing Initiatives community based projects which improve basis. local facilities, support Council priorities and improve the quality of life for local residents.
Traveller Sites 800 800 40 760 800 0 No spend in 2019/20 so carried over in to Cabinet approved in February 2020 for a feasibility study and consultation 2020/21 as a result of a delay in finalising with the community on proposals to provide extra permanent pitches and a the option agreement on the land. A temporary stopping site on two sites at Bedford Street and Mount Pleasant. forecast can be provided for 20/21. In March consultation took place with the local traveller community to discuss both proposed sites. Shortly after this event the Covid–19 lockdown began which has impacted on further consultation taking place. We are again now in a position to progress consultation with the local community. The pandemic also delayed getting onto the sites to start the site investigations. Site Investigations have now taken place and the results for both of the sites are due in the coming weeks. The results of these site investigations will determine the extent of remediation work required to deal with any Sub Total 4,189 (46) 4,143 368 3,775 4,164 21 contamination and the extent of any costs required to deal with this.
Portfolio: Operational Services Bridge Maintenance 500 500 0 500 500 0 This budget is required to enable the This budget is required to enable the Bridges Ongoing assessments to several of the Cities Reduction in budget due to failed DFT match funding bid. Bridges team to carry out its client function team to carry out its client function and critical bridges infrastructure and commission inspections and commission inspections and assessment assessment through external consultants. through external consultants. A match A match funding bid of £12.22m was funding bid of £12,220,00 was submitted to submitted to the DFT but this was the DFT but this was unsuccessful therefor I unsuccessful therefore a budget reduction have shown a budget reduction in line with in line with this. this. Consultants have now commenced carrying out a programme of bridge assessments which were delayed due to the Covid-19 pandemic. Bridge Repairs 192 375 567 37 530 567 0 Ongoing investigations are being carried Ongoing investigations are being carried out Ongoing investigations are being carried out to It is anticipated that a substantial increase in the budget will be required to (Feasibility) out to Sculcoates Bridge. to Sculcoates Bridge. Together with a Sculcoates Bridge. Together with a feasibility study secure the future of Sculcoates Bridge. The scope will not be known until a Repairs/strengthening delayed due to feasibility study which is currently being which is currently being carried out as to the full feasibility study has been completed. assessment result. Major repairs will be carried out as to the bridges long term future. bridges long term future. Major repairs will be required to maintain the structure as Major repairs will be required to maintain the required to maintain the structure as usable in the usable in the future. A feasibility study is structure as usable in the future. future. currently being carried out as to the bridges long term future Bridges - Scott Street 1,000 1,000 0 1,000 1,000 0 Due to delays caused by Covid 19 the Continuation of programme to remove the Continuation of programme to remove the bridge The programme for this works has been severely impacted by Covid-19 tender has only just been let. It is bridge, programme is approximately 2 weeks as per contract. anticipated that there will be several behind schedule compensation claims due to changing working practices under the Covid19 guidelines. It is also anticipated that site supervision fees will increase substantially for the same reason. Therefore the whole budget needs to be retained Bus Lane Cameras 0 109 109 0 109 109 0 In order to enforce the new bus lanes, new New Scheme bus lane cameras are required with the investment paid from additional income generated. Highways England may part fund the investment. City Coach Park 200 200 0 200 200 0 Identify a suitable city centre location for None None Resource focused on COVID response for pedestrians and cyclists the coach park, begin land acquisition & outline design of alterations required to make suitable. CCTV Camera 359 359 33 326 359 0 CCTV Cameras & Columns This entire budget will be spent this financial To be compatible with Smart City Platform. Replacement year on the replacement of the redundant analogue CCTV recording equipment to digital data storage. Cycling Network 500 500 0 500 500 0 Main priorities of LCWIP delivered Continued development of pop-up schemes Consultation has been delayed by COVID-19 and alternative means of and quick wins from LCWIP engagement being explored. Additional resource to support design process of cycle routes has been secured
Electric Vehicle 69 69 0 69 80 11 The provision of Electric and Hybridge Installation of 26 EV points at Pryme Street EV points at Pryme Street, Lowgate and Stockholm To facilitate the use of Electric vehicles by Council officers, and in due Charging Points Vehicle Charging Infrastructure in the city car park, Stockholm Road depot, Lowgate Road have been installed and are being course, members of the public, in place of diesel and petrol vehicles by the with an initial duration of 5 years, with car park and History Centre car park commissioned. We are awaiting power upgrades installation of charge points at Stockholm Road and Pryme Street and provision for an extension of up to a by Northern Powergrid to enable History Centre to George Street car parks. The increased cost is due to unexpected additional further 2 years. be installed. installation costs High Street / Queen 1,000 1,000 918 82 1,000 0 Completion of improvement scheme Scheme design to be progressed. Contract Scheme design progressed. Contract Outline design started and surveys commissioned. Consultation with Street arrangements started arrangements commenced surrounding developments progressing.
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Page 6 Capital Programme Monitoring 2020/21 - Second Reported Period APPENDIX B Forecast Outturn and Actual Outputs/Milestones against Planned to 30.09.20
Other Revised Actual Budget Changes Budget Spend Remaining Forecast Forecast Full Year Second Monitoring Period 2020/21 2020/21 2020/21 2020/21 Spend Outturn Variance Outputs Planned Actual Programme £'000 £'000 £'000 £'000 £'000 £'000 £'000 2020/21 Activity Outputs Comments Highways - Area Based 558 96 654 87 567 654 0 Area schemes implemented Ongoing engagement with Area Teams Engagement with Members re: scheme options Design work ongoing but engagement is more difficult in current Projects circumstances
Highways Estate 500 500 0 500 500 0 Schemes delivered as part of wider capital Further identification of sites and planning of Resource focused on immediate COVID-19 response Maintenance / Verges programme activity
Highways Projects 12,849 790 13,639 2,143 11,496 13,639 0 Capital programme delivered The continued delivery of carry over schemes The design of carriageway and footway schemes Delivery impacted by COVID lockdown and inability to deliver schemes and design of carriageways and footways as planned. where there is significant impact on residents. More schemes going to site schemes from mid-June as restrictions are eased and delivery becomes easier.
Highways Scheme 567 567 20 547 567 0 Schemes developed ready for future Continued development of Calvert Lane Continued development of Calvert Lane scheme Development funding bids scheme
Highways Smart Cities 24 375 399 3 396 399 0 Upgrades of existing ITS assets to enable Upgrades of existing ITS assets to enable As on street equipment is upgraded telemetry enabling interface with the future Smart City communication. future Smart City communication. Councils Urban Traffic Control system is being upgraded using this budget. The Covid-19 situation has delayed the start of the work planned this year, however all that is planned will be completed All planned works for financial year 2019/20 have now been completed by the end of 2020/21. Park & Ride 279 279 0 279 279 0 Development of feasibility Continued engagement with consultants Resource focused on immediate COVID-19 response (Feasibility) Pearson Park Road 300 300 0 300 300 0 Highway improvements delivered Priory Way 1,794 1,794 20 1,774 1,794 0 Improvement scheme delivered To continue the completion of the design Amendments to design agreed internally, awaiting revised drawings and review and amendments costs.
Real Time Bus 500 500 212 288 500 0 Real Time Bus Timetables - Contractual Installation of hardware - Bus Stop and Installation of screens. Timetables commitments have been made to procure Concourse screens at Paragon interchange. and install seven 49 inch concourse screens and forty-two 22 inch bus stand screens at the interchange fed by real time data which links to the Smart City Programme and replaces the old defunct system. Complimentary work is planned to increase journey planning screens within the Interchange and other strategic positions within the City, roll out to key bus stops and to continue working with other stakeholders e.g. Rail Franchisees. Saltbarn Reprovision 392 392 28 364 392 0 This project is for the construction of a It is anticipated that the salt barn will be Tender documents under review by legal and procurement. fabric covered, galvanised steel structure completed before the year end. The tenders at Stockholm Road Depot, that protects are in for the work and tender evaluation is the winter salt store from the weather about to commence Street Lighting 76 76 2 74 76 0 Completion of Spend to Save LED Replacement programme complete on adopted highway Programme network plus a range of other assets including car parks and other facilities where there is a need to reduce energy Streetscene (Bridges) 158 158 88 70 158 0 The full budget will need to be retained to Ongoing investigations , assessments of Ongoing investigations , assessments of critical External consultants will continue to be used to carry out bridge enable investigation works to continue on critical bridge infrastructure bridge infrastructure assessments. With the bridges section taking a client role. Clough Road, Holderness Road, Beverley Road, bridges and to fund any subsequent repair/strengthening works on these structures which are on main arterial routs in the City. Water Pumps 157 157 1 156 157 0 The purchase of the welfare vehicle and Vehicle procurement progressing to ensure Vehicle and equipment specification evaluated Process delayed due to supplier lockdown washing unit could not be completed in delivery 19/20 due to issues with overseas suppliers during Covid-19. Purchase of welfare vehicle and vehicle mounted washing unit to be purchased in 20/21. Wawne 1,773 1,773 0 1,773 1,773 0 Designs completed and contractor start on Contract management resource engaged Contract management resource engaged View/Kingswood APP site Infrastructure
Sub Total 23,747 1,745 25,492 3,592 21,900 25,503 11
Portfolio: Hull World Class Visitor Destination Programme 2017 Priority Programme:
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Page 7 Capital Programme Monitoring 2020/21 - Second Reported Period APPENDIX B Forecast Outturn and Actual Outputs/Milestones against Planned to 30.09.20
Other Revised Actual Budget Changes Budget Spend Remaining Forecast Forecast Full Year Second Monitoring Period 2020/21 2020/21 2020/21 2020/21 Spend Outturn Variance Outputs Planned Actual Programme £'000 £'000 £'000 £'000 £'000 £'000 £'000 2020/21 Activity Outputs Comments Beverley Road 1,543 1,543 62 1,481 593 (950) Third party grant projects complete: Selection of boundary treatment contractor + NLHF approval obtained, corporate approvals in Programme has been revised due to delays from third parties progressing Heritage Investment Station Inn, 53-55 Beverley Road; 72 securing all approvals (from HCC and NLHF) place and boundary treatment contractor grant applications due to impact of Covid-19. The project has also been Beverley Road; 82 Beverley Road; 84 for appointment of bidder. Supporting grant appointed. Grant application for 53-55 Bev Road extended to October 2022, therefore move £500k from 20 / 21 into 21 / 22 Beverley Road. application from owner 53-55 Beverley Road, submitted and approved. Trafalgar Street Church: and £450k from 20 / 21 into 22 / 23. Third party grant projects start: 52a-54 preparing application appraisal and securing scope of works clarified and progress made on Brunswick Arcade (HCC's owned); approval from Board and HCC. Supporting stage 2 submission. No 72: Professional Advisor Trafalgar Street Church; Stepney Station; the progression of grant applications for appointed and ratified by the Programme Board. Pendrill House. Trafalgar Street Church, Nos 72, 82, 84, Pendrill House: Value engineering carried out by Boundary Treatment Project complete. Pendrill House, and Stepney Station House. architect to achieve budget. Stepney: Professional Delivery of the Activity Plan Engagement with other earmarked property Advisor re-engaged after change of owner. owners. Submission of NLHF claim for Engagement with owner of Victoriana to prepare a Quarter 1. grant application. Quarter 1 Claim submitted to NLHF 12.08.20. Beverley Road 52a-54 561 561 30 531 561 0 Progress the design, procurement and Issue tender returns and procure contractor Tender returns issued. Tender returns show Tender returns received 22.06.20. Brunswick Arcade delivery of the scheme significantly higher costs. The whole project cost Additional HLF funding yet to be secured. model needs to be reviewed in order to make a decision on how to progress the scheme.
City Centre Public 800 800 550 250 1,725 925 Progress Phase Public Realm installation. Progress phase 3 works Phase 3 works progressed to programme with a £925k overall cost pressure against the project. This will be realised in 20 / Realm (Phase 3) Release retentions from previous phases planned finish of November 2020. 21. This pressure relies on £226k being transferred from HYMC and £350k and close out outstanding defects being transferred from Highways
Dance Studio 100 100 0 100 100 0 Complete feasibility study None None (feasibility) District Heating 553 553 7 546 553 0 Progress the design, procurement and Produce and issue tender documents for DPD procurement documents issued (Feasibility) delivery of the scheme DPD
Guildhall Timeball 194 194 -9 203 194 0 Installation of time ball and restoration of Procure a Main Works contractor. Continue Procurement of Main Contractor ongoing. Timeball the tower manufacture of Timeball. manufacture ongoing.
Heart of the City 1,535 1,535 617 918 1,535 0 Submit planning application associated Develop the scheme to RIBA stage 2 Scheme developed to RIBA stage 2 Regeneration with the new scheme and demolish the (Albion/Bond Street) remaining BHS building. Heritage Action Zone 68 68 104 (36) 68 0 Funding 50% of HAZ Project Manager Continued coordination of wider Old Town Continued coordination of wider Old Town Post Investment and Regeneration Works by HAZ Investment and Regeneration Works by HAZ Project Manager Project Manager
High Street Heritage 175 175 0 175 175 0 The High Street Heritage Action Zone is Secure grant funding from Historic England £1.75m grant funding secured. Pre-planning has Action Zone seeking up to £1.75m of funding from and pre-planning for project delivery enabled project to make an immediate start with Historic England to provide grants to project expenditure commencing in Q3 property owners to convert unused floor space into new residential accommodation at upper levels on Whitefriargate. This will complement the existing Humber High Street Challenge Fund which is targeting the vacant ground floor commercial units on the street. Humber High Street 2,884 2,884 89 2,795 2,884 0 The Humber High Street Challenge Fund Revision of scheme to accommodate city Variation secured from Humber LEP and revision Challenge Fund provides grant assistance from the Local centre COVID-19 business recovery response of inter-authority agreements to allow for COVID-19 Growth Fund to assist property owners / and continued processing of grants where business recovery response. 4 x grants agreed with businesses in bringing vacant commercial applicants are willing to proceed with a further 12 grant applications currently being space back into use on target high streets regeneration progressed across the Humber. Out of the total investment of £6m that the project will deliver, £4m will be invested in Whitefriargate in Hull. Future High Street 1,273 1,273 259 1,014 1,273 0 Funding 100% of consultancy costs No activity planned for Q2 - awaiting outcome Awaiting outcome of funding bid MHCLG Dev Grant £0.15m, HCC Dev Overspend £0.16m, MHCLG Del Grant Challenge Fund associated with the development of the of funding bid £20m, HCC Del Match £2m. FHSF bid and initial works associated with delivery if funding bid is successful
New Theatre Retrofit 10 10 3 7 10 0 Close out any remaining defects Progress with closure of remaining defects Defect closure progressing Pearson Park Heritage 712 712 561 151 712 0 Restoration of Pearson Park completed on Complete works to the East Lodge and Works have been completed on the Entrance Main contract work almost complete. Investment site by mid-summer. Delivery of snagging issues in the conservatory. A series Gateway, Bowling Pavilion, Bandstand, Bridge, associated Activity Plan by Community of summer 'healthy holiday' engagement Lake, Ice Cream Kiosk and statuary. Significant Engagement Ranger events have been held on the park and a landscaping improvement works have been socially distanced ribbon cutting to mark the delivered including resurfacing the internal path park's 160th anniversary. network and the addition of new planting beds and trees. River Hull+ 1,151 1,151 56 1,095 1,151 0 Complete enabling works to north yard dry Achieve practical and financial completion Practical completion other than Queens Dock Gate Partners working to address ability of gate to open once to receive Arctic docks operation Corsair
Woodford Pool 115 115 0 115 115 0 Settlement of final account and close out Progress with closure of remaining defects Defect closure progressing Extension of all remaining defects
2017 Legacy Programme: Feasibility Works 0 9 9 36 (27) 9 0 Investment in 6,269 2 6,271 499 5,772 4,500 (1,771) Progress design development, Procure whale skeleton removal and Procurement of whale skeleton removal and 20 / 21 reprofiled £1,771k to 22 / 23 Museums procurement and delivery of HYMC conservation Package conservation Package completed 21 / 22 reprofiled £5,800k to 22 / 23 projects in line with the programme Procure Museum and Dock Office chambers Tender Museum and Dock Office chambers issued Procure Historic ships package Tender Historic ships package completed
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Other Revised Actual Budget Changes Budget Spend Remaining Forecast Forecast Full Year Second Monitoring Period 2020/21 2020/21 2020/21 2020/21 Spend Outturn Variance Outputs Planned Actual Programme £'000 £'000 £'000 £'000 £'000 £'000 £'000 2020/21 Activity Outputs Comments Riverside Berth/Cruise 264 264 107 157 264 0 Procure a commercial partner to deliver Procurement / appointment of Lead Planning Design review and revisions completed. New Terminal the scheme consultant . navigational simulations designed. CDM workshop Public engagement activity related to conducted with professional team. Updated OB risk planning submission. scores with professional team. Continued contractual arrangements with Commissioned ISPS strategy for the cruise specialist design and engineering operations; fire strategy; wave and swell analysis, consultants. hydrodynamic study; dredging study, continued bird Continued contractual arrangements with surveys, new benthic study. Developed financial specialist financial consultants. and business models and related revisions. Preparation of funding bid. Completed assessment of construction quality of highways on site for increased coach loading Capacity assessments for the services for the facility (general elec/water/etc). Offshore GI Specification completed and market prices received for CAPEX. Vessel door location study completed. Feasibility study for shore power Queens Gardens 3,164 3,164 56 3,108 1,469 (1,695) Refurbishment of Queens Gardens, Completion of designs to RIBA Stage 4 and Landscape architect, M&E consultant and Reprofile £1,695k from 20 / 21 to 21 / 22. C-19 impacted significantly on including highways, public realm and submission of planning application. structural engineer are making final amendments completion of RIBA 4 package of works accessibility improvements. Introduction of to the RIBA 4 package of drawings before issuing new interpretation, art work, EV charging to the QS for costing and development of the points and wayfinding markers tender package. Sub Total 21,371 11 21,382 3,027 18,355 17,891 (3,491)
GRAND TOTAL 142,918 6,045 148,963 30,111 118,852 142,403 (6,560)
Adjustment to reflect COVID-19 uncertainties (20% reduction to 113,922 forecast)
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Page 198 of 238 Capital Programme 2020/21 - 2022/23 APPENDIX C MEMO Total 2020/21 Future Potential Budget Budget Budget to Commitment External 2020/21 2021/22 2022/23 2022/23 2023/24+ Funding Total Programme £'000 £'000 £'000 £'000 £'000 £'000 £'000 Adult Servies and Public Health Alcohol Treatment 41 0 0 41 0 0 0
Corporate Services ACFS System Refresh Project 211 0 0 211 0 0 0 Agile Working/Work Smart 332 1,600 0 1,932 0 0 0 Customer Enablement 574 216 0 790 0 0 0 Digital Programme 110 0 0 110 0 0 0 ICT - Migration to Cloud 1,956 2,078 1,219 5,253 0 0 0 ICT Infrastructure 2,557 2,610 2,670 7,837 0 0 0 ICT Relocation 0 398 0 398 0 0 0
Culture, Leisure and Tourism Albert Avenue Baths 1,115 2,800 0 3,915 0 0 0 Beverley Road Baths 2,514 400 0 2,914 0 0 0 Ice Arena Gas Refrigeration 143 0 0 143 0 0 0 Library Equipment Resources 400 400 400 1,200 0 0 0 Parks 733 398 200 1,331 0 0 0 Parks - East Park, Pickering Park Aviary 1,300 0 0 1,300 0 0 0
Economic Investment, Regeneration & Planning, Land & Property Boulevard UFE Phase 4 500 767 0 1,267 0 0 0 Buildings Optimisation Programme 1,915 0 0 1,915 0 0 0 Carbon Neutral 2030 1,120 3,850 13,250 18,220 0 0 0 City Hall Shops 122 0 0 122 0 0 0 City Plan Regeneration Projects 0 0 0 0 0 0 0 Corporate Buildings Maintenance (inc H&S) 2,749 2,000 2,000 6,749 0 0 0 Corporate Property Energy Savings Projects 415 0 0 415 0 0 0 Fruit Market Multi Storey Car Park/Humber Street Property 3,827 0 0 3,827 0 0 0 Guildhall Roof 1,003 205 0 1,208 0 0 0 Guildhall Security Gates 224 0 0 224 0 0 0 Hepworths Arcade 250 0 0 250 0 0 0 Key Buildings Energy Efficiency Programme 1,034 0 0 1,034 0 0 0 Multi Storey Car Parks (Feasibility/Refurbishment) 100 277 0 377 0 0 0 Pryme Street MSCP 250 0 0 250 0 0 0 Regeneration Green Port Hull 50 0 0 50 0 0 0 Strategic Property Purchases 4,802 0 0 4,802 0 0 0 Stockholm Road Security 150 0 0 150 0 0 0 Wilson Centre Air Conditioning 50 200 0 250 0 0 0
Housing HRA: Council House Adaptations 2,024 3,169 2,680 7,873 0 0 0 Empty Properties 1,517 426 0 1,943 0 0 0 High Rise Fire Protection Works 775 10,110 4,444 15,329 0 0 0 Housing Regeneration Schemes 289 311 325 925 0 0 0 New Build 10,365 23,166 25,840 59,371 0 0 0 Planned Capital Works 13,957 21,847 16,862 52,666 0 0 0 RTB Grant 729 1,000 500 2,229 0 0 0 Solid Wall Insulation 11,858 15,503 10,157 37,518 0 0 0
Hull Neighbourhood Renewal Programme: Housing and Technology for People with Learning Disabilities 207 0 0 207 0 0 0 Ings 340 504 0 844 0 0 0 Newington & St Andrews 168 54 0 222 0 0 0 Preston Road 386 1,158 0 1,544 0 0 0 Priority Neighbourhoods Frontages 1,779 4,720 500 6,999 0 0 0
Disabled Facilities Grant 2,200 3,654 2,200 8,054 0 0 0 Private Sector Housing 800 500 750 2,050 0 0 0
Housing COVID-19 Contingency 0 0 0 0 0 0 0
Learning, Skills & Safeguarding Children Children's Homes Reprovision 1,304 688 0 1,992 0 0 0 Children's Homes Backlog Maintenance 500 0 0 500 0 0 0 Devolved Formula Capital 214 0 0 214 0 0 0 Education for 2 Year Olds 28 0 0 28 0 0 0 Hull Training Adult Education 49 0 0 49 0 0 0 Investment in Schools (PCP/BSF) 507 0 0 507 0 0 0 Schools Maintenance and Improvement Programme 11,850 2,950 4,000 18,800 0 0 0 Special Provision Fund - SEN 348 0 0 348 0 0 0 Service Transformation Costs (Note 2) 2,000 1,000 0 3,000 0 0 0
Neighbourhood, Communities & Environment Cemeteries Priory Woods 1,618 0 0 1,618 0 0 0 City Mortuary Body Storage 179 0 0 179 0 0 0 Coroners Court Digital Readiness Project 50 0 0 50 0 0 0 Cremators 92 0 0 92 0 0 0 Green Space/Area Based Projects (S106) 750 1,683 0 2,433 0 0 0 Local Community Initiatives 654 1,795 1,000 3,449 0 0 0 Traveller Sites 800 1,853 0 2,653 0 0 0
Page 199 of 238 Page 1 Capital Programme 2020/21 - 2022/23 APPENDIX C MEMO Total 2020/21 Future Potential Budget Budget Budget to Commitment External 2020/21 2021/22 2022/23 2022/23 2023/24+ Funding Total Programme £'000 £'000 £'000 £'000 £'000 £'000 £'000
Operational Services Bridge Maintenance 500 2,000 0 2,500 0 0 0 Bridge Repairs (Feasibility) 567 0 0 567 0 0 0 Bridges - Scott Street 1,000 0 0 1,000 0 0 0 Bus Lane Cameras 109 0 0 109 0 0 0 City Coach Park 200 0 0 200 0 0 0 CCTV Camera Replacement 359 0 0 359 0 0 0 Cycling Network Improvements 500 450 0 950 0 0 0 Electric Vehicle Charging Points 69 0 0 69 0 0 0 High Street / Queen Street 1,000 250 0 1,250 0 0 0 Highways - Area Based Projects 654 0 0 654 0 0 0 Highways Estate Maintenance / Verges 500 0 0 500 0 0 0 Highways Projects 13,639 7,451 4,000 25,090 0 0 0 Highways Scheme Development 567 0 0 567 0 0 0 Highways Smart Cities 399 0 0 399 0 0 0 Park and Ride 279 0 0 279 0 0 0 Pearson Park Road 300 0 0 300 0 0 0 Priory Way 1,794 0 0 1,794 0 0 0 Real Time Bus Timetables 500 0 0 500 0 0 0 Saltbarn Reprovision 392 0 0 392 0 0 0 Street Lighting Replacement Programme 76 0 0 76 0 0 0 Streetscene (Bridges) 158 0 0 158 0 0 0 Water Pumps 157 0 0 157 0 0 0 Wawne View / Kingswood AAP 1,773 2,780 0 4,553 0 0 0
Sub Total 124,376 127,221 92,997 344,594 0 0 0
Hull World Class Visitor Destination Programme 2017 Priority Programme: Beverley Road Heritage Investment 593 1,097 450 2,140 0 0 0 Beverley Road 52a-54 Brunswick Arcade 561 0 0 561 0 0 0 City Centre Public Realm Phase 3 800 0 0 800 0 0 0 Dance Studio 100 0 0 100 0 0 0 District Heating (Feasibility) 553 17,000 0 17,553 0 0 0 Guildhall Timeball 194 0 0 194 0 0 0 Heart of the City Regeneration (Albion Street) 1,535 0 0 1,535 0 0 0 Heritage Action Zone 68 0 0 68 0 0 0 High Street Heritage Action Zone (R9092) 175 700 875 1,750 0 0 0 Humber High Street Challenge Fund (R9090) 2,884 450 0 3,334 0 0 0 Future High Street Fund (R9089) 1,273 8,947 11,071 21,291 0 20,000 20,000 New Theatre 10 0 0 10 0 0 0 Pearson Park Heritage Investment 712 0 0 712 0 0 0 River Hull+ 1,151 0 0 1,151 0 0 0 Woodford Pool Extension 115 0 0 115 0 0 0
2017 Legacy Programme: Feasibility Works 9 0 0 9 0 0 0 Investment in Museums 4,500 6,798 16,671 27,969 0 0 0 Riverside Berth / Cruise Terminal 264 638 0 902 42,700 0 42,700 Queens Gardens 1,469 2,695 0 4,164 0 0 0
Sub Total 16,966 38,325 29,067 84,358 42,700 20,000 62,700
PROGRAMME TOTAL 141,342 165,546 122,064 428,952 42,700 20,000 62,700
Note 1 Shaded Programme Line Budget indicates scheme linked to as yet unconfirmed grant awards. Note 2 Capitalisation of Revenue Transformational Schemes as per Flexible Use of Capital Receipts Strategy
Sources of Funding 2020/21 2021/22 2022/23 Total 2023/24+ Total £'000 £'000 £'000 £'000 £'000 £'000 £'000
Specific Grants (e.g. DFC, DFG) 14,049 23,580 19,496 57,125 35,000 20,000 55,000 Annual Grants (eg. Education and Transport) 23,029 7,450 7,500 37,979 0 0 0 Capital Receipts 7,962 4,030 0 11,992 0 0 0 Borrowing 53,059 50,116 23,289 126,464 7,700 0 7,700 Revenue Contributions 500 2,500 2,500 5,500 0 0 0 NNDR Uplift re Enterprise Zones 1,229 2,338 8,471 12,038 0 0 0 HRA (grant, receipts, revenue, borrowing) 41,514 75,532 60,808 177,854 0 0 0
Total 141,342 165,546 122,064 428,952 42,700 20,000 62,700
Page 200 of 238 Page 2
Report to the Finance and Value for Money Overview and Scrutiny Commission – 20 th November 2020 Cabinet – 23rd November 2020
Wards: All
TREASURY MANAGEMENT STRATEGY STATEMENT AND ANNUAL INVESTMENT STRATEGY – MID YEAR REVIEW REPORT 2020/21
Report of the Director of Finance and Transformation (S151 Officer)
This item is not exempt Therefore exempt reasons are not applicable
This is a Non-Key Decision
1. Purpose of the Report and Summary
1.1 To provide Members with an update on Treasury Management activity and performance in the first half of the financial year 2020/21, as required by the Council’s Treasury Management Policy Statement.
1.2 The scope and content of this report are in line with the requirements of the Treasury Management Code of Practice and the Prudential Code for Capital Finance, and is therefore more detailed than standard committee reports.
1.3 A Glossary of Terms as shown at Appendix 5.
2. Executive Summary
2.1 Throughout the financial year 2020/21 Treasury Management officers have operated within the requirements and guidelines of the Prudential Code as laid down in the approved Treasury Management Strategy and Policy Statement, in terms of safeguarding the Council’s investments whilst ensuring they remain accessible, liquid and generate a return as required to support the Council’s Medium Term Financial Strategy (MTFS).
2.2 Performance for the financial year up to 30 September 2020 is currently forecast in line with budgeted levels. Officers are, however, monitoring forecasts very closely and continue to liaise with the Council’s Treasury advisors, Link Asset Services – Treasury Solutions, in terms of ongoing borrowing assumptions, debt rescheduling and investment opportunities, with the view of identifying and realising revenue savings where possible against budgeted borrowing costs.
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2.3 The investment returns for 2020/21 to 30 September are forecast to achieve budgeted levels. The security of funds is being maintained in these current volatile times, and performance and operation has continued to remain within the approved Prudential Indicator limits.
2.4 The affordability prudential indicators have been reviewed and updated to reflect the latest capital expenditure forecasts and the current short term temporary borrowing strategy.
3. Recommendations
3.1 Members note the report; the investment returns achieved during 2020/21 and performance against the revised prudential indicators as shown at Appendix 1.
3.2 Members confirm that they remain content with the approved investment strategy as shown at Appendices 2 to 4.
3.3 Members note the revised Prudential Indicators as shown in Appendix 1 to reflect the latest capital expenditure and financing forecasts.
4. Reasons for Recommendations
4.1 As required by the Treasury Management Strategy Statement 2020/21 approved by Council in February 2020, delegation for considering the Mid-Year Review Report is to the Cabinet Executive Committee.
5. Impact on other Executive Committees (including Area Committees)
5.1 The report is an information only report with no impact on other Executive Committees.
6. Background
6.1 The Council operates a balanced budget, which broadly means cash raised during the year will meet its cash expenditure. Part of the treasury management operations ensure this cash flow is adequately planned, with surplus monies being invested in low risk counterparties, providing adequate liquidity initially before considering optimising investment return.
6.2 The second main function of the treasury management service is the funding of the Council’s capital plans. These capital plans provide a guide to the borrowing need of the Council, essentially the longer term cash flow planning to ensure the Council can meet its capital spending operations. This management of longer term cash may involve arranging long or short term loans, or using longer term cash flow surpluses, and on occasion any debt previously drawn may be restructured to meet Council risk or cost objectives.
6.3 Accordingly, treasury management is defined as:
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“The management of the local authority’s investments and cash flows, its banking, money market and capital market transactions; the effective control of the risks associated with those activities; and the pursuit of optimum performance consistent with those risks.”
7. Issues for Consideration
7.1 Reviewing the treasury activities of the Council for 2020/21 to date as compared to the Treasury Management Strategy approved by Council in February 2020, and with regards to the current treasury and economic environment.
8. Introduction
8.1 This report has been written in accordance with the requirements of the Chartered Institute of Public Finance and Accountancy’s (CIPFA) Code of Practice on Treasury Management (revised 2017).
8.2 The primary requirements of the Code are as follows:
• Creation and maintenance of a Treasury Management Policy Statement which sets out the policies and objectives of the Council’s treasury management activities. • Creation and maintenance of Treasury Management Practices which set out the manner in which the Council will seek to achieve those policies and objectives. • Receipt by the Council of an annual Treasury Management Strategy Statement (including the Annual Investment Strategy and Minimum Revenue Provision Policy) for the year ahead, a Mid-Year Review Report (this report) and an Annual Report (stewardship report) covering activities during the previous year. • Delegation by the Council of responsibilities for implementing and monitoring treasury management policies and practices and for the execution and administration of treasury management decisions. • Delegation by the Council of the role of scrutiny of treasury management strategy and policies to a specified named body which in this Council is the Finance and Value for Money Overview and Scrutiny Commission.
8.3 The mid-year report has been prepared in compliance with CIPFA’s Code of Practice on Treasury Management (2017), and covers the following:
• An economic update for the first part of the 2020/21 financial year; • A review of the Treasury Management Strategy Statement and Annual Investment Strategy; • The Council’s capital expenditure (prudential indicators); • A review of the Council’s investment portfolio for 2020/21; • A review of the Council’s borrowing strategy for 2020/21; • A review of any debt rescheduling undertaken during 2020/21; 3 of 37 Page 203 of 238
• A review of compliance with Treasury and Prudential Limits for 2020/21.
9. Economic Update
9.1 The following paragraphs are designed to impart a degree of knowledge around factors impacting on the treasury management function at the Council. This environment is constantly changing, no more so than in recent years. Any significant issues that arise between the report being written and the actual committee date will be reported verbally.
9.2 UK. The Bank of England’s Monetary Policy Committee (MPC) kept Bank Rate unchanged on 6 th August. It also kept unchanged the level of quantitative easing at £745bn. Its forecasts were optimistic in terms of three areas; • The fall in GDP in the first half of 2020 was revised from 28% to 23% (subsequently revised to -21.8%). This is still one of the largest falls in output of any developed nation. However, it is only to be expected as the UK economy is heavily skewed towards consumer-facing services – an area which was particularly vulnerable to being damaged by lockdown. • The peak in the unemployment rate was revised down from 9% in Q2 to 7½% by Q4 2020. • It forecast that there would be excess demand in the economy by Q3 2022 causing CPI inflation to rise above the 2% target in Q3 2022, (based on market interest rate expectations for a further loosening in policy). Nevertheless, even if the Bank were to leave policy unchanged, inflation was still projected to be above 2% in 2023
9.3 The MPC also squashed any idea of using negative interest rates, at least in the next six months or so. It suggested that while negative rates can work in some circumstances, it would be “less effective as a tool to stimulate the economy” at this time when banks are worried about future loan losses. It also has “other instruments available”, including QE and the use of forward guidance. The MPC expected the £300bn of quantitative easing purchases announced between its March and June meetings to continue until the “turn of the year”. This implies that the pace of purchases will slow further to about £4bn a week, down from £14bn a week at the height of the crisis and £7bn more recently.
9.4 In conclusion, this would indicate that the Bank could now just sit on its hands as the economy was recovering better than expected. However, the MPC acknowledged that the “medium-term projections were a less informative guide than usual” and the minutes had multiple references to downside risks, which were judged to persist both in the short and medium term. One has only to look at the way in which second waves of the virus are now impacting many countries including Britain, to see the dangers. However, rather than a national lockdown, as in March, any spikes in virus infections are now likely to be dealt with by localised measures and this should limit the amount of economic damage caused. In addition, Brexit uncertainties ahead of the year-end deadline are likely to be a drag on recovery. The wind down of the initial 4 of 37 Page 204 of 238
generous furlough scheme through to the end of October is another development that could cause the Bank to review the need for more support for the economy later in the year. Admittedly, the Chancellor announced in late September a second six month package from 1st November of government support for jobs whereby it will pay up to 22% of the costs of retaining an employee working a minimum of one third of their normal hours. There was further help for the self-employed, freelancers and the hospitality industry. However, this is a much less generous scheme than the furlough package and will inevitably mean there will be further job losses from the 11% of the workforce still on furlough in mid September.
9.5 Overall, the pace of recovery is not expected to be in the form of a rapid V shape, but a more elongated and prolonged one after a sharp recovery in June through to August which left the economy 11.7% smaller than in February. The last three months of 2020 are now likely to show no growth as consumers will probably remain cautious in spending and uncertainty over the outcome of the UK/EU trade negotiations concluding at the end of the year will also be a headwind. If the Bank felt it did need to provide further support to recovery, then it is likely that the tool of choice would be more QE. There will be some painful longer term adjustments as e.g. office space and travel by planes, trains and buses may not recover to their previous level of use for several years, or possibly ever. There is also likely to be a reversal of globalisation as this crisis has shown up how vulnerable long-distance supply chains are. On the other hand, digital services is one area that has already seen huge growth.
9.6 One key addition to the Bank’s forward guidance was a new phrase in the policy statement, namely that “it does not intend to tighten monetary policy until there is clear evidence that significant progress is being made in eliminating spare capacity and achieving the 2% target sustainably”. That seems designed to say, in effect, that even if inflation rises to 2% in a couple of years’ time, do not expect any action from the MPC to raise Bank Rate – until they can clearly see that level of inflation is going to be persistently above target if it takes no action to raise Bank Rate The Financial Policy Committee (FPC) report on 6th August revised down their expected credit losses for the banking sector to “somewhat less than £80bn”. It stated that in its assessment “banks have buffers of capital more than sufficient to absorb the losses that are likely to arise under the MPC’s central projection”. The FPC stated that for real stress in the sector, the economic output would need to be twice as bad as the MPC’s projection, with unemployment rising to above 15%.
9.7 EU. The economy was recovering well towards the end of Q2 after a sharp drop in GDP, (e.g. France 18.9%, Italy 17.6%). However, the second wave of the coronavirus affecting some countries could cause a significant slowdown in the pace of recovery, especially in countries more dependent on tourism. The fiscal support package, eventually agreed by the EU after prolonged disagreement between various countries, is unlikely to provide significant support and quickly enough to make an appreciable difference in weaker countries. The ECB has been struggling to get inflation up to its 2% target and it is therefore expected that it will have to provide more monetary policy
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support through more quantitative easing purchases of bonds in the absence of sufficient fiscal support.
9.8 USA. The incoming sets of data during the first week of August were almost universally stronger than expected. With the number of new daily coronavirus infections beginning to abate, recovery from its contraction this year of 10.2% should continue over the coming months and employment growth should also pick up again. However, growth will be dampened by continuing outbreaks of the virus in some states leading to fresh localised restrictions. At its end of August meeting, the Fed tweaked its inflation target from 2% to maintaining an average of 2% over an unspecified time period i.e. following periods when inflation has been running persistently below 2%, appropriate monetary policy will likely aim to achieve inflation moderately above 2% for some time.
9.9 This change is aimed to provide more stimulus for economic growth and higher levels of employment and to avoid the danger of getting caught in a deflationary “trap” like Japan. It is to be noted that inflation has actually been under-shooting the 2% target significantly for most of the last decade so financial markets took note that higher levels of inflation are likely to be in the pipeline; long term bond yields duly rose after the meeting. The Fed also called on Congress to end its political disagreement over providing more support for the unemployed as there is a limit to what monetary policy can do compared to more directed central government fiscal policy. The FOMC’s updated economic and rate projections in mid-September showed that officials expect to leave the fed funds rate at near-zero until at least end-2023 and probably for another year or two beyond that. There is now some expectation that where the Fed has led in changing its inflation target, other major central banks will follow. The increase in tension over the last year between the US and China is likely to lead to a lack of momentum in progressing the initial positive moves to agree a phase one trade deal.
9.10 China. After a concerted effort to get on top of the coronavirus outbreak in Q1, economic recovery was strong in Q2 and has enabled it to recover all of the contraction in Q1. However, this was achieved by major central government funding of yet more infrastructure spending. After years of growth having been focused on this same area, any further spending in this area is likely to lead to increasingly weaker economic returns. This could, therefore, lead to a further misallocation of resources which will weigh on growth in future years.
9.11 Japan. There are some concerns that a second wave of the coronavirus is gaining momentum and could dampen economic recovery from its contraction of 8.5% in GDP. It has been struggling to get out of a deflation trap for many years and to stimulate consistent significant GDP growth and to get inflation up to its target of 2%, despite huge monetary and fiscal stimulus. It is also making little progress on fundamental reform of the economy. The resignation of Prime Minister Abe is not expected to result in any significant change in economic policy.
9.12 World growth. Latin America and India are currently hotspots for virus infections. World growth will be in recession this year. Inflation is unlikely to be a problem for some years due to the creation of excess production capacity and depressed demand caused by the coronavirus crisis.
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Interest rate forecasts
9.13 The Council’s treasury advisors, Link Asset Services, has provided the following forecast.
Additional notes by Link on this forecast table: - • Please note that we have made a slight change to our interest rate forecasts table above for forecasts for 3, 6 and 12 months. Traditionally, we have used LIBID forecasts, with the rate calculated using market convention of 1/8th (0.125%) taken off the LIBOR figure. Given that all LIBOR rates up to 6 months are currently running below 0.1%, using that convention would give negative figures as forecasts for those periods. However, the liquidity premium that is still in evidence at the short end of the curve, means that the rates actually being achieved by local authority investors are still modestly in positive territory. While there are differences between counterparty offer rates, our analysis would suggest that an average rate of around 0.05% is achievable for 3 months, 0.1% for 6 months and 0.15% for 12 months.
9.14 The coronavirus outbreak has done huge economic damage to the UK and economies around the world. After the Bank of England took emergency action in March to cut Bank Rate to first 0.25%, and then to 0.10%, it left Bank Rate unchanged at its meeting on 6th August (and the subsequent September meeting), although some forecasters had suggested that a cut into negative territory could happen. However, the Governor of the Bank of England has made it clear that he currently thinks that such a move would do more damage than good and that more quantitative easing is the favoured tool if further action becomes necessary. As shown in the forecast table above, no increase in Bank Rate is expected within the forecast horizon ending on 31st March 2023 as economic recovery is expected to be only gradual and, therefore, prolonged.
9.15 The overall balance of risks to economic growth in the UK is probably relatively even, but is subject to major uncertainty due to the coronavirus. There is relatively little UK domestic risk of increases or decreases in Bank Rate and significant changes in shorter term PWLB rates. The Bank of England has effectively ruled out the use of negative interest rates in the near term and increases in Bank Rate are likely to be some years away given the underlying economic expectations. However, it is always possible that safe haven flows, due to unexpected domestic developments and those in other major economies, could impact gilt yields, (and so PWLB rates), in the UK.
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9.16 Downside risks to current forecasts for UK gilt yields and PWLB rates currently include: • UK - second nationwide wave of virus infections requiring a national lockdown • UK / EU trade negotiations – if it were to cause significant economic disruption and a fresh major downturn in the rate of growth. • UK - Bank of England takes action too quickly, or too far, over the next three years to raise Bank Rate and causes UK economic growth, and increases in inflation, to be weaker than we currently anticipate. • A resurgence of the Eurozone sovereign debt crisis. The ECB has taken monetary policy action to support the bonds of EU states, with the positive impact most likely for “weaker” countries. In addition, the EU recently agreed a €750bn fiscal support package. These actions will help shield weaker economic regions for the next year or so. However, in the case of Italy, the cost of the virus crisis has added to its already huge debt mountain and its slow economic growth will leave it vulnerable to markets returning to taking the view that its level of debt is unsupportable. There remains a sharp divide between northern EU countries favouring low debt to GDP and annual balanced budgets and southern countries who want to see jointly issued Eurobonds to finance economic recovery. This divide could undermine the unity of the EU in time to come. • Weak capitalisation of some European banks, which could be undermined further depending on extent of credit losses resultant of the pandemic. • German minority government & general election in 2021. In the German general election of September 2017, Angela Merkel’s CDU party was left in a vulnerable minority position dependent on the fractious support of the SPD party, as a result of the rise in popularity of the anti-immigration AfD party. The CDU has done badly in subsequent state elections but the SPD has done particularly badly. Angela Merkel has stepped down from being the CDU party leader but she intends to remain as Chancellor until the general election in 2021. This then leaves a major question mark over who will be the major guiding hand and driver of EU unity when she steps down. • Other minority EU governments. Austria, Sweden, Spain, Portugal, Netherlands, Ireland and Belgium also have vulnerable minority governments dependent on coalitions which could prove fragile. • Austria, the Czech Republic, Poland and Hungary now form a strongly anti- immigration bloc within the EU. There has also been a rise in anti- immigration sentiment in Germany and France. • Geopolitical risks, for example in China, Iran or North Korea, but also in Europe and other Middle Eastern countries, which could lead to increasing safe haven flows. • US – the Presidential election in 2020: this could have repercussions for the US economy and SINO-US trade relations.
9.17 The potential for upside risks to current forecasts for UK gilt yields and PWLB rates include: - • UK - stronger than currently expected recovery in UK economy. • Post-Brexit – if an agreement was reached that removed the majority of threats of economic disruption between the EU and the UK. 8 of 37 Page 208 of 238
• The Bank of England is too slow in its pace and strength of increases in Bank Rate and, therefore, allows inflationary pressures to build up too strongly within the UK economy, which then necessitates a later rapid series of increases in Bank Rate faster than we currently expect.
10. Treasury Management Strategy Statement and Annual Investment Strategy Update
10.1 The Treasury Management Strategy Statement (TMSS) for 2020/21 was approved by Council on 27th February 2020.
10.2 There are no proposed policy changes to the TMSS, the details in this report update the position in the light of the updated economic position and budgetary changes already approved.
11. The Council’s Capital Position (Prudential Indicators)
11.1 This part of the report is structured to update:
• The Council’s capital expenditure plans; • How these plans are being financed; • The impact of the changes in the capital expenditure plans on the prudential indicators and the underlying need to borrow; and • Compliance with the limits in place for borrowing activity .
Prudential Indicators for Capital Expenditure
11.2 In line with the requirements of the Prudential Code, Council on 27th February 2020 approved a range of Prudential Indicators for 2020/21 and future years, aimed at ensuring affordability of capital plans and effective treasury management.
11.3 The table below shows the revised estimates for capital expenditure and the changes since the capital programme was agreed at the Council on 27th February 2020.
Capital Expenditure by 2020 /21 Current 20 20 /2 1 Programme Theme Original Spend Revised Estimate (30/9/20) Estimate £m £m £m 9 of 37 Page 209 of 238
Adult Services and Public Health 0.000 0.005 0.041 Corporate Services 7.554 2.892 5.740 Culture, Leisure and Tourism 4.800 0.901 6.205 Economic Investment, Regeneration and Planning, Land 9.771 4.715 18.561 and Property Housing 8.338 0.979 5.880 Learning, Skills and Safeguarding 13.112 4.956 16.800 Children Neighbourhood, Communities and 3.250 0.368 4.239 Environment Operational Services 30.781 3.592 25.396 Hull World Class Visitor Destination 18.691 3.027 16.966 Non -HRA 96.297 21.435 99.828 HRA 53.273 8.676 41.514 Total 149.570 30.1 11 141.342
Changes to the Financing of the Capital Programme
11.4 The table below draws together the main strategy elements of the capital expenditure plans (above), and the expected financing arrangements of this capital expenditure. The borrowing element of the table increases the underlying indebtedness of the Council by way of the Capital Financing Requirement (CFR), although this will be reduced in part by revenue charges for the repayment of debt (the Minimum Revenue Provision). This direct borrowing need may also be supplemented by maturing debt and other treasury requirements.
Capital Expenditure 2020 /2 1 Current 20 20 /2 1 Original Position Revised Estimate (30/09/20) Estimate £m £m £m Total spend 149.570 30.111 141.342 Financed by: Capital receipts 13.773 12.773 Capital grants 51.768 41.201 Capital reserves 26.844 26.844 Revenue 3.500 1.729 Total financing 95.885 82.547 Borrowing need 53.685 58 .795
Changes to the Prudential Indicators for the Capital Financing Requirement (CFR), External Debt and the Operational Boundary
11.5 The table below shows the CFR, which is the underlying external need to incur borrowing for a capital purpose. It also shows the expected debt position over the period. This is termed the Operational Boundary.
2020 /2 1 2020 /2 1 Original Revised Estimate Estimate £m £m Prudential Indicator – Capital Financing Requirement CFR – non housing 639.011 673.684 10 of 37 Page 210 of 238
CFR – housing 237.027 215.763 Total CFR 876.038 889.447 Net movement in CFR 27.828 32.805
Operational Boundary Borrowing 647.897 701.370 Change in Borrowing 33.068 -36.026 10% Net Budget Requirement 31.162 31.191 Other long term liabilities* 165.882 170.259
Total 878.009 866.794
* - On balance sheet PFI schemes and finance leases.
Limits to Borrowing Activity
11.6 The first key control over the treasury activity is a prudential indicator to ensure that over the medium term, net borrowing (borrowings less investments) will only be for a capital purpose. Gross external borrowing should not, except in the short term, exceed the total of CFR in the preceding year plus the estimates of any additional CFR for 2020/21 and next two financial years. This allows some flexibility for limited early borrowing for future years. The Council has approved a policy for borrowing in advance of need which will be adhered to if this proves prudent.
20 20 /2 1 Current 20 20 /2 1 Original Position Revised Estimate £m Estimate £m £m Gross borrowing 680.965 602.883 665.344 Plus other long term liabilities* 165.882 170.259 170.259 Gross borrowing 846.847 773.142 835.603 CFR (year end position) 876.038 889.447 889.447 * - On balance sheet PFI schemes and finance leases.
11.7 The Director of Finance and Transformation reports that no difficulties are envisaged for the current or future years in complying with this prudential indicator.
11.8 A further prudential indicator controls the overall level of borrowing. This is the Authorised Limit which represents the limit beyond which borrowing is prohibited, and needs to be set and revised by Members. It reflects the level of borrowing which, while not desired, could be afforded in the short term, but is not sustainable in the longer term. It is the expected maximum borrowing need with some headroom for unexpected movements. This is the statutory limit determined under section 3 (1) of the Local Government Act 2003.
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Authorised limit for external debt 20 20 /2 1 20 20 /2 1 Original Revised
Indicator Indicator £m £m Borrowing 680.965 665.344 Plus other long term liabilities* 165.882 170.259 10% Net Budget Requirement 31.162 31.191 Plus possible additional borrowing 65.541 53.974 (grants/capital receipts) Total 943.55 0 920.768
* - On balance sheet PFI schemes and finance leases.
12. Investment Portfolio 2020/21
12.1 In accordance with the Code, it is the Council’s priority to ensure security of capital and liquidity, and to obtain an appropriate level of return which is consistent with the Council’s risk appetite. As set out in Section 9, it is now impossible to earn the level of interest rates commonly seen in previous decades as all investment rates are barely above zero now that Bank Rate is at 0.10%, while some entities, including more recently the Debt Management Account Deposit Facility (DMADF), are offering negative rates of return in some shorter time periods. Given this risk environment and the fact that increases in Bank Rate are unlikely to occur before the end of the current forecast horizon of 31st March 2023, investment returns are expected to remain low.
12.2 The Council held £44.699 million of investments as at 30 September 2020 (£131.483 million at 31 March 2020) and the investment portfolio yield for the first six months of the year is 0.34% against a benchmark of -0.06%.
12.3 A full list of investments held as at 30 th September 2020 is shown in Appendix 4.
12.4 The Director of Finance and Transformation confirms that the approved limits within the Annual Investment Strategy were not breached during the first six months of 2020/21.
12.5 The Council’s budgeted investment return for 2020/21 (including dividends) is £0.550 million. Based on performance and due to the current climate it may be difficult to achieve this level.
Investment Counterparty Criteria
12.6 The current investment counterparty criteria selection approved in the TMSS is meeting the requirement of the treasury management function.
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13. Borrowing
13.1 The Council’s revised capital financing requirement (CFR) for 2020/21 is £889 million. The CFR denotes the Council’s underlying need to borrow for capital purposes. If the CFR is positive the Council may borrow from the PWLB or the market (external borrowing) or from internal balances on a temporary basis (internal borrowing). The balance of external and internal borrowing is generally driven by market conditions. Table 11.6 shows the Council has forecast gross borrowings of £836 million and has utilised cash flow funds in lieu of borrowing. This is a prudent and cost effective approach in the current economic climate but will require ongoing monitoring in the event that upside risk to gilt yields prevails.
13.2 Due to the overall financial positon and the underlying need to borrow for capital purposes (the CFR), new external borrowing of £220 million has been undertaken from the market on a temporary basis for periods of between 3 and 9 months. However, due to the increase in PWLB margins over gilt yields in October 2019, and the subsequent consultation on these margins by HM Treasury - which ended on 31st July 2020 - the Authority has refrained from undertaking new long-term PWLB borrowing for the present and has met its requirements for additional borrowing by using short-term borrowing until such time as new PWLB margins are finally determined. In addition, the effect of coronavirus on the capital programme objectives are being assessed. Therefore, our borrowing strategy will be reviewed and then revised in order to achieve optimum value and risk exposure in the long-term.
13.3 During the first 6 months of the year a total of £312 million of debt has been repaid, £251 million of which was on a temporary basis and related to loans outstanding at the end of 2019/20, used to finance temporary cash shortages at that time.
13.4 The graph and table below show the movement in PWLB certainty rates for the first six months of the year to date.
PWLB certainty rates 1 April 2020 to 30 September 2020
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13.5 PWLB rates varied within a relatively narrow range between April and July but the longer end of the curve rose during August. This increase came in two periods; the first in the second week of the month was on the back of hopes for fresh US stimulus. This saw investors switch monies out of government bonds and into equities. The second shift higher at the longer end of the curve came in the latter stages of the month as investors reacted to the announcement of the tweak to the Fed’s inflation target. Despite moves further out in the yield curve, the short end remained anchored on the basis of no fundamental change to the interest rate outlook.
13.6 The 50-year PWLB target rate for new long-term borrowing was unchanged at 2.30%.
13.7 It is anticipated that further temporary borrowing will be undertaken during this financial year.
14. Debt Rescheduling
14.1 Debt rescheduling opportunities have been very limited in the current economic climate and following the various increases in the margins added to gilt yields which have impacted PWLB new borrowing rates since October 2010. No debt rescheduling has therefore been undertaken to date in the current financial year.
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14.2 Any potential debt rescheduling opportunities are reviewed with the Council’s external advisors.
15. Options and Risk Assessment
15.1 Although the content and criteria stated in the Treasury Management Strategy are statutory requirements, there are some options available to the Council in how this is managed, in terms of the following:
• Investment Options – alternative investment products, counterparties, limits and durations. • Prudential Indicators – alternative limits for certain indicators, i.e. debt maturity profile, interest rate exposure. • Minimum Revenue Provision – alternative options for the revenue charge.
15.2 The options proposed are based on the Council investing surplus monies with low risk counterparties in line with the Council’s low risk appetite. This provides the Council with adequate liquidity and security of funds before considering investment return.
16. Risk Assessment
16.1 The main risks surrounding the Council’s Treasury operations, mitigated through the Treasury Management Strategy and Investment Policy, are as follows:
• Prudential Indicator limits are breached – set and approved locally and regularly monitored as part of ongoing Treasury Management activity. • Investments lost due to the inability of a Bank or Building Society to repay the loan – key criteria as part of the Creditworthiness Policy which ensures investments are made with only high credit quality counterparties for set durations. • Too cautious an approach to investments could result in lower investment income being achieved – Investment Policy provides flexibility to use other non-specific investment products if it is considered prudent.
17. Consultation
17.1 This report is an information only report with no further consultation required.
18. Comments of the Town Clerk (Monitoring Officer)
18.1 The Director of Finance has a duty to report on the Council’s financial position under the Local Government Finance Act 1992.The report is for information and raises no immediate legal issues. The Local Government Act 2003 sets out the statutory framework for local authority finance, including power to borrow and invest, credit arrangements and how capital receipts may be used. Ss. 15 and 21 of the Act require the Council to follow such guidance and codes of practice in relation to accounting and other financial functions as may be published from time to time by the Secretary of State. The matters set out in 15 of 37 Page 215 of 238
the report would appear to comply with the CIPFA Code of Practice on Treasury Management adopted by the Council.
19. Comments of the Section 151 Officer
19.1 The Director of Finance and Transformation (s151 Officer) is the author of this report.
20. Comments of the HR City Manager and Compliance with the Equality Duty
20.1 There are no staffing or equality issues arising for the Council.
21. Comments of Overview and Scrutiny
21.1 This report is due to be considered by the Finance and Value for Money Overview and Scrutiny Commission on the 20 th of November 2020. Any comments or recommendations agreed by the Commission will be submitted to Cabinet for consideration alongside the report. (Sc5903 – AS)
22. Comments of the Portfolio Holder for Strategic Finance
22.1 I fully support this report but would add that I’m very heartened by the contents of this report, noting that borrowing from money markets (PWLB) has remained below the statutory borrowing limits so NOT maxing out the councils credit card. Although there has been no rescheduling of debt this year, it’s vital that we keep looking for opportunities to reduce the annual pressures associated with it.
David Bell Director of Finance and Transformation (S151 Officer)
Officer Contact: David Bell/Mike Armstrong Telephone No: (61) 3084 / (61) 3282
Officer Interests: None
Background documents: Borrowing and investment records CIPFA Code of Practice on Treasury Management Treasury Management Policy Statement (Council 27th February 2020)
Treasury Management – Mid-Year Review Report 2020/21
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Implications Matrix
I have informed and sought advice from HR, Yes Legal, Finance, Overview and Scrutiny and the Climate Change Advisor and any other key stakeholders i.e. Portfolio Holder, relevant Ward Members etc prior to submitting this report for official comments I have considered whether this report requests a Yes decision that is outside the Budget and Policy Framework approved by Council Value for money considerations have been Yes accounted for within the report
The report is approved by the relevant City Yes Manager I have included any procurement/commercial n/a issues/implications within the report
I have considered the potential media interest in Yes this report and liaised with the Media Team to ensure that they are briefed to respond to media interest. I have included any equalities and diversity n/a implications within the report and where necessary I have completed an Equalities Impact Assessment and the outcomes are included within the report Any Health and Safety implications are included n/a within the report Any human rights implications are included within n/a the report I have included any community safety n/a implications and paid regard to Section 17 of the Crime and Disorder Act within the report I have liaised with the Climate Change Advisor n/a and any environmental and climate change issues/sustainability implications are included within the report I have included information about how this report n/a contributes to the City Plan/ Area priorities within the report
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Prudential Indicators 2020/21 Appendix 1 As at 30th September 2020
1.1 Affordability of Capital Plans (a) Indicator 1 – Capital Expenditure “The local authority will make reasonable estimates of the total capital expenditure that it plans to incur during the forthcoming financial year and at least the following two financial years. These prudential indicators will be referred to as estimates of capital expenditure and shall be expressed in the following manner: Estimate of total capital expenditure to be incurred in years 1, 2 and 3 (and 4 etc if applicable)” (paragraph 47 of the code)
This details the Council’s capital spending plans over the next 3 years and reports on the outturn from the previous financial year. These estimates are reporting decisions agreed previously in the Capital Programme report; there is no subjectivity to this indicator. These estimates are also in line with the Capital Programme Monitoring report considered by Cabinet on 23rd November 2020.
201 9/20 20 20 /21 202 1/22 202 2/2 3 £’000 £’000 £’000 £’000 Actual Estimate Estimate Estimate General Fund 88.039 99.828 90.014 61.256 HRA 26.108 41.514 75.532 60.808 Total 114.147 141.342 165.546 122.064
(b) Indicator 2 – Ratio of Financing Costs to Net Revenue Stream “The local authority will estimate for the forthcoming financial year and the flowing two financial years the ratio of financing costs to net revenue stream. This prudential indicator shall be referred to as estimates of the ratio of financing costs to net revenue stream and shall be expressed in the following manner: Estimates of financing costs / estimate of net revenue stream * 100 % For years 1, 2 and 3 “(paragraph 38 of the code)
Shows the revenue costs (the capital financing costs less investment income earned) associated with funding previous and future capital spending, as a percentage of total revenue spending. Again, as in the previous indicator the estimates that populate this table have been agreed by Committee, either through the Revenue Budget setting report or in the Medium Term Financial Strategy (MTFS) and are not subjective.
2019/20 2020/21 2021/22 2022/23 % % % % Actual Estimate Estimate Estimate General Fund 3.0 2.7 4.5 4.6 HRA 23.9 56.6 48.5 44.8
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(c) Indicator 3 – Capital Financing Requirement “The local authority will make reasonable estimates of the total of the capital financing requirement at the end of the forthcoming financial year and the following two years. These prudential indicators will be referred to as the estimates of capital financing requirement and shall be expressed as follows: Estimate of capital financing requirements as at the end of years 1, 2 and 3” (paragraph 50 of the code)
The Capital Financing Requirement (CFR) measures the Council’s underlying need to borrow for a capital purpose i.e. that element of previous and proposed capital spending which has been / will be funded from borrowing. In order to ensure borrowing is maintained within sustainable limits, the Prudential Code requires that net external borrowing does not exceed the total of the capital financing requirement in the preceding year plus the estimates of any additional capital financing requirement for the current and next two financial years. The Director of Finance and Transformation can confirm that this requirement will be met.
2020/21 2021/22 2022/23 £’000 £’000 £’000 Estimate Estimate Estimate General Fund 673.684 713.740 725.955 HRA 215.763 243.579 262.195 Total 889.447 957.319 988.150 Borrowing 835.603 912.509 953.355
At the end of 2020/21 long term borrowing is forecast to be £54 million below the capital financing requirement which is acceptable.
(d) Indicator 4 – Incremental impact of Capital Investment Decisions on Council Tax and Housing Rents “The local authority will (i) forecast the total budgetary requirements for the authority based on no changes to the capital programme (ii) forecast the total budgetary requirements for the authority with the changes proposed to the capital programme included in the calculation (iii) take the difference between (i) and (ii) and calculate the addition or reduction to the council tax that would result. This calculation shall be undertaken for the forthcoming year and the following two financial years or longer timeframe if required to capture the full effect of capital investment decision. This prudential indicator will be referred to as estimates of the impact of the new capital investment decisions on the Council Tax and shall be expressed in the following manner: £xx.xx (Paragraph 39 of the code)
The rules are the same for the Housing revenue account but show the effect on weekly rents.
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The indicator seeks to demonstrate the additional costs, to be funded from the Council Tax and Housing Rents, of the Council’s capital spending plans. These estimates are in line with the Capital Programme Monitoring report considered by Cabinet on 23rd November 2020.
2020/21 2021/22 2022/23 £ £ £ Estimate Estimate Estimate General Fund 3.91 11.58 17.10 (Council Tax) HRA (average 0.19 1.34 2.31 weekly rent)
1.2 Treasury Management (a) Indicator 5 – Authorised Limit for External Debt “The local authority will set for the forthcoming financial year and the following two financial years an authorised limit for its total external debt, gross of investments, separately identifying borrowing from other long term liabilities. This prudential indicator will be referred to as the authorised limit and shall be expressed in the following manner: Authorised limit for external debt = authorised limit for borrowing + authorised limit for other long term liabilities For years 1, 2 and 3.” (Paragraph 54 of the code)
With regard to external debt the Council is required to identify limits consistent with the Revenue Budget and Capital Programme. The Authorised Limit is based on a prudent, but not worse case scenario, with additional headroom to allow for unusual cash movements. The authorised limit will be the statutory limit determined under Section 3 (1) of the Local Government Act 2003.
The indicator is calculated by taking the results from indicator six, Operational boundary for external debt, plus the amount of capital spend forecast to be financed from grants and capital receipts. This would cover the unlikely event of contractually committed spend not being financed from grants or capital receipts as planned and having to be financed from borrowing.
2020/21 2021/22 2022/23 £’000 £’000 £’000 Operational debt 866.794 944.757 986.371 indicator (indicator 6) Possible additional 53.974 42.190 31.843 capital spend financed from borrowing (grants/capital receipts not received) Total Amount 920.768 986.947 1018.214 Rounded for indicator 921.000 987.000 1018.000
Actual external debt stands at £773 million as at September 2020, which is well within the Authorised Limit for 2020/21. 20 of 37 Page 220 of 238
(b) Indicator 6 – Operational Boundary for External Debt “The local authority will also set for the forthcoming financial year and the following two financial years an operational boundary for its total external debt, gross of investments, separately identifying borrowing from other long term liabilities. This prudential indicator will be referred to as the operational boundary and shall be expressed in the following manner: Operational boundary for external debt = operational boundary for borrowing + operational boundary for other long term liabilities. For years 1, 2 and 3.” (Paragraph 55 of the code)
The Operational Boundary for external debt is based on the same estimates which underpin the Authorised Limit but does not include the additional headroom included within the Authorised Limit. The Operational Boundary provides an important tool for in year monitoring.
The code goes on to say “It will probably not be significant if the operational boundary is breached temporarily on occasions due to variations in cashflow. However, a sustained or regular trend above the operational boundary would be significant and should lead to further investigation and action as appropriate.”
The Operational Limit for external debt has been calculated as the current amount of debt, plus additional borrowing, plus ten per cent of the year’s net revenue budget for cash flow purposes in the event of expenditure being higher than income at points during the year.
202 0/21 2021/22 2022/23 £’000 £’000 £’000 Estimate Estimate Estimate Debt 701.370 665.344 743.276 Other Liabilities 170.259 169.233 168.174 10% Net budget requirement 31.191 32.248 33.016 Additional Borrowing -36.026 77.932 41.905
Calculated Operational Limit 866.794 944.757 986.371 Rounded for indicator 867.000 945.000 986.000
Actual external debt stands at £773 million as at September 2020, which is well within the Authorised Limit for 2020/21.
(c) Indicator 7 – Fixed and Variable Rate Exposure “The local authority will set for the forthcoming financial year the following two financial year’s upper limits to its exposure to the effects of changes in interest rates. These prudential indicators will relate to both fixed interest rates and variable interest rates and be referred to respectively as the upper limits on fixed interest rates and variable interest rate exposures.
The upper limits on fixed interest rates and variable interest rates exposures may be expressed either as absolute amounts or as percentages. They may
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be related either to the authority’s net interest on, or to its net principal sum outstanding on, its borrowings / investments.” (Paragraph 67 and 68)
The indicator seeks to ensure that the Council limits its exposure to the risk of interest rate changes and the consequent impact on the investment income and interest payments on loans, by restricting the proportion of variable rate borrowing.
20 20 /21 20 20/21 202 1/22 2022 /23 Estimate Actual to Estimate Estimate Sept % % % % Fixed Rate – Upper Limit 90 90 90 89.22 Fixed Rate – Lower Limit 25 25 25 Variable Rate – Upper Limit 75 75 75 10.78 Variable Rate – Lower Limit 10 10 10
(d) Indicator 8 – Upper and Lower Limits for the maturity structure of borrowings “The local authority will set for the forthcoming financial year both upper and lower limits with respect to the maturity structure of its borrowings. The prudential indicators will be referred to as the upper and lower limits respectively for the maturity structure of borrowing and shall be calculated as follows: Amount of projected borrowing maturing in each period expressed as a percentage of total projected borrowing. Where the periods in question are • Under 12 months • 12 months and within 24 months • 24 months and within 5 years • 5 years and within 10 years • 10 years and above” (paragraph 74 of the code) The indicator also seeks to ensure the Council controls its exposure to the risk of interest rate changes by limiting the proportion of debt maturing in any single period. Ordinarily debt is replaced on maturity and therefore it is important that the Council is not forced to replace a large proportion of loans at a time of relatively high interest rates.
Actual as at Upper Limit Lower Limit 30/09/20 % % % Under 12 Months 38.01 35 0 12 months and within 24 5.68 30 0 months 24 months and within 5 11.09 50 0 years 5 years and within 10 10.22 75 0 years 10 years and above 35.00 90 0
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(e) Indicator 9 – Upper limit for maturity structure of investments “Where a local authority invests, or plans to invest, for periods longer than 364 days, the local authority will set an upper limit for each forward financial year period for the maturing of such investments. These prudential indicators will be referred to as prudential limits for principal sums invested for periods longer than 364 days and shall be calculated as follows: Total principal invested to final maturities beyond the period end.” (paragraph 77 of the code)
Under the Prudential Regime Councils are free to invest for periods of greater than 1 year. This indicator sets restrictions on the proportion of investments committed for longer periods in order to limit the risks associated with being unable to meet unexpected cash flows and/or being able to take advantage of future increases in interest rates.
Actual as at Upper Limit 30/09/19 % % Under 12 Months 100 100 12 months and within - 25 24 months 24 months and within 3 - 20 years 3 years and within 4 - 15 years 4 years and within 5 - 10 years 5 years and above - 10
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Appendix 2 Annual Investment Strategy 2020/21
1. Changes to Credit Rating Methodology – Link Asset Services
1.1 The main rating agencies (Fitch, Moody’s and Standard & Poor’s) have, through much of the financial crisis, provided some institutions with a ratings “uplift” due to implied levels of sovereign support. Commencing in 2015, in response to the evolving regulatory regime, all three agencies have begun removing these “uplifts” with the timing of the process determined by regulatory progress at the national level. The process has been part of a wider reassessment of methodologies by each of the rating agencies. In addition to the removal of implied support, new methodologies are now taking into account additional factors, such as regulatory capital levels. In some cases, these factors have “netted” each other off, to leave underlying ratings either unchanged or little changed. A consequence of these new methodologies is that they have also lowered the importance of the (Fitch) Support and Viability ratings and have seen the (Moody’s) Financial Strength rating withdrawn by the agency.
1.2 In keeping with the agencies’ new methodologies, the rating element of our own credit assessment process now focuses solely on the Short and Long Term ratings of an institution. While this is the same process that has always been used for Standard & Poor’s, this has been a change in the use of Fitch and Moody’s ratings. It is important to stress that the other key elements to our process, namely the assessment of Rating Watch and Outlook information as well as the Credit Default Swap (CDS) overlay have not been changed.
1.3 The evolving regulatory environment, in tandem with the rating agencies’ new methodologies also means that sovereign ratings are now of lesser importance in the assessment process. Where through the crisis, clients typically assigned the highest sovereign rating to their criteria, the new regulatory environment is attempting to break the link between sovereign support and domestic financial institutions. This is in relation to the fact that the underlying domestic and where appropriate, international, economic and wider political and social background will still have an influence on the ratings of a financial institution.
1.4 It is important to stress that these rating agency changes do not reflect any changes in the underlying status or credit quality of the institution. They are merely reflective of a reassessment of rating agency methodologies in light of enacted and future expected changes to the regulatory environment in which financial institutions operate. While some banks have received lower credit ratings as a result of these changes, this does not mean that they are suddenly less credit worthy than they were formerly. Rather, in the majority of cases, this mainly reflects the fact that implied sovereign government support has effectively been withdrawn from banks. They are now expected to have sufficiently strong balance sheets to be able to withstand foreseeable adverse financial circumstances without government support. In fact, in many cases, the balance sheets of banks are now much more robust than they were before the 2008 financial crisis when they had higher ratings than now. However, this is not universally applicable, leaving some entities with modestly lower ratings than they had through much of the “support” phase of the financial crisis.
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2. Investment Policy
2.1 The Council’s investment policy has regard to the CLG’s Guidance on Local Government Investments (the Guidance) and the revised CIPFA Treasury Management in Public Services Code of Practice and Cross Sectoral Guidance Notes (the CIPFA TM Code). The Council’s investment priorities will be security first, liquidity second, then return (yield).
2.2 In accordance with guidance from CLG and CIPFA, and in order to minimise the risk to investments, the Council has below clearly stipulated the minimum acceptable credit quality of counterparties for inclusion on the lending list. The creditworthiness methodology used to create the counterparty list fully accounts for the ratings, watches and outlooks published by all three ratings agencies with a full understanding of what these reflect in the eyes of each agency. Using the Capita ratings service potential counterparty ratings are monitored on a real time basis with knowledge of any changes notified electronically as the agencies notify modifications.
2.3 Continuing regulatory changes in the banking sector are designed to see greater stability, lower risk and the removal of expectations of Government financial support should an institution fail. This withdrawal of implied sovereign support is anticipated to have an effect on ratings applied to institutions. This will result in the key ratings used to monitor counterparties being the Short Term and Long Term ratings only. Viability, Financial Strength and Support Ratings previously applied will effectively become redundant. This change does not reflect deterioration in the credit environment but rather a change of method in response to regulatory changes.
2.4 Furthermore, the Council’s officers recognise that ratings should not be the sole determinant of the quality of an institution and that it is important to continually assess and monitor the financial sector on both a micro and macro basis and in relation to the economic and political environments in which institutions operate. The assessment will also take account of information that reflects the opinion of the markets. To this end the Council will engage with its advisors to maintain a monitor on market pricing such as “credit default swaps” and overlay that information on top of the credit ratings. This is fully integrated into the credit methodology provided by the advisors, Link Asset Services in producing its colour codings which show the varying degrees of suggested creditworthiness.
2.5 Other information sources used will include the financial press, share price and other such information pertaining to the banking sector in order to establish the most robust scrutiny process on the suitability of potential investment counterparties.
2.6 The aim of the strategy is to generate a list of highly creditworthy counterparties which will also enable diversification and thus avoidance of concentration risk.
2.7 The intention of the strategy is to provide security of investment and minimisation of risk.
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2.8 The key requirements of both the Code and the investment guidance are to set an annual investment strategy, as part of its annual treasury strategy for the following year, covering the identification and approval of the following:
• The strategy guidelines for choosing and placing investments;
• The principles to be used to determine the maximum periods for which funds can be committed;
• Specified investments that the Council will use. These are high security (i.e. high credit rating, although this is defined by the Council, and no guidelines are given), and high liquidity investments in sterling and with a maturity of no more than a year.
2.9 The investment instruments identified for use in the financial year 2020/21 are set out at Appendix 2 under the ‘Specified’ and ‘Non-Specified’ Investments categories. Organisations to which the Council will lend and associated counterparty limits are detailed at Appendix 3.
Creditworthiness Policy
2.10 The Council applies the creditworthiness service provided by Link Asset Services. This service employs a sophisticated modelling approach utilising credit ratings from the three main credit rating agencies - Fitch, Moodys and Standard and Poor’s. The credit ratings of counterparties are supplemented with the following overlays:
• Credit watches and credit outlooks from credit rating agencies; • Credit Default Swap (CDS) spreads to give early warning of likely changes in credit ratings • Sovereign ratings to select counterparties from only the most creditworthy countries.
2.11 Credit Default Swap (CDS) is a contract between two counterparties, which basically gives protection, or insurance, in case of credit default. The payments involved in the contract are based on a spread currently traded in the market. The spread of CDS indicates the market perception of the likelihood of a credit event or default occurring. The higher the spread the more likely the market considers an event of default will occur.
2.12 This modelling approach combines credit ratings, credit watches and credit outlooks in a weighted scoring system which is then combined with an overlay of CDS spreads for which the end product is a series of colour coded bands which indicate the relative creditworthiness of counterparties. These colour codes are used by the Council to determine the duration for investments. The Council will therefore use counterparties within the following durational bands:
• Blue - 1 year (only applies to nationalised or semi-nationalised UK banks) • Orange - 1 year • Red - 6 months • Green - 100 days • No colour not to be used
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2.13 Link Asset Services creditworthiness service uses a wider array of information than just primary ratings and by using a risk weighted scoring system, does not give undue preponderance to just one agency’s ratings. The Council is satisfied that this service now gives a much improved level of security for its investments. It is also a service which the Council would not be able to replicate using in house resources.
2.14 Typically the minimum credit ratings criteria the Council use will be a short term rating (Fitch or equivalents) of short term rating F1, long term rating A-. There may be occasions when the counterparty ratings from one rating agency are marginally lower than these ratings but may still be used. In these instances consideration will be given to the whole range of ratings available, or other topical market information, to support their use.
2.15 All credit ratings will be monitored on a weekly basis. The Council is alerted to changes to ratings of all three agencies through its use of the Capita creditworthiness service.
• If a downgrade results in the counterparty / investment scheme no longer meeting the Council’s minimum criteria, its further use as a new investment will be withdrawn immediately. • In addition to the use of credit ratings the Council will be advised of information in movements in Credit Default Swap against the iTraxx benchmark and other market data on a daily basis via its Passport website, provided exclusively to it by Link Asset Services. Extreme market movements may result in downgrade of an institution or removal from the Council’s lending list.
2.16 Sole reliance will not be placed on the use of this external service. In addition this Council will also use market data and market information, information on government support for banks and the credit ratings of that supporting government.
2.17 If financial institutions are upgraded in rating and therefore meet the Council’s criteria as defined, then committee approval will be sought prior to inclusion on the counterparty list.
Country Limits
2.18 The Council has determined that it will only use approved counterparties from the UK only.
Investment Counterparty Selection Criteria
2.19 The primary principle governing the Council’s investment criteria is the security of its investments, although the yield or return on the investment is also a key consideration. After this main principle the Council will ensure that:
• It maintains a policy covering both the categories of investment types it will invest in, criteria for choosing investment counterparties with adequate security, and monitoring their security. This is set out in the Specified and Non-Specified investment sections below; and
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• It has sufficient liquidity in its investments. For this purpose it will set out procedures for determining the maximum periods for which funds may prudently be committed. These procedures also apply to the Council’s prudential indicators covering the maximum principal sums invested.
2.20 The Director of Finance and Transformation will maintain a counterparty list in compliance with the following criteria and will revise the criteria and submit them to Council for approval as necessary. These criteria are separate to that which determines which types of investment instrument are either Specified or Non-Specified as it provides an overall pool of counterparties considered high quality which the Council may use, rather than defining what types of investment instruments are to be used.
2.21 The minimum rating criteria use the lowest common denominator method of selecting counterparties and applying limits. This means that the application of the Council’s minimum criteria will apply to the lowest available rating for any institution. For instance, if an institution is rated by two agencies, one meets the Council’s criteria, the other does not, then the institution will fall outside the lending criteria. This is in compliance with a CIPFA Treasury Management Panel recommendation in March 2009 and the CIPFA Treasury Management Code of Practice.
2.22 Credit rating information is supplied by Link Asset Services, the Council’s treasury consultants, on all active counterparties that comply with the criteria below. Any counterparty failing to meet the criteria would be omitted from the counterparty (dealing) list. Any rating changes, rating watches (notification of a likely change), rating outlooks (notification of a possible longer term change) are provided to officers almost immediately after they occur and this information is considered before dealing. For instance, a negative rating watch applying to a counterparty at the minimum Council criteria will be considered for suspension from use, with all others being reviewed in light of market conditions.
2.23 On occasions ratings may be downgraded when an investment has already been made. The criteria used are such that a minor downgrading should not affect the full receipt of the principal and interest.
2.24 The criteria for providing a pool of high quality investment counterparties (both specified and non-specified investments) is as follows:
• Banks 1 – a good credit quality – the Council will only use banks/building societies which are UK banks only and have, as a minimum, the following Fitch credit ratings: • Banks 1 – a good credit quality – the Council will only use banks which hold a minimum rating of: • Short term – F1 • Long term – A-
• Banks 2 – part nationalised UK bank – Royal Bank of Scotland. This bank can be included if it continues to be part nationalised or it meets the rating in Banks 1 above.
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• Banks 3 – The Council’s own banker (Natwest Bank) for transactional purposes if the bank falls below the above criteria, although in this case balances will be minimised in both monetary size and time invested.
• Bank subsidiary and treasury operation – The Council will use these where the parent bank has provided an appropriate guarantee or has the necessary ratings outlined above.
• Building societies – The Council will use all societies which meet the ratings for banks as outlined above.
• Money Market Funds – AAA rating.
• Enhanced Money Market Funds – AAA rating.
• UK Government (DMADF)
• Local authorities.
Group Considerations
2.25 Due care will be taken will be taken to consider the group exposure of the Council’s investments. In addition limits in place above will apply to a group of companies.
Use of Additional Information other than Credit Ratings
2.26 Additional requirements under the Code require the Council to supplement credit rating information. Whilst the above criteria relies primarily on the application of credit ratings to provide a pool of appropriate counterparties for officers to use, additional operational market information will be applied before making any specific investment decision from the agreed pool of counterparties. This additional market information (for example Credit Default Swaps, negative rating watches/outlooks) will be applied to compare the relative security of differing investment counterparties.
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Time and Monetary Limits Applying to Investments
2.27 The time and monetary limits for institutions on the Council’s counterparty list are as follows (these will cover specified and non-specified investments):
Fitch Long Term Fitch Short Term Money Time Rating Rating Limit Limit (minimum) (minimum)
Banks 1 category high quality AA- F1+ £15 million 1 yr Banks 1 category medium quality A F1 £7.5 million 1 yr Banks 1 category lower quality A- F1 £5 million 1 yr Banks 2 category – part AA- F1+ £20 million 1 yr nationalised – high quality Banks 2 category – part A F1 £10 million 1 yr nationalised – medium quality Banks 2 category – part A- F1 £7.5 million 1 yr nationalised – low quality Limit 3 category – Council’s N/A N/A £2.5 million 1 day banker (not meeting Banks 1) UK Government (DMADF) N/A N/A Unlimited 6 mths Local authorities N/A N/A £15 million 1 yr Money Market Funds AAA £15 million liquid
2.28 The proposed criteria for Specified and Non-Specified investments are shown in Appendix 3 for approval.
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Appendix 3
Credit and Counterparty Risk Management – Specified and Non-Specified Investments and Limits (Treasury Management Practice (TMP1))
1. Specified and Non-Specified Investments
1.1 Specified investments are investments denominated in sterling, do not exceed 364 days in term, do not involve the acquisition of share or loan capital, are made with the UK Government or a local authority, or with a body or investment scheme meeting the minimum ‘high’ credit quality criteria where applicable. Non-specified investments are anything that does not satisfy the specified investment criteria, i.e. investments with a maturity of greater than 1 year.
1.2 Importantly the acquisition of share capital or loan capital in any body corporate is defined as capital expenditure under Section 16(2) of the Local Government Act 2003. Such investments will have to be funded out of capital or revenue resources and will be classified as ‘non-specified investments’. As a result no such investment instruments, such as equities, are included within this Appendix.
Specified Investments
Minimum ‘High ’ Credit Use Criteria Term deposits – banks Short-term F1, Long-term A- In-house Term deposits – building societies Short-term F1, Long-term A- In-house Term deposits – local authorities -- In-house Term deposits – UK part Short-term F1, Long-term A- In-house nationalised banks UK Government support to the UK Sovereign Rating In-house banking sector Debt Management Agency Deposit UK Sovereign Rating In-house Facility (DMADF)– UK Government Money Market Funds AAA In-house
1.3 Accounting treatment of investments – the accounting treatment may differ from the underlying cash transactions arising from investment decisions made by the Council. To ensure that the Council is protected from any adverse revenue impact, which may arise from these differences, Treasury Officers in consultation with Sector will review the accounting implications of any new transactions before they are undertaken.
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Non-specified Investments
Maturities of ANY period (not applicable for 2020/21 Investment Strategy)
Minimum Credit Use Max % of Max. Criteria total maturity investments period Term deposits with unrated Market In-house Nil - no longer Nil – no counterparties Capitalisation applicable longer above £500m applicable
Maturities in excess of 1 year (not applicable for 2020/21 Investment Strategy)
Minimum Credit Use Max % of Max. Criteria total maturity investments period Term deposits – banks Short-term F1, In-house Nil - no longer Nil - no Long-term A+ applicable longer applicable Term deposits – local -- In-house Nil - no longer Nil - no authorities applicable longer applicable
Appendix 4
Approved Organisations for on-lending Of Surplus Funds
Note – the organisations listed below currently meet the specified criteria as per the Investment Policy of the above report.
UK Banks (Maximum Investment Period of up to 1 year)
Approved Proposed Current Investment Investment Investment Investment (as at Limit (max) Limit (max) Limit ** 30/9/20) Santander UK plc £15m £15m Nil - Barclays Bank plc £15m £15m £7.5m - Clydesdale Bank (trading as Yorkshire £15m £15m Nil - Bank) HSBC Bank plc £15m £15m £15m - Lloyds Banking Group inc: * £20m £20m £10m Lloyds TSB Bank plc - Bank of Scotland plc - Royal Bank of Scotland Group inc: * £20m £20m £2.5m Royal Bank of Scotland - NatWest Bank plc £1.3m Ulster Bank Ltd (not used) -
Note * - The increased limits are based on Lloyds and RBS being part-nationalised therefore carrying additional UK Government security.
Note **: The current investment limits above reflect the action taken as per the creditworthiness criteria included in the Investment Policy stated at paragraph 2.27of Appendix 2 in the above report. Current investment limits have been reduced due the wholescale downgrade of ratings of some of the above organisations.
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UK Building Societies (Maximum Investment Period of up to 1 year)
Approved Proposed Current Investment Investment Investment Investment (as at Limit (max) Limit (max) Limit ** 30/9/20) Coventry Building Society £15m £15m £7.5m - Nationwide Building Society £15m £15m £7.5m - Leeds Building Society £15m £15m £5m - Skipton Building Society £15m £15m £5m - Yorkshire Building Society £15m £15m £5m -
Other (Maximum Investment Period of up to 1 year)
Approved Proposed Current Investment Investment Investment Investment (as at Limit Limit Limit 30/9/20) Any Local Authority £15m (each) £15m (each) £15m (each) - Debt Management Agency Deposit Unlimited Unlimited Unlimited - Facility (DMADF) *** Money Market Funds £15m (each) £15m (each) £15m (each) £43.4m
Note *** - The unlimited investment limit for the DMADF is based on the current uncertainties within the banking sector, and if further bank failures occur, this account would provide for the security of the Council’s cash surpluses.
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Appendix 5 GLOSSARY OF TERMS
Base Rate Minimum lending rate of a bank or financial institution in the UK determined by the Bank of England.
Basis Point 1/100 th of 1%, i.e. 0.01%.
Call Account Deposits/investments placed with a bank or other financial institutions which are available immediately, i.e. no advance notice is required.
Capital Expenditure Expenditure on the acquisition of fixed assets which has a long term value to the Council (e.g. the purchase of land, erection of buildings), or expenditure that adds to the value of these assets and not just maintains their existing value.
Capital Financing The total historic outstanding capital expenditure which has not Requirement (CFR) yet been paid for from either revenue or capital resources. This is the cumulative total of the Council’s borrowing need.
Capital Grants Monies provided to local authorities, usually from Government departments, for capital expenditure only.
Capital Receipts These are proceeds from the sale of capital assets such as land or property. These receipts can be used to fund the capital programme but are not available to support the Revenue Budget.
Counterparty Another (or the other) party to an agreement or other market contract (e.g. lender or borrower). In the Council’s case this generally relates to a bank or building society.
Credit Default Swap This provides protection (insurance) to a financial institution following a loan or investment against any potential default, i.e. protection against non-repayment of loan or investment.
Credit Outlook A formal indication by a credit rating agency that it anticipates a change in a particular credit rating of a bank or other financial institution at some time in the foreseeable future.
Credit Rating An assessment of the creditworthiness of a bank or other financial institution, made by a credit rating agency, i.e. Fitch, Moody’s and Standard & Poor’s.
Credit Rating Agency Independent organisations that assess the credit quality of corporate and government debt. The main agencies are Moody’s, Standard & Poor’s and Fitch.
Credit Watch Attached to a bank or other financial institution in which a downgrading or upgrading of the credit rating could be imminent.
Creditworthiness A measure of the ability and the willingness of a bank or other financial institution to honour their financial obligations.
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Debt Cap A limit set on the council housing borrowing requirement for each local authority.
Debt Rescheduling Refinancing of current debt/loans to generate revenue savings if rates are favourable.
Investment Instrument Investment options available to local authorities, i.e. fixed term deposits, notice accounts.
Liquidity The ability to convert an asset (investment) easily into cash quickly without affecting the asset’s price or value.
Maturity The end date of a loan, borrowing, investment or other form of capital financing.
Minimum Revenue Local authorities are required each year to set aside some of Provision (MRP) their revenues as provision for debt repayment. The provision (revenue charge) is in respect of capital expenditure financed by borrowing.
Money Market Consists of financial institutions (e.g. banks and building societies) and dealers in money and credit.
Money Market Fund A well rated, highly diversified pooled investment vehicle whose assets mainly comprise of short term instruments.
Non -Specified Anything that does not satisfy the specific investment criteria, Investments i.e. investments with a term of greater than 1 year.
Notice Account Deposits/investments placed with a bank or other financial institutions which are available at notice, i.e. 15/30 day notice to withdraw is required.
PFI Private Finance Initiative – a Government initiative in which private sector companies usually design, build and operate a public facility for a set period of time, often 25 years.
Prudential and As required by The Prudential Code, requires local authorities Treasury Indicators to self regulate the affordability, prudence and sustainability of (see below for description their capital plans, buy setting estimates and limits, and of each indicator) publishing actuals, for a range of indicators.
Prudential Borrowing Permissible borrowing within defined affordable limits.
Prudential Code Local Authorities determine their own programmes of capital (CIPFA) investment in fixed assets that are central to the delivery of quality local public services. The Prudential Code has been developed as a professional code of practice to support them in taking these decisions. The Prudential Code underpins the overall system of capital finance. The objectives of the Prudential Code are to ensure, within a clear framework, that the capital investment plans of local authorities are affordable, prudent and sustainable.
PWLB Public Works Loans Board – a statutory body operating within the Debt Management Office of the HM Treasury and is responsible for lending money to local authorities and other 35 of 37 Page 235 of 238
prescribed bodies. Risk Appetite The level of risk Local Authorities wish to take in the lending of surplus monies. The Council operates a low risk appetite, i.e. only investing with low risk counterparties, where the security and liquidity of cash are more important than yield (return). Specified Investments Investments that are made in sterling, do not exceed 364 days in term, do not involve the acquisition of share or loan capital, are made with the UK Government or a local authority, or with a financial institution and meet the minimum credit criteria.
Treasury Management Provides Local Authorities with standards and guidance to Code of Practice support and underpin their overall Treasury Management (CIPFA) activities.
Yield (Return) The return on an investor’s capital investment. The higher the yield the higher the risk of the capital invested.
Prudential and Treasury Indicators
Affordability of Capital Plans:
Indicator 1 – Capital This details the Council’s approved capital spending plans for Expenditure the next 3 years and reports on the outturn from the previous financial year. These estimates are reporting decisions agreed previously in the Capital Programme report, and therefore there is no subjectivity to this indicator.
Indicator 2 - Ratio of This shows the revenue costs (the capital financing costs less Financing Costs to Net investment income earned) as a percentage of the total Review Stream revenue budget. There is a separate calculation for the General Fund and the HRA. Again, these estimates have been agreed by Committee through the Revenue Budget setting report or in the Medium Term Financial Strategy.
Indicator 3 – Capital The CFR measures the Council’s overall borrowing Financing Requirement requirement for capital purposes, i.e. that element of previous (CFR) and proposed capital spending which has been/will be funded from borrowing. The Prudential Code requires that net external borrowing does not exceed the CFR.
Indicator 4 – This indicator seeks to demonstrate the additional costs, to be Incremental Impact of funded from the Council Tax and Housing Rent of the Capital Investment Council’s capital spending plans, i.e. the capital plans to be Decisions on Council funded from borrowing. These estimates are in line with the Tax and Housing Rents General Fund and HRA Revenue Budget setting reports.
Treasury Management
Indicator 5 – The Council is required to set external borrowing limits Authorised Limit for consistent with the Revenue Budget and Capital Programme. External Debt The Authorised Limit is based on a prudent limit, with additional headroom to allow for unusual cash movements. 36 of 37 Page 236 of 238
Indicator 6 – The Operational Boundary is based on the same estimates as Operational Boundary the Authorised Limit, but does not include any additional for External Debt headroom. The Operational Boundary is the current debt plus additional planned borrowing, plus 10% of next years revenue budget for cash flow purposes.
Indicator 7 – Fixed and This indicator seeks to ensure that the Council limits its Variable Interest Rate exposure to the risk of interest rate changes and the Exposure subsequent impact of such changes on the interest payments on loans (a revenue expense), by restricting the proportion of variable rate borrowing.
Indicator 8 – Upper and This indicator also seeks to ensure the Council controls its Lower Limits for the exposure to the risk of interest rate changes by limiting the maturity structure of proportion of debt due to be repaid in any one year. Debt is borrowings ordinarily replaced on maturity and therefore it is important that the Council is not forced to replace a large proportion of loans at a time of relatively high interest rates (aimed at mitigating any potential impact on the revenue budget).
Indicator 9 – Upper Under the Prudential Code councils are free to invest for Limit for the maturity periods of greater than 1 year. This indicator sets restrictions structure of on the proportion of investments committed for longer periods Investments in order to limit the risks associated with being unable to meet unexpected cash flows and/or being able to take advantage of future increases in interest rates.
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